7 d. ago UK’s FTSE 100 share index hits record closing high despite economy shrinking in April – business live

UK economy shrank by 0.3% in April, biggest fall since October 2023, as trade with the US slumped.. but FTSE 100 ends at new record closeFull story: UK economy shrinks by 0.3% as as exports hit by Trump trade warNicholas Hyett, Investment Manager at Wealth Club, blames “a cocktail of headwinds to growth” for the 0.3% fall in UK GDP in April.Hyett says:In the very short term the change to Stamp Duty rules have put the legal and property services on ice - with legal activities down 10.2% month-on-month.New barriers to trade with the US and changes to employment costs, from a higher living wage and increased national insurance contributions, are a longer term challenge.“The 0.3% m/m fall in real GDP in April supports our view that the strength in Q1 was unsustainable. This won’t prompt the Bank of England to cut interest rates next Thursday. But it is one more piece of news pointing to another cut in August.”We still expect the Bank Rate to be maintained at 4.25% in the June meeting, t...

Economics

8 d. ago Largest ever plunge in UK exports to US as Trump tariffs hurt growth; dollar hits three

UK economy shrank by 0.3% in April, biggest fall since October 2023, as trade with the US slumpedFull story: UK economy shrinks by 0.3% as as exports hit by Trump trade warNicholas Hyett, Investment Manager at Wealth Club, blames “a cocktail of headwinds to growth” for the 0.3% fall in UK GDP in April.Hyett says:In the very short term the change to Stamp Duty rules have put the legal and property services on ice - with legal activities down 10.2% month-on-month.New barriers to trade with the US and changes to employment costs, from a higher living wage and increased national insurance contributions, are a longer term challenge.“The 0.3% m/m fall in real GDP in April supports our view that the strength in Q1 was unsustainable. This won’t prompt the Bank of England to cut interest rates next Thursday. But it is one more piece of news pointing to another cut in August.”We still expect the Bank Rate to be maintained at 4.25% in the June meeting, to allow still troubling earnings growth ...

Politics

1 week ago Between ‘rollover UK’ and ‘retaliatory China’: will EU hardball secure trade deal with US?

Optimism is growing in Brussels, but high-risk strategy has only weeks to play out before pause in tariff threat endsIn Brussels’ corridors of power, quiet optimism is growing that the EU’s hardball strategy to secure a US trade deal is working. While Britain quickly moved to try to cushion the impact of Donald Trump’s tariffs with a deal agreed last month – and US-Chinese relations are a tit-for-tat situation – the EU has taken a different stance. “We are positioning ourselves between ‘rollover UK’ and ‘retaliatory China’,” said a Brussels source.The stakes are not just the £706bn in transatlantic trade between the EU and US but the fallout from what diplomats and businesses say is a dangerous assault on the global rules-based system that governs western democracy. Continue reading...

Economics

2 w. ago How Trump’s budget would hit America’s poorest families hardest

White House takes aim at education, housing and food programs for millions of poor women and children

Politics

3 w. ago Trump accuses EU of dragging its heels on a tariff deal with the US

Fears of trade war reignited as the American president makes veiled threat on his Truth Social platformDonald Trump said the EU had been dragging its heels “to put it mildly” on sealing a tariff deal with the US, repeating his assessment that his threat of a 50% tariff on imports from the bloc was an “extremely” satisfactory move.He commended the EU for calling to “quickly establish meeting dates” but reignited fears of a trade war with the region by adding criticism of the EU to his statement on his Truth Social platform on Tuesday. Continue reading...

Economics

3 w. ago Tourists from countries badly hit by Trump tariffs are staying away from US

Data from hotel site Trivago shows fewer US bookings by holidaymakers from Canada, Japan, Mexico and Germany Holidaymakers in countries hit the hardest by Donald Trump’s trade tariffs are taking the US off their list for trips abroad, according to online travel booking data.Findings from the hotel search site Trivago also suggest that UK and US travellers are increasingly choosing domestic holidays amid concerns over an uncertain economy. Continue reading...

Politics

3 w. ago Trump delays 50 percent tariff threat to European Union until July 9

European Commission president requested the extension, Trump said

Politics

3 w. ago Apple sees stock drop after Trump threatens 25 percent tariffs unless they build iPhones in America

President Donald Trump made the threats after he reportedly met with Apple CEO Tim Cook at the White House earlier in the week

Politics

4 w. ago What EU exports are hit hardest by Trump’s 50% tariff threat?

More than a fifth of all EU goods exports are to the US market

Events

4 w. ago Apple stocks sink after Trump threatens 25 percent tariffs unless they build iPhones in America

The president made the threat against the tech giant in a Truth Social post

Politics