UK: Trade Sec-Consultation w/Business On Retaliatory Tariffs Until 1 May
Secretary of State for Business and Trade Jonathan Reynolds speaking in the Commons on US tariffs. Says that he is launching a "request for input from British business on the implications of retaliatory action on tariffs". The minister sets a 1 May deadline for the consultation, adding that the action will be "paused" if an economic agreement is reached with the US in the meantime. Reynolds says that "a US deal is not just possible, but favourable to both."
- Shadow Business Secretary Andrew Griffiths asks the minister to reassure the House that "In the event the UK did see a major trade distortion in Northern Ireland the gov't would be prepared, if necessary, to trigger Art. 16 of the Windsor framework." This would allow for unilateral safeguarding measures to avoid a hard border between Northern Ireland and the Republic if there are “serious economic, societal or environmental difficulties that are liable to persist, or to diversion of trade”.
- Under the Trump tariff regime, NI sits in a unique position, aligned with and having access to the EU's single market, but subject to the 10% UK tariff rather than the 20% EU tariff. It would also face the opposite impact, though, if the EU responds with tariffs and the UK does not, where its imports from the US would be hit with the EU tariff s but those going to the rest of the UK would be tariff free and cheaper.
- PM Sir Keir Starmer is speaking presently at a local election rally in Derbyshire. Expected to take Qs from journalists afterwards.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
EGB SYNDICATION: DDA 10-year 2.50% Jul-35 DSL: Priced
- Uniform price: 97.96 to yield 2.730%
- Cut-off spread at +25.5 vs the 2.50% Feb-35 Bund (ISIN: DE000BU2Z049).
- (Initial spread guidance was +25.0 to +28.0bps then revised to +25.0 to +26.5bps then to final guidance of +25.5 to +26.0bps).
- Books: E29.455314bln
- Size: E5.999507bln (top of the E4-6bln range as we expected).
- ISIN: NL0015002F72
- Total share allocated to real money:83.73%
- Total share allocated to other: 16.27%
- Allocation at the cut-off spread:
- Share allocated to real money: 55%
- Share allocated to other: 54% (reported as 5.4% but assuming that is a typo by DSTA)
- Timing: Books closed at 10:10GMT / 11:10CET
US 10YR FUTURE TECHS: (M5) Fresh Cycle High
- RES 4: 112-13 1.500 proj of the Jan 13 - Feb 7 - Feb 12 price swing
- RES 3: 112-10 2.0% 10-dma envelope
- RES 2: 112-02 1.382 proj of the Jan 13 - Feb 7 - Feb 12 price swing
- RES 1: 111-28+ Intraday high
- PRICE: 111-17+ @ 11:00 GMT Mar 4
- SUP 1: 110-00 Low Feb 28 / High Feb 7 and recent breakout point
- SUP 2: 109-19 50-day EMA and a key near-term support
- SUP 3: 108-21 Low Feb 19
- SUP 4: 108-03+ Low Dec 12 and a bear trigger
Treasury futures have traded to a fresh short-term cycle high today, reinforcing the current bullish condition. The contract has pierced resistance at 111-22+, the Dec 3 ‘24 high. This paves the way for an extension towards 112-02 and 112-13, Fibonacci projection points. Note that the daily trend condition is overbought, a pullback would be considered corrective and allow the overbought set-up to unwind. Firm support is at 110-00, the Feb 7 high.
EURIBOR OPTIONS: Put Spread seller
ERU5 97.9375/97.8125ps, sold at 4.5 in 10k.
