This is a big week for Donald Trump, perhaps the most important thing since the White House returns.
This is the time of the crisis in two fields, both of which will have the same critical consequences for the whole world, geopolitically and economically.
First, the US president bet his reputation – and the hope of the Nobel Peace Prize – about the intermediary of a successful peace agreement between the Head of Ukraine, Volodymyr Zelensky, and his enemy, Premier Vladimir Putin Russia.
Obviously too early to find out the results of this White House talks.
But if Trump fails to get a kind of agreement – which is most likely to see the land of Ukraine in the East is traded in return for security guarantees that it does not have to surrender more to Russia – then all bets are turned off.
The worst result later was that war would occur in infinitum advertisements, maybe even draging the European military to the front lines.
Tariff instructions: Chairman of Federal Reserve Jerome Powell will make his farewell speech at the Jackson Hole symposium on Friday
That is why it is very important that Trump is able to persuade both parties to find a common foundation. State Secretary Marco Rubio imposed him during the weekend interview, saying: ‘You cannot have a peace agreement unless both parties make a concession – it’s a fact.’
However, there are no clues that have no instructions about, is what concessions that Putin might be willing to do.
Trump’s second big moment to take into account – and one watched by the financial market – came on Friday when the chairman of Federal Reserve Jerome Powell made his farewell speech at the Jackson Hole symposium.
They also watched England where the results of gold returns for 30 years approached the highest level since 1998 because of the concern that inflation was moving again when growth slowed.
Over the years, the Chairperson of the Chairman of the Fed on the last day of the meeting of the central bankers has become one of the most respected events in the investment calendar, which moves the market because it sets the speed and depth of the interest rate cycle for months to come. What
Powell must say that he will give instructions where the interest rate cuts will leave the next. Trump, who has played WHAC-A-Mole with Powell for months demanding Fed’s cutting rates, will hold the breath-even-if it is a possible achievement for him.
Most of the traders and investors of Wall Street hopes that Fed cuts at the next meeting on September 17, hoping to increase shares to the highest new record.
But cutting is not in the bag, even though Trump’s selection promises to reduce loan costs.
Powell and fellow policy makers will have more data to be chewed before making their decisions: the inflation round and the next unemployment rate.
The Latest Personal Consumption Expenditure Index (PCE) remains stable for July at 2.7 percent but is still above the Fed target of 2 percent when unemployment rises again.
This places the Fed in a complicated position because it has a double mandate for maximum price stability and work, a more important size for Trump.
If Powell does not signal that the rate cycle goes down, expect another name for the name of the name.
Coal -fueled ambition
It is important for every eternal settlement of peace between Trump and Putin is the fate of the two eastern regions of Ukraine, Donetsk and Luhanansk, and Crimea. These regions formed the country’s industrial heart known as Donbas, short for Donets Coal Basin, and was the first to be invaded more than a decade ago and still mostly under Russian control.
Donbas holds more than half of the country’s hard coal reserves, worth $ 12 trillion, making it one of the largest in the world.
Above natural gas reserves, this is also home to critical minerals such as lithium, tantalum, cesium and strontium – all keys to the green energy and defense industry. There is more.
Donbas has an abundant supply of water and fertile soil, making it perfect for growing cereal.
This is also one of the biggest exporters in the world of sunflowers and turnips and soybean oil.
Inevitably, war has destroyed the coal industry while agriculture has been badly damaged, one of the reasons why food prices have soared because it is an important part of the global food supply chain.
And that is also why Zelensky-who was told by Trump without an uncertain condition that Ukraine could not join NATO-would only dare to surrender this land if given the most iron security guarantee that Russia would not go further.
It will be an art from any agreement, but of course better than war.
DIY Investment Platform
Aj Bell
Aj Bell
Investment portfolio and easy to use
Hargreaves Lansdown
Hargreaves Lansdown
Transaction ideas and free funds
Interactive Investor
Interactive Investor
Flat-fee investment from £ 4.99 per month
Investment
Investment
ETF Investment Account and Trading Free Cost
Trading 212
Trading 212
Free stock transactions and no account fees
Affiliate Link: If you take a product, this is money that can make a commission. This agreement was chosen by our editorial team, because we think they deserve to be highlighted. This does not affect our editorial independence.
Compare the best investment account for you
