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UK-US trade deal announcement – Bank of England to cut interest rates – Arsenal out of Champions League

It’s trade deals galore for the prime minister after yesterday’s announcement that Britain had signed a trade deal with India, the prime minister is set to announce a UK-US trade deal later today. The news is a huge win for both Keir Starmer and Rachel Reeves who have been under pressure since taking office over the handling of the economy! 

Experts are suggesting that the devil is in the details – and it’s likely to be more of a temporary pause on some tariffs rather than a long-term trade agreement. But still, with the world queuing up for a trade deal, getting in their first will no doubt be a boost for the PM and his struggling government. 

The Bank of England is expected to cut interest rates today but investors will be keeping an eye on any suggestions that the Bank will project a faster pace of cuts. 

On the international front, there’s further coverage of the India-Pakistan situation with tensions high in the regions and global leaders calling for a de-escalation. 

In sports, England’s last team in the Champions League, Arsenal were knocked out in the semifinals by PSG – who will face Inter Milan in the final. 

UK-US trade deal to be announced today - expected to see tariffs reduced 

UK-US trade deal to be announced today – ‘a major win for Reeves and Starmer’

CliffNotes

  • UK-US trade deal to be announced later today
  • Deal expected to include reduction on tariffs
  • Experts believe the deal will be a short term pause on tariffs not long term solution

UK-US trade deal to be announced today

What Happened 

A UK-US trade deal is expected to be announced today, which will see tariffs reduced. 

Currently, most goods imported to the US from the UK face a 10% tariff with higher rates on steel, aluminium, and cars. The UK also charges tariffs on some US goods. 

The UK has been seeking a deal to lower the tariffs that US President Donald Trump introduced on almost every country last month – what the president dubbed ‘Liberation Day.’ 

Last night Trump posted on social media: “Big News Conference tomorrow morning at 10:00 A.M., The Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!”

Perspective 

Though Trump has labelled it a “trade deal” it’s much more likely to be limited – and more of a specific deal to reduce tariffs on specific things. 

Britain will want a reduction of tariffs on British steel and cars, whilst the US will want something on pharmaceuticals and technology. 

A former member of the Bank of England’s Monetary Policy Committee says people shouldn’t expect too much today – as Donald Trump talked of a “trade deal” instead of a “trade agreement”.

“There’s a big difference between a trade deal and a trade agreement,” Jonathan Haskel tells BBC Radio 4’s Today programme.

“Trade deals are limited and short-term and partial, just covering a few items. Trade agreements are broad-based and long-term.”

He says the deal could just be a commitment to a “short-term change of policy” – for example, a pause in certain tariffs.

What Next

We won’t know too much until the official announcement.

Downing Street has confirmed the prime minister will make an announcement about the US-UK deal on tariffs “later today.” 

A No 10 spokesperson says the US is an “indispensable ally for both our economic and national security” and “talks on a deal between our countries have been continuing at pace”.

“The prime minister will update later today,” they add.

Reaction From The Media

  • The Guardian says Donald Trump is expected to announce the “framework of a trade agreement” with the UK, according to two people familiar with the matter, after teasing a major announcement with a “big and highly respected, country.”
  • Sky’s deputy political editor Sam Coates says he understands a “heads of terms” agreement, essentially a preliminary arrangement, has been agreed which is a “substantive” step towards a full deal.
  • CNBC says Britain, which runs a trade deficit with the U.S., was spared the higher “reciprocal” tariffs when Trump announced his “Liberation Day” duties, although it was still hit with the baseline 10% levy.
  • The Spectator says the announcement will come at 3 p.m. UK time and could be worth billions in what would be an “unarguable win for Rachel Reeves and Keir Starmer.”


Tensions high amid India and Pakistan deadly strikes 

CliffNotes

  • India and Pakistan deadly strikes kill 31 in Pakistan, 15 killed in India
  • India hit first blaming Pakistan for a deadly attack on tourists last month
  • India and Pakistan leaders mulling over what to do next

Tensions high amid India and Pakistan deadly strikes 

What Happened 

India and Pakistan’s deadly strikes have left tensions high in the region as the leaders of both countries decide what their next move should be. 

India struck first, they claim that the attack on Pakistan was in response to the killing of 26 people – mostly Indian tourists – who died in April when gunmen opened fire at t popular tourist spot in the India-administered part of Kashmir. India has blamed Pakistan for the attack, which Islamabad denies. 

Dehli says it struck nine sites, whilst Pakistan said six locations were hit. Pakistan also claims it shot down five Indian jets and a drone, something India has not confirmed. 

Pakistan said 31 people have been killed and at least 57 injured due to India’s attack. At least 15 people were killed in India due to Pakistan’s retaliatory strikes. 

What Next

The Indian government is holding an all-party meeting to brief political leaders on the strike and has said if Pakistan strikes again they will respond. 

Globally, everyone is nervous and has urged both sides to de-escalate. 

Previous wars between the two countries have been bloody and although recent clashes have not exploded into an all-out war, both countries have strengthened their military and hold nuclear weapons. An all-out war would be devastating. 

Reaction From The Media 

  • The Guardian says both Pakistan and India are on “high alert” as airports are shut down and security drills are underway in major cities. 
  • CNN says the pair are on the “brink of a wider conflict” and says world leaders are calling on both sides to de-escalate saying the strikes have raised the global alarm. 
  • CNBC says with tensions rising between India and Pakistan, China is benefiting as its defence stocks started to surge after Pakistan used China-made weapons to shoot down Indian jets. 
  • The Economist claims that all signs suggest the pair will de-escalate and back off a full-scale war but notes that the reason is mainly due to “luck” and the relations between the two are “increasingly unstable and dangerous.”

Bank of England expected to cut interest rates

CliffNotes

  • Bank of England expected to cut interest rates on Thursday
  • It would be the fourth rate cut since last year’s peak of 5.25%
  • Inflation sits at 2.6% – just above the bank’s 2% target

Bank of England expected to cut interest rates

What Happened

The Bank of England is expected to cut interest rates on Thursday, likely lowering them from 4.5% to 4.25%. This would be the fourth rate cut since last year’s peak of 5.25%, and the second in 2025, as the Bank aims to stimulate borrowing and ease financial pressure on households and businesses.

This decision comes as inflation sits at 2.6%, slightly above the Bank’s 2% target, but with recent price hikes—such as rising energy bills—adding uncertainty.

The Bank’s Monetary Policy Committee must weigh these domestic pressures against a backdrop of global economic instability, including recent trade tensions in the US.

Perspective

A cut in interest rates by the Bank of England means borrowing becomes cheaper—good news for those with mortgages, loans, or credit card debt, as monthly payments may drop. However, it’s a mixed bag for savers, who might see lower returns on their savings accounts. Overall, the move is designed to ease financial pressure, encourage spending, and support the wider economy during uncertain times.

What Next

If Thursday’s cut is confirmed, analysts expect more to follow in the coming months to support growth and bring inflation under control. Lower rates would make loans and mortgages cheaper, though they could also reduce returns on savings.

The committee will continue to monitor inflation trends and global economic signals closely. With economic headwinds from overseas and at home, including unpredictable trade policies, further rate adjustments remain firmly on the table.

Reactions From The Media

  • Money Week says markets and economists are confident that the Bank of England will cut interest rates by at least 25 basis points on 8 May, as growth fears ramp up
  • FT says the Bank of England will cut rates and will signal further reductions amid uncertainty “as the uncertainty unleashed by US President Donald Trump’s global trade war hits growth.”
  • City AM says City of London leaders are “anxiously awaiting” the Bank’s newest monetary policy decision, suggesting investors will be looking for any suggestions that the Bank will project a faster pace of cuts.

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