1 hour ago ‘Germany is back’: Merz secures Greens support for defence spend boost

Chancellor-in-waiting put forward proposal to relax debt brake and backing of Greens is tantamount to getting deal throughGermany’s conservative chancellor-in-waiting, Friedrich Merz, has said he has secured the support of the Green party for his radical plan to increase spending on defence and infrastructure after marathon talks that went through the night, paving the way for its approval in parliament.“Germany is back,” Merz said in Berlin on Friday. “Germany is making its large contribution to the defence of freedom and peace in Europe.” Continue reading...

Politics

2 h. ago UK economy shrinks in January; stocks and euro jump on German debt deal – as it happened

UK economy unexpectedly contracts by 0.1% in January in blow to the chancellor ahead of spring statement; Friedrich Merz declares: ‘Germany is back’Let’s look at the GDP figures in more detail.The 0.9% drop in production output in January, which came after 0.5% growth in December, was mainly caused by a 1.1% slump in manufacturing while mining and quarrying also declined. Basic metals and metal products were down along with pharmaceutical products. Continue reading...

Economics

3 h. ago UK economy shrinks in January; stocks and euro jump on German debt deal – business live

UK economy unexpectedly contracts by 0.1% in January in blow to the chancellor ahead of spring statement; Friedrich Merz declares: ‘Germany is back’Let’s look at the GDP figures in more detail.The 0.9% drop in production output in January, which came after 0.5% growth in December, was mainly caused by a 1.1% slump in manufacturing while mining and quarrying also declined. Basic metals and metal products were down along with pharmaceutical products. Continue reading...

Economics

5 h. ago UK economy shrinks in January; stocks and euro jump on reported German debt deal – business live

UK economy unexpectedly contracts by 0.1% in January in blow to the chancellor ahead of spring statementLet’s look at the GDP figures in more detail.The 0.9% drop in production output in January, which came after 0.5% growth in December, was mainly caused by a 1.1% slump in manufacturing while mining and quarrying also declined. Basic metals and metal products were down along with pharmaceutical products. Continue reading...

Economics

6 h. ago FTSE 100 Live 14 March: Gold price milestone, GDP setback as Berkeley urges rate cut clarity

Recession fears stalked the City today after official figures showed the UK economy went back into reverse in January.

Politics

7 h. ago FTSE 100 Live 14 March: Gold price record, GDP falls as Berkeley urges rate cut clarity

Recession fears stalked the City today after official figures showed the UK economy went back into reverse in January.

Politics

9 h. ago FTSE 100 Live 14 March: Recession fears mount after surprise GDP fall, Berkeley urges rate cut clarity

Recession fears stalked the City today after official figures showed the UK economy went back into reverse in January.

Politics

58 h. ago Trump tariffs of 25% on steel and aluminium come into effect globally as Europe says it will retaliate – business live

European Commission says it will impose counter-tariffs on US goods from AprilFull story: Trump tariffs on steel and aluminium come into effect amid US-Canada trade warThe European Commission said on Wednesday it would impose “countermeasures” starting from 1 April in response to US tariffs of 25% on steel and aluminium imports.European Commission chief Ursula von der Leyen said in a statement that Brussels would be “launching a series of countermeasures” in response to the “unjustified trade restrictions”. Continue reading...

Politics

64 h. ago Donald Trump's billionaire pals lose £162billion amid market turmoil from US president's trade war

The Republican victor was sworn in for a second term in the White House on January 20 with the stock market riding high and confidence in the United States booming.

Economics

69 h. ago German tourists’ ordeal reportedly ending as they are returned from US detention

Jessica Brösche to join Lucas Sielaff, who is reported to have returned to Germany on 6 MarchA German tourist detained by US immigration authorities is due to be deported back to Germany on Tuesday after spending more than six weeks in detention, including eight days in solitary confinement.Jessica Brösche, a 29-year-old tattoo artist from Berlin, will reportedly join Lucas Sielaff, 25, from Bad Brida in Saxony Anhalt, who is reported to have returned to Germany on 6 March, after being arrested at the Mexican border on 18 February before being detained for almost two weeks. Continue reading...

Economics

4 d. ago Wall Street falls again amid economic slowdown fears, as Musk’s Tesla falls 50% from all–time high – business live

Rolling coverage of the latest economic and financial news, as US markets slide after Beijing imposes tariffs on imports of agricultural goods from AmericaAnalysts at investment bank Jefferies remain optimistic about the prospects for the US economy in the second half of 2025 – while also fearing that it may slow more than expected in the first half of the year.In an updated US Economic Outlook, Jefferies tell clients:Broadly, these changes are modest relative to what we were looking for at the beginning of the year. We started out 2025 expecting growth to slow in the first half due to exactly the sort of tensions and uncertainty about policy that we are currently seeing. It now appears that the slowdown will be a bit more pronounced than we expected, but we remain optimistic about the second half of the year and beyond.We expect that the labor market will continue to cool gradually in the months ahead, with downside risks due to government spending uncertainty. We continue to expec...

Economics

4 d. ago Wall Street falls again as tariff fears grip markets – business live

Rolling coverage of the latest economic and financial news, as US markets slide after Beijing imposes tariffs on imports of agricultural goods from AmericaAnalysts at investment bank Jefferies remain optimistic about the prospects for the US economy in the second half of 2025 – while also fearing that it may slow more than expected in the first half of the year.In an updated US Economic Outlook, Jefferies tell clients:Broadly, these changes are modest relative to what we were looking for at the beginning of the year. We started out 2025 expecting growth to slow in the first half due to exactly the sort of tensions and uncertainty about policy that we are currently seeing. It now appears that the slowdown will be a bit more pronounced than we expected, but we remain optimistic about the second half of the year and beyond.We expect that the labor market will continue to cool gradually in the months ahead, with downside risks due to government spending uncertainty. We continue to expec...

Economics

4 d. ago China’s retaliatory tariffs on US farm goods kick in, as trade war escalates – business live

Rolling coverage of the latest economic and financial newsChina’s stock markets have dropped today, as the double-whammy of trade war fears and deflation weighed on investors.The CSI 300 index dropped by 0.4%, while in Hong Kong the Hang Seng index slid by 1.8%.The week starts on a sharp negative note for the Chinese stocks, as the latest inflation update showed that consumer prices in China fell the most in more than a year .Overall, the week is expected to bring more tariffs the Chinese tariffs on US agricultural and some Canadian products will start today, while the US steel and aluminium tariffs will be live from Wednesday.Monday kicks off with the same old deflationary drumbeat as China’s consumer inflation took a deeper dive than expected, slipping below zero for the first time in over a year. The data only reinforces what’s been clear for months—deflationary pressures remain firmly entrenched in the world’s second-largest economy.The property sector remains stuck in the mud, ...

Economics

5 d. ago EU must brace for impact of Trump wrecking ball on global trading system | Heather Stewart

UK appears to be out of US eyeline for now but it would not be immune to slowdown triggered by rising tariffsForget the “Trump put”, as financial analysts called the bet that the US president’s policies would unleash a winning era for the nation’s stock markets. By Friday, the chat was of the “Merz spurt”.The decision by Friedrich Merz, the German chancellor-in-waiting, to cut a deal on ditching Germany’s debt brake – still to be confirmed by the outgoing parliament – marked a seismic shift. Continue reading...

Politics

7 d. ago US unemployment rate rises to 4.1% as economy added 151,000 new jobs in February – business live

Rolling coverage of the latest economic and financial news, including February’s US jobs reportUS job market grows amid threats of mass federal layoffs and Trump tariffsThis has also been a rough week for the oil price.Brent crude, the international benchmark, has dropped by 4% so far this week to just over $70 per barrel.Trump paused tariffs and the market sold off. The old adage that the market hates uncertainty rings true. How the heck are you supposed to make investments or plan?The Nasdaq ended the session down 2.6%, while the S&P 500 finished 1.78% lower. Both are headed for weekly losses of around the 4% mark. Continue reading...

Society

7 d. ago Euro on track for best week in 16 years as trade war fears hurt US dollar – business live

Rolling coverage of the latest economic and financial newsChina’s foreign minister condemns US imposition of tariffs as ‘two-faced’This has also been a rough week for the oil price.Brent crude, the international benchmark, has dropped by 4% so far this week to just over $70 per barrel.Trump paused tariffs and the market sold off. The old adage that the market hates uncertainty rings true. How the heck are you supposed to make investments or plan?The Nasdaq ended the session down 2.6%, while the S&P 500 finished 1.78% lower. Both are headed for weekly losses of around the 4% mark. Continue reading...

Events

8 d. ago European Central Bank cuts interest rates again, by quarter point – business live

Dollar slides after US president exempts carmakers from 25% tariffs on Canada and Mexico; euro and sterling reverse earlier gainsThe eurozone saw the biggest slump in construction in three months in February, according to a separate survey.There was a marked reduction in new orders while cost pressures eased, according to a monthly report from Hamburg Commercial Bank.Unpleasant signals come from the Eurozone construction sector as the HCOB eurozone construction PMI in February shows deepening weakness that does not seem likely to fade soon. The recession now encompasses all three major Eurozone economies: Germany, France, and Italy.Although the ECB, particularly executive board member Isabel Schnabel, has signalled a pause in the rate-cutting phase to await further dynamics, the construction sector makes it clear that a delay in rate cuts in interest-sensitive areas can be fatal.Sharply declining order books rippled through the UK construction sector in February, which led to accele...

Economics

8 d. ago UK construction in biggest downturn since 2020; recruiters warn of tough business conditions – business live

Dollar slides after US president exempts carmakers from 25% tariffs on Canada and Mexico; euro and sterling reverse earlier gainsThe eurozone saw the biggest slump in construction in three months in February, according to a separate survey.There was a marked reduction in new orders while cost pressures eased, according to a monthly report from Hamburg Commercial Bank.Unpleasant signals come from the Eurozone construction sector as the HCOB eurozone construction PMI in February shows deepening weakness that does not seem likely to fade soon. The recession now encompasses all three major Eurozone economies: Germany, France, and Italy.Although the ECB, particularly executive board member Isabel Schnabel, has signalled a pause in the rate-cutting phase to await further dynamics, the construction sector makes it clear that a delay in rate cuts in interest-sensitive areas can be fatal.Sharply declining order books rippled through the UK construction sector in February, which led to accele...

Events

8 d. ago Pound rises above $1.29 as Trump fears hit dollar; Poundland chain up for sale – business live

Dollar slides after US president exempts carmakers from 25% tariffs on Canada and Mexico; euro and sterling hit four-month highsThe British Chambers of Commerce (BCC) is predicting “a long and challenging year for UK businesses”. It has become more gloomy about the growth outlook for the UK and said firms will struggle to invest as they deal with a raft of rising cost pressures.This is going to be a long and challenging year for UK businesses. The BCC’s forecast shows an economy struggling without the secure foundations to kickstart business investment.Inflation will continue to be stubborn this year forcing the Bank of England to keep interest rates relatively high. Global uncertainties will add further dark clouds to the economic climate. Continue reading...

Economics

8 d. ago European markets soar as Germany moves to lift ‘debt brake’ and raise defence spending

Berlin’s ‘big bazooka’ proposal sends industrial stocks surging but fiscal sea change also hikes borrowing costsBusiness live – German debt ‘bazooka’ rallies stocks and euroEuropean financial markets have rallied sharply and German borrowing costs have soared after the country’s prospective leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defence.The yield – in effect the interest rate – on 30-year German government bonds rose by about 25 basis points to 3.08% in its biggest daily increase since October 1998. Continue reading...

Economics