{"id":183292,"date":"2025-11-16T07:31:18","date_gmt":"2025-11-16T07:31:18","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/183292\/"},"modified":"2025-11-16T07:31:18","modified_gmt":"2025-11-16T07:31:18","slug":"budget-shambles-and-a-global-ai-wobble-wipes-27billion-off-the-value-of-ftse-100","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/183292\/","title":{"rendered":"Budget shambles and a global AI ‘wobble’ wipes \u00a327billion off the value of FTSE 100"},"content":{"rendered":"

By JOHN-PAUL FORD ROJAS, DEPUTY BUSINESS EDITOR<\/a> <\/a> <\/p>\n

Published: 19:02 EST, 14 November 2025 | Updated: 20:15 EST, 14 November 2025 <\/p>\n

The FTSE<\/a> 100 took a \u00a327billion hit yesterday as markets were battered by fear and confusion over the Budget<\/a> and a wobble in artificial intelligence<\/a> stocks.<\/p>\n

London<\/a>\u2019s blue-chip share index closed 1.1pc, or 109 points lower at 9698 points.<\/p>\n

The FTSE was caught up in a global sell-off which began on Wall Street a day earlier when New York stock markets slumped.<\/p>\n

And the uncertainty caused by Labour\u2019s income tax U-turn added to the mayhem.<\/p>\n

Heavyweight financial firms were among the worst hit with NatWest falling nearly 4 per cent and Barclays<\/a> by more than 3 per cent.<\/p>\n

Banks are among firms worried that they may be targeted for a tax raid in the Chancellor\u2019s Budget \u2013 although recent reports, prior to the latest U-turn, suggested they would be spared.<\/p>\n

Rachel Reeves is also said to be eyeing up the gambling sector \u2013 a prospect which might be thought even more tempting now that an income tax grab has been ruled out.<\/p>\n

Ladbrokes owner Entain fell nearly 4 per cent and William Hill owner Evoke sank 5 per cent.<\/p>\n

\"Banks <\/p>\n

Banks are among firms worried that they may be targeted for a tax raid in the Chancellor\u2019s Budget \u2013 although recent reports, prior to the latest U-turn, suggested they would be spared<\/p>\n

Dan Coatsworth, head of markets at AJ Bell, said: \u2018Wall Street gloom has spread across European and Asian markets like a contagious disease.<\/p>\n

\u2018Markets are down across the board as investors fret about cracks in the narrative that\u2019s driven the mother of all tech rallies over the past few years.<\/p>\n

\u2018Investors are worried about rich equity valuations and how billions of dollars are being spent on AI just at a time when the jobs market is looking fragile.<\/p>\n

\u2018Investors in the UK have their own issues to process, let alone whether there is a potential AI bubble waiting to burst.<\/p>\n

\u2018Speculation that Chancellor Rachel Reeves has ripped up part of her Budget plan only days before the big event has spooked the bond market.\u2019<\/p>\n

Elsewhere, the wider global sell-off saw Bitcoin come under pressure, falling below $100,000 on Thursday and yesterday tumbling further to less than $95,000, the lowest since May.<\/p>\n

The initial slump in America was blamed on worries about US interest rates as well as concerns over an AI \u2018bubble\u2019 in tech company shares.<\/p>\n

It was followed by steep falls overnight in Asian markets, with Japan\u2019s Nikkei and Hong Kong\u2019s Hang Seng down by nearly 2 per cent.<\/p>\n

UK and European stocks later joined in the selling but London\u2019s slump was the most pronounced \u2013 with the FTSE at one stage down by 2pc or nearly 200 points.<\/p>\n

It later fought back but yesterday\u2019s decline was still the worst one day fall since April \u2013 a period when markets were gripped by fears over Donald Trump\u2019s tariff plans.<\/p>\n

The fall meant that \u00a327billion was wiped off the combined value of the UK\u2019s 100 biggest listed firms in a single day.<\/p>\n

\"The <\/p>\n

The initial slump in America was blamed on worries about US interest rates as well as concerns over an AI \u2018bubble\u2019 in tech company shares (file photo)<\/p>\n

US stocks opened sharply lower again yesterday though later clawed back losses.<\/p>\n

It comes after sceptics began to question optimism over AI companies which has helped power Wall Street to a series of record highs.<\/p>\n

Chip maker Nvidia, the world\u2019s most valuable company, has been valued at more than $5 trillion (\u00a33.8 trillion) at its highest point. Its shares fell 4 per cent on Thursday but were up again yesterday.<\/p>\n

Critics fear the AI surge could amount to a bubble, creating damaging consequences should it burst.<\/p>\n

The Bank of England last month warned that valuations \u2018appear stretched\u2019 and drew comparisons with the past mania for \u2018dotcom\u2019 stocks which went sour 25 years.<\/p>\n

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\n Budget shambles and a global AI ‘wobble’ wipes \u00a327billion off the value of FTSE 100<\/p>\n