Tuesday 7th August 2018

As if the trade spat with China isn’t bad enough, the US move to push ahead with sanctions against Iran will heighten tensions with Europe. As NAB’s Gavin Friend points out, trade tensions are already hitting EU trade, evidenced by the latest German factory orders. Meanwhile, traders are feverishly shorting the pound as further warnings are issued about the possibility of a ‘no deal’ Brexit. To top it all, add the Italian budget to market concerns, with the coalition government ready to spend big. Phil Dobbie asks Gavin whether the RBA can ignore all these external tensions when the Board meets today.