Janet Mui: weekly economic update 31 May
In this week’s video Janet discusses the European elections, UK politics and US-China trade tensions
Pro-European parties retain hold of the European Parliament
The grand coalition of conservatives and social democrats lost its absolute majority in the European Parliament and anti-establishment parties gained seats. However, overall, pro-European parties retained their majority.
UK political landscape becoming more polarized
In the UK, the Conservatives and Labour appear to be moving further apart on Brexit. With the upcoming departure of Theresa May, the conservatives are likely to elect a pro-Brexit PM, while Labour is moving towards a second referendum.
Escalation of US-China trade tensions weighs on markets
In response to increases in US tariffs and the blacklisting of Huawei, the Chinese government signalled that it may restrict the export of commodities used in the manufacturing of some high-tech equipment. Tensions look set to persist.