Trade tariffs are a major concern for investors. The impact so far has been muted, but the risk of escalation looms. 25% tariffs on all Chinese goods are a credible threat from US President Trump but global auto-tariffs would be a much bigger risk to the US economy, encouraging others to launch a combined response. Find out more in my vlog below.
Five months is a long time in Italian politics. Back in June, we observed that Italy was too big to fail, but also too big to bail. We were also waiting for the almost inevitable clash with the European Commission over the budget. That has now arrived and we have started trading Italian risk in the new higher range for spreads.
* (Bubbling Tensions in Politics)