FTSE 100 LIVE: Stocks rise as Trump threatens to impose up to 35% tariff on Japan

Yahoo

5 days ago

The FTSE 100 (^FTSE) and European stocks were higher on Wednesday despite president Donald Trump striking a negative tone on his trade deal with Japan. He said they should 'pay 30%, 35% or whatever the number is that we determine, because we also have a very big trade deficit with Japan.'
This comes well above the 24% tariff Japan was hit with as part of Trump's so-called "Liberation Day" on 2 April, which was later lowered to 10% for 90 days to give them time to negotiate deals with Washington.
On whether the US would push back the July 9th deadline, the president noted he was 'not thinking about the pause' and that he could be 'writing letters to a lot of countries.'
"We've dealt with Japan. I'm not sure we're going to make a deal. I doubt it," he told reporters aboard Air Force One on Tuesday. Meanwhile, Japan declined to comment during a news conference on Wednesday.
London's benchmark index (^FTSE) was 0.1% higher in early trade
Germany's DAX (^GDAXI) rose 0.2% and the CAC (^FCHI) in Paris headed 0.2% into the green
The pan-European STOXX 600 (^STOXX) was up 0.1%
Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green.
The pound was 0.2% down against the US dollar (GBPUSD=X) at 1.3712
Follow along for live updates throughout the day:
A report has found that an electrical substation which caused a fire that resulted in Heathrow Airport closing came from a 'preventable, technical fault'.
The root cause was reportedly detected seven years ago but not fixed. The National Energy System Operator (NESO) said moisture entering electrical components at the North Hyde substation caused the blaze at the site that supplies the UK's biggest airport with power.
It revealed an elevated moisture reading had been first detected in July 2018, but that the issue went "unaddressed", with basic maintenance by National Grid cancelled.
National Energy System Operator said:
In response to the report, Heathrow Airport said a "combination of outdated regulation, inadequate safety mechanisms, and National Grid's failure to maintain its infrastructure" that led to this "catastrophic power outage".
"We expect National Grid to be carefully considering what steps they can take to ensure this isn't repeated," it added.
Britain's energy watchdog has given the go-ahead to an initial £24bn of investment to upgrade UK energy infrastructure, but revealed the move will push up network charges on household bills by more than £100.
Ofgem's draft verdict on price controls for energy network firms approves more than £15 billion to be spent on gas transmission and distribution networks in the five years to 2031.
A further £8.9bn is set to be committed to the nation's high-voltage electricity network, which Ofgem said will power the biggest expansion of the grid since the 1960s, with another £1.3bn being earmarked.
The funding will allow 80 major energy infrastructure projects to be completed by 2030 and comes amid a push by the government to boost the UK's renewables sector to help improve energy security.
But Ofgem revealed households are set to see the network charges on bills – which make up around a fifth of average annual bills – surge by £104 to £324 by 2031 to cover the cost of the extra investment.
The regulator said this will include £30 for gas networks and £74 for the electricity grid.
It deals a blow to hopes of lower bills after the latest energy price cap change came into effect on Tuesday, seeing a 7% drop to £1,720 per year, and with the latest forecast showing another 1% fall may be in store from October.
The regulator insisted that bills would be even higher – around £30 more – without the investment, because the funding will allow the UK to make 'better use of our clean renewable energy so we are not having to pay for expensive gas plants to serve demand'.
Read the full article here
Stocks in Asia were mixed overnight with the Nikkei (^N225) down 0.6% on the day in Japan, while the Hang Seng (^HSI) rose 0.6% in Hong Kong. The Shanghai Composite (000001.SS) was 0.1% lower by the end of the session.
In South Korea, the Kospi (^KS11) lost 0.5% on the day.
It came as president Donald Trump again struck a negative tone on the trade deal with Japan in comments to the press, saying they should 'pay 30%, 35% or whatever the number is that we determine, because we also have a very big trade deficit with Japan.'
On whether the US would push back the July 9th deadline, the president noted he was 'not thinking about the pause' and that he could be 'writing letters to a lot of countries.'
This backdrop proved a trickier one for equities, and the S&P 500 (^GSPC) fell -0.11% by the close. However, that was influenced by a sharp fall for Tesla (TSLA) which slumped more than 5% after Trump posted that Elon Musk 'may get more subsidy than any human being in history, by far' and 'Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!
The tech-heavy Nasdaq (^IXIC) was 0.8% lower and the Dow Jones (^DJI) gained 0.9%.
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
To the day ahead now, we will be hearing from central bank speakers will including ECB president Christine Lagarde, vice president de Guindos, the ECB's Cipollone and Lane, and the BoE's Taylor.
Otherwise, data releases include the ADP's report of private payrolls in the US for June, along with the Euro Area unemployment rate for May.
Here's a quick snapshot of what's on the agenda for today:
7am: Trading updates: Constellation Brands, Topps Tiles
10am: Eurozone unemployment for May
12pm: US MBA Mortgage Applications
1.15pm: US ADP employment change for June
3.15pm: ECB president Christine Lagarde speech
3.30pm: US Crude Oil InventoriesA report has found that an electrical substation which caused a fire that resulted in Heathrow Airport closing came from a 'preventable, technical fault'.
The root cause was reportedly detected seven years ago but not fixed. The National Energy System Operator (NESO) said moisture entering electrical components at the North Hyde substation caused the blaze at the site that supplies the UK's biggest airport with power.
It revealed an elevated moisture reading had been first detected in July 2018, but that the issue went "unaddressed", with basic maintenance by National Grid cancelled.
National Energy System Operator said:
In response to the report, Heathrow Airport said a "combination of outdated regulation, inadequate safety mechanisms, and National Grid's failure to maintain its infrastructure" that led to this "catastrophic power outage".
"We expect National Grid to be carefully considering what steps they can take to ensure this isn't repeated," it added.
Britain's energy watchdog has given the go-ahead to an initial £24bn of investment to upgrade UK energy infrastructure, but revealed the move will push up network charges on household bills by more than £100.
Ofgem's draft verdict on price controls for energy network firms approves more than £15 billion to be spent on gas transmission and distribution networks in the five years to 2031.
A further £8.9bn is set to be committed to the nation's high-voltage electricity network, which Ofgem said will power the biggest expansion of the grid since the 1960s, with another £1.3bn being earmarked.
The funding will allow 80 major energy infrastructure projects to be completed by 2030 and comes amid a push by the government to boost the UK's renewables sector to help improve energy security.
But Ofgem revealed households are set to see the network charges on bills – which make up around a fifth of average annual bills – surge by £104 to £324 by 2031 to cover the cost of the extra investment.
The regulator said this will include £30 for gas networks and £74 for the electricity grid.
It deals a blow to hopes of lower bills after the latest energy price cap change came into effect on Tuesday, seeing a 7% drop to £1,720 per year, and with the latest forecast showing another 1% fall may be in store from October.
The regulator insisted that bills would be even higher – around £30 more – without the investment, because the funding will allow the UK to make 'better use of our clean renewable energy so we are not having to pay for expensive gas plants to serve demand'.
Read the full article here
Stocks in Asia were mixed overnight with the Nikkei (^N225) down 0.6% on the day in Japan, while the Hang Seng (^HSI) rose 0.6% in Hong Kong. The Shanghai Composite (000001.SS) was 0.1% lower by the end of the session.
In South Korea, the Kospi (^KS11) lost 0.5% on the day.
It came as president Donald Trump again struck a negative tone on the trade deal with Japan in comments to the press, saying they should 'pay 30%, 35% or whatever the number is that we determine, because we also have a very big trade deficit with Japan.'
On whether the US would push back the July 9th deadline, the president noted he was 'not thinking about the pause' and that he could be 'writing letters to a lot of countries.'
This backdrop proved a trickier one for equities, and the S&P 500 (^GSPC) fell -0.11% by the close. However, that was influenced by a sharp fall for Tesla (TSLA) which slumped more than 5% after Trump posted that Elon Musk 'may get more subsidy than any human being in history, by far' and 'Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!
The tech-heavy Nasdaq (^IXIC) was 0.8% lower and the Dow Jones (^DJI) gained 0.9%.
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.
To the day ahead now, we will be hearing from central bank speakers will including ECB president Christine Lagarde, vice president de Guindos, the ECB's Cipollone and Lane, and the BoE's Taylor.
Otherwise, data releases include the ADP's report of private payrolls in the US for June, along with the Euro Area unemployment rate for May.
Here's a quick snapshot of what's on the agenda for today:
7am: Trading updates: Constellation Brands, Topps Tiles
10am: Eurozone unemployment for May
12pm: US MBA Mortgage Applications
1.15pm: US ADP employment change for June
3.15pm: ECB president Christine Lagarde speech
3.30pm: US Crude Oil Inventories