This week we received further evidence of the US-China trade war taking a toll, with data showing Chinese exports reportedly dropping 21% year on year.
While some of this is down to a slowing global economy, the falling out with Donald Trump isn’t helping. This comes alongside data showing that Russia has massively increased its global share of soybean exports, largely at the expense of US farmers who have been targeted by retaliatory Chinese sanctions.
With the extent of the mutual harm the dispute is causing now more evident, it is unsurprising that both sides seem keener on reaching a deal.
Elsewhere; the Financial Stability Board, a global regulator, has started to look closely at the leveraged loan market. As the sector has expanded massively after a decade of low interest rates, there is a concern that the risks the asset class poses to the global markets might have been overlooked.
While its likely a lack of supervision has encouraged bad behaviour, at least its being looked at now rather than after something has imploded.