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Investors' optimism is growing around the UK economy as U.S.-EU trade disputes mount

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Some investors are expressing a growing optimism about the U.K. 's economic outlook despite the country's long-standing structural weaknesses.

Higher capital spending, a regional defense spending boost and the possibility of a strong trade deal with the EU in the coming year are all adding to this picture.

Some note that the UK is not "out of the clear" from President Donald Trump 's tariff path just yet, and is already being hit by his steel and aluminum duties.

The idea that VAT is some kind of tariff seems to have taken hold in the White House , says James .

James added that, while the government was improving the foundations of the U.K. economy in the long run, growth remained on a weak trajectory in the near term.

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