New trade war front threatens European stocks
The FTSE dipped at the start of trading but managed to nudge its way into the black despite the US opening a new trade war front, this time against the EU over European subsidies for aircraft maker Airbus (LON:0KVV).
US looking to levy tariffs and some food and drink makers
The office of the U.S. Trade Representative is looking into imposing tariffs on a number of European goods in a counter measure to European subsidies for Airbus, arguing that European subsidies are unfair to U.S. aircraft maker Boeing (NYSE:BA).
The two sides have been in litigation for 14 years. The office has put forward a list of goods for public to comment on and the additional tariffs could be put in place possibly as soon as this summer, pending a decision from a World Trade Organisation arbitrator. Affected companies will include plane part makers, food, clothes and drinks makers including wine and cheese producers.
Pound higher on May bid to delay Brexit deadline
Prime Minister Theresa May’s last minute tour of the German and French capitals is supporting the pound as the PM is attempting to negotiate an extension for Brexit which is technically due in four days.
Sterling is reflecting the market’s cautious optimism that a no deal Brexit can be averted and the currency is trading 0.5% higher against the dollar. The euro on the other hand is range trading, feeling some pressure from the latest US trade moves but being supported by the likely delay in Brexit.
Brexit hampers early Easter shopping
It didn’t come as a big surprise that UK consumer spending continued to decline in March with the uncertainty over Brexit stopping shoppers from making big ticket purchases such as furniture and putting a dampener on early Easter holiday shopping.
The 1.1% dip in annual sales for March comes at the end of a difficult quarter for retailers who have been feeling the pinch for more than two years now.
Debenhams (LON:DEB) appears to be the latest high street victim of the Brexit malaise as the company heads for administration after it rejected a rescue plan offer from Sports Direct (LON:SPD) owner Mike Ashley. Ashley’s late night offer to underwrite a GBP200 million rights issue in exchange for him becoming CEO has been rejected after an acrimonious battle.
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