Economists are becoming increasingly concerned that the US will generate fresh turbulence in the coming weeks when it hits its debt ceiling and is unable to pay all its bills. With the two main political parties unable to agree an increase in the $31.4tn ceiling on US federal debt, Janet Yellen, Treasury secretary, has warned
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US and European companies have blamed disappointing earnings on a slower than expected economic rebound in China, after the country’s sudden reopening from pandemic restrictions prompted over-optimistic growth forecasts. Cosmetics group Estée Lauder was the most high-profile example this week, suffering its sharpest one-day share price fall on record after it cut sales forecasts because
The ban on Russian crude oil is costing Poland’s state-controlled oil company millions of dollars a day as it struggles to find alternative supplies for its Czech refinery. Daniel Obajtek, chief executive of PKN Orlen, described losing Russian oil as a forfeit of about $27mn a day because of the price difference of about $30
PwC has launched an independent review of the practices and culture of its Australian unit after the publication of internal emails related to a scandal involving the sharing of confidential government information on planned tax laws. The emails, published by a senate committee, showed how PwC had used confidential information provided by Peter-John Collins, its
Revolut chief executive Nik Storonsky has blamed recent banking turmoil for the latest delays to the fintech’s long-awaited UK banking licence, claiming the cause of the hold up “is really not us”. Revolut has been locked in discussions with the Financial Conduct Authority and Prudential Regulation Authority about a UK banking licence for more than
For the past three years, successive shocks have buffeted the UK economy. Covid-19 drove consumers online, office workers to their kitchen tables and older workers into retirement. Energy prices rocketed, while Brexit rewrote the rules of trade and immigration, reshaping the labour market. Yet the latest official data suggests this upheaval has made very little
Veteran Balkan politicians know better than to be enthusiastic about deals made under pressure in diplomatic back rooms. But the events of March 18 gave Visar Ymeri, a former leader of Kosovo’s ruling party, reason to be optimistic. “We have a deal,” the EU’s foreign affairs chief Josep Borrell said as he wrapped up a
Deals between private equity firms in Europe have plunged to their lowest levels since the Covid-19 pandemic as the buyout game of pass-the-parcel is hit by rising debt costs and investors’ concerns about the economic outlook. In the first three months of this year the value of deals struck between rival private equity firms in
City grandees are calling for an increase in pay for Britain’s top bosses to help lure and retain the best executives, warning London will otherwise suffer an exodus of talent as companies head overseas. Despite big rebellions by shareholders against chunky pay packets, some of the UK’s senior fund managers support better remuneration to hold
Warren Buffett says there would have been “catastrophic” consequences if US regulators had not insured the deposits at Silicon Valley Bank and Signature Bank, as their failures risked sparking a run at lenders across the country. “Even though the FDIC [Federal Deposit Insurance Corporation] limit is $250,000 . . . that is not the way the US is going to
Nothing prepares you for a coronation — not quite, not fully. King Charles III had waited seven decades for his moment, he had rehearsed the ceremony in the days before, yet as he approached the doors of Westminster Abbey, his face betrayed his anxiety. He turned, he muttered, he fidgeted. For much of the two-hour
Tata Steel has warned of a “material uncertainty” over the future of its UK steel business, citing tough trading conditions and a lack of clarity over government support to help it move to greener forms of steelmaking. The Indian group, which owns Britain’s biggest steelworks at Port Talbot in Wales, disclosed the warning in its
Warren Buffett’s Berkshire Hathaway sold billions of dollars worth of stock and invested little money in the US equity market in the first three months of the year, as the famed investor saw little appeal in a volatile market. Berkshire disclosed on Saturday that it had sold shares worth $13.3bn in the first quarter and
The Federal Reserve and the European Central Bank delivered interest rate rises this week, but investors now expect rate setters in the US and the eurozone to move in opposite directions. Following 10 consecutive rate rises, markets predict the Fed has finished its tightening cycle and could start cutting rates as soon as July, as
US Treasury secretary Janet Yellen sent shockwaves through Washington this week when she warned that the US government risks running out of money as soon as June 1 if Congress does not raise the debt ceiling. But 150 miles south-west of the nation’s capital, in his largely rural district in the foothills of the Blue
UBS chief executive Sergio Ermotti has shortlisted the Credit Suisse executives he plans to make part of his management team, betting they can help make a success of the most significant banking deal since the financial crisis. Among the Credit Suisse executives most likely to survive the takeover are Dixit Joshi, chief financial officer, Francesca
Crowds were gathering on London’s Mall on Saturday morning ahead of the coronation of King Charles III, heralding a day of ancient ceremony and military spectacle that will draw on a millennium of British history. Global leaders and foreign royalty will attend the event at Westminster Abbey — scene of royal coronations since William the
About an hour and a half into the coronation of Queen Elizabeth II, just as the august baritone of Richard Dimbleby proclaimed “the moment of the Queen’s crowning is come”, a BBC camera cut to a small boy, his hair glossy with punitive brushing, the splayed fingers of his hands pressed against each other in
The Labour party is drawing up plans to create a new water regulator as it seeks to address public anger over the dumping of raw sewage in Britain’s rivers, lakes and beaches. Under the proposals, a Labour government would merge most of the Environment Agency, the pollution watchdog, with the financial regulator Ofwat and the
It is not hard to see why short-term risks may be front of mind for US equity investors. If uncertainties over the US Federal Reserve’s next moves were not enough to cloud the outlook, there are bank collapses and a political stand-off looming over the US debt ceiling to worry about. But perhaps longer-term risks
When US officials announced on Monday they had found a buyer for First Republic, the second largest bank failure in American history, the successful bidder’s identity was for many in finance a foregone conclusion. Though more than a dozen institutions looked at First Republic’s assets, and four banks bid and rebid repeatedly last weekend, in