June 25, 2025June 25, 2025 The US and NATO Secretary-General Mark Rutte welcomed the UK’s decision to buy 12 new US-made F-35 fighter jets, which are capable of carrying nuclear weapons. Rutte praised the move as a strong British contribution to NATO, while US Ambassador…
Ongoing Israel-Iran tensions to keep risk sentiment in check. US core PCE and consumption data to offer much-needed distraction. CPI readings also due in Canada, Australia and Japan. Flash PMIs for June in the spotlight too amid tariff chaos. US data eyed amid doubts about economy and geopolitics There’s been some good news and bad…
UK retail sales volumes slumped -2.7% mom in May, far worse than expectations of a -0.5% decline, marking the steepest monthly fall since December 2023. The downturn was driven by a sharp -5.0% mom drop in food store sales, reversing April’s 4.7% mom gain and registering the largest fall in this category since May 2021….
Markets Market positioning about the near term Bank of England’s policy rate path has been quite volatile over the past months. Going into the May decision, investors expected the UK central bank to ditch its gradual rate cut cycle to give the economy additional backing going through the turbulent tariff period. They were wrongfooted. The…
Markets Trade talks between the US and China entered their second day in London. The presence of US Treasury Secretary Bessent, commerce secretary Lutnick, trade representative Greer and Chinese Vice Premier He Lifeng and commerce minister Wang Wentao underscores the importance of that gathering one week after US President Trump and Chinese President Xi Jinping…
BoE MPC member Alan Taylor reinforced his dovish position in an interview with the Financial Times, highlighting growing downside risks to the UK economy from global developments. Taylor, who alongside Swati Dhingra voted for a larger 50bps rate cut in May, argued that monetary policy should be on a “lower policy path” given the accumulating…
A US software developer’s brief London layover turned into a nightmare after a suspected abduction and crypto theft left him physically injured and financially gutted. Jacob Irwin-Cline, 30, says he was drugged by a fake Uber driver in the early hours of May 9, who allegedly used coercive tactics and a spiked cigarette to steal…
UK inflation accelerated more strongly than forecast, casting doubt on the likelihood of a rate cut by the Bank of England any time soon. The overall consumer price index increased 1.2% in April, the strongest monthly jump since April 2022. The annual rate of growth accelerated from 2.6% to 3.5%, the highest since January 2024….
BoE Deputy Governor Clare Lombardelli reinforced the case for a “gradual and careful” approach to policy easing in a speech today. She noted underlying inflation “have continued to fall” despite noises. Monetary policy is still restrictive and will continue to balance the need to lower inflation with the risk of undermining already soft demand. Lombardelli…
Last week was dominated by developments out of the US and UK, not just because of monetary policy decisions, but also the unexpected announcement of a US-UK trade deal. Fed’s hold and BoE’s cut were were largely overshadowed by the surprise trade breakthrough. Importantly, the structure of the agreement offered valuable insights into the US…