In the Washington budget impasse Republicans have offered a temporary truce - a short term deal to avert a default on US government bonds. The White House has called the proposal an encouraging sign.
On Monday, fresh US sanctions against Iran come into effect, the next salvo in its economic conflict with Tehran. The main targets are oil exports and the financial sector. Europe is having difficulty forming a response.
The US ratings agency has warned that failure to raise the country's debt limit by the end of September could have worse consequences than the collapse of Lehman Brothers during the financial crisis.
Trump has warned that if Democrats won power in the midterm elections, the US economy would see higher taxes, endangering jobs as a result. But cohabitation means legislative stagnation is more likely.
It's a positive sign that the US Congress finally managed to pass a budget and end a brief shutdown. But the deal leaves the "Dreamers" hanging once again and shatters the myth that deficits matter, says Michael Knigge.
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