NATO summit in Brussels on Wednesday and Thursday was one of the most divisive in its history.
Donald Trump urged his European counterparties in the intergovernmental military alliance to commit 4 percent of their GDP towards military spending. Using a sharp rhetoric convinced them to double their current spending. This extra 2% on defense has been decided as a response to the threats ranging from Russia’s military modernization to militant attacks on European cities.
He stressed that NATO’s budget had been unfair to the United States. Moreover, the president has been highly critical of the alliance, complaining the US pays more than others.
After the meeting, he said he believed in NATO. Furthermore, answering to a question he mentioned that it was “presently unnecessary” to consider quitting it.
The U.S. President Donald Trump takes pride of his “personal”victory at the NATO summit.
Trump tweeted what he told NATO leaders privately on Wednesday, requesting all allies to honor their commitment agreed in 2014.
….On top of it all, Germany just started paying Russia, the country they want protection from, Billions of Dollars for their Energy needs coming out of a new pipeline from Russia. Not acceptable! All NATO Nations must meet their 2% commitment, and that must ultimately go to 4%!
— Donald J. Trump (@realDonaldTrump) July 12, 2018
On the first day, the Western military alliance members focused mainly on ending the long war in Afghanistan.
FOREX MARKETS
The dollar rose 0.2% against his six major traded rivals to its highest since July 3 thanks to a bounce in equities. However, concerns over an escalation in trade war capped gains.
The dollar rose 0.5% against the Japanese Yen, boosted by appetite for risk in currency markets.
The Sterling rose 0.2% on Thursday as traders bet that a Brexit white paper policy document could help restart negotiations on trade. Further, the pound traded flat against the common currency at 88.41 pence per euro.
The Euro struggled, edging further off a 3 1/2-week high of $1.17905 touched on Monday.
Oil prices rallied on Thursday, recouping some ground following sharp losses the previous session after Libya said it would resume oil exports.
Sources: Reuters, CNN money, the guardian