Trump Presidency reaches new level of crazy
It seems American cabinet members how have a “life expectancy” of just a little longer than kamikaze pilots and need a similar outlook on life!
It has been written so many times that Trump is trying and failing to “run” America in the same way as he runs his business empire. By whatever measure you use, there is no doubt that Trump is a successful businessman. His methods don’t appeal to everyone but he has built, lost, and built again, vast wealth. But in all that he has never had to build humility, good grace, or needed support and advice.
Well, guess what Donald, that day has arrived. His first task is to find talented people he trusts but who are also prepared to “put their heads above the parapet”. It is not too dramatic to say that America is stagnating. Business is operating despite the President when it was expecting to be being driven by him.
His ill-considered use of social media takes away “safety valves” that have been set in place for a very good reason. Sean Spicer, the now departed White House Spokesman, was the man put in the firing line to deflect attention and answer the tough questions. By using Twitter to make off the cuff announcements Trump has opened a Pandora’s Box that will prove impossible to close.
Oh Theresa, where art thou?
“Fiddling while Rome burns” is a very common expression but Theresa May has taken it to a whole new level.
It is doubtful that approving a press release from 10 Downing Street vaguely asserting her “harder than soft but softer than hard” Brexit credentials is going to garner much support as the inevitable leadership challenge emerges.
There is no point in harking back to great leaders of the past, we live in the here and now and have a right to expect our politicians to lead in a 21st century manner (without resorting to Twitter just yet).
MPC to remain on hold…. just
Bank of England Governor Mark Carney is consistent over two things; That looking at one set of data in isolation is wrong and that monetary policy is about more than just inflation.
This week’s MPC meeting is accompanied by the Quarterly Inflation Report. Given that last month inflation fell from 2.9% to 2.6% driven by a fall in the oil price and sterling strength it will be interesting how this report differs from the last one.
Sterling has continued its rise against the dollar and has stabilised versus the euro. Oil has risen to a two-month high and the immediacy with which price fluctuations are felt by the consumer could bring a reversal of May’s slowdown in inflation.
The two external hawks, Messrs Saunders and McCafferty could be joined, for the first time, by an “internal” MPC as Andrew Haldane the BoE’s Chief Economist has threatened a vote for a hike. However, as an economist he is expected to have a longer-term view of the economy and may now see headwinds as too strong for a rate rise to be sustainable.
Sterling hanging on against the euro as the dollar subsides
To judge the performance of the pound it is probably best to praise its resilience against the strongest currency rather than to laud its dominance over the weakest.
The euro has risen steadily since the start of the second half of the year. Its performance has been in response to “genuine” economic and political events that have provided traders with confidence.
Its initial burst higher in the wake of Emmanuel Macron’s electoral victory in France saw it rise across the board reaching close to its medium-term target of 0.9000 against the pound. However, as the dollar has fallen further, sterling has stabilised against the common currency and could correct further