Well that all from us for today, thanks for following along. Be sure to join us again on Monday when we'll be back for more of the latest markets news and all that's happening across the global economy.

Until then, have a good weekend all!

While central bank interest rate decisions and developments on trade tariffs are likely to occupy much of investor focus in the coming week, there are also a number of companies still set to release earnings.

Analysts will be looking to Tencent's (0700.HK) annual results to see how the Chinese tech giant's investment in artificial intelligence (AI) is playing out, as competition in the space heats up.

In the chip sector, US semiconductor manufacturer Micron (MU) is due to release latest quarterly earnings, though guidance has already disappointed against expectations.

Meanwhile, investors will be keeping an eye on Nike's (NKE) latest results to see how the sportswear brand's turnaround efforts are progressing.

On the London market, investors will want to see how insurer Prudential (PRU.L) is performing against its long-term financial goals.

In the hospitality industry, investors will keeping an eye on commentary from JD Wetherspoon's (JDW.L) Tim Martin on how higher labour costs could impact the business.

Here's more on what to look out for

The Federal Reserve will hold off on cutting interest rates until September, according to economists.

The US central bank will keep rates steady amid fears the US faces stagflation and uncertainty over Donald Trump’s tariffs.

A group of economists surveyed by Bloomberg said the Fed will deliver two reductions before the end of 2025 with most dialling back forecasts for growth and upping projections for inflation.

Scott Anderson at BMO Capital Markets said:

A December poll had shown a consensus among economists expecting three cuts for 2025, but this forecast has now been reduced to two moves in September and December.

Jerome Powell, the Fed Chair, is widely expected to leave the central bank’s interest rate unchanged next week in a range of 4.25% to 4.5%.

Tate is cutting 7% of its workforce as the British arts institution seeks to address a funding deficit left over from the pandemic.

The Guardian has the details...

About 40 roles have been affected by the cuts, made through voluntary departures and recruitment freezes.

Tate, which has four galleries across London, Liverpool and Cornwall, said it had been working with staff for a number of months to achieve the reduction.

The spokesperson said Tate had achieved its goals “by not replacing vacant roles and by accepting voluntary exits, working closely with colleagues and unions over a number of months”.

While the number of domestic visitors to museums and galleries have returned to pre-pandemic levels, there continues to remain a reduction in the number of visitors from abroad. Overall visitor numbers are about three-quarters of pre-pandemic levels. This, combined with cuts to culture budgets, is putting pressure on institutions to reduce costs.

Germany’s incoming chancellor Friedrich Merz has said that he has secured the crucial backing of the Green party for a massive increase in state borrowing and reform of debt rules.

This clears the way for the outgoing parliament to approve it next week.

European shares, government bond yields and the euro soared higher on the back of the news.

As the end of the tax year fast approaches, savers and investors are being urged to make the most of their tax-efficient allowances before the reset.

Most personal tax thresholds are frozen until at least 2028, meaning millions of Brits will be pushed into higher tax bands this year.

With the 2024-25 tax year ending at midnight on 5 April, here’s a checklist of seven strategies by Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, to ensure your savings and investments remain as tax-efficient as possible

Tesla (TSLA) has warned that Donald Trump’s trade war could expose the electric carmaker to retaliatory tariffs that would also affect other automotive manufacturers in the US.

In an unsigned letter to Jamieson Greer, the US trade representative, Tesla said it “supports fair trade” but that the US administration should ensure it did not “inadvertently harm American companies”.

Tesla owner Elon Musk is a close ally of the US president and is leading efforts to reduce the size of the federal government.

It comes as Tesla's share price has dropped 40% since the start of the year.

Nearly three-quarters of Britons think that BNPL services are good alternatives to credit cards. But, according to a new study, the payment options might just be a new name for the same debt.

Secure Data Recovery UK asked over 1,500 Brits about their spending habits. The data showed:

• 20% of Britons admitted to missing at least one BNPL payment

• 66% say they're willing to spend more if there's a BNPL option

• Over 80% of respondents said that BNPL services encourage overspending

• 58% spend over £100 on a single purchase using BNPL

• Over a third of Britons have accrued some level of debt via BNPL purchases

It has been a quieter day in London with trading updates but let's take a quick look at what's been happening in equity markets this morning...

• Melrose Industries was the standout performer on the FTSE 100 as Citi reiterated its 'buy' rating on the stock, saying it "presents a compelling investment opportunity".

• Housebuilder Berkeley Group gained as it reaffirmed earnings guidance but said planned government regulatory changes were putting delivery of new homes under "significant" pressure.

• Heat treatment and thermal processing services firm Bodycote tumbled as it delivered a cautious outlook as it presented its full-year results, with end markets remaining mixed after a "challenging" 2024, in which adjusted operating profits grew only 1.1% to £129m.

• The company said the current run-rate profit performance is at similar levels to the second half, with challenging conditions in automotive and industrial markets combined with strong demand in aerospace and defence.

As the end of the tax year approaches, experts say it could be worth reviewing the investments in your individual savings account (ISA), to make the most of your annual allowance.

This tax year ends on 5 April, meaning the maximum annual allowance of £20,000 that you can put into an ISA will reset the day after.

That means investors still have a little time left to use any of remaining allowance by topping up this tax-free savings pot.

Hal Cook, senior investment analyst at Hargreaves Lansdown (HL.L), said: "This is a great time to review your ISA investments. You might still have some of your ISA allowance left. If so, then perhaps you could consider using it to make your ISA more diversified."

He explained that funds can be good way to diversify your investments but that it's important to make sure they are truly different.

"The problem is that determining exactly how diversified your portfolio is not always as easy as you might think," he said. "For example, an investor could buy a global fund, a US fund and a technology fund where there could be more overlap in these funds than it seems."

Read the full article here

The pound (GBPUSD=X) was flat against the dollar on Friday at $1.2950 at the time of writing, after data showed that the UK economy unexpectedly shrank in January.

The UK's gross domestic product (GDP) contracted by 0.1%, according to data released on Friday by the Office for National Statistics (ONS). This was below analysts' estimates of 0.1% growth and was down from 0.4% growth in December.

Sterling was also little changed against the euro (GBPEUR=X) on Friday morning, trading at €1.1917.

Frank Sohlleder, an analyst at ActivTrades, said:

The probability of an interest rate cut from the Bank of England’s meeting next Thursday has gone up very slightly since this morning's GDP data.

However, it is still highly unlikely Threadneedle Street will announce a reduction. Money markets estimate a chance of just over 8%, versus just below 7% yesterday.

Jamie Elvin, director at Strive Mortgages said:

Goldman Sachs has downgraded its projections for UK economic growth after the unexpected 0.1% contraction in January.

The Wall Street investment bank said it thinks the British economy will now grow 0.3% in the first quarter of this year, down from its previous projection of 0.4%.

It also predicted that the economy will expand by 0.9% this year, down from earlier forecasts of 1% after the “downside surprise” in UK GDP.

Inflation in Germany fell to 2.6% last month, coming in lower than previously thought.

The country’s federal statistics office (Destatis) initially estimated that annual inflation remained at 2.8% for the second month in a row.

It has also revised down the month-on-month change in inflation to 0.5% from 0.6%. Destatis did not give a reason for the revisions.

The national measure of inflation stayed at 2.3% in February, unrevised. Food and services prices drove up inflation while energy prices had a downward effect on the consumer price index.

Every McDonald's in Britain has been warned its owners could face legal action if they fail to take steps to protect staff from sexual abuse.

The BBC has the details...

The equality watchdog has written to all 1,400 branches telling them they must comply with their legal duties, or risk enforcement action, after a BBC investigation uncovered claims of a toxic culture of sexual assault and harassment.

In January, McDonald's workers told us they still faced sexual harassment more than a year after its chief executive promised to clean up behaviour at the fast-food chain.

McDonald's said it was "committed" to doing everything it can to ensure a safe working environment for all employees.

It added: "We are confident that the plan we have in place is working."

The BBC has exclusively seen the letter from the Equality and Human Rights Commission (EHRC).

Gold (GC=F) rose to a record overnight, coming within a whisker of $3,000-an-ounce.

Spot gold climbed toward $2,994, eclipsing the previous peak set on Thursday. Bullion has risen 2.6% this week, putting it on track for the biggest gain since November.

The precious metal has nearly doubled in the past five years, and is extending a strong annual gain seen in 2024.

It comes as president Donald Trump’s aggressive tariff agenda fanned concerns about the potential hit to growth, hurting demand for risk assets and aiding flows into bullion-backed funds.

The Conservative party have branded the Labour government a “growth killer” after the latest figures showed the economy had contracted 0.1% in January.

Shadow chancellor Mel Stride said:

Chancellor Rachel Reeves has responded to the drop in GDP. She said:

The UK economy unexpectedly shrunk 0.1% in January

Gross domestic product (GDP) fell during the month mostly thanks to a 0.9% fall in the production sector, according to the Office for National Statistics (ONS). This comes after 0.4% economic growth in December. Economists had expected the economy to grow by 0.1% in January.

Monthly services output grew by 0.1% in January, following 0.4% growth in December, while construction output fell by 0.2% following a same-sized decline in December.

The figures come ahead of the chancellor's spring statement, which is expected to include government spending cuts.

ONS director of economic statistics Liz McKeown said:

Asian markets shrugged off another decline on Wall Street last night, with markets in China gaining after state-run banks and other financial institutions were ordered to do more to help spur more consumer spending.

The Hang Seng (^HSI) jumped more than 2% in Hong Kong and the Shanghai Composite (000001.SS) was 1.8% up by the end of the session.

China’s National Financial Regulatory Administration issued a notice ordering financial institutions to help develop consumer finance and encourage use of credit cards, do more to aid borrowers who run into trouble, and be more transparent in their lending practices.

Economists say China needs consumers to spend more to get the economy out of the doldrums, although most have advocated broader, more fundamental reforms such as increasing wages, social welfare and support for public health and education.

The Nikkei (^N225) rose 0.7% on the day in Japan while South Korea’s Kospi (^KS11) slipped 0.3%.

Across the pond, Wall Street sank on Thursday with the S&P 500 (^GSPC) confirming it was in a correction as investors fled for safer assets amid Donald Trump’s latest tariff threats. The benchmark index finished more than 10pc below its most recent record high close, achieved on February 19.

The S&P 500 fell 1.4% to 5,521.52. The Dow Jones (^DJI) was also nearing a correction confirmation, ending 1.3% lower at 40,813.57, roughly 9.4% below its most recent record closing high.

The tech-heavy Nasdaq (^IXIC) fell 2% on the day, closing at 17,303.01. The index is now down more than 14% from its recent record after confirming a correction on 6 March.

In the bond market, US Treasury yields fell as the equities sell-off boosted demand for safe haven government debt. Yields move the opposite direction to bond prices.

The yield on benchmark 10-year US Treasury notes fell to 4.27%, from 4.32% late on Wednesday.