After hitting two-year lows against the euro last week, sterling is up again this morning. Last week’s publication of figures showing an unexpected decline in UK GDP caught the markets by surprise, fuelling fears of a recession.
In Italy, fears of continuing disputes between Rome and Brussels continue as Matteo Salvini has filed for a no-confidence vote in the Prime Minister. If Salvini is able to trigger a general election and become Prime Minister himself, then we could see a more aggressively expansionist budget, which the EU is firmly against.
US-China trade talks seem to have to met an impasse, with the trade war looking to continue for the near future. Trump has said that he is not ready for a deal with China yet, and is uncertain whether September’s talks will even happen.
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