Here is a summary of the most important events that unfolded last month, and which may affect economic, financial and geopolitical issues in the months ahead:

North America

The US House of Representatives has launched an official impeachment inquiry into President Donald Trump. The inquiry comes after a whistleblower complaint that President Trump pressured Ukrainian President Volodymyr Zelensky to investigate the son of former Vice President and the leading Democratic candidate, Joe Biden, after freezing nearly $400 million in military aid to Ukraine.

There has been a slight easing of tensions in the US-China trade war this past month. US President Trump has delayed a tariff hike on some Chinese goods at the request of Chinese Vice Premier Liu He. In response to this gesture of goodwill, China has lifted tariffs on US soybeans. A new round of trade talks is being held in Washington this past month.

The US and Japan reached a trade deal this past month. Under the agreement, Japan will remove or reduce tariffs on over 90 percent of US food and agricultural products. In return, the US will remove or reduce tariffs on $40 million of Japanese agricultural imports and some industrial goods.

Just days before September 11th, President Trump canceled a secret meeting with the Taliban and Afghan President Ashraf Ghani at Camp David. President Trump has called off all peace negotiations with the Taliban after they admitted they were behind a recent attack in which a US soldier was killed.

The US Federal Reserve cut interest rates another quarter-point this past month to sustain US economic expansion. Fed Chair Jerome H. Powell said that the US economy remains strong and unemployment low but that they are watching the situation and are prepared to act aggressively if the US economy shows signs of weakening. US President Trump has criticized the move saying the cuts are not enough as he has been continuously pushing the central bank to cut rates to zero.

Europe

The United Kingdom’s top court ruled against Prime Minister Boris Johnson’s suspension of Parliament, therefore widening the window for the legislature to approve a Brexit deal before the scheduled October 31 exit. Today, the UK published its official Brexit proposal to the European Union. The success or failure of the proposal will rely heavily on the reaction of Northern Ireland which seeks to remain part of the customs union without any hard borders or customs checks.

Russia’s ruling party, United Russia, took a big hit in the Moscow city elections this past month. Although it remains the majority leader, the party lost a third of its seats signaling a weakening of the current system. This may be a small win for the Russian protest movement, but they have yet to gain enough strength to push through major political change.

As part of a stimulus package, the European Central Bank cut interest rates and approved a new round of bond purchases to encourage eurozone growth. In response to the rate cuts and bond purchases, the euro dropped sharply and weakened against the Swiss franc and Japanese yen.

In April of this year, Pedro Sanchez was elected Spanish Prime Minister and his center-left Spanish Workers’ Socialist Party won the most seats, but not the outright majority of Parliament. Since then Sanchez has failed to form a new government, leaving the country with no choice but to hold another round of national elections in November.

Asia-Pacific

As China celebrates 70 years of Communist rule this week, protests in Hong Kong have erupted to new levels. Protestors have seen increasingly violent police tactics used to thwart their peaceful protests. Tuesday marked the first day that real bullets were used by police. An 18-year old protestor was shot in the chest using real bullets and live fire was used five other times throughout the day. In response to the escalation by police, protestors in the Sha Tin suburb have started forming barricades and launching projectiles at police officers. Though these protests have gone on for several months now, mainland China has yet to propose a peaceful democratic solution.

Thousands have been detained in India-administered Kashmir since India revoked the special status of the region. Indian government officials say the detentions were made in an attempt to prevent violence and the majority of those detained have been released. Indian military forces currently occupy the region, putting increased pressure on India-Pakistan relations. At the United Nations General Assembly, Pakistan’s Prime Minister Imran Khan warned of a “bloodbath” in the region.

The bilateral trade dispute between South Korea and Japan has escalated this past month as South Korea removed Japan from its list of trusted trading partners. Though it may seem like a local trade dispute, it could have major impacts on the global tech industry if tensions drag on.

Just a few weeks ago there was increased hope for talks between North Korea, South Korea, and the US. However, just hours after the US and North Korea confirmed a new round of working-level nuclear negotiations, a ballistic missile was launched today toward the Sea of Japan from a North Korean underwater platform. Both the US and South Korea have insisted on concrete steps towards denuclearization before any sanctions relief.

India and Nepal have opened South Asia’s first cross-country oil pipeline allowing Nepal to receive an uninterrupted supply of oil from its southern neighbor and largest trading partner. The pipeline is seen as a major step of friendship between the two countries whose relationship has historically been strained.

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