Markets fall as tech worries rise; Brexit and Trump tariffs take bite out of UK food exports – business live

Rolling coverage of the latest economic and financial news

European stock markets are dropping today, as a sell-off in technology shares on Wall Street yesterday rattles investors’ nerves.

In London, the FTSE 100 is down 80 points, or 0.77%, falling away from its highest closing level in two months.

Apple and Microsoft’s price rises have struck at the market’s fear of inflation, raising worries that, far from being deflationary, the AI boom might be inflationary, particularly for the hard-pressed consumer, hurting rather than aiding economic growth.

Meanwhile, OpenAI seems to have little stomach for market volatility either, reportedly put off by SpaceX’s travails. Having piled in to AI and tech since the end of March, there is a desire to protect profits, and investors continue to be in a mood to sell first and ask questions later.”

We find a 1.0°C El Niño shock drives a 9.55% peak increase in global wholesale food prices after two years. Scaled to the expected 2026 “very strong” event (implying a 1.65°C temperature increase), our model projects a cumulative 15.8% surge in food commodity prices, fully realised by 2028H2.