The case for ‘greening’ sovereign debt relief
Also in today’s newsletter, a new philanthropic initiative for newborn health bucks global aid cuts
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Shops could be forced to accept cash in future, MPs warn
There is no data on how widely cash is accepted which puts the UK at risk of becoming cashless, a report warns.
France and Germany avoid recession as economies return to growth; UK house prices drop – business live
Rolling coverage of the latest economic and financial news, including growth figures from across Europe
- UK house prices fall but market ‘likely to pick up’ during summer
- China manufacturing activity plummets amid Trump tariff war
France’s economy is likely to “flirt with stagnation” throughout the year, despite the small rebound in GDP in the last quarter, predicts Dutch bank ING.
Charlotte de Montpellier, ING’s senior economist for France and Switzerland, explains:
The additional customs duties in the US and their direct and indirect impact will delay the French economy’s rebound. We estimate that the direct effect of a permanent 10% import duty in the US on French GDP (via a reduction in exports) will be around -0.1%.
Adding to this are the effects of uncertainty, the global economic slowdown and more restrictive fiscal policy, all of which will weigh on French economic activity throughout the year. The cooling in the labour market is likely to limit the recovery in household consumption, and the savings rate is set to remain high.
Aston Martin limits exports to US because of Trump tariffs
Fellow carmakers Stellantis and Mercedes withdraw financial guidance for year over impact of trade war
The British sportscar maker Aston Martin is limiting exports to the US in the face of Donald Trump’s tariffs, while its counterparts Stellantis and Mercedes withdrew their financial guidance for the year, blaming the uncertainty around changing US policy on import levies.
Aston Martin, known for producing the cars driven by James Bond in the spy films, said it was “currently limiting imports to the US while leveraging the stock held by our US dealers”.
Germany’s economy expands by 0.2% in the first quarter, in line with expectations
A Reuters poll had projected 0.2% growth from the previous quarter.