- Korean tensions ease; equities rally, while gold moves away from the $1300 mark
- Dudley signals likely start soon to balance sheet operations and if economy stays on track, can support another hike this year
- UK inflation slightly softer than expected
There is much doom and gloom. Despite the recovery from the Great Financial Crisis, there is a high element of economic anxiety. It is not just about economics. Political developments are worrisome. We are told by various pundits in the media that democracy is dying.
An escalation of threatening rhetoric by the United States and North Korea emerged as the key driver last week. The US was unable to build on the success it enjoyed at the UN on August 5 when the Security Council unanimously voted to impose the stiffest sanctions to date on North Korea. Even if President Trump’s “fire and fury” threat was more visceral than strategic initially, there have been several opportunities to backtrack, and instead, the administration seemed to double down. Continue reading
South African President Zuma survived the no confidence vote. What now? We remain negative. Continue reading