Theresa May offered to help President Trump to prevent the West from being “eclipsed” by China, in a meeting the two leaders had last night. The U.K. Prime Minister also expressed her hopes for Britain to act as an economic ally to the US in her effort to secure new trade deals after the Brexit vote back in June. After Britain’s divorce from Europe, the PM now seeks to forge new trade deals with a number of nations. President Trump will also be looking forward to meeting Japanese Prime Minister Shinzo Abe in the White House next month. The president will seek quick progress toward a deal with Japan in place of the TPP. Also on the agenda, is president Trump’s phone conversation with Vladimir Putin. It should be noted however, that administration officials didn’t say whether the new U.S. president would bring up hacking or the fate of U.S. sanctions imposed on Russia.
Markets in Europe edged lower on Friday morning, after strong gains earlier this week, with investors digesting corporate earnings and fluctuations in currency markets. In today’s economic calendar, the markets also gearing for the U.S. preliminary Gross Domestic Product Price Index which is due to be released at 13:30 GMT. It should be noted that the GDP price index is considered a good indicator of inflationary pressure that may cause a rise in interest rates. A strong GDP price index is seen as a bullish signal for the USD. Analysts expect a strong reading for the fourth quarter!
In other news, the Italian bank UniCredit was down by more than 3 percent after Italian media reports, said its vice chairman confirmed the bank was not selling its stake in Mediobanca. The lender is also starting its capital increase earlier than planned, according to the reports.
Oil prices dipped today, with rising crude output from the United States offsetting efforts by OPEC and other producers to cut supplies and manage the ever increasing stock piles that have been threatening oil prices since early 2016. The ever increasing U.S. output has caused oil prices to dip with Brent crude futures, the international benchmark for oil prices, trading at $55.78 per barrel at 10:00 GMT and U.S. West Texas Intermediate (WTI) crude futures dropping 29 cents to $53.49 a barrel.