World Events Summary: 29th August – 4th September 2017

China, US: Trump tried to threaten all trade with any nation that trades with North Korea – i.e. China – but it seemed implausible. Speculation in the South China Morning Post suggested that China could cut oil supplies to North Korea just enough to cause harm but not enough to collapse the regime. Xi Jinping called for greater BRICS involvement in world affairs but not more from China acting alone. 

Floods in USA: unprecedented floods in North America brought massive economic damage to Texas (estimated at over US$100bn) but fortunately little loss of life (at least 60). This has changed the calculus and debate about budget funding and raising the debt ceiling – likely to be tied together in a bill with relief monies. Trump is expected to end Dreamers legal status – raising anxiety in Texas.

Brexit and PR: the expected impasse between the negotiators arrived after the UK lawyers, reportedly, pulled-apart the EU’s legal case for an exit bill. This would leave a political case for payments but only as part of a wider trade negotiation. The EU team refuses to start talking about trade until concessions are reached. The whole sorry episode is being played out in the global media.