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LONDON (Reuters) – Hungarian President Viktor Orban will vigorously defend his government in a speech to the European Parliament ahead of his vote this week to find out if he is ignoring European law and democracy regulations.
PHOTO: Hungarian Prime Minister Viktor Orban speaks at a meeting with Italy's Interior Minister Matteo Salvini in Milan on August 28, 2018
Reelected in April, Orban is accused by critics of weakening the freedom of the press and the judiciary while lending EU funds: he rejects these criticisms and accuses Brussels of overstepping his powers.
Two thirds of European legislators are required to trigger sanctions against Budapest, which can not be achieved. The focus will be on the vote of its allies in Parliament, including those of the same group as the Fidesz party of Orban. Others, like the British Conservatives, may well oppose sanctions because they consider that such a measure undermines national sovereignty.
This day marks the official beginning of Russia's greatest war games since the fall of the Soviet Union, with unprecedented participation of the Chinese army. Maneuvers in the east of the country are taking place at a time of heightened tension between the West and Russia, which is worried about what it describes as the unjustified strengthening of NATO's military alliance on its western flank. .
Asked whether China's involvement meant that Moscow and Beijing were on the road to an alliance, the Kremlin said it showed that the two were cooperating in all areas. Indeed, Vladimir Putin will meet the Chinese Xi Jinping on the sidelines of a commercial event in eastern Russia at the same time.
British Finance Minister Philip Hammond is now answering questions from Parliament, as he may announce his budget next month to avoid a clash with the final stages of British negotiations to leave the EU.
It now seems that the EU is preparing for a single summit in November, on the grounds that no agreement will be reached at that scheduled in Salzburg next month. Moreover, reports indicate that the batch of tough Brexit MPs who oppose Theresa May's compromise proposal on future ties with the EU has failed to find her own solution "The truth is that we have reconsidered". -Mogg as said.
MARKETS AT 06:55 GMT
In the past 24 hours, global markets have been dominated by the surge in Brexit optimism and the decline in emerging market equities.
The pound added to Monday's hike, reaching its highest in a month after EU negotiator Brexit Michel Barnier said Monday that an agreement with the UK is achievable in six to eight weeks if all parties were realistic.
By overthrowing the national political lines and dividing on the issue, sterling took Barnier's comments more seriously, as they underline a change of tone from Berlin, Paris and Brussels in recent weeks to reach an agreement in November. After a summer of warnings about a transaction-free Brexit, market positioning was short and the surprise factor was geared towards trade-offs.
The news embellished more optimistic economic news in the UK, with GDP growth in the three months to July before forecasts at 0.6% and the July trade deficit the weakest since February.
Data on jobs and profits in the UK are due to be released later today and UK Finance Minister Hammond answers questions from Parliament. Sterling increased its gains above $ 1.30 Tuesday early in the day and reached its highest levels since early August against the euro.
Chinese stocks continued to languish on the prospect of US tariffs on virtually all Chinese products after a series of warnings from President Donald Trump over the weekend. Asian stocks have further weakened with Trump weekend's warning to Apple to bring the manufacturing sector back to the US, hitting Apple's suppliers in the region. The MSCI Asia ex Japan Index fell for the ninth consecutive session – its longest run of losses since the start of 2016.
Despite some relief for emerging currencies as the dollar retreated, the MSCI global emerging equity index fell to its lowest level in 14 months as investors worried about the financial shock of the latter month. .
The benchmark stock indexes in Shanghai, Hong Kong, Seoul and Jakarta were all in the red again, with the Tokyo Nikkei outperforming in part because of the weakness of the yen. The Chinese offshore yuan has briefly touched its weakest for more than two weeks.
The Russian ruble stabilized after heavy losses for it and the Russian government's bonds on Monday before the central bank's policy decision this week and doubts about the likelihood of a rate hike under pressure from the Kremlin .
The Turkish lira was also more stable as markets waited for a political decision from the Turkish central bank on Thursday, as the domestic economy weakened in the second quarter before the fall of summer.
The euro / dollar, meanwhile, was more stable before the European Central Bank's policy meeting this week, with easing of tensions over Italy's impending budget.
Italian Foreign Minister Enzo Moavero said on Tuesday that the country is determined to adopt a budget this year, which will resolve market speculation and see no way out for Brussels.
As Wall Street shares progress rapidly overnight, European stocks should be more open, with an eye on the publication in September of the German ZEW investor confidence index.
– An overview of the day of Chief Economist and European Policy Editor Mark John and EMEA Market Publisher Mike Dolan. The opinions expressed are theirs –
