Thanks for joining me. We begin the day with a warning that tariffs from Donald Trump’s impending administration could deliver a £20bn blow to the UK economy.
The CEBR said the president-elect’s plans for 60pc tariffs on Chinese goods and 20pc on the rest of the world, without retaliation, would deliver a 0.9pc blow to UK GDP.
5 things to start your day
Lloyds Bank accused of swamping car finance lawyers with truckloads of post | Courmacs Legal claims lender sent ‘tens of thousands’ of letters daily to stop compensation claims
EV targets putting thousands of jobs at risk, ministers warned | Bosses will stress at Wednesday’s industry meeting that requirements are out of step with demand
Thousands more join lawsuit against Hargreaves Lansdown over Neil Woodford fund | RGL Management seeks to double number of participants to 5,000 as it expects claim to total £200m
British pensioners to get boost from Trump’s election win | President-elect to boost returns for retirement funds investing in US assets, says pension boss
Lucy Burton: Worklessness isn’t a slur – it’s a crisis crippling Britain | Many are desperate for help – not gleeful at being off work or wondering if ‘economically inactive’ is rude
What happened overnight
Asian stocks dipped early as traders reined in expectations of Federal Reserve interest rate cuts following fresh signs of US economic resilience.
Japanese and Australian shares fell. South Korea’s benchmark bucked the trend, led by Samsung’s rally after it announced a stock buyback plan.
Shane Oliver, chief economist at AMP said: “Another Fed cut is still likely in December but it’s now a close call. A slower pace of easing is likely next year, particularly given that Trump’s policies regarding tariffs and more tax cuts provide some upside threats to inflation on a one-to-three year view.”
The dollar was slightly weaker after climbing 1.4pc last week, a seventh straight weekly gain as Treasury yields surged on reduced expectations for Fed policy.
The moves, coupled with concerns over Chinese growth, have ravaged everything from the Australian dollar to emerging market bonds. Asian stocks slumped 3.9pc last week, their worst sell-off in about six months.
In commodities, oil held a weekly decline on concerns over plentiful supply and weaker demand from top crude importer China. Ukraine’s allies are pushing Volodymyr Zelenskiy to consider new ways to end the war with Russia as the US mulls a final decision to lift some restrictions of western-made weapons to strike limited military targets in Russia.