I’m writing this on April 1st – A.K.A. April Fools’ Day. And while I’m sure certain members of the White House chuckled once or twice over these last few weeks, let me tell you, this month was no joke (ba dum tsh).
Like my last roundup, I’ll start with the markets. This month saw the S&P and Nasdaq both fall into correction territory after the new President continued his hawkish approach to trade policy. Within a matter of days, the US stock market lost $4 trillion in value, sparking fears that a bear market could be just around the corner.
Of course, this begs the question: does Mr. Trump care?
If we take his previous reactions to the market’s movements, then probably not. In his own words, “I’m not even looking at the market.”
Well, quite obviously, he should – and the current debate raging around the concept of ‘American Exceptionalism’ is case in point.
A recent Bank of America survey has shown a record rotation from US to European equities, with 39% of fund managers now holding overweight positions in the continent.
Of course, as for whether the US’s exceptionalism really is that ephemeral, time will tell.
Let’s just hope ‘liberation day’ isn’t too catastrophic.
And what about good ol’ Britain? Among the stories filtering out of news desks across the City, one particularly caught my eye.
Probably anticipating a lukewarm growth assessment from the OBR – and as it halved our growth forecast to 1%, she was certainly right to think so – Chancellor Rachel Reeves called out our regulators for being overly bureaucratic.
She’s right.
London’s IPO market has been in the dumps for a while now, with low valuations and high barriers to entry pushing innovative, homegrown businesses elsewhere.
That said, a very recent – and excellent – piece by CityAM analysed whether London could take NYC’s fintech crown, citing a report that showed the gap between the two cities as fintech and financial hubs was near-negligible.
Clearly, there’s still life in the old dog. As Trump deters investors from the States, it’s on the UK and our policymakers to make the most of our innovative business ecosystem.
But perhaps this is wishful thinking.
Bloomberg: America's economic edge under threat.
Trade policies, a weaker dollar, and shifting investments spark concerns about America's future. Read here.
The FT: Wall Street tumbles on tariffs.
Stocks dropped sharply as tariffs on Canadian imports reignited investor fears, pushing the S&P 500 into a 10% slump. Read here.
The Times: Global stocks fall. Gold hits record.
Global markets fell sharply as Trump’s tariffs stoked recession fears, while gold hit a record high. Read here.
Euronews: Investors shift focus from US to Europe.
Investors are rotating from US to European equities, spurred by Germany's fiscal stimulus and defence growth. Read here.
City AM: London fintech closes gap on NY.
London's fintech firms are narrowing the gap with New York, boosted by fiscal policies, growth, and innovation. Read here.
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