Morning from Copenhagen.

As always, weekends and public holidays bring the most action from the Trump administration—this time with fresh attacks on Powell via Truth Social and a growing list of cited non-tariff barriers. We are edging closer to what could effectively be the removal of Powell, either directly or indirectly.

The big news surrounding the Trump team and the tariff situation remains the ongoing trade talks with various countries. But expectations for anything meaningful from these negotiations are dwindling fast, as counterparts increasingly sense there is no real strategy behind US policy. The US now finds itself on the back foot, fishing for deals to claim as successes, hoping to halt capital flight—but the real question is whether that damage can still be reversed.

If Trump’s team can’t deliver a coherent answer to Japan, how could they possibly have a plan for China? Probably not—and both politically and economically, this trade war is rapidly morphing into an outright meltdown for the US. Europe, meanwhile, remains the global beneficiary of this circus, as capital continues to flow into European bonds, the EUR, and European risk assets.