Category Archives: Business

China has reacted in kind to Trump’s tariffs, but a deal may still emerge

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Beijing will defend its core interests, but its initial response is more cautious than when Trump imposed levies in 2018

Moments after Donald Trump introduced tariffs of 10% on Chinese goods, Beijing retaliated with countermeasures.

China’s finance ministry put tariffs of 10-15% on imports of a range of US goods and its anti-trust regulator announced an investigation into Google. Several US companies were also added to China’s “unreliable entity” list, potentially restricting their ability to conduct business in the country.

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Johnnie Walker owner Diageo says Trump tariffs could hit profits by $200m

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UK drinks company considering possible price rises as shares fall despite strong Guinness sales

Diageo, the company behind Smirnoff vodka and Johnnie Walker whisky, has said US tariffs could damage a nascent recovery in its sales and result in a $200m (£161m) hit to profits, with its tequila portfolio and Canadian whisky most affected.

The UK drinks company returned to sales growth in the latest half year, as strong performances for Guinness and tequila offset weakness in other spirits – but Donald Trump’s 25% tariffs on Canadian and Mexican imports could stop this recovery in its tracks, analysts said.

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‘It’s been madness’: US federal workers reeling over Trump-Musk takeover

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Office of personnel management workers say anxiety is palpable amid intimidation and threat of dismissal

US government workers are describing an atmosphere of “fear” and “madness” as they grapple with a barrage of executive orders issued by Donald Trump and threats to their jobs from the office of personnel management, the agency tasked with managing the federal civil service, which has been taken over by the billionaire Elon Musk.

Weeks before the administration transition, federal worker unions reported low morale among workers in anticipation of pushes for intimidation, mass firings and harassment.

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UK grocery inflation slows for first time in six months amid rise in promotions

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Kantar figures could be good news for government as food price rises have fuelled persistent UK inflation

Grocery inflation slowed in January – for the first time in six months – as retailers ramped up promotions to attract budget-conscious shoppers.

The price of groceries increased by 3.3%, easing from 3.7% in December, as the costs of toilet roll and cat food fell but those of chocolate, butter and chilled juices rose, according to analysts at Kantar.

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Sun website to charge £2 a month for selected content including Clarkson

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Exclusive: Paywall to return after a decade with new Sun Club offering also featuring Royal Exclusive video show

Sun readers will have to pay £2 a month to access columns by star writers including Jeremy Clarkson, popular content such as from the agony aunt Dear Deidre and some exclusive stories and investigations, as the UK’s biggest tabloid launches a paid-for content strategy.

Called Sun Club and initially priced at £1.99 a month, it launches on Tuesday and comes a decade after the Sun scrapped a subscription strategy that put all of its content behind a paywall.

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PM labels Coalition’s tax-free lunch plan ‘worst, sloppiest policy’ as Treasury puts cost in the billions

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Costings commissioned by Jim Chalmers suggest policy at risk of being ‘rorted’ could cost up to $10bn a year


The Coalition’s policy for tax-deductible business lunches would cost between $1.6bn and $10bn a year, the Labor government claims, according to costings Jim Chalmers commissioned from his Treasury department.

The treasurer claimed the policy was at risk of being “rorted” by businesses claiming personal food expenses, adding further to confusion about the Coalition’s contentious meals and entertainment policy.

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EU will stand up for itself in face of Trump tariffs threat, Macron says

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French president and other leaders call for cooperation with Washington but vow a robust response if needed

The EU will stand up for itself if its interests are targeted, Emmanuel Macron has said, as the bloc’s leaders urged talks – but a firm response if needed – in response to Donald Trump’s weekend threat to impose punishing tariffs.

“If our commercial interests are attacked, Europe, as a true power, will have to make itself respected and therefore react,” the French president said as he arrived for an informal defence meeting with other leaders in Brussels on Monday.

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Mitch McConnell calls Trump tariffs ‘bad idea’ but most Republicans toe line

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Ex-Senate majority leader is one of few party members to criticize president’s trade war with US neighbors and China

Republicans on Capitol Hill have largely fallen in line with Donald Trump’s move to impose tariffs on the US’s biggest trading partners, with the notable exception of the former Senate majority leader Mitch McConnell, who called it a “bad idea”.

With even Trump admitting that the tariffs – 25% on imports from Canada and Mexico and 10% on China – might cause “some pain”, there was mostly strong support from the president’s loyalists. Jason Smith, chair of the ways and means committee of the House of Representatives, said the tariffs would “send a powerful message that the United States will no longer stand by as other nations fail to halt the flow of illegal drugs and immigrants into our country”.

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Thames Water seeks high court approval for £3bn debt lifeline

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Hearing to rule on whether to grant emergency funds to water utility, which says it may run out of cash by March

Thames Water will seek court approval for up to £3bn in emergency funding, which could stave off temporary nationalisation, at a court hearing in London.

A high court judge will hear from Britain’s biggest water supplier and groups of rival creditors on Monday before deciding whether to approve the rescue. Without the debt lifeline, Thames Water has said it could run out of cash by March.

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Asian stock markets tumble in response to Trump tariffs

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European futures also down more than 3% after Trump indicates tariffs will ‘definitely happen’ in EU countries

Asian sharemarkets tumbled in early trade on Monday after the Trump administration’s imposition of tariffs on Mexico, Canada and China sparked fears of an escalating global trade war.

Taiwan’s Taiex fell 4.4% at the open, led by a more than 6% plunge in semiconductor heavyweight TSMC. Japan’s Topix index was down as much as 2.3% and Korea’s Kospi fell as much as 2.4%, led by major exporters with exposure to global markets, including Canada and Mexico such as electronics manufacturers Samsung and LG, and automaker Kia. China’s sharemarkets remain closed for the lunar new year holidays.

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Australian dollar plunges, ASX drops as fears of trade war spread over Donald Trump’s tariffs

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Traders even cashed out of gold, a historical safe haven, in push to protect against what could turn into wave of margin calls

The Australian dollar plunged to pandemic-era lows, the ASX fell and crypto prices were smashed as investors scrambled on Monday to prepare for a global trade war sparked by Donald Trump’s new tariff regime.

Traders even cashed out of gold, a historical safe haven, in a push to raise cash reserves to protect against what could turn into a wave of margin calls.

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US gas prices likely to go up with Trump tariffs on Canadian and Mexican oil

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Tariffs on imports mean higher costs for finishing fuels, much of which is likely to be passed on to consumers

US consumers will see higher prices at the gas pump from Donald Trump’s decision on Saturday to apply tariffs on Canadian and Mexican oil, according to analysts and fuel traders.

The likely hike in fuel prices reflects the double-edged nature of Trump’s trade protections, which are designed to bolster domestic business and pressure US neighbors to curb illegal immigration and drug smuggling, but which will also run counter to his promises to tackle inflation.

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Reeves’s Heathrow third runway report was commissioned by London airport

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The chancellor is under fire after a study cited as evidence for expanding the terminal to boost the UK’s economic growth was ordered by Heathrow itself

Rachel Reeves was facing criticism on Saturday night as it was confirmed that a report she cited as evidence that a third ­runway at Heathrow would boost the UK economy was commissioned by the airport itself.

Experts and green groups also challenged Reeves’s view that advances in the production of ­sustainable aviation fuel (SAF) had been a “gamechanger” that would substantially limit the environmental damage of flying, ­saying the claims were overblown and did not stand up to scrutiny.

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Beethoven and Marie Curie compete with birds to appear on new euro notes

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European Central Bank picks two themes for redesign submissions: ‘iconic personalities’ or rivers and birds

He was a master of notes, and now the German composer Ludwig van Beethoven could be one of the faces of the redesigned euro, the first time the EU currency’s banknotes have been revamped.

In a process that started in 2021 and has already involved a public inquiry and two multidisciplinary advisory groups, the European Central Bank (ECB) has selected two themes for the redesign.

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AstraZeneca cancels £450m Liverpool investment, blaming UK government funding cuts – business live

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Pharmaceutical company says that it will not go ahead with investment at Speke, near Liverpool

Donald Trump’s White House will invoke emergency powers to introduce tariffs on Canada and Mexico, Reuters reports:

Two sources familiar with the matter said that Trump was expected to invoke the International Emergency Economic Powers Act (IEEPA) as the legal basis for the tariffs, declaring a national emergency over fentanyl overdoses that killed nearly 75,000 Americans in 2023 and illegal immigration.

The statute enacted in 1977 and modified after the 9/11 attacks in 2001 gives the president broad powers to impose economic sanctions in a crisis.

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Ex-Barclays CEO gears up for explosive trial over City regulator’s allegations on Jeffrey Epstein ties

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Court papers seen by the Guardian mean Jes Staley’s appeal against FCA ruling will demand answers on links to sex offender

The former chief executive of Barclays, Jes Staley, is gearing up for an explosive trial next month, that will force him to address evidence suggesting he hid the depth of his relationship with Jeffrey Epstein, the sex offender he referred to as “family”.

Court documents seen by the Guardian reveal myriad allegations made by the Financial Conduct Authority (FCA), including that Epstein messaged Staley about sex, women and foreign holidays, while working behind the scenes to bolster Staley’s career by liaising with government officials, business leaders and royalty.

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AstraZeneca axes £450m vaccine plant in Liverpool, blaming state funding cut

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Days after Rachel Reeves highlighted life sciences as UK strength, firm decides against site expansion

AstraZeneca has cancelled plans for a £450m expansion of its manufacturing plant in Speke, Merseyside, blaming a cut in the funding on offer from the government.

Only two days after Rachel Reeves highlighted life sciences as a key UK strength, in a speech setting out her plans to kickstart economic growth, the company said it had decided to pull its investment.

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Australia news live: youth vaping rates plummet after law reform; police alert 5000 Australians targeted by overseas romance scam

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The federal health minister cited data showing vape use among young Australians has significantly reduced meaning new laws are working. Follow today’s news live

Cyclone threat looms in northern Australia as drenched region braces for yet more rain

North Queensland is on cyclone watch with three tropical lows given a chance of developing in the coming days, bringing heavy rain that has flooded roads and homes.

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Rachel Reeves says cabinet ‘united’ in backing Heathrow third runway plan – UK politics live

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Chancellor says she has support of cabinet as climate minister Ed Miliband reported to be sceptical over Heathrow plans

Richard Madeley goes next.

Q: The Ryanair boss Michael O’Leary says you are wrong, and the third runway won’t be built until you are 70. You are 45 now. Why is he wrong?

We’re signing off decisions on wind farms, on solar farms, a commitment to a new stadium at Old Trafford. We are upgrading the Transpennine route to make journey times easier between York and Manchester via Leeds and Huddersfield. Those things are happening right now.

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European Central Bank cuts interest rates to support growth as eurozone economy stagnates – as it happened

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Live coverage of business, economics and financial news as ECB cuts main interest rate by 0.25 percentage points in effort to support European economies

It was a flash reading on the Eurozone economy, so we don’t have the details on what the drivers were. But it’s clear that it was a weak end to 2024.

But the European Central Bank might be able to spur a bit of economic growth in the eurozone with looser monetary policy.

This marks a weak end to last year, following positive growth in the first three quarters of 2024. As a result, first estimates suggest that the currency bloc as a whole grew by 0.7% in 2024. Declining activity in Germany – the Eurozone’s largest economy – has weighed on the bloc’s growth, with German GDP contracting by 0.2% on the quarter. This suggests Germany has now seen annual declines in activity for two consecutive years.

In 2025, further loosening of monetary conditions is expected to provide a modest uptick in activity for both Germany and the Eurozone, with growth expected to amount to 0.3% and 1.0% respectively.

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