The battle between Trump and the House of Representatives continues. Across the Atlantic, the shutdown continues and neither Trump nor the Democrats seem inclined to make any effort. The administrations of agriculture, trade, national security, transport, interior and treasury have been closed since Dec. 22, representing some 800,000 technically unemployed civil servants. This paralysis of the federal administrations is beginning to pose serious problems and solidarity projects are emerging to help these many idle employees. The president does not want to back down from the Democratic opponents and insists, whatever the cost, on fulfilling his campaign promise.
Clouds are gathering around international trade. As Sino-American trade negotiations seem to be continuing, tensions could arise again between the two world powers. The American justice system has just opened an investigation into the theft of technology against the giant Chinese telecom equipment manufacturer, Huawei, according to a report from the Wall Street Journal. While Chinese and American representatives met earlier this month, Chinese Vice Premier (also negotiator of trade disputes with the United States) Liu He is scheduled to visit Washington at the end of January. In addition, a source close to Donald Trump revealed yesterday that the president could decide to impose significant tariffs on European vehicles.
May survived the no-confidence motion, she now has 4 days left to unveil her plan B. The vote of no confidence initiated by the Labour Party was rejected and the Prime Minister retained her seat at 10 Downing Street. It has until Monday to find a compromise capable of bringing together the majority of parliamentarians on the conditions for leaving Britain from the EU, scheduled for March 29. Theresa May promised to find a plan B to avoid a disorderly exit, but ruled out the option of a new referendum. The President of the Conservative Party, for his part, ruled out the United Kingdom remaining in the customs union once it leaves the EU, in order to be able to conclude international trade agreements, be able to trade throughout the world and have an independent trade policy. EU members are intensifying preparations for a no-deal Brexit.
In other news. Alexis Tsipras won the vote of confidence held in Parliament and thus consolidates his position as Greek Prime Minister. In Turkey, the Central Bank has decided to keep its interest rates unchanged. Its main key rate, the "refi rate", remains at 24%, a level decided last September during the currency crisis, compared to 8% at the beginning of 2018. In the United Kingdom, the consumer price index slowed again in December to 2.1% (from 2.3% in November), its slowest pace in two years, and is approaching the Bank of England's 2% target. Inflation in the euro zone slowed in December to 1.6% (from 1.9% in November), Eurostat revealed this morning.
