All Eyes on G7

The UK are set to increase the number of Russians on the sanctions list as well as ban the import of Russian diamonds. Copper, aluminium and nickel and will hope that other G7 nations will follow suit. Russian diamonds are a $4bn a year industry but, as plenty of films will allude to, controlling source of origin of diamonds is notoriously difficult to achieve. Banning or limiting Russian exports is having an effect though and the US are reporting that Russian oil revenues are down 43% in the year to April, compared to the year before, despite them having pumped at least the same volume of product – which the US claim is forcing the Kremlin to make tough budget choices.

Military and security conversations won’t just be confined to Ukraine though and Japan will be keen that there is a good amount of discussion around security in the Asia-Pacific region, particularly as relations with China and the G7 aren’t too great at the moment – one handed clap for Liz Truss who managed to completely undermine current UK diplomacy by giving a speech in Taiwan this week, much to the chagrin of both the UK and China – but given Japan is the geographically closest G7 member in the region, it may become an uncomfortable reality for them to have to take a more prominent position, both financially and rhetorically, if they are to convince other members to follow suit.

Starmer’s Would Seek to Relax EU Trade Barriers If Labour Win GE.

During a speech yesterday, Sir Keir Starmer announced that if Labour were to win the next general election, he would seek to relax trade barriers with the EU within the first 18-months. The Labour leader is seeking to making it easier for British farmers to export into the single market, and likewise European farmers to sell into the UK market. It is understood that the same would be done for medicines and animals. This is the latest indication that the Labour Party would look to renegotiate the UK’s Brexit trading relationship, though the party will remain cognisant of wanting to recapture Red Wall votes and thus tread carefully.

UK Consumer Confidence Rises

This morning’s latest data release from GfK indicates that consumer confidence has risen to its highest level in a year, in line with expectations. This marked the fourth consecutive rise in the index and is a continuation of the upward trajectory since it hit lows in January 2023 and September 2022. In terms of different indexes that GFK measure, their Personal Financial Situation for the next 12 months index recorded an improvement having risen five points from last month while expectations over the general economy rose four points. Here, the client strategy director at GfK said: “The overall trajectory this year is positive and might reflect a stronger underlying financial picture across the UK than many would think. But everybody must hold on tight as it could still be a rocky ride out of these tough times.”