• U.S. Midterms: for the first time in history a party took control of the House of Representatives while the other major party increased its hold over the Senate. The resulting divided government seemed to be a true reflection of the American electorate’s desires. On trade issues the Democratic majority in the House is likely to push Trump for even harsher terms in any deals made – USMCA, with China or the Europeans. • Trump calls for Collaboration: the president set out ways of coexisting with a divided congress, suggesting that he would be interested in accomplishing shared goals. This could, potentially, lead to some kind of compromise on infrastructure legislation but that is improbable as Democrats are likely to breach Trump’s ‘red lines’ surrounding his family (part of Mueller’s probe), tax returns, business dealings and wealth. • Attorney General: Sessions resigned, at the request of president Trump. While this was widely expected it has reset the hierarchy in the Justice Department, placing a Trump-loyalist in charge of Mueller’s probe. • China and Trade: official rhetoric surrounding the opening-up of the Chinese market/economic reforms was seen as too little and lacking in detail by the EU Chamber of Commerce. Speculation suggests that any new or important concessions would likely be held back until a U.S.–China meeting at the G20 summit. The U.S. Justice department indicted Fujian Jinhua for alleged industrial espionage in the microchip sector.
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