Markets rally after the US does a trade deal with the UK that keeps the 10% baseline tariff on most imports. The Bank of England cuts rates, but hawkishly. And exports from Taiwan and Vietnam jumped unexpectedly in April after US importers front-loaded shipments as soon as the 90-day US tariff pause started.
In our bonus Deep Dive interview, ANZ Economist Dhiraj Nim looks at how the China-plus-one diversification strategy has affected regional Foreign Direct Investment flows in surprising ways.
5 things to know in 5 minutes:
US stocks and the US dollar rose after the US did its first trade deal with the UK. The 10% baseline tariff on UK imports is staying for most imports, with a few exceptions, including steel exports to the US and UK imports of US ethanol. But Britain has cut its tariffs to an average of 1.8% from 5.1% and it’s opening up access to US beef. ANZ’s Head of G3 Economics Bansi Madhanvani says the deal sets a bit of a template.
The Bank of England cut its key interest rate by 25 basis points to 4.25% overnight, as expected, but it was a much closer vote than was expected, says Bansi.
Malaysia’s central bank kept its key policy rate on hold at 3% yesterday, as expected. ANZ Economist Arindam Chakraborty expects a rate cut in the third quarter of 2025.
Exports from Taiwan surged 30% in April from a year ago, well above expectations for a 16% rise. ANZ Head of Asia Research Khoon Goh says the monthly total of $49.7 billion US dollars-worth of exports was the second highest month on record.
Vietnam also saw a boost to exports in April, reflecting front-loading after the 90-day pause in reciprocal US tariffs, says ANZ FX Analyst Kausani Basak. Data this week showed exports up 19.8% from a year ago, versus expectations for 12%.
Cheers,
Bernard
PS: Catch you next week with a look at how China’s exports and inflation performed during April.
