News

Shares in First Republic Bank tumbled yet again on Friday after a financial lifeline from large US banks that deposited $30bn into its accounts failed to calm investor fears. First Republic shares were trading down more than 20 per cent in the first session after 11 of the largest US banks, spearheaded by JPMorgan Chase,

The European Central Bank has raised interest rates by half a percentage point, sticking to its goal of fighting inflation despite financial turmoil caused by US bank failures and worries about Credit Suisse. The ECB’s decision to lift its benchmark deposit rate from 2.5 per cent to 3 per cent was in line with what

Jeremy Hunt has claimed Britain will become the best place to invest of any advanced economy after the chancellor put £9bn of business tax breaks at the heart of his “Budget for growth”. His first Budget also contained two big measures intended to keep people in work: a £5bn extension of free childcare in England

US inflation was high enough in February to further complicate the path forward for the Federal Reserve as it contends with three bank failures and broader concerns about financial stability. The consumer price index rose 6 per cent year on year last month, following a 0.4 per cent increase from the previous month, the Bureau

The failure of Silicon Valley Bank has torn into global markets, with investors ripping up their forecasts for further rises in interest rates and dumping bank stocks around the world. Government bond prices soared on Monday, with two-year US Treasury yields recording their biggest one-day drop since the financial crisis of 2008, as fund managers

The UK chancellor is preparing a dramatic intervention to provide a cash lifeline to scores of tech businesses next week as he seeks to contain the damage caused by the collapse of Silicon Valley Bank. Jeremy Hunt said there was “a serious risk” to tech and life sciences companies that used SVB’s UK bank, many

UK chancellor Jeremy Hunt was on Saturday locked in talks over how to stop the collapse of Silicon Valley Bank from dealing a heavy blow to Britain’s tech sector. More than 200 UK-based tech company executives have urged Downing Street to step in, warning that many companies faced an “existential threat” because they banked with

Silicon Valley Bank has abandoned its efforts to raise $2.25bn in new funding to cover losses on its bond portfolio and is looking for a buyer as it faces outflows from deposits. SVB shares were halted during early trading on New York’s Nasdaq exchange, as its management tried to reassure investors. California-based SVB had hoped

The US has privately urged some of the world’s largest commodity traders to shed concerns over shipping price-capped Russian oil, in a bid to keep supplies stable and regain some oversight of Moscow’s exports. US Department of Treasury officials met executives and traders at Trafigura and Gunvor among others, according to five people familiar with

The head of one of Britain’s largest insurers has decried the “perpetual drift” of companies away from London’s stock market, saying that a low-growth economy and political infighting had eroded the UK’s appeal. The decisions last week by CRH, the world’s largest building materials group, and UK chip designer Arm to shun London in favour

Jay Powell has warned the Federal Reserve is prepared to switch back to bigger interest rate rises if the US economy continues to grow too quickly, in remarks prepared for a high-stakes congressional appearance on Tuesday. Powell’s testimony marks the Fed chair’s first public intervention since data releases showed the central bank is still struggling

CBI boss Tony Danker has stepped aside following an allegation over his workplace conduct at the UK’s largest business group. The CBI on Monday said it had been told in January of an allegation regarding its director-general, which was investigated and dealt with “in line with CBI procedure”. It said the investigation “determined that the

The UK government’s flagship pledge to build 40 new hospitals by 2030 has been hit by inflation and officials are debating which projects to delay as the NHS capital budget faces a shortfall of close to £2bn by 2027/8. As Jeremy Hunt, the chancellor, prepares for the Budget on March 15, people close to the

The Financial Conduct Authority has been blamed by some UK officials and SoftBank staff for London losing out to New York on the blockbuster stock market listing of chip designer Arm. SoftBank, the Japanese owner of the Cambridge-based semiconductor company, this week dashed Rishi Sunak’s hopes of retaining the homegrown tech giant, rejecting entreaties from

Germany has asked Switzerland to sell some of its decommissioned Leopard 2 tanks as it struggles to cobble together two battalions of the fighting vehicles to send to Ukraine. Berlin has requested that its neighbour sell some of its 96 mothballed Leopard 2 tanks to the German arms producer Rheinmetall. That could allow European countries

The world’s largest building materials company CRH is planning to move its listing from London to New York in a fresh blow to the UK’s capital market. The company, which has a market capitalisation of almost £30bn, is the latest UK-listed company to embark on a move to New York. Last year, Ferguson, the plumbing

Andrew Bailey has signalled that financial markets have been wrong in their growing belief over the past month that the Bank of England will need to impose many more interest rate rises to bring inflation under control. Speaking at a cost of living conference in London on Wednesday, the BoE governor said the central bank

Rishi Sunak has hinted the UK government will press ahead with his new Brexit deal for Northern Ireland even if it is rejected by the Democratic Unionist party, saying the agreement was not about “any one political party”. The British prime minister arrived in Belfast on Tuesday to sell this week’s agreement with the EU

UK prime minister Rishi Sunak is to claim he has negotiated “fundamental” changes to EU rules for Northern Ireland trade, as Brexiters hit out at a planned meeting between the European Commission president and King Charles. In a bid to end the row that has overshadowed UK ties with the EU since Brexit three years

The record-breaking global bond market rally since the start of this year has fizzled out as mounting signs of persistent inflation force investors to reverse their views on the likely future path of interest rate rises. Investors rushed into fixed income in the first few weeks of 2023 as they became increasingly expectant that the