The FT reports that Angela Merkel is set for fourth term with a grand coalition. This is good news for Germany and probably Europe. It’s less clear of its impact on the UK and the US. For the UK, it will probably showcase Theresa May‘s naivety that the UK has power to dictate Brexit terms. But Merkel will quickly need to turn her attention to Trump’s threatened trade war.
Thoughts?
Here’s a breaking news story published by Slate. Trump is threatening trade wars with Europe, targeting car companies. Junckner says that Levy jeans and bourbon whiskey would be targets for retaliation. Meanwhile, Britain’s lame duck prime minister, Theresa May, will defend her government’s Brexit plans on the BBC’s Andrew Marr show.
It’s time for Trump to face reality. US productivity does not compete with international markets effectively because of deep-rooted problems, including management, quality and trade unions. And Trump needs to fix obesity and the opioid epidemic too. Americans aspire to German cars because of superior quality. Perhaps Obama should have let US carmakers go to wall? Let’s not forget that US corporations are not paying their fair share of taxes in Europe.
But Angela Merkel, with her fragile political base, will no doubt be quick to protect the interests of German carmakers.
Against this potential global trade war, Brits are expected to believe Theresa May and her supporting ‘Ultras’ that all will come right after Brexit.
Thoughts?
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