UK metal trade fears ‘devastating blow’ from Trump tariffs; Brussels vows to react; FTSE 100 hits file excessive – enterprise stay | Donald Trump
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UK Metal fears “devastating blow” from Trump tariffs
Commerce physique UK Metal has warned that the imposition of US tariffs on UK metal could be “a devastating blow” to the trade.
UK Metal director common, Gareth Stace, says:
The US is our second largest export market after the EU. At a time of shrinking demand and excessive prices, rising protectionism globally, notably within the US, will stifle our exports and injury over £400 million value of the metal sector’s contribution to the UK’s stability of commerce.
Stace says it might be “deeply disappointing” Trump decides to focus on UK metal, given its “comparatively small manufacturing volumes in comparison with main metal nations”.
H explains:
The UK produces world-leading metal, supplying the US with high-quality merchandise for defence, aerospace, stainless, and different vital sectors, supplies that merely can’t be replicated elsewhere.
The hazard, Stace provides, is that different nations determine to dump metal on the UK market to keep away from US tariffs:
“On the similar time, the introduction of additional US tariffs will inevitably divert international commerce flows, with extra metal probably redirected to the UK market. This reinforces the pressing want for watertight UK commerce measures in 2026 to forestall surges in imports following the UK’s metal safeguards expiry.
Accelerating the UK’s CBAM [Carbon Border Adjustment Mechanism] to 2026 would supply an extra layer of safety in opposition to unfairly priced metal. The UK Authorities should act decisively to protect our home trade from the fallout of rising international protectionism.”
Reminder: We don’t but know if the UK shall be topic to the 25% tariff on metal which Trump introduced final night time, or if exemptions shall be obtainable; British ministers mentioned immediately they need to ‘wait and see’ what the US does…
Key occasions
The FTSE 100 index isn’t the one share index hitting a file excessive.
The pan-European STOXX 600, which incorporates the most important firms throughout the area, has hit a brand new alltime excessive immediately, as traders show to be unphased by commerce battle fears….
Credit standing company Moody’s has warned that the triple-A rankings of the World Financial institution and different prime multilateral lenders could be in danger if the USA withdraws assist for them
Final week, Trump signed an Govt Order to overview US authorities assist to all worldwide intergovernmental organisations of which it’s a member and to withdraw from some United Nations organisations.
In a report revealed this morning, Moody’s says:
“The US is a key shareholder in a lot of rated MDBs (multilateral growth banks), therefore it might be credit score detrimental if it materially decreased its dedication to them.”
Former US Treasury secretaries: Our Democracy Is Beneath Siege
5 former US Treasury secretaries have attacked the actions of Elon Musk’s new Division of Authorities Effectivity (DOGE), warning that America’s monetary ccredibility is in danger.
Robert Rubin, Lawrence Summers, Timothy Geithner, Jacob Lew and Janet Yellen – collectively the seventieth, 71st, seventy fifth, 76th and 78th secretaries of the Treasury – have warned that the custom that America’s fee system has traditionally been operated by a really small group of nonpartisan profession civil servants has been upended, after Musk’s Doge crew was granted ‘full entry’ to the federal fee system.
Writing within the New York Occasions immediately, the distinguished quintet warn that the political actors at DOGE haven’t been topic to the identical rigorous ethics guidelines as civil servants, and lack the coaching and expertise to deal with non-public, private information.
They are saying:
Whereas vital information privateness, cybersecurity and nationwide safety threats are gravely regarding, the constitutional points are maybe much more alarming.
We take the extraordinary step of scripting this piece as a result of we’re alarmed concerning the dangers of arbitrary and capricious political management of federal funds, which might be illegal and corrosive to our democracy.
They level out that it’s as much as Congress to determine how US. federal {dollars} are spent, saying:
Throughout our collective 18 years on the helm of the Treasury, we by no means have been requested to cease congressionally appropriated funds from being paid out in full. Not for the reason that Nixon administration has this sort of government motion been contemplated. At the moment, the Supreme Courtroom dominated unanimously that the president didn’t have the facility to withhold federal funds that Congress had licensed.
The federal funds system controls greater than $6tn of federal cashflow annually, with hundreds of thousands of Individuals relying on it for social safety and Medicare advantages.
Rubin, Summers. Geithner, Lew and Yellen clarify:
Individuals typically depend on these funds for survival, making any threat of their cutoff or delay existential. However much more than the significance of creating good on specific commitments is the significance of creating good on the ideas that this nation stands for.
We have now throughout our service within the Treasury Division confronted moments of disaster, when the specter of an American default loomed. Any trace of the selective suspension of congressionally licensed funds shall be a breach of belief and finally, a type of default. And our credibility, as soon as misplaced, will show troublesome to regain.
FTSE 100 hits file excessive as BP shares surge
Britain’s blue-chip share index has simply hit a brand new alltime excessive, regardless of commerce battle worries.
UPDATED: The FTSE 100 index has touched 8,770.08 factors, three level above the earlier intraday excessive set final week when the Financial institution of England reduce rates of interest.
The rally is being pushed by BP, whose shares are up over 7% after activist investor Elliott Funding Administration took a stake within the UK oil firm.
McDonalds hit by fall in US gross sales
Quick meals large McDonalds has reported a drop in gross sales within the US.
Like-for-like gross sales at American shops fell by 1.4% within the final quarter of 2024, the corporate reviews.
The drop in gross sales is because of prospects shopping for much less on the until.
McDonalds says:
Comparable gross sales outcomes for the quarter replicate a decline in common test, partly offset by barely constructive comparable visitor counts
International comparable gross sales elevated by 0.4%, regardless of a fall in gross sales in some markets, “led by the UK”.
Bloomberg Economics have calculated that South America, Africa and southern Asia face the best shock if President Donald Trump makes good on his pledge for reciprocal tariffs.
Senior economist Maeva Cousin discovered that such tariffs “could be notably painful for a lot of rising and fewer developed economies.” – as a result of they at the moment impose greater tariffs than the US.
In distinction, she writes:
“Most superior economies, specifically in Europe, apply tariff charges on US items which are, on common, comparatively near tariffs utilized to their very own exports.
Nonetheless, there might be areas of pressure, notably on agricultural merchandise and vehicles.”
Extra right here.
Right here’s our information story concerning the soar in BP’s share value immediately:
Shares in European steelmakers have fallen immediately, in anticipation of latest tariffs on their merchandise on the US border.
ArcelorMittal, the Luxembourg-based multinational metal manufacturing agency, are down 2%.
German industrial engineering and metal manufacturing multinational ThyssenKrupp’s shares are down 0.8%.
Over in South Korea, Hyundai Metal’s share value dropped 2% immediately.
US steelmakers shares set to leap
Shares in US steelmakers are ralling in pre-market buying and selling, as traders anticipate new tariffs on international imports of metallic.
Cleveland-Cliffs, the American metal producer based mostly in Cleveland, Ohio, are up over 8% in premarket buying and selling, as are Nucor Company, one other massive metal producer which additionally makes recycled metal.
Alcoa Corp, the aluminium producer, are on monitor to leap 5% when Wall Avenue buying and selling begins in two hours.
New tariffs will make it tougher for abroad firms to promote lower-priced metal on the U.S. market, supporting home producers. US metal makers might additionally probably hike their very own costs, to reap the benefits of the truth that abroad metal will price extra as soon as it incurs a tariff too.
A spokesman for UK prime minister Keir Starmer has advised reporters that Britain has not seen particulars of Donald Trump’s proposed metal and aluminium tariffs.
The spokesman says that whereas it was not potential to invest on the affect of such tariffs with out seeing particulars, Britain all the time prepares for all developments, saying:
“I haven’t seen any detailed proposals following reporting in a single day, however we are going to clearly interact as applicable.”
Europe: We are going to react to US tariffs
The European Union is signalling to the US that it might react to guard EU pursuits after US president Donald Trump’s announcement of impending metals tariffs.
Nonetheless, Brussels just isn’t responding till it has clarification about what the US plans too do.
In a press release, the European Fee mentioned:
“The EU sees no justification for the imposition of tariffs on its exports.
We are going to react to guard the pursuits of European companies, staff and customers from unjustified measures.”
A European Fee spokesperson has advised reporters immediately that the reciprocal tariffs proposed by Trump are additionally unjustified, saying:
“We consider that not one of the potential measures outlined by the U.S. administration up to now are justified.”
Trump indicated final weekend that he’ll announce reciprocal tariffs on Tuesday or Wednesday, underneath which the US would elevate commerce ranges to the identical stage because it faces on its exports to different international locations….
Neighborhood union: US wants UK’s specialist metal
Neighborhood, the union for the UK metal union, are additionally very involved concerning the prospect of latest US tariffs on metal.
Alasdair McDiarmid, Neighborhood’s assistant common secretary, says new levies hit import of British Metal might harm America:
“Whereas we await full particulars and a proper coverage announcement, the feedback from the White Home concerning new tariffs on metal are extraordinarily regarding.
At a time of uncertainty for the sector, a punitive new tariff on UK metal exports could be vastly damaging and threaten jobs. For the US it might even be self-defeating, because the UK is a number one provider of specialist metal merchandise required by their defence and aerospace sectors.
Once more, this simply reinforces the necessity for a robust UK Carbon Border Adjustment Mechanism and for strong new measures to be put in place when present safeguards expire to protect our metal sector from a surge in low-cost imports.”
UK Metal fears “devastating blow” from Trump tariffs
Commerce physique UK Metal has warned that the imposition of US tariffs on UK metal could be “a devastating blow” to the trade.
UK Metal director common, Gareth Stace, says:
The US is our second largest export market after the EU. At a time of shrinking demand and excessive prices, rising protectionism globally, notably within the US, will stifle our exports and injury over £400 million value of the metal sector’s contribution to the UK’s stability of commerce.
Stace says it might be “deeply disappointing” Trump decides to focus on UK metal, given its “comparatively small manufacturing volumes in comparison with main metal nations”.
H explains:
The UK produces world-leading metal, supplying the US with high-quality merchandise for defence, aerospace, stainless, and different vital sectors, supplies that merely can’t be replicated elsewhere.
The hazard, Stace provides, is that different nations determine to dump metal on the UK market to keep away from US tariffs:
“On the similar time, the introduction of additional US tariffs will inevitably divert international commerce flows, with extra metal probably redirected to the UK market. This reinforces the pressing want for watertight UK commerce measures in 2026 to forestall surges in imports following the UK’s metal safeguards expiry.
Accelerating the UK’s CBAM [Carbon Border Adjustment Mechanism] to 2026 would supply an extra layer of safety in opposition to unfairly priced metal. The UK Authorities should act decisively to protect our home trade from the fallout of rising international protectionism.”
Reminder: We don’t but know if the UK shall be topic to the 25% tariff on metal which Trump introduced final night time, or if exemptions shall be obtainable; British ministers mentioned immediately they need to ‘wait and see’ what the US does…
Ed Davey seeks disaster talks about Trump tariff risk
Liberal Democrats chief Sir Ed Davey is urging Prime Minister Keir Starmer to carry disaster talks with the leaders of Scotland, Wales and Northern Eire to debate the tariff risk from Donald Trump.
He mentioned:
“Donald Trump’s newest risk of tariffs will plunge many into deep uncertainty – not least these working in our nice British metal trade.
“Keir Starmer should instantly name a 4 Nations summit with leaders throughout the UK, to agree a joint plan to guard our financial system from Trump’s damaging commerce battle.”
Trump tariffs on metal and aluminium bought into the US is detrimental for markets on two ranges, says Russ Mould, funding director at AJ Bell.
“First, it suggests the brand new US president has solely simply received began with America’s budding protectionist commerce coverage. Second, it extends the affected international locations past Canada, China and Mexico to locations like Germany, Brazil, Japan and South Korea.
“With the promise of additional tariffs later this week, Trump’s actions threaten to trigger appreciable volatility on the markets over the approaching days if there’s a tit-for-tat response from affected international locations.
“Whereas shares within the firing line reminiscent of ArcelorMittal and Hyundai Metal fell on the information, one other a part of the commodities sector loved a bounce round hypothesis that activist traders have been focusing on the oil and fuel house. Speak that Elliott had taken a stake in BP drove shares within the UK oil and fuel large up 7.5%, which in flip gave a 0.4% increase to the FTSE 100.”
MPs demand solutions about Financial institution IT shambles
After a sequence of banking IT failures which have disrupted providers for purchasers during the last couple of years, MPs are demanding solutions.
Parliament’s Treasury Committee have wrtten to the bosses of the 9 largest UK banks and constructing societies, asking how a lot disruption their prospects have suffered during the last two years.
Additionally they need to know what number of prospects have been affected, and the quantity of compensation that has been paid.
The letter comes after Barclays suffered an IT glitch that lasted for a number of days, throughout which period some prospects noticed outdated balances, or couldn’t see their newest fee.
Chair of the Treasury Choose Committee, Dame Meg Hillier MP, says:
“When a financial institution’s IT system goes down, it may be an actual drawback for our constituents who have been counting on accessing sure providers to allow them to purchase meals or pay payments.
For it to occur at a serious financial institution reminiscent of Barclays at such an important time of yr is both dangerous luck or dangerous planning. Both approach, it’s necessary to be taught what has occurred and what shall be performed about it.
The quickly declining variety of excessive avenue financial institution branches makes the affect of IT outages much more painful; that’s why I’ve determined to jot down to a few of our largest banks and constructing societies.”
As tariffs are inflationary, they might make it tougher for the US central financial institution to decrease rates of interest this yr.
Presently the monetary markets anticipate only one price reduce from the Federal Reserve throughout 2025, at the moment anticipated by July.
Enrique Diaz-Alvarez, chief economist at international monetary providers agency Ebury, reckons the relative energy of the US financial system can even make cuts to borrowing prices tougher to justify.
“Attempting to foretell the subsequent tariff replace to hit the newswires is a little bit of a idiot’s errand, so it’s maybe extra productive to focus extra on the macroeconomic backdrop.
“Final week’s nonfarm payrolls report was, as soon as once more, in keeping with a US labour market that is still robust. Corporations proceed to create jobs at a wholesome clip, the unemployment price is hovering round ranges in keeping with full employment, and the report confirmed a shock uptick in wages in January – month-to-month earnings rose at their quickest tempo since mid-2023.
“All of this constructive financial information, plus the looming risk of value hikes from Trump’s tariffs, makes it more and more troublesome to justify any additional rate of interest cuts in any respect from the Fed in 2025.
“With charges within the US remaining virtually the very best within the G10, we predict that it will likely be troublesome for the greenback to sell-off despite its admittedly very costly ranges.”
BP shares hit six-month excessive after Elliott builds stake
Shares in oil large BP have hit a six-month excessive after activist investor Elliott Administration took a stake within the firm.
Merchants are calculating that Elliott will push for an overhaul of BP’s technique, and a shake-up of its board which might declare chairman Helge Lund.
BP’s shares are up 6.35% at 460.70p, the very best since final August, after Elliott’s stake was reported on Saturday.
BP shareholders could also be impatient for enchancment, as Richard Hunter, head of markets at interactive investor, says:
The shares have drifted by round 3% during the last yr, in distinction to a achieve of some 6% for rival Shell over that interval and it stays to be seen whether or not this newest hypothesis will present a shot within the arm for what has been a comparatively disappointing interval for the group of late
BP is because of launch its newest monetary outcomes tomorrow, after lately setting out plans to chop hundreds of jobs from its international workforce to avoid wasting billions in prices and appease its nervous shareholders.
BP has fallen out of favour with many traders since embarking on a plan to slash its oil and fuel manufacturing in favour of spending billions on renewable power tasks…
Extra right here:
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