Closing post
Time to recap:
The Bank of England has rolled out looser mortgage rules that policymakers hope will help 36,000 more first-time buyers on to the housing ladder each year.
New guidelines announced by the UK’s central bank mean that individual banks and building societies can offer more high loan-to-income (LTI) mortgages, which are equal to, or worth more than, 4.5 times a borrower’s annual earnings.
While high LTI loans are usually considered more risky, the Bank said most banks were not taking advantage of their individual caps, meaning there were fewer available to borrowers than hoped.
Sam Woods, the chief executive of the Bank’s regulatory arm, the Prudential Regulation Authority, said the changes should benefit tens of thousands of first-time buyers.
In its latest financial stability report, the Bank also warned that US tariffs will hurt global growth, while governor Andrew Bailey suggested the recent increase in UK borrowing costs was part of a wider rise in bond yields.
Nvidia has become the first company to ever hit $4 trillion in market value, solidifying its position as one of Wall Street’s most-favored stocks to tap in the ongoing surge in demand for artificial intelligence technologies.
The CEO of X, Elon Musk’s social network, has announced she would step down after two years in the role.
The maker of London’s black cabs has said it will cut 180 jobs at its factory in Coventry, blaming a declining UK market for taxis.
Copper prices hit a record high in the US after Donald Trump announced he would impose a 50% tariff on the industrial metal, in the latest escalation of his trade war.
Donald Trump has said there would be more trade-related announcements today… our US politics blog is tracking the latest developments:
London black cab maker cutting 180 jobs
The maker of London’s black cabs has said it will cut 180 jobs at its factory in Coventry, blaming a declining UK market for taxis.
The London EV Company, owned by Chinese car conglomerate Geely, said that the number of cabbies is falling across the capital and the rest of the UK, denting demand for its hybrid electric cars, which combine a battery with a smaller petrol engine.
London’s black cabs are tightly regulated by Transport for London, with requirements such as a turning circle tight enough for the small roundabout outside the Savoy hotel.
Since 2018 only “zero-emissions capable” vehicles have been eligible for first-time licences. However, that market has been largely satisfied, with over 60% of the capital’s taxi fleet made up of electrified LEVC TX models, with around 9,000 operating within the city.
LEVC’s efforts to sell more cabs outside of London, and to sell van versions of the car, have not resulted in a large pick-up in sales, in part because of stiff competition.
Some people close to Geely have suggested the company, which also owns the struggling Lotus sportscar brand in the UK, might consider basing a new pure electric taxi on vehicles made in China, with final assembly carried out in the UK.
Government statistics show that the number of taxi-only driver licences fell by 7% in 2024 compared with a year earlier. At the same time, the number of private hire vehicle drivers jumped by 14%. LEVC’s vehicles do not tend to be used by many private hire vehicle drivers, such as those who drive for taxi apps Uber and Bolt, and who are thought to make up a large proportion of the overall increase in drivers.
Alex Nan, LEVC’s chief executive, said:
With the UK taxi market continuing to experience significant challenges, LEVC has reluctantly made the decision to reduce its TX manufacturing output, resulting in a round of compulsory redundancies. LEVC will of course provide full support for its customers as normal and there is no impact on the sales or aftersales of new or used TX.
LEVC firmly believes in the future of the UK taxi industry and we remain committed to our vision of being a leading provider of green mobility solutions. Despite the temporary challenges the taxi sector is facing, we are dedicated to safeguarding the iconic London black cab and are actively discussing with regulators the requirements to support the development of an all-new TX.
X CEO Yaccarino steps down
Newsflash: Linda Yaccarino, the CEO of Elon Musk’s social media platform X, has announced she’s stepping down.
Yaccarino, previously an advertising executive, was appointed two years ago after Musk bought, and then rebranded, Twitter.
During her tenure, some advertisers boycotted X due to concerns about extreme content running on the site.
Posting on X, she says:
After two incredible years, I’ve decided to step down as CEO of 𝕏.
When @elonmusk and I first spoke of his vision for X, I knew it would be the opportunity of a lifetime to carry out the extraordinary mission of this company.
I’m immensely grateful to him for entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App. I’m incredibly proud of the X team - the historic business turn around we have accomplished together has been nothing short of remarkable.
We started with the critical early work necessary to prioritize the safety of our users—especially children, and to restore advertiser confidence. This team has worked relentlessly from groundbreaking innovations like Community Notes, and, soon, X Money to bringing the most iconic voices and content to the platform. Now, the best is yet to come as X enters a new chapter with @xai.
X is truly a digital town square for all voices and the world’s most powerful culture signal. We couldn’t have achieved that without the support of our users, business partners, and the most innovative team in the world.
I’ll be cheering you all on as you continue to change the world.
As always, I’ll see you on 𝕏
Wall Street has opened higher, as the Trump trade war fails to alarm investors.
The S&P 500 index is up 0.6%, gaining 37 points to reach 6,263 points.
The tech-focused Nasdaq has gained 201 points, or almost 1%, to 20,619 points.
Updated
Trump: US interest rate is AT LEAST 3 points too high
Another day, another plea from Donald Trump for lower interest rates.
Posting on his Truth Social platform, the US president claims that US interest rates should be at least three percentage points lower, claiming there is “no inflation”.
He also labels Fed chair Jerome Powell as “Too Late” again, writing:
Our Fed Rate is AT LEAST 3 Points too high. “Too Late” is costing the U.S. 360 Billion Dollars a Point, PER YEAR, in refinancing costs. No Inflation, COMPANIES POURING INTO AMERICA. “The hottest Country in the World!” LOWER THE RATE!!!
Fact check: The annual rate of US inflation was 2.4% in May, above the Fed’s 2% target, with prices rising by 0.1% on a monthly basis.
The Fed’s current target rate is 4.25%-4.5%. Trump is suggesting that this should be 1.25%-1.5%, which would be the lowest since early 2022, before the Ukraine war drove up inflation.
Ironically, Trump’s decision to shift the deadline for trade deals to 1 August makes it harder for the Fed to justify a rate cut this month, as it creates more uncertainty.
Updated
Nvidia becomes first company worth $4 trillion
Newsflash: chipmaker Nvidia has become the first listed company to be worth $4tn.
Nvidia has hit this peak at the start of Wall Street trading, pushed up by continued investor excitement about artificial intelligence.
$NVDA > $AAPL ✅ pic.twitter.com/lBLy0Iiu3z
— Wealthonomic (@Wealthonomic1) July 9, 2025
Nvidia’s shares, which are up 2.7% in early trading, have gained 22% so far this year as the tech sector has largely shrugged off concerns about Donald Trump’s trade wars.
Nvidia semiconductors, such as its “Blackwell” chip, have been in heavy demand as artificial intelligence companies have scrambled to build high-powered systems to train their AI models on.
Last month, Nvidia’s CEO Jenson Huang cheered investors at the company’s annual shareholders meeting, telling them:
“We have many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity.”
Bank of England fines Vocalink £11.9m for compliance failure
The Bank of England has fined payment systems firm Vocalink Limited £11.9m for failing to operate adequate risk management and governance arrangement.
Vocalink, which is owned by US payment processor Mastercard, designs, builds and operates bank account-based payment systems in Britain.
Sarah Breeden, deputy governor for Financial Stability, says:
“Vocalink fell short of its obligation to have adequate risk management and governance arrangements when responding to the Bank’s Direction. Its failure to comply with that Direction in full has resulted in a significant fine.”
The Bank’s investigation identified the root cause of Vocalink’s non-compliance was the failure to have in place a sufficiently integrated risk management framework for the remediation programme. This would have ensured that risks facing the programme could be properly understood, monitored and shared amongst the three lines of defence (and external assurance providers).
It also found there were failures to escalate key risks and information to senior committees, which undermined the firm’s ability to fully comply with the Direction. The Bank considers Vocalink’s governance arrangements fell below the standards expected of a financial market infrastructure firm.
Daimler Truck Holding expects US orders to remain at “extremely” low levels until uncertainty over President Donald Trump’s trade policies subsides and freight volumes begin to recover.
Chief financial officer Eva Scherer said logistics companies have cut back on truck purchases amid a drop in shipments of tariff-hit goods such as steel and aluminum.
Scherer told Bloomberg:
“We’re in a situation where it’s very difficult to predict from a CFO perspective.
Scenario planning is more important than ever.”
Over in the US, the Trump immigration crackdown is hitting the labour supply, reports Paul Ashworth, chief North America economist at Capital Economics.
He writes:
After stemming the inflow of unauthorised immigration over the Southwest border, the Trump administration now appears to be gradually ramping up the number of detentions and removals.
This crackdown is beginning to have a more marked impact on labour supply, with the foreign-born labour force shrinking by more than one million people in the last four months.
Despite all the trade war uncertainty, the UK stock market is rising towards its highest ever levels.
The FTSE 100 is up 14 points (+0.16%) so far today at 8868 points, only around 16 points shy of its all-time closing high of 8,884 points set last month.
Lenders can apply for a waiver from today to increase the amount of high loan-to-income mortgages they issue, says BoE deputy governor Sam Woods.
Woods insists that today’s changes (outlined here) are ‘more than a tweak’.
The Bank estimates that the unused capacity of high LTI mortgages that are not being issued at the moment is equivalent to “another 36,000 high LTI first-time buyer mortgages per year in the UK”.
There are other constraits on first-time buyers, such as the need for a deposit (see here), Woods adds.
He also predicts that the Bank may need to ‘put the brakes on’, if there is a surge in high LTI lending that takes the industry total up to the overall 15% of loans limit.
BoE governor opposes forcing pension funds to invest in UK
BoE governor Andrew Bailey then calls for reforms to the UK pension system, but opposes the suggestion that funds should be forced to buy UK assets.
Q: what’s your view on the possibility that the government will mandate how much invest pension funds should invest in UK assets?
Bailey replies that the UK only has a low level of pension fund investment in “the real economy in this country”, and that structural changes to the pension fund industry (consolidating funds) would be helpful.
However, he says:
I do not support mandating. I don’t think that’s appropriate.
He adds that the current government is taking the same approach as its predecessor on this issue, adding
I think reforming the pension system does, to be honest, require a lot of heavy lifting, but it needs to be done.
It will take a bit of time, but it needs to be done for these structural reasons. I don’t support mandating, but I do hope that we can reach a point where there is a natural ability to tackle this problem.
Earlier this year, chancellor Rachel Reeves said she would create a “backstop” power to force large pension funds to back British assets, if necessary, to drive up investment.
Bailey: economic fragmentation bad for activity and employment
Q: Will a global trade war lead to UK job losses?
BoE governor Bailey replies that there’s been a big increase in uncertainty around trade and tariffs, pointing out:
Fragmenting the world economy is bad for activity in the world economy. That’s fairly simple trade theory.
That fragmentation is bad for economic activity, and is therefore bad for employment, he adds:
“Obviously, in that sense, there is a consequence. So we have to watch that very carefully.”
Bailey adds that it was a “very good thing” that the UK government was first to negotiate a trade agreement with the US.
Q: Your report warns that a weak IPO market is resulting in fewer exit opportunities for private equity backed firms. How concerned are you about the lack of buoyant public markets, including in London? (my colleague Kalyeena Makortoff asks).
BoE governor Andrew Bailey replies that firms are telling the Bank that they are delaying investment decisions due to the higher level of uncertainty in the world economy. That can include decisiont on whether to raise capital, and in which market to raise it.
Bailey adds:
It’s not surprising, because economics and economic theory tells us this, that since investment decisions are typically irreversible. Once you take them, once you start them, you’ve got to go on, as it were. You usually can’t turn back.
Then if uncertainty increases, then the option value of delaying goes up. And so you do see delayed investment, and I think we are seeing that at the moment.
Bailey: Rise in UK bond yields part of global move
Q: What does the bond market reaction to the chancellor’s tears (last week) say about the fragility of the bond market?
Andrew Bailey replies that there have been “broadly similar” movements in global government bond markets.
Bailey says:
We’ve seen steepening of yield curves globally. So I think it’s important to start in that context. There’s nothing, I would say, particularly UK focused about that. That steepening pattern is a global trend which the UK market has been part of.
Bailey points out that the rise in UK bond yields last week did reverse (they fell back after Keir Starmer backed chancellor Rachel Reeves, easing concerns of a change of chancellor).
That, he adds, is further evidence that we are in a period of more volatile markets, and one where there is also “fast reversion”.
Updated
Andrew Bailey then explains that the BoE is putting its recommendation that lenders should offer more high loan-to-income mortgages into place from today.
BoE governor Andrew Bailey then warns that another bout of trade war market turbulence could hurt the UK economy.
He reminds reporters in London about the market slump in early April after Donald Trump announced new tariffs, in which risky asset prices fell and the US dollar weakened.
Bailey says core government bond markets remained orderly during this stressful period, but warns that conditions might have become more strained if the episode of volatility had lasted for longer.
Risk sentiment in some markets then recovered after president Trump paused these tariffs, Bailey reminds us – before warning that the risksk of another selloff remain high.
He says:
There has been a notable change in the usual correlation patterns between the dollar and other US assets, including equities and government bond yields.
And given these developments, the risk of sharp falls in risky asset prices, abrupt shifts in asset allocation and a more prolonged breakdown in historical correlations remains high, and vulnerabilities in market based finance could amplify such moves which could impact the availability and cost of credit here in the UK.
Updated
BoE's Bailey: geopolitical, trade and sovereign debt risks still high
Bank of England governor Andrew Bailey has warned that the UK is particularly exposed to geopolitical risks, as it is an open economy with a large financial sector.
Briefing journalists in London about today’s financial stability report, he says:
Risks and uncertainty associated with geopolitical tensions, global fragmentation of trade and financial markets and pressures on sovereign debt markets are still elevated.
Some geopolitical risks have crystallized and material uncertainty around the global macroeconomic outlook persists.
Millions more face mortgage timebomb
The Bank of England is also warning that over three and half million mortgage holders are on track to pay higher payments by 2028.
That’s because around 30% of mortgage holders have not yet refixed their mortage deals since interest rates started to rise at the end of 2021.
This means the full impact of higher interest rates has not yet passed through to all mortgagors, the Bank says.
However, another 2.5 mortgage holders can look forward to a drop in payments. That’s because rates peaked at 5.25% in August 2023 and were held for 12 months, followed by four quarter-point cuts over the last year.
BoE: US tariffs will weigh on world growth
Donald Trump’s trade war has created uncertainty that will hurt growth in the global economy, the Bank of England warns.
It’s new Financial Stability Report (FRS) also singles out the Middle East crisis as a factor making it hard to forecast inflation.
The BoE says:
Since the November FSR, the US announced increased tariffs, and in response some other jurisdictions announced changes to their own trade policies. Negotiations between the US and China led to a partial reversal of tariff increases in May, with further agreement subsequently reached, and a trade deal has been agreed between the US and the UK. There remains, however, considerable unpredictability about the near-term evolution of global trade policies with negotiations continuing between the US and a number of its trading partners.
These developments are expected to weigh on world growth, driven both by the direct impact of higher tariff barriers and by the dampening effect of trade policy uncertainty on firms’ investment decisions.
There is a high degree of economic uncertainty around the outlook, and there are downside risks to global growth in the near term, for example in the event of significant global supply chain disruption or further escalation of conflict in the Middle East leading to higher energy prices. These factors also contribute to uncertainty around the future path of inflation.
BoE: accumulating a deposit is main barrier to owning a home
The Bank of England’s financial policy committee also points out that accumulating a sufficient deposit continues to be the main barrier to owning a home.
Its new financial stability report, just released, shows that almost 80% of prospective first-time buyers (FTB) do not have sufficient savings to cover a 5% deposit on a median-priced property typically purchased by an FTB in their area.
Another 6% are restrained by lenders’ affordability assessments, and loan to income (LTI) ratio caps.
A further 1% would not meet other requirements lenders set to manage their high-LTI lending (such as rules around minimum salary), leaving just 15% of prospective first-time buyers who can actually (potentially) buy a typical appropriate property in their area!
UK banks can increase riskier mortgage lending, BoE says
Newsflash: The Bank of England is recommending that lending rules are relaxed so that banks and building societies can issue more mortgages at high loan-to-income levels.
The BoE’s Financial Policy Committee is recommending that individual lenders should be allowed to increase their share of lending at high LTIs to above the current limit of 15%.
This could make it easier for borrowers to stretch themselves to afford a more expensive property.
High loan-to-income loans are defined as those at a ratio above 4.5. Loans above this level are riskier, as borrowers could struggle to meet mortgage payments if their incomes fell, or if interest rates rose.
Announcing the plan, the FPC says:
The Committee noted its role in supporting the Government’s priority to make home ownership more accessible and discussed the UK housing market and the role of regulatory mortgage policies.
It wants the overall lending market to restrict high LTI loans to 15% of total demand, while allowing individual lenders to exceed it. The loan-to-income lending limit was introduced in 2014, as part of a package to cool the housing market.
The FPC says:
The Committee noted that the original policy intent of the LTI flow limit recommendation was to ensure the flow of new residential mortgages at high LTIs did not exceed 15% of total new mortgages in aggregate.
The FPC judged that the aggregate 15 per cent limit continued to strike the right balance between providing appropriate protection from the increased risk to economic growth of large cuts to consumption associated with an over-indebted household sector, while providing sufficient capacity for otherwise creditworthy households to borrow at higher LTIs.
As such, it has recommended the Prudential Regulation Authority (PRA) and the FCA amend implementation of its LTI flow limit to allow individual lenders to increase their share of lending at high LTIs while aiming to ensure the aggregate flow remained consistent with the limit of 15%.
Updated
Here’s our news story about the jump in the US copper price:
The oil price has hit its highest level in two weeks, after a cargo ship attacked in the Red Sea sank.
The Eternity C cargo ship sank in the Red Sea following an attack on Monday, blamed on Yemen-Houthi militants, which killed at least four crew members.
Brent crude has risen by 0.6% today to $70.71 per barrel, the highest since 23 June.
Tom Bailey, head of research at HANetf, has warned that the threat of copper tariffs is leading to more of the metal becoming ‘trapped’ in warehouses, rather than being used.
Bailey explains that this could distort prices for this vital metal:
Copper sits at the centre of a looming supply-demand crunch. On one side is surging demand driven by grid upgrades, the rapid buildout of AI data centres, and the ongoing urbanisation of emerging markets. On the other is a supply base that is ageing, expensive, and increasingly unreliable. Ore grades are declining, discoveries are rare, and new mines take over a decade to come online.
“However, tariffs mean that a new dynamic is potentially emerging: trapped copper. With tariffs looming, US buyers have rushed to bring in copper ahead of schedule. But much of this metal is not being consumed. Instead, it is sitting in warehouses or locked in financing agreements. Due to high US premiums, it is uneconomical to export. In practice, this copper is being stranded inside the US, unavailable to the rest of the world.
The result could be distorted physical markets, with those outside the US forced to compete for a shrinking pool of freely available copper.
German chancellor Friedrich Merz is optimistic that the European Union can agree a trade deal with the United States by the end of this month at the latest.
Merz told lawmakers on Wednesday:
“Our goal is to reach a trade agreement with the United States of America as quickly as possible that links mutual trade between America and the European Union with the lowest possible customs duties.”
Merz added that he is in close contact with US president Donald Trump and the European Commission.
Shares in some European pharma companies have dropped this morningn, after Donald Trump threatened to implement up to 200% tariffs on imported pharmaceuticals.
The falls are modest, though, after Trump also said he would give drugmakers about one year “to get their act together”.
In London, AstraZeneca’s shares have dipped by 0.77%.
Switzerland’s Novartis has lost 0.8%, while Belgium’s UCB has dropped by 1.75%.
Dan Coatsworth, investment analyst at AJ Bell, says:
“The pressure is now on for drug companies to expand US production facilities so they are effectively on the doorstep of American customers. Boosting the manufacturing sector and creating more jobs is central to Trump’s tariff strategy, and the likes of AstraZeneca already have plans in motion to expand their US footprint.
Carsten Menke, Head of Next Generation Research at Julius Baer, says the copper tariffs will be inflationary domestically in the US and deflationary internationally – which matches the price action we’ve seen since last night.
Menke also points out that the jump in US copper prices (13% yesterday) is less than the 50% tariff, implying traders expect some imports will be exempt, saying:
President Trump announced the imposition of 50% import tariffs at a cabinet meeting yesterday. While US-traded futures jumped on the news, the price differential is well below the tariff level, pointing to expectations of exemptions for key suppliers or expectations of different demand dynamics.
As already mentioned, we remain of the conviction that the tariffs will be inflationary domestically in the US and deflationary internationally. Generally, we do not see a supply-constrained market, but we want to wait for the dust to settle before reassessing our outlook.
Updated
Malaysia cuts interest rates after tariff threat
Donald Trump’s trade war has helped nudge Malaysia’s central bank into cutting interest rates.
The Monetary Policy Committee (MPC) of Bank Negara Malaysia has cut its policy rate by a quarter of one percentage point, to 2.75%, today.
Malaysia’s MPC cited “tariff developments” (Trump announced a 30% tariff on imports from Malaysia this week), saying:
The latest indicators point towards continued expansion in global growth, supported by sustained consumer spending and to some extent, front-loading activities. The global growth outlook would remain supported by positive labour market conditions, less restrictive monetary policy and fiscal stimulus.
This outlook is weighed down by uncertainties surrounding tariff developments, as well as geopolitical tensions. Such uncertainties could also lead to greater volatility in the global financial markets and commodity prices.
The European Union is working closely with Donald Trump’s administration to reach a trade deal, but Brussels is getting ready for all scenarios, European Commission President Ursula von der Leyen has told the European Parliament this morning.
Von der Leyen said:
“We stick to our principles, we defend our interests, we continue to the work in good faith, and we get ready for all scenarios.”
Yesterday, Trump said the EU were now being “very nice to us”, and indicated that the US was “probably two days off” from sending Europe a letter on tariffs.
In the short term, copper prices are expected to remain volatile as markets adjust to the new tariff landscape, predicts Daniela Sabin Hathorn, senior market analyst at Capital.com, who explains:
Factors contributing to this volatility include potential shifts in global supply chains, as exporters may redirect copper shipments to other markets, and the possibility of retaliatory measures from affected countries. Additionally, the U.S.’s limited domestic smelting capacity could influence price dynamics, as the country currently imports about half of its copper needs.
Ultimately, the dramatic rally in copper was triggered by a policy shift that caught the market off guard. The U.S. government’s move to impose steeper-than-expected tariffs has introduced a new layer of uncertainty into an already sensitive commodities landscape. With President Trump’s trade strategy known for sudden pivots, traders would be wise to stay alert for further developments that could reshape the outlook once again.
WPP shares slide 13% after cutting profit forecast
Shares in advertising giant WPP have slumped by 13%, after it slashed its forecast for revenues and profits this year and blamed a “challenging economic backdrop”.
WPP warned that “continued macro uncertainty” was weighing on client spend and leading to weaker net new business than originally anticipated.
The company now expects its like-for-like revenue, excluding fees paid to suppliers, will fall by between 4.2% to 4.5% in the first half of this financial year.
Mark Read, chief executive officer of WPP – whose departure was announced a month ago – says June was tougher than expected:
“Since the start of the year, we have faced a challenging trading environment with macro pressures intensifying and lower net new business. While we expected the second quarter to be similar to the first quarter, performance in June was worse than anticipated and we expect this pattern of trading in the first half to continue into the second half.
“As a result, we are updating our guidance for the full year and reducing our expectations on LFL revenue less pass-through costs growth to -3% to -5% (from flat to -2%) with a year-on-year decline in headline operating profit margin of 50 to 175 bps (vs. around flat previously).
Shares in copper producer Antofagasta have dropped by over 3% at the start of trading in London.
Other miners are also weakening, with Glencore (-2.2%) and Anglo American (-1.8%) among the FTSE 100 fallers.
Copper tariffs: What the experts say
Analysts at investment bank Jefferies have warned that the new 50% tariff on copper will drive up costs in the US economy, saying:
“The US does not have nearly enough mine/smelter/refinery capacity to be self-sufficient in copper.
“As a result, import tariffs are likely to lead to continued significant price premiums in the US relative to other regions.”
Tony Sycamore, market analyst at IG, questioned whether the Trump administration can easily make the US self-sufficient in copper:
The aim of the new copper levy is to encourage domestic copper production, which is a challenging objective given the complexities of relocating a copper mine.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, says the latest trade news from Trump was not reassuring:
First, hopes of an extension to the current tariff pause—which ends today—were dashed after Donald Trump threatened that the August 1st deadline will be final, with no further extensions.
Second, he slapped a 50% tariff on copper and announced that pharmaceuticals will face 200% tariffs within a year. The news sent COMEX copper futures to a record high, while copper prices on other platforms like India’s MCX dropped, on expectations that surplus supply would shift to alternative markets.
Trump: more trade news coming up
Donald Trump is expected to send more letters to countries, informing them of new tariff rates or announcing trade deals, today.
Last night on his Truth Social site, the US president wrote:
We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon. Thank you for your attention to this matter!
In a separate post, Trump also insisted that his new deadline of 1 August to reach trade deals would not slip, writing:
As per letters sent to various countries yesterday, in addition to letters that will be sent today, tomorrow, and for the next short period of time, TARIFFS WILL START BEING PAID ON AUGUST 1, 2025. There has been no change to this date, and there will be no change. In other words, all money will be due and payable starting AUGUST 1, 2025 - No extensions will be granted. Thank you for your attention to this matter!
Updated
Copper price outside US falls
Copper prices outside the US have fallen, following Trump’s threat of a 50% tariff on imports.
On the London Metal Exchange, the metal slid as much as 2.4% at the open, before easing to change hands at $9,653 a ton, 1.4% lower, Bloomberg reports.
US copper prices hit record high as Donald Trump threatens 50% tariff
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
There’s turmoil in the copper market after it became the latest frontline in Donald Trump’s trade war
The copper price has hit a record high in the US, and fallen in other markets, after Donald Trump announced he would impose a 50% tariff on imported copper.
During a cabinet meeting at the White House, Trump revealed “Today, we’re doing copper,” adding:
“I believe the tariff on copper, we’re going to make it 50%.”
Copper is a critical element in electric vehicles, the power grid, military hardware and many consumer goods.
It’s known as “Dr Copper” in the financial markets, because its price is a gauge of the health of the world economy.
Investors’ reaction to Trump’s annoucement was swift – copper futures traded in the US jumped by over 10% to $5.682 per pound, closing at an all-time high.
That’s the biggest jump on records stretching to 1969, the Financial Times reported.
More expensive domestic copper, and a 50% tariff on imports of the metal, will add to inflationary pressures on US businesses and consumers.
Trump also said he would soon introduce levies on semiconductors and pharmaceuticals – two shoes which investors have been waiting to drop for months.
Pharmaceutical imports are also “going to be tariffed at a very, very high rate”, the president said. “Like 200%.”
“We’re going to be announcing pharmaceuticals, chips and various couple of other things – you know, big ones,” he added, of the administration’s tariff plans.
The agenda
10:30am BST: Bank of England publishes its latest Financial Stability Report
11am BST: Bank of England press conference
Noon BST: US weekly mortgaage application data
1.30pm BST: Parliament’s business committee quiz Trade minister Douglas Alexander and Cabinet Office minister Pat McFadden on economic security
Updated
