All the day’s economic and financial news, including reaction to Donald Trump’s tax proposals and this afternoon’s European Central Bank meeting
- Trump’s tax plan leaves City cold
- Investors criticise lack of detail
- Plan may struggle to get through Congress
- FTSE 100 drops, but pound rises
- European markets fall at the open
- The agenda: It’s ECB Day
As well as the tax reform plan, investors are also digesting the surprise news that Donald Trump no longer wants to abolish the NAFTA free trade agreement.
This huuuge u-turn broke last night, after talks with the leaders of Canada and Mexico:
Massive Trump U-turn: says he will not pull out of Nafta at this time. He’s railed against it his whole life pic.twitter.com/IPlYbpzKAD
Overall, this suggests that both communication and policy decision making are a shambles at the White House right now, with extreme and more moderate forces vying to get Trump’s attention.
Overall, this Nafta issue highlights that policy implementation risk is surging under the Trump administration, and could stoke volatility if it continues.
The dollar has also dipped this morning, taking the greenback close to its lowest level in five months.
That’s pushed sterling back over $1.29.
The lack of details contained on Trump’s single piece of paper was perceived as a publicity stunt for the President as he celebrates his first one hundred days in the Oval Office, and unfortunately, seemed more of a wish list than a serious starting point.