Potential Winners from Trump's Visit to UK

The UK government announced around £150 billion in US investments in the wake of Trump's second state visit, with tech and AI at the forefront of deals.

The Latest Developments

• US firms announced £150 billion in investments in the UK around Trump's second state visit, with Blackstone leading the charge into private equity.
• A series of investments exceeding £31 billion target the AI sector, with US firms committing to build out AI infrastructure and partner with advancing technologies, such as self-driving cars.
• The UK government was unsuccessful in persuading Trump to lower tariffs, resulting in UK healthcare firms being excluded from the spending splurge.

Giving UK AI Development a Boost

While headlines pointed to the pomp and circumstance of US President Donald Trump's second state visit to the UK last week, the British government hailed a. The lion's share of the investment (£100 billion) is attributed to a 10-year commitment from Blackstone for private equity buyouts, as part of the firm's $500 billion push into European markets. Specific details about what investment the buyout firm would target were not made available. Recently, Blackstone acquired Warehouse REIT and has been a prolific investor in the UK already.

The main focus, however, was on the second sector to see investment: the, including AI, quantum computing and nuclear power. Analysts had previously noted that the Footsie has been underperforming in part due to a lack of AI-based firms to ride the current tech wave. Notable investments include Microsoft's pledge of £22 billion to expand AI infrastructure, unveiling the largest AI supercomputer. The announcement was similar to Google parent Alphabet's smaller £5 billion commitment to develop AI infrastructure in the UK, including cloud servers. Nvidia also announced £2 billion of investments, including starting talks of £500 million for UK self-driving systems startup Wayve. Crossing into other sectors is Palantir's £1.5 billion investment into AI-powered capabilities in the defence sector.

Not Everyone Is a Winner

While the deals were seen as bolstering many of the large firms on the FTSE 100, s, including easing the tariffs on steel and aluminium. Progress on healthcare investment has also stalled, with AstraZeneca having halted hiring amid negotiations with Washington over pharmaceutical tariffs. US firms like Merck have disclosed they will delay investments in the UK to concentrate production in the US due to the tariff situation, which includes Merck's £1.0 billion plan for a site in London, which had been planned to start operations in 2027. Nevertheless, the investments as a whole are seen as supporting the UK economy in a crucial moment for the nation's finances. An improved outlook for government revenue could help assuage some concerns from investors and continue to support the FTSE 100.

FTSE in Pennant Formation?

The UK’s premier index has been consolidating since peaking at 9360, forming a pennant pattern that could turn out to be a triangle if prices remain under 9340. However, such a scenario would increase downside risks and could push prices towards the regional low of 9190, opening the door to 9100. If the lower auto trendline holds firm or the pennant breakout takes place, the Footsie would accelerate to fresh records towards the next resistance at the round 9400 level.

Source: SpreadEx | UK 100, 4 hour