Risks of escalation by Russia minimized - BBH

The weekend strike by the US, British and French forces against Syria appear to have been conducted in ways that minimize the risks of escalation by Russia, according to analysts at BBH.  

Key Quotes

“The limited nature of the strike and objectives suggest that the impact on the constellation of forces in Syria will be minimal.”

There is unlikely to be much of an impact in the global capital markets, though thin markets in early Asia could see a knee-jerk effect.  The fact that strike took place may lift some uncertainty seen ahead of the weekend.  US President Trump warned a strike was coming.  The deployment of forces demonstrated the capability.  There may be unpredictable asymmetrical responses, but at least initially, investors will look past.”

Trade tensions remain high but have been given a respite.  Trump has chosen to hear a conciliatory tone by President Xi last week and went as far as suggesting that perhaps tariffs might not be implemented.  NAFTA negotiations are proceeding.  Trump also instructed his top economic and trade advisers to look into possibly joining the Trans-Pacific Partnership, which the 11 remaining members signed an agreement last month.”


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