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The war in the Middle East and surging energy costs are set to exacerbate soaring levels of financial distress among European companies, according to Alvarez & Marsal. “The escalating conflict in the Middle East is likely acting as a multiplier for the distress we are already tracking across the European landscape,” said Chris Johnston, a managing director in the consultancy firm’s European restructuring team. Referencing the surge in oil and gas prices, Johnston said: “This directly erodes the purchasing power of the European consumer, further destabilising retail and other consumer focused sectors that are already struggling with market share erosion and high debt-servicing costs.”

 

Bloomberg

The Bank for International Settlements (BIS) has warned that a prolonged war in the Middle East that dislodges inflation expectations could result in financial-market fallout and fiscal trouble. “If the conflict persists or widens beyond current expectations, that could trigger sharper adjustments in inflation expectations and financial conditions,” said Hyun Song Shin, head of the Monetary and Economic Department at the Basel-based institution. “A spike in interest rates could put pressure on rich asset price valuations and rising financial costs for governments and the need to issue more debt could undermine fiscal sustainability.” The body, which advises the world’s central banks, urged policymakers not to rush ​reactions to the crisis-driven spike in global energy prices.

 

Bloomberg

Reuters

UK consumer confidence has fallen to its lowest level since January 2025, with S&P Global’s index slipping to 44.1 in March as the war involving Iran weighs on economic sentiment. Households are increasingly pessimistic about their finances and reluctant to make major purchases, while rising energy prices linked to the conflict risk pushing up inflation and delaying expected interest rate cuts.

 

Reuters

Reuters reports on pharma industry executives who are saying that the Middle East conflict is disrupting the flow of critical medicines, including cancer drugs and other treatments that require refrigeration, to the Gulf, forcing companies to reroute flights ​and find overland access into the region. Data indicates that over a fifth of global air cargo - the main route for critical or life-saving drugs and vaccines - is exposed to Middle East disruption.

 

Reuters

The US is lobbying the World Trade Organization to make permanent its longstanding moratorium on tariffs for digital trade, arguing that a stable, tariff-free environment is essential to support the rapid growth of the global digital economy, now worth trillions of dollars. The moratorium, in place since 1998 and renewed every two years, covers a wide range of digital activities including streaming, data transfers and online services. While it is backed by the US, EU and several other economies, opposition from countries such as India, Brazil and South Africa remains a major hurdle, with concerns focused on lost customs revenue, data sovereignty and the growing dominance of large US technology firms.

 

Bloomberg

CRH, the Ireland-based building materials group, is set to delist from the London Stock Exchange (LSE) by April 20. The decision follows its primary listing move to New York in 2023, driven by low trading volumes and high regulatory costs in the UK. CRH's board stated that the delisting is in the "best interests of CRH and its shareholders." The company, which employs 83,000 people, will also seek shareholder approval in May to cancel its remaining preference shares listed in London and Dublin.

 

Financial Times

The Daily Telegraph

The European Central Bank (ECB) has fined Nordea Finance Finland €2.26m for incorrectly reporting credit exposures. The bank misclassified guaranteed receivables over 13 quarters from 2021 to 2024, violating EU law by exceeding the 25% limit on large exposures. The ECB described the breaches as "severe," attributing them to "serious negligence" and poor internal controls. Nordea has the option to appeal the decision to the Court of Justice of the European Union. Previously, the bank has faced scrutiny for data collection issues related to sanctions on Russia.

 

YLE Uutiset

The US Securities and Exchange Commission is preparing a proposal to scrap the ​requirement for companies to report their earnings every quarter ‌and instead give them the option to share results twice-yearly, according to a report in the Wall Street Journal which added that the ​rule is expected to make quarterly reporting optional and ​not eliminate it altogether. In preparation for the proposal, regulators have been talking to officials at the major exchanges to discuss how they may need to adjust their rules. 

 

Wall Street Journal

Cyber experts warn that a “mini army” of North Korean IT operatives is increasingly using AI to pose as workers, secure jobs and earn wages at some of Europe’s biggest companies.

 

Financial Times

Close Brothers plans to cut 600 jobs across the next 18 months, or nearly 25% of its workforce. The financial services company says it is looking to reduce costs by about £25m in its current financial year, with cuts set to come through outsourcing and offshoring work, as well as decreasing its property footprint. On the job losses, chief executive Mike Morgan said: "While the impact on affected colleagues is regrettable, these actions are necessary to structurally lower our cost base, while increasing our agility and ability to serve our customers."

 

The Guardian

The Independent

The Times

UK finance minister Rachel Reeves has announced plans to allow England's metro mayors to receive a share of national tax revenues, beginning with income tax, as part of proposals to be outlined in the autumn Budget. Speaking at the Mais lecture in London, she framed the move as a significant shift of economic power away from Westminster to address regional inequality and support investment-led growth. The Treasury will also establish £2.3bn in city investment funds and allow local leaders to retain future business rates amid ongoing financial pressures on local authorities. Reeves said the reforms would represent a "permanent transfer of power and resources."

 

BBC News

The Guardian

The Independent

French rail unions have been angered by a dress code from national rail operator SNCF which advises employees on dressing with "French elegance." The 40-page guide, which SNCF has said is now withdrawn, suggested ways to enhance body shapes while in uniform, including specific clothing recommendations for different body types. The Sud Rail union condemned the guide, saying it imposed unnecessary aesthetic standards and had no professional basis. SNCF acknowledged the document was shared without approval and is investigating its distribution. "The company has no right to judge its employees' bodies," the union said.

 

The Local