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| Britain faces tax rises to eliminate deficit; trade war fears weigh on markets - as it happened | |
| (about 1 hour later) | |
| And finally, Wall Street has closed lower for the third day running. | |
| Dow closes more than 200 points lower, as Boeing slides on fears of a China trade war https://t.co/mn8zwQpLFs pic.twitter.com/ugGU45h4Nx | |
| Jitters over the possibility of a trade war with China saw the Dow Jones Industrial Average finish 247 points lower at 24,759.39, a drop of 1%. | |
| The S&P 500 lost 0.6%, while the Nasdaq dipped by 0.2%. | |
| Traders are now pondering the prospect of Larry Kudlow joining the White House; as a critic of tariffs, could he steer Trump away? | |
| "My immediate reaction was, 'Yes, I'm honored to take the job'," says Larry Kudlow, President Trump's choice for chair of the National Economic Council. pic.twitter.com/s9wPEvZKcC | |
| Here’s our news story about Kudlow’s appointment: | |
| That’s all for tonight. GW | |
| Three-quarters of the 30 stocks on the Dow Jones industrial average are now in the red, pulling the index down by 253 points, or just over 1%. | Three-quarters of the 30 stocks on the Dow Jones industrial average are now in the red, pulling the index down by 253 points, or just over 1%. |
| Chemicals group DowDuPont is now leading the selloff, down 1.95%, followed by airline maker Boeing (-1.8%), consumer goods producer Johnson & Johnson (-1.3%) and pharmaceuticals firm Pfizer. | Chemicals group DowDuPont is now leading the selloff, down 1.95%, followed by airline maker Boeing (-1.8%), consumer goods producer Johnson & Johnson (-1.3%) and pharmaceuticals firm Pfizer. |
| The prospect of an escalating trade war, involving China, is worrying Wall Street. | The prospect of an escalating trade war, involving China, is worrying Wall Street. |
| Yesterday, it was reported that Donald Trump was seeking to impose tariffs on up to $60bn of Chinese imports, and could target the technology and telecommunications sectors. | Yesterday, it was reported that Donald Trump was seeking to impose tariffs on up to $60bn of Chinese imports, and could target the technology and telecommunications sectors. |
| Boeing could be a major casualty if China retaliated, explained Richard Aboulafia of consulting firm Teal Group Corporation to the New York Times: | Boeing could be a major casualty if China retaliated, explained Richard Aboulafia of consulting firm Teal Group Corporation to the New York Times: |
| The likelihood of retaliation by their biggest single market, China, elevates this from an irritant to potentially disastrous, if not catastrophic. | The likelihood of retaliation by their biggest single market, China, elevates this from an irritant to potentially disastrous, if not catastrophic. |
| “A trade war is the simplest way to cut off this fantastic growth they have enjoyed.” | “A trade war is the simplest way to cut off this fantastic growth they have enjoyed.” |
| More here: Trump’s Tariffs Make Boeing a Potential Target in a Trade War | More here: Trump’s Tariffs Make Boeing a Potential Target in a Trade War |
| Donald Trump appears to have a new economic adviser, less than a week after Gary Cohn resigned, according to reports from America. | Donald Trump appears to have a new economic adviser, less than a week after Gary Cohn resigned, according to reports from America. |
| CNBC is reporting that Larry Kudlow, the Wall Street economist-turned-TV commentator has accepted the post, and will be named on Thursday. | CNBC is reporting that Larry Kudlow, the Wall Street economist-turned-TV commentator has accepted the post, and will be named on Thursday. |
| BREAKING: President Trump to name Larry Kudlow NEC chairman as early as tomorrow, sources say. https://t.co/SDzQDl7MGu pic.twitter.com/dxwkDNFhTj | BREAKING: President Trump to name Larry Kudlow NEC chairman as early as tomorrow, sources say. https://t.co/SDzQDl7MGu pic.twitter.com/dxwkDNFhTj |
| Reuters has more info: | Reuters has more info: |
| Trump told reporters on Tuesday that Kudlow, a Republican who served as an economic adviser to former President Ronald Reagan in the 1980s and also worked on Wall Street, had “a very good chance” at being selected to replace Cohn. | Trump told reporters on Tuesday that Kudlow, a Republican who served as an economic adviser to former President Ronald Reagan in the 1980s and also worked on Wall Street, had “a very good chance” at being selected to replace Cohn. |
| Kudlow, an informal advisor to Trump’s 2016 presidential campaign, had criticized the president’s decision last week to place steep tariffs on imports of steel and aluminum, saying they would harm steel-consuming producers. Cohn also opposed the tariffs. | Kudlow, an informal advisor to Trump’s 2016 presidential campaign, had criticized the president’s decision last week to place steep tariffs on imports of steel and aluminum, saying they would harm steel-consuming producers. Cohn also opposed the tariffs. |
| But Trump said on Wednesday that Kudlow had “come around” to view tariffs as a useful tool for renegotiating trade deals. | But Trump said on Wednesday that Kudlow had “come around” to view tariffs as a useful tool for renegotiating trade deals. |
| After a bright start, the FTSE 100 ended the day down 6 points, or 0.1%. | After a bright start, the FTSE 100 ended the day down 6 points, or 0.1%. |
| The Europe-wide Stoxx 600 dipped by 0.15%. | The Europe-wide Stoxx 600 dipped by 0.15%. |
| Trade war fears are swirling through the markets again, warns David Madden of CMC Markets. | Trade war fears are swirling through the markets again, warns David Madden of CMC Markets. |
| Growing fears of a trade war is weighing on US stocks, and indices like the Dow Jones are losing ground quickly. Dealers are fearful that China will react to President Trump’s tariffs by imposing levies on the aerospace industry, and Boeing shares have taken a hit. | Growing fears of a trade war is weighing on US stocks, and indices like the Dow Jones are losing ground quickly. Dealers are fearful that China will react to President Trump’s tariffs by imposing levies on the aerospace industry, and Boeing shares have taken a hit. |
| Update: the markets are turning south, after Donald Trump threw more fuel on investors’ trade war fears. | Update: the markets are turning south, after Donald Trump threw more fuel on investors’ trade war fears. |
| Having opened higher, the Dow is now down almost 300 points in New York. Boeing, the aircraft maker, is driving the sell off. | Having opened higher, the Dow is now down almost 300 points in New York. Boeing, the aircraft maker, is driving the sell off. |
| Europe has handed back its earlier gains too. | Europe has handed back its earlier gains too. |
| This comes after Trump tweeted a threat to take more action on trade, amid speculation of new tariffs on China. | This comes after Trump tweeted a threat to take more action on trade, amid speculation of new tariffs on China. |
| We cannot keep a blind eye to the rampant unfair trade practices against our Country! | We cannot keep a blind eye to the rampant unfair trade practices against our Country! |
| European and US stock markets are mostly higher today. | European and US stock markets are mostly higher today. |
| Despite the IFS’s gloomy prognosis on Britain’s finances, the FTSE 100 index of major blue-chip companies has gained 28 points, or 0.4%. Prudential is leading the way, up 6.5%, after announcing plans to split itself in two. | Despite the IFS’s gloomy prognosis on Britain’s finances, the FTSE 100 index of major blue-chip companies has gained 28 points, or 0.4%. Prudential is leading the way, up 6.5%, after announcing plans to split itself in two. |
| Shares are also up across Europe, after ECB president Mario Draghi gave a dovish speech this morning. | Shares are also up across Europe, after ECB president Mario Draghi gave a dovish speech this morning. |
| Draghi insisted that eurozone monetary policy ‘will remain patient, persistent and prudent’ - which weakened the euro, helping exporters. | Draghi insisted that eurozone monetary policy ‘will remain patient, persistent and prudent’ - which weakened the euro, helping exporters. |
| The US stock market has also opened a little higher, as traders tried to focus on economic fundamentals rather than the chaos in the White House following Rex Tillerson’s sacking yesterday. | The US stock market has also opened a little higher, as traders tried to focus on economic fundamentals rather than the chaos in the White House following Rex Tillerson’s sacking yesterday. |
| John McDonnell MP, Labour’s Shadow Chancellor, has responded to the Institute for Fiscal Studies’ report into the UK’s finances: | John McDonnell MP, Labour’s Shadow Chancellor, has responded to the Institute for Fiscal Studies’ report into the UK’s finances: |
| “The IFS today confirmed the further bad news working families face after nearly eight years of Tory economic failure. Despite the Chancellor’s spin yesterday, the IFS has revealed that there may be £30 billion of new tax rises and spending cuts to come. | “The IFS today confirmed the further bad news working families face after nearly eight years of Tory economic failure. Despite the Chancellor’s spin yesterday, the IFS has revealed that there may be £30 billion of new tax rises and spending cuts to come. |
| “Under the Tories, it won’t be the richest who are hit by these tax rises and austerity cuts, but the poorest – largely families and children – who will bear the brunt of their heartless economic plans. | “Under the Tories, it won’t be the richest who are hit by these tax rises and austerity cuts, but the poorest – largely families and children – who will bear the brunt of their heartless economic plans. |
| “The next Labour government will end austerity and build an economy that works for the many, not the few.” | “The next Labour government will end austerity and build an economy that works for the many, not the few.” |
| In other news, American retail sales has fallen for the third month running. | In other news, American retail sales has fallen for the third month running. |
| It’s a small drop - just 0.1% in February - but also the third decline in a row, for the first time since 2012. | It’s a small drop - just 0.1% in February - but also the third decline in a row, for the first time since 2012. |
| Economist had expected a rise of 0.3%, so this may signal that US consumers aren’t quite as optimistic as thought. The report shows that demand for big-ticket items, such as cars, declined. | Economist had expected a rise of 0.3%, so this may signal that US consumers aren’t quite as optimistic as thought. The report shows that demand for big-ticket items, such as cars, declined. |
| US retail sales have definitely flattened out over the last three months. It does happen from time to time, even during an ongoing upswing and households maybe needed a breather after the Q4 spending surge (annualised 3m/3m growth was 7.7% in Nov and 3.0% in Feb). pic.twitter.com/s81bM0m4n6 | US retail sales have definitely flattened out over the last three months. It does happen from time to time, even during an ongoing upswing and households maybe needed a breather after the Q4 spending surge (annualised 3m/3m growth was 7.7% in Nov and 3.0% in Feb). pic.twitter.com/s81bM0m4n6 |
| Here’s our news story on the IFS’s spring statement analysis: | Here’s our news story on the IFS’s spring statement analysis: |