Whats happening in EU/UK
• Europe faces legal and financial challenges in using frozen Russian assets to fund Ukraine.
• The European Commission’s proposal to fund two-thirds of Ukraine’s needs via borrowing or frozen Russian assets faces opposition from ECB President Lagarde, citing treaty violations and legal risks.
• Belgian officials highlight liability risks from frozen assets, exposing internal EU divisions and delaying decisions.
• UK construction PMI fell to 39.4, signaling contraction, despite a recent services PMI rebound.
• Inflation expectations rose to 3.7%, raising concerns ahead of Bank of England policy decisions.
• Market skepticism surrounds the pound’s rally, driven by short-term factors rather than strong economic fundamentals.
