News

The Bank of England has increased interest rates by half a percentage point to a 15-year high of 4 per cent, but suggested that rates may have peaked. The BoE, which is now anticipating a milder recession this year than previously thought, said further rises would only be needed if there were new signs that

Rishi Sunak is facing a big test of his authority as he agonises over whether he can sell an outline deal on the Northern Ireland protocol to pro-UK unionist politicians in the region and Eurosceptic Tory MPs. After months of talks, negotiators have briefed the UK prime minister that a deal is taking shape to

Indian billionaire Gautam Adani has succeeded with his $2.4bn equity sale by securing bids to cover all shares on offer despite a short seller report targeting his industrial empire. The equity sale, intended to widen the shareholder base of Adani Enterprises, became a test of investor faith after short seller Hindenburg Research released a report

The EU is planning to hit back at the US’s $369bn Inflation Reduction Act with looser state aid rules on tax credits for green investment. Under a draft plan seen by the Financial Times, the European Commission will further loosen the rules to support investment into new production facilities in green sectors, including via the

UK prime minister Rishi Sunak has sacked Nadhim Zahawi as chair of the Conservative party after his ethics adviser concluded there had been “serious breaches” of the ministerial code. Sunak finally jettisoned Zahawi after weeks of stories about his tax affairs, which have been politically damaging for the ruling party during a historic cost of

The UK tax authority has admitted that it gave misleading information last summer when it said no government minister was being investigated, even though Nadhim Zahawi was the subject of a probe. HM Revenue & Customs has now apologised for wrongly stating last June that no ministers were under investigation — mistakes it blames on

Shares in the Adani Group’s flagship company fell 17 per cent on Friday in a sell-off fuelled by short seller allegations of fraud involving the business empire of one of the world’s richest men. Other companies tied to Gautam Adani’s conglomerate also dropped sharply as the Indian tycoon pushes ahead with a Rs200bn ($2.4bn) share

US economic growth slowed less than expected in the final quarter of 2022, even as the Federal Reserve’s aggressive campaign to raise borrowing costs began to weigh more heavily on business activity. The world’s largest economy expanded 2.9 per cent on an annualised basis between September and December, according to data published by the commerce

Germany is to supply 14 Leopard 2 tanks to Kyiv, a significant ramping up of western military aid that was condemned by Russia and prompted cheers throughout Ukraine. Chancellor Olaf Scholz announced the move at a cabinet meeting on Wednesday, describing it as the result of “intensive consultations that have taken place between Germany and

UK public sector borrowing more than doubled last month to hit the highest December figure on record, driven up by higher debt interest payments and the government’s measures to help households and businesses with soaring energy prices. Public sector net borrowing hit £27.4bn last month, up from a revised £10.7bn in the same month in

UK prime minister Rishi Sunak has asked his ethics adviser to investigate the tax affairs of Nadhim Zahawi in a move that raises questions about the future of the Conservative party chair. The government is confronting an ethics crisis on two fronts with BBC chair Richard Sharp facing allegations he helped Boris Johnson secure a

Brazil and Argentina will this week announce that they are starting preparatory work on a common currency, in a move which could eventually create the world’s second-largest currency bloc. South America’s two biggest economies will discuss the plan at a summit in Buenos Aires this week and will invite other Latin American nations to join.

Germany dashed its allies’ hopes that it would approve the dispatch of battle tanks to Ukraine on Friday when a high-profile defence ministers’ meeting failed to reach an agreement. Many western countries argue that the German-made Leopard 2 battle tanks would greatly help Kyiv mount a counteroffensive against Russia, but Berlin has yet to agree,

Google has announced it will axe 12,000 staff, joining its peers in the technology world that have responded to economic pressures with a wave of job cuts. The cuts will affect around 6 per cent of the total workforce of its owner Alphabet and forms part of an industry-wide cull that has affected more than

Labour leader Sir Keir Starmer will on Thursday tell the world’s financial elite in Davos that he wants to improve Britain’s relations with the EU, declaring the post-Brexit trade deal is damaging the UK economy “as every day passes”. Starmer and Rachel Reeves, shadow finance minister, told the Financial Times they would rebuild the UK economy

UK inflation slowed for the second consecutive month in December after it hit a 41-year peak in October, although economists do not expect the change to ease pressure on the Bank of England to raise interest rates. The annual rate of consumer price inflation declined to 10.5 per cent in December, from 10.7 per cent

The UK battery start-up Britishvolt plans to appoint administrators after last-ditch efforts to secure emergency funding from a group of investors failed. The company on Tuesday filed a notice to the High Court that it intended to appoint an administrator, a move that threatens to undermine the UK’s ambitions to create its own battery manufacturing

Germany’s defence minister has announced her resignation, triggering fresh uncertainty for Europe’s most populous nation as it confronts critical decisions about its response to Russia’s invasion of Ukraine. Christine Lambrecht, who has faced harsh criticism for her handling of defence policy as well as a succession of gaffes, said that a “months-long media focus” on

Russia’s revenue from fertiliser exports soared last year despite a decline in sales volumes, as crop nutrient prices rose sharply after its invasion of Ukraine. In the first 10 months of 2022, Russian fertiliser exports jumped 70 per cent to $16.7bn compared to the same period in 2021, according to UN data. Import statistics from

Global bond markets posted a powerful rebound in the first fortnight of 2023, fanning investors’ hopes that last year’s fixed-income retreat is over. Bonds are on track for their best January performance in more than three decades, spurred by a growing conviction that inflation has peaked on both sides of the Atlantic. The Bloomberg Global