Prime Minister Keir Starmer’s meeting with US President Donald Trump is set to take place today. Starmer is expected to negotiate on trade policies between both nations. Investors will pay close attention to the meeting, given that the UK is the fifth largest trading partner of the US. Elsewhere, Bank of England Monetary Policy Committee Member Swati Dhingra highlighted on Wednesday the limitations of central bank policy in addressing trade-based supply shocks. Dhingra noted that if global economic fragmentation proceeds in an orderly fashion, monetary policy interventions may not be necessary. However, in a scenario where external supply shocks become more frequent, having an independent monetary authority with a clear inflation target becomes crucial.
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The EU pledged to react “firmly and immediately” to the “unjustified” trade barriers announced by Trump, signalling its readiness to retaliate swiftly against the proposed levies. These escalating trade tensions could exacerbate the Eurozone’s economic slowdown and further weigh on the EUR’s performance against its peers. There are several data releases today from the Eurozone but all are of lower importance.
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US President Donald Trump said he is prepared to announce tariffs on the Eurozone- “Details on EU tariffs coming soon”. He added that tariffs to be 25% on autos and other things. Though the foundation of a global trade war has already been laid by Trump imposing 10% tariffs on all imports from China, higher import duties on the 27-nations bloc would escalate fears of an economic slowdown across the globe. He also gave a further month-long extension to Canada and Mexico to avoid tariffs. “Canada and Mexico tariffs to go into effect on April 2”, Trump said.
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13.30 Gross Domestic Product Annualised (Q4) Exp. 2.3% Prev. 2.3%
19.00 President Trump Speech