17th April 2018
War fears overtake trade fears
This week volatility has remained, with fears of a trade war being replaced with fears of an actual war. President Trump was incredibly vocal on Twitter at the start of the week, making the as yet unrealised threat that missiles would be coming in Syria. Personal legal issues seem to have taken his focus off the issue lately, so the market is taking the view that perhaps he won’t follow through. It seems traders are musing on a philosophical question: if the US starts a war in the Middle East and it isn’t on social media for everyone to see it, did it really happen?
Elsewhere Mark Carney warned of a “massacre of the Dilberts”, repeating the claim that mass automation will replace thousands of office jobs. This
has been backed up by consultancy firm EY, who estimated that 330,000 jobs in London alone could be lost to machines. The fear is that widespread disruption to the services sector could lead to financial instability if not handled properly by policymakers. Given the calibre of policymakers this is a chilling prediction indeed.