Bank of England Warns of Potential Stock Market Drop Amid Global Risks
Stock markets set to fall, Bank of England deputy governor warns; Trump threatens UK with ‘big tariff’ over digital services tax – business live
The Guardian
Image: The Guardian
Bank of England Deputy Governor Sarah Breeden warns that stock markets are at risk of falling due to global economic uncertainties. Meanwhile, former US President Donald Trump threatens the UK with tariffs over its digital services tax, raising concerns of a potential trade war.
- 01Bank of England Deputy Governor Sarah Breeden predicts a potential stock market drop due to global risks.
- 02Retail sales in Great Britain increased by 0.7% in March, driven by rising fuel prices amid the Middle East conflict.
- 03Trump threatens to impose tariffs on the UK if it does not eliminate its digital services tax on US tech firms.
- 04The digital services tax, introduced in 2020, imposes a 2% levy on revenues of major US tech companies.
- 05The US has paused investments in British tech as a protest against the digital services tax.
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Bank of England Deputy Governor Sarah Breeden has warned that stock markets are currently inflated and may face a downturn due to various risks affecting the global economy. She emphasized the importance of ensuring the UK financial system is resilient enough to handle potential market corrections. Retail sales in Great Britain rose by 0.7% in March, attributed to increased fuel prices as tensions in the Middle East escalated. This increase contrasts with a drop in fuel duty collected, which was the lowest since July 2023. Meanwhile, former US President Donald Trump has threatened to impose tariffs on the UK if it does not repeal its 2% digital services tax on US tech companies, potentially igniting a new trade conflict. Trump's administration previously halted significant investments in British tech as a response to the tax, highlighting ongoing tensions in UK-US trade relations.
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If stock markets adjust downwards, it could affect investments and consumer confidence in the UK, leading to potential job losses and reduced spending.
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