Investors seek ‘pain point’ that pushes Donald Trump into policy pivots on Iran war

Also in today’s newsletter, Scott Bessent discussed ways to recast ties between Fed and Treasury in BoE’s image

Starmer and Trump discuss need to reopen Hormuz Strait

No 10 says the leaders agree reopening the shipping lane is key to ensuring energy market stability.
LBC

Bank of England governor calls for Strait of Hormuz to reopen as he dashes hopes of imminent interest rate cut

It comes after the BOE announced it would hold interest rates at 3.75% amid fears the US-Israel war on Iran could see inflation rise

Scott Bessent praises Bank of England as model for tighter oversight of Federal Reserve

Scott Bessent discussed tightening the US Treasury’s oversight of the Federal Reserve by adopting elements of the Bank of England’s model in a step that would shake up the cen

What is ‘Trumpflation’ - and why it’s forcing the Bank of England to rethink rates

The term "Trumpflation" describes inflation influenced by geopolitical tensions, specifically linked to Donald Trump's policies, particularly in the Middle East.

Pound recovers ground against dollar amid mounting expectations of Bank of England rate increase

The pound fell against the dollar on Monday before regaining some ground in the afternoon, with traders shifting their bets to a forecast of interest rate hikes as a result of the situation in the Middle East.