"From the perspective of the US, Trumps insistence that they will control their hemisphere puts particular pressure on the Brazilians given their stature as one of the core BRICS nations. Meanwhile, the President has already warned that Mexico and Colombia could face military action if they do not stem the flow of illegal drugs, stating that "Operation Colombia sounds good to me.""
"Finally, Trump has expressed a desire to overturn the Cuban regime, warning that this could happen naturally as they put an end to the flow of Venezuelan oil money into Cuba. For traders, this means not only a heightened prospect of additional military action and regional instability, but also an emboldening of countries such as China that could see this as a green light to take the likes of Taiwan to control their own hemisphere."
European markets moved higher in early trade despite geopolitical developments. The US invasion of Venezuela and capture of Maduro reinforced demand for defence stocks, lifting BAE Systems, Rheinmetall and Thales. US rhetoric about controlling the hemisphere raises pressure on Brazil and includes explicit threats of military action against Mexico and Colombia, with the remark "Operation Colombia sounds good to me." Trump signalled intent to overturn the Cuban regime by cutting Venezuelan oil money, increasing regional instability and potentially encouraging rivals such as China to assert influence over Taiwan. Oil prices rose even as near-term Venezuelan output faces disruption from shadow fleet shutdowns and years-long infrastructure challenges.
Read at London Business News | Londonlovesbusiness.com
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