Rolling coverage of the latest economic and financial news
Good morning, and welcome to our rolling coverage of business, the financial markets, and the world econony.
UK trade to the Middle East has shrunk since the Iran war began eight weeks ago, new data shows.
“Our documentation data shows a clear and immediate shock to UK trade flows linked directly to disruption across the Middle East. The fact that exports tied to Arab markets are falling far faster than elsewhere tells us this is a targeted, region‑specific impact, not a broad‑based downturn.
“Firms are reporting increased delays, rerouting via longer and more expensive pathways, enduring rising insurance premiums and facing stretched lead times. For SMEs in particular, this squeezes cashflow and confidence at a time when exporting is already challenging.
“Business’ expectations for activity have weakened further, as companies continue to grapple with uneven trading conditions, strong cost pressures and renewed uncertainty.
“These challenges have been exacerbated by the conflict in the Middle East, which is increasingly hitting a broad swathe of UK businesses. Our surveys suggest that the additional pressure on costs and supply chains is feeding through to pricing intentions – but not nearly enough to offset the burden facing firms.
10am BST: Eurozone economic sentiment data
2.45pm BST: Bank of Canada interest rate decision
7pm BST: US Federal Reserve intereat rate decisoin
7.30pm BST: Federal Reserve press conference
Continue reading…Rolling coverage of the latest economic and financial newsGood morning, and welcome to our rolling coverage of business, the financial markets, and the world econony.UK trade to the Middle East has shrunk since the Iran war began eight weeks ago, new data shows.“Our documentation data shows a clear and immediate shock to UK trade flows linked directly to disruption across the Middle East. The fact that exports tied to Arab markets are falling far faster than elsewhere tells us this is a targeted, region‑specific impact, not a broad‑based downturn.“Firms are reporting increased delays, rerouting via longer and more expensive pathways, enduring rising insurance premiums and facing stretched lead times. For SMEs in particular, this squeezes cashflow and confidence at a time when exporting is already challenging.“Business’ expectations for activity have weakened further, as companies continue to grapple with uneven trading conditions, strong cost pressures and renewed uncertainty.“These challenges have been exacerbated by the conflict in the Middle East, which is increasingly hitting a broad swathe of UK businesses. Our surveys suggest that the additional pressure on costs and supply chains is feeding through to pricing intentions – but not nearly enough to offset the burden facing firms.10am BST: Eurozone economic sentiment data2.45pm BST: Bank of Canada interest rate decision7pm BST: US Federal Reserve intereat rate decisoin7.30pm BST: Federal Reserve press conference Continue reading…
