Barclays Leadership sounding the alarm over potential decrease in business transactions and loans, attributed to Trump's tariffs.
Downturn Looting Barclays' Pockets as Donald Trump's Tariffs Cause Chaos
Barclays feels the brunt of slowed dealmaking and lending due to the confusion stirred up by Donald Trump's tariffs, notching a solid Q1 profit increase instead. The bank revels in spirited trading activity as the unpredictable trade policies of the US President send shockwaves through international markets.
This unexpected trading surge more than makes up for the hit to Barclays Investment Bank's dealmaking delays. The bank manages to report a considerable 19% profit surge to £2.7 billion in Q1, outpacing analysts' predictions of £2.5 billion.
The UK arm's profitability forecast brightens with a resilient performance from mortgage lending and spending card operations. However, Barclays' CEO, CS Venkatakrishnan (henceforth known as Venkat), hints at possible future turmoil.
Revenue from the bank's markets trading arm could maintain its boost due to ongoing market turbulence, according to Venkat. He stated, "With all this turmoil, it's only natural for parties to hesitate and evaluate their decisions carefully—for their financing endeavors and M&A activities—to find some clarity." He further predicts that until such clarity emerges, people will be extra cautious.
Barclays allocated additional funds to shield against loans that might sour amid the trade conflict. Provisions for foul loans escalated to £643 million from £513 million last year, primarily because of £74 million earmarked for 'elevated US macroeconomic uncertainty'.
On the day preceding this announcement, rival HSBC stated that Trump's tariffs were inciting a "shift" in the global economy.
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- Despite the turbulent macroeconomic conditions caused by Donald Trump's tariffs, Barclays reported a significant 19% profit surge in Q1, reaching £2.7 billion, thanks in part to a rise in trading activity.
- Barclays' CEO, CS Venkatakrishnan, anticipates that the revenue from the bank's markets trading arm will further benefit from continued market turbulence, due to parties being more cautious with their financing endeavors and M&A activities.
- In preparation for potential loan defaults amid the trade conflict, Barclays has set aside additional funds, with £74 million allocated specifically for 'elevated US macroeconomic uncertainty'.
- The DIY investing platforms AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 offer comparisons for investors to find the best account for their needs.
- In light of Trump's tariffs causing disruptions in the auto industry, Aston Martin has reduced U.S. exports, leading some to ponder whether this represents a deeper problem for the industry.
