UK: Fmr. NATO Sec-Gen: Gov't Guilty Of 'Corrosive Complacency' On Security
Former Labour Defence Secretary and Secretary-General of NATO, Lord [George] Robertson, warns of a “corrosive complacency” towards the UK's defence policy from the gov't of PM Sir Keir Starmer. Comments from an upcoming lecture, given to the FT ahead of time, will come as a blow to Sir Keir. The intervention is a notable one. The Starmer gov't has made many claims about its intention to bolster defence spending, although its defence investment plan has already been delayed from Autumn 2025.
- Lord Robertson, author of the gov'ts strategic defence review (SDR), accuses the PM of "not willing to make the necessary investment”. He says “non-military experts in the Treasury” are guilty of “vandalism”. Robertson: “We cannot defend Britain with an ever-expanding welfare budget.”
- While predictions market expectations of Sir Keir's imminent removal as PM have eased (see chart below), there is still speculation that the left of the party (centred around Energy Secretary Ed Miliband and former Deputy Leader Angela Rayner) could look to oust Sir Keir following what are expected to be disastrous local/devolved parliamentary elections on 7 May.
- The intervention could provide some renewed impetus for the Labour right, if they argue that a shift to the left (associated with even higher welfare spending) would risk even greater threats to British security.
- It remains to be seen whether interventions such as this encourage the gov't to bring in tax rises to pay for defence (given increases enacted elsewhere already, these would almost certainly have to come on either income, employee National Insurance contributions or VAT) or impose spending cuts on other departments. Alternatively, they may fall by the wayside and result in only piecemeal measures that do not result in a concrete expansion in British defence capabilities.
Chart 1. Predictions Market Implied Probability Sir Keir Starmer Leaves Office by Year-End, %
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FED: MNI Fed Preview - March 2026: Navigating A Narrow Strait
We've just published our preview of the March FOMC meeting - Download Full Report Here
- The FOMC will hold the Federal Funds rate at 3.50-3.75% for a second consecutive meeting in March, in what increasingly looks like a prolonged pause before the next move.
- The outlook for policy changes has been complicated by events in the Middle East. With energy prices soaring, markets have swung from anticipating two 25bp rate cuts this year to now not even pricing one fully.
- The updated Dot Plot is likely to show the same median expectation for the rate path as December’s, including one 25bp cut by end-2026, which combined with a largely unchanged statement will effectively maintain the easing bias.
- Incoming data for the year so far won't allay hawks’ skepticism that inflation is headed sustainably to 2%, and while job gains remain soft at best, the labor market hasn't deteriorated to the point once feared.
- The threat posed to both dual mandate variables from the conflict in the Middle East gives policymakers even more reason to wait and see how things develop.
- We suspect that most on the FOMC, including the core leadership, will be more concerned with the potential demand destruction from the ongoing energy supply-side shock, than with the inflationary implications.
- But this is no time for pre-emptive action given inflation remaining above-target and expectations beginning to pick up, and it will take some months before a case can be made to resume easing.
- (MNI’s separate preview of sell-side analyst summaries to follow on Monday March 16)
USDCAD TECHS: Clean Break of 50-Day EMA
- RES 4: 1.3845 High Jan 22
- RES 3: 1.3800 High Jan 23
- RES 2: 1.3753 High Mar 03 and key resistance
- RES 1: 1.3691 / 3742 50-day EMA / High Mar 13
- PRICE: 1.3737 @ 16:40 GMT Mar 13
- SUP 1: 1.3526 Low Mar 09
- SUP 2: 1.3482 Low Jan 30 and the bear trigger
- SUP 3: 1.3420 Low Sep 25 ‘24
- SUP 4: 1.3400 50.0% retracement of the 2021 - 2025 uptrend
USDCAD is firmer, however remains inside the recent range. The pair looks to have made a clean break of resistance at the 50-day EMA. The break highlights a breach of both the 20- and 50-day EMAs and signals a stronger bull cycle. This opens the 1.3800 level initially, the Jan 23 high. For bears, a reversal would refocus attention on 1.3482, the Jan 30 low and bear trigger.
AUDUSD TECHS: Monitoring Support
- RES 4: 0.7284 High Jun’22
- RES 3: 0.7256 2.500 proj of the Nov 21 - Dec 10 - 18 price swing
- RES 2: 0.7208 61.8% of the Feb 25 ‘21 - Apr 9 ‘25 bear leg
- RES 1: 0.7187 High Mar 11 and the bull trigger
- PRICE: 0.7003 @ 16:31 GMT Mar 13
- SUP 1: 0.7000 Low Mar 13
- SUP 2: 0.6963 50-day EMA and key support
- SUP 3: 0.6897 Low Feb 6
- SUP 4: 0.6834 Low Jan 23
AUDUSD has pulled back further from Wednesday’s high. For now, the move down is considered corrective and attention turns to key support at 0.6963, the 50-day EMA. A clear break of this average would undermine the current bullish theme. Note that the moving average set-up is in a bull mode position signalling a dominant uptrend. A resumption of gains would open 0.7208 next, a Fibonacci retracement point.
