This week saw more controversial moves from the White House, a mixed picture for the UK’s recent economic output and surprising growth in European stock markets.
The big picture: The new White House continues to set the news agenda, with US president Donald Trump courting controversy on the international stage. Although tariffs are the leading issue for many international traders, his geopolitical moves are also upsetting the established order.
While his secretary of state, Marco Rubio, meets with Russian diplomats to discuss a controversial peace with Ukraine, his vice president, JD Vance, has made it clear that Europe and NATO are no longer priorities for Washington.
Trump’s claim that Ukrainian president Volodymyr Zelensky was a “dictator” prompted a wave of controversy at home and abroad.
Already, European political parties have broken with the White House by calling for continued support for Ukraine. Mainstream UK politicians have all re-affirmed their support for Zelensky, while Canada and Mexico are reconsidering their international trade strategy.
Amid reports that China, South Korea and Japan could benefit from trade shifts caused by tariffs, how long could it before the alliances shift completely.
Good week/bad week: It’s been a good week for UK services and a bad week for UK manufacturing.
According to S&P’s flash purchasing manager’s index (PMI), the service industry grew by 51.1 in February, a two-month high – anything above 50 indicates growth. Services relatively strong month is powering the UK to a period of slight overall growth (50.5 overall). Although this was down fractionally from January’s 50.6, it is also the sixteenth successive month of growth according to the index.
However, it’s been a bad week for the UK’s manufacturing industry. The same survey found that output and orders both fell, with domestic and international new business falling significantly. Client budgets and waning confidence were cited as reasons, with manufacturers complaining about weakened demand from international markets in Europe and North America.
How’s stat? 5.2%. That’s how much European stocks have gained since Trump’s inauguration, outpacing counterparts in US markets. The FT also reports that the S&P 500 only rose by 2.5%, while the Nasdaq gained 1.7% over the same period.
Quote of the week: “They had about $50bn worth of our product, and we were making them buy it. The problem is that Biden didn’t push them to adhere to it,” Donald Trump, discussing the possibility of a US-China trade deal.
What else we covered this week: A report from TechUK called for more support for the semiconductor industry, including additional measures to help SMEs and additional financial support for businesses.
We covered how Mexico could respond to the Trump trade tariffs, including the possibility of Korea and Japanese auto-manufacturers ending up as ‘big winners’.
Christian Pulman, head of procurement at Chartered Institute member ASSEAL, explained how he maintains a global supply chain while keeping on top of compliance.
The Daily Update covered all the latest trade news from Latin America, including how Argentina’s attempts to build up a crucial trade network have floundered.
True facts: Amid talk of the modern US-China rivalry, today marks a major milestone in relations between the two nations.
On this day in 1972, US president Richard Nixon visited China to ‘normalise’ relations. China hadn’t yet become the economic power it is now, and the US was still locked in the middle of its Cold War struggle with Russia. The trip was the first time a US president had visited China since the Chinese Communist Party had seized control and ended an otherwise barren period for US-Sino relations.
Sadly for Nixon, today is also a reminder of his biggest failing. In a footnote to the Watergate scandal, on this day in 1975, two of his aides were handed two lengthy prison sentences for obstruction and perjury for their roles in the notorious incident.
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