UK PM Theresa May and US President Donald Trump will meet today to discuss the details of a future UK-US trade deal. Both leaders are close to potentially defining junctures in their respective tenures, with Mrs. May running out of time to meet her self-imposed deadline to begin the formal separation from Europe. Meanwhile, Mr. Trump looks to secure a positive outcome from his first meeting with a foreign leader since assuming office, with the level of success of the discussions possibly setting a benchmark for future diplomacy.
Opposites attract?
It is not hard to spot the many differences between Mrs. May and Donald Trump, but there are also more similarities than you may at first think. Both rose to power on the back of an unexpected victory that was largely driven by a rising level of populism on both sides of the Atlantic. Due in part to this, both have turned inwards in their objectives now that they’re in office - with several previously held trade deals either broken or in the process of termination, and in a world where both leaders are fast losing allies there is a greater pressure than before in ensuring the close ties between the UK and US remain strong.
Both parties keen to avoid a Mexican standoff
Due to the relative size of their economies it appears that there will be a greater degree of willingness on Theresa May’s part to come to some sort of agreement, with a trade deal with the US seen as valuable bargaining chip that can be used when discussing future deals with other nations. However the meeting also provides an opportunity for Mr. Trump to improve his country’s international relations, which have got off to a poor start with the constant aggressive rhetoric surrounding the building of a wall on the southern border causing a Mexican stand-off. It seems likely that both will want to have a positive meeting that they can then use as evidence of success to improve their current standings.
FTSE set to end quiet week little changed
Despite the Supreme Court ruling and sizeable moves in the pound it has been a quiet week for the leading UK stock market with the FTSE 100 trading at similar levels to those seen on Monday’s open. After last week’s substantial decline the index has consolidated and whilst we’ve seen a lower low and lower high, the bears have failed to seize the opportunity and really push home their advantage. The benchmark is lower by 3 points on the day but remains above 7150 and is still within striking distance of all-time highs.
Every little helps for Tesco (LON:TSCO)
Shares in the UK’s largest supermarket Tesco have soared this morning off the back of the news that a deal has been reached to merge with wholesaler Booker. The stock is up by 8% since last night’s close as the agreement will likely further consolidate Tesco’s position as a market leader. FTSE 250-listed Booker claims to be the UK’s largest cash and carry operator and the firm has also seen a positive reaction in its stock price which has jumped by approximately 15% on the news. Two airline stocks are taking different routes this morning with International Consolidated Airlines higher by almost 2% following analyst upgrades from numerous investment banks, whilst easyJet (LON:EZJ) continues to see turbulence in its share price (-2%) as the budget carrier sees its stock lose altitude at the end of a poor week that saw disappointing results released.