UK shares dropped on Wednesday morning following falls in Asian and US markets as concerns grow about the US economy – which is the world’s largest.
Data showed US manufacturing activity remains subdued, with investors now focussed on US jobs figures due on Friday.
The pound’s recent strong rally has slowed, with traders looking for direction in a quiet week for UK economic data. Sterling is down 0.2% against the dollar, trading around $1.311, after losing over 1% in the past five days.
The dollar is near a two-week high ahead of key US data, including manufacturing PMI and Friday’s jobs report. These figures will influence whether the US Federal Reserve cuts rates by 25 or 50 basis points in September.
Premier League to rewrite rules after legal defeat The Premier League is urgently reviewing its profitability and sustainability rules (PSR) after Leicester City successfully challenged them. Leicester avoided punishment for overspending by £20 million. Their lawyers argued that the club wasn’t bound by the rules because their accounts were finalised after their 2023 relegation. This ruling revealed a loophole in the Premier League’s rules, which other clubs could use to avoid penalties like those given…
Analysts at Panmure Liberum believe the UK will outperform other major economies in the coming months, thanks to stronger domestic demand.
Recent PMI data shows the UK saw growth in output and new orders in August, unlike the US and other major European economies.
AI chip giant Nvidia shares fall despite record sales Nvidia’s shares dropped by 6% in after-hours trading despite the AI chipmaker posting record sales of $30 billion over a three-month period, more than doubling its revenue from the same period last year. This figure exceeded analysts’ expectations of $28.7 billion. Nvidia has been a major player in the AI boom, pushing its market value above $3 trillion. However, some analysts, including Simon French from Panmure…
Canada hits China-made electric cars with 100% tariff Canada has announced it will impose a 100% tariff on electric vehicles (EVs) made in China, following similar actions by the United States and the European Union. The country also plans to implement a 25% duty on Chinese steel and aluminium imports. The move comes amid accusations from Canada and its Western allies that China is unfairly subsidising its EV industry, giving Chinese manufacturers an advantage in…
Global stocks climb higher as market jitters ease US stocks had their best trading day since November 2022, driven by a surprising drop in unemployment claims that eased fears of a slowing economy. The S&P 500 surged 2.3%, the Dow Jones gained 1.8%, and the Nasdaq soared 2.9%. Asian markets also saw gains, with Hong Kong’s Hang Seng up 1.7% and South Korea’s Kospi rising over 1%. This comes after a severe downturn in Japanese…
Musk’s X sues brands and trade group over advertising boycott Elon Musk’s social media platform, X (formerly Twitter), has filed a lawsuit against several major companies, accusing them of unlawfully conspiring to boycott the site. The companies named in the suit include food giants Unilever and Mars, healthcare provider CVS Health, renewable energy firm Orsted, and the trade association World Federation of Advertisers (WFA). The lawsuit alleges that these entities deprived X of “billions of…
Japan stocks jump 10% after global markets slump Japanese stocks bounced back on Tuesday morning, recovering after a sharp drop on Monday. The Nikkei 225 index rose by as much as 10%, following a more than 12% decline the day before. The sell-off was triggered by the Bank of Japan’s second rate hike in 17 years, which caused the yen to strengthen against the dollar, making Japanese exports more expensive and affecting investor sentiment. The…
Asia stock markets plunge after US shares tumbled Asian markets took a major hit on Monday, mirroring sharp declines seen worldwide last week. Japan’s Nikkei 225 and Topix indexes dropped nearly 13% as weak US jobs data fueled worries about the global economy. The yen’s recent 9% rise against the US dollar, following the Bank of Japan’s interest rate hike, has made Japanese stocks more costly for foreign investors, particularly hurting exporters. In other Asian…
Australia’s third largest airline enters administration Australia’s third-largest airline, Rex Airlines, has entered voluntary administration and cancelled flights on several key routes. Specialising in regional travel, Rex serves smaller towns and cities not covered by larger carriers like Qantas and Virgin Australia. Ernst & Young Australia has been appointed as the administrator after trading in Rex shares was halted earlier this week. This development follows the recent collapse of another Australian airline, Bonza, highlighting the…
Amazon responsible for product recalls, says US US regulators have determined that Amazon is responsible for handling recalls of unsafe products sold on its platform and must improve its recall process. The US Consumer Product Safety Commission (CPSC) criticised Amazon’s current alerts as insufficient, ordering the company to develop a new plan for addressing such issues. The CPSC’s decision follows a 2021 lawsuit against Amazon, accusing the company of distributing over 400,000 hazardous items, including…
Air NZ becomes first big carrier to drop climate goal Air New Zealand has scrapped its ambitious goal to cut carbon emissions by 2030, citing difficulties in obtaining more efficient aircraft and sustainable jet fuel. This makes it the first major airline to back away from a near-term climate target. The airline is now working on a new short-term objective while remaining committed to achieving net zero emissions by 2050, in line with industry-wide goals.…
