Ruthless policy is rattling markets. Trump has ramped up pressure on China and the EU. Brexit continues to cause great uncertainty. Climate change — and the horrors it will bring — is on everyone’s minds. These uncertainties are all poison for the economy and risk sentiment alike.
The fiscal side remains hesitant. The duty of accommodation falls on central banks again, but policy effectiveness is in doubt. While political risks are back with a vengeance, these uncertainties remain the key drag on global economic activity.
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