There are fears recession could be on the way for the UK after the economy shrank in January. More on this and the latest business news in today's business brief.
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00:00Hello, and welcome to the latest Business Bulletin on Friday the 14th of March.
00:04First, a big blow for Chancellor Rachel Reeves.
00:07Britain's economy shrunk in January following a sharp fall in the manufacturing sector.
00:11The ONS said the economy contracted by 0.1%,
00:15which was behind expert predictions and down from a 0.4% rise in December.
00:20Most economists had forecast GDP to rise in the first month of the year.
00:24The Tories have branded the Labour government a growth killer,
00:27while Rachel Reeves has blamed a changing world.
00:30On that front, trade tensions between the US and its allies probably aren't going to help things.
00:35US President Donald Trump has threatened a 200% tariff on any alcohol coming into the US from the European Union.
00:42It's only the latest development in escalating trade tensions.
00:46This particular threat was a response to the EU's plans for a 50% tax on imports of US whiskey,
00:52which in itself was part of the EU's retaliation package to Trump's tariffs on European metals.
00:58Meanwhile, on the same topic, the EU's top diplomat, the Estonian Kaja Kallas,
01:03has said on TV that China is laughing at the US for its recent behaviour.
01:07And in addition to that, Trump has again suggested Canada would be better off as a US state.
01:13Investors seem to be spooked by Trump's tariffs and are possibly pivoting more towards Europe.
01:19Finally, back in the UK, a long-awaited report on the future of the Grangemouth refinery site is expected to be published next week.
01:26Project Willow, which is being produced jointly with the UK government, was due to be published at the end of last month.
01:32The report's looking at potential future uses for the site, which would keep jobs in the area.
01:37The refinery is set to close in the coming months with 400 roles at risk.
01:42That's all for today. More next week.