Politics

Following comments by the White House last week that the administration would soon bring more pressure on North Korea, President Donald Trump has confirmed as much to a crowd of reporters, adding that, as of today, that North Korea would once again be designated a terror sponsor.

Trump cited the killing of North Korean leader Kim Jong-Un's estranged half brother in a Malaysian airport earlier this year, as well as the North’s horrific treatment of Ohio college student Otto Warmbier, as justifications for the sanctions.

EURUSD is testing overnight lows (and gold is tumbling) after German Chancellor Angela Merkel said she would prefer to go ahead with new federal elections rather than try to form a minority government.

Seeking her fourth term, Bloomberg reports that Merkel is “skeptical” about a minority government as it may not bring about necessary stability and is open to another so-called grand coalition with the Social Democratic party, she said in an interview with ARD television.

Over the past several months we've frequently noted the devolving relationship between Hungarian Prime Minister Viktor Orban and billionaire financier George Soros.  Tensions escalated last month when Orban took it upon himself to mail a Soros-related questionnaire to all 8 million Hungarian voters (see: Hungary Launches Anti-Soros Political Campaign) and then followed that up with an announcement that Hungary's intelligence services had been instructed to "map" Soros' network of influence.

“When you turn an election into a three-ring circus, there is the possibility the dancing bear will win..”

After Sunday night's shocking failure by Merkel to from a government (triggered by the Free Democrats walking out due to irreconcilable differences on refugee policy, energy policy and tax policy) the FT was quick to conclude that "Merkel faces worst political crisis of her career." And while Merkel is certainly in hot water, a more appropriate question is what's next for Germany.

More than two months have passed since North Korea held one of its missile tests - the longest period of tranquility this year, although it may be ending soon: South Korea’s National Intelligence Service warned on Monday that it has detected suspicious activity at the North’s missile research facility – the latest sign that another test may occur by the end of the year. South Korean intelligence has on more than one occasion captured spy satellite images of the North Korean military transporting equipment from the North’s missile facility near Pyongyang.