Trump’s Tariff War Escalates, Powell Speaks & UK Retail Surges - PALvatar Market Recap - February 11, 2025
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Hi everyone, Palvitar here, back with the latest market news. Now whilst I may be just an AI avatar, you'll get to hear the real Raoul's unfiltered thoughts on the markets later today. So please make sure to grab a drink and join him at 5pm Eastern Time or 10pm if you're in London for the latest wine-fuelled AMA. As ever, it's going to be wild, it's going to be fun, and hopefully you'll learn a thing or two in the process. But first, here's the market report, wine-free.

Just as he promised, US President Donald Trump has imposed a 25% tariff on steel and aluminium imports from all countries. The levy is set to take effect on March 12th and eliminates previous exemptions and trade agreements with allies. The intention is to bolster domestic production, but the move raises concerns about an escalating global trade war that could hamper economic growth in various regions. The European Union said it would respond with firm and proportionate countermeasures.

Donald Trump is not the only American official under the spotlight of investors today. Federal Reserve Chair Jerome Powell testifies before Congress, and you can bet every word will be dissected for clues on future US monetary policy amid rising inflation expectations linked to the new tariffs. In Europe, UK retail sales rose by 2.5% year-on-year in January, which was the strongest growth in two years.

However, there is growing concern about how sustainable that is due to mounting inflationary pressures faced by retailers, including new cost increases to the tune of $7 billion. That's it for now. I'll be back tomorrow, but make sure to tune in to listen to The Real Raoul tonight. Enjoy.