According to reports, top executives from major banks worldwide recently convened to discuss the potential repercussions of the tariffs imposed by Donald Trump amidst upheaval in the global financial sector.
Among the participants were CEOs from Bank of America, Barclays, Citi, and HSBC Holdings, who delved into the extent of the disturbances during an urgent conference call held just yesterday, as detailed by Sky News.
The organized call was allegedly facilitated by the Bank Policy Institute, a Washington DC-based organization focused on American public policy, research, and advocacy.
Bank of America boss Brian Moynihan, CS Venkatakrishnan of Barclays and HSBC chief Georges Elhedery were all said to have been involved in the talks.
JP Morgan was also reportedly on the call, which a source said was intended to help US bank executives explain their thoughts on the chaos to their international peers.
The call a day before the UK’s FTSE 100 plunged to a one-year low, despite Sir Keir Starmer promising new measures to support under-pressure manufacturers.
Analysts have warned that the scale of disruption in global financial markets is one of the worst to be felt in decades.
Bank of America boss Brian Moynihan (left) and CS Venkatakrishnan of Barclays (right)
HSBC chief Georges Elhedery was also said to have been involved in the talks yesterday
The index, which tracks the country’s top 100 listed firms, dropped by about 5 per cent in early trading today as a sharp sell-off kicked in shortly after markets opened.
The panicked mood was felt across Europe, with Germany’s Dax index recording a drop of about 6.5 per cent, and France’s Cac 40 down 5.3 per cent this morning.
Overnight, Asian stocks across the board were sinking to new lows after Mr Trump said he will not back down on his sweeping import taxes unless countries even out their trade with the US.
The new FTSE 100 low today came after last Friday was the index’s worst single-day of trading since the start of the pandemic in March 2020.
This morning, every one of the 100 stocks tracked on the index was declining.
European, US and Asian indexes have also taken a battering in the past few days as Mr Trump’s trade rules, as well as retaliatory tariffs imposed by China, reverberated across the financial markets.
The fresh sell-off on Monday was sparked by Mr Trump standing by his trade rules when questioned about the stock market turbulence.
‘Sometimes you have to take medicine to fix something,’ he said about his tariffs, which are intended to boost US production and businesses in the long term.
An analyst works at screens and monitors at a Bloomberg terminal at IG Group in London today
Prime Minister Sir Keir Starmer and Chancellor Rachel Reeves during a visit to the Jaguar Land Rover car factory in Solihull today
A trader works on the floor of the New York Stock Exchange at the opening bell this morning
Some analysts have warned that the recent shock is among the worst to face the financial markets in decades.
Henry Allen, a macro strategist for Deutsche Bank, said it is ‘no exaggeration’ to describe the recent movements as ‘historic’, with huge swings happening across different asset classes, not just stocks and shares.
The S&P 500, which tracks America’s top listed companies, saw its fifth-worst two-day performance last week since the Second World War.
Nevertheless, while the FTSE 100 has suffered sharp drops in recent days, the index is falling from record highs reached earlier this year.
Today, Sir Keir Starmer called for ‘cool heads’ – adding that the UK had to ‘rise together as a nation’ in the face of a new era of global instability.
The Prime Minister said the UK had to ‘rise together as a nation’ in the face of a new era of global instability.
Speaking at a Jaguar Land Rover plant in the West Midlands, the Prime Minister said: ‘These are challenging times, but we have chosen to come here because we are going to back you to the hilt.’
He said the visit was a ‘statement of intent’, showing the Government’s support for an industry which has been hit with a 25 per cent tariff by Mr Trump.
The Prime Minister said: ‘This is a moment for cool heads, nobody wins from a trade war, you know that.
‘But it’s also a moment for urgency, because we’ve got to rise together as a nation to the great challenge of our age – and it is the great challenge – which is to renew Britain so we’re secure in this era of global instability.’
Sir Keir said ‘this is not a passing phase’ and was a ‘completely new world’, with the economic turbulence following the defence and security instability caused by the war in Ukraine.
He added: ‘Let me be really clear, at a moment like this, our future is in our hands, and so of course, we will keep calm and fight for the best deal with the US, and we’ve been discussing that intensely over the last few days.
‘But we are also going to work with our key partners to reduce barriers to trade across the globe, to accelerate trade deals with the rest of the world, and champion the cause of free and open trade right across the globe.’
