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On the stock markets, European shares are taking a breather and have fallen back after two days of gains.<\/p>\n
The pan-European Stoxx 600 index is flat ahead of the latest interest rate decision from the US Federal Reserve later today (markets are expecting no change but are waiting for further clues on policy from Fed chair Jerome Powell during the press conference).<\/p>\n
A technology stocks index climbed as much as 2.7%, after ASML, the world\u2019s largest supplier of computer chip equipment, reported stronger-than-expected bookings for the fourth quarter, highlighting robust AI demand. Its shares hit a record high, and are now trading 5.3% higher.<\/p>\n
Swedish truckmaker Volvo climbed 2.7% after it posted a smaller-than-anticipated decline in fourth-quarter operating profits.<\/p>\n
On the flipside, the luxury group LVMH shares tumbled by 7% after chief executive Bernard Arnault expressed caution about the year ahead.<\/p>\n
The FTSE 100 index in London has slipped 16 points, or 0.16%, to 10,191. Germany\u2019s Dax is down 0.13%, France\u2019s CAC has lost 0.9%, Italy\u2019s FTSE MiB slid 0.7% and Spain\u2019s Ibex is trading 0.6% lower.<\/p>\n
Share<\/a>Pound rises above $1.38 for first time since 2021; gold breaks through $5,300<\/p>\n The pound has also benefited from the weaker dollar, and rose above $1.38 for the first time since October 2021.<\/p>\n Meanwhile, gold briefly broke through the $5,300 an ounce level, as investors sought out safe-haven investments.<\/p>\n Sterling has climbed nearly 3% in the last four trading days, from around $1.34, reflecting a sharp unwind in dollar positions as investors respond to growing policy risk in the US, said George Vessey, lead currency and macro strategist at the cross-border payments firm Convera.<\/p>\n Several factors are weighing on the US currency simultaneously, but the common thread is erratic US policymaking, which has revived the dollar\u2019s risk premium and pushed investors to rotate out of dollar\u2011denominated assets or hedge their exposure.<\/p>\n He said for the pound, \u201cthe move looks convincingly bullish and could mark the beginning of a shift into a higher trading range, with the psychological $1.40 level now the next upside marker\u201d.<\/p>\n The FX options market reinforces this momentum. Positioning for a stronger pound versus the dollar is now the most bullish over a one\u2011week horizon since 2019, while longer\u2011dated risk reversals have surged back to levels last seen during the tariff shock last April.<\/p>\n More broadly, currency volatility has returned with force. The G10 one\u2011month implied\/realised volatility spread is at its widest in over a year, signalling that traders are bracing for more turbulence ahead.<\/p>\n Share<\/a>Euro hits $1.20 as sentiment towards dollar sours<\/p>\n As sentiment towards the dollar sours, the euro has hit $1.20 against the greenback, setting a new milestone.<\/p>\n Last week, the euro rose about 2%, its biggest weekly gain since last April, when Donald Trump\u2019s sweeping \u201cLiberation Day\u201d trade tariffs caused global turmoil.<\/p>\n The dollar has been on the backfoot against a number of major currencies, sinking to a fresh four-year low today.<\/p>\n Trump\u2019s trade and foreign policy and his attacks on the US Federal Reserve, America\u2019s central bank, have weakened the dollar. The latest sell-off intensified after he said the dollar\u2019s value was \u201cgreat\u201d when asked whether the greenback had declined too much.<\/p>\n 2025 was the European single currency\u2019s best year since 2017, as it climbed about 13%. However, the path to $1.20 has not been smooth \u2013 the euro was near that level in September but then the dollar recovered.<\/p>\n A year ago, the euro was trading close to $1, but has strengthened since then, helped by a European stimulus package led by Germany, the region\u2019s economic powerhouse, and efforts to boost long-term growth and security in the eurozone.<\/p>\n Historically, the $1.20 level sits just above the euro\u2019s average since it was launched in 1999, according to Reuters. But it\u2019s still much lower than the peak of $1.60 it touched in 2008 during the global financial crisis.<\/p>\n Share<\/a>EasyJet warned over ‘misleading’ \u00a35.99 cabin bag fee<\/p>\n EasyJet has been told by the UK\u2019s advertising regulator that its claim that carry-on baggage fees cost \u201cfrom \u00a35.99\u201d is \u201cmisleading\u201d.<\/p>\n The Advertising Standards Authority (ASA) said there was \u201cinsufficient evidence\u201d that the price was available for large cabin bags \u201cacross a range of flight routes and dates\u201d.<\/p>\n It banned the airline from using the phrase in its marketing and asked it to ensure that for \u201cfrom\u201d prices for large cabin bags, the lowest price is available \u201cacross a significant proportion of flights\u201d.<\/p>\n In its defence, the budget airline told the regulator its advertised price was available on a range of routes but prices varied depending availability, demand and operational cost. It added that the actual price for a particular booking was clearly displayed before purchase.<\/p>\n The regulator\u2019s ruling comes after an investigation by consumer group Which? which found the price for adding a large cabin bag exceeded \u00a35.99 on all 520 easyJet flights analysed. The lowest price found was \u00a323.49 while the average was \u00a330.<\/p>\n An easyJet plane. Photograph: David Parry\/PA<\/p>\n Large cabin bags are designed to fit in overhead lockers on planes. Most low-cost airlines charge passengers an extra fee for bringing a large cabin bag.<\/p>\n Rory Boland, editor of magazine Which? Travel, said:<\/p>\n It\u2019s frankly astonishing that airlines think they can ignore the rules and mislead customers with unattainable prices, so it\u2019s absolutely right that the ASA has made this ruling against easyJet as a result of our complaint.<\/p>\n Our recent investigation found that there is a culture of airlines using low headline fares – then charging exorbitant prices on top to take a standard cabin bag. EasyJet said in a statement:<\/p>\n We always aim to provide clear information to our customers on pricing, and the purpose of this page was to display factual information on fees and charges to customers. Share<\/a><\/p>\n Ipek Ozkardeskaya, senior analyst at Swissquote, said it is likely that the dollar will continue to weaken.<\/p>\n There were plenty of major stories and market moves yesterday, but the most significant \u2014 and most impactful \u2014 was undoubtedly the sharp sell-off in the US dollar. It pushed the US dollar index to a four-year low and continues to drive gold and silver to fresh record highs this morning.<\/p>\n Trade and geopolitical uncertainty, tied to an increasingly unreliable American friend and ally, as well as growing concerns about what will happen to the Federal Reserve\u2019s credibility once Jerome Powell leaves office (it will fly out of the window), continue to weigh on the US dollar. Add to that the latest US consumer survey, which showed a sharp drop in consumer confidence, a marked deterioration in how households view the current situation, a decline in the share of consumers expecting income growth, and a steady rise in those saying jobs are hard to get. You get a pretty murky picture for the greenback and the two-speed US economy.<\/p>\n Still, this will hardly convince the Fed to cut rates today or in the coming months. Powell is likely to avoid political commentary at his post-decision speech today and keep the focus firmly on economic data to justify policy decisions.<\/p>\n That said, we all know the US President is waiting just outside the room \u2014 and anything he might say about the Fed\u2019s decision, or about how much he dislikes Powell, would only risk making matters worse for the US dollar, much to the delight of gold and silver longs. But with or without buzzy headlines, the US dollar looks condemned to weaken.<\/p>\n The only real comfort is that US inflation has not surged as a result of tariffs.<\/p>\n Share<\/a>Introduction: AI boom will produce winners and ‘carnage,’ says tech boss; dollar sinks to four-year lows after Trump comments<\/p>\n Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n The artificial intelligence (AI) will create winners but there will be \u201ccarnage along the way,\u201d the boss of a US technology company has warned.<\/p>\n
The easyJet cabin bag prices we collected were typically five times as much as the \u2018from \u00a35.99\u2019 it claimed. When booking a trip, customers should consider choosing an airline without cabin bag add-ons as it may work out cheaper.<\/p>\n
We always have some large cabin bags available for the lowest price.
In light of the ASA\u2019s feedback we have made some changes to the page to ensure the information is as clear as possible for consumers.<\/p>\n