Citi on North Korea “risks are ratcheting higher now than in the past”
This is not pleasant reading from Bloomberg, on a Citi report re the risks from North Korea
- "Financial markets need to care" about the risks from nuclear-armed North Korea
- "good reason to believe that risks are ratcheting higher now than in the past."
Citi's Wednesday report cites:
- North Korean regime has become more unpredictable under Kim Jong-Un
- The country's ballistic-missile program is making technological progress
- U.S. foreign policy is more unpredictable, with the Trump administration pledging to consider all options
- China has stepped up pressure on North Korea, spurring its neighbor's criticism, though China may still prefer a nuclear-armed North Korea than a failed state
- "It is tough to price anything other than higher volatility in the short-term, but there are clear risks to supply chains and to global confidence, as well as implications for capital flows that could upset market equilibria"