Trade friction caused by the Brexit deal has led to significant declines in UK trade volumes, according to a study by Aston University. Since the UK-EU Trade and Cooperation Agreement (TCA) came into effect in 2021, UK exports have dropped by 27%, and imports from the EU have fallen by 32%. Professor Jun Du, the study’s lead author, highlights that the TCA has introduced substantial barriers, resulting in a marked reduction in both the value and variety of UK trade. Without immediate policy changes, the UK’s economic position and global market standing could further deteriorate.
This report coincides with news of a potential delay in the full implementation of the EU’s new entry-exit system, which will introduce fingerprinting and facial recognition checks at ports and airports. The delay is due to concerns over possible congestion and long queues.
In related economic news, investor confidence in Germany has dropped to a near one-year low, signaling worsening economic conditions. In the US technology sector, Microsoft has announced a $60 billion share buyback program, while Apple may see lower-than-expected demand for its new iPhone models. Meta is implementing new “teen accounts” on Instagram to give parents more control over their children’s activities.
The S&P 500 has reached a new all-time intraday high and is set for its first record closing high since mid-July, driven by positive economic data including a rise in retail sales and manufacturing output. The Federal Reserve is expected to announce a cut in interest rates soon.
In the UK, Ed Miliband has pledged to counter opposition to the government’s expansion of wind turbines, solar farms, and pylons. The FTSE 100 has closed at a two-week high, ending 31 points higher at 8309, reflecting a 0.4% increase.