Tariffs land, oil retreats, and tech investors count the cost of AI

Tariffs arrive, oil steps back

The United States imposed a fresh round of tariffs on more than 80 countries, framed by the administration as a response to forced-labour practices in imported goods. Sky News counted 60 trade partners caught by the measures, the UK among them, while the Guardian and BBC put the wider tally above 80. Trade partners pushed back on the justification, with several rejecting the forced-labour reasoning outright, and DW reported that governments were left puzzled over how the charge had been applied.

Britain's exposure was mixed. The BBC reported that a levy on Scotch whisky was lifted even as the broader tariff wave landed, a rare piece of relief inside a punitive package. Separately, Donald Trump threatened the European Union with substantial tariffs over the fines its regulators have levied on US technology giants.

Markets took the news calmly. This is Money reported that the FTSE 100 shrugged off both the fresh tariffs and higher oil, even as Brent touched $100 a barrel. By later in the session the pressure had reversed: City A.M. recorded stocks jumping as oil dropped back below $100. The Wall Street Journal tied the retreat in crude to easing pressure on Treasury yields, with Japanese government bonds edging lower in sympathy.

For those tracking the government's borrowing costs, City A.M. ran a primer on appeasing the bond market, and why a new chancellor would care.

AI spending unsettles the tech giants

The heaviest single move came from the technology sector. The BBC reported that shares in Google and Tesla plunged as the scale of spending on artificial intelligence rattled investors, and the Wall Street Journal recorded spending worries weighing on tech shares more broadly.

The concern is not demand but cost. The question hanging over the sector is how much capital is being committed to AI infrastructure, and how quickly it might pay back.

Elsewhere in the WSJ's coverage, the paper posed a more direct question for policymakers: is the Federal Reserve about to hike rates. The framing marks a shift from the cutting cycle that markets had grown used to.

Away from the American names, there were signs of appetite for new listings and strong earnings in Asia. The South China Morning Post reported that Chinese battery maker CATL posted record quarterly profits on the green-energy boom, that Wall Street funds were backing WuXi AppTec as weight-loss drug orders climbed, and that a Chinese GPU maker had confidentially filed for a Hong Kong flotation amid a wave of fundraising.

UK firms weigh rates, bills and a rejected licence

At home, the argument over business rates ran through the day. The BBC reported that Andy Burnham called a 20% cut for English pubs a first step, but the relief drew complaints from those left out. The Guardian spoke to cafe owners frustrated at their exclusion, City A.M. reported Hilton and Butlins fuming at the same snub, and a separate City A.M. piece argued that rates are dwarfed by other costs, so a cut alone will not save the pub trade.

Borrowing costs moved the wrong way for households. The BBC reported that UK mortgage rates rose to their highest level for a month.

The Bank of England's own findings sketched a tighter labour market. This is Money reported that older workers are increasingly forced to compete with new starters for junior roles as the supply of good jobs dries up.

There was a setback for one of London's recent departures. This is Money and the Wall Street Journal both reported that Wise was denied a US banking licence on the grounds of shortcomings, only months after the payments firm moved its primary listing to New York, and its shares fell on the news. On AIM, This is Money's small-cap round-up noted Scancell heading to Nasdaq while the junior market's headcount slipped to 612 companies.

Two large media deals also drew attention. The Guardian reported that Paramount agreed to pause its $110bn merger with Warner Bros as a legal case plays out, while City A.M. reported that Sky and ITV mounted a defence of their £1.6bn tie-up as regulators examine it. In Germany, the Guardian reported that mass job cuts loom at Volkswagen as profits fell steeply on a slump in Chinese sales.