Friday 7 March 2025
The Mighty Headlines
Economics: ECB cuts interest rates to 2.5 per cent
Business: Klarna set for IPO in New York
Markets: European government bond yields rise
Foreign Affairs: All EU countries except Hungary agree on more Ukraine aid
Security and intelligence: Syrian forces clash with Assad loyalists
Domestic politics: UK and Ireland agree on energy and security cooperation
The Mighty Stats
FTSE = 8,682.84 (down 0.83 per cent)
S&P 500 = 5,738.52 (down 1.78 per cent)
Nasdaq = 18,069.26 (down 2.61 per cent)
CAC40 = 8,197.67 (up 0.29 per cent)
£1 = $1.29 / €1.19
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US Government special update: President Trump has now paused tariffs on Mexican and Canadian goods after his administration imposed 25 per cent tariffs on both countries earlier this week. The goods covered by the pause fall under the existing US-Mexico-Canada trade agreement.
The Mighty Detail
Economics: The European Central Bank cut interest rates to 2.5 per cent yesterday. This is the sixth rate cut since June 2024 and comes as inflation in the Eurozone fell to 2.4 per cent in February.
Business: Klarna is set to go for an Initial Public Offering (IPO) in New York. The “pay-now-buy-later” company is reportedly looking to raise $1 billion in New York. The decision to list in New York is seen by some as a further blow to the London Stock Exchange. The IPO will make Klarna, currently a private Swedish company, a public company with shares for purchase.
Markets: European bond yields continued to climb during trading yesterday. This follows the expectation of significant borrowing to fund European defence spending. Bond yields move inversely to price and an increase in borrowing increases the supply of government debt, leading prices to fall. On Wednesday, German bonds had their worst day since the fall of the Berlin Wall.
Foreign Affairs: Following a special European Council summit yesterday, all 27 EU leaders agreed to increase European defence spending. The majority of EU leaders also agreed to continue sending military aid to Ukraine. Only Hungary’s leader, Prime Minister Viktor Orban, refused.
Security and intelligence: Fighters associated with former Syrian President Bashir al-Assad have attacked Government forces in the coastal area of Jableh. State media describe the attack as deadly and well-planned. Al-Assad was deposed three months ago.
Domestic politics: As part of the first UK-Ireland summit yesterday, Ireland has announced £185 million of investment in the UK. The UK Prime Minister and the Irish Taoiseach also agreed to enhance cooperation on security, technology and offshore energy among others.
The Mighty Calendar
What’s happening today?
US Federal Reserve Chair addresses the Chicago Booth Monetary Policy Forum
UK and Japan Foreign Ministers and Economy Ministers meeting
Private Members’ Bills debated in UK Parliament
UK house price data (February)
China, France trade data (January)
Eurozone employment data (Q4 2024)
Eurozone GDP data (Q4 2024)
Lookahead to the weekend
Saturday
International Women’s Day
Special Olympics World Winter Games begin (ends 15th March)
Rugby Six Nations: Ireland vs France
Rugby Six Nations: Scotland vs Wales
Sunday
Canada Liberal Party leadership election
Rugby Six Nations: England vs Italy
The Mighty Finale
🌤️Weather today
Sunny spells in the southeast and northeast of England. Rain in the southwest and northwest. High of 15C and low of 7C in London. Light rain in Belfast and Edinburgh.
✏️Life coaching quote of the day
“You've been criticising yourself for years and it hasn't worked. Try approving of yourself and see what happens.” – Louise Hay, motivational writer
Mighty takeaway: When has negative self-talk ever helped you?
That’s it for this Friday morning. See you next week!
Adios!
The Mighty Memo team