A SUMMER MARKED BY POLITICAL RISK

Edito The week was a particularly difficult one for the British Prime Minister, Theresa May, who was criticized from all sides, and is having trouble getting her Brexit project accepted. After the resignation of Brexit Minister, David Davis, and of Foreign Affairs Minister, Boris Johnson, fears of political chaos in the United Kingdom and of an exit from the European Union with no agreement mounted, this weighing heavily on Sterling. The risks of intensified trade tensions also continue to worry investors, particularly after the fears expressed by the IMF at the start of the week and after the publication of the Beige Book. The Fed’s report emphasized in particular that uncertainty about the American President Donald Trump’s trade policy could threaten growth in the end, weighing on company confidence. The fall in the yuan is also preoccupying the markets, which fear that the change will be used as a weapon in the trade war between the United States and China. Donald Trump’s statements judging the dollar to be too strong have also fed these fears. In a word, the summer does not look like it’s going to be a particularly calm one, in any case not on the markets.