The Bank of England has been accused of putting caution before growth as it held interest rates at 5.25pc.
The Monetary Policy Committee (MPC) left borrowing costs unchanged for a fifth consecutive meeting but for the first time since September 2021, no-one voted for an increase in rates. One member voted for a cut in an 8-1 split.
Money markets have priced in three quarter of a percentage point reductions in borrowing costs by the end of the year as Governor Andrew Bailey said “things are moving in the right direction”.
Traders put the chances of a first rate cut in June at about 80pc.
However, economists said policymakers were being “overly cautious” after inflation fell sharply to 3.4pc last month – with many forecasting it will drop to 2pc in April.
Julian Jessop of the Institute of Economic Affairs think tank, said the decision was “disappointing” but welcomed hints that cuts are “coming soon”.
Mr Jessop said: “The big picture is still that monetary policy is too tight and the Bank has been too slow to cut rates. Nonetheless, the shift in tone today is important.”
Suren Thiru, economics director at ICAEW, said: “The Bank of England remains overly cautious on the prospect of rate cuts given the startling inflation slowdown and an economy in recession, increasing the risk they prolong our economic struggles by keeping policy too tight for too long.”
Neil Shah, director at investment researcher Edison Group, said the Bank of England has prioritised “inflation management over immediate economic stimulus”.
He added: “It appears that, in the delicate balancing act between supporting recovery and curbing inflation, the Bank is choosing caution, potentially at the expense of growth opportunities.”
Read the latest updates below.
Thanks for joining us today. We’ll be back in the morning but here’s Ben Marlow on Unilever’s plan to sell-off its ice-cream division:
Read the full column…
The competition watchdog has cleared plans by the publishers of The Sun and the Daily Mail to combine their printing operations.
Rupert Murdoch’s News UK and Lord Rothermere’s DMG Media announced plans last October to combine their printing operations amid declining print sales.
But the Competition and Markets Authority launched an investigation into the deal last month.
It said on Thursday that after an initial review, it had decided not to refer the deal for a further in-depth investigation.
The new business is expected to start operations in June.
The deal will result in the closure of DMG Media’s sites in Thurrock, Essex, and Dinnington, Sheffield.
The group will retain three current Newsprinters sites owned by News UK in Broxbourne, Hertfordshire; Knowsley, Merseyside; and Glasgow.
European competition regulators are expected to launch investigations into Apple, Meta Platforms and Alphabet’s Google, using newly introduced powers under the Digital Markets Act, reports say.
The European Commission is expected to announce the investigations in the coming days, with decisions made before EU competition chief Margrethe Vestager’s term ends in November, Reuters said.
Apple and Google’s fees and terms for app store developers are to be scrutinised, sources told Bloomberg.
The Commission declined to comment. Apple, Google and Meta were approached for comment.
The FTSE 100 closed up 1.88pc. The biggest riser was 3i, up 8.70pc, followed by Next, up 6.67pc. The biggest faller was Hikma Pharmaceuticals, down 4.82pc, followed by British American Tobacco, down 1.36pc.
Meanwhile, the FTSE 250 rose 1.32pc. The biggest riser was mining company Hochschild, up 8.06pc, followed by magazine publisher Future, up 5.78pc. The biggest faller was industrial group Dowlais, down 9.72pc, followed by insurance firm Lancashire Holdings, down 4.76pc.
International share indexes rallied further today after the Swiss National Bank became the first major central bank cut rates this morning. The Bank of England meanwhile said that “things are moving in the right direction”.
Yesterday, the US Federal Reserve recommited to its outlook for 2024 rate cuts.
The S&P 500 is up 0.6pc, the Dow Jones Industrial Average is up 0.8pc, and the Nasdaq Composite is up 0.8pc. In Europe, Germany’s DAX index is up 0.8pc, while France’s CAC 40 is up 0.2pc.
UBS boss Sergio Ermotti said today that governments and regulators should not expect banks to act as the “climate police” in remarks that also cut against the demands of activists who say banks should vow never lend to fossil fuel industries.
Bloomberg reported that he told a meeting of Swiss bankers that financial services “is an attractive target for policymakers” who wish to “divert at least some of the blame of unpopular decisions to banks”.
He said:
Waitrose has revealed plans to shut a delivery warehouse in north London later this year, putting 545 jobs at risk.
The supermarket chain has launched a consultation process over potentially shutting the site in Enfield, which only opened in 2020.
The Enfield Customer Fulfilment Centre is a warehouse used to pick and deliver online orders for customers in some parts of North London, which was launched amid a boom in online grocery demand at the outset of the Covid-19 pandemic.
A Waitrose spokesman said:
The planned job cuts are part of cost-cutting efforts at parent group John Lewis Partnership.
Last week, Sharon White, chairman of the partnership, told reporters that there is “no target” for job cuts but indicated that some roles will be impacted by its turnaround strategy.
Direct Line has set aside £150m to repay customers who were overcharged when renewing their policies or underpaid when claiming money back for written-off vehicles. Adam Mawardi reports:
Three has suffered its first loss in 13 years as the mobile network warned that its £15bn merger with Vodafone was the only way to safeguard continued investment. James Warrington reports:
Andrew Bailey, the Governor of the Bank of England, has said that inflation does not have to come down all the way to the UK target of 2pc before the Bank will cut rates.
He told broadcasters:
Asked about markets pricing in two or three interest rate cuts this year, he said:
The Governor of the Bank of England has said “we’re on the way” towards cutting interest rates as inflation comes down to sustainable levels.
He told broadcasters:
Here is a video the Governor released on X, formerly known as Twitter. I’m off now, but Alex Singleton will keep you up to speed from here.
The US has filed a landmark lawsuit against Apple accusing the tech giant of engineering an illegal monopoly in smartphones that blocks competitors and stifles innovation.
The Justice Department alleges that Apple has dominant power in the smartphone market and uses its control over the iPhone to “engage in a broad, sustained, and illegal course of conduct.”
The lawsuit, filed in federal court in New Jersey and with 16 state attorneys general, is the first major competition action against the smartphone maker by the Biden administration.
Apple called the lawsuit “wrong on the facts and the law” and said it “will vigorously defend against it.”
President Joe Biden has called for the Justice Department and the Federal Trade Commission to vigorously enforce competition laws.
Apple shares have fallen 3.5pc today, wiping $86.8bn (£68.4bn) off the value of the world’s second largest company.
The boss of Ryanair compared France’s finance minister to Donald Trump after he gave a “silly and ill-advised” criticism of plane maker Boeing.
Michael O’Leary branded Bruno Le Maire a “stupid politician” after he said he hesitates to travel on Boeing aircraft because he values his life.
Mr Le Maire drew laughter and applause from a conference audience this week when he said he preferred “the situation of Airbus to Boeing’s” following the midair blowout on an Alaska Airlines flight.
He told the Europe 2024 conference in Berlin: “I now prefer flying in Airbus over Boeing — my family too, they care about me.”
Mr O’Leary told Politico that Mr Le Maire’s words were “silly and ill-judged” but “we live in a world where we encourage free speech and Donald Trump is talking rubbish. So is Bruno Le Maire.”
He said that his message to “some stupid politician going: ‘My family don’t feel safe on a [Boeing] 737,’ I say: ‘Well, then try flying on an Airbus with a problem with the engine that hasn’t been repaired.'”
BAE Systems has won a multi-billion pound contract to build Australia’s next-generation nuclear-powered submarines in a major boost for British industry and jobs.
Wall Street stocks have extended their rally after the Federal Reserve indicated it aims to cut interest rates three times this year.
Major indices added to records set Wednesday after the Fed issued its guidance as it held interest rates at two decade highs of 5.25pc to 5.5pc.
The Dow Jones Industrial Average stood at 39,754.46, up 0.6 percent, while the broad-based S&P 500 gained 0.6pc to 5,258.04.
The tech-rich Nasdaq Composite Index rose 1pc to 16,527.13.
Micron surged more than 15pc after reporting earnings that exceeded company projections and touting its future prospects.
The company’s chief executive Sanjay Mehrotra said.”We believe Micron is one of the biggest beneficiaries in the semiconductor industry of the multi-year opportunity enabled by AI.”
Social media company Reddit is poised to make its trading debut on the New York Stock Exchange later after pricing at the high end of its range in an initial public offering.
The Bank of England risks putting caution ahead of growth opportunities after keeping interest rates at their 16-year highs, according to analysts.
Neil Shah, director at Edison Group, said the decision to keep rates at 5.25pc was “expected but nonetheless disappointing”. He said:
The Bank of England “effectively signed off the Spring Budget” after saying it would have a minimal impact on inflation, economists have said.
In the minutes of the MPC meeting, the Bank of England said Jeremy Hunt’s fiscal announcements earlier this month would add about a quarter of a percentage point to GDP “over the coming years”.
It added: “As the measures will probably also boost potential supply to some extent, the implications for the output gap, and hence inflationary pressures in the economy, are likely to be smaller.”
Thomas Pugh, economist at RSM UK, said: “The committee effectively signed off the Spring Budget by saying it would have a minimal impact on inflation since the measures boosted supply and demand.”
Looking ahead, he added:
Suren Thiru, economics director at ICAEW, accused the Bank of England of being “overly cautious” in the face of falling inflation. He said:
Some commentators agree:
Policymakers appear more open minded about the prospect of interest rate cuts, economists have said.
The minutes from the latest meeting of the Monetary Policy Committee said members would “consider the degree of restrictiveness of policy at each meeting”.
The minutes said there “was a range of views… on the extent to which the risks from persistent inflationary pressures had receded”.
The document went on:
Simon French, chief economist at Panmure Gordon, said he considered this section a “key passage” about the committee’s intentions:
Analysts are lining up to declare that interest rates will be cut over the summer after the Bank of England held interest rates at 5.25pc – but some signalled policymakers will remain cautious amid high services inflation.
Rob Clarry, investment strategist at Evelyn Partners said today’s change in voting patterns on the MPC “signals that we are getting closer to a first interest rate cut”.
He added: “We continue to expect this will materialise around the middle of the year as inflation decelerates to the 2pc.”
Andrew Jones of Janus Henderson Investors said: “As it seems very likely that inflation will continue to move downwards over the next few months, we would still expect to see interest rate cuts in the middle of the year.”
Vivek Paul, UK chief investment strategist at BlackRock Investment Institute, signalled caution. He said:
Money markets are putting the chance of a first interest rate cut by the Bank of England in June at more than 50pc.
It comes after no members of its Monetary Policy Committee voted for an increase in interest rates.
The FTSE 100 has surged after the Bank of England pivoted towards interest rate cuts as it held borrowing costs at 5.25pc.
Britain’s flagship stock market jumped 1.5pc after the latest decision by the Monetary Policy Committee (MPC) to leave borrowing costs unchanged for a fifth consecutive meeting.
For the first time since September 2021, no-one on the nine-member committee voted for an increase in borrowing costs. One member voted for a cut in an 8-1 split.
Meanwhile, the Governor Andrew Bailey signalled cuts could be on the way as he said “things are moving in the right direction”.
The pound dropped as much as 0.4pc against the dollar and UK bonds rallied as traders pounced on the signal that the MPC is shifting towards rate cuts.
Money markets have priced in three quarter of a percentage point reductions in borrowing costs by the end of the year and put the chances of a first rate cut in June at about 80pc.
The Bank of England maintained borrowing costs at 16-year highs despite inflation falling last month to 3.4pc following its steepest drop since 1978.
Some economists think inflation will have fallen to the Bank of England’s 2pc target by April.
In its statement alongside its decision to hold interest rates steady, the Bank of England said:
Bank of England governor Andrew Bailey said:
The pound fell a little further after the Bank of England held interest rates steady.
Sterling was last down 0.4pc against the dollar at $1.27 and down 0.3pc against the euro at 85p.
For the first time since September 2021, no member of the Bank of England’s Monetary Policy Committee voted for a rate rise.
Jonathan Haskel and Catherine Mann both voted for holds, having been the last members to keep pushing for a rate rise to 5.5pc.
Swati Dhingra voted for a cut, leaving the MPC in a three-way split for the first time since the global financial crisis in 2008.
The Bank of England has kept interest rates steady at 5.25pc for a fifth time in a row as it battles to bring down inflation.
Policymakers maintained borrowing costs at 16-year highs despite inflation falling last month to 3.4pc following its steepest drop since 1978.
Some economists think inflation will have fallen to the Bank of England’s 2pc target by April.
The US Federal Reserve also kept interest rates unchanged at two-decade highs on Wednesday but triggered a surge in stock markets after reaffirming its aim to cut borrowing costs three times this year.
Earlier today the Swiss National Bank shocked markets after announcing a surprise interest rate cut to 1.5pc – becoming the first major central bank to cut rates since the pandemic.
Not long now… a quick reminder of where we are:
The Bank of England is expected to announce it will hold interest rates steady at 5.25pc for a fifth time in a row.
Policymakers will announce at noon the result of their meeting, at which they are likely to maintain borrowing costs at 16-year highs as they battle to bring down inflation.
However, the Bank is coming under growing scrutiny over its stance after the consumer prices index – which measures the rate that prices are rising – fell at its sharpest pace since 1978 last month to 3.4pc.
Some economists think inflation will have fallen to the Bank of England’s 2pc target by April.
The pound has slipped ahead of the Bank of England’s interest rate announcement, which is due at noon.
Sterling has dropped 0.3pc against the dollar to $1.27 and has fallen 0.2pc against the euro to 85p.
The Monetary Policy Committee (MPC) at the Bank of England, which decides interest rates, was divided the last time it met.
Two MPC members, Jonathan Haskel and Catherine Mann, continued to vote for rates to rise to 5.5pc, while Swati Dhingra voted for a cut, leaving the MPC in a three-way split for the first time since the global financial crisis in 2008.
Economists are divided on whether that will be the case this time
While the UK, US and eurozone are focused on when the first interest rate cuts will take place, Turkey is at an altogether different stage in its fight against inflation.
Its central bank has ramped up interest rates by five full percentage points from 45pc to 50pc in a surprise move ahead of local elections.
It comes as inflation in the country is on track to exceed 70pc.
The head of the International Monetary Fund (IMF) has warned that central banks around the world face growing political pressure to cut interest rates but policymakers need to maintain their independence.
IMF managing director Kristalina Georgieva said that central banks with stronger independence scores are more successful in controlling inflation and keeping inflation expectations in check.
Her warnings come ahead of a likely general election in Britain this year, as well as the US presidential elections and several others in major economies.
In a blog on the IMF website, she said:
She said that central bankers’ success in preventing a global financial meltdown during the pandemic was quickly followed by monetary tightening to bring down inflation. Both efforts were a function of their independence and the credibility that goes along with that.
By contrast, Georgieva said that during the high inflation period of the 1970s, central banks did not have clear mandates to prioritise price stability, nor clear laws protecting their autonomy, and as a result, they were often pressured by politicians to cut interest rates.
UK bonds rallied after the private sector grew for a fifth month in a row in a sign that Britain is pulling out of its recession.
The yield on 10-year gilts – which moves inversely to its price – has fallen more than four basis points to 3.97pc.
It comes after PMI data showed more solid growth in Britain’s services sector, while the debt market was also boosted by the US Federal Reserve’s forecast that it will cut interest rates three times this year.
Ben & Jerry’s has vowed to continue with its controversial social activism under new ownership, as parent company Unilever prepares to spin off the ice cream business.
Our employment editor Lucy Burton has the details:
Read how the vow to continue activism is likely to pose a headache to Unilever.
Money markets think the Bank of England will keep interest rates on hold today for a fifth consecutive meeting but the timing of its first reduction in borrowing costs has become the subject of debate.
Traders have fully priced in a quarter of a percentage point rate reduction from 5.25pc to 5pc by August.
However, the possibility of a June cut has been brought into play after the sharp decline of inflation to 3.4pc last month and the Fed’s forecast that it will reduce rates three times this year.
Traders think there is a roughly 60pc chance of a quarter of a percentage point drop in UK interest rates in June.
Henk Potts, market strategist at Barclays Private Bank, said:
The FTSE 100 has led a rally in European stock today following indications from the Federal Reserve that it expects to deliver three interest rate cuts later this year.
France’s CAC 40 rose as much as 0.8pc, while Germany’s DAX gained as much as 0.9pc to 18,159.77.
The FTSE 100 was last up 0.9pc having gained as much as 1.3pc.
US shares are expected to drift higher when markets open later, having hit record highs on Wednesday.
Japan’s benchmark Nikkei 225 jumped 2pcto finish at a record high 40,815.66 after the government reported exports grew nearly 8pc in February from a year earlier, in the third straight month of increase.
Britain’s private sector expanded for a fifth month in a row in a further sign that the economy is moving out of recession, according to a key survey.
The S&P Global Flash UK PMI registered 52.9 in March, down fractionally from 53 in February but above the crucial 50 mark which separates contraction from growth.
Service sector growth was quicker than that seen in the manufacturing sector. However, it lost some momentum in March, coming in at a three-month low of 53.4.
The sector is a key focus for policymakers at the Bank of England, who fear it could keep inflation persistent. Services inflation remained strong at 6.1pc in February, according to the Office for National Statistics.
Meanwhile, manufacturing production increased for the first time since February last year, albeit only fractionally. Chris Williamson, chief business economist at S&P Global said:
Private sector companies in the eurozone recorded a tenth consecutive month of decline as manufacturing struggled, particularly in Germany, according to a closely-watched survey.
The S&P Global flash eurozone PMI, which measures the output of businesses, improved from 49.2 in February to 49.9 in March. The figure still indicates a contraction but was a whisker away from the 50 mark which would have indicated growth.
New orders fell at the slowest rate for ten months and backlogs of work were depleted at the weakest rate for nine
months. Meanwhile, order books fell at a reduced rate and business confidence about the year ahead improved to a 13-month high.
However, manufacturing output fell across the eurozone for a twelfth successive month in March
Dr. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said:
Interest rates have remained unchanged in Norway, as expected, but policymakers said borrowing costs could be reduced “earlier than envisaged”.
Norges Bank left its benchmark rate at 4.5pc but said it thinks it will be “gradually moving down” by the autumn.
The Norwegian krone gained 0.3pc against the euro following the decision.
The Swiss National Bank has announced a surprise interest rate cut in a sign the global economy is turning a corner.
In a decision which wrongfooted markets, the central bank reduced borrowing costs by a quarter of a percentage point to 1.5pc.
It is the first reduction for one of the G10 group of the world’s most traded currencies since the end of the pandemic.
The Swiss franc tumbled 1.1pc against the pound and as much as 1.2pc against the dollar.
UK stock markets opened higher as investors welcomed the Federal Reserve sticking to its outlook that it will cut interest rates three times this year.
The internationally-focused FTSE 100 was up 1.3pc to its highest since May. The domestically-oriented FTSE 250 was up 1.1pc.
The Fed kept borrowing costs unchanged on Wednesday and projected as many as three interest rate cuts this year, soothing investors’ nerves about high interest rates and sending US stocks to close higher.
Interest rate-sensitive real estate investment trusts and precious metal miners were among the biggest gainers this morning, up 1.6pc and 3.3pc respectively.
The Bank of England will announce its next interest rate decision at noon.
Among stocks, M&G added 3.5pc after the British insurer and asset manager reported profit ahead of analyst forecasts for 2023.
Next surged to the top of the FTSE 100 as its shares hit an all-time high as it gave an optimistic outlook for the year ahead and reported record profits.
Next shares have surged to a record high as the retailer predicted profits would hit £960m this year.
The high street giant’s share price rose 5.2pc to 8,950p, valuing the company at £11.3bn.
Charlie Huggins of Wealth Club said Next had revealed “another excellent set of results” as profits increased by 5pc to a record £918m.
He said: “Shrewd acquisitions and investments have improved its growth prospects, while moderating inflation has significantly reduced pressure on costs. And while the UK economy isn’t out of the woods, the economic tea leaves don’t read as grimly as at this stage last year.”
Adam Vettese, analyst at investment platform eToro, said:
The pound has steadied against the dollar ahead of the Bank of England’s meeting where it is expected to keep interest rates on hold.
Sterling was last unchanged on the day at $1.2788. It has risen 1.3pc so far this month and is heading for its largest monthly gain against the dollar since November.
The euro was trading flat against the pound at 85.47 pence, having lost 0.2pc so far this month.
This week has brought a raft of central bank decisions.
On Tuesday the Bank of Japan ditched negative interest rates and raised rates for the first time in 17 years, while on Wednesday the Federal Reserve maintained its view that US interest rates would likely be subject to three cuts this year.
The Swiss National Bank and the Norges Bank both deliver decisions today as well.
The FTSE 100 jumped higher as trading began after the US Federal Reserve announced it still expects to make three interest rate cuts this year.
The UK’s flagship stock index rose 1pc to 7,812.88 while the midcap FTSE 250 surged 1.2pc to 19,723.45.
The FTSE 100 hit its highest points since May last year following the latest policy meeting by the US Federal Reserve.
Although it held its interest rates at 22-year highs of 5.25pc to 5.5pc, it reaffirmed that it expects to cut borrowing costs three times this year.
Investors had been concerned the Fed might reduce its outlook to two rate cuts after a series of higher-than-expected inflation figures in America.
The Bank of England will announce its next decision on interest rates at noon today, where policymakers are expected to keep borrowing costs at 16-year highs for a fifth consecutive meeting.
Interest rates have been held at 5.25pc since August last year.
Next has revealed its highest ever levels of revenue and profit as predicted earnings will be close to £1bn this year.
The high street bellwether’s pre-tax profits grew 5pc to hit a record high of £918m in the year to the end of January, which was £3m higher than its previous guidance.
Sales increased 5.9pc to £5.8bn.
Chief executive Lord Wolfson said: “It has been a long time since we started a year in a more positive frame of mind.”
He added: On the face of it, the consumer environment looks more benign than it has for a number of years, albeit there are some significant uncertainties.”
It comes after a period of acquisitions at the retailer, buying brands including FatFace, Joules, Cath Kidston, and Made.com. The company also has control over UK fashion house Reiss.
Gora Suri, economist at PwC UK, said the latest borrowing figures show the Chancellor remains on track to meet his fiscal rule of getting debt falling as a percentage of GDP within five years.
He said:
In corporate news, Nationwide Building Society is poised to take over smaller rival Virgin Money after the pair agreed a deal worth around £2.9bn.
Nationwide has made a 220p-a-share firm offer for Virgin Money, including a planned 2p-per-share dividend payout, which will now be voted on by Virgin Money’s shareholders.
Confirmation of the deal comes after the two companies reached a preliminary agreement earlier this month, with Nationwide having spent the past two weeks looking through Virgin Money’s books before making the firm offer.
Nationwide said: “Nationwide’s board agreed that a binding offer to acquire Virgin Money was in the best interests of the society and its present and future members, following full consideration and the appropriate due diligence, and after taking comments from members into account.”
The planned takeover will bring together Britain’s fifth and sixth largest retail lenders, creating a combined group with around 24.5m customers, more than 25,000 staff and nearly 700 branches.
But the move will spell the end of the Virgin Money brand, with Nationwide planning to rebrand the Virgin Money business as Nationwide within six years, although it will keep the two brands initially.
The disappointing borrowing figures mean the Treasury is likely to exceed official forecasts for total expenditure this year set by the Office for Budget Responsibility, according to economists.
February’s public sector net borrowing, excluding banking groups, hit £8.4bn last month, which was above forecasts of £6bn.
Total tax receipts were £7.2bn higher than in February last year but total expenditure of £89.6bn came in £2.9bn higher than a year ago.
With only one month of this fiscal year still to go, cumulative borrowing hit £106.8bn.
Ruth Gregory, deputy chief UK economist at Capital Economics, said:
The chart shows how public sector net debt has risen to its highest levels in six decades following the global financial crisis and the pandemic:
Chief Secretary to the Treasury Laura Trott said:
The national debt has swelled by another £157.4bn compared to the same month last year to £2.7 trillion, which is equivalent to about 97.1pc of GDP.
As public borrowing came in higher than expected, senior ONS statistician Jessica Barnaby said:
The Government borrowed more than expected in February in a blow to the Chancellor as he tries to keep the public finances in order.
Public sector borrowing, excluding banks, hit £8.4bn last month, according to the Office for National Statistics (ONS), which was more than analyst predictions of £6bn.
However, it was still £3.4bn less than in February last year as more than a million self-employed workers were late to file their tax returns.
The Treasury has borrowed £106.8bn so far this financial year, which was £4.6bn less than in the same eleven-month period a year ago, and the lowest for four years in nominal terms.
Income tax, corporation tax and VAT receipts all increased as a result of threshold freezes, a higher rate and inflation respectively.
The national debt has swelled by another £157.4bn compared to the same month last year to £2.7 trillion, which is equivalent to about 97.1pc of GDP.
Senior ONS statistician Jessica Barnaby said: “Relative to the size of our economy, debt remains at levels last seen in the early 1960s.”
Thanks for joining me. The Treasury borrowed more than expected in February in a blow to Chancellor Jeremy Hunt.
Public sector borrowing, excluding banks, hit £8.4bn last month, according to the Office for National Statistics, which was more than analyst predictions of £6bn.
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Asian benchmarks were mostly higher after US stocks rallied to records following the Federal Reserve’s indication that it expects to deliver interest rate cuts later this year.
Japan’s benchmark Nikkei 225 jumped 2pc, or 812.06 points, to close at 40,815.66, while the broader Topix index climbed 1.6pc, or 45.24 points, to 2,796.21.
It also also boosted after Japan’s government reported exports grew nearly 8pc in February from a year earlier, in the third straight month of increase.
Shipments of cars and electrical machinery increase, helping to trim the trade deficit to about half of what it was a year earlier.
Hong Kong’s benchmark jumped 1.8pc to 16,836.46 while the Shanghai Composite lost 0.2pc, to 3,073.37, after the Chinese government announced fresh measures to support the economy.
Sydney’s S&P/ASX 200 added 0.5pc to 7,735.40. South Korea’s Kospi jumped 1.5pc to 2,729.64.
US stocks rallied to records on Wednesday after the Federal Reserve said it still expects to cut interest rates three times this year.
The S&P 500 jumped 0.9pc, to 5,224.62, and set an all-time high for a second straight day. It’s already run up 9.5pc so far this year.
The Dow Jones Industrial Average jumped 1pc, to 39,512.13, and the Nasdaq Composite index roared 1.3pc higher, to 16,369.41. Both also hit records.