US election: Donald Trump win 'could mean higher petrol and energy prices' for Brits

Donald Trump contiguous declared helium had won a 'magnificent triumph for the American people' arsenic helium appeared connected people to instrumentality to the White House

An economist has warned Brits could beryllium deed by higher petrol and vigor costs present Donald Trump looks acceptable to triumph the United States Presidential election.

Trump contiguous declared helium had won a "magnificent triumph for the American people" arsenic helium appeared connected people to instrumentality to the White House arsenic 47th President of the United States. But his triumph could besides person wider implications for radical surviving extracurricular the US.

John Hardy, main macro-strategist astatine concern level Saxo, said Trump is apt to beryllium pugnacious connected Iran, which could past interaction the lipid marketplace and impact the UK and remainder of Europe. In September, the Trump run squad released a connection saying helium had been briefed by US quality astir threats from Iran to assassinate him.

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During his archetypal stint arsenic President, Trump reapplied sanctions connected Iran aft helium withdrew from a 2015 atomic pact. Iran has antecedently denied US claims of interfering successful US politics. Mr Hardy said: “The main interaction of a Trump presidency would beryllium successful the geopolitical arena. We can’t speculate connected however helium mightiness act, different than that helium volition apt beryllium tougher connected Iran judging from past behaviour.

“This is simply a precise murky area, particularly arsenic the US has go the world’s largest lipid and state shaper successful the past 10-15 years. From the US constituent of view, it is astir wholly self-reliant, arsenic is Canada. But lipid prices are highly important for the UK arsenic it has go acold much reliant connected imports since the declines successful North Sea lipid acceptable successful astir 25 years agone – truthful acold much is astatine involvement for the UK and Europe and particularly China, the world’s largest lipid importer.”

A triumph for Trump could besides interaction the UK pound, arsenic decisions made by the Federal Reserve - the US equivalent of the Bank of England - tin person power connected planetary markets. Sterling fell to adjacent 1.2850 against the US dollar successful aboriginal London trading hours today.

Mr Hardy said: "The terms of borrowing US dollars, the involvement rate, is the planetary terms for borrowing wealth and each different countries volition request to see however Fed decisions volition interaction their ain system via commercialized exposures to a US dollar that is going up and down arsenic good arsenic however their ain currency volition beryllium impacted.

“With a Trump win, the archetypal impulse would apt beryllium for the US dollar to fortify connected the anticipation of stimulative measures and the Fed could extremity up cutting less. Tariffs are USD affirmative and arsenic good arsenic the usage of the US dollar arsenic the planetary currency, this means that the satellite ever needs for the US to tally the tremendous deficits some commercialized and fund that it does. Higher tariffs would hazard the US exporting less US dollars."