World Events Summary: 31st March – 9th April 2018

Syria: opposition activists and medics on the ground alleged that bombs filled with toxic chemicals were dropped on the Eastern Ghouta region. More than 500 people were brought in for treatment, with over 40 estimated to have died. This followed comments from Trump regarding U.S. troop withdrawal and tests the ‘red line’ he placed on such behaviour – before the North Korea summit. 

International Response: Trump cancelled his first official trip to South America to handle the Syria situation, while noises from some western leaders suggest concerted measures of some kind – probably military. Israel was blamed for an airstrike on a Syrian military base near Homs. The Russians recently reiterated the potential dire consequences of U.S. action directly against Assad. 

Russia, Turkey, Iran: met to discuss Syria, before the suspected chemical attack, looking for ways to reduce tension. The Iranian president called for recent Turkish military gains – notably Afrin – to be handed to Assad’s forces. Turkey’s president Erdogan pushed ahead with additional economic stimulus regardless of new lows for the lira and widespread concerns about inflation/overheating. 

US-China Trade: both sides announced likely retaliation measures (covering hundreds of billions) but stopped short of imposing them. Markets expressed some relief as news coverage focused on comments from the U.S. side, suggesting that this is a negotiating tactic, and president Xi expressed an intention to open Chinese markets. China demanded the U.S. end the sale of weapons to Taiwan.