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Wall Street and FTSE 100 sink as Trump intensifies trade war fears - business live Wall Street and FTSE 100 sink as Trump intensifies trade war fears - business live
(about 1 hour later)
US president alarms investors by hinting that a China trade deal could wait until after the 2020 electionUS president alarms investors by hinting that a China trade deal could wait until after the 2020 election
London’s losses today are partly due to a stronger pound, which is trading over $1.30 again tonight.
Connor Campbell of SpreadEx explains:
Ouch! Britain’s FTSE 100 has closed at its lowest level since mid-October.
Renewed trade war anxiety sent the index down to 7,158, a loss of 127 points. That’s a 1.75% slide, to a six-week low.
The FTSE 250 index of medium-sized UK companies also had a rotten day, ending 199 points down at 20,500. That’s a 1% drop.
Today’s burst of trade war drama has been a wake-up call for investors who had hoped that the dispute was being ended peacefully.Today’s burst of trade war drama has been a wake-up call for investors who had hoped that the dispute was being ended peacefully.
Michael Hewson of CMC Markets explains:Michael Hewson of CMC Markets explains:
CNBC’s Michelle Caruso-Cabrera is losing faith that China and the US will ever reach a trade deal....CNBC’s Michelle Caruso-Cabrera is losing faith that China and the US will ever reach a trade deal....
All these negative headlines on trade have knocked China’s currency to its lowest level since October, as Bloomberg’s Katherine Griefeld points out here:All these negative headlines on trade have knocked China’s currency to its lowest level since October, as Bloomberg’s Katherine Griefeld points out here:
Wilbur Ross, Donald Trump’s commerce secretary, has just dampened hopes of a trade breakthrough with China.Wilbur Ross, Donald Trump’s commerce secretary, has just dampened hopes of a trade breakthrough with China.
Ross has told CNBC that delaying a trade deal with China until after the 2020 election could make sense, as it “takes leverage away” from Beijing. That chimes with Donald Trump’s comments in London earlier.Ross has told CNBC that delaying a trade deal with China until after the 2020 election could make sense, as it “takes leverage away” from Beijing. That chimes with Donald Trump’s comments in London earlier.
Ross added that no high-level meetings are planned between the two sides, even though the US will impose new tariffs on 15 December unless there’ s a deal....Ross added that no high-level meetings are planned between the two sides, even though the US will impose new tariffs on 15 December unless there’ s a deal....
Wall Street is having a seriously bad day now, with the Dow shedding 421 points or 1.5%.Wall Street is having a seriously bad day now, with the Dow shedding 421 points or 1.5%.
This takes the index down to a one-month low, wiping out all the gains made in November when the Dow hit a series of record highs.This takes the index down to a one-month low, wiping out all the gains made in November when the Dow hit a series of record highs.
Donald Trump and Emmanuel Macron’s press conference in London is one of the most awkward such events we’ve seen in a while.Donald Trump and Emmanuel Macron’s press conference in London is one of the most awkward such events we’ve seen in a while.
At one stage, Trump even patronised Macron for giving a classic “non-answer”, when the French president talked about the importance of eradicating ISIS.At one stage, Trump even patronised Macron for giving a classic “non-answer”, when the French president talked about the importance of eradicating ISIS.
That came after Trump challenged him to take back French Islamist fighters captured in the region.That came after Trump challenged him to take back French Islamist fighters captured in the region.
But on trade, Trump has also threatened France with “substantial taxes”, unless it changes its plan to tax tech giants.But on trade, Trump has also threatened France with “substantial taxes”, unless it changes its plan to tax tech giants.
The two leaders are also clashing over Turkey, with Macron furious that it plans to buy a Russian missile system, and over its invasion of Syria.The two leaders are also clashing over Turkey, with Macron furious that it plans to buy a Russian missile system, and over its invasion of Syria.
Donald Trump has sent another shiver through the markets, as he tells reporters in London that Europe isn’t trading fairly with the US.Donald Trump has sent another shiver through the markets, as he tells reporters in London that Europe isn’t trading fairly with the US.
The US president says his country “cannot continue to lose the money that it has lost” since the EU was created.The US president says his country “cannot continue to lose the money that it has lost” since the EU was created.
This further hardens concerns that Trump is ratcheting up his threats to impose more tariffs if European countries don’t address American concerns.This further hardens concerns that Trump is ratcheting up his threats to impose more tariffs if European countries don’t address American concerns.
Ouch! America’s stock market has fallen 1% at the start of trading in New York.Ouch! America’s stock market has fallen 1% at the start of trading in New York.
The Dow Jones industrial average: down 285 points at 27,497The Dow Jones industrial average: down 285 points at 27,497
S&P 500: Down 32 points at 3,081.84 pointsS&P 500: Down 32 points at 3,081.84 points
Donald Trump’s warning that a trade deal with China might not happen before next November’s presidential election has alarmed traders, as has the prospect of a trade war with France.Donald Trump’s warning that a trade deal with China might not happen before next November’s presidential election has alarmed traders, as has the prospect of a trade war with France.
Trump then repeats his earlier argument that it’s wrong for France to tax US companies, through its digital services tax.Trump then repeats his earlier argument that it’s wrong for France to tax US companies, through its digital services tax.
[America’s complaint is that the French plan is based on the revenues of US tech firms, not simply the profits they make in France][America’s complaint is that the French plan is based on the revenues of US tech firms, not simply the profits they make in France]
Newsflash: Donald Trump and Emmanuel Macron are holding a press conference at the NATO summit now.Newsflash: Donald Trump and Emmanuel Macron are holding a press conference at the NATO summit now.
Trump seems to be trying to calm the tariff row, telling reporters that “we have a very good relationship with France”.Trump seems to be trying to calm the tariff row, telling reporters that “we have a very good relationship with France”.
The US president also says that he believes the two sides can work out their clash over France’s digital sales tax. Thins s will “be looking rose” between us soon, he adds.The US president also says that he believes the two sides can work out their clash over France’s digital sales tax. Thins s will “be looking rose” between us soon, he adds.
But, Trump is also emphasising that all NATO members need to make a fair contribution to its budget, and suggests that he could use trade as a weapon to get them into line...But, Trump is also emphasising that all NATO members need to make a fair contribution to its budget, and suggests that he could use trade as a weapon to get them into line...
France’s wine and spirits industry is calling on Emmanuel Macron to help.France’s wine and spirits industry is calling on Emmanuel Macron to help.
Antoine Leccia, chairman of trade body FEVS says the threat of champagne tariffs at the US border must be pushed back:Antoine Leccia, chairman of trade body FEVS says the threat of champagne tariffs at the US border must be pushed back:
A EU delegation to the US says it will seek “immediate talks” on how to resolve the dispute over France’s digital service tax, Reuters reports.A EU delegation to the US says it will seek “immediate talks” on how to resolve the dispute over France’s digital service tax, Reuters reports.
If you missed it earlier, here’s a video clip of Donald Trump criticising France’s new levy on the revenues of US technology giants:If you missed it earlier, here’s a video clip of Donald Trump criticising France’s new levy on the revenues of US technology giants:
The Paris stock market is also suffering a dose of tariff blues.The Paris stock market is also suffering a dose of tariff blues.
The CAC 40 index is down 1%, with consumer companies and factories suffering the biggest losses.The CAC 40 index is down 1%, with consumer companies and factories suffering the biggest losses.
Luxury goods firm Kering is down 2.3%, with LVMH (Moët Hennessy – Louis Vuitton) losing 2%. As explained earlier, they’re in the firing line from higher tariffs on handbags and champagne.Luxury goods firm Kering is down 2.3%, with LVMH (Moët Hennessy – Louis Vuitton) losing 2%. As explained earlier, they’re in the firing line from higher tariffs on handbags and champagne.
The US stock market is also heading for sharper losses in an hour’s time:The US stock market is also heading for sharper losses in an hour’s time:
Just in: Britain’s FTSE 100 index of top shares has hit its lowest level since late October.Just in: Britain’s FTSE 100 index of top shares has hit its lowest level since late October.
The Footsie has now lost 108 points to 7,177, its weakest level in six weeks.The Footsie has now lost 108 points to 7,177, its weakest level in six weeks.
Donald Trump’s latest trade war escalation is causing alarm in the City, as traders fear that a deal with China could be a year away. The new tariffs being threatened on France have also raised worries that UK-EU relations could worsen.Donald Trump’s latest trade war escalation is causing alarm in the City, as traders fear that a deal with China could be a year away. The new tariffs being threatened on France have also raised worries that UK-EU relations could worsen.
Separately, the the rise in the pound is hurting multinationals - whose overseas earnings become less valuable in sterling terms.Separately, the the rise in the pound is hurting multinationals - whose overseas earnings become less valuable in sterling terms.
Steelmaker Evraz is the top faller, down 6%, followed by NMC Health, the UAE-focused healthcare chain.Steelmaker Evraz is the top faller, down 6%, followed by NMC Health, the UAE-focused healthcare chain.
US-focused plumbing and building materials provider Ferguson has lost 3%, while global advertising firm WPP is down 2.5%.US-focused plumbing and building materials provider Ferguson has lost 3%, while global advertising firm WPP is down 2.5%.
Data firm Panjiva has calculated that America’s new proposed tariffs cover 4.1% of all French exports to the US, worth just over $2.4bn.Data firm Panjiva has calculated that America’s new proposed tariffs cover 4.1% of all French exports to the US, worth just over $2.4bn.
Cosmetics takes the biggest hit, followed by sparkling wine.Cosmetics takes the biggest hit, followed by sparkling wine.
It explains:It explains: