Japan’s Prime Minister, Shinzo Abe, called a snap election on Monday, cashing in on the increase in popular support for his hard line against North Korea’s ballistic missile programme.
Unfortunately, the stakes are being upped in this strange and perverse game between Trump and Pyongyang, with increasing possibilities of China becoming involved. A war with North Korea cannot be ruled out.
Jaume Puig (Managing Director GVC Gaesco Gestión) | Recurring terrorist attacks end up making the markets immune to them, so that is one good reason to buy stocks now in August after the tragic events in Barcelona.
Mr Trump would be wise to avoid further threatening once he’s made clear that the US will immediately retaliate should North Korea launch even a harmless attack close to Guam. Undoubtedly Mr Kim got the message. That said, no-one knows how he might react next time.
The biggest financial risk this August – a month particularly prone to financial crises, like the last one which began in August 2007 – is geostrategic: the ongoing misunderstanding between Trump and North Korean leader Pyongyang.