Here is what you need to know on Monday, September 2:
– New US tariffs on China have kicked in over the weekend as planned. The world’s second-largest economy has hit back as expected. President Donald Trump reiterated that high-level talks are still set to go ahead later this month in Washington. Markets have kicked off the week with calm as the measures were well-telegraphed in advance.
– Chinese manufacturing PMIs have been mixed, with the government gauge coming out below 50 and the independent Caixin one topping the level – indicating growth.
– Brexit: A critical week begins in British politics as parliament reconvenes for a short time. Opposition parties will try to pass rapid legislation to force the government not to leave the EU without a deal. Michael Gove, a senior minister responsible for Brexit preparations, refused to commit that the government will respect the legislation. UK prime minister Boris Johnson has threatened to kick out members of his ruling Conservative Party if they fail to vote with the government. Some political analysts suspect Johnson is preparing for elections.
– Germany: Far-right AfD gained ground in original elections but mainstream coalition parties came out on top in both Brandenburg and Saxony. The results serve as a relief for Chancellor Angela Merkel.
– Argentina announced capital controls over the weekend as the crisis intensifies.
– Cryptocurrencies have recovered over the weekend, with Bitcoin nearing $10,000.
– The US and Canada are on holiday today.
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