US President Trump has again shifted rhetoric on tariffs as he backtracked on his 50% threatened duty on shipments from the EU, highlighting the unpredictability of Trumps policies leaving investors cautious after the long weekend.
President of the EU commission Ursula Von De Leyen is now confident the EU can fast track trade talks with trump and arrange a deal as a result. The FTSE 100 and European/Asian shares were all up higher this morning as the Dollar now looks set for its 5th straight month of declines.
Trump was in dialogue over Putin over the weekend, saying that the Russian leader has “gone crazy” 3 years after his invasion of Ukraine as record numbers of drone attacks reigned on the capital Kyiv. The Kremlin responded by saying that trump was suffering from “emotional overload”.
Japan released a government report suggesting that it will tweak its bond programme for this year to counter sharp rises in yields with concerns about troubled government finances. Long dated bond yields slumped as a result, sending the Yen and US treasuries lower as Tokyo looks set to prevent long term spikes in interest rates.
There are rumours amongst Tory backbenchers that Boris Johnson could be planning a comeback as Conservative leader Kemi Badenoch continues to dwindle in the polls, lagging behind both Labour and Lib Dems in recent showings. Most Tory MP’s suggest there is no appetite within the party for the former leader, saying that the landscape had changed.
With PM Starmer pledging to restore winter fuel payments and a review of the two-child benefit cap, Chancellor Reeves is being forced into a £30bn tax raids to kickstart the economy according to latest (NIESR) research.
After both US &UK holidays there is little data out today as market will focus from comments from BOE Governor Bailey on Thursday alongside US GDP, Friday sees a flurry of data with US PCE Core data a good indicator for US inflation.
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