Join institutional investors, analysts and strategists from the world's largest banks: Subscribe today
Already have an account? log in
A Confused, Split BoE Cuts Rates As Trump Touts UK Trade Accord
Only from the Bank of England can you get a hawkish 25bps rate cut accompanied by two dissents for a
Now I’m ready for Powell’s “Declaration of Independence” via a “dovish” hike in June.
Interest rates can’t fix a lot of the problems facing the UK.
Starmer has his hands full trying to deal with: fixing the economy; immigration; a large percentage of the population that doesn’t want to work but wants to receive government benefits; push back of the population on increasing the military budget and trying to reestablish relations with the EU.
Here’s Trump teasing the UK trade deal two days ago, actual quote:
“We’re going to have a very, very big announcement to make, like as big as it gets… I won’t tell you on what… and it’s very positive. It is really, really positive. And that announcement will be made either Thursday or Friday or Monday before we leave [for the Middle East]. But it’ll be one of the most important announcements that have been made in many years about a certain subject, very important subject. So you’ll all be here.”
After that, the president asked Carney if he’d like to say a few words.
“I’m on the edge of my seat,” Carney said, earning laughs from the press before thanking Trump for his “hospitality” and “leadership.”
The UK represents about 2% of our trade with the world, so he’s pretty desperate if he has to hype it that hard. Then again, when hype is the only skill you have you need to deploy it every chance you get.
Just more of the same from a lifelong grifter that probably said the same thing heading into casino/real estate deals that eventually fell through.
And when he saw the markets decided this wasn’t a very big deal he had to tell everyone to “…go out and buy stock” in advance of talks with China this weekend. Again, nothing substantive will come from those discussions, so markets could just whipsaw back to where they were at the close yesterday.
True price discovery was bad enough before this narcissistic clown was reelected the first time…it only gets worse by the day since he can’t keep himself out of the spotlight.
Yeah, exactly. I mean, look at all the coverage that UK “deal” got today and then ask yourself “What was actually accomplished here?” It’s the same with the China front-running. This guy’s out here telling people, basically, “Hey, I’m gonna try to maybe get us to SPX ~5900 over the next few days by lowering my 145% China tariffs to 50%.” That’s — you know — great I guess, but what are we actually doing? What’s the point of this? How is this constructive for anybody, anywhere?
Main takeaway so far (for me) from US-UK “deal” is that best case is 10% on everyone with China higher. If UK couldn’t get the baseline 10% lowered, who can? Granted there will be exemptions to the 10% for influential industries.
So we will come back to: what is the economic and profit margin effect of 10% everyone + 50% (let’s say) China?
‘The only reason the US-UK special relationship needs “cementing” is because Trump’s spent every day since January sowing doubt about alliances that no one even thought to question prior to his second term’
Wonderfully put.