The divisions between the developed and developing worlds were evident in the news and data out today. India is still grappling with inflation, China’s banks are possibly still lending too much more than the central bank wants them to, and Ukraine is descending into war. By contrast, the U.K.’s retail sales are in decent shape and business is holding up in Germany, even if expectations about the future are on the gloomy side. It’s not as if the West is booming, though. Investors will have to determine whether the modestly better economic news out of Europe and the U.S. of late is enough to offset the risk of a China slowdown and of the risk of war between Ukraine and Russia.
UKRAINE: Ukrainian forces began an operation to exert government control over pro-Russian militants in the country’s east.
One step closer to civil war and outright military conflict with Russia. Having ceded Crimea to Russia without a fight, Ukraine looks to be making more of an effort with its eastern regions. Eventually either Russia or Ukraine will have to back down or face war.
