Seven days in the Square Mile

Stock markets, already unsettled by the implications of President Trump’s decision to impose tariffs on aluminium and steel, were further rattled by the resignation of his chief economic adviser, Gary Cohn, who was thought to have a restraining influence on the president. Having hit a 14-month low last week, the FTSE 100 fell further and a wave of selling swept through Asia Pacific markets. The mood in the City wasn’t lifted by the latest developments in the Brexit negotiations. The EU rebuffed Theresa May’s vision for trade after Brexit, which had been welcomed by UK business groups, ruling out preserving single market access. There was no mention at all of financial services. The Bank of England‘s governor, Mark Carney, called for a crackdown on the cryptocurrency “mania”, arguing it was time that “the crypto-asset ecosystem” was regulated to the same standards as the rest of the financial system. Blackrock, the world’s largest asset manager, said it would offer customers options for switching out of investments that include stocks of gunmakers. Shares in Rolls-royce, Britain’s flagship engineer, rose 13% after an improvement in profits, suggesting it is on the road to recovery. The Irish packaging giant Smurfit Kappa dismissed an s8.6bn takeover approach by US rival International Paper as “fundamentally opportunistic”. Shares in Carpetright slumped after the retailer issued its third profit warning in three months; Mothercare also took a hit. Thames Water was criticised for its poor response in dealing with leaks after the cold weather.