6 h. ago EU scrambles to respond to US tariff threat as Trump promises ‘major statement’ on Russia – Europe live

EU ministers meet for urgent talks after US president threatens 30% tariffs on blocA show of unity is expected publicly with German chancellor Friedrich Merz saying he will work “intensively” with Emmanuel Macron, Ursula von der Leyen and Trump to try and rescue the agreement in principle that was put on Trump’s desk last week involving tariffs of 10%. Over the past three months Germany has urged a quick UK style deal while Macron has favoured a tougher stance to face down Trump, given average tariffs before his presidency were 2.5% and they breach WTO rules.The EU’s continued and future reliance on the US for security and defence is influencing the position with member states accepting a trade off between business and arms and military intelligence Trump provides.If stock markets fall that puts at risk the pensions and the savings of the Americans. Continue reading...

Politics

7 h. ago Bank of England governor says jobs slowdown could prompt rate cut; European markets fall after Trump tariff threat – business live

Rolling coverage of the latest economic and financial news, as Andrew Bailey insists: “I think the path [for interest rates] is down”.Donald Trump’s threat to impose a 30% on European Union imports from next month is weighing on European stock markets this morning.Most of Europe’s markets have dropped at the start of trading, pulling the pan-European Stoxx 600 index down by 0.6%.Inadvertently or otherwise the President is testing the market’s patience. At a time when investors had seemingly brushed aside the likelihood of the base line of tariffs settling at 10%, the new pronouncements suggest a level of between 15% and 20% being the norm, with additionally punitive numbers on the likes of Canada at 35% adding to the uncertainty.The so-called “TACO” trade will therefore be tested again, with markets drifting in the US on Friday and futures currently suggesting a similar fall today. In addition, and as the new 1 August extension approaches, nerves are likely to jangle. Continue readi...

Economics

3 d. ago Rachel Reeves says May’s fall in GDP is ‘disappointing’; Trump tariffs knock markets – business live

Latest economic report shows UK GDP fell by 0.1% in May, following 0.3% fall in April.Full story: UK economy shrinks unexpectedly by 0.1% in blow to Rachel ReevesUS will impose 35% tariffs on Canadian imports, Trump says in letterChancellor Rachel Reeves has described the latest GDP figures as “disappointing”.Following this morning’s news that the UK economy contracted by 0.1% in May, Reeves points to the government’s efforts to support households financially:“Getting more money in people’s pockets is my number one mission. While today’s figures are disappointing, I am determined to kickstart economic growth and deliver on that promise.“The choices we have made in our first year in government have seen us extend the £3 bus fare cap, fund Free School Meals for over half a million more children, press ahead with plans to deliver free breakfast clubs for every child in the country and increase the National Minimum and National Living Wage, giving a pay rise to 3 million workers.“Flatli...

Economics

2 w. ago Voices: When it’s Rachel Reeves vs Andrew Bailey, I know who my money’s on

The governor of the Bank of England's response to the chancellor trying to talk up the flagging jobs market is quietly devastating, writes James Moore

Politics

2 w. ago Bank of England governor Andrew Bailey warns Trump trade wars are creating unpredictability; UK restricts steel imports – as it happened

Bailey says the BoE doesn’t know how trade wars will play out, as UK brings in new restrictions on steel imports Oil prices sink after Iranian strike on US airbase reduces fears of market disruptionTravel and leisure stocks across Europe are rallying too.This has pushed up the STOXX Europe travel and leisure index by 4.1% in early trading, which Reuters reports it the biggest one-day jump since 10 April. Continue reading...

Events

2 w. ago Bank of England governor Andrew Bailey warns Trump trade wars are creating unpredictability; UK restricts steel imports – business live

Oil has fallen to its lowest level since June’s conflict began, while stock markets have jumped across Asia and EuropeOil prices sink after Iranian strike on US airbase reduces fears of market disruptionTravel and leisure stocks across Europe are rallying too.This has pushed up the STOXX Europe travel and leisure index by 4.1% in early trading, which Reuters reports it the biggest one-day jump since 10 April. Continue reading...

Events

3 w. ago ‘Sluggish’ UK business activity picks up as tariff threat eases

Data from S&P Global showed activity across the UK’s private sector increased in June.

Economics

3 w. ago Canada said it would stand up to Trump. Instead, it’s taking cues from him | Shiri Pasternak and Dayna Nadine Scott

Federal and provincial governments are ‘flooding the zone’ with damaging corporate giveaways under the guise of resistanceSteve Bannon calls it “flooding the zone”. Donald Trump demonstrated it in his first weeks back in office, when he introduced over 100 executive orders. Regardless of their legal viability, the sheer volume of policy changes is the point. It is a political strategy to overwhelm institutions, courts and social groups, preventing effective opposition.In Canada, we are witnessing our own version of “flooding the zone” from our new prime minister, Mark Carney, in coordination with provincial and territorial premiers. Carney is the former governor of the Bank of England. Prior to that, he was the governor of the Bank of Canada. He recently won the federal election by defeating a rightwing opponent Canadians feared would steer them too far towards Trump policies. Yet Carney’s “negotiations” with Trump have so far involved gentle reminders that Canada would never become...

Politics

4 w. ago Canada is independent and sovereign, says Starmer ahead of visit

The Prime Minister is on his way to Canada for talks with his counterpart, Mark Carney, the former governor of the Bank of England.

Politics