Seven days in the Square Mile

Markets tumbled on fears of a full-blown international trade war after the US announced it would slap a further $200bn of tariffs on Chinese imports. Equities rallied midweek as China called for calm, but the mood remained jittery. In a widening of hostilities, the EU confirmed it would begin charging import duties of 25% on s2.8bn’s worth of US goods, from Harley-davidson motorbikes to bourbon and peanuts. The move is in retaliation for the US tariffs imposed on EU steel and aluminium. The European Central Bank announced that it would phase out quantitative easing, despite evidence of a slowdown in the eurozone. The present s30bn monthly bond-buying programme will be slashed to s15bn in the autumn, and finish completely at the end of the year. In the ongoing battle for 21st Century Fox, Disney – which is locked in battle with the US media conglomerate Comcast – increased its offer to $71.3bn from $52bn. Comcast’s current offer stands at $65bn. The water regulator, Ofwat, attacked water companies for their handling of supply disruptions during the “Beast from the East” cold snap. The £15bn merger between Asda and J. Sainsbury came under scrutiny: the competition authorities were warned that it could reduce choice and raise prices for customers. The Bank for International Settlements issued a damning critique of bitcoin and other cryptocurrencies, arguing that they would never replace cash.