This week saw the return of two summer traditions, flash flooding and a European market crisis. Italy has been understandably dominating the news, with the president dramatically vetoing the new coalition’s nominee for finance minister. The markets were already on edge following the forming of a populist coalition and the additional chaos was enough to tip them over. Thankfully it has been short lived, as a new set of ministers have now been approved to take up their posts. While political instability is very much part of Italian life, Spain has also got in on the act, losing its prime minister to a vote of no confidence, further upsetting markets.
Elsewhere, the US has made the EU’s week even worse by finally imposing steel tariffs. The global steel market is horrendously oversupplied, and there is perhaps some legitimate grievance to be had against China in this regard. The EU however has broadly even terms with the US and appears to be collateral damage in Donald Trump’s scatter gun approach to trade wars.
Read what the team at FE consider to be significant over the current week.