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Today’s agenda: Meta’s ‘monopoly power’; British Steel crisis; Israel’s new security plan; how Wall Street got Trump wrong; and what to do if you’re fired by AI?
Good morning. We start today with news about the freezing of the junk bond market across Wall Street that threatens a tentative rebound in dealmaking. Here’s what we know.
Chilling effect: Lowly-rated companies have failed to sell any debt in the $1.4tn US high-yield bond market since Donald Trump unleashed market turmoil and raised fears of a US recession with the wave of tariffs he announced earlier this month. “Everything has been on hold,” said Bob Kricheff, the head of multi-asset credit at investment firm Shenkman Capital Management. “Nobody is trying to price a deal in this environment.”
Wall Street’s response: Banks have been redrawing the terms of loans they offer buyout clients to finance acquisitions and increasing interest rates in a bid to shield themselves from losses. Some, including Citigroup, Morgan Stanley and JPMorgan Chase, had pulled the plug on bond and loan funding deals that high-yield investors had so far been unwilling to back in traditional debt markets, said people briefed on the matter. Read the full story.
Follow the latest on tariffs and executive orders in our Trump tracker and read more analysis on how the chaos is having an impact on other industries.
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Diamond market: Traders are warning that the $82bn sector has “ground to a halt” because of Trump’s tariffs and the global trade war.
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Plane manufacturers: Ryanair boss Michael O’Leary has warned the Irish airline could delay deliveries of Boeing aircraft if they become more expensive due to levies.
Join our live Q&A tomorrow about the changing trade, economic and geopolitical relationship between the US and its allies. Pose your questions to FT journalists here. Here’s what else we’re keeping tabs on today:
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Economic data: The UK issues labour market figures and the International Energy Agency publishes its monthly oil market report.
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EU climate: The European State of the Climate 2024 report is expected to confirm that last year was the continent’s warmest on record.
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Results: Bank of America, Citigroup, Johnson & Johnson and Publicis are among those reporting. See our Week Ahead newsletter for the full list.
Five more top stories
1. Brussels is exploring legal options that would allow European companies to break long-term Russian gas contracts without paying hefty penalties to Moscow. The move, part of a road map on how the bloc will rid itself of Russian fossil fuels by 2027, highlights the EU’s struggle to deprive the Kremlin of revenues for its war in Ukraine.
2. Exclusive: A top US official has warned European allies that they needed to choose between US and Chinese technology, as governments and companies in Europe consider whether Starlink — owned by Elon Musk’s SpaceX — is a reliable partner after Washington threatened to switch off its services in Ukraine. Read the full report.
3. Some 71 per cent of UK consumers say they wanted to support domestic businesses by buying more items that were “Made in Britain”, according to a survey carried out on behalf of Barclays by Opinium Research. Here’s the rest of the data that underlines the impact of the US president’s trade war on the UK.
4. UK intelligence agencies should examine Chinese investment in Britain’s nuclear, telecoms and transport sectors, senior parliamentarians have urged, after concerns about the conduct of British Steel’s Chinese owner Jingye. Dame Emily Thornberry, Labour chair of the Commons foreign affairs committee, said: “We ought to have the principle that it’s ‘security first’.”
5. Meta’s acquisitions of Instagram and WhatsApp helped give it “monopoly power”, the US Federal Trade Commission told a court yesterday at the start of a blockbuster trial that could force the $1.5tn tech giant’s break-up. The case is expected to give the clearest signal yet about the Trump administration’s stance on antitrust policy — and its appetite to take on Big Tech.
News in-depth
No longer content with border walls and early warning systems, Israel is seizing territory from its neighbours, building buffer zones and bombing perceived threats as far as Beirut and Damascus in massive displays of force. Here’s a look inside the country’s aggressive new security plan born out of the trauma and lessons of October 7.
We’re also reading . . .
Chart of the day
Trump’s April 2 tariffs announcement proved to be a critical juncture for Wall Street, after the S&P 500 lost more than $5tn in value over just two days. Investors are warning that the US president’s readiness to rattle the markets has sown distrust and that the models guiding business can no longer predict what comes next.
Take a break from the news
Just off Kentish Town Road in north London, Mario’s is a neighbourhood staple for locals dropping in for a drink, dining on the delectable yet inexpensive breakfast and lunch options or simply looking for a chat. FT Globetrotter explores what makes this cosy space, hosting just eight small tables, a much-loved ‘caff’.
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