# US dollar hits three-month low as trade war sparks ‘Trumpcession’ fears, and FTSE 100 slides – as it happened

> *S&P 500 ERASES ELECTION GAIN, WIPING OUT $3.4 TRILLION IN VALUE*  
> — Joe Weisenthal (@TheStalwart) 

## US dollar hits three-month low as trade war sparks ‘Trumpcession’ fears, and FTSE 100 slides – as it happened

### 4 Mar 2025

#### Closing post
**With European stock markets closed after suffering heavy losses today, the dollar still weaker against rival currencies, and Wall Street in the red, it’s time to wrap up.**

#### Deutsche Bank warns of potential loss of the dollar's safe-haven status
**There’s a risk that Donald Trump’s decision to impose new tariffs on Canada, Mexico and China will undermine the dollar’s safe-haven status, argues George Saravelos, global head of FX research at Deutsche Bank.**

**Saravelos** told clients today that four developments this year suggest this may be happening:

> First, the declining correlation between the US dollar and risk assets which has been at the core of portfolio construction for many real money investors over the last decade.  
> Second, the unusual and simultaneous outperformance of both high and low beta currencies, with the common denominator being cheap valuations versus the US dollar.  
> Third, the stark relative underperformance of US risky asset valuations versus the rest of the world going back three decades despite highly elevated global uncertainty.  
> Fourth, the US current account deficit breaching the 4% threshold in recent months which has historically marked the limits of dollar overvaluation.

**CN Kontstantin Oldenburger**, market analyst at global law firm **Clyde & Co**, says the ominous signs of an emerging full-blown trade war are on the horizon, adding:

> “The EU and UK are waiting in trepidation, for their turn to come.  
> The mixing of politics, US domestic economics and the ongoing Ukraine conflict has coloured the US President’s decision-making process. Europe’s recent actions in support of Ukraine will likely have been viewed as a catalyst for wholesale tariffs to be considered anew on the EU and possibly the UK, even after the next round of worldwide tariff measures hit in the next few weeks.”

**Trudeau** says:

> “Now, it’s not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you’re a very smart guy, this is a very dumb thing to do. We two friends fighting is exactly what our opponents around the world want to see.” 

_Updated at 11.12 EST_

### BlackRock buys Panama Canal ports amid Trump pressure
**As well as launching trade wars and cutting support for Ukraine, Donald Trump has also been dropping heavy hints since entering the White House that he wants control of the Panama Canal.**

Last month, he accused China of controlling the 82km (51-mile) canal, apparently a reference to the fact that there is a port at either end of the canal that is operated by a Hong Kong-based company.

**CK Hutchison Holdings Ltd**, the Hong Kong-based conglomerate, has agreed to sell those ports to US investment giant **BlackRock**.

**BlackRock** is acquiring **Hutchison’s** 90% stake in Panama Ports Company, which owns and operates the ports of Balboa and Cristobal in Panama. It is also buying 80% of the Hutchison Ports group, which operates 43 ports in 23 countries, in a deal worth over $19bn.

**BlackRock’s** CEO, **Larry Fink**, says:

> These world-class ports facilitate global growth. Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment.”

**According to CK Hutchison’s co-managing director, Frank Sixt**, the deal was competed after a “rapid, discrete but competitive process”.

**Frank Sixt** insists that political pressure did not play a part (!), saying:

> I would like to stress that the Transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.

_Updated at 11.12 EST_

### UK will be hurt by trade war
**Rachel Reeves has warned Britain’s economy will be hurt by Donald Trump starting a G7 trade war even if Donald Trump exempts the UK from tariffs.**

**Reeves** explained:

> “It’s absolutely the case that even if tariffs aren’t applied to the UK, we will be affected by slowing global trade, by a slower GDP growth and by higher inflation than otherwise would be the case,” she told a conference in London hosted by the manufacturing trade group Make UK.

**Reeves** said she hoped the UK would be able to secure a trade deal with the White House to avoid the heaviest impact on British firms.

**Reeves** said:

> “I think there’s every reason to be hopeful about coming to some sort of a trade deal,” she said, adding:

> “I’m not naive. This is not going to be an easy thing to secure for reasons that we all understand. There will have to be give and take on both sides. We absolutely recognise that, but I do think there’s a big opportunity here.”

_Updated at 10.44 EST_

### S&P 500's post-election gains are wiped out
**The selloff on Wall Street is gathering pace – after half an hour’s trading, the S&P 500 is down 1.5%, losing 89 points to trade at 5,760.**

That takes the **S&P 500** share index back down to its levels just before last November’s election, meaning the Trump Bounce has been erased.

_Updated at 10.26 EST_

### US dollar hits three-month low as trade war sparks ‘Trumpcession’ fears, and FTSE 100 slides – as it happened
**The selloff on Wall Street is gathering pace – after half an hour’s trading, the S&P 500 is down 1.5%, losing 89 points to trade at 5,760.**

That takes the **S&P 500** share index back down to its levels just before last November’s election, meaning the Trump Bounce has been erased.

_Updated at 10.00 EST_

### BlackRock buys Panama Canal ports amid Trump pressure
**As well as launching trade wars and cutting support for Ukraine, Donald Trump has also been dropping heavy hints since entering the White House that he wants control of the Panama Canal.**

Last month, he accused China of controlling the 82km (51-mile) canal, apparently a reference to the fact that there is a port at either end of the canal that is operated by a Hong Kong-based company.

**CK Hutchison Holdings Ltd**, the Hong Kong-based conglomerate, has agreed to sell those ports to US investment giant **BlackRock**.

**BlackRock** is acquiring **Hutchison’s** 90% stake in Panama Ports Company, which owns and operates the ports of Balboa and Cristobal in Panama. It is also buying 80% of the Hutchison Ports group, which operates 43 ports in 23 countries, in a deal worth over $19bn.

**BlackRock’s** CEO, **Larry Fink**, says:

> These world-class ports facilitate global growth. Through our deep connectivity to organizations like Hutchison and MSC/TIL and governments around the world, we are increasingly the first call for partners seeking patient, long-term capital. We are thrilled our clients can participate in this investment.”

**According to CK Hutchison’s co-managing director, Frank Sixt**, the deal was competed after a “rapid, discrete but competitive process”.

**Frank Sixt** insists that political pressure did not play a part (!), saying:

> I would like to stress that the Transaction is purely commercial in nature and wholly unrelated to recent political news reports concerning the Panama Ports.

_Updated at 10.12 EST_
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