5 h. ago World markets and US dollar suffer worst monthly losses since 2022 as Trump tariffs fuel recession fears – business live

Shares slide after President Donald Trump says new reciprocal tariffs expected this week will include all nations, and Goldman Sachs say US recession more likelyWall Street shrinks in response to price pressures, stoking fears of Trump tariffsSwiss bank UBS has cut its forecast for the US stock market’s gains this year.Having previously forecast the S&P 500 shares index would end the year at 6,600 points (which would have been a 12% gain in 2025), UBS have now cut their end-year target to 6,400 points.“After considering the effects of tariffs and slower growth data so far in 2025, we now expect 6% earnings per share growth, and we have accordingly reduced our year-end target for the index to 6,400 (from 6,600).But this also means that there is still meaningful upside for broad US equities by year-end, in our view.”The Nikkei closed down 4%, while European indices are a sea of red. The sell off is broad based, with more than 550 of the Eurostoxx 600 stocks lower as investors take...

Economics

8 h. ago World markets and US dollar suffer worst monthly losses since 2022 as Trump trade war riles investors – business live

Shares slide after President Donald Trump says new reciprocal tariffs expected this week will include all nationsWall Street shrinks in response to price pressures, stoking fears of Trump tariffsEurope’s main stock indices are a sea of red, as investors react to Donald Trump’s declaration that the reciprocal tariffs he is set to announce this week will include all nations.Italy’s FTSE MIB index has dropped 1.4%, France’s CAC is down 1%, and Germany’s DAX has lost 0.95%.The tariffs imposed by the U.S. government and the fear of new announcements as early as Wednesday are creating a bleak atmosphere on trading floors worldwide. Just last Wednesday, the DAX was above 23,000 points, but it now appears that the index may soon test the 22,000 mark.The risk appetite seen in the initial weeks of the year has dissipated as investors and asset managers pull back, reduce positions, and refrain from taking on large new ones. The inclination to buy the dips has nearly vanished. Continue reading...

Economics

3 d. ago US consumer confidence hit by tariff fears; Thames Water’s finance chief leaving within days – business live

Rolling coverage of the latest economic and financial newsOver in Germany, the number of people out of work has risen at the fastest rate since October of 2024.The German labour office said the number of unemployed increased by 26,000 in seasonally adjusted terms to 2.92 million. Analysts polled by Reuters had expected that figure to rise by 10,000.“March marks the start of the so-called spring recovery on the labour market. This year, however, the economic slump is noticeably slowing it down.”One bright spot was the impressive 1.9% q/q (CE forecast 0.7% q/q) rise in consumers’ real incomes in Q4. The 4.2% rise in 2024 as a whole suggests households experienced the strongest real income growth in nine years.With consumer spending hardly rising, at 12.0% in Q4 (up from 10.3% in Q3), the saving rate remains unusually high, suggesting households are choosing to save rather than spend the bulk of those gains. Continue reading...

Economics

3 d. ago Tariff uncertainty risks ‘significant economic damage’; Thames Water’s finance chief leaving within days – business live

Rolling coverage of the latest economic and financial newsOver in Germany, the number of people out of work has risen at the fastest rate since October of 2024.The German labour office said the number of unemployed increased by 26,000 in seasonally adjusted terms to 2.92 million. Analysts polled by Reuters had expected that figure to rise by 10,000.“March marks the start of the so-called spring recovery on the labour market. This year, however, the economic slump is noticeably slowing it down.”One bright spot was the impressive 1.9% q/q (CE forecast 0.7% q/q) rise in consumers’ real incomes in Q4. The 4.2% rise in 2024 as a whole suggests households experienced the strongest real income growth in nine years.With consumer spending hardly rising, at 12.0% in Q4 (up from 10.3% in Q3), the saving rate remains unusually high, suggesting households are choosing to save rather than spend the bulk of those gains. Continue reading...

Economics

3 d. ago China’s Xi urges global CEOs to protect trade supply chains; UK’s 2024 growth revised higher, but households hoard cash – business live

Rolling coverage of the latest economic and financial newsOver in Germany, the number of people out of work has risen at the fastest rate since October of 2024.The German labour office said the number of unemployed increased by 26,000 in seasonally adjusted terms to 2.92 million. Analysts polled by Reuters had expected that figure to rise by 10,000.“March marks the start of the so-called spring recovery on the labour market. This year, however, the economic slump is noticeably slowing it down.”One bright spot was the impressive 1.9% q/q (CE forecast 0.7% q/q) rise in consumers’ real incomes in Q4. The 4.2% rise in 2024 as a whole suggests households experienced the strongest real income growth in nine years.With consumer spending hardly rising, at 12.0% in Q4 (up from 10.3% in Q3), the saving rate remains unusually high, suggesting households are choosing to save rather than spend the bulk of those gains. Continue reading...

Economics

3 d. ago FTSE 100 Live 28 March: New name for WH Smith high street stores, retail sales beat hopes

The WH Smith name is to disappear from the high street after 233 years.

Politics

3 d. ago China’s Xi urges global CEOs to protect trade supply chains; UK’s 2024 growth revised higher – business live

Rolling coverage of the latest economic and financial newsToday’s UK national accounts data also shows that people stashed away more of their money into savings at the end of last year.The household saving ratio, which measure the proportion of income that is saved, rose to 12% in October-December 2024, up from 10.3% in the third quarter of last year.One bright spot was the impressive 1.9% q/q (CE forecast 0.7% q/q) rise in consumers’ real incomes in Q4. The 4.2% rise in 2024 as a whole suggests households experienced the strongest real income growth in nine years.With consumer spending hardly rising, at 12.0% in Q4 (up from 10.3% in Q3), the saving rate remains unusually high, suggesting households are choosing to save rather than spend the bulk of those gains.Non-food stores – the total of department, clothing, household and other non-food stores – rose by 3.1% over the month. This put monthly sales volumes at their highest level since March 2022.“The exceptional volatility in rec...

Economics

3 d. ago FTSE 100 Live 28 March: WH Smith sells high street stores, retail sales beat hopes

The WH Smith name is to disappear from the high street after 233 years.

Politics

3 d. ago China’s Xi urges global CEOs to protect trade supply chains; WH Smith sells high street stores – business live

Rolling coverage of the latest economic and financial newsShares in WH Smith have dropped by 2.4% in early stock market trading in London, as traders digest the sale of its high street stores for £76m.Less encouragingly, the UK’s trade deficit has widened.finished manufactured goods (£1.8bn)semi-manufactured goods (£1.2bn)oil (£0.6bn)other fuels (£0.3bn)“The UK’s current account deficit with the rest of the world widened slightly in the latest quarter, driven by falling exports of goods.Our balance of payments statistics for recent years have been updated to incorporate improved measurement of foreign direct investment and corrected trade data.” Continue reading...

Economics

4 d. ago UK politics live: Business secretary calls for ‘cool heads’ after Reeves vows not to ‘escalate US trade wars’

A 25 per cent tariff on vehicles imported to the US will come into effect on 2 April, the US president announced

Politics

4 d. ago FTSE 100 Live 27 March: Next on a roll after £1bn profit, car industry stocks shaken by tariffs

The hot streak for Next continued today after the retailer racked up £1 billion profit and upgraded guidance.

Economics

4 d. ago FTSE 100 Live 27 March: Next posts £1bn profit, car industry stocks shaken by tariffs

The hot streak for Next continued today after the retailer racked up £1 billion profit and upgraded guidance.

Economics

5 d. ago Odds of Bank of England interest rate cut strengthen after inflation falls to 2.8%

Bigger-than-forecast decline in annual rate in February is positive news for Rachel ReevesBusiness live – latest updatesThe odds of the Bank of England cutting interest rates in May have been strengthened after inflation cooled by more than forecast last month.In a boost for Rachel Reeves on the day of the chancellor’s spring statement, the Office for National Statistics said inflation as measured by the consumer prices index eased to 2.8% in February from 3% in January. Continue reading...

Economics

5 d. ago FTSE 100 Live 26 March: Inflation boost ahead of Chancellor statement, Ocado surges

Chancellor Rachel Reeves is set to announce welfare cuts and a boost to defence spending when she delivers a statement to parliament today.

Economics

5 d. ago FTSE 100 Live 26 March: Inflation cheer ahead of Chancellor statement, Vistry halts dividend

Chancellor Rachel Reeves is set to announce welfare cuts and a boost to defence spending when she delivers a statement to parliament today.

Economics

5 d. ago Spring Statement 2025 LIVE: Inflation falls to 2.8% as Rachel Reeves prepares to unveil spending cuts

Chancellor Rachel Reeves will present her first highly anticipated spring statement to parliament on Wednesday.

Economics

5 d. ago Odds of May interest rate cut rise after UK inflation falls to 2.8% – business live

Rolling coverage of the latest economic and financial news, as pound dips after February’s inflation reportFurther benefits cuts planned as Rachel Reeves forced to find extra £1.6bnFive economic factors that will govern Rachel Reeves’s spring statementSterling is weakening a little, after UK inflation fell by more than expected this morning.The pound has lost nearly a third of a cent against the US dollar to $1.2915.The market reaction to this data has been minimal, as the focus remains on the Spring Statement later today.The pound has dropped slightly, but GBP/USD is down less than 20 pips so far on Wednesday, the bond markets are not open, but we think that UK Gilts will also have a mild reaction to this data. Continue reading...

Economics

5 d. ago UK economy receives welcome boost ahead of Rachel Reeves' Spring Statement as inflation falls to 2.8%

The rate of Consumer Prices Index (CPI) inflation fell to 2.8% in February from 3% in January, the Office for National Statistics (ONS) said

Economics

5 d. ago Inflation falls to 2.8% in boost for Rachel Reeves ahead of spring statement

The chancellor is set to deliver her spring statement later on Wednesday

Economics

5 d. ago UK inflation falls to 2.8% ahead of Rachel Reeves’s spring statement – business live

Rolling coverage of the latest economic and financial news.Further benefits cuts planned as Rachel Reeves forced to find extra £1.6bnFive economic factors that will govern Rachel Reeves’s spring statementHere’s a chart showing the various price changes that pulled UK inflation down to 2.8% last month.Core inflation has also slowed in February, despite prices rising steadily in the services sector.“The Bank of England will be reassured by today’s fall in underlying inflation, with core inflation easing. We expect underlying inflationary pressures to fall further over the coming months. That will hopefully allow the MPC to look through the expected near-term increase in headline inflation and resume cutting interest rates in the upcoming May meeting.“Goods inflation fell to 0.8% in February, however ongoing trade frictions could push prices higher. With the potential imposition of tariffs, the cost of imported goods could increase, creating additional cost pressures for both businesse...

Economics