Some rays of hope

Editorial The trade war and Brexit are still the two key near-term themes. In principle, the US will slap Chinese products with new tariffs on October 15. However, the tone of the talks that resumed on Thursday between US and Chinese officials seemed to be more upbeat. The next European summit will be held on October 17 and 18. Many observers had been expecting the extension of the application of Article 50 to be the main topic of discussion. However, Thursday’s Varadkar/Johnson meeting has revived some optimism and the "withdrawal agreement" could well monopolize the discussions. By all accounts, the markets want to believe this will happen, as sterling and UK long-term yields have both registered strong rises.