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The Bank of Canada kept interest rates at 2.75% today.

In a statement it said:

The state of California plans to sue US president Donald Trump’s tariffs as it faces a devastating blow from the trade barriers.

Gavin Newsom, the governor of California, announced that California will fight in the courts to stop Trump’s tariffs, accusing the president of overstepping his authority.

The state has filed a lawsuit in San Francisco federal court challenging the president’s use of emergency powers to levy tariffs which have rattled stock markets and raised fears of recession.

Newsom said:

The lawsuit argues that Trump’s use of the International Emergency Economic Powers Act to bypass Congress and impose tariffs is unlawful.

Rob Bonta, the state’s attorney general, said:

Accounting firm EY is being investigated over how it audited the Post Office in relation to the Horizon scandal from March 2015 to March 2018.

The Financial Reporting Council (FRC), the UK's accounting regulator, said it will check whether EY met its standards "with particular reference to matters related to the Horizon IT system".

The software developed by Fujitsu was at the heart of the Post Office scandal that saw hundreds of postmasters wrongly convicted.

EY said it takes its responsibilities "extremely seriously" and will be "fully cooperating" with the FRC. The Post Office declined to comment to the BBC.

The news of the investigation comes as sub-postmaster campaigners Lee Castleton, Seema Misra, and Chris Head will be made OBEs at Windsor castle on Wednesday.

More than 900 sub-postmasters were prosecuted for stealing because of incorrect information from the Horizon computer system. It has been called the UK's most widespread miscarriage of justice.

The Post Office itself took many cases to court, prosecuting 700 people between 1999 and 2015.

Global economic growth could slow sharply this year thanks to trade tensions and mounting uncertainty, the United Nations’ trade agency said.

The UN trade and development agency (UNCTAD) is predicting growth will slow to 2.3% this year from 2.8% in 2024.

It said:

Eurozone inflation fell to 2.2% last month, according to the latest data from Eurostat on Wednesday, down from 2.3% in February.

A year earlier, the rate was 2.4%. European Union annual inflation was 2.5% in March 2025, down from 2.7% in February. A year earlier, the rate was 2.6%.

The lowest annual rates were registered in France (0.9%), Denmark (1.4%) and Luxembourg (1.5%), while the highest annual rates were recorded in Romania (5.1%), Hungary (4.8%) and Poland (4.4%).

Compared with February last year, annual inflation fell in sixteen member states, remained stable in one and rose in 10.

The highest contribution to the annual euro area inflation rate came from services, up 1.56 percentage points (pp), followed by food, alcohol & tobacco (+0.57pp), non-energy industrial goods (+0.16pp) and energy (-0.10pp).

It comes as the European Central Bank (ECB) is set to cut interest rates on Thursday to help cushion the eurozone economy against US president Donald Trump’s barrage of tariff hikes.

Money markets indicate there is a 98% chance that Europe's central bank will reduce borrowing costs again to 2.25% as the European economy prepares for a possible hit.

Hugh Lind, economist at Cebr, said: “Further falls in inflation will encourage the European Central Bank to press ahead with rate cuts amidst elevated uncertainty and the recent implementation of tariffs by the US.

"Headline inflation was confirmed at 2.2% in March, down from February’s reading of 2.3%. Core and services inflation, measures which more accurately reflect domestic price pressure, also dropped in March. Indeed, the tariff policy of the US is likely to placed downward pressure on both growth and inflation in the Eurozone, as demand for European exports falls and Chinese goods are rerouted away from the US.

"We, therefore, anticipate a 25-basis point cut in the policy rate at tomorrow’s ECB meeting and two further cuts by the end of the year.”

Read more on Yahoo Finance UK

UK Finance has revealed its card spending data for January 2025, covering the monthly value and volume of transactions across debit and credit cards, both in the UK and of UK-issued cards across the world.

This data also covers outstanding balances on credit cards, card issuance and contactless payments.

The highlights can be found below:

• There were 2.2 billion debit card transactions in January, 5.4% more than in January 2024. The total spend of £65.7bn was 1.7% higher than January 2024.

• There were 347.7 million credit card transactions in January, 0.1% fewer than in January 2024. The total spend of £20.8bn was 1.9% higher than January 2024.

• Outstanding balances on credit card accounts have grown by 5.7% over the 12 months to January and 49.4% of outstanding balances incurred interest compared to 50.5% in January 2024.

• There were 1.97 billion debit and credit card transactions in the UK in January, 1.8% more than in January 2024. The total spend of £71.5bn was 0.1% lower than January 2024.

• Contactless payments accounted for 64% of all credit card and 75% of all debit card transactions.

• There were 1.43 billion contactless card transactions in January, 3% more than the 1.39 billion in January 2024. The total value of contactless transactions was £22.6bn in January, a 5.4% increase on £21.5bn in January 2024.

• The number of contactless credit card transactions was 7.5% higher than January 2024. The number of contactless debit card transactions was 2.2% higher than January 2024.

Even if you love working from home, it can be hard to focus sometimes. Whether you’re trying to engage your brain in the morning or finishing off a dull admin task, distractions can easily pull you off course.

There are many different ways to stop your mind wandering and stay productive. Some people rely on regular schedules, or create a dedicated distraction-free workspace. But others swear that having a "body double" — someone to work alongside them physically or virtually — helps them stay on track.

Body doubling is a productivity strategy in which you work alongside someone else. It’s thought to help you stay focused, engaged and motivated by creating an environment of shared presence and accountability.

The other person doesn’t need to engage in the same task, or even provide direct help. Instead, body doubling relies on the simple principle that having company can make a hard task easier.

Body doubling is frequently recommended as a useful technique for individuals with attention deficit hyperactivity disorder (ADHD), as engaging in positive social interactions may boost dopamine levels and support task completion. Studies indicate that people with ADHD might have naturally lower dopamine levels or problems with dopamine regulation, which could contribute to challenges with maintaining focus.

Read the full article here

Nearly half of UK businesses (46%) are currently struggling with staff shortages, according to new research by Indeed Flex, the online marketplace for flexible and temporary work.

A survey of 2,000 UK business owners and hiring managers reveals that nearly a fifth (38%) of firms that are short-staffed say the biggest challenge is filling vacancies, while a third (34%) say it’s retaining talent.

Recruitment has been made harder for a lot of firms following the rise in National Insurance Contributions (NIC) and increases to the National Minimum Wage and Living Wage on 1 April.

Separate research by Indeed Flex reveals that 60% of UK businesses say April's National Insurance hike will slow down hiring this year.

Against this backdrop, close to a third (30%) of firms admit they don’t currently have the budget to make new hires, and 27% say they are cautious about hiring with so much economic uncertainty. Meanwhile, 14% have recently had to make redundancies.

As businesses juggle stretched budgets and staff shortages, 51% of firms plan to increase their reliance on temporary workers as part of their regular workforce over the next 12 months.

Among them, 41% cite seasonal demand as the main driver, while 34% value the speed and ease of hiring temps — and the same share see it as a way to manage rising costs.

Novo Constare, CEO and co-founder of Indeed Flex, said:

Tariff concerns have continued to weigh on oil (BZ=F, CL=F) today, which was still trading at its lowest price since 2021.

Brent crude futures declined 0.7% to $64.24 a barrel on Wednesday morning, while US West Texas Intermediate (WTI) crude fell 0.8% to $60.86 a barrel.

Oil prices have dropped as trade tensions have intensified, with fears that this could tip the global economy into recession and impact fuel demand.

The International Energy Agency forecast on Tuesday that global oil demand in 2025 would grow at its slowest pace for five years, citing concerns about economic growth on the back of tariffs.

According to a Reuters report, UBS analyst Giovanni Staunovo said: "Should the trade war further escalate, our downside risk scenario case — ie. a deeper US recession and a hard landing in China — could see Brent trading at $40-60 (per barrel) over the coming months."

Japan is set to begin face-to-face tariff negotiations with the United States on Wednesday, one of the first countries to test Washington's willingness to relent on sweeping duties that have roiled financial markets and stoked recession fears.

Reuters has the details:

Tokyo's top trade negotiator Ryosei Akazawa will meet US Treasury secretary Scott Bessent and trade representative Jamieson Greer for wide-ranging discussions that could also address energy projects and the thorny issue of exchange rates.

While Bessent has said there is a "first mover advantage" as more than 75 countries have requested talks, Japanese prime minister Shigeru Ishiba has said the close U.S. ally won't rush to reach a deal and does not plan to make big concessions.

Japan has been hit with 24% levies on its exports to the United States although these tariffs have, like most of Trump's sweeping "reciprocal" tariffs, been paused for 90 days. But a 10% universal rate remains in place as does a 25% duty for cars, a mainstay of Japan's export-reliant economy.

Ishiba has, for now, ruled out counter-measures.

The pound (GBPUSD=X, GBPEUR=X) rose against the dollar on Wednesday morning, up 0.4% to $1.328, after data showed that inflation in March fell by more than expected.

Sterling was also buoyed by continued weakness in the dollar, caused by the tariff uncertainty.

The US dollar index (DX-Y.NYB), which measures the greenback against a basket of six currencies, was down 0.8% at 99.44, its lowest point in three years.

Meanwhile, the pound was down 0.5% against the euro (GBPEUR=X), trading at €1.1662.

China has unexpectedly appointed a new trade envoy, as officials said the US's practice of "tariff barriers and trade bullying" is having a serious impact on the global economic order.

The government said today that Li Chenggang is replacing Wang Shouwen, who took part in negotiations for the 2020 trade deal between the China and the US.

Li, 58, is a former assistant commerce minister who was in the role during Trump’s first administration.

Wang, 59, who assumed the No 2 role at the commerce ministry in 2022, was regarded as a tough negotiator and clashed with US officials in past meetings, Reuters reported, citing a source in Beijing’s foreign business community, who described him as “a bulldog, very intense”.

Speaking to Reuters, one expert said the change in jobs was "very abrupt and potentially disruptive" given the current trade tensions - adding that Wang also had experience negotiating with US since the first Trump administration.

"It might be that in the view of China's top leadership, given how tensions have continued escalating, they need someone else to break the impasse... and finally start negotiating," said Alfredo Montufar-Helu, a senior adviser to the Conference Board's China Centre.

However, another analyst who spoke to Reuters suggested the move could just be a "routine promotion" that just happened to come at a particularly tense period in time.

Following on from the house prices data, average UK monthly private rents also increased by 7.7% in the 12 months to March.

This was down from 8.1% in the year to February, and was below the record-high annual rise of 9.1% in March 2024.

• Average rents increased to £1,386 (7.8%) in England, £792 (8.9%) in Wales, and £1,001 (5.7%) in Scotland, in the 12 months to March 2025.

• In Northern Ireland, average rents increased to £838 (8.2%) in the 12 months to January 2025.

• In England, private rents annual inflation was highest in the North East (9.4%) and lowest in Yorkshire and The Humber (4.6%), in the 12 months to March 2025.

• Average UK house prices increased by 5.4%, to £268,000, in the 12 months to February 2025 (provisional estimate); this annual growth rate is up from 4.8% in the 12 months to January 2025.

• Average house prices increased to £292,000 (5.3%) in England, £207,000 (4.1%) in Wales, and £186,000 (5.7%) in Scotland, in the 12 months to February 2025.

Average UK house prices increased by 5.4% to £268,000, in the 12 months to February. This annual growth was up from 4.8% in the year to January.

Annual inflation has been generally increasing since its recent low point of negative 2.7% in the 12 months to December 2023.

• The average house price for England was £292,000 in February 2025, up 5.3% (£15,000) from a year earlier. This annual rise was higher than in the 12 months to January 2025 (4.5%).

• The average house price for Wales was £207,000 in February 2025, up 4.1% (£8,000) from a year earlier. This annual rise was lower than in the 12 months to January 2025 (5.6%).

• The average house price for Scotland was £186,000 in February 2025, up 5.7% (£10,000) from a year earlier. This annual rise was higher than in the 12 months to January 2025 (5.3%).

• The average house price for Northern Ireland was £183,000 in Quarter 4 (Oct to Dec) 2024, up 9.0% (£15,000) from Quarter 4 a year earlier.

Bob Singh, founder at Chess Mortgages, said:

JPMorgan (JPM) boss Jamie Dimon told the Financial Times yesterday that the US and China need to start engaging, rather than embarking on a tit-for-tat trade war.

He said the US remained “a haven” because of its prosperity, rule of law, and economic and military strength, but its economic pre-eminence could come under threat from the president’s attempt to reshape global trade.

Gold prices (GC=F) reached new highs on Wednesday, rising 2.5% to $3,322.30. The precious metal is seen as a safe investment in times of turmoil.

It is the first time it has risen above $3,300 an ounce, with ANZ raising its year-end price forecast to $3,600, and six-month forecast to $3,500.

Ole Hansen, head of commodity strategy at Saxo Bank, said:

Financial markets are betting on an interest rate cut from the Bank of England at its May meeting, estimating an 86% probability after today's inflation data.

The City has fully priced in three quarter-point rate reductions this year.

Matt Swannell, chief economic advisor to the EY Item Club forecasting group, said:

Nvidia (NVDA) revealed on Tuesday night that it would take a $5.5bn hit after the US government limited exports of its H20 artificial intelligence chip to China, a key market for one of its most popular chips.

It comes amid an escalating trade war between the US and China, with both countries introducing steep trade tariffs on each other covering various goods.

Nvidia shares plunged almost 6% in after-hours trading and are still down 4.6% in pre-market trade this morning on the back of the news.

"The [government] indicated that the licence requirement addresses the risk that the covered products may be used in, or diverted to, a supercomputer in China," Nvidia said.

A US Commerce Department spokesperson said late on Tuesday that it was issuing new licensing requirements for exports of chips including Nvidia's H20, AMD's MI308 and their equivalents.

"The Commerce Department is committed to acting on the president's directive to safeguard our national and economic security," said the spokesperson of the department that oversees US export controls.

On Monday, Nvidia said it was planning to build AI servers worth as much as $500bn in the US over the next four years with help from partners such as TSMC (2330.TW, TSM), in step with the Trump administration's push for local manufacturing.

Chancellor Rachel Reeves said the news of inflation falling for a second month in a row is a "sign" that the government's plan is working.

Reacting to March's inflation rate, Reeves said "wages growing faster than prices and positive growth figures" are encouraging but added that there's "more to be done".