3 October 2018
Bassanese Bites: Wage Watch – Week beginning: 02 October 2018
It was a moderate risk-off week for equities thanks to both disappointment that China essentially called off new trade talks with the US and because of the ongoing hawkishness of the US Federal Reserve.
As regards trade talks, however, the past week has concluded on a positive note with Canada agreeing to an 11th hour deal with the US, thereby concluding a revamped NAFTA deal. The deal highlights that, at the end of the day, US President Trump is seeking to conclude deals (rather than just tear up old ones) and can agree to what appear relatively incremental changes to existing arrangements if it at least allows him to claim a win. That bodes well for an eventual deal with China, who I suspect now feel emboldened to hold out and eventually offer some relatively modest proposals (i.e. less than it had feared) even if this begrudgingly also allows Trump to claim a victory of sorts.
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