In This Week’s Issue…

by Alexander Kalis | Managing Partner & Head of Investments at Milltrust International 

US-NK Summit Cancelled, Auto Tariffs, Modi’s Legacy, Trouble in Turkey, and Russia’s Economic Recovery.

Lost Opportunity

President Donald Trump has cancelled his highly anticipated meeting with Kim Jong-un, accusing the North Korean leader of  “tremendous anger and open hostility”.

Auto Threat

President Donald Trump is pushing for new tariffs on cars and trucks imported to the U.S., a move which will serve to aggravate the country’s closest international allies. An additional duty of up to 25 percent is under consideration. The statement has drawn sharp criticism from Japan and South Korea, with China’s Ministry of Commerce saying the move risked disrupting the “normal trade order.” Some observers say Trump’s call is merely a tactic to goad Canada and Mexico into accepting an overhaul of the North American Free Trade Agreement.

How has the Indian economy fared under Modi govt.

On its fourth anniversary, the Narendra Modi government’s economic legacy appears to be under threat because of unfavourable global conditions and a sluggish rural economy

Lira Freefall

Turkey’s lira weakened more than 2 percent on Thursday, giving up some of the hefty gains it made after the central bank raised interest rates by 300 basis points on Wednesday in an emergency move to prop up the tumbling currency which had depreciated as much as 23 percent so far this year before the bank’s move.

Investors have hammered the currency on concerns about the central bank’s ability to tame double-digit inflation, particularly after President Tayyip Erdogan said he expected to assert more policy control after the June 24 elections, before eventually conceding a hated rate hike in order to try to save the lira.

Russian economic recovery under way in April despite sanctions

Retail sales in Russia picked up in April, while real wages growth exceeded expectations as the unemployment rate fell, suggesting an economic recovery was under way.

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