Wall Street cheers on US trade deal, but London won't add

British Prime Minister Keir Starmer spoke on the phone with U.S. President Donald Trump on the phone at a car factory in the West Midlands, UK on Thursday, May 8, 2025.

Alberto Pezzali | By Reuters

Britain was the first country to prompt joy with the United States. Investors certainly did it, giving the United States three main indexes back-to-back wins meetings. Strangely, sentiment throughout the Atlantic Ocean was not so optimistic: Britain's ftse 100 fell after the UK announced the deal.

To be sure, the UK has withdrawn some offers, such as its lower tariff rates for the first 100,000 cars, and has provided new discussions for U.S. President Donald Trump and a 25% universal tax on steel and aluminum imports.

That being said, the deal seems to be more favorable to the United States, at least based on other compromises allowed by the United Kingdom will retain a 10% tariff.

The United States has already operated a trade surplus with the United Kingdom, which means that it exports more to the country. Trump shot 10% tariffs in the UK on April 2, so those taxes have not been reduced despite a deal between the two countries.

"What we hear today is just the noise to most UK imports. That won't affect most products," Andy Abbott, CEO of Niche Ocean Biner Company Atlantic Container Line, told CNBC's Lori Ann Larocco.

According to the details available, Washington appears to have made a better deal.

What you need to know today

UK leads: reach an agreement with us
U.S. President Donald Trump listed an overview of his trade deal with the UK on Thursday. Many details about the deal are unclear, and nothing was signed during the Oval Office event. A White House profile said the U.S. would retain a 10% blanket tariff on British imports, which Trump said would be the ground for the tariffs. The freight CEO said the impact of the transaction could be limited.

Most market rallies are on trade transaction news
U.S. stock climbed Thursday in news of the freshly minted U.S.-UK agreement. this S&P 500 Increased by 0.58%, Dow Jones Industrial Average Obtained 0.62%, Nasdaq Composite Materials Advanced 1.07%, a wide range of technology stocks. Pan-European Stoxx 600 The index rose 0.4%. UK FTSE 100 It fell 0.32%, abandoning earlier gains as the country and the United States announced a trade deal and its central bank lowered interest rates.

UK Central Bank lowers fees
The Bank of England cut interest rates from 4.5% to 4.25% on Thursday. The cut is generally expected, especially after the price drop, with inflation cooling to 2.6% in March, down from 2.8% last month. Five of the nine BOE policymakers voted in favor of the cuts, two members hoped to reduce the 50 base, and two members wanted to put interest rates on hold.

Coinbase misses estimates as Bitcoin jumps
Common cases Stocks fell nearly 3% in expanded trading after reporting first-quarter revenue missed expectations. The company said consumer transaction volume fell 17% from the fourth quarter. On the same day, Bitcoin Prices have risen nearly 7% for the first time since February to more than $100,000, and a standard chartered analyst wrote that his tongue apologized that his goal for his $120,000 Bitcoin target is "probably too low."

The first pope in the United States is elected
Cardinal Robert Francis Prevost was elected as Pope on Thursday, the first time that Americans have been elected as Pope in Roman Catholic churches. Prevost, 69 chose the Pope name Leo Xiv. After the news, Trump congratulated the new pope, writing that in society of truth, Leo is the "first American pope" and is "a huge honor to our country."

(PRO) Trade Agreement is only temporarily stimulated?
Even as investors cheered the US-UK trade deal and sent stocks on Thursday, Josh Brown, CEO of CNBC Pro contributor Ritzoltz Wealth Management, is still maintaining expectations for a long market rebound, pointing to two defensive technology stocks as they perform more like consumers.

at last...

Bank of England Governor Andrew Bailey attended the Central Bank's monetary policy report press conference on May 8, 2025 at the Bank of England in the city of London.

Carlos Jasso | AFP | Getty Images

Why the Bank of England governor believes that despite the deal, uncertainty remains here

Bank of England Governor Andrew Bailey told CNBC Thursday that Britain is still moving forward despite the country being the first to sign a trade deal with the United States under President Donald Trump's controversial tariff regime.

"The tariffs and trade conditions inject more uncertainty," Bailey told CNBC in an interview. "In this sense, the UK's trade agreement is very welcome. But the UK is a very open economy."

He said this means that the impact of tariffs on the UK economy stems from not only trade relations with Washington, but also from the United States and other parts of the world.