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The pound headed back towards its highest level in three years against the dollar on Monday amid growing worries over the effect of Donald Trump’s trade policies.
Sterling climbed 0.7pc against the dollar to as much as $1.356.
The move extends a rally for the pound that began at the start of the year as Mr Trump came to power.
It came as Goldman Sachs warned that the US president’s plan to increase his metal tariffs from 25pc to 50pc “may be contributing” to the sales of the US currency, as well as a decline in stocks.
Meanwhile, China accused the US of breaking the terms of a trade agreement made last month. Last week, Mr Trump claimed that China had “totally violated” the deal.
China’s Commerce Ministry said on Monday that it would take forceful measures to safeguard its interests.
A White House official told CNBC that Mr Trump and Chinese leader Xi Jinping will have a call “very soon” but probably not today. Scott Bessent, the US Treasury secretary, yesterday said a one-on-one call would allow the dispute to be “ironed out”.
The dollar dropped 0.7pc to 142.9 yen, giving back some of its more than 1pc rally from last week.
The euro gained 0.6pc to $1.14. The pound was up 0.2pc against the single currency at €1.18 amid expectations the European Central Bank will cut interest rates later this week.
Meanwhile, the price of gold rose to near an all-time high.
An ounce of gold reached $3,377, an increase of 2.5pc, or 43.7pc since the start of the year.
Read the latest updates below.
06:17 PM BST
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05:37 PM BST
European shares stumble on Trump’s new tariff threat
European shares began June on a dour note as markets grappled with Donald Trump’s new tariff plans that threatened to reignite a fresh wave of global trade tensions.
The continent-wide Stoxx 600 slipped 0.1pc on Monday, after recording about a 4pc gain in May.
Late on Friday, Trump said he planned to increase tariffs on imported steel and aluminium to 50pc from 25[c, to which the European Union said it was prepared to retaliate.
Steel companies as ArcelorMittal and Aperam pared some losses and closed marginally lower.
The automobile sector, however, bore the brunt of the trade jitters, falling 2.1pc, the most among sectors.
Milan-listed Stellantis down 5pc. Mercedes-Benz, BMW and Volkswagen fell between 1.9pc and 2.7pc.
Even Luxury stocks, reliant on global exports, dropped.
“The market was definitely in what we would call risk off mode,” said Steve Sosnick, chief market analyst at Interactive Brokers.
“But each piece of rhetoric is having less of an effect than the prior ones because markets have mostly learned to shrug it off. Yet it cannot be shrugged off entirely.”
05:34 PM BST
Trump’s steel tariffs ‘won’t last three months’
Donald Trump’s latest hike to steel tariffs are a counterproductive “surprise”, a leading steel analyst has said.
Josh Spoores, of analysis firm CRU, told CNBC: “This was an absolute surprise. Already steel prices in the US are higher than anywhere else, and it is a net importer which needs to have volumes coming in. All this does is raise prices there.”
He added: “I don’t expect this to be policy in three months. Even three weeks it’s unclear.
“These tariffs are at such a high level and in the US they will affect a massive community of manufacturers which make a huge contribution to GDP and employment, so there will be lobbying on this.”
04:56 PM BST
FTSE closes flat as European markets struggle
Shares in London ended the day flat, while key European rivals lost ground.
Markets were pessimistic amid rekindled trade tensions after Donald Trump’s announcement late on Friday that he intends to double tariffs on imported steel and aluminium to 50pc, starting June 4. The move drew promises of retaliation from the European Union.
Oliver Pursche, of Wealthspire Advisors in New York, said: “(Markets are) reacting negatively because the consequences of insecurity are real, right? Investors are unsure of what comes next.
“That makes it difficult to make decisions, and while President Trump has changed his mind frequently we also know that his ego is such that he’s willing to dig his heels in.
“Things like the TACO acronym (Trump Always Chickens Out) infuriate him and the concern should be, does that mean that he is not going to pivot and back down?”
France’s Cac 40 and Germany’s Dax both lost 0.2pc. Currently, the Dow Jones is down 0.4pc, the S&P is roughly flat, and the Nasdaq is up 0.3pc.
04:36 PM BST
EU prepares ‘countermeasures’ if a tariff deal with the US crumbles
The European Union has said it is preparing “countermeasures” against the United States after the Trump administration’s surprise tariffs on steel rattled global markets and complicated the ongoing, wider tariff negotiations between Brussels and Washington.
Last week, ahead of Friday’s surprise announcement, European Commission president Ursula von der Leyen and Donald Trump agreed to “accelerate talks” on a deal.
“In the event that our negotiations do not lead to a balanced outcome, the EU is prepared to impose countermeasures, including in response to this latest tariff increase,” a Commission spokesman said.
He said the EU is finalising an expanded list of countermeasures that would take effect on July 14 or earlier.
04:08 PM BST
Wall Street struggles after Trump’s steel tariff threat
Wall Street is struggling this afternoon after Donald Trump said he plans to double tariffs on imported steel and aluminium.
The three main indexes opened in negative territory, although the Nasdaq is now roughly flat.
The S&P 500 is down 0.2pc and the Dow Jones is down 0.4pc.
Shares of US steel companies rose, with Cleveland-Cliffs jumping 24.6pc, Nucor up 9.7pc and Steel Dynamics 10.1pc higher.
However, shares of carmakers fell. Ford is down 3.5pc and General Motors is down 4.3pc.
“People have been thinking about that (steel tariffs) and trying to formulate the economic impact. It presents the markets with a lot of uncertainty right now,” said Peter Andersen, founder at Andersen Capital Management.
04:01 PM BST
Norwegians flock to buy Teslas despite ties to Trump
Norwegians have flocked back to Elon Musk’s car company after it offered zero-interest loans and a new Model Y, now the best-selling car in the country for three months running.
For the first five months of the year, Tesla sales increased by 8.3pc - lower than the overall new car market which grew by 30.6pc.
Over that period, Tesla had a market share of 12.9pc, second to German auto giant Volkswagen.
Jonathan Parr, an analyst at used-car dealer Rebil, told broadcaster TV2 that “ultimately, it’s the price that Norwegian motorists care about most.”
“Norwegians don’t like Musk but feel no shame owning a Tesla,” Mr Parr explained.
However, new figures for France show that Tesla sold just 721 cars last month in France, a plunge of 67pc compared with a year earlier.
Tesla sales fell by half in the European Union in April, according to the European Automobile Manufacturers’ Association (ACEA).
The company’s EU market share dropped to 1.1pc amid growing competition from Chinese rivals and consumers protesting Mr Musk’s politics and ties to Donald Trump.
03:38 PM BST
Gold rises on trade war worries
The price of gold has risen today to near an all-time high as traders became more pessimistic about the state of global trade.
An ounce of gold reached to $3,377, an increase of 2.5pc today, or 43.7pc since the start of the year.
David Morrison, senior market analyst at Trade Nation, said: “The area around here acted as resistance on several occasions during April and May. So traders should keep an eye on this level to see if resistance continues to hold, or if gold can build up enough upside momentum for a break above.”
03:33 PM BST
Dollar slump deepens as US factory output weakens
The dollar fell further against major currencies as Donald Trump’s tariff regime triggered a slump in US manufacturing exports and imports.
The pound was up 0.8pc against the dollar to $1.356, while the euro was up 0.9pc to $1.144.
US factory activity contracted for the fourth month in a row in May, with export orders falling to a five-year low, according to the Institute of Supply Management’s (ISM’s) manufacturing index.
Factory imports plunged to their lowest level since 2009 as the US president imposed tariffs on goods entering the American economy.
Alexandra Brown of Capital Economics said: “The surprise decline in the ISM manufacturing index in May indicates that tariffs continue to weigh significantly on the sector.”
She said the data showed that companies “drew down on their large inventories previously stockpiled to avoid tariffs”.
03:14 PM BST
US factory imports plunge to 16-year low amid tariff turmoil
US factories last month imported the lowest number of goods since 2009, according to a closely watched survey, as companies adapted to Donald Trump’s tariff regime.
The Institute of Supply Management’s (ISM’s) manufacturing index showed one of the largest monthly slides on record for its measure of imports to 39.9, the lowest level in 16 years.
It was a sharp turnaround since the start of the year, when companies were importing more goods to get ahead of the US president’s tariff plans.
But in a worrying sign for the American economy, export orders also plunged to a five-year low of 40.1.
Susan Spence of ISM said: “In May, US manufacturing activity slipped further into contraction after expanding only marginally in February.
“Contraction in most of the indexes that measure demand and output have slowed, while inputs have started to weaken.”
02:57 PM BST
End of globalisation ‘would hit Britain harder than any country in Europe’
Britain has more to lose from the end of globalisation than any other nation in Europe, the Organisation for Economic Co-operation and Development (OECD) has warned.
Any attempts to slash imports and force supply chains back to the UK’s shores would result in a major recession, according to the international analysts, whilst simultaneously failing to make the economy any more resilient.
The pandemic, Russia’s war in Ukraine, and Donald Trump’s fears over the scale of US imports have raised fears over the vulnerabilities of Western economies to chaos in international trade.
But the OECD said that efforts to reduce these risks by abandoning global commerce and focusing on local production would prove expensive failures.
If all nations reject globalisation, it warned the global economy would face a blow of more than 5pc of GDP – raising the prospect of a major worldwide recession.
Britain would be among the hardest hit, losing around 12pc of GDP, in a major blow to an economy which is already struggling to achieve any sustained strong expansion. Only Canada stands to lose a greater share of its economic output, according to the OECD analysis.
France and Germany are also highly exposed, the economists said, while the US and China, with their own vast domestic markets, are more insulated from shocks to international trading patterns.
“Efforts to relocalise supply chains could decrease global trade by over 18pc and reduce global real GDP by more than 5pc,” the OECD said.
“Yet, these measures do not consistently improve resilience. In fact, GDP volatility increased in more than half of the economies modelled, challenging claims that relocalisation is inherently more stable.”
02:49 PM BST
Goldman Sachs blames Trump steel tariffs for dollar slump
Donald Trump has pushed down the value of the dollar with his decision to ramp up tariffs on steel and aluminium, according to a Wall Street banking giant.
Goldman Sachs said the US president’s plan to increase his metal tariffs from 25pc to 50pc “may be contributing” to the sales of the US currency, as well as a decline in stocks.
The dollar has slumped across major global currencies today, with the pound up as much as 0.7pc to $1.355, close to a three-year high.
Meanwhile, stock markets opened lower on Wall Street, following downward moves across Europe and Asia. The FTSE 100 was broadly flat.
Ulrike Hoffman-Burchardi at UBS Global Wealth Management said: “We continue to expect market volatility as investors digest fresh tariff headlines and incoming US economic data.”
02:36 PM BST
Wall Street slumps as Trump prepares to ramp up tariffs
The main US stock indexes opened lower after Donald Trump revealed plans to double tariffs on imported steel and aluminium and accused China of violating its trade agreement with the US.
The Dow Jones Industrial Average fell 70.1 points, or 0.2pc, at the open to 42,199.94.
The S&P 500 fell 15.0 points, or 0.3pc, to 5896.68​, while the Nasdaq Composite dropped 50.7 points, or 0.3pc, to 19,063.06.
02:17 PM BST
Metal prices surge as Trump ramps up steel tariffs
US factories face surging prices after Donald Trump announced plans to increase tariffs on steel and aluminium this week.
Contracts linked to the price of aluminium have jumped 54pc today to the highest since 2013, giving bosses a glimpse of the price hikes they will face in the near future.
The US president said on Friday that he would raise tariffs on steel and aluminium imports from 25pc to 50pc from Wednesday.
Citigroup analysts said the tariffs on aluminium in particular have “mostly just functioned as a tax on consumers thus far”.
Aluminium used in everything from beer cans to engine blocks and window frames was priced at a premium of 58 cents a pound, or about $1,280 a ton, on the Comex exchange in New York.
This suggests US buyers could end up paying about 50pc more than international competitors to get hold of the metal, according to Bloomberg.
President Trump wants to encourage US companies to buy American metals.
It has helped the share prices of US steel makers to rise in premarket trading in New York today, with Cleveland-Cliffs jumped 23.8pc, Nucor was up 13.2pc and Steel Dynamics was 12.5pc higher.
02:01 PM BST
Elon Musk ally loses Trump’s backing for Nasa top job
Donald Trump has dropped a SpaceX astronaut as his candidate to lead Nasa just hours after Elon Musk left the White House.
Jared Isaacman, a technology entrepreneur who has flown on two missions for Mr Musk’s rocket business, had been tipped to lead Nasa under Mr Trump.
However, the president said on Sunday he had withdrawn his nomination “after a thorough review of prior associations”.
Some Republicans had raised questions about Mr Isaacman’s past political donations. The entrepreneur had previously donated hundreds of thousands of dollars to Democrat politicians, although he also gave $2m (£1.5m) to Mr Trump’s inauguration fund last year.
01:44 PM BST
Borrowing costs rise amid defence spending fears
Government borrowing costs have been pushed higher amid concerns that Sir Keir Starmer’s defence spending plans will make it harder for Britain to balance the public finances.
The 10-year gilt yield was last up slightly at about 4.66pc, also helping strengthen the pound, which remains 0.7pc higher against the dollar today.
The Prime Minister committed to increasing defence spending to 2.5pc of GDP by 2027 and set out an “ambition” to hit 3pc by 2034.
It comes in the lead up to the publication of the Spending Review next week, when government departments will learn how much they have to spend in the coming years.
However, there are worries that Chancellor Rachel Reeves will be left in a difficult position by Britain’s spending plans, having already left herself fiscal headroom of just £10bn.
Deutsche Bank senior economist Sanjay Raja said: “Fiscal constraints will... limit how much the UK can invest into its defence arsenal – prompting questions around the sustainability of the government’s fiscal framework.
He added: “The Chancellor also has historically low buffers against the Government’s fiscal headroom, with nearly £10bn set aside against the primary stability rule, and £16bn more set aside against the Chancellor’s investment rule.
“In reality, given the Trump tariffs and current market conditioning assumptions, geopolitical and domestic headwinds will only drag the Chancellor’s fiscal headroom lower – likely back into negative territory, further tightening the Government’s ability to ramp up defence spending.”
12:57 PM BST
Bank of Russia under pressure to cut rates as Putin’s war economy falters
The Bank of Russia governor faces pressure to cut interest rates as Vladimir Putin’s war economy risks recession.
The Kremlin expects Elvira Nabiullina to reduce the benchmark rate as the impact is felt on the country’s budget and industries, according to Bloomberg.
Olga Belenkaya, an economist at Finam, said the central bank now must choose “between two risks” of either holding rates, which could cause a recession, or letting inflation spiral out of control.
Interest rates in Russia have stood at 21pc since October in an effort to bring down inflation which surged above 10pc last year, well above its 4pc target.
The Bank’s next policy meeting is scheduled for Friday.
12:33 PM BST
Lagarde’s master plan to vanquish the dollar
Despite the tough talk about slapping 50pc tariffs on the EU, Donald Trump has given Brussels a golden opportunity.
After years of disappointment, false hope and crises, the euro could at last wrest international dominance away from the dollar to become a – and possibly the – global reserve currency of choice.
Or so Christine Lagarde hopes. The president of the European Central Bank (ECB) set out her master plan last week to at long last fulfil the dream of leading the financial world.
“Moments of change can also be moments of opportunity. The ongoing changes create the opening for a ‘global euro moment’,” she said in a speech in Berlin, in which she retold the story of the pound losing its dominance a century ago amid the rise of the US dollar.
12:08 PM BST
US stocks to fall as Trump ramps up trade war
Wall Street is on track for a weak start to the month after Donald Trump announced plans to double metal tariffs and entered a fresh spat with China.
The US president said he would raised duties on imported steel and aluminium from 25pc to 50pc, hours after he accused China of violating its trade deal with America.
China hit back today with claims the US is breaking the terms of the agreement made in Geneva last month, sending stock markets lower around the world.
The S&P 500 had ended May with its best monthly performance since November 2023 but was down 0.5pc in premarket trading.
The Dow Jones Industrial Average was 0.4pc lower ahead of the opening bell, while the Nasdaq 100 had dropped 0.6pc.
However, shares of US steel companies rose in premarket trading, with Cleveland-Cliffs jumping 26.2pc, Nucor up 14.1pc and Steel Dynamics 13.4pc higher.
11:47 AM BST
Oil surges over Ukraine and Iran fears
Oil prices have jumped sharply amid a range of geopolitical concerns.
Brent crude was up 3.3pc to nearly $65 a barrel after Ukraine attacked Russian air bases with drones, raising concerns about a deepening of the war despite US efforts to broker a peace deal.
Meanwhile, Iran criticised a report showing it has increased stockpiles of enriched uranium, which could lead to an increase in oil sanctions.
Also driving prices higher was the decision by oil cartel Opec to hike output in July by the same amount as it was for June, which came as a relief to those who expected a bigger increase.
Keshav Lohiya of consultancy Oilytics said: “The worst of the fears was laid to rest.”
It helped drive energy companies across the FTSE 350 as much as 1.3pc higher.
11:23 AM BST
BYD plunges as China fears ‘hidden dangers’ of price war
BYD suffered a sharp drop in its share price after Beijing warned that an electric vehicle price war risked damaging the “Made in China” brand.
The Chinese electric car maker sank 2.4pc today – taking its losses over the last week to 17pc – following an article in The People’s Daily on Sunday, considered the mouthpiece of the Communist Party.
The piece warned of “hidden dangers” of a price war, adding that “low-cost and low-quality products” would “greatly consume the international image and reputation that ‘Made in China’ has accumulated with great difficulty”.
BYD has slashed the price of its electric vehicles (EVs) in China as it steps up its war with Tesla.
The Chinese EV maker is now selling its entry-level car for 75pc less than the cheapest Tesla after cutting the price of the Seagull hatchback by 20pc to 55,800 yuan (£5,712).
The article in The People’s Daily said: “Don’t distort business logic under the coercion of capital, and only use price wars to pursue short-term market value and stock price.
“Otherwise, after the capital is cashed out and leaves, the industry will only be left with an empty shell of ‘losing money and making money’.”
10:54 AM BST
Stocks down over US-China trade war fears
UK and European shares retreated after Donald Trump’s new tariff plans threatened to rekindle global trade tensions.
The FTSE 100 was down 0.1pc while the mid-cap FTSE 250 slipped 0.2pc after the US president said he would increase tariffs on steel and aluminium from 25pc to 50pc.
Mining stocks across the FTSE 350 edged lower, while European steel companies such as ArcelorMittal and Aperam were down about 1pc each.
The Cac 40 in Paris fell 0.5pc and the Dax in Frankfurt fell 0.4pc as China accused the US of violating a trade agreement made in Switzerland last month after President Trump made a similar accusation against Beijing on Friday.
Car makers saw the biggest impact, with Milan-listed Stellantis down 3pc. Mercedes-Benz, BMW and Volkswagen fell between 1.4pc and 2pc.
Luxury stocks, among Europe’s exports, also dipped around 1.6pc.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: “The latest announcement renews tensions... it’s also an indication that the trade negotiations may not be going toward the right direction.
“The trade tensions have a very direct impact on the luxury sales, because for the biggest exports of the major European companies, America is one of the biggest markets.”
10:24 AM BST
Dollar to hit pandemic-era lows, warns Wall Street giant
The value of the dollar will plunge to levels last seen during the pandemic, Morgan Stanley has warned, as the US economy is hit by weaker growth.
The US currency will drop about 9pc by this time next year, the Wall Street bank said, in the fallout from the turmoil caused by Donald Trump’s trade war.
The dollar has already dropped 9pc against other major global currencies so far this year as the US president’s trade policy raised concerns about the dominance of the American economy. The pound was last up 0.8pc against the dollar at $1.355.
Morgan Stanley analyst Matthew Hornbach said: “We think rates and currency markets have embarked on sizeable trends that will be sustained – taking the dollar much lower.”
10:05 AM BST
US will never default on its debt, claims Trump’s Treasury Secretary
The US will never default on its debts, Donald Trump’s Treasury Secretary has claimed, as he sought to downplay growing concerns over the state of the country’s public finances.
Scott Bessent told CBS news on Sunday that the US was “on the warning track” but insisted it would not run out of cash despite approaching the so-called debt ceiling – the legal limit that the US government is permitted to borrow.
He said: “I will say the United States of America is never going to default. That is never going to happen. We are on the warning track and we will never hit the wall.”
09:37 AM BST
UK factory output slumps amid trade fears
Manufacturing activity declined in Britain for the eighth month in a row amid global trade tensions, a closely watched survey showed.
The S&P Global UK Manufacturing PMI stood at 46.4 in May, up from 45.4 in April and above the earlier flash estimate of 45.1.
However, it remained below the 50 mark separating growth from contraction as new business orders slumped.
Rob Dobson, director at S&P Global Market Intelligence, said: “May PMI data indicate that UK manufacturing faces major challenges, including turbulent market conditions, trade uncertainties, low client confidence and rising tax-related wage costs.
“Downturns in output, new orders and new export business have continued, and business optimism has stayed subdued by the historical standards of the survey.
“Smaller manufacturers are experiencing the sharpest pinch, registering the steepest retrenchments in output and demand and seeing their confidence slump to a near record low.
“Job losses are also rising across manufacturing, with the rate of decline in employment gathering pace.”
09:06 AM BST
European steel-makers at risk as Trump escalates tariffs
Donald Trump’s plan to raise tariffs on steel risks catching European steel-makers in the crossfire of the US-China trade war, analysts have warned.
Cole Hathorn, an analyst at Jefferies, said: “The US is a net importer of steel, and a potential increase in US steel tariffs to 50pc (from 25pc), would be an overall headwind for EU listed steel companies which export volumes to the US.
“It also likely negatively impacts wider steel & end-product demand due to global trade uncertainty.”
Kathleen Brooks, an analyst at XTB, added: “The US tariff plans are fluid, and over the weekend, the US President doubled the tariffs on steel and aluminium.
“This was designed to hurt Chinese producers, however, it will also hurt European producers, and it may open the door to a more aggressive approach to tariffs from the White House, and more retaliation from China, something that financial markets thought had been put to bed in mid-April.
“2025 is becoming the year not to take anything for granted. Equity market volatility eased in May, yet it could easily pick up again in June, if trade tensions emerge.”
So far, UK steel-makers have held up, with industrial metal miners shares rising 0.4pc across the FTSE 100 and FTSE 250 today.
08:40 AM BST
Pound nears three-year high as US-China tensions mount
The pound was heading back towards its highest level in three years after China accused the US of breaking the terms of a trade agreement made last month.
Sterling climbed 0.7pc against the dollar to $1.354 as Beijing hit back against accusations from Donald Trump on Friday that it violated an agreement on critical minerals shipments.
China’s Commerce Ministry said on Monday the charges were “groundless,” and promised to take forceful measures to safeguard its interests.
Treasury Secretary Scott Bessent said on Sunday that Trump and Chinese leader Xi Jinping will likely have a call soon, and “this will be ironed out”.
The dollar dropped 0.7pc to 143.1 yen, giving back some of its more than 1% rally from last week.
The euro gained 0.6pc to $1.141. The pound was up 0.1pc against the single currency at €1.187 amid expectations the European Central Bank will cut interest rates later this week.
08:27 AM BST
Government borrowing costs rise as China threatens US over trade
The cost of government borrowing has risen after China accused the US of violating the tariff agreement between the world’s two largest economies.
The yield on 10-year UK gilts climbed four basis points to 4.69pc amid the re-escalation of trade tensions.
Eurozone bond yields were also higher despite expectations that the European Central Bank will cut interest rates later this week, which would be its eighth reduction since last summer.
Germany’s 10-year bund yield, the benchmark for the single currency area, was up nearly five basis points to 2.54pc.
US president Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminium from 25pc to 50pc, ratcheting up pressure on global steel producers and deepening his trade war.
08:05 AM BST
UK stocks subdued amid trade fears
Stock markets in London made a lacklustre start to the week amid deepening trade tensions between the US and China.
The FTSE 100 edged up 0.1pc to 8,781.09 while the mid-cap FTSE 250 fell 0.1pc to 21,002.41.
07:54 AM BST
Vodafone completes £15bn mega-merger with Three
In more positive news for the City, Vodafone has completed its £15bn mega-merger with Three UK in a deal creating a “new force in UK mobile”.
The mobile phone giant said the merger officially completed on Saturday.
VodafoneThree – now the biggest mobile phone network in the UK – pledged to invest £11bn over the next 10 years to help boost its 5G capability, with £1.3bn being spent this financial year, following the tie-up.
Chief executive Margherita Della Valle said: “The merger will create a new force in UK mobile, transform the country’s digital infrastructure and propel the UK to the forefront of European connectivity.
“We are now eager to kick off our network build and rapidly bring customers greater coverage and superior network quality.
“The transaction completes the reshaping of Vodafone in Europe, and following this period of transition we are now well positioned for growth ahead.”
07:47 AM BST
Indivior to quit UK stock market for US in blow for City
Indivior has announced plans to delist its shares from the London Stock Exchange (LSE), becoming the latest company to abandon the UK market for the US.
The drug maker said it wanted to remain on the US’s Nasdaq index, having moved its primary listing overseas last year.
Cancelling its secondary listing in London eliminates “cost of complexity”, while it said liquidity on the Nasdaq now “far outweighs” that of the LSE with a greater level of trading.
Chairman David Wheadon said: “A single primary listing on Nasdaq best reflects the profile of Indivior’s business.”
The LSE faced an exodus of companies over 2024, while it has failed to attract as many new listings.
07:38 AM BST
China growth ‘to slow to 3.5pc this year’
China’s economy had shown signs of recovery before the latest renewal of trade tensions between Washington and Beijing, according to a closely watched survey.
The official manufacturing PMI – a measure of factory output – rebounded from 49 in April to 49.5 in May after the truce agreed in Geneva, while the overall official reading rose from 50.2 to 50.4.
Zichun Huang of Capital Economics said: “The recovery in the official PMIs reflects the impact of last month’s US-China trade truce.
“But with tariffs set to remain high and structural headwinds persisting, we expect growth to slow to just 3.5pc this year.”
07:22 AM BST
Gold rises as China-US tensions ramp up
The price of gold rose as investors sought out the safe haven metal amid increasing concerns about renewed trade tensions between the US and China.
Bullion was up 1.2pc to more than $3,333 an ounce after China hit back at Donald Trump’s claims it had violated the tariff deal agreed in Geneva in May.
Deutsche Bank analyst Jim Reid said it is “really hard to keep up or predict what’s going to happen on trade at the moment”.
He said: “For now it seems likely that the tariff uncertainty will linger for a long time ahead even if we’re still likely past the peak aggressiveness of US policy.”
07:21 AM BST
China accuses Trump of violating trade deal
China has accused Donald Trump’s administration of violating its trade deal with the US in the latest re-escalation of the tariff war between the world’s two largest economies.
Beijing said Washington had introduced multiple “discriminatory restrictive” measures as it hit back at the US president’s claim on Friday that it had broken the agreement made in Switzerland last month.
The Chinese Ministry of Commerce said those measures included issuing guidance on AI chip export controls, halting sales of chip design software to China and revoking visas for its students.
Asian shares plunged as trade tensions flared up again, with the Hang Seng in Hong Kong down 1.6pc and the Nikkei in Japan down 1.4pc.
China’s Commerce Ministry said: “The US government has unilaterally and repeatedly provoked new economic and trade frictions, exacerbating uncertainty and instability in bilateral economic and trade relations.”
It added: “If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests.”
07:11 AM BST
Good morning
Thanks for joining me. China said the US had violated the trade deal agreed between the world’s two largest economies in the latest re-escalation of economic tensions.
Beijing hit back after Donald Trump on Friday said China had broken the terms of an agreement made in Switzerland last month.
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What happened overnight
Asian stock markets and the dollar fell amid the deepening US-China trade tensions.
Caution reigned as Japan’s Nikkei fell 1.3pc to 37,485.10, while Hong Kong’s Hang Seng dropped 1.6pc to 22,908.25.
South Korean stocks edged up 0.2% on hopes a snap presidential election on Tuesday would deliver a clear winner.
However, shares in South Korean and Vietnamese steelmakers dropped in reaction to Donald Trump’s threat late Friday to double tariffs on imported steel and aluminium to 50pc from Wednesday.
Speaking on Sunday, Treasury Secretary Scott Bessent said Trump would soon speak with Chinese President Xi Jinping to iron out a dispute over critical minerals.
The dollar slipped 0.4pc on the yen to 143.47, while the euro edged up 0.2pc to $1.1370.