Seven days in the Square Mile

The US Federal Reserve lifted its benchmark interest rate by a quarter of a percentage point to a range of 2-2.5%, marking its third rise this year. Another rise is expected before the end of the year and three more are forecast for 2019, despite opposition from President Trump. The Fed’s chair, Jerome Powell, indicated that the US economy was in “a bright spot”. The pound came under pressure as the Tory party conference opened in Birmingham, spurring renewed debate about the terms of Brexit. European stock markets were roiled by anxiety over Italy’s economy following Rome’s defiant rejection of EU budget rules. The US and Canada agreed a “modernised trade agreement” to replace the Nafta pact of 1994. Shares in the sports carmaker Aston Martin went into reverse on their first day of trading in London on Wednesday. Having floated at £19 a share, valuing the company at £4.3bn, they fell 6.5% to £17.81 by lunchtime. The week’s other big float – of peer-to-peer lender Funding Circle – also suffered a painful rout. The collapse of the Danish budget airline Primera Air left hundreds of passengers stranded across Europe and the US. A cyberattack on Facebook exposed the personal data of nearly 50 million users. The new owner of House of Fraser, Mike Ashley, sacked the chain’s leadership. Selfridges reported record profits of £181m. New York state authorities are investigating the Trump family’s tax affairs, following allegations of fraud in The New York Times. Martin Sorrell’s new venture, S4 Capital, debuted in London, valued at £358m.