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The US central bank has slashed its expectations for economic growth this year as it eyes challenges on several fronts amid Donald Trump’s escalating trade war.

The Federal Reserve announced, as was widely expected, that it would keep its main interest rate at its current target range level of 4.25%-4.5% following the latest meeting of its Federal Open Markets Committee.

The statement that accompanied that decision showed slightly elevated expectations for inflation but also a forecast that the annual rate of economic growth this year had been cut from 2.1% to 1.7%.

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The reduction partly reflected weaker consumer spending, the Fed said, adding that could be partly explained by the threat of rising prices due to the tariff agenda.

The central bank admitted rising uncertainty over its dual mandate which covers employment as well as inflation.

At a news conference to accompany the decision, Fed chair Jay Powell said: “The economy is strong overall”, adding that labour market conditions were “solid”.

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But on the question of rising goods inflation he said: “A good part of it is coming from tariffs”, adding that it was too soon to split non-tariff and tariff-related inflation in the data.

Fed chair Jay Powell takes reporters' questions on 3 May. Pic: Federal Reserve
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Fed chair Jay Powell takes reporters’ questions. File pic: Federal Reserve

The core message was that it was too early to predict the impact overall.

Policymakers said risks had increased, with a near unanimous sentiment in saying the outlook for the year was muddled but it stopped short of directly blaming the protectionist policies being pursed by the Trump White House.

The Fed revealed its hand less than 24 hours before the Bank of England was expected to follow suit by also holding off on any fresh rate cut amid risks of surging prices due to the growing trade war uncertainty.

The Fed meeting took place against a backdrop of mounting concern among financial markets and economists that the trade war could lead the world’s largest economy into recession.

Stock market values are well down on where they started the year, with the broad-based S&P 500 losing $4trn in the space of less than a month at one stage as the tariff threats intensified.

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The dollar remains around five cents down against both the pound and euro while US government borrowing costs also remain elevated.

Stocks rebounded somewhat on the Fed’s update as it signalled no immediate pressure for a policy shift, with the statement signalling that two rate cuts remained on the cards over the remainder of 2025.

But US economists are particularly worried about the trade war involving the country’s nearest neighbours Mexico and Canada – yet to get into full swing as had been threatened due to several suspensions by the Trump administration.

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The main domestic concern is that tit-for-tat tariffs will hammer cross-border supply chains and wider trade, leaving US businesses drowning under a mountain of red tape and higher costs, the latter being widely tipped to be passed on down supply chains and ultimately hitting consumers.

Trade war hostilities between the three are set to ramp up from 2 April – a day after the EU retaliates to US steel and aluminium tariffs with duties being applied to US goods worth €26bn.

Mr Trump has already threatened to respond with 200% tariffs on EU alcohol imports including wine and spirits.

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Trump’s Scotland course will not host Open Championship because of commercial ‘challenges’

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Trump's Scotland course will not host Open Championship because of commercial 'challenges'

Donald Trump’s dreams of hosting golf’s Open Championship at his Turnberry course in Scotland will not be realised until the course is logistically and commercially viable, the game’s governing body has said.

Mark Darbon, chief executive of the R&A, told Sky News Turnberry is a “challenging” venue and, despite suggestions of diplomatic pressure from London and Washington, it has no immediate plans to schedule a championship at the Ayrshire venue.

Mr Trump has made no secret of his desire to return the Open to a course he bought in 2014, with his son Eric Trump leading efforts for it to stage a first championship since 2009.

Sources close to Mr Trump’s golf interests have told Sky News the Open would be a valuable bargaining tool in the UK’s trade negotiations with the US, and the King went as far as to mention Turnberry in the invitation for a state visit hand delivered by the prime minister last month.

Mark Darbon, chief executive of the R&A
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Mark Darbon, chief executive of the R&A

In his first broadcast interview since becoming chief executive last November, Mr Darbon said logistics and finances currently rule out a course that may have been outgrown by the demands of a modern Open.

“The area where there’s a bit of challenge is around the logistical and commercial side. The last time we were at Turnbury in 2009 we had 120,000 people there,” he said.

“These days a modern Open caters for 250,000 people-plus, and so we need the road and rail infrastructure to get our fan base there. We need hotel accommodation for the 60,000 bed nights we need to stage our championship and it’s challenging at that venue.”

Mr Darbon did not deny there was pressure to consider Turnberry, and indicated that politics, and the prospect of Mr Trump overshadowing any event, would also be a factor.

“We need to be confident that the focus will be on the sport and we need to ensure that the venue works for our requirement,” he added.

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Handout photo issued by Palestine Action of damage to Trump Turnberry, which has been vandalised by activists. Palestine Action described it as a 'direct response to the US administration's stated intent to ethnically cleanse Gaza'. Issue date: Saturday March 8, 2025. The golf course in South Ayrshire, owned by the US president, was targeted overnight, with activists painting Gaza Is Not For Sale in three-metre high letters on the lawn, and damaging the greens including the course's most prestig
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A man was charged over the vandalism of a golf course owned by Mr Trump last week. Pic: PA

Competition for Turnberry is likely to increase from larger, less remote facilities.

The R&A draws Open venues from a rota of courses, with Royal Portrush staging this year’s championship following a sellout return after almost 70 years in 2019. Mr Darbon confirmed Portmarnock near Dublin is being actively considered for the first-ever Open outside the UK.

Maximising income from the Open matters because the R&A, which governs the game everywhere save the US, uses the revenue to fund a grassroots game still enjoying a post-COVID boom.

Donald Trump playing golf at his Trump Turnberry course. Pic: PA
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Donald Trump playing golf at his Turnberry course. Pic: PA

“We work with over 140 countries around the world, and in those markets there are now more than 62 million golfers, more than ever before,” Mr Darbon said.

“Some 40-odd million are playing golf regularly on nine and 18-hole golf courses, another 20 million are playing what we would call non-traditional formats like driving ranges, adventure golf, simulator golf. So the game is actually in rude health and our job is to continue to foster that and support it over time.”

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He is optimistic too that an end may be in sight for golf’s own trade war, between the US PGA Tour and the Saudi Arabian-funded LIV Golf league, a multi-billion dollar schism in the men’s professional game that has enriched scores of players while alienating many fans.

“There’s been too much talk about cash and not enough talk about competition and courses and all the other wonderful things that underpin our sport. So we’re optimistic for some positive change on that front. We’re not a negotiating table, but our job is to try and influence those discussions,” he said.

Donald Trump playing golf at his Trump Turnberry course. Pic: PA
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Mr Trump’s ambitions to host the Open at Turnberry are still unfulfilled. Pic: PA

The Open and golf’s other major championships, including next month’s Masters, have benefitted from the dispute as the only platforms for all of the best male players, and Mr Darbon says the game retains its lucrative appeal to business & sponsors.

“I think golf is maintaining its commercial appeal and I think there are a number of things that support that,” he said.

“The game has a really rich history and heritage, the values of the sport are really strong, and brands of businesses can continue to tell really rich stories about the game of golf that links to their own products and services. On top of that, golf has a genuinely global audience.”

Among them is the world’s most powerful man, his ambitions to host the Open still unfulfilled.

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Coulthard and Humphrey-backed TV producer Whisper screens bidders

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Coulthard and Humphrey-backed TV producer Whisper screens bidders

The television production company founded by broadcaster Jake Humphrey and former racing driver David Coulthard is in talks with potential buyers about a sale.

Sky News has learnt that Whisper Group, which was established in 2010 and won a BAFTA for its coverage of the Women’s Euros in 2022, is working with advisers on a deal.

The company is said to be open to a range of options, including the sale of a majority or minority stake to either financial investors or a strategic buyer.

Corporate financiers at KPMG are orchestrating talks with potential bidders.

Whisper is already 30%-owned by Sony Pictures Television, which acquired the stake in 2020.

It replaced Channel 4’s Indie Growth Fund as an investor in the business.

A majority of the shares in Whisper are owned by its founders and management team.

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Lioness Millie Bright celebrates England's win at the Women's Euros 2022, the coverage of which was produced by Whisper. File pic: Reuters
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Lioness Millie Bright celebrates England’s win at the Women’s Euros 2022, the coverage of which was produced by Whisper. File pic: Reuters

The company is best-known for its sports productions, and is responsible for Channel 4’s Formula One coverage as well as international cricket, boxing and the Paralympics.

Whisper employs about 300 people, and has operations in London, Cardiff, Manchester and Riyadh.

Its chief executive, Sunil Patel, co-founded the producer alongside Mr Coulthard and Mr Humphrey.

It is said to be plotting further expansion in sport in the form of bigger events and rightsholders, as well as in events, where its clients include Red Bull.

Whisper is also focused on growing its presence in the US, where it currently works with Tom Brady’s Religion of Sport, and the Middle East, where it is partnered with Neom and Saudi Pro League teams.

Outside of sports rights, it has produced documentaries about Ben Stokes, the England Test cricket captain, and Sven-Goran Eriksson, the late England football manager.

It has also diversified into entertainment programming, producing the Wheel of Fortune gameshow hosted by Graham Norton.

Its most recent accounts disclosed a £4.3m pre-tax profit for the year to March 31, 2024.

“Whisper has successful diversified into factual, entertainment and events to complement the wider blend of work across its sports broadcast contracts,” it said in a statement accompanying the accounts.

“It has been another successful year for contract wins, with a series of renewals with key clients and a new range of significant projects which will help ensure visibility over the next few years.”

The sale process comes as ITV holds talks about a merger of its Studios arm with RedBird IMI-owned All3Media, one of Britain’s biggest production companies.

A combination of the two businesses could be announced during the spring, according to banking sources.

This weekend, a spokesman for Whisper declined to comment.

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WH Smith high street arm sold to Hobbycraft owner in £76m deal

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WH Smith high street arm sold to Hobbycraft owner in £76m deal

WH Smith has sold its 233-year old high street business to the owner of Hobbycraft in a £76m deal.

Sky News revealed in January how a sales process was under way for the arm, which employs roughly 5,000 people and has 480 stores.

Modella Capital won the final stage of the auction process in a run off against Alteri investors – both specialists in turning around troubled retailers.

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The deal will see the WH Smith name erased from town centres to become TGJones.

The sale allows the WH Smith business to focus fully on its lucrative travel retail arm.

That has around 1,200 stores, based mainly at airports and railway stations, in 32 countries globally and accounts for 85% of group profits.

Chief executive Carl Cowling said: “Given our rapid international growth, now is the right time for a new owner to take the High Street business forward and for the WH Smith leadership team to focus exclusively on our Travel business”.

There was no word on what the new owners may do to bolster profitability, with a question mark firmly hanging over employment and the store estate – often the subject of criticism over a perceived lack of investment.

WH Smith’s statement said: “All stores, colleagues, assets and liabilities of the High Street business will move under Modella Capital’s ownership as part of the Transaction.

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“Under this new ownership, the business will be led by Sean Toal, currently CEO of the High Street business. The High Street business will operate for a short transitional period under the WHSmith brand whilst the business rebrands as TGJones.”

The sale to Modella represents an enterprise value of £76m on a cash and debt-free basis but will see WH Smith secure an estimated £25m on a net basis after several costs associated with the sale are accounted for.

Shares fell by more than 1% at the open.

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