President Donald Trump:
- He pauses a one-month delay of Canada and Mexico tariffs on auto after a talk with heads of General Motors, Ford, and Stellantis. Many automakers warned that a 25% tariff on US neighboring countries would skyrocket the auto price almost immediately while disrupting the supply chain. Plus, he plans to discuss further with tech leaders companies, including HP, Intel, IBM, and Qualcomm CEOs, on Monday next week.
- A talk between Trump and PM Canada is more like a drug prevention deal than a trade deal, although Trump mentioned it ended “somewhat in a friendly manner.”. This also hints a positive message from this meeting as well.
- A threat posed to Hamas demanding the release of hostages and returning of bodies while pledging support to Israel to “finish the job.”
The Bank of England:
- Now they are raising concern about persistent inflation, which heavily puts the blame on rising national insurance that forces a 2% increase in wage costs. This then accumulates into 0.1-0.2% of inflation gained in response, as per BoE Gov. Bailey.
- While others believe that the 2nd round effect of inflation will be less likely due to recent weakness in economic growth, pointing to a scenario of a near-meet stagflation.
Job in the United States
ADP employment changes dropped below the estimated figure due to recent layoffs from Trump’s policy and uncertainty in the economic outlook. While there are some drawbacks in activities and new orders that lead the business to reluctantly replace leavers.
