Seven days in the Square Mile

US inflation rose higher than expected in March to 3.5%, up from 3.2% in February. Analysts warned that the lack of progress will force the US Federal Reserve to keep rates “higher for longer” – putting pressure on the Bank of England to follow suit to avoid sinking the pound. The BoE prepared to reveal the results of a “once in a generation” review into its internal operations, led by former Fed chair Ben Bernanke. Some economists predicted it could lead to profound changes in Threadneedle Street. China suffered another downgrade: Fitch cut its outlook on the country’s sovereign credit rating to “negative”, citing the risks posed to public finances due to increasing economic uncertainty.

The British Retail Consortium reported that the value of sales increased at an annual rate of 3.5% in March – up from 1.1% in February. The uptick was largely driven by Easter falling unusually early. Some 7.4 million adults in the UK struggled to cover bills and credit repayments in January, with one in nine having no disposable income, according to a report by the FCA. Tesco’s profits leapt by almost 160% last year to £2.3bn before tax – the supermarket said it had benefitted from price rises falling “gradually across the year”. Disney defeated a challenge to its board from activist investor Nelson Peltz, which was viewed as “a definitive victory” for CEO Bob Iger. The entertainment giant announced plans to crack down on shared subscriptions. TikTok announced plans to take on social media rival Instagram by launching a new photo-sharing app.