Category Archives: Currencies

Trump threatens to cut US aid to Argentina if Milei loses election

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US president says ‘we will not be generous’ if leader fails to win key midterms after promising $20bn to prop up struggling economy

Donald Trump has warned he could cut financial aid to Argentina if his ally Javier Milei loses crucial legislative elections later this month.

“If he loses, we are not going to be generous with Argentina,” the US president said as Milei visited the White House to seek the Republican’s political and economic support. “I’m with this man because his philosophy is correct. And he may win and he may not win – I think he’s going to win. And if he wins we are staying with him, and if he doesn’t win we are gone.”

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George Osborne says UK has been left behind in cryptocurrency boom

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Ex-chancellor criticises hesitant approach to crypto and warns country in danger of missing next surge in market

The UK has been left behind in the cryptocurrency boom and is in danger of missing a second wave of demand, according to the former chancellor George Osborne.

Osborne, who has an advisory role at the crypto exchange firm Coinbase, said the country already missed out on the first generation of crypto because the formerly sceptical US had embraced digital currencies under Donald Trump.

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

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Rolling coverage of the latest economic and financial news, as Andrew Bailey insists: “I think the path [for interest rates] is down”.

A Bank of England interest rate cut next month is looking more likely, according to the latest city pricing.

The money markets are indicating there’s now an 85% chance that the Bank cuts interest rates at its next meeting on 7 August, up from 76% at the end of last week.

Friday’s disappointing GDP figures, combined with these weak jobs figures boost the case for the Bank of England to cut interest rates in August. The central bank’s governor Andrew Bailey told The Times ‘slack’ was opening up in the labour market, and he believes ‘the path is downward’ for interest rates.

All eyes are on Wednesday’s inflation report with CPI expected to remain at remain around 3.4% in June, roughly unchanged for the third consecutive month.”

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UK economic growth confirmed at 0.7% in first quarter; Lincolnshire oil refinery calls in administrators – business live

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UK-US trade deal kicks in today, lowering tariffs for British carmakers and aerospace sector

UK households hit by squeeze on living standards despite fastest growth in G7

Karim Haji, global and UK head of financial services at KPMG, said:

May’s uptick in mortgage approvals bucks the downward trend we’ve seen throughout the year so far. The gradual easing of interest rates could be helping to boost confidence and demand amongst mortgage borrowers.

The cost of living remains high, but a drop in consumer borrowing in May signals that rising incomes are starting to feed through to the cost of day-to-day expenses.

It is incredibly positive news to see an increased number of mortgage applications approved. It is one of the loudest signals of them all regarding consumer affordability, and it is also a massive vote of confidence from lenders in the longer-term prospects of the economy too.

As we head into the summer months, we have witnessed on average the number of viewings per property available see an uplift of around 30% compared to the month previous. On top of this, we have also seen the UK Government make a pledge to create a National Housing Bank which could bring significant investment to help build 500,000 new homes, enabling a potential greater degree of flexibility for those who aspire to buy.

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Reeves eyes Gulf trade pact as ‘next deal,’ Bank of England’s Pill says pace of interest rate cuts ‘too rapid’ – as it happened

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China and Australia cut interest rates; Shell faces protests calling for clean-up in Niger Delta

Here’s our full story on Greggs.

Sales at Greggs have picked up after the UK’s biggest bakery chain branched out into iced drinks, pizza boxes and a macaroni cheese that has gone viral on social media.

These are important issues and we respect the right of people to express their view. But for many years the vast majority of spills in the Niger Delta have been caused by third parties acting unlawfully, such as oil thieves who drill holes in pipelines, or saboteurs.

These challenges are managed by a joint venture which Shell’s former Nigerian subsidiary, SPDC, operated, cleaning up every spill from the joint venture’s facilities.

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Gold climbs above $3,500 for first time as Wall Street rallies after slide

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Dollar also recovers after Monday’s sell-off prompted by Donald Trump’s attack on Federal Reserve chair

Gold has climbed above $3,500 an ounce for the first time while stocks on Wall Street and the dollar rose following Monday’s sell-off prompted by Donald Trump’s blistering attack on the Federal Reserve chair, Jerome Powell.

Spot gold reached the record price of $3,500.01 (£2,620) on Tuesday, extending a rally that has pushed bullion up from $2,623 an ounce at the start of this year.

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Falling Australian dollar spells bad news for travellers and shoppers

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The value of one Australian dollar dropped to a low of 59.64 US cents, its lowest point since April 2020

Consumers and travellers will face higher prices after the Australian dollar fell to Covid-era lows, as markets reel from Donald Trump’s “liberation day” tariff plan.

Fears of a global recession dragged the Australian dollar sharply lower on Monday against the country’s major trade partners and to its lowest point against the Euro, pound and US dollar since 2020.

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

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Berlin’s ‘big bazooka’ proposal sends industrial stocks surging but fiscal sea change also hikes borrowing costs

European 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.

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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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AI-linked stocks make modest gains after DeepSeek rout; Boeing posts its second-biggest annual loss on record – business live

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Donald Trump says China’s DeepSeek is a ‘wake-up call’ for American AI firms

Donald Trump has suggested that Microsoft is in talks to acquire TikTok and that he would like to see a bidding war over the app.

When asked if Microsoft was in talks to buy the app, the US president said “I would say yes”, adding “A lot of interest in TikTok. There’s great interest in TikTok.”

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Wall Street shrugs off Trump after he vows Mexico and Canada tariffs

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S&P 500 and Nasdaq Composite largely unmoved as it opened for trading for first time after inauguration

Financial markets largely shrugged after Donald Trump outlined plans to impose punitive tariffs on Mexico and Canada as soon as next month while signing scores of executive orders on his first day in office.

The US president told reporters in the White House Oval Office he was thinking about introducing 25% US tariffs on imports from Mexico and Canada as soon as 1 February.

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Bitcoin hits new record high, dollar dips ahead of Trump inauguration – business live

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Bitcoin rises by 4% past $109,000, reversing earlier losses; Donald Trump meme coin price tanks after wife Melania also launches token

The UK chancellor, Rachel Reeves, will travel to the World Economic Forum’s annual meeting in Davos this week in the hope of convincing some of the world’s largest companies to invest, with allies saying she will use spending cuts rather than further tax increases to meet her own fiscal rules.

At the same time, the Treasury is considering a push to cut the benefits bill, in a move that is causing nervousness among Labour MPs.

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Pound falls to 14-month low as bond sell-off piles pressure on Rachel Reeves

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UK borrowing costs rise again, with analyst warning ‘things are also getting rather ugly’

The pound has fallen to a 14-month low against the US dollar as the sell-off in the bond market fuelled investors’ anxiety over UK assets and piled further pressure on the chancellor, Rachel Reeves.

As the bond sell-off gathered steam, sterling lost a cent against the US dollar, extending recent losses, falling to about $1.226.

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China’s yuan hits 16-month low amid fears over Trump tariffs

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CSI 300 blue-chip stock index also trades weakly, hitting its lowest point since September

China’s currency hit a 16-month low on Monday, despite efforts by the central bank and stock exchanges to soothe investor worries about impending US tariffs under a Donald Trump presidency.

The tightly controlled yuan reached 7.3301 per US dollar, its weakest level since September 2023. It has routinely hit multi-month lows since Trump won the US election, promising massive tariffs on Chinese imports.

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Inflation pain helped secure Trump win but his policies mean higher prices

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Markets expect his policy package to harm trade and growth but reduce business taxes

Higher share prices. A stronger dollar. A less rapid pace of interest rate cuts. The financial market reaction to Donald Trump’s return to the White House was swift and predictable.

The man who will become his country’s 47th president has made no secret of what he plans to do: cut taxes, impose heavy tariffs on imported goods, place curbs on migration, and slash red tape.

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Wall Street and bitcoin soar to record highs as Trump wins US election

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Dollar up and renewable energy stocks down, while shares in president-elect’s media business rise by more than a third

Wall Street and bitcoin rallied to fresh record highs and the dollar soared after Donald Trump’s victory in the US presidential election, while renewable energy stocks fell.

Trump was declared the winner on Wednesday morning after securing the 270 electoral votes needed to take the presidency.

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Shares in New York and London tumble on fears of US recession

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FTSE 100 on track for its lowest close since April and Japan’s Nikkei suffers biggest fall since crash of 1987

Shares on Wall Street and in London have fallen heavily amid a global stock market rout triggered by fears of a recession in the US.

The tech-focused Nasdaq index dropped by 6% as trading in New York opened on Monday, while the broader S&P 500 index fell by 4.2% in a sell-off triggered by weak US jobs data. The Dow Jones industrial average lost more than 1,100 points, a 2.8% decline.

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Former Lib Dem leader Vince Cable testifies at inquiry into Post Office Horizon scandal – business live

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Cable was business secretary from 2010-15 when the government privatised the Post Office

Cable has agreed with a description of Post Office management as “thugs in suits”, and had a goal of rebalancing the relationship between bosses and subpostmasters during his time in post.

He recounted a story about challenging 8 Post Office closures in his constituency, before he entered government, and being treated poorly by the organisation’s “middle management”.

Mr Bates has, I believe, described them as ‘thugs in suits’ and I recognise the description,” said Cable in his witness statement. “And [the Post Office] dealt with us in an arrogant way when we campaigned against closures.


In my first meeting with Paula Vennells [Post Office chief executive] I suggested this is what the Post Office should do,” he said. “We perhaps should have been more modest and had postmasters on the board, which would have achieved some of our aims, which I think has now happened.

Problems with Horizon barely came across my desk,” he said. “When they did it was usually in a very uncontroversial way and not drawn to my attention as an issue I should focus on. General reason is that the officials who were briefing me and ministers on the subject hadn’t seen it as a particular problem.

In hindsight, I should have been told at the outset what Horizon was,” he said. “That competent people … were suggesting there was a risk factor and I should have been told about Mr Bates and the justice group. I never heard his name until I’d been in the job five years. I wasn’t briefed on them.

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French stock market swings to gain after election surprise; Britvic agrees to improved Carlsberg offer – business live

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Live coverage of business, economics and markets after New Popular Front is largest party in second round of France’s election, with far-right third

The French election has meant that Marine Le Pen’s far-right National Rally (RN) will not be in power, but it has not settled what France’s new government will look like.

The New Popular Front (NFP), the hastily arranged coalition of left-wing parties, won the most seats, but it is far short of a parliamentary majority. The result will mean a lot of negotiation to agree on who will be the new prime minister – let alone on achieving anything meaningful in governing the country.

The French parliament is more divided than ever, made up mainly of three blocs (Left – 182 seats, Centre – 168 seats, Extreme Right – 143 seats) and a number of smaller ones. As we predicted before the elections, no bloc can claim an absolute majority.

Minority government

French political parties “are not used to making concessions in order to create a programme around a coalition with other parties”, and the NFP’s most prominent figure, Jean-Luc Mélenchon demanded its entire programme be implemented. “If political parties maintain such positions, a long period of instability will ensue,” said Ledent.

Learning to cooperate

“Excluding the 80 MPs from the far left and the 145 from the far right, there are over 350 MPs left to form a broad coalition ready to reform France, taking into account the diversity of opinions. In other European countries, including Germany, such a configuration would be quite natural and would result in a government with a clear majority.

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What’s behind the record FTSE 100 high?

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Hopes of a UK interest rate cut and easing geopolitical tensions are not the only reasons for the intraday peak reached this morning

The UK stock market has hit an intraday record high, lifted by hopes of interest rate cuts and easing geopolitical tensions, after setting a new closing high on Monday. The FTSE 100 index touched 8,076 points at the opening bell on Tuesday, surpassing a previous high of 8,047 reached in February 2023. We explain what is behind the rising London market.

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