Seven days in the Square Mile

Financial markets were said to be facing their most serious crisis since the global crash a decade ago as turmoil in Turkey threatened to engulf other emerging markets. The Turkish lira lost a fifth of its value last week after the US announced new tariffs against Turkey, prompting stock markets globally to fall. Further sharp falls in the currency on Monday caused vulnerable currencies, from the Russian rouble to the Indonesian rupiah, to shudder as traders warned of a “textbook currency crisis”. A measure of calm was restored on signs that contagion from the crisis was easing. But Turkey vowed to continue its “economic war” against the US, announcing tariffs on US cars, alcohol and cigarettes. New UK growth figures showed that the economy bounced back in the second quarter, growing at 0.4% – matching the performance of the eurozone. But while the UK services sector expanded, manufacturing contracted for a second quarter, suggesting a weakening of global demand as trade wars escalate. Sports Direct boss Mike Ashley, who bought House of Fraser out of administration for £90m last week, vowed to keep the majority of its remaining stores open. Homebase said it would close 42 stores, putting more than 1,500 jobs at risk. President Trump urged Harley-davidson owners to boycott the company, which plans to move some production out of the US to avoid retaliatory tariffs from the EU.