Good morning, and welcome to our ongoing coverage of the global economy, financial markets, the eurozone and the economy.
Donald Trump has broken off a trade war in a dramatic turn that could have destabilized the world economy and injured growth
Overnight, the US President reached "fundamental agreements" with Argentina, Australia and Brazil to keep them from the beginning steel and aluminum tariffs announced this year.
And what could be a narrow one? When the US government escaped the British steel industry, the US government postponed the decision to ban tariffs on EU imports for a month.
At the last minute, the White House announced that it had Trump's time on The Apprentice: 19659008] …. has reached agreements with Argentina, Australia and Brazil on steel and aluminum, the details of which will be finalized shortly.
The administration is also expanding the negotiations with Canada, Mexico and the European Union for the last 30 days.
The decision came only hours before 25% of the punishment for steel imports to America and 15% for aluminum came into force.
Our Washington correspondent David Smith explains that Trump's decision is delaying a trade war with Europe – at least for weeks to come
Trump, who ran on a nationalist America First Agenda, claims that tariffs are necessary to protect US metal producers from unfair competition and increased national security in the midst of global oversupply of steel and aluminum
At a joint news conference with Merkel in the White House, the president said last week, "We need a mutual relationship that we do not have … We are working on it and we want to make it fairer and the chancellor wants make it fairer. "
But the move threatens to trigger a trade war that could lead to turmoil in financial markets." The EU – which is the largest US trading partner – has warned that if they charge tariffs totaling 6.4 billion ($ 7.7 billion) of metals exported annually to the US, with their own customs duties, will be worth € 2.8 billion (US $ 3.4 billion) of valuable US goods imported into Europe including Harley-Davidson Motorcycles, Levi's Jeans, and Kentucky Bourbon.
We'll track the move today.
Markit publishes its health check for UK manufacturing sector Business in April may show that growth has slowed in the past month.
In the city, the oil giant BP just made a profit jump of 71% thanks to rising crude oil prices -Away order chain Just Eat also reports results – with a 49% increase in sales in the first three months of 2018.
Drama could occur at the annual general meeting in Barclays; Corporate raider Ed Bramson may turn up and demand that the bank be shaken.
We also track all the developments of the Sainsbury-Asda merger, which took an unusual turn last night when Sainsbury CEO Mike Coupe was caught singing in front of the camera.
It's a remarkable faux pas, especially in the face of fears that the deal will hurt suppliers and cost jobs.
Here is the agenda
- 9.30 am BST: manufacturing PMI for April
- 10 am BST: Hearing of the Financial Committee on Digital Currencies