Your Monday morning coffee briefing from TFG. Here are some of the last week’s updates from the trade sector. Boris Johnson is the new PM and Liz Truss is the new International Trade Secretary. Flexport launched new trade finance solution to help companies overcome the capital constraints resulting from the trade wars. The US economic growth slows in the Q2 and the Euro Zone prepares for interest rates cuts in September.
What happened last week?
Boris Johnson is the UK’s new PM
Johnson defeats Hunt with 92 152 votes to 46 656. With only 100 days left until the current Brexit deadline, he has a lot of work ahead of him if he is going to make Brexit a success. Boris Johnson’s first job upon arrival in Downing Street must be to go beyond warm words and take immediate, tangible steps to boost the confidence of UK businesses and consumers. Read more →
Liz Truss replaces Dr Liam Fox as International Trade Secretary for the UK
Liz Truss’ s arrival won’t really change the job Liam Fox had done since May established DIT in 2016 – though many MPs will hope his successor speeds up the process of agreeing the trade deals with third countries, particularly the US. Read more →
Flexport launches trade finance solution
The solution will help companies alleviate capital constraints caused by the US-China tariffs. The forwarder said that more than 60% of its shipper clients have had products affected by the tariff increases and that the average landed unit cost has increased by around 30%. Read more →
US economic growth slows in the second quarter as trade disputes take a toll
But the decline was less than expected – thanks to a consumer spending spree – and the report showed signs that there is continuing momentum in the US’s decade-long economic expansion, albeit at a slowing pace. Read more →
FSB launches a new Going Global campaign
The campaign is showcasing the best small UK exporters and encouraging more business owners to seek opportunities overseas. One in five small UK businesses export, but this proportion could be doubled with the right support, including export vouchers and tax credits. Read more →
UK Challenger Bank Wyelands Raises Questions over ties with GFG Alliance
A bank acquired by the metals magnate Sanjeev Gupta has extensive links with his family’s wider business empire. The acquisition has turned what was a commodities trading house into an industrial behemoth with $20bn in annual revenues, but it has also led to questions around GFG’s funding. Read more →
The Euro Zone prepares for interest rate cuts
Mario Draghi said the growth outlook was “getting worse and worse” and that fiscal measures would be “of the essence”. He was speaking as the bank left rates and quantitative easing unchanged but signalled that more easing was likely as soon as September. Read more →
