Sir Jim Ratcliffe, the co-owner of Manchester United and head of Ineos, one of Europe’s largest chemical producers, has staged an “11th-hour intervention” in an effort to “save” the chemical industry.

Sir Jim has called on European legislators to reduce price pressures on chemical businesses, or there “won’t be a chemical industry left to save”.

“There’s, in my view, not a great deal of time left before we see a catastrophic decline in the chemical industry in Europe”, he said.

The “biggest problem” facing businesses is gas and electricity costs, with the EU needing to be “more reactive” on tariffs to protect competition, Sir Jim added.

Prices should be eased on chemical companies by reducing taxes, regulatory burdens, and bringing back free polluting permits, the Ineos chairman and chief executive said.

It comes as his company, Europe’s biggest producer of some chemicals and one of the world’s largest chemical firms, announced the loss of 60 jobs at its acetyls factory in Hull earlier this week.

Cheap imports from China were said to be behind the closure, as international competition facing lower costs has hit the sector.

What could happen?

Now is a “moment of reckoning” for Europe’s chemicals industry, which is “at a tipping point and can only be saved through urgent action”, Sir Jim said.

European chemical sector output declined significantly due to reduced price competitiveness from high energy and regulatory costs, according to research funded by Ineos and carried out by economic advisory firm Oxford Economics.

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The report said the continent’s policymakers face a “critical” decision between acting now to safeguard “this vital strategic industry or risk its irreversible decline”.

As many as 1.2 million people are directly employed by chemical businesses, with millions more supported in the supply chain and through staff spending wages, the Oxford Economics report read.

Average investment by European chemical firms was half that of US counterparts (1.5%, compared to 3%), a trend which is projected to continue, the report added.

The Bank of England sees trouble ahead for global financial markets if investors U-turn on the prospects for artificial intelligence (AI) ahead.

The Bank‘s Financial Policy Committee said in its latest update on the state of the financial system that there was also a risk of a market correction through intensifying worries about US central bank independence.

“The risk of a sharp market correction has increased,” it warned, while adding that the risk of “spillovers” to these shores from such a shock was “material”.

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Fears have been growing that the AI-driven stock market rally in the United States is unsustainable, and there are signs that a growing number of investors are rushing to hedge against any correction.

This was seen early on Wednesday when the spot gold price surpassed the $4,000 per ounce level for the first time.

Analysts point to upward pressure from a global economic slowdown driven by the US trade war, the continuing US government shutdown and worries about the sustainability of US government debt.

The political crisis in France has also been cited as a reason for recent gold shifts.

Money has also left the US dollar since Donald Trump moved to place his supporters at the heart of the US central bank, repeatedly threatening to fire its chair for failing to cut interest rates to support the economy.

Jay Powell’s term at the Federal Reserve ends next spring but the White House, while moving to nominate his replacement, has already shifted the voting power and is looking to fire one rate-setter, Lisa Cook, for alleged mortgage fraud.

She is fighting that move in the courts.

Financial markets fear that monetary policy will no longer be independent of the federal government.

“A sudden or significant change in perceptions of Federal Reserve credibility could result in a sharp repricing of US dollar assets, including in US sovereign debt markets, with the potential for increased volatility, risk premia and global spillovers,” the Bank of England said.

British government borrowing costs are closely correlated with US Treasury yields and both are currently elevated, near multi-year highs in some cases.

It’s presenting Chancellor Rachel Reeves with a headache as she prepares the ground for November’s budget, with the higher yields reflecting investor concerns over high borrowing and debt levels.

On AI, the Bank said that 30% of the US S&P 500’s valuation was made up by the five largest companies, the greatest concentration in 50 years.

Share valuations based on past earnings were the most stretched since the dotcom bubble 25 years ago, though looked less so based on investors’ expectations for future profits.

A recent report from the Massachusetts Institute of Technology found that 95% of businesses that had integrated AI into their operations had yet to see any return on their investment.

“This, when combined with increasing concentration within market indices, leaves markets particularly exposed should expectations around the impact of AI become less optimistic,” the statement said.

An extraordinary milestone was achieved overnight for the price of gold.

The spot gold price topped $4,000 an ounce for the first time on record – and futures data suggests no let up in its upwards momentum for the rest of 2025.

It was trading at $4,035 early on Wednesday morning.

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It has risen steadily since Trump 2.0 began in January, when it stood at a level around $2,600.

Sky News was quick to report on the early reasons for a spike in the price when heavy outflows were witnessed at the Bank of England.

Gold has traditionally been seen as a safe haven for investors’ money in tough times.

There has been plenty to worry about this year – not all of it down to Donald Trump.

Analysts say the surge during 2025 can be partly explained as a hedge against the US trade war and the resulting slowdown in the global economy, which has hit demand for many traditional growth-linked stocks and the dollar.

Wider economic and geopolitical uncertainty, such as the tensions in the Middle East and concerns about the sustainability of US government debt levels, have also been at play.

Over this week, the political crisis in France and the implications of the continuing US government shutdown have been driving forces.

But there is one other, crucial, factor that has entered the equation, particularly since the end of the summer.

Many analysts say that gold has become a collective hedge against the possible implosion of the AI-driven boom for technology stocks in the US.

Despite a few wobbles, there have been almost endless headlines around record values for such shares, with most investment seen as a big bet on the future rather than current earnings.

Around 35% of the market capitalisation of the S&P 500 Index trades at more than 10 times sales, according to investment firm GQG.

AI leaders such as Nvidia and companies investing big in their capabilities see huge rewards ahead in terms of both productivity and profits.

But a recent report from the Massachusetts Institute of Technology found that 95% of businesses that had integrated AI into their operations had yet to see any return on their investment.

Ahmad Assiri, research strategist at the spread betting provider Pepperstone, said gold’s $4,000 level would test appetite but the outlook remained positive for now, given all the global risks still at play.

“Selling gold at this stage has become a high-risk endeavour for one simple reason, conviction.

“Institutions, central banks and retail investors alike now treat dips as a buying opportunity rather than a sign of exhaustion. One only needs to recall the $3,000 level just six months ago, reached amid the tariff headlines, to understand how sentiment has shifted.

“This collective behaviour has created a self-reinforcing cycle where every pause in momentum is met with renewed buying.

“Gold has evolved from a traditional hedge during uncertainty into what could be described as a conviction trade, an asset whose value transcends price, reflecting deeper doubts about policy credibility and the erratic course of fiscal decision-making.”

It all suggests there is good reason for momentum behind this gold rush and that more stock market investors could soon be running for them there hills.