Seven days in the Square Mile

The chairman of the US Federal Reserve, Jay Powell, was widely expected to preside over his first interest rate rise on Wednesday. The focus of markets – already jittery following a Facebook- led rout in the tech sector – was whether the Fed will alter its projections for the path of future rises. In Britain, the squeeze on households caused by rising inflation and stagnant wages may be easing. CPI inflation fell to 2.7% in February, while pay growth has edged up to 2.6% . The pound jumped on news that the UK and EU have agreed terms for the Brexit transition period. The FTSE 100, which is particularly vulnerable to forex movements, fell to its lowest level since December 2016. The European Commission outlined plans for a new tax on big tech firms, claiming they currently pay much less than other companies. The proposal of a 3% tax on turnover for various online services wasn’t targeted specifically at US firms, but may stoke further trade tensions between the two blocs. The takeover battle for GKN approached its endgame ahead of a shareholder vote on Maundy Thursday on Melrose’s improved £8.1bn offer: support in GKN’S board appeared to be growing. Insurer Lloyd’s of London made its first loss in six years following a string of national disasters. Match, the dating giant that owns Tinder and other apps, is suing rival Bumble for alleged infringement of intellectual property.