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| Trump plans $11bn tariffs aimed at EU's aircraft, cheese and wine – business live | Trump plans $11bn tariffs aimed at EU's aircraft, cheese and wine – business live |
| (32 minutes later) | |
| Saudi Aramco, the state-owned oil producer which is often cited as the largest company in the world, has more than $100bn in orders for its first ever bond issue. | |
| Aramco is looking to raise $10bn from the sale, which is seen by many as a precursor to a previously delayed initial public offering. | |
| Having made core earnings of $224 billion last year and with $86 billion in free cash flow at the end of 2018, Aramco does not need to borrow. | |
| A return to tensions in the US-EU relationship is part of the broader turn away from open world trade, say analysts at Deutsche Bank in a report published today on the German economy – one of those with the most to lose from auto tariffs. | |
| World trade slowed considerably towards the end of 2018 and even shrank around the turn of the year, according to the report edited by Deutsche’s Stefan Schneider. | |
| It seems that German goods exports will stagnate or rise moderately at best during the first half of 2019. An increase by 2% in nominal terms would probably be a good result for 2019 as a whole. | |
| World trade looks set to remain structurally weak in the foreseeable future. With protectionism becoming more and more popular in many countries, bilateral trade agreements appear the best option to secure free trade. | |
| Trump may be using the Airbus dispute as a way to up the ante ahead of a May decision on cars, according to Cailin Birch, global economist at the Economist Intelligence Unit. | |
| That the US government would choose to act now, with little warning, in response to a fairly stale trade issue is very interesting. In our view, this shows that the US wants to pressure the EU to engage in meaningful trade talks, but without having to apply the more painful measure of automotive tariffs. | |
| The Trump administration has until mid-May to decide whether or not to act on the results of the 232 investigation [related to national security] into automotive imports. However, such a move would be equally damaging to automotive manufacturing and sales in the US, so the Trump administration may be trying to use the Airbus case as a way out. | |
| Donald Trump has said that the “EU has taken advantage of the US on trade for many years”, in another ominous sign for the trade relationship. | Donald Trump has said that the “EU has taken advantage of the US on trade for many years”, in another ominous sign for the trade relationship. |
| The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products! The EU has taken advantage of the U.S. on trade for many years. It will soon stop! | The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products! The EU has taken advantage of the U.S. on trade for many years. It will soon stop! |
| In July Trump and European Commission president Jean-Claude Juncker appeared to have averted the possibility of a full-blown trade war, with a promise to work towards “zero tariffs”. | In July Trump and European Commission president Jean-Claude Juncker appeared to have averted the possibility of a full-blown trade war, with a promise to work towards “zero tariffs”. |
| However, despite the warm words many of the key concerns remain unresolved (see 08:59am). This is a particular concern around potential tariffs on car imports, which would represent a major escalation, targeting the EU’s industrial heartlands. | However, despite the warm words many of the key concerns remain unresolved (see 08:59am). This is a particular concern around potential tariffs on car imports, which would represent a major escalation, targeting the EU’s industrial heartlands. |
| US stock market futures are pointing to a flat opening on Wall Street. | US stock market futures are pointing to a flat opening on Wall Street. |
| Futures for the Dow Jones industrial average fell by 0.06%, for the S&P 500 three-month futures fell by 0.1%, while Nasdaq futures declined by the same amount. | Futures for the Dow Jones industrial average fell by 0.06%, for the S&P 500 three-month futures fell by 0.1%, while Nasdaq futures declined by the same amount. |
| Britain is likely to be offered a final long extension ending on 31 December after the EU’s chief negotiator, Michel Barnier, failed to convince the bloc’s capitals that Theresa May has a plan to break the Brexit impasse. | Britain is likely to be offered a final long extension ending on 31 December after the EU’s chief negotiator, Michel Barnier, failed to convince the bloc’s capitals that Theresa May has a plan to break the Brexit impasse. |
| A number of member states, most prominently France, along with Slovenia, Greece, Austria and Spain, remain sceptical about a lengthy extension, citing the risks to the EU of Britain behaving badly, Daniel Boffey reports. | A number of member states, most prominently France, along with Slovenia, Greece, Austria and Spain, remain sceptical about a lengthy extension, citing the risks to the EU of Britain behaving badly, Daniel Boffey reports. |
| Barnier tried to push for a shorter extension to keep pressure on MPs to back May’s deal, according to a leaked note on discussions. The full story is here: | Barnier tried to push for a shorter extension to keep pressure on MPs to back May’s deal, according to a leaked note on discussions. The full story is here: |
| UK likely to be offered Brexit extension until end of year | UK likely to be offered Brexit extension until end of year |
| After early worries about the potential impact of Trump’s tariffs, European stocks have recovered on the major stock indices as we reach the halfway point in London trading. | After early worries about the potential impact of Trump’s tariffs, European stocks have recovered on the major stock indices as we reach the halfway point in London trading. |
| The FTSE 100 is up by 0.1% at 7,459 points, although the mid-cap FTSE 250 is faring slightly worse, down by 0.2%. | The FTSE 100 is up by 0.1% at 7,459 points, although the mid-cap FTSE 250 is faring slightly worse, down by 0.2%. |
| Sterling is flat against the euro, and up by 0.2% against the US dollar. | Sterling is flat against the euro, and up by 0.2% against the US dollar. |
| Some more analysis of the Debenhams administration. | Some more analysis of the Debenhams administration. |
| We probably won’t have details of possible store closures for weeks, but Debenhams’ failure is still hugely significant given the size of its property estate (many in town centres) and the number of employees it has, said Richard Lim, chief executive at Retail Economics. | We probably won’t have details of possible store closures for weeks, but Debenhams’ failure is still hugely significant given the size of its property estate (many in town centres) and the number of employees it has, said Richard Lim, chief executive at Retail Economics. |
| Debenhams has fallen victim to crippling levels of debt, which has paralysed its ability to pivot towards a more digital and experience-led retail model. | Debenhams has fallen victim to crippling levels of debt, which has paralysed its ability to pivot towards a more digital and experience-led retail model. |
| Put simply, the business has been out manoveured by more nimble competitors, failed to embrace change and was left with a tiring proposition. The industry is evolving fast and it paid the ultimate price. | Put simply, the business has been out manoveured by more nimble competitors, failed to embrace change and was left with a tiring proposition. The industry is evolving fast and it paid the ultimate price. |
| Debenhams has been taken over by its lenders, wiping out shareholders including Mike Ashley’s Sports Direct and paving the way for store closures that put thousands of jobs at risk. | Debenhams has been taken over by its lenders, wiping out shareholders including Mike Ashley’s Sports Direct and paving the way for store closures that put thousands of jobs at risk. |
| Ashley, who spent at least £150m on building up a near 30% stake in Debenhams, lost out after the company and its lenders rejected a last-ditch offer of a new £200m cash injection as it was dependent on him becoming chief executive, writes Sarah Butler. | Ashley, who spent at least £150m on building up a near 30% stake in Debenhams, lost out after the company and its lenders rejected a last-ditch offer of a new £200m cash injection as it was dependent on him becoming chief executive, writes Sarah Butler. |
| Full story here: | Full story here: |
| Debenhams is taken over by lenders; Mike Ashley loses stake | Debenhams is taken over by lenders; Mike Ashley loses stake |
| An interesting story on bitcoin (remember that?) has hit the wires. Reuters reports that China is planning to ban “mining” of the cryptocurrency. | An interesting story on bitcoin (remember that?) has hit the wires. Reuters reports that China is planning to ban “mining” of the cryptocurrency. |
| China’s state planner has published a draft list of industrial activities the agency is seeking to stop in a sign of growing government pressure on the cryptocurrency sector. China is the world’s largest market for computer hardware designed to mine bitcoin and other cryptocurrencies, even though such activities previously fell under a regulatory grey area. | China’s state planner has published a draft list of industrial activities the agency is seeking to stop in a sign of growing government pressure on the cryptocurrency sector. China is the world’s largest market for computer hardware designed to mine bitcoin and other cryptocurrencies, even though such activities previously fell under a regulatory grey area. |
| The move may have something to do with the truly horrendous amount of energy used in creating the currency. Read more about that here: | The move may have something to do with the truly horrendous amount of energy used in creating the currency. Read more about that here: |
| Another thing you may not know about Bitcoin: it's killing the planet | Ethan Lou | Another thing you may not know about Bitcoin: it's killing the planet | Ethan Lou |
| It’s time for Mike Ashley to bow out and accept that his near 30% stake is going to be wiped out, according to some City analysts. | It’s time for Mike Ashley to bow out and accept that his near 30% stake is going to be wiped out, according to some City analysts. |
| AJ Bell investment director Russ Mould likened Ashley to “a greedy child who wants a new toy” – even after gaining a string of goodies in the past year. He said: | AJ Bell investment director Russ Mould likened Ashley to “a greedy child who wants a new toy” – even after gaining a string of goodies in the past year. He said: |
| While Mike Ashley seems to like the thrill of the chase, it is time for him to admit defeat with his pursuit of Debenhams and adding another string to the bow of his retail empire. | While Mike Ashley seems to like the thrill of the chase, it is time for him to admit defeat with his pursuit of Debenhams and adding another string to the bow of his retail empire. |
| Someone needs to tap him on the shoulder and remind him that he’s already got a core business to run and a bit more attention wouldn’t go amiss. | Someone needs to tap him on the shoulder and remind him that he’s already got a core business to run and a bit more attention wouldn’t go amiss. |
| The equity sales team at Berenberg investment bank agreed: the risks are high around Sports Direct’s strategy even if it were successful, with a lot of work to turn around Debenhams. They said: | The equity sales team at Berenberg investment bank agreed: the risks are high around Sports Direct’s strategy even if it were successful, with a lot of work to turn around Debenhams. They said: |
| We still believe this long-running saga is a significant management distraction at a time when the core Sports Direct business is under structural pressure. | We still believe this long-running saga is a significant management distraction at a time when the core Sports Direct business is under structural pressure. |
| Let’s get some more on another of today’s big stories: the endgame in Mike Ashley’s pursuit of Debenhams. | Let’s get some more on another of today’s big stories: the endgame in Mike Ashley’s pursuit of Debenhams. |
| Ashley’s Sports Direct has offered Debenhams a £200m cash injection in a last-ditch attempt to strike a deal that would prevent its stake in the business being wiped out, writes the Guardian’s Sarah Butler. | Ashley’s Sports Direct has offered Debenhams a £200m cash injection in a last-ditch attempt to strike a deal that would prevent its stake in the business being wiped out, writes the Guardian’s Sarah Butler. |
| But the department store group is expected to reject the latest offer, as it is still tied to Ashley being appointed chief executive, which the group’s lenders oppose. | But the department store group is expected to reject the latest offer, as it is still tied to Ashley being appointed chief executive, which the group’s lenders oppose. |
| Debenhams remains on course to be handed to its lenders on Tuesday via a “pre-pack” administration that would enable stores to continue trading but render shares worthless. | Debenhams remains on course to be handed to its lenders on Tuesday via a “pre-pack” administration that would enable stores to continue trading but render shares worthless. |
| Debenhams on brink of administration despite Mike Ashley's last-ditch £200m offer | Debenhams on brink of administration despite Mike Ashley's last-ditch £200m offer |
| Britain’s retailers this morning blamed Brexit for holding back larger purchases – with consumer reticence thought to be an important factor in the UK’s recent sub-par growth record. | Britain’s retailers this morning blamed Brexit for holding back larger purchases – with consumer reticence thought to be an important factor in the UK’s recent sub-par growth record. |
| The British Retail Consortium (BRC) and the accountancy firm KPMG said sales growth dropped to 0.5% in the year to March, down from an annual growth of 2.3% a year ago, as consumers held back from spending on big-ticket items, writes Richard Partington. | The British Retail Consortium (BRC) and the accountancy firm KPMG said sales growth dropped to 0.5% in the year to March, down from an annual growth of 2.3% a year ago, as consumers held back from spending on big-ticket items, writes Richard Partington. |
| While the timing of Easter likely produced distortions in the figures, uncertainty is holding back consumers, the BRC said. You can read more here: | While the timing of Easter likely produced distortions in the figures, uncertainty is holding back consumers, the BRC said. You can read more here: |
| Shoppers avoiding big buys due to Brexit uncertainty – retailers | Shoppers avoiding big buys due to Brexit uncertainty – retailers |
| The EU’s Brexit negotiator, Michel Barnier, is holding a press conference at the moment. | The EU’s Brexit negotiator, Michel Barnier, is holding a press conference at the moment. |
| He has suggested the EU might not grant a long article 50 extension unless May backs a customs union, Andrew Sparrow reports on the Guardian’s politics live blog. | He has suggested the EU might not grant a long article 50 extension unless May backs a customs union, Andrew Sparrow reports on the Guardian’s politics live blog. |
| Sterling is flat against the euro at €1.1609 at the time of writing, but has swung back and forth in morning trading, albeit in the range of yesterday’s movements. | Sterling is flat against the euro at €1.1609 at the time of writing, but has swung back and forth in morning trading, albeit in the range of yesterday’s movements. |
| Against the US dollar the pound has gained 0.15% to $1.3087 – after briefly jumping above $1.31 earlier this morning. | Against the US dollar the pound has gained 0.15% to $1.3087 – after briefly jumping above $1.31 earlier this morning. |
| You can follow the press conference and all of the politics developments here: | You can follow the press conference and all of the politics developments here: |
| Brexit: Barnier suggests EU might not grant long article 50 extension unless May backs customs union - live news | Brexit: Barnier suggests EU might not grant long article 50 extension unless May backs customs union - live news |
| Some more tariff reaction: while Donald Trump describes his tariffs as part of his “America First” policies, most economists believe that they mostly serve to raise prices for consumers, the very people the US president says he wants to help. | Some more tariff reaction: while Donald Trump describes his tariffs as part of his “America First” policies, most economists believe that they mostly serve to raise prices for consumers, the very people the US president says he wants to help. |
| Paul Donovan, chief economist at UBS Global Wealth Management, this morning described the tariffs as “tax increases” which will hit consumers directly. | Paul Donovan, chief economist at UBS Global Wealth Management, this morning described the tariffs as “tax increases” which will hit consumers directly. |
| US President Trump has drawn up a little list of things US consumers can be taxed for buying. The latest round of tariffs are directed at the European Union, following a World Trade Organization ruling against subsidies for Airbus. | US President Trump has drawn up a little list of things US consumers can be taxed for buying. The latest round of tariffs are directed at the European Union, following a World Trade Organization ruling against subsidies for Airbus. |
| Whether the US president’s newfound enthusiasm for the WTO will last if the WTO rules against Boeing in a similar case remains to be seen. | Whether the US president’s newfound enthusiasm for the WTO will last if the WTO rules against Boeing in a similar case remains to be seen. |
| The White House’s willingness to abide by WTO processes in this case could actually be beneficial for the embattled organisation, Donovan added. | The White House’s willingness to abide by WTO processes in this case could actually be beneficial for the embattled organisation, Donovan added. |
| Let’s take a closer look at the list of products at risk if the US does follow through on its $11bn tariff threats. | Let’s take a closer look at the list of products at risk if the US does follow through on its $11bn tariff threats. |
| Just like the EU’s previous threats to hit American export icons such as Harley Davidson motorbikes, Levi jeans and bourbon whiskey, the US is targeting some symbolic European products. | Just like the EU’s previous threats to hit American export icons such as Harley Davidson motorbikes, Levi jeans and bourbon whiskey, the US is targeting some symbolic European products. |
| Non-military aircraft top the list, in an obvious reference to the dispute’s origin in EU subsidies for Airbus. Airbus shares are down by 1.7% today, although it is worth noting that they are still up by more than 40% year-to-date, as US rival Boeing has been hit by the fallout from two air crashes which have led to the grounding of its 737 fleet. | Non-military aircraft top the list, in an obvious reference to the dispute’s origin in EU subsidies for Airbus. Airbus shares are down by 1.7% today, although it is worth noting that they are still up by more than 40% year-to-date, as US rival Boeing has been hit by the fallout from two air crashes which have led to the grounding of its 737 fleet. |
| Beyond aircraft though, there is a cornucopia of culinary delights on which tariffs could be levied. Swordfish steaks, salmon fillets, crabs, scallops, mussels, oysters, octopus, various jams and olive oil are on the list with 12 categories of wine to wash it down. | Beyond aircraft though, there is a cornucopia of culinary delights on which tariffs could be levied. Swordfish steaks, salmon fillets, crabs, scallops, mussels, oysters, octopus, various jams and olive oil are on the list with 12 categories of wine to wash it down. |
| Some 40 categories of cheese are listed, including roquefort, pecorino, and Gouda, as well as British stilton and cheddar – even “american-type cheese” from the EU is included. | Some 40 categories of cheese are listed, including roquefort, pecorino, and Gouda, as well as British stilton and cheddar – even “american-type cheese” from the EU is included. |
| Other more unusual (and non-edible) products include ski suits, swimwear, hunting knives and even wind-up wall clocks. | Other more unusual (and non-edible) products include ski suits, swimwear, hunting knives and even wind-up wall clocks. |
| The full list is here. | The full list is here. |
| European stock markets have rallied after falling earlier in the morning. | European stock markets have rallied after falling earlier in the morning. |
| The FTSE 100 is now only marginally down, by three points or 0.04%. Germany’s Dax is down by 0.14% while France’s Cac 40 is down by 0.1%. | The FTSE 100 is now only marginally down, by three points or 0.04%. Germany’s Dax is down by 0.14% while France’s Cac 40 is down by 0.1%. |
| The wider Stoxx 600 index is up by 0.1%. | The wider Stoxx 600 index is up by 0.1%. |