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  • 📈 Trump Tariff Tantrum Shakes Global Markets

📈 Trump Tariff Tantrum Shakes Global Markets

February 03, 2025

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This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Trump Tariff Tantrum Shakes Global Markets

  • NatWest’s Bonus Blitz: £450m Payday Incoming!

  • Fintech Rebel Sokin Scores $15M Boost!

The summary: Even though Trump's tariff shenanigans have given markets from London to Hong Kong a proper jolt, investors are keeping calm with a cuppa in hand, convinced that our resilient British spirit will see sunnier economic skies ahead.

The details:

  • Trump’s latest tariff tantrum—targeting China, Canada, and Mexico—has sent global markets into a proper tizzy, sparking fears of a full-blown trade war.

  • European stock indices, from the FTSE to the DAX and CAC, took a rather steep nosedive, with carmakers and banks finding themselves in a rather pickle.

  • Asian markets were the first to flinch, setting off alarms on Wall Street as early futures forecast a gloomy February—talk about a damp squib.

  • Despite the gloomy market mood, a few voices suggest the UK economy might weather the storm better than its chums abroad—fingers crossed, with a spot of tea in hand.

Why it matters: Trump’s tariff shenanigans have rattled markets from London to Hong Kong, reminding everyone that global finance is as fragile as a fine piece of porcelain in the hands of a bull in a china shop. The plunge in European and Asian indices underscores how interconnected economies are, with any political misstep capable of sending ripples through everything from carmakers to banks. Ultimately, it’s a cheeky nudge for investors to keep their wits about them and their umbrellas at the ready, as economic forecasts might soon be as unpredictable as the British weather.

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The summary: NatWest’s long-awaited return to private hands sees taxpayers nursing a hefty loss, but with soaring profits, fat bonuses, and a CEO pay boost, the bank is striding confidently into its next chapter—just with BlackRock, not the public, calling the shots.

The details:

  • NatWest’s bonus bonanza – The bank is set to dish out a hefty £450m in bonuses, up 25% from last year, as it enjoys a stellar 2024 performance ahead of full privatisation. Not bad for a bank that was once on financial life support.

  • The Treasury’s grand exit – Once an 80%+ stakeholder, the government is now under 8% and shrinking fast, with BlackRock poised to take the top investor spot. A milestone moment in NatWest’s long journey back to private hands.

  • CEO’s golden handshake (and then some) – Boss Paul Thwaite is in line for a serious pay boost, with his max earnings potentially soaring to £6.6m a year. A nice little top-up as NatWest ditches its old bonus scheme in favour of performance-based rewards.

  • A bailout bargain (for the bank, not taxpayers) – Despite the recent resurgence, the government’s £45.5bn bailout will still leave taxpayers nursing a multi-billion-pound loss. At least the political bonus rows of the RBS era are a thing of the past… for now.

Why it matters: NatWest’s return to full private ownership marks the end of a 17-year taxpayer-funded saga, but with the government still set to lose billions, it’s hardly a financial fairy tale. Meanwhile, hefty bonuses and a bumper CEO pay rise show that, despite past scandals, City paydays remain as generous as ever—performance-linked or not. As BlackRock swoops in to take the top shareholder spot, the bank’s future is firmly in corporate hands, leaving the public to reflect on whether their bailout was a rescue mission or just an expensive detour.

The summary: With heavyweight backing, rapid growth, and a mission to make global payments effortless, Sokin is shaking up the fintech scene—much to the delight of businesses and Premier League clubs, and perhaps to the horror of old-school banks.

The details:

  • Sokin, the UK fintech making global payments seamless, has bagged a $15m debt funding boost from BlackRock-managed funds—just months after Morgan Stanley Expansion Capital joined the party with $31m.

  • The cash injection will fuel Sokin’s rapid expansion, with plans for new products, a beefed-up team, and fresh offices in London, New York, Toronto, and Dubai.

  • Boasting a $4.5bn annual transactional volume run-rate, Sokin helps everyone from freight firms to Premier League clubs move money quickly, efficiently, and without the usual financial faff.

  • Backed by big names—including ex-Man United star Rio Ferdinand—Sokin’s rise is being hailed as a game-changer in the global payments space.

Why it matters: When a fintech secures millions from heavyweights like BlackRock and Morgan Stanley, it’s a clear sign they’re onto something big—especially when Premier League clubs are already on board. With global payments still a minefield of fees and faff, Sokin’s promise of seamless, borderless transactions is music to the ears of businesses shifting billions. If they keep up this blistering growth, the old-school banking dinosaurs might just have to start sweating.