Good morning, and welcome to our ongoing coverage of business, financial markets, and the global economy.
Reports suggest that China is taking aim at the recent trade agreement between the UK and US, which may effectively push Chinese products out of British supply chains.
This trade deal, announced last Thursday, is the first one finalized under Donald Trump’s administration since the introduction of new tariffs last month. It includes stringent security measures for the UK’s steel and pharmaceutical sectors, possibly complicating London’s efforts to mend its relationship with Beijing.
China’s foreign ministry asserted that, fundamentally, trade agreements should not target or harm other nations. They emphasized this principle:
Cooperation between countries should not undermine the interests of third parties.
In other news, the UK’s competition regulator is examining Aviva’s proposed £3.7 billion acquisition of rival Direct Line to assess any potential competition issues.
The acquisition would merge the two companies’ UK insurance operations, which include various products like car and home insurance.
The Competition and Markets Authority (CMA) is looking into whether the merger could lead to a significant reduction in competition, with a 40-day period set for its review.
If the CMA’s initial review finds no issues, it could approve the deal. However, if concerns arise that warrant a more in-depth investigation, the companies may have the chance to propose solutions to address those issues.
Looking ahead:
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12:00pm BST: US MBA mortgage applications
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3:30pm BST: US EIA crude oil stocks
