Weekend Review: Pressure Mounts on US to Respond to Saudi Killing
October 22, 2018 2:41 pm
On Friday, Canada’s statistics office showed that the country’s inflation numbers were lower in September compared to the estimates. In the month, the CPI numbers were at 2.2%, which was lower than the expected 2.8%. The retail sales as well fell. This happened ahead of the important interest rates decision by the Bank of Canada. This week, the bank is expected to announce the second interest rates decision this year. Therefore, traders will want to know the bank’s opinion about the weak economic data.
The Trump administration was under pressure this weekend from the both sides of the isle. The leaders pressured the administration to impose sanctions on Saudi for the murder of a journalist who was critical of the country’s administration. The Trump administration insisted that it will punish Saudi Arabia but stayed away from the details. This will be one of Trump’s most important decisions to make because of the central role played by Saudi Arabia. A fallout between Saudi and the US will be a gift to Iran, which is an enemy of both countries. A fall out may also have major impacts on the price of crude oil.
On geopolitics, the US announced on Friday that it had exited an important nuclear treaty with Russia. The Intermediate-range Nuclear Forces Treaty was signed in 1987 and prohibited the intermediate- and shorter-range rockets, as well as testing, producing or fielding new ground-based missiles. The decision was mostly because of the Trump’s administration to force Russia to abide by the treaty. It was also a problem during the Obama administration. Today, Trump’s national security advisor, John Bolton will meet Russian president Vladmir Putin.
On Friday, ratings agency Moody’s announced that it had placed Italy’s debt closer to junk. This was after a new downgrade that was highly anticipated. The new Italian government has continued to face the challenge in its budget process. The budget has moved above the recommended level by the EU. This is more dire because Italy is the most indebted country in the European Union. It is also dire because of the impacts that could happen if Italy was to default. Italy is the fourth biggest EU economy after Germany, France, and the UK. A fight between Italy and the EU could lead to more calls for Italy to leave the EU.
Chinese stocks opened the markets today by having the biggest gain since 2015. This was after the country released its GDP numbers on Friday that disappointed. The current hope is that the country’s government will provide support to the financial sector. However, the stocks remain lower for the year as the country faces a major threat from the United States. This weekend, Larry Kudlow said that China was doing nothing to defuse the tensions.
In the United States, campaigns for the mid-terms continued with democrats and republicans making the closing arguments. Polls show that the race on who will control congress and senate is still open to either of the parties. A new poll by NBC showed that democrats have a slight lead while Trump’s approval rating is at an all-time high.
On Friday, Canada’s statistics office showed that the country’s inflation numbers were lower in September compared to the estimates. In the month, the CPI numbers were at 2.2%, which was lower than the expected 2.8%. The retail sales as well fell. This happened ahead of the important interest rates decision by the Bank of Canada. This week, the bank is expected to announce the second interest rates decision this year. Therefore, traders will want to know the bank’s opinion about the weak economic data.
The Trump administration was under pressure this weekend from the both sides of the isle. The leaders pressured the administration to impose sanctions on Saudi for the murder of a journalist who was critical of the country’s administration. The Trump administration insisted that it will punish Saudi Arabia but stayed away from the details. This will be one of Trump’s most important decisions to make because of the central role played by Saudi Arabia. A fallout between Saudi and the US will be a gift to Iran, which is an enemy of both countries. A fall out may also have major impacts on the price of crude oil.
On geopolitics, the US announced on Friday that it had exited an important nuclear treaty with Russia. The Intermediate-range Nuclear Forces Treaty was signed in 1987 and prohibited the intermediate- and shorter-range rockets, as well as testing, producing or fielding new ground-based missiles. The decision was mostly because of the Trump’s administration to force Russia to abide by the treaty. It was also a problem during the Obama administration. Today, Trump’s national security advisor, John Bolton will meet Russian president Vladmir Putin.
On Friday, ratings agency Moody’s announced that it had placed Italy’s debt closer to junk. This was after a new downgrade that was highly anticipated. The new Italian government has continued to face the challenge in its budget process. The budget has moved above the recommended level by the EU. This is more dire because Italy is the most indebted country in the European Union. It is also dire because of the impacts that could happen if Italy was to default. Italy is the fourth biggest EU economy after Germany, France, and the UK. A fight between Italy and the EU could lead to more calls for Italy to leave the EU.
Chinese stocks opened the markets today by having the biggest gain since 2015. This was after the country released its GDP numbers on Friday that disappointed. The current hope is that the country’s government will provide support to the financial sector. However, the stocks remain lower for the year as the country faces a major threat from the United States. This weekend, Larry Kudlow said that China was doing nothing to defuse the tensions.
In the United States, campaigns for the mid-terms continued with democrats and republicans making the closing arguments. Polls show that the race on who will control congress and senate is still open to either of the parties. A new poll by NBC showed that democrats have a slight lead while Trump’s approval rating is at an all-time high.
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