U.S. Treasury yields pushed higher and the dollar regained lost ground
International News via Reuters:
Major global stock indexes were mixed on Tuesday as oil prices extended recent sharp gains and worries persisted over how long the Israeli-U.S. war on Iran will go on.
U.S. Treasury yields pushed higher and the dollar regained lost ground.
Stocks had rallied on Monday after U.S. President Donald Trump said he had ordered the military to postpone strikes against Iranian power plants following “productive conversations” with Tehran. Iran has denied talks with the United States.
Oil prices rose on Tuesday. U.S. crude gained 3.63% to $91.33 a barrel and Brent rose to $98.54. [O/R]
With the war raging and shipments of about one-fifth of the world’s oil and liquefied natural gas through the Strait of Hormuz curtailed, oil prices were expected to stay high.
“Today we’re seeing a little bit more negative sentiment seep back into markets,” said Oliver Pursche, senior vice president and advisor at Wealthspire Advisors. “Investors are mostly focused on oil prices, but to me the bigger risk is commodity-related inflation, in particular related to agriculture … That could have a much more profound, longer-term impact than oil prices.”
Also, he said, “there’s still a lot of confusion and lack of clarity about Iran and how long the military operations will last and what the consequences for oil and global trade are. That’s the key driver.”
Communication services and technology were the day’s biggest percentage decliners in the S&P 500.
The Dow Jones Industrial Average rose 145.83 points, or 0.30%, to 46,348.22, the S&P 500 rose 5.77 points, or 0.09%, to 6,586.74 and the Nasdaq Composite fell 70.12 points, or 0.32%, to 21,877.14.
MSCI’s gauge of stocks across the globe rose 4.46 points, or 0.45%, to 989.37.
The pan-European STOXX 600 index rose 0.54%.
Earlier, euro zone private sector growth nearly stalled this month as inflation expectations surged and delivery times soared, adding to mounting evidence the bloc is already suffering a tangible drag from the U.S. and Israeli war on Iran, data released on Tuesday showed.
The risk of persistent inflation arising from the escalating war with Iran was strong enough to convince Fed Governor Christopher Waller to switch his support to keeping interest rates on hold from cutting them, he said last week, as market expectations for the U.S. central bank’s next move shifted toward a hike in borrowing costs.
The yield on benchmark U.S. 10-year notes rose 3.4 basis points to 4.37%, from 4.34%.
Reporting by Caroline Valetkevitch in New York and Amanda Cooper in London; Additional reporting by Dhara Ranasinghe, in London and Rae Wee in Singapore; Editing by Arun Koyyur and Chris Reese
The first-time meetings with Sundar Pichai, Mark Zuckerberg, and Sam Altman in San Francisco will take place as part of Ribera’s week-long trip to the United States
International News via Reuters:
EU antitrust chief Teresa Ribera, who has voiced concerns about Big Tech extending its dominance into artificial intelligence, will meet the CEOs of Alphabet, Meta Platforms and OpenAI on Tuesday, a European Commission agenda item shows.
The first-time meetings with Sundar Pichai, Mark Zuckerberg, and Sam Altman in San Francisco will take place as part of Ribera’s week-long trip to the United States where she is scheduled to speak at an American Bar Association conference on Friday.
She will also meet Amazon CEO Andy Jassy on Wednesday.
Ribera, who has launched several investigations into Google and Meta’s business practices, this month said she was examining the entire AI stack, including AI chatbots, the data used to train them and the cloud computing infrastructure.
The European Commission, which acts as the EU competition enforcer, has said risks are emerging as dominant companies favour their AI services on their own platforms to exclude rivals.
Technology giants, including OpenAI, Nvidia, Meta and Google have been investing billions on AI infrastructure to cater for booming demand.
Reporting by Foo Yun Chee; editing by Barbara Lewis
The scheme, worth tens of billions of euros, is central to France’s plan to renew its ageing nuclear fleet, and would add about 10 gigawatts of capacity, with the first reactor due to be commissioned in 2038
International News via Reuters:
EDF is set to face an EU investigation into a state aid package for building six nuclear power plants over concerns the support will reinforce the state-owned French utility’s market dominance, people with direct knowledge of the matter told Reuters.
The scheme, worth tens of billions of euros, is central to France’s plan to renew its ageing nuclear fleet, and would add about 10 gigawatts of capacity, with the first reactor due to be commissioned in 2038. A lengthy EU investigation would risk delaying that timeline.
The European Commission – the EU competition enforcer – is expected to open an investigation next month, the people said.
France put in a request late last year for Brussels to approve the state support, which includes a subsidized loan covering at least half of the construction costs of the six nuclear reactors.
The new plants would replace old nuclear plants and secure future energy supplies to cover rising demand over the next decade, driven in part by the energy needs of data centres.
EU regulators want more time to look into the complex undertaking, one of the country’s biggest public projects in years, the people said.
Brussels is concerned that the six new power plants would further entrench state-owned and dominant energy player EDF’s market share. The company already holds more than 75% of France’s net electricity production.
Bolstering EDF’s market share may distort competition and preclude new players from entering the market, one of the sources said, citing the Commission’s concerns.
The Commission, the French Energy Ministry and EDF declined to comment.
The project announced in 2022 is now estimated to cost 72.8 billion euros ($84 billion) in 2020 values.
An in-depth EU investigation would also allow the Commission to build an ironclad case in the event that Austria’s government – which is opposed to nuclear power – launches a legal challenge against the Commission’s approval of the deal, which some EU officials deem likely, one of the people said.
Vienna has previously challenged state aid for nuclear projects in Hungary and former EU member Britain.
($1 = 0.8634 euros)
Reporting by Foo Yun Chee and Kate Abnett, additional reporting by Forrest Crellin and Leigh Thomas in Paris; editing by Andrei Khalip
Bolsonaro, 71, had been in intensive care in a Brasilia hospital since March 13 due to bronchopneumonia, a lung infection that spreads from the airways into the lungs, posing problems such as breathing difficulties
International News via Reuters:
Brazil’s hospitalized former President Jair Bolsonaro has been discharged from the intensive care unit, a medical note showed on Tuesday.
Bolsonaro, 71, had been in intensive care in a Brasilia hospital since March 13 due to bronchopneumonia, a lung infection that spreads from the airways into the lungs, posing problems such as breathing difficulties.
The ex-president has been transferred to a standard room in the hospital, doctors treating him said.
Local news outlets, including G1 and CNN Brasil, had reported the news late on Monday, citing one of his doctors, Brasil Caiado.
There was no estimate for when Bolsonaro could be discharged from the hospital, according to the medical note.
“At the moment, the patient remains on intravenous antibiotic therapy, clinical support, and respiratory and motor physiotherapy,” it added.
Bolsonaro is serving a 27-year sentence for plotting a coup after losing the 2022 presidential election to current President Luiz Inacio Lula da Silva.
Reporting by Andre Romani and Isabel Teles; Editing by Brendan O’Boyle and Aurora Ellis
Alignment by Bermuda, our peoples, and our mixed economy of tourism and international finance, along with the independent nations of the Caribbean is strategic, native, natural and blood-lined.
Better-ism” in 21st Century Bermuda is not only an outdated, historic relic that is no longer helpful; it is also unkind.
The North Atlantic Ocean, meeting the Caribbean Sea at longitude 65°39’W, marks a geographic distance rather than a strategic separation. Over time, closer economic alignment and shared offshore business activity between Bermuda and Caribbean Overseas Territories have opened avenues for extending Bermuda’s financial expertise into CARICOM nations. Together with Bermuda’s established wealth management relationships with Africa and Asia, this context renders hollow, any suggestion that closer alignment with CARICOM is neither strategic nor opportune.
“ Becoming part of a group of
small nations whose economies
are fundamentally different from
ours and who have significant
issues with our major trading partner,
the USA is not in our best interest. “ – Bob Richards, March 2026
The deployment of this thesis, in support of non membership with CARICOM contains inaccuracies that belie its purpose;
Pillar B of the Bermuda Tourism Policy focuses on airlift, hotel development, and vacation rentals, areas in which Bermuda currently competes with CARICOM nations. However, as full members of CARICOM, Bermuda and the region’s successful tourism destinations can move beyond competition toward greater partnership and shared effort. In a market that continues to attract visitors from the United States and Europe by air and sea, this shift has the potential to replace rivalry with collaboration to the benefit of Bermuda’s tourism economy.
Pillar A, encompassing international finance, wealth management and international insurance management, is an area where Bermuda already demonstrates global leadership and clear competitive advantage. The opportunity to extend this influence through engagement with CARICOM nations as full members represents a significant and largely untapped avenue for economic growth. To dismiss this prospect on the basis that it does not serve Bermuda’s interests overlooks both the strategic value and the long‑term economic potential such engagement can deliver.
Charles III and Mr. Carney
His Majesty the King Charles III and Prime Minister of Canada Mr Mark Carey are both proponents of linking hands.
Recently, in keeping with King Charles clear-eyedness of the benefits of the maintenance of a strong Commonwealth, hosted the President of Nigeria, President, Bola Ahmed Tinubu and the First Lady, Senator Oluremi Tinubu at Windsor Castle. KIng Charles III, in his speech at the royal banquet stated;
“We in the United Kingdom are blessed that so many people of Nigerian heritage… are now at the heart of British life through excelling at the highest levels of business, technology, academia, law, science, sport, literature and the arts, and public service.”
The Carey Formula
I argue that this has direct relevance to Bermuda’s membership objectives. The value and strength of Bermuda’s Caribbean linkages have not diminished; they persist and are more relevant at this moment in our national evolution, a point reinforced by recent remarks from the Prime Minister of Canada.
“In a world of great power rivalry, the countries in between have a choice: to compete with each other for favor or to combine to create a third path with impact.”
— Mark Carney, Prime Minister of Canada
The analyses offered by His Majesty the King and Prime Minister Carney speak directly to Bermuda’s consideration of full membership in CARICOM. In that context, I commend Minister Lightbourne for initiating the Green Paper and for placing this important national question before the public for careful and informed consideration.
Those who have called for a pause in the process are entitled to their views, and those views deserve respect. In my view, however, this is a moment for plain speaking and careful judgement about Bermuda’s future direction. Full membership in CARICOM does not present a logical or geopolitical risk to Bermuda. Nor does it follow that membership, by association alone, would expose Bermuda to limitations on access to the United States.
Bermuda has a long‑standing history of United States pre‑clearance, a reality that sets us apart and must be part of any serious assessment. Its absence from recent geopolitical commentary, including analysis published in the Daily, leaves an incomplete picture for the public at a critical point in this discussion.
“…its ‘glaring omission’ was its failure to acknowledge the island’s heavy influences from the US, dating back to the establishment of military bases in 1940-42.”
“The radical divergence in economic development paths between Bermuda and the Caribbean has resulted in today’s state of development in Bermuda being totally different from that of the southern islands, now represented by Caricom.”
“None of the full members of Caricom feature the successful export of financial services like Bermuda, none.”
“Cosying up to a region that the US views negatively is not in our interests.”
– Bob Richards,
May I respectfully offer a response to the projections raised and set out an alternative view. Following the decision by then Premier Dame Jennifer Smith to pursue and secure associate membership in CARICOM, full membership now presents Bermudians with an opportunity to deepen long‑standing Caribbean ties while advancing practical national interests. These include closer economic integration through the CARICOM Single Market and Economy, expanded trade and mobility, a stronger collective voice in foreign affairs, and a fuller acknowledgement of Bermuda’s place within the Caribbean community.
Full membership also allows Bermuda to balance its historic relationship with the United Kingdom alongside fair and constructive regional engagement. For Bermudians, this approach opens avenues in employment, education, health cooperation, and regional leadership, converting shared history into purposeful advantage for the years ahead.
Statement by Shadow Tourism Minister Dwayne Robinson:
When the Progressive Labour party suffers a defeat or set back, its parliamentarians tend to take a swing at the Opposition.
I understand they are reeling from the defeat of their Municipality legislation in the Senate, and it seems the Junior Minister of Tourism, Transport, Culture & Sport seeks to continue a tried-and-true PLP political strategy.
However, with his swipe at my Senate colleagues and myself regarding tourism, he wrote a few things in his piece I feel are worth correcting.
The narrative that the One Bermuda Alliance does not support the re-opening of the Elbow Beach hotel is simply untrue. It was under our administration that the Loren Hotel opened in 2017.
The investors and developers courted by the One Bermuda Alliance continue to bear fruit today. Those same developers have acquired Elbow Beach and have our full support.
The Senate vote was explained previously as a discrepancy regarding the concessions granted which were cleared up, and in the debate none of our Senators expressed a lack of support for the re-opening of the Elbow Beach hotel.
The Junior Minister’s claims that we “attempted to trip it coming out of the blocks” is a reach when without the One Bermuda Alliance the developers might not have been here to acquire Elbow Beach in the first place.
We have always supported the efforts of the Progressive Labour Party Government to rebuild tourism when they are in the best interest of Bermudians.
There was also mention of my comparison to Turks and Caicos because they offer 20-to-30-year tax concessions while the OBA “argues” that the Fairmont Southampton’s concessions were too generous.
This is sadly a strawman argument as the reference was to show that comparable jurisdictions have found their recipe to increase their tourism arrivals to pre-pandemic levels.
It is extremely doubtful that all of Turks and Caicos’ improvement in tourism can be reduced to the tax concessions they offer. Therefore, with no argument from us to increase concessions, this point is moot.
However, let me further qualify our opposition to the 15-year concessions given to the Fairmont Southampton developers.
We were able to secure St. Regis hotel which was a brand-new build by offering 10-year concessions to the developers. We found it implausible that a hotel renovation should be given more concessions than a newly built hotel.
There were also other occurrences such as the Fairmont owners deciding to close its doors during the pandemic, while other hotels decided to adapt to those difficult times and remain open.
The closure which was meant to be temporary, ended up lasting almost 6 years during which the Progressive Labour Party had to step in to ensure redundancy payments were made to staff, although later paid back, only for the taxpayer to pay for the lack of maintenance of Fairmont Southampton during its closure with an increase in concessions and the number of residential units granted via an updated Special Development Order.
To reduce the One Bermuda Alliance’s position to simply “that the concessions were too generous” is a gross mischaracterization.
On a brighter note, there are two things the Junior Minister admitted in his article that show we do share the same reality—air arrivals have not returned to 2019 levels and that current visitor spending, when adjusted for inflation, is lower than our peak spending record in 2019.
Around six percent, according to the Junior Minister’s own estimation or “94 cents on the 2019 dollar with three quarters of the beds is not a story of failure.”
The three main points of my article he replied to was that our tourism industry hasn’t returned to 2019 levels, that our increased tourism spending might not be translating into profit for the industry due to inflation, and that we need to make some capital investments in our infrastructure to improve our tourism product.
The Junior Minister agreed with the first two points, ignored the third, so what point is he arguing?
It seems we are indeed “rowing in the same direction” on wanting our tourism industry to recover. My article did not suggest tourism was “failing” but only to put forward a realistic outlook on our tourism industry and suggestions on where we can improve.
I put forward some solutions that were conveniently ignored by the Junior Minister, making his commentary rather disingenuous.
Concessions must be consistent, transparent, and tied to outcomes. We need to see the growth of Bermudians in Hospitality management not just claims that this is in the plan.
Claiming that the Opposition is potentially damaging investor confidence by doing our job comes across as an excuse for struggling to attract additional investors to our shores. I would suggest the Junior Minister welcome more dialogue on potential solutions rather than attempting to shift blame for the Progressive Labour Party Government’s shortcomings on to the Opposition.
Francis Patton School is proud to announce its 75th Anniversary Celebration, marking decades of excellence in education, community impact, and generational legacy.
This milestone celebration invites all alumni, past and present educators, principals, families, and supporters to come together for a powerful series of events from March through June 2026. Whether you graduated 75 years ago or just started, this is your moment to reconnect, celebrate, and be part of history.
Francis Patton has long stood as a pillar in Bermuda’s educational landscape—known not only for shaping young minds, but for producing exceptional individuals who continue to impact Bermuda and beyond. The school proudly declares what so many already know:
Francis Patton School values its alumni and its role within Bermuda’s school community.
A truly special highlight of this historic 75th Anniversary celebration is the recognition of two of Francis Patton’s very first students, Ms. Esme Williams, & Mr. Delano Ingham (who we will do a follow up alumni feature) who was part of the school’s inaugural class 75 years ago.
As a former Principal and educator in our school system, her presence stands as a living bridge between the school’s rich beginnings and its vibrant future—embodying the legacy, resilience, and excellence that define the Francis Patton community today. As Francis Patton School celebrates 75 years of excellence, few stories capture its legacy more powerfully than that of Ms. Esmee Williams, a proud member of the school’s very first class in 1951 and a current member of the 75th Anniversary Committee.
Esme Williams (Photograph by Sideya Dill)
Reflecting on her early days, Ms. Williams shares a vivid memory of what it meant to be part of the beginning:
“I am so excited about the 75th anniversary of Francis Patton because it takes me right back to being one of the first students in 1951. We walked to school from Holy Trinity Road, and I remember standing across the street lined up with my classmates, waiting to be assigned to our teachers. I was right at the front of the line.”
Her recollections paint a picture of a strong academic and values-based foundation. Subjects included arithmetic, geography, English, Bible studies—where students memorized scripture—along with music and physical education. She fondly remembers influential educators such as Mrs. Woolridge (4th grade) and Mrs. Stowe, as well as physical education teachers Nelda Reid and Mr. Augustus, noting that sports and physical activity were a major part of school life.
“Sports was a big focus back then. There was a strong emphasis on staying active—I don’t recall having the obesity challenges we see now. I remember my PE uniform and the pride we had in representing our school.”
She also recalls the competitive academic and cultural environment, including recitations and performances such as the Highland Fling, where students proudly wore traditional plaid kilts.
Ms. Williams was among the students selected to prepare for the ‘Eleven Plus Examination’, a pathway to The Berkeley Institute. Although she began preparing, her journey took her overseas in 1954, where she continued her education and went on to earn multiple degrees.
Her professional career would come full circle in education. After serving as an Elementary School Principal in Sacramento, California, she returned to Bermuda in 1985. Despite initial regulatory barriers, she continued to serve with distinction—first as a counselor at Prospect School for Girls, then as Principal of Southampton Glebe School and later Victor Scott Primary School, where she led for several years.
When asked what inspired her path in education, Ms. Williams credits her family:
“Education was in my blood. Many of my family members were educators—my Aunt Esmee Swan was a principal, Aunt Cecily Caisey ran a nursery, and my Aunt Agatha Burgess taught right here at Francis Patton.”
Beyond education, Ms. Williams continued her impact through leadership roles in Big Brothers Big Sisters and hospitality at Grotto Bay Hotel. She is known for her various community, political, and disability advocacy initiatives including as a member of the Hamilton Parish Council. Today, she remains actively involved, continuing to support Francis Patton with her wisdom, experience, and passion.
Her message to today’s students and educators is one rooted in faith, perseverance, and purpose:
“I trust in the Lord for all things—whether in school or in life. Give everything to God. There will be trials and storms, but when we take it to Him, He will guide us through. Scripture says, ‘Faith without works is dead,’ so trust Him—and do the work.”
A Celebration of Legacy, Pride, and Community
This anniversary is more than a celebration—it is a movement to strengthen alumni engagement, school pride, and long-term support for future generations.
Alumni are encouraged to proudly represent their house—Red, Blue, or Gold—as friendly rivalry returns in full force. The call is out:
“Let’s see which house truly stands the test of time!”
In addition, sponsors and community partners are warmly welcomed to support this initiative, as all events contribute toward fundraising efforts for Francis Patton students and school development.
A key legacy outcome of this campaign will be the launch of the Francis Patton Alumni Committee, ensuring continued engagement, support, and pride well beyond the 75th celebrations.
Attend each event and learn about the other 75th Anniversary events that are upcoming. Plus, order Alumni Merchandise for our school fundraiser and sign up to join our alumni database!
Signature 75th Anniversary Events
Event #1: Alumni Social – Launch Event
📍 Bailey’s Bay Cricket Club 📅 Friday, March 27, 2026 🕕 6:00 PM – 8:00 PM
Kick off the celebrations with an evening of connection and energy:
Networking with classmates and educators
Learn about upcoming anniversary events
Alumni database sign-up opportunities
Giveaway prizes
Exclusive Francis Patton Alumni merchandise by Distinct Apparel
Event #2: 75th Anniversary Tea Social
📍 Francis Patton School Hall 📅 April 9, 2026 🕑 2:00 PM – 4:00 PM
An elegant afternoon of nostalgia and celebration:
Performances by the School Choir and student poetry
Open mic memory sharing by alumni
Sandwiches, teas, and desserts
Alumni networking and engagement
Dress Code: Smart Casual (Tea hats optional)
COMP Event | Donations welcomed
Event #3: Alumni & Community Fun Day
📍 Francis Patton School Field & Lower School 📅 Saturday, May 16, 2026 🕙 10:00 AM – 6:00 PM
A vibrant day of school pride and family fun:
Performances by Francis Patton Cheerleaders
Hamilton Parish Community Majorettes
DJ Dez Thomas (FPS Educator)
House cheer competitions
Alumni vs. student sports, games and activity challenges
Vendor Village (food, entertainment, and family-friendly activities welcomed)
CALLING ALL VENDORS: FPS Alumni and family vendors first preference but open to all.
For vendor cost and more details, Contact Mrs Steede 478-3303 by deadline April 24th or email francispattonalumni@gmail.com
Event #4: 75th Anniversary Gala
📅 Saturday, June 6, 2026
A grand closing celebration featuring:
Cocktail reception
Historical reflections and tributes
Recognition of alumni, educators, and community supporters
Trump has also lambasted his allies for being unwilling to actively join operations to secure the Strait of Hormuz
International News via Reuters:
France’s army chief said on Tuesday that the United States had become an unpredictable ally that was impacting France’s interests and security.
“We were surprised by an American ally, who remains an ally, but who is becoming increasingly unpredictable and doesn’t even bother to inform us when they decide to launch military operations,” Fabien Mandon told a security and defence forum in Paris.
“It has an impact on our security and it has an impact on our interests.”
France and the United States are close NATO allies, but there has been a growing frustration in Paris over Washington’s decision to launch its war on Iran in the Middle East after U.S. President Donald Trump already angered European allies over his designs on Greenland.
Trump has also lambasted his allies for being unwilling to actively join operations to secure the Strait of Hormuz, a strategic chokepoint that carries about a fifth of global oil supplies and underpins Gulf economies.
“We intervened in Afghanistan at the request of the Americans, who invoked Article 5 of NATO, and they chose to withdraw without informing us,” Mandon said.
“They have now decided to intervene in the Middle East without informing us. However, the immediate concern of the French armed forces has been to find solutions for France to protect citizens who were in transit in the region.”
Reporting by John Irish; Editing by Sudip Kar-Gupta
The S&P Global Purchasing Managers’ Index is the first major survey to show the impact on British businesses from the U.S.-Israeli war on Iran which is expected to slow already weak growth and push up inflation
International News via Reuters:
British business activity has grown at the slowest pace in six months and manufacturers’ input costs accelerated at the fastest rate since 1992, according to a survey that underscores the risks to the government’s economic agenda from the Iran conflict.
The S&P Global Purchasing Managers’ Index is the first major survey to show the impact on British businesses from the U.S.-Israeli war on Iran which is expected to slow already weak growth and push up inflation.
The preliminary composite Purchasing Managers’ Index, covering manufacturers and non-retail services businesses, sank to 51.0 in March from 53.7 in February which was the joint-highest since August 2024.
“March’s flash PMIs show that the conflict in the Middle East is already going a long way to boosting inflation and extinguishing GDP growth. And this is just the start,” Paul Dales, chief UK economist at Capital Economics, said.
S&P Global’s gauge of input prices for British manufacturers – which measures how fast costs are rising – jumped to 70.2 in March from 56.0 in February, the biggest leap from one month to the next since sterling tumbled out of Europe’s Exchange Rate Mechanism in 1992.
Higher prices for fuel, transport and energy-intensive raw materials were the main reasons for the increase, S&P said.
“It’s no surprise that the surge in energy prices triggered by the Middle East conflict has weakened activity and raised prices – that’s textbook. But we are a bit struck by how rapid the moves have been,” Dales said.
The survey’s headline reading was below all forecasts in a Reuters poll of economists, though above the 50-level that divides growth from contraction.
It was also higher than it was in some of the run-up to finance minister Rachel Reeves’ budget in November when many businesses feared they would be hit with higher taxes.
The equivalent PMI for the euro zone fell much less sharply, dropping to 50.5 in March from 51.0 in February.
Although President Donald Trump paused some attacks on Iran on Monday and said there had been productive talks, British Prime Minister Keir Starmer said the government needed to plan on the basis that the conflict could continue for some time, and on Tuesday Iran launched waves of missiles at Israel.
Reeves was due to address parliament on Tuesday on the impact of the war on the economy, which she had promised to boost before an election in 2024, and on possible support measures for energy users.
FACTORIES’ RAISE PRICES AT FASTEST PACE IN ALMOST A YEAR
Businesses said they raised their prices at the fastest rate since April 2025 – sharpening the dilemma for the Bank of England on whether it needs to raise interest rates to tame inflation risks at a time when the economy is slowing.
Last week the BoE kept rates on hold and said it was ready to take further action if needed as it forecast inflation would rise toward 3.5% in the middle of this year. Previously, the BoE had forecast inflation would fall to around 2% in April.
Jake Finney, senior economist at PwC, said the pickup in inflation pressures alongside weaker demand showed the conundrum facing the BoE.
“The key judgment for Monetary Policy Committee members will be how long the conflict is likely to last and whether higher energy prices will trigger a broader resurgence in inflation pressures,” Finney said.
The PMI survey showed British businesses’ expectations for future output were the weakest since June 2025. Employment fell for the 18th month in a row, the longest unbroken run of declines since 2010.
“Companies blamed lost business directly on the events in the Middle East, whether through heightened risk aversion among customers, surging price pressures, higher interest rates, or via travel and supply chain disruptions,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said.
Writing by David Milliken and William Schomberg; Editing by Hugh Lawson
Frank-Walter Steinmeier, whose largely ceremonial role allows him to speak more freely than politicians, took a far more critical line than Chancellor Friedrich Merz, who has skirted questions on the war’s legality
International News via Reuters:
The Iran war is a “disastrous mistake” that breaches international law, Germany’s president said on Tuesday in an unusually blunt rebuke of U.S. President Donald Trump’s foreign policy, which he said marked a rupture for German ties with its biggest post-war ally.
In a scathing verbal attack, Frank-Walter Steinmeier, whose largely ceremonial role allows him to speak more freely than politicians, took a far more critical line than Chancellor Friedrich Merz, who has skirted questions on the war’s legality.
“Our foreign policy does not become more convincing just because we do not call a breach of international law a breach of international law,” Steinmeier, a former foreign minister from the centre-left Social Democratic Party, said in a speech at the foreign ministry.
“We must address this with regard to the war in Iran. For, in my view, this war is contrary to international law,” he said, adding he had little doubt that the justification of the imminent nature of an attack on U.S. targets did not hold water.
Calling the war unnecessary and a “politically disastrous mistake”, Steinmeier said Trump’s second term marked a rupture in German foreign relations as profound as Russia’s invasion of Ukraine.
“Just as I believe there will be no going back in relations with Russia to before February 24, 2022, so too do I believe there will be no going back in transatlantic relations to before January 20, 2025,” said Steinmeier.
REDUCING DEPENDENCY
Germany had to apply lessons it learned in extricating itself from “excessive dependencies” on Russia and apply them to the U.S., particularly in defence and technology, which translate to power, he said.
Germany has stressed the importance of creating alternatives to U.S.-dominated technology as concerns grow over U.S. access.
China returned to being Germany’s top trading partner in the first eight months of 2025, overtaking the U.S. as higher tariffs weighed on German exports. Trade between the U.S. and Germany amounted to more than 163 billion euros ($190 billion) over that period.
The recent spat between the Pentagon and Anthropic over safety guardrails surrounding the latter’s artificial intelligence could be a wake-up call, or even an opportunity, for Europe, said Steinmeier.
“Europe as a technology hub has talent, markets, opportunities and, importantly, ethical standards. We should build on these,” he said.
Reporting by Andreas Rinke and Miranda MurrayWriting by Miranda Murray and Madeline Chambers Editing by Ludwig Burger and Aidan Lewis
The Prudential Regulation Authority fined the bank for “misleading the PRA over their capital positions, failing to act with integrity, failing to be open and cooperative with the regulator and failing to maintain adequate financial resources,”
International News via Reuters:
Britain’s banking stability watchdog fined Bank of London and its parent company Oplyse Holdings Limited 2 million pounds ($2.68 million) for failing to act with integrity and misleading the regulator over their capital position.
The Prudential Regulation Authority, part of the Bank of England, fined the bank for “misleading the PRA over their capital positions, failing to act with integrity, failing to be open and cooperative with the regulator and failing to maintain adequate financial resources,” a statement on Tuesday said.
($1 = 0.7468 pounds)
Reporting by Muvija M, writing by Sam Tabahriti; editing by Sarah Young
The blue‑chip FTSE 100, which had traded higher earlier in the session, was down 0.1% at a three‑month low, as of 1039 GMT
International News via Reuters:
The FTSE 100 ticked lower in choppy trading on Tuesday, as mixed signals from the Middle East conflict lifted oil prices and curbed risk appetite, while investors also priced in further rate‑hike expectations.
The blue‑chip FTSE 100, which had traded higher earlier in the session, was down 0.1% at a three‑month low, as of 1039 GMT.
The mid‑cap FTSE 250 fell 0.4% to a near 10‑month low as mid-caps, which are more vulnerable to domestic pressures, were hit by rising energy costs.
The benchmarks’ fall tracked global stocks, where the relief rally from U.S. President Donald Trump delaying the bombing of Iran’s power grid fizzled out, leaving investors with no clarity over the fate of the war.
UK energy stocks rose 0.8%, mirroring oil prices, which rebounded to above $100 a barrel following Iran’s statement rejecting Trump’s claim of “productive” talks with Tehran. [O/R]
Markets are now pricing in two quarter‑point Bank of England rate hikes this year, with a possibility of a third, down from four expected before Trump’s comments on Monday.
Miners and banks fell 0.4% and 0.9%, respectively, were among the biggest drags on the day. [MET/L]
Among individual stocks, Bellway fell 10% after the home builder trimmed its profit margin outlook and echoed warnings on risks to the housing market from the Middle East conflict.
S4 Capital surged 26% after the advertising group said it expects its 2026 net revenues to meet analyst expectations despite flagging a hit in the first quarter from clients spending less due to the conflict.
YouGov fell 8% after the market research firm warned of lower annual profit due to additional investments in its Shopper division.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair
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