UK stocks recover after sell-off triggered by hefty tariffs
April 8 (Reuters) - Britain's main indexes recovered from their lowest levels in more than a year on Tuesday, as investors look for any indication of Washington softening its stance on the aggressive tariffs that have roiled global markets over the last few days.
The blue-chip FTSE 100 (.FTSE), opens new tab rose 1.4%, as of 1000 GMT, after falling for four consecutive sessions.
here.
The domestically focused midcap index (.FTMC), opens new tab also gained 2.5%, after hitting its lowest point since November 2023 in the previous session.
Markets had been unsettled by U.S. President Donald Trump's announcement of sweeping trade tariffs last week, stoking fears of a global recession.
Trump said on Monday he would talk to China, Japan and other countries over the tariffs, but was not looking at a pause on the duties.
Separately, data from funds network Calastone showed British investors had piled into U.S. stocks in the weeks before Trump's tariff announcement.
During the day, 94 of the FTSE 100 stocks gained.
UK's aerospace and defence index (.FTNMX502010), opens new tab rose more than 5%, with Babcock International Group (BAB.L), opens new tab leading the gains on the blue-chip index, followed by Rolls-Royce (RR.L), opens new tab and BAE Systems (BAES.L), opens new tab.
The energy index (.FTNMX501010), opens new tab climbed 3% as oil prices rebounded from a near four-year low in the previous session.
Industrial metal miners (.FTNMX551020), opens new tab gained 2%, with Glencore (GLEN.L), opens new tab advancing 3% after indigenous groups in Peru stopped blocking access to the company's Antapaccay copper mine following an agreement with government officials.
Company-wise, Howden Joinery (HWDN.L), opens new tab rose 2% after the kitchen and joinery supplier said Jackie Callaway would succeed Paul Hayes as the chief financial officer.
Investment firm 3i Group (III.L), opens new tab has paused the sale process of pet food maker MPM to assess the impact of U.S. tariffs, Bloomberg News reported on Monday. Its shares rose 3%.
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South Wales Argus
21 minutes ago
- South Wales Argus
Nigel Farage calls for ‘re-industrialisation' of Wales
On a visit to South Wales, the leader of Reform UK said the resumption of traditional steelmaking and coal production is the party's long-term ambition if it comes to power. The speech came one year ahead of the Senedd elections in May next year, where the party is looking to end Labour's 26 years of domination. Addressing reporters, Mr Farage acknowledged that plans to open a traditional furnace could take years and cost 'in the low billions'. The GMB Union has branded the plans 'more lies from an opportunistic chancer'. Port Talbot's remaining blast furnaces were shut down in September, with a new electric arc furnace being built in their place. Tata Steel, the owner of the plant, said the closure of the furnaces was necessary, with the steelworks losing £1m a day. 'Our ambition is to re-industrialise Wales,' Mr Farage said. 'We are going to be using more steel over the next few years than we have probably ever used. 'As we increase military spending and as we attempt a house building programme in Wales, and even more so in England, of massive proportions, just to catch up with the population explosion over the last 20 years, we are going to need a lot of steel.' Tata Steel's Port Talbot steelworks in south Wales (Ben Birchall/PA) The Reform leader said 'specific types of coal' are needed in the UK, particularly for a new blast furnace. 'I'm not saying let's open all of the pits,' he said. 'What I am saying is coal, specific types of coal for certain uses that we still need in this country – and we certainly will need for the blast furnaces here – we should be producing ourselves rather than importing.' While he acknowledged 'mining is dangerous', Mr Farage said the industry could provide well-paying jobs. The Reform leader acknowledged the plan to open a new furnace would cost 'in the low billions' and would be 'no easy thing'. 'It's a massive, expensive job to reopen blast furnaces, we're going to need cheaper energy, we're going to need much cheaper coal, we are going to need private business partners prepared to come into a joint venture,' he said. Responding to the GMB Union allegations that his party's plans were 'lies', Mr Farage said the union was tied to the Labour Party as one of its biggest funders. He said: 'They see us as a challenge, and therefore, they'll be rude about us. 'What you will find is that increasingly, GMB members are going to vote for us, and the more GMB members vote for us, the more upset GMB officials and leaders will become. 'Frankly, the trade unions have done nothing to protect British workers through open borders over the last 20-25 years.' During his speech, Mr Farage said he doubted that the electric arc furnace, which is due to come online in 2028, 'will ever, ever be switched on'. Challenged on what evidence he had, he argued that with British energy prices being so high, it would be producing 'very, very expensive secondary steel'. He added: 'I hope I'm wrong, an electric arc furnace is not the real deal, but it's better than nothing.' Mr Farage said the party's campaign for the Senedd election next May 'starts today', but would not say when Reform would announce a leader in Wales. Regional officer Ruth Brady, speaking at the GMB's annual conference in Brighton, said: 'The people of Port Talbot will see this for what it is – more lies from this opportunistic chancer. 'Nigel Farage was happy to let British Steel go to the wall. He'll trot out any line when the cameras are rolling. He doesn't care about steel communities or steel workers.' Ms Brady said the plans to shut the blast furnaces were made by the last Tory government and the union wanted Labour to 'make good on their promises to our members in Port Talbot'. Political opponents hit out at Reform's plans, with a Welsh Labour spokesperson saying the people of Wales would 'see through' Mr Farage's false hopes and promises. 'His answer is to bring back the mines. The only thing Nigel Farage is trying to mine is votes from communities that have already gone through tough times,' they said. 'Nigel Farage has today brought his fantasy politics and magic money tree to Port Talbot. He's gambling with real people's livelihoods.' Darren Millar, leader of the Welsh Conservatives in the Senedd, accused Mr Farage of making 'wild promises' without speaking to Tata. Welsh Liberal Democrat MP David Chadwick argued mining was Wales' past, not its future. Nigel Farage acknowledged 'mining is dangerous' but said the industry could provide well-paying jobs (Ben Birchall/PA) 'My relatives in South Wales worked hard to ensure that their children and grandchildren wouldn't have to do the dangerous work of going down the pits and for future generations to have better opportunities in life,' he said. 'The fact that Nigel Farage doesn't see this shows how poorly he understands Welsh communities.' Heledd Fychan, speaking for Plaid Cymru, accused Mr Farage of 'taking advantage' after the industry said reopening the existing furnaces would be 'impossible.' 'You can imagine my surprise at his calls to reopen the coal mines in Wales, especially considering the actions taken by his political hero, Margaret Thatcher,' she said. 'Reform clearly have no interest in actually improving the lives of the people of Wales, they can only come up with unrealistic and unsubstantiated headlines that will be of no material benefit to the people of Port Talbot or Wales. Greenpeace also hit out at the plans, saying bringing back British coal 'has about as much chance of success as resurrecting dinosaurs'.
Leader Live
33 minutes ago
- Leader Live
Nigel Farage calls for ‘re-industrialisation' of Wales
On a visit to South Wales, the leader of Reform UK said the resumption of traditional steelmaking and coal production is the party's long-term ambition if it comes to power. The speech came one year ahead of the Senedd elections in May next year, where the party is looking to end Labour's 26 years of domination. Addressing reporters, Mr Farage acknowledged that plans to open a traditional furnace could take years and cost 'in the low billions'. The GMB Union has branded the plans 'more lies from an opportunistic chancer'. Port Talbot's remaining blast furnaces were shut down in September, with a new electric arc furnace being built in their place. Tata Steel, the owner of the plant, said the closure of the furnaces was necessary, with the steelworks losing £1m a day. 'Our ambition is to re-industrialise Wales,' Mr Farage said. 'We are going to be using more steel over the next few years than we have probably ever used. 'As we increase military spending and as we attempt a house building programme in Wales, and even more so in England, of massive proportions, just to catch up with the population explosion over the last 20 years, we are going to need a lot of steel.' The Reform leader said 'specific types of coal' are needed in the UK, particularly for a new blast furnace. 'I'm not saying let's open all of the pits,' he said. 'What I am saying is coal, specific types of coal for certain uses that we still need in this country – and we certainly will need for the blast furnaces here – we should be producing ourselves rather than importing.' While he acknowledged 'mining is dangerous', Mr Farage said the industry could provide well-paying jobs. The Reform leader acknowledged the plan to open a new furnace would cost 'in the low billions' and would be 'no easy thing'. 'It's a massive, expensive job to reopen blast furnaces, we're going to need cheaper energy, we're going to need much cheaper coal, we are going to need private business partners prepared to come into a joint venture,' he said. Responding to the GMB Union allegations that his party's plans were 'lies', Mr Farage said the union was tied to the Labour Party as one of its biggest funders. He said: 'They see us as a challenge, and therefore, they'll be rude about us. 'What you will find is that increasingly, GMB members are going to vote for us, and the more GMB members vote for us, the more upset GMB officials and leaders will become. 'Frankly, the trade unions have done nothing to protect British workers through open borders over the last 20-25 years.' During his speech, Mr Farage said he doubted that the electric arc furnace, which is due to come online in 2028, 'will ever, ever be switched on'. Challenged on what evidence he had, he argued that with British energy prices being so high, it would be producing 'very, very expensive secondary steel'. He added: 'I hope I'm wrong, an electric arc furnace is not the real deal, but it's better than nothing.' Mr Farage said the party's campaign for the Senedd election next May 'starts today', but would not say when Reform would announce a leader in Wales. Regional officer Ruth Brady, speaking at the GMB's annual conference in Brighton, said: 'The people of Port Talbot will see this for what it is – more lies from this opportunistic chancer. 'Nigel Farage was happy to let British Steel go to the wall. He'll trot out any line when the cameras are rolling. He doesn't care about steel communities or steel workers.' Ms Brady said the plans to shut the blast furnaces were made by the last Tory government and the union wanted Labour to 'make good on their promises to our members in Port Talbot'. Political opponents hit out at Reform's plans, with a Welsh Labour spokesperson saying the people of Wales would 'see through' Mr Farage's false hopes and promises. 'His answer is to bring back the mines. The only thing Nigel Farage is trying to mine is votes from communities that have already gone through tough times,' they said. 'Nigel Farage has today brought his fantasy politics and magic money tree to Port Talbot. He's gambling with real people's livelihoods.' Darren Millar, leader of the Welsh Conservatives in the Senedd, accused Mr Farage of making 'wild promises' without speaking to Tata. Welsh Liberal Democrat MP David Chadwick argued mining was Wales' past, not its future. 'My relatives in South Wales worked hard to ensure that their children and grandchildren wouldn't have to do the dangerous work of going down the pits and for future generations to have better opportunities in life,' he said. 'The fact that Nigel Farage doesn't see this shows how poorly he understands Welsh communities.' Heledd Fychan, speaking for Plaid Cymru, accused Mr Farage of 'taking advantage' after the industry said reopening the existing furnaces would be 'impossible.' 'You can imagine my surprise at his calls to reopen the coal mines in Wales, especially considering the actions taken by his political hero, Margaret Thatcher,' she said. 'Reform clearly have no interest in actually improving the lives of the people of Wales, they can only come up with unrealistic and unsubstantiated headlines that will be of no material benefit to the people of Port Talbot or Wales. Greenpeace also hit out at the plans, saying bringing back British coal 'has about as much chance of success as resurrecting dinosaurs'.
The Independent
38 minutes ago
- The Independent
Democrats have a dirty secret - they actually like some of the tax cuts in Trump's ‘big beautiful bill'
Some of the sweeping tax cuts proposed in President Donald Trump 's massive spending package have found support among Democrats — even as they are expected to oppose the legislation over proposed cuts to Medicaid and other government services when it comes up for debate in the Senate later this month, according to a new report. The gargantuan budget package, which House Republicans and the White House have dubbed the One Big Beautiful Bill Act, passed the House by a single vote last month and is now drawing heat from fiscal hawks in both chambers as well as Tesla CEO Elon Musk, who was fresh off his months-long stint as a special government employee when he began threatening to back challengers to any legislator who votes for the bill. Still, there are facets of the proposal that have appeal for some Democrats, the New York Times reports. Virginia Rep. Don Beyer, a Democrat who is also a wealthy car dealership owner, told the Times his party is 'in general very much in favor of reducing taxes on working people and the working poor' when asked about Trump's plan to end taxes on service workers' tips. 'Those people are living on tips,' he added. Trump's tip tax cut plan has also attracted attention from Sen. Jacky Rosen of Nevada, a state where service workers make up a large and powerful voting bloc that has traditionally supported Democrats but shifted to Trump in large numbers during the 2024 presidential election, handing him the Silver State's electoral votes. Rosen, a Democrat, took to the Senate floor last month to advance a bill approving Trump's 'no tax on tips' plan. It passed unanimously even though the measure was largely symbolic because the U.S. constitution requires tax laws to originate in the House 'I am not afraid to embrace a good idea, wherever it comes from,'. she said at the time in remarks on the Senate floor. Yet despite the support for some of the individual tax provisions in the plan, it's highly unlikely that it will be able to muster enough if any Democrats to ease the way to Trump's desk, even under a Senate procedure known as budget reconciliation, which fast-tracks some types of spending legislation without subjecting it to the upper chamber's de facto 60-vote threshold for passage. Democrats are expected to unanimously vote against the legislation in the upper chamber, where it has also attracted opposition from some Republicans who've complained that the cuts to spending in the package don't go far enough to offset the reduced revenue caused by provisions meant to enact Trump campaign promises to end taxes on tips for service workers, as well as taxes on overtime pay for hourly workers and on social security benefits for seniors. Nonpartisan experts such as those at the Congressional Budget Office have warned that the reduced tax receipts would blow a massive hole in the federal budget and jeopardize America's long-term fiscal outlook, but that hasn't stopped some prominent Democrats from getting behind the individuals tax cuts. Trump and his allies hope the prominent tax cut proposals will blunt Democrats' efforts to paint the One Big Beautiful Bill Act as a giveaway to wealthy GOP donors that will gut government services while only providing limited relief for working-class voters. To that end, the president and others in his camp have routinely taken to social media to argue that anyone who votes against the bill is effectively voting for tax increases because the legislation makes permanent a number of temporary tax cuts enacted in the 2017 Tax Cuts and Jobs Act, which Trump signed into law during his first term. Democrats, meanwhile, remain opposed to the bill's massive cuts to Medicare and other measures that make it harder for people to claim tax credits meant to boost lower-income Americans' bottom lines. Rep. Brad Schneider, an Illnois Democrat, told the Times that the whole bill had to be considered rather than any individual provision or provisiosn. 'Any one thing — a tax credit or a tax cut — might make sense, but you've got to take a look at the whole picture,' he said.
