UK's Special Relationship with US Faces Challenges Amid Tariff Threats
Written by Emily J. Thompson, Senior Investment Analyst
Source: CNBC
- Trump's Threat: Trump accused the UK of showing 'great stupidity and total weakness' in ceding sovereignty of the Chagos Islands to Mauritius, which has strained the special relationship and could impact future diplomatic interactions.
- Tariff Risks: Prime Minister Starmer emphasized he does not support retaliatory tariffs in response to Trump's threats against eight European countries, highlighting the importance of maintaining ties with the US, despite potential domestic criticism.
- Economic Dependence: In 2024, UK goods exports to the US totaled $68.2 billion, with the automotive sector alone accounting for £10 billion ($13.4 billion), underscoring the UK's significant economic reliance on the US market.
- Market Reaction: Following Trump's remarks, investors began selling off US assets in favor of safe-haven investments like gold, reflecting market anxiety over future trade relations and the potential for a slowdown in UK economic growth.
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Analyst Views on PWP
Wall Street analysts forecast PWP stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PWP is 20.00 USD with a low forecast of 20.00 USD and a high forecast of 20.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 22.530
Low
20.00
Averages
20.00
High
20.00
Current: 22.530
Low
20.00
Averages
20.00
High
20.00
About PWP
Perella Weinberg Partners is an independent advisory company that provides strategic and financial advice to clients across active industry sectors and international markets. Its single business segment is to provide advisory services, including advice related to strategic and financial decisions, mergers and acquisitions execution, shareholder engagement advisory, financing and capital solutions advice, with a focus on restructuring and liability management, capital markets advisory, and private capital placement, as well as specialized underwriting and research services for the energy and related industries. Its range of global clients includes large public multinational corporations, mid-sized public and private companies, financial sponsors, individual entrepreneurs, private and institutional investors, creditor committees and government institutions. Its areas of industry focus include consumer and retail, energy & energy transition, financial services & fintech, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
UK Prime Minister Starmer's Visit to China Aims to Reset Relations
- Trade Relationship Review: In 2015, then-Chancellor Osborne predicted UK exports to China would exceed £30 billion, yet actual exports in 2020 were only £14.5 billion, a 39% drop from 2019, highlighting the significant impact of Brexit and the pandemic on trade.
- High-Level Visit Context: Starmer's trip marks the first visit by a UK Prime Minister since Theresa May eight years ago, aiming to reset relations with China and attract more investment to support the UK's economic recovery.
- Business Delegation Participation: Accompanying Starmer are executives from top UK firms like BP, Rolls-Royce, and AstraZeneca, underscoring the government's commitment to strengthening economic ties with China, particularly in the green energy sector.
- Human Rights Issues Addressed: Starmer is expected to raise human rights concerns with Xi, including the case of imprisoned Hong Kong businessman Jimmy Lai, indicating that while seeking to reset relations, the UK government remains attentive to moral and security issues with China.
Continue Reading
UK's Special Relationship with US Faces Challenges Amid Tariff Threats
- Trump's Threat: Trump accused the UK of showing 'great stupidity and total weakness' in ceding sovereignty of the Chagos Islands to Mauritius, which has strained the special relationship and could impact future diplomatic interactions.
- Tariff Risks: Prime Minister Starmer emphasized he does not support retaliatory tariffs in response to Trump's threats against eight European countries, highlighting the importance of maintaining ties with the US, despite potential domestic criticism.
- Economic Dependence: In 2024, UK goods exports to the US totaled $68.2 billion, with the automotive sector alone accounting for £10 billion ($13.4 billion), underscoring the UK's significant economic reliance on the US market.
- Market Reaction: Following Trump's remarks, investors began selling off US assets in favor of safe-haven investments like gold, reflecting market anxiety over future trade relations and the potential for a slowdown in UK economic growth.
Continue Reading