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The FTSE 100 has capped off its longest winning streak on record as investors cheered the prospect of potential trade talks between the US and China.
The UK’s flagship stock index closed 1.17pc up on Friday, while the mid-cap FTSE 250 closed 0.52pc higher.
This came after Beijing’s commerce ministry said it is “currently evaluating” an offer made by the US to start talks.
The rise marked the FTSE’s 15th consecutive daily increase - the longest run of positive days in a row in history for the British benchmark index, according to Bloomberg. It has risen 2.15pc in the last five days.
Investors across the Atlantic were similarly enthused at the prospect of talks. As UK markets closed the S&P 500 was on course for its highest close since Mr Trump’s so-called “Liberation Day” one month ago, when he sent shockwaves through global markets by imposing tariffs on global trade partners.
The US index would require a rise of 1.2pc today to pull this off. It was on course to achieve this as markets closed in the UK, with the index riding around 1.30pc higher.
Business chiefs around the world will be hoping that some agreement will eventually be found between Mr Trump and his rivals in Beijing following weeks of uncertainty.
However, while investors have rallied on the prospect of talks, experts said earlier today they were still cautious.
Amy Xie Patrick, of Pendal Group, told Bloomberg TV earlier today: “Is it progress? Yes, I would say that in terms of how hard the US side had pushed on the tariffs front. Is the uncertainty over? I very much doubt it.”
Beijing said any talks would require concessions from the US before they could begin. The US has imposed 145pc duties on goods from China, with the world’s second largest economy hitting back with 125pc levies.
“If the US wants to talk, it should show its sincerity to do so, be prepared to correct its wrong practices and cancel unilateral tariffs,” China’s commerce ministry said.
President Trump has repeatedly claimed that China has reached out for talks on the tariffs, and this week said he believed there was a “very good chance we’re going to make a deal”.
06:26 PM BST
Signing off...
That’s all from me this evening. Thanks for joining us and see you after the bank holiday.
Read on for more business news and analysis.
06:23 PM BST
UAE funnels $2bn into Trump’s cryptocurrency
The UAE is planning to spend $2bn (£1.5bn) on one of Donald Trump’s cryptocurrencies in a move that has triggered accusations of a conflict of interest.
Our US economics correspondent Melissa Lawford has the latest:
Emirati investment firm MGX, which is backed by Abu Dhabi’s sovereign wealth fund, said it planned to do a deal using a so-called stablecoin called USD1.
06:03 PM BST
Gold on track for first weekly loss as haven appeal eases
Gold is poised for its first back-to-back weekly loss of 2025 after strong US jobs data and the prospect of US-China trade talks eased a flight to safe havens.
Investors are finding their appetite for risk return as fears over the trade war give way to cautious optimism.
Despite a selloff this week, gold has risen by around 23pc this year, soaring to a record $3,500 per ounce last week before losing some ground.
05:55 PM BST
FTSE ‘could have further to run’ after record streak
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the benchmark index had “significantly more power in reserve and could have further to run, given that the index has not yet regained the record levels reached in March”.
It comes after the FTSE 100 cemented its longest winning streak on record at close today, capping off 15 consecutive days of gains.
“However, uncertainty over US trade policy and the extent of the effect on the global economy is likely to put a lid on further gains,” Ms Streeter added.
05:49 PM BST
Trade war casts doubt on Shein IPO plans as retail giant axes advisers
The Chinese retail giant Shein has cut ties with two advisory firms it was working with ahead of a potential float on the London Stock Exchange (LSE), according to reports.
Shein has not renewed contracts with Brunswick and FGS, according to reports, casting doubt on its plans for a multibillion-pound initial public offering (IPO). Ministers have been pushing for Shein to list in London to boost the City’s ailing public markets.
The US is one of Shein’s biggest markets, and is responsible for around a third of its revenues. The company has been hamstrung by the imposition of tariffs, with recent reports suggesting it could restructure its US business to ease pressures amid the current market turmoil.
Brunswick was helping the company deal with the press while FGS was managing government relations, said The Times, which first reported the story.
05:39 PM BST
‘Peak uncertainty’ may have been reached
Here’s Kevin Thozet, of the asset manager Carmignac.
“It seems we may have reached peak policy uncertainty. There are talks ongoing, and Trump seems to have watered down some of his policies. If you add in that the earnings season has been fairly positive, the overall backdrop isn’t that bad.”
05:34 PM BST
European indexes close higher
The prospect of improving relations between the US and China has buoyed European markets as well as British indexes.
The Cac-40 in Paris closed 2.33pc higher, while the FTSE Eurotop 100 index closed 1.90pc up.
05:17 PM BST
Banking giants predict US rate cut in July
Barclays and Goldman Sachs have predicted the Fed will deliver a cut to interest rates in July following stronger than expected US jobs data released today.
They had previously forecast a rate cut would take place in June.
05:04 PM BST
Trade talk hopes ‘outweighing tariff concerns’
Deutsche Bank managing director Jim Reid said hopes of easing relations between the US and China are “outweighing concerns about the effect of tariffs, which were initially triggered by disappointing earnings from Apple and Amazon”.
Both tech giants disappointed investors yesterday evening as they warned over the impact of tariffs. Amazon said its profits would be weaker in the second quarter, while Apple said it faced $900m in extra costs. Shares in both slumped as markets opened on Friday.
04:46 PM BST
Pound rises against the dollar
The pound closed at $1.3300 compared with $1.3273 at previous close, continuing a strong streak after Donald Trump’s tariffs unleashed turmoil on financial markets.
04:11 PM BST
Mark Carney to meet Trump next week to discuss trade pressures
Canada’s new Prime Minister, Mark Carney, will meet Donald Trump in Washington next Tuesday, he told reporters.
Mr Carney said the focus of the talks would be immediate trade pressures and the broader relationship between the two North American nations.
Mr Carney, a former governor of the Bank of England, swept to victory in Canadian elections after Mr Trump outraged swathes of the Canadian public by threatening to turn Canada into the “51st state” of the US.
04:02 PM BST
Temu halts Chinese imports to US
Temu, the low-cost Chinese retailer, has stopped selling goods directly from China to US customers amid Donald Trump’s clampdown.
The retailer, which sells a vast range of everyday goods, will now fulfil orders from US-based sellers, after the Trump administration called time on the ‘de minimis’ tax exemption for low-value imports.
It illustrates the extent to which large Chinese retailers have relied on ‘de minimis’ rules to grow their sales in the US.
Previously, imports worth under $800 did not incur duty. As of today, they are subject to a 120pc tariff or a flat fee of $100, which is set to be doubled from June 1.
It comes after Temu warned it would have to raise its prices in the US as a result of Mr Trump’s trade war.
03:55 PM BST
May interest rate cut ‘off the table’ despite Trump pressure on Fed, says JP Morgan
A May interest rate cut from the Federal Reserve is “clearly off the table” despite Donald Trump’s calls to the Fed, America’s biggest bank has warned.
Stronger than expected jobs data on Friday means that the Fed will not be able to cut interest rates at its May meeting and is unlikely to do so in June, according to JP Morgan’s chief global economist.
Bruce Kasman said: “It is hard for me to think about the Fed coming in with today’s payroll report and sitting here saying, ‘Hey, this is the right time to be easing’. May I think is clearly off the table.”
Our US economics correspondent Melissa Lawford has the latest:
Mr Kasman said there was a “less than 50pc” chance that the Fed will cut interest rates in June.
03:43 PM BST
Retailers ditch US sales as tariffs bite
A number of global retailers have stopped sending parcels to the US after Donald Trump ended a tax exemption for smaller packages.
Space NK, the British beauty products brand, said it has paused US orders “to avoid incorrect or additional costs being applied to our customers”, while the Canadian brand Understance, which sells bras and underwear, said on Instagram it would stop shipping to the US until there is more clarity on tariffs.
Cindy Allen, the chief executive of global trade consultancy Trade Force Multiplier, said: “We’re going from zero to 145pc, which is really untenable for companies and untenable for customers.
“I’ve seen a lot of small to medium-sized businesses just choose to exit the market altogether.”
03:30 PM BST
US borrowing costs rise in blow to Trump
The cost of government borrowing has risen after the American jobs market performed better than expected last month, dampening Donald Trump’s hopes for interest rate cuts.
The yield on 10-year US Treasury bonds, a benchmark for the cost of US federal debt, rose nearly seven basis points to 4.29pc after the US economy added 177,000 jobs in April, which was better than the 138,000 forecast by analysts.
President Trump has called on the Fed to cut rates to boost American consumers, while his administration has also said it is focused on bringing down bond yields to help with the cost of government borrowing.
Seema Shah, a strategist at Principal Asset Management, said: “We can push recession concerns to another month.
“Job numbers remain very strong, suggesting there was an impressive degree of resilience in the economy in play before the tariff shock.
“That indicates that economic weakness may not truly materialise in the numbers for several months yet, in turn pushing the next Fed cut into third quarter.
“Certainly, why would the Fed start cutting rates right now when the unemployment rate is near record lows, the consumer is still fairly robust, and inflation is running above target?
“The economy will weaken in the coming months but, with this underlying momentum, the US has a decent chance of averting recession if it can step back from the tariff brink in time.”
03:18 PM BST
Musk cuts ‘relatively small’ number of US jobs
The US saw a “relatively small” decline in federal government payrolls last month, official figures show, indicating Elon Musk’s Doge reforms have so far left jobs relatively unscathed.
Federal government employment declined by 9,000 in April, according to the Labor Department, which and is down by 26,000 since January.
The Tesla boss has faced a backlash over his links to the Trump administration, where he has been leading cuts to federal spending overseeing the Department of Government Efficiency, known as Doge.
Harvard professor Jason Furman said the federal jobs figures were “relatively small”.
02:54 PM BST
Wall Street poised to erase losses since Trump tariff onslaught
The S&P 500 was on track to erase all of its losses since Donald Trump launched his tariff onslaught last month.
Wall Street’s index of America’s largest companies rose as much as 1.2pc to 5,671.18, which would leave it higher than its closing price of 5,670.97 on the day the US president announced his “liberation day” import taxes.
02:34 PM BST
US stocks rise after better-than-expected jobs figures
Wall Street stock markets jumped at the opening bell after better-than-expected jobs figures indicated the US economy was holding up in the face of tariffs.
The Dow Jones Industrial Average rose 1.1pc to 41,191.23 while the benchmark S&P 500 gained 1pc to 5,661.21 amid hopes the US and China will begin trade talks soon.
The tech-heavy Nasdaq Composite jumped 1pc to 17,885.75.
Bradley Saunders of Capital Economics said: “The healthy 177,000 rise in non-farm payrolls in April and unchanged unemployment rate will reassure the Fed that there is no need to be hasty in lowering interest rates when it meets next week.
“Given that firms were willing to hire additional workers in healthy numbers only a week after the liberation day tariff announcement, this report also undermines the idea that firms would be unwilling to commit to new investment in such an uncertain environment.”
02:05 PM BST
Traders reduce bets on interest rate cuts in blow to Trump
Traders have scaled back their bets on the Federal Reserve cutting interest rates this year after US employment figures were better than expected.
Money markets still indicate there will be three rate cuts this year, but give a 40pc chance of a fourth cut, compared to 68pc on Thursday.
While very little chance is given of the Fed cutting rates next week, the probability of a reduction in June has dropped from 63pc to 42pc.
Neil Birrell, chief investment officer at Premier Miton, said: “In April, the US jobs market held up well, much better than expected, although revisions mean February and March were weaker than thought.
“It’s hard to know just how much current economic data reflects the true underlying strength of any economy at present as businesses and consumers position themselves for the introduction of tariffs. Time will tell.
“But as far as this print is concerned, it suggests the US is not doing as badly as some have feared and it’s unlikely to change any Fed policy decision.”
01:54 PM BST
Trump demands rate cuts as US suffers jobs slowdown
Donald Trump called for the Federal Reserve to lower interest rates after the latest employment figures showed a slowdown in the US jobs market.
The US president said the American economy was in a “transition stage” after it added fewer jobs in April compared to the previous month.
01:47 PM BST
Fed ‘could be forced to cut rates’ if jobs slowdown deepens
The Federal Reserve could be forced into cutting interest rates if the latest US employment data marks the start of a “more considerable slowdown”, analysts have said.
Richard Carter of Quilter Cheviot said the latest US employment report “looks to be fairly healthy” after nonfarm payrolls were better than forecasts.
However, he warned it could also be “painting a picture of businesses struggling in America” which could leave the Fed with “no choice but to do what Donald Trump wants it to do – cut interest rates”.
He said: “While Donald Trump was happy to claim this is a Biden economy after the poor GDP reading earlier this week, he will no doubt claim that the tariff uncertainty is having little impact on the US, with the labour market seemingly trundling on.
“However, this latest jobs figure is still down markedly from what was a bumper month in March, and the fear is that this is the start of a more considerable slowdown.”
He added: “A potential quickening of this slump may just get the Federal Reserve to act on interest rates, however.
“So far, Jerome Powell has stood firm that it will not be influenced by the words of Donald Trump and cut rates sooner than it would like. There remains inflationary risks and uncertainty across the market, particularly given what happens after the 90-day pause on reciprocal tariffs is unknown.
“The Fed will not want to cut rates into a market of rising inflation, but should other economic indicators start flagging trouble, it may have no choice but to do what Donald Trump wants it to do – cut interest rates.”
01:41 PM BST
US jobs figures beat expectations
The drop in US employment last month was better than analysts had feared.
Nonfarm payrolls added 177,00 jobs in April, compared to projections for 138,000.
However, the previous month’s employment figures were revised lower from 228,000 to 185,000.
The US unemployment rate held steady at 4.2pc.
01:30 PM BST
US employment slows down amid Trump trade war
The US economy added fewer jobs last month as Donald Trump’s trade war moved into full swing.
Nonfarm payrolls rose by 177,000 during April, which was lower than a downwardly revised 185,000 in March, according to the Labor Department.
It came after the US president launched his “liberation day” tariffs against global trading partners, which sent financial markets into turmoil.
01:11 PM BST
Oil company profits slump amid falling crude prices
Exxon Mobil’s first quarter profit slumped to the lowest level in years as it was stung by weaker crude prices.
The oil and gas giant earned $7.7bn, or $1.76 per share (£5.8bn or £1.32), during the first three months of the year, down from $8.2bn, or $2.06 per share (£6.2bn or £1.55) a year ago.
Revenue totaled $83.1bn, which fell short of the $84.12bn that analysts projected.
Chevron also reported its lowest first-quarter profits in years, with per-share adjusted profit falling to $2.18 per share on revenue of $47.6bn.
Analysts predicted earnings of $2.15 per share on revenue of $48.6bn.
The last time first-quarter profits were this low for Exxon was in 2022 and for Chevron in 2021.
It comes as crude oil has fallen nearly 18pc so far this year, hitting a four-year low last month amid fears of a global growth slowdown amid Donald Trump’s trade war.
Shell today revealed a dip in profits during the first quarter, days after BP did the same.
12:48 PM BST
Trump trade war carries ‘serious potential risks’, warns HSBC
HSBC has warned over the shift in global trade relations as posing “serious potential risks” to growth, as the bank navigates a series of “unknowns” over the economic outlook.
Executives at the bank said economic forecasts were more difficult to compile amid uncertainty over US president Donald Trump’s tariff policy.
HSBC’s chairman Mark Tucker, speaking at the bank’s annual general meeting (AGM), said there was an “uncertain geopolitical and macroeconomic environment globally”.
“Indeed whether it is trade, international security arrangements, or economic policy, we are experiencing a period of deep and profound change,” said Tucker, who announced this week his intention to retire before the end of the year.
“The overarching impact of the changing approach to global trade relations has been to increase economic uncertainty with serious potential risks to global growth.”
The range of possible outcomes from changing policy “make any attempt at medium-term projections very difficult”, he flagged.
“Despite the many unknowns that we are dealing with, we believe that the interconnectedness of the global economy remains compelling, as does global trade, the glue that keeps it all together,” Mr Tucker told shareholders.
Earlier this week, HSBC said significantly higher tariffs worldwide could bring down its revenues by a small amount, and also lead to an upsurge in bad debts.
11:56 AM BST
Pound edges higher ahead of US jobs figures
The pound edged higher against the dollar ahead of US jobs figures which are expected to show a drop in employment amid Donald Trump’s tariff war.
Sterling was up 0.1pc to $1.329, although it fell 0.4pc versus the euro, which was worth 85.3p.
The dollar fell despite signals that US-China trade talks could begin soon.
It comes as investors wait for nonfarm payrolls figures, which are expected to show the US economy added 90,000 fewer jobs in April compared to the previous month.
11:27 AM BST
Energy and defence stocks boost FTSE 100
Energy and defence stocks were the biggest gainers on the FTSE 100 as the UK’s flagship stock index seeks its longest winning streak on record.
The blue-chip index climbed 0.8pc as it was buoyed by hopes of trade talks between the US and China, as well as a flurry of solid earnings results and expected interest rate cuts.
Energy giant Shell rose as much as 4.4pc after posting a 28pc drop in first-quarter net profit on the back of weaker oil prices, which nevertheless beat analyst expectations.
Aerospace and defence companies Melrose Industries, BAE Systems and Babcock rallied as much as 3.5pc, 1.7pc and 2.6pc as Sir Keir Starmer touted an increase of defence spending during a speech at contractor Leonardo UK’s site in Bedfordshire today.
Emmanuel Cau of Barclays said hope of trade deals was trumping recession fears.
He said: “Equities took a round trip in April and are now almost back to pre-liberation day levels.
“Team Trump’s pivot towards a more conciliatory approach has managed to bring calm back and provide a floor to the markets.”
Education company Pearson led the fallers, tumbling as much as 4pc after reporting 1pc growth in underlying sales, which Morgan Stanley said missed estimates.
Lloyds Bank fell another 2.1pc after revealing this week that its pre-tax profit had slipped 7pc and it would set aside £309m on its balance sheet to deal with possible bad debts arising from the global trade war.
10:59 AM BST
NatWest shares hit 14-year high
Shares in NatWest rose to their highest level since 2011 as it moved a step closer towards private ownership.
The bank gained as much as 4.5pc on the FTSE 100, although it was last down 0.4pc, as it beat profits estimates.
The lender, which also incorporates Royal Bank of Scotland and Coutts, reported an operating pre-tax profit of £1.8bn for the first three months of 2025.
NatWest’s chief executive Paul Thwaite said the bank was expecting to report income at the “upper end” of its guidance for the full year, despite the increased global uncertainty.
The latest results come as the bank edges closer to privatisation, with the Government’s stake falling below 2pc on Thursday.
NatWest has said it would be a “symbolic moment” when it returns to private ownership after being bailed out by taxpayers during the financial crisis in 2008 and 2009.
10:35 AM BST
‘Door is open’ for interest rate cuts, say economists
The door for the Bank of England to cut interest rates has been opened by the uncertainty created by Donald Trump’s trade war, an economist has said.
Sanjay Raja of Deutsche Bank has forecasted the Monetary Policy Committee (MPC) to cut rates from 4.5pc to 4.25pc next week, with two of the nine members expected to vote for a 0.5pc cut.
He said: “Trade and policy uncertainty remain elevated. The labour market continues to loosen. Pay growth has slipped. And despite above-target inflation, CPI has tracked below the MPC’s modal projections.
“To be sure, price dynamics have been more encouraging of late. We think the door for a dovish pivot has opened.”
Mr Raja expects the MPC to revise lower its growth projections for 2025 and 2026 as the unfolding trade shock hits GDP, prompting three further rate cuts this year in August, November and December to 3.5pc.
Morgan Stanley predicted on Thursday that the Bank of England would cut interest rates five more times this year to 3.25pc.
10:10 AM BST
Eurozone inflation holds at 2.2pc
Eurozone inflation held steady last month, official figures showed after the European Central Bank (ECB) cut interest rates in the face of Donald Trump’s trade war.
Inflation in the currency bloc held at 2.2pc in April, which was higher than the 2.1pc forecast by economists.
A surge in services prices pushed up underlying inflation, which excludes volatile food and energy prices, from 2.4pc to 2.7pc, which was above expectations for 2.5pc.
While ECB policymakers normally place great emphasis on inflation figures – especially an increase – the US administration’s trade war with the rest of the world may be far important in the run up to the bank’s June 5 policy meeting.
For now, economists see a more than 80pc chance of another rate cut in June and see at least one more move before the end of the year, which would take the ECB’s deposit rate to 1.75pc or lower.
09:53 AM BST
US stocks close to recouping ‘liberation day’ losses
The S&P 500 is close to fully recovering the losses sustained since “liberation day” after it finished higher for an eighth straight session on Thursday.
The streak comprises a gain of 8.7pc, putting the index within 1.2pc of its April 2 close.
It marks the fastest eight session gain since November 2020 when markets surged after the announcement of a Pfizer vaccine offering a path out of the pandemic.
Jim Reid and Henry Allen of Deutsche Bank said the rapid recovery had painted over last month’s cracks.
They said: “If you just looked at the monthly equity returns in local currency terms, you could be forgiven for thinking it was a relatively uneventful month.
“But in reality it was historic, and it included the best day for the S&P 500 since October 2008, as well as its worst day since March 2020.”
09:31 AM BST
BASF sticks to profit guidance despite tariff ‘uncertainty’
German chemicals giant BASF stuck to its earnings outlook but warned of high levels of uncertainty amid turmoil unleashed by Donald Trump’s trade policies.
The company – a crucial supplier for the motoring, agriculture and construction sectors – said it was “more resilient than others” when it came to US tariffs due to its focus on producing locally.
In the US, more than 80pc of the group’s sales came from products manufactured in the country.
But the group warned: “The volatility of the tariff announcements and the unpredictability of other decisions by the United States, as well as possible countermeasures by trading partners, are causing a high level of uncertainty.”
Chief financial officer Dirk Elvermann said BASF had to consider indirect impacts of tariffs due to potential changes in demand in industries such as automotive and consumer goods.
It was currently hard to assess the full impact, he added.
Despite the uncertainty, BASF maintained its outlook for 2025, forecasting underlying earnings of between €8bn and €8.4bn (£6.8bn to £7.2bn) for 2025.
09:12 AM BST
FTSE 100 poised to break record amid hopes of US-China trade talks
The FTSE 100 is on track for its longest winning streak on record amid hopes that the US and China will soon begin talks on trade.
The UK’s blue-chip stock index was last up 0.8pc, putting it on track for a 15th consecutive daily increase.
This would be its longest run of positive days in a row in history, according to Bloomberg.
08:55 AM BST
Oil prices rise as China considers trade talks with US
Oil prices rose amid hopes that US-China trade talks could reignite demand.
Brent crude, the international benchmark, was up 0.2pc above $62 a barrel, although it remains on track for a weekly loss of more than 6pc.
Beijing said it is assessing an offer of talks from the US as the world’s two largest economies grapple with hefty tariffs against each other.
Crude has still shed about 16pc this year, touching a four-year low, as Donald Trump’s trade war has raised concerns about a economic downturn around the world that could hit demand.
Maria Agustina Patti of Exness said: “Given the potential impact of trade tension on global economic activity and energy demand, the prospect of reduced tensions supported a shift in outlook for crude.”
08:26 AM BST
European stocks surge amid hopes for US-China trade talks
European shares surged amid signs of a potential de-escalation of trade tensions between the US and China.
The Cac 40 in Paris surged by as much as 1.7pc while the Dax in Frankfurt leapt as much as 1.5pc.
The pan-European Stoxx 600 index rose 0.9pc after registering its second consecutive monthly drop on Wednesday.
China’s Commerce Ministry said that Beijing was “evaluating” an offer from Washington to hold talks over President Trump’s 145pc tariffs and that Beijing’s door was open for discussions.
Shell rose as much as 4.4pc after the oil giant reported a 28pc drop in first-quarter net profit but beat analyst expectations.
Standard Chartered rose as much as 3.1pc in London after the bank reported a 10pc quarterly profit rise.
Danske Bank rose 3.9pc after Denmark’s biggest lender kept its 2025 profit outlook unchanged as it reported forecast-beating first-quarter profits.
Airbus rose 3.6pc after the planemaker topped quarterly estimates across the board and reaffirmed its annual outlook.
The jump comes despite tech giant Apple on Thursday cutting its share buyback programme by $10bn and warning that tariffs could add about $900 million in costs this quarter.
08:15 AM BST
Irish growth to tumble on US tariffs impact, bank warns
Bank of Ireland has slashed its growth and jobs forecasts for the country, citing “recently emerging trade risks” from Donald Trump’s tariffs plan.
Irish GDP is now expected to grow by an average 3.6pc this year and next, compared with a previous estimate of 4.1pc, the bank said.
It said that the revision reflects both the likely impact of US tariffs on exports and “indirect impacts through lower consumer and investment spending.”
Employment will increase by 1.8pc for 2025, down from 2.2pc, the bank’s Economic Research Unit calculates, leading the joblessness rate to climb to 4.5pc by 2026 from 4.1pc in April.
Ireland is expected to be among the countries hardest hit by Trump’s tariffs, with goods shipped to the US last year worth €73bn (£62bn), almost a third of total exports.
Taoiseach Michael Martin had warned that the levies represent a “very grave and serious threat,” with a report from the government’s finance department warning that they could cost the country more than €18bn in lost trade.
The Bank of Ireland nevertheless said that the economy retains “strong momentum,” supported by public spending and favourable demographics.
08:05 AM BST
UK stocks surge at the open
The FTSE 100 surged at the start of trading amid hopes for a deal between the US and China to ease their tariff war.
The UK’s flagship stock index jumped 1pc to 8,583.51 while the mid-cap FTSE 250 climbed 0.4pc to 20,223.44.
07:57 AM BST
Standard Chartered ‘watchful’ of tariffs as profits rise
The boss of Standard Chartered warned about the “increased global economic and geopolitical complexity” faced by the bank in light of Donald Trump’s tariff war.
The emerging markets-focused lender unveiled better-than-expected profits in the first three months of the year, as underlying pre-tax profits rose 12pc on a constant currency basis to $2.3bn (£1.7bn).
Shares in Standard Chartered rose about 3.6pc in Hong Kong after the better-than-expected results, which came against a broader backdrop of tariffs and rising economic uncertainty.
Chief executive Bill Winters said: “The subsequent imposition of trade tariffs has increased global economic and geopolitical complexity, and we remain watchful of the external environment.
“But our ability to help clients manage their business and wealth across borders in times of volatility reinforces our confidence that we can continue to improve returns.”
07:44 AM BST
Shell profits hit by falling oil prices
Shell has revealed a dip in profits for the latest quarter, as it pushed ahead with investment plans and shareholder returns despite a recent drop in oil prices partially triggered by Donald Trump’s trade war.
The oil giant told shareholders that adjusted earnings dropped by 27.9pc to $5.6bn (£4.2bn) for the first quarter of 2025.
It came as President Trump’s tariff tirade raised concerns about a slowdown in the world economy, which has sent the price of oil below $60 a barrel amid concerns over demand.
Shell said it was also impacted by a $509m (£382m) charge related to UK windfall taxes but still announced another $3.5bn share buyback over the next three months.
Chief executive Wael Sawan said: “Shell delivered another solid set of results in the first quarter of 2025.”
07:30 AM BST
NatWest profits jump despite ‘increased uncertainty’
NatWest brushed off “increased global economic uncertainty” as it increased profits in the first three months of the year by more than analyst forecasts.
The taxpayer-backed bank revealed pre-tax operating profits climbed 21pc to £1.8bn, up from £1.3bn over the same period last year.
It generated more income compared with the same quarter last year, driven by more lending, higher customer deposits, and markets trading income.
NatWest’s chief executive Paul Thwaite said: “In the face of increased global economic uncertainty, our customers remain resilient and we saw good levels of activity through the first quarter of 2025.
“The strength of our balance sheet means we are well placed to help our customers navigate any challenges, whilst also investing in our business and delivering returns to shareholders.”
The latest results come as the bank edges closer to privatisation, with the Government’s stake falling below 2pc on Thursday.
07:02 AM BST
European stocks poised to rise amid ‘progress’ on US-China trade talks
European stocks markets were on track to rise at the open after analysts hailed the “progress” in potential trade talks between the US and China.
The FTSE 100 was up 0.5pc in premarket trading, while the Europe-wide Stoxx 50 gained 1.2pc. Germany’s Dax was up 1.5pc.
“This is a great move, no matter which side takes the initiative,” said Steven Leung, executive director at UOB Kay Hian Hong Kong.
However, many traders remained cautious.
“Is it progress? Yes, I would say that in terms of how hard the US side had pushed on the tariffs front,” said Amy Xie Patrickof Pendal Group in a Bloomberg TV interview.
“Is the uncertainty over? I very much doubt it.”
Matt Simpson, senior market analyst at City Index, said: “They (China) have struck a cautious tone, demanding that the US ‘show sincerity’ if they want trade talks.
“So while olive branch has been offered, you can hardly say China has ‘come crawling’ like Trump had hoped.”
07:01 AM BST
Stocks jump as China ‘evaluating US offer’ for trade talks
Stocks markets leapt higher after signs the US and China could begin talks soon aimed at easing the impact of Donald Trump’s trade war.
Beijing’s commerce ministry said it is “currently evaluating” an offer made by the US, insisting Washington had reached out for negotiations.
The Hang Seng in Hong Kong leapt 1.7pc and the Nikkei in Tokyo was up 1pc amid hopes for a reprieve from the 145pc duties imposed by the US on goods from China, with the world’s second largest economy hitting back with 125pc levies.
However, Beijing said any talks would require concessions from the US before they could begin.
“If the US wants to talk, it should show its sincerity to do so, be prepared to correct its wrong practices and cancel unilateral tariffs,” the ministry said.
President Trump has repeatedly claimed that China has reached out for talks on the tariffs, and this week said he believed there was a “very good chance we’re going to make a deal”.
06:45 AM BST
Good morning
Thanks for joining me. Stock markets have climbed after China said it was “currently evaluating” an offer from the US for talks on tariffs.
Japan and Hong Kong were higher after Beijing said Washington had reached out after President Trump suggested there was a “very good chance” of a deal between the world’s two largest economies.
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What happened overnight
Asian markets jumped after China said it was evaluating approaches from the US regarding President Donald Trump’s tariffs.
Hong Kong’s Hang Seng surged 1.7pc to 22,496.33, while markets in Shanghai were closed for a public holiday. Taiwan’s benchmark jumped 2.7pc to 20,787.64.
An unnamed Chinese Commerce Ministry spokesperson said Beijing had taken note of various statements by senior US officials indicating a willingness to negotiate over tariffs.
“At the same time, the US has recently taken the initiative to convey information to the Chinese side on a number of occasions through relevant parties, hoping to talk with the Chinese side.
“In this regard, the Chinese side is making an assessment,” it said.
Tokyo’s Nikkei 225 picked up 1pc to 36,827.58, while South Korea’s Kospi rose 0.3pc to 2,563.01.
Australia’s S&P/ASX 200 added 1pc to 8,226.80.
Microsoft and Meta Platforms led Wall Street higher Thursday after the Big Tech companies reported profits for the start of the year that were even bigger than analysts expected.
The S&P 500 rose 0.6pc for an eighth straight gain to 5,604.14, its longest winning streak since August.
The Dow Jones Industrial Average added 0.2pc to 40,752.96, and the Nasdaq Composite climbed 1.5pc to 17,710.74.
Microsoft rallied 7.6pc after the software giant said strength in its cloud computing and artificial intelligence businesses drove its overall revenue up 13pc from a year earlier.
Meta, the parent company of Facebook and Instagram, also topped analysts’ targets for revenue and profit in the latest quarter. It said AI tools helped boost its advertising revenue, and its stock climbed 4.2pc.