Can the United Kingdom’s trade arise triumphs?: Newsletter from CNBC’s UK Exchange

This report is from the United Kingdom exchange bulletin this week. How do you see? You can subscribe here.

Donald Trump is the first president of the United States to have been honored with two state visits, something that was not even granted to Bill Clinton, George W. Bush or Ronald Reagan, all the presidents of two periods that enjoyed warm relationships with the British prime minister of the time.

This honor reflects the opportunity offered by his visit to deepen commercial and commercial ties between the United States and the United Kingdom, which he received remarkably more Trump indulgent treatment when, in April, he unleashed his “day of liberation” tariffs in the world.

The United Kingdom frequently exploits the soft power of the monarchy to offer state visits to countries with which they want deeper commercial ties.

The late Queen Elizabeth II organized numerous heads of state, including Xi Jinping of China, Vladimir Putin de Russia, several Saudi kings and several French presidents. In his three years on the throne, King Carlos III has already hosted the South African, French and South Korean presidents, the Japanese emperor and Qatar’s emir.

So, the “Diplomacy of Tiara” is not new. It is only that, with the economy of the stagnant United Kingdom, it seems that it is more in this particular visit.

It helps Trump, whose mother was born in Scotland, loves the United Kingdom, something that could not be said about Joe Biden or Barack Obama, his two immediate predecessors.

This presents a unique opportunity to win the favor with Trump when trade and diplomacy revolve around the president of the United States in a way that they have not done for decades.

The commercial and investment element of state visits has increased in recent times.

The state visit of XI in October 2015 saw about £ 40 billion ($ 55 billion) in signed commercial agreements, and the Chinese president attended an investment summit in Mansion House in the city with the then Prime Minister David Cameron.

The couple also visited the plow in Cadsden in Buckinghamshire, a pub near Checkers, the country’s residence of the British prime ministers, where Xi wanted a pint of Greene King IPA (Indian Pale Ale).

Since then, the pub has become a magnet for Chinese tourists, while Greene King was acquired by £ 4.6 billion in 2019 by CK Asset Holdings, founded by Li Ka-Shing, the richest man in Hong Kong.

Sometimes, visits are more to support British investment in other places, such as in 2016, when the Queen received Colombian President Juan Manuel Santos de Calderón.

Although there were signed agreements to reduce the fiscal burden of companies that invest in the two countries, the central element was the announcement of £ 1 billion in export financing to support British companies involved in energy and medical care projects in the Latin American country.

Occasionally, however, trade and investment are the second to diplomacy.

The state visit of French president Emmanuel Macron in July of this year, the first of an EU political leader from Brexit (the king and queen of the Netherlands visited in 2018), was an attempt to repair relations after the French president was antagonized by former prime ministers Boris Johnson and Liz Truss, the latter even publicly speculating if Macron was a “friend or” friend or ” Britain

However, this visit has to do with trade and, appropriately, given Trump’s love for describing the events in which he is involved as the “greatest and best”, seems to be huge in terms of offers.

The weekend, it arose that Nvidia And OpenAI will announce a multimillion -dollar joint investment in a data center project in Blyth, Northumberland, which has already been launched by Quality Technology Services, a data center company owned by the private capital giant Blackstone.

The CEO of Nvidia, Jensen Huang, the CEO of Openai, Sam Altman and Stephen Schwarzman, the founder and executive director of Blackstone, are accompanying the president to the state banquet in Windsor Castle.

It is said that other guests include Tim Cook, Executive Director of Apple, and Larry Fink, founder and executive director of Blackrock, the asset management giant, which is expected to announce an investment of $ 700 million in the United Kingdom data centers.

These data centers will require a lot of energy and, for that purpose, an agreement between the two governments will be signed, allowing companies to build new nuclear power plants in both countries more quickly.

These include X-Energy plans, the nuclear reactor and the fuel design engineer based in Maryland and Centrica, the father of British Gas, to build up to 12 advanced modular reactors in Hartlepool, Durham County, in the Northeast of England. I could also provide an opportunity for Great Britain Rolls-Roycewhich plans to build small modular reactors at home, to do it in the US.

And the ads have continued arriving. On Monday he contributed news that Blackstone will double his investment of £ 100 billion in the United Kingdom during the next decade, while yesterday he saw Google announce an investment of £ 5 billion that will open his first data center in the United Kingdom and expand Deepmind, his artificial intelligence arm based in London, creating more than 8,000 jobs.

The Grand Prize for the United Kingdom is to establish some type of “sovereignty of AI”, something that Huang identified as a lack of chat next to the fire with Prime Minister Keir Starmer in London Tech Week in June. This is also consistent with the ambition of the Trump administration to sell “packages” of American to allies such as the United Kingdom and South Korea as a counterweight to similar offers from China around the AI ​​infrastructure.

Ironically, much of the sword work for these agreements was carried out by Peter Mandelson, who was fired last week as British ambassador to the United States for his previous links with the financial dishonor Jeffrey Epstein.

Any Epstein mention this week, particularly in press conferences organized by Trump and Starmer, will be unbearable, and a reminder of how these sensitive diplomatic occasions can be counterproductive.

The most notorious, in 1978, saw the late queen hide behind a bush in the gardens of the Buckingham Palace to avoid Nicolae Ceaușescu, since he had already eliminated anything that the Romanian dictator could steal from his room after a warning of Giscard d’Esting, the then French president.

There is also an apocryphal story of a state visit in which, during an open carriage procession, the queen apologized to her guest after one of her horses broke out loud.

The guest, some say that he was the Nigerian leader Yakubu Gowon in 1973, others, the French president, Jacques Chirac in 1996, it is said that he replied: “Do not worry, Madam, I thought it was one of the horses.”

One expects the king’s horses to be less flatulent this week.

– Ian King

CNBC Arjun Kharpal informs about the potential result of Trump’s United Kingdom visit with technology CEO.

The United Kingdom is falling with a great pharmacy on the price of drugs. CNBC Ritika Gupta analyzes the issues with Jimmy Muchchetere, health and industrial capital research analyst at Investte.

Anthony Gardner, former United States ambassador to Obama, discusses Trump’s second state visit to the United Kingdom, including the United Kingdom’s commercial conversations, nuclear agreements and the Russian invasion ongoing Ukraine.

– Holly Ellyatt

The actions of the United Kingdom have been negotiating near the historical maximums. During the past week, the Ftse 100 He has yielded some of his profits to fall around 0.5%.

Meanwhile, Pound sterling It has strengthened against the US dollar in the last seven days of consecutive negotiation, winning 1.7% against the backback.

In another part of the United Kingdom government bond market, the 10 years old yield I was quoting approximately 4 basic points higher than last week with 4.65%, but significantly below 4.8% reached in early September.

September 17: United Kingdom inflation data for August

September 18: Rate decision of the Bank of England

September 19: GFK consumer confidence data

– Holly Ellyatt