The NASDAQ (in yellow) has been massively decoupling from the FED balance sheet (in purple)
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Source: Mike Zaccardi, CFA, CMT, MBA
Calling the trial of former Brazilian president Jair Bolsonaro a “witch hunt.” Responding to criticism from President Trump, Brazil’s president said: “We don’t want an emperor.” Donald Trump said Brazil would be subject to US tariffs of 50 per cent on its goods, accusing the country of treating former president Jair Bolsonaro unfairly. In the eighth letter published to social media on Wednesday, Trump said Bolsonaro was a “Highly Respected Leader throughout the world during his Term.” “This Trial should not be taking place. It is a Witch Hunt that should end IMMEDIATELY!” Trump wrote. He added that the tariff would be applied “in part” because of Brazil’s “insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans.” Bolsonaro is on trial over an alleged coup plot, which prosecutors say aimed to keep him in power after losing an election in 2022. Brazil was previously facing a tariff of 10 per cent. Source: FT
Bilateral Leverage and Trade Balance: The UK, as a single nation, has less negotiating power than the EU, a bloc of 27 countries with a larger collective market. The US can secure concessions more easily from the UK. Additionally, the US runs a trade surplus with the UK (e.g., $25.9 billion in goods in 2024), while it has a significant trade deficit with the EU (e.g., $209 billion in 2024). Lower UK tariffs align with maintaining favorable trade dynamics, while higher EU tariffs aim to address the deficit. Post-Brexit Alignment: Since Brexit, the UK has sought closer ties with the US to offset its reduced EU market access. The US leverages this to secure a favorable deal, offering exemptions (e.g., auto, aerospace) and lower tariffs (e.g., 10% baseline vs. EU’s potential 20-50%). The UK’s flexibility, unbound by EU regulations, allows quicker agreement on US priorities like digital trade and agriculture. Geopolitical Strategy: The US views the UK as a key ally in countering EU influence and promoting a US-led trade framework. Lower tariffs strengthen the US-UK “special relationship,” especially in defense and intelligence (e.g., AUKUS), while higher EU tariffs pressure the EU to concede on issues like steel and digital services taxes. Source: SuperGrok