#100 Cynicism & Military Spending

Previous Week:

  • Iran: On the one hand, both leaders of Iran & USA increased their domestic political power. Trump’s approval ratings is reaching its highest recorded level. Iranians are backing the Rouhani’s government despite questioning it a few weeks ago. On the other hand, both parties do not want an escalation.

    With the mouth of Prime Minister Justin Trudeau (Canada), Iran was accused and excused for firing 2 surface-to-air missiles towards a passenger Boeing, near the airport of Tehran. The foreign Minister of Iran, Javad Zarif, apologized.

    The first European Leader to visit the White House, Greek Prime Minister, approved US actions. Note that the EU continues trying to save the Iranian nuclear deal, and is the only force that could ask for the extension of the October’s weapon embargo on Iran.

  • Taiwan: The former President managed to get 57% of the votes and recorded the biggest victory in the history of Taiwan. Her agenda is against closer ties with China. Last year, her party lost the local elections. Yet, her consistent support to the Hong Kong’s protesters and China’s repeated military threats, turned things around.
  • France: As the strikes continue , the government would withdraw a part (the pivotal age) of the proposed pension reform. Unions are planing new demonstrations during the week.
  • Australia: The uncontrolled fires continue but macro releases have been positive (retail sales, building approvals, trade balance)
  • Consumer Electronic Show in Las Vegas, with the fold-able computer, did not offer something gaming changing. Data handing and the law that is set to be enforced in July would be the bigger obstacle to be faced by tech giants in 2020.
  • The World Bank, revised its global GDP growth projection to 2.50% (-0.20% from June).US employment change is slowing down,
  • Cryptos: Total market cap at $217bn ( +11% w/w, -40% from the 2019 $366bn high, -73% from the all time high $825bn).

Ongoing Theme:

  • Impeachment developments in USA. Manufacturing activity has not bottomed up, Middle East

Next week:

  • Canadian Business Outlook survey on Monday

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