Instability is the keyword this month, both political and economic. As nations around the world struggled with the unknown, here are the major stories worldwide that affected supply chain in July.
United Kingdom: The aftermath of the Brexit vote continues to shake the UK, and negotiations on trade and banking have not yet begun. A major question at stake is whether Scotland will bid to remain in the EU. How might the past case of Cyprus set precedent for flexibility?
Greece: Another nation struggling with its relationship to the EU, Greece is being confronted with a possible fine related to illegal state aid from a shipbuilder. What will be the implications for the cash-strapped Greece, and for its shipping industry?
Turkey: A failed coup this month is stirring already intense political instability in the nation. Leadership and currency remain volatile, but the important polymers industry based in Turkey is confirmed to be unaffected to date.
United States: While RNC and DNC hold their conventions with an eye to November, the economy is holding strong. Despite stagnating wages, the nation’s consumers had their best quarter in over a decade . Low gas prices and low interest rates have been tapped as major factors.
Germany: The Volkswagen emissions scandal rages on, affecting the company’s functions at home and abroad. VW has announced that it will suspend sales in South Korea. Meanwhile, the company has set aside over $17 billion to attempt to cover costs of the worldwide scandal.
France: Economists are watching for signs of trouble in the private sector and manufacturing. As the EU awaits the long term effects of Brexit, France has promoted a swift divorce from the UK.
Brazil: The summer Olympics are imminent, but Brazil is thinking ahead. In the wake of Brexit, Brazilian officials have begun pursuing expanded trade relationships with the UK.
Puerto Rico: Puerto Rico’s financial woes persist, as multiple hedge funds have filed lawsuits against Governor Padilla. Padilla has voiced an intention to continue focusing on providing basic relief and essential services to citizens.
Cuba: Fedex is initiating flights to Cuba. And as Americans begin planning their entrance to the island, scholars and economists attempt to estimate the effects capitalism will have.