After months of de-escalating trade tensions, President Trump decided to start a global wrestle over trade. The problem with wrestling is that everybody ends up being bruised. Although India might be trying to avoid the punch-up, it is probably not immune to these kinds of economic shocks.
The Prime Minister of the United Kingdom, Theresa May, averts another crisis and pushes the Brexit can down the road making it likely that the Brexit negotiations run into further delays and the withdrawal agreement is ready only towards the end of 2018.
In many Eurozone countries, private sector debt has decreased in recent years and so has the vulnerability of the private sector to higher interest rates. Yet in many countries debt remains high and in several countries vulnerabilities are still present.
Economic Comment Dutch version
Despite deleveraging in recent years, private sector debt remains high in many Eurozone countries. The private sector in Cyprus, Greece, Ireland, Portugal, Spain, Finland and Luxembourg is most vulnerable to higher interest rates.
Economic Quarterly Report Dutch version
The economic outlook for the global economy remains positive, but risks of a correction have increased sharply as a result of increasing trade tensions. Geopolitical risks and vulnerabilities in various emerging economies are also worrying.
The German CSU was to propose a plan to turn away migrants at the border who had registered elsewhere in the EU, prompting a veto from Merkel and leading to a showdown. The current deal provides Merkel with a two-week deadline to try to find (bilateral) deals in Europe.
The US had announced USD 50bn of tariffs on Chinese exports and China has responded with a matching USD 50bn of tariffs on US exports. But the US has now raised the ante with a further unspecified USD 200bn of tariffs on Chinese goods - and the threat of a further USD 200bn if China responds again in kind. What is the possible impact and what might happen next?