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-0.000378501135503466 -0.000378501135503466 0.000378501135503331 0.000757002271006797 0.000757002271006797 0.000757002271006797 0.000757002271006797 0.000757002271006797
Stock impact report

U.S. Tariffs Could Erode U.K. Fiscal Headroom, Hitting Sterling [Yahoo! Finance]

Mitsubishi UFJ Financial Group, Inc. (MUFG) 
Company Research Source: Yahoo! Finance
Trump could unveil a 20% levy on most U.S. imports in an announcement at 1600 ET, they say. This would likely eliminate all of the U.K.'s fiscal headroom of 9.9 billion pounds before accounting for the recent rise in U.K. government-bond yields. Treasury chief Rachel Reeves could be left with another fiscal black hole to fill in the autumn budget. That could weigh on sterling “over and above what would be expected from just the direct impact of tariffs.” Sterling rises 0.1% to $1.2939. The euro falls 0.1% to 0.8344 pounds. ( renae.dyer@wsj.com 1039 GMT – The dollar could recover in coming months if the Federal Reserve pauses interest rate cuts for longer than markets expect, MUFG Bank's Derek Halpenny says in a note. Market pricing implies a high degree of confidence that the Fed will cut rates in June but it's questionable whether it has enough evidence that U.S. tariffs will only have a temporary impact on inflation, he says. The ISM manufacturing report on Tuesday showed a deteri Show less Read more
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