Macro chat with Saxo CIO Steen Jakobsen

Topics discussed in this edition include:

• How the Sino-US trade war may ultimately end with a “non-solution” outcome that would actually be beneficial to both Trump and Xi.

• Why the stable course of the CNY during this trade spat leaves markets dangerously complacent that low volatility will linger.

• Whether the Federal Reserve is now behind the curve or ahead of it with its monetary policy.

• Why the plight of the German car industry will finally force the EU into fiscal action and how the current political uncertainty in the bloc will change the conversation from a bigger Europe to a better Europe.

• Why the Brexit dilemma can’t be solved until UK prime minister May steps down and why there will have to be a second referendum.
• How the Brexit endgame will likely extend beyond the current Halloween deadline and why this is negative for sterling.

• How – and in which asset classes – investors should reposition their portfolios to reflect a period of relative stability over the summer months, followed by autumn volatility as governments start to panic.