The global stock market sell-off continues

Summary

Marketplace Morning Report: The Global Stock Market Sell-Off Continues
Release Date: April 4, 2025
Host: Luke Wilson (in place of Leanna Byrne)

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1. Global Stock Markets Plunge Amid U.S. Tariffs

In today's episode of the Marketplace Morning Report, host Luke Wilson opens with a stark update on the continuing global stock market sell-off. Investors worldwide are grappling with the ramifications of President Trump's newly implemented tariffs, leading to significant downturns across major Asian and European markets.

• Key Highlights:
  • Asian Markets: The Nikkei in Tokyo experienced a sharp decline, closing nearly 3% down.
  • European Markets: Major indices in London, Paris, and Frankfurt all saw downturns exceeding 1.5% this morning.

Notable Quote:

“We haven't really seen this sort of flying cat tariff and potential chaos in the global trading system in modern history. There is just so much uncertainty the markets have to navigate.”
— Janet Moy, Head of Market Analysis at RBC Brewin Dolphin in London [00:48]

2. Economic Implications of Tariffs: Insights from Janet Moy

Janet Moy delves into the broader economic implications of the U.S. tariffs, highlighting the unprecedented uncertainty they introduce into the global trading system. This volatility has heightened fears among economists regarding the potential onset of a recession, both in the United States and globally.

Notable Quote:

“There is just so much uncertainty the markets have to navigate. The problem is that this raises economists' expectation of the risk of a recession in the US or even a global recession.”
— Janet Moy [00:48]

3. Pharmaceuticals Sector Under Pressure: Eli Lilly’s Perspective

Turning to the pharmaceuticals industry, Luke Wilson discusses how, while pharmaceuticals are currently exempt from tariffs, industry leaders anticipate future impacts. David Ricks, CEO of Eli Lilly, shares his concerns about the long-term effects of tariffs on the sector.

• Key Points:
  • Pharmaceuticals initially exempt but expected to face tariffs later.
  • Potential reshoring of manufacturing to the U.S. as a response to tariffs.
  • Uncertainty about whether tariffs will lead to increased consumer prices.

Notable Quotes:

“I think the president wants to see industry reshore manufacturing into the United States. I think there's a good chance that will happen at some scale in terms of raising money for the Treasury.”
— David Ricks, CEO of Eli Lilly [01:26]

“Well, I don't know. In the case of medicine is unlikely. As I said, we've gotten a pass for now, but we have a lot of controls on the price of medicine.”
— David Ricks [01:52]

4. Corporate Shifts: BP’s Leadership Change and Strategy Reset

The episode shifts focus to the energy sector, noting that BP's shares have fallen by more than 2.5% following the announcement that Chairman Helga Lund will step down next year. This move comes in the wake of shareholder pressure and a significant strategic reset initiated by BP’s CEO last month.

5. The Future of AI Regulation: Microsoft’s Brad Smith Weighs In

In the technology sphere, Brad Smith, President of Microsoft, discusses the inevitability of regulating artificial intelligence (AI). Speaking to the BBC, Smith emphasizes the necessity of keeping humans at the helm of critical decision-making processes influenced by AI.

Notable Quote:

“We should make sure that humans not only remain in the loop, but remain the decision makers for the things that are truly consequential in people's lives.”
— Brad Smith, President of Microsoft [02:50]

6. Special Feature: Inside the UK's Thriving Used Car Auction Market

The latter half of the episode presents an immersive look into one of the UK's busiest car auctions, hosted by Liana Byrne. Filmed live at Mannheim Leeds in northern England, the segment offers a firsthand account of the bustling auction environment and insights into the robust used car market.

• Key Highlights:
  • Auction Dynamics: Approximately 250 cars were up for auction, with around 50,000 vehicles sold annually from this center.
  • Market Trends: The average selling price for used cars in the UK reached $10,500 in January, marking a 6% increase from the previous year.
  • Electric Vehicles (EVs): A surge in EVs has altered supply and demand dynamics, diminishing the presence of petrol and diesel cars at auctions and driving up prices.
  • Strategic Bidding: Regular bidders like Matt Scholes from Orth Motors employ meticulous strategies, including setting bidding ceilings to avoid overspending.

Notable Quotes:

“Ideally, we're kind of looking at the mileage, so as long as it's not too heavy on the miles, preferably under 8 years old.”
— Sonny Batt, SRH Cars and Leeds [04:28]

“Do a lot of pre work before I get here and I've managed to buy three out of six. I paid a little bit more than I would have wanted to but got to set a ceiling before you start to bid, otherwise you can just get out of hand.”
— Gwen, Auctioneer [06:06]

7. Conclusion

Luke Wilson wraps up the episode by reaffirming the strength and resilience of the used car market despite broader economic uncertainties. The segment underscores the dynamic nature of global markets and the varied responses from different sectors in navigating current challenges.

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For those who haven't tuned in, this episode of Marketplace Morning Report offers a comprehensive overview of the current economic landscape, the ripple effects of U.S. tariffs, corporate leadership changes, the future of AI regulation, and an engaging deep dive into the UK's vibrant used car market.

Transcript

[Commvault Sponsor]

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[Luke Wilson]

The global stock market sell off continues. Live from the BBC World Service, this is the Marketplace Morning Report. I'm Luke Wilson in for Leanna Byrne. Good morning everyone. Asian and European markets have fallen further this morning as investors continue to process the impact of President Trump's tariffs. The Nikkei in Tokyo closed down nearly 3% while the main indexes in London, Paris and Frankfurt are all down more than one and a half percent this morning. Janet Moy is the head of market analysis at RBC Brewin Dolphin in London.

[Janet Moy]

We haven't really seen this sort of flying cat tariff and potential chaos in the global trading system in modern history. There is just so much uncertainty the markets have to navigate. The problem is that this raises economists expectation of the risk of a recession in the US or even a global recession.

[Luke Wilson]

Janet Moy, One of the few industries exempt from tariffs is pharmaceuticals, although they are widely expected to be hit at a later date. David Ricks, the boss of pharma giant Eli Lilly, has told the BBC that the tariffs are a pivotal moment in US Economic history, which it will be hard to come back from.

[David Ricks]

I think the president wants to see industry reshore manufacturing into the United States. I think there's a good chance that will happen at some scale in terms of raising money for the Treasury. It remains to be seen. I think in this area it's a complicated analysis to say the government will collect more money when consumption of some goods go up, others go down. Consumer behavior is hard to predict.

[Luke Wilson]

Do you think tariffs are going to push up prices basically in the U.S.

[David Ricks]

Well, I don't know. In the case of medicine is unlikely. As I said, we've gotten a pass for now, but we have a lot of controls on the price of medicine. So then we have to go extract that value from our suppliers or we have to eat it ourselves and our shareholders pay for that. In the end, that will reduce the amount of R and D we can do.

[Luke Wilson]

Eli Lilly CEO David Ricks speaking to the BBC's business editor Simon Jack let's do the numbers and shares in BP are down more than 2 and a half percent this morning after the oil giant announced its chairman Helga Lund will step down next year. It comes after the company faced pressure from shareholders and the chief executive announced a fundamental reset of its strategy last month. The Microsoft boss, Brad Smith has predicted that some form of regulation of artificial intelligence is inevitable, he said humans should be in charge of decisions that have an impact on people's lives. The tech boss was speaking to the BBC. As Microsoft celebrates its 50th anniversary this.

[Brad Smith]

Year, we should make sure that humans not only remain in the loop, but remain the decision makers for the things that are truly consequential in people's lives. If you want to apply for a loan, I think it's one thing for the bank to have an AI tool that may analyze the application, but I think we want a human being to be making that decision.

[Luke Wilson]

Microsoft President Brad Smith have you ever wondered what happens to old rental cars or where your car goes at the end of the finance period? There's a good chance they end up at auction, snapped up by dealers looking for bargains. For the final part of our Tricks of the Trade series, Liana Byrne's been along to one of the UK's busiest car auctions.

[Liana Byrne]

This is what it sounds like when a car gets sold. It happens in seconds. Right here at Mannheim Leeds in the north of England. About 250 cars are going under the hammer here today, and I'm right in the thick of it.

[Ben Muster]

We roughly sell about 50,000 vehicles a year out of this one centre.

[Liana Byrne]

That's Ben Muster, centre manager. Out in the yard, it's a fresh spring morning. Cars arrive by truck and undergo a rigorous process before hitting the auction floor. Cleaned, inspected and graded. Over in the main building is Mannheim's expansive warehouse. Lined neatly across the floor are gleaming cars waiting their turn to be driven down to the double lane auction floor. Here, Sonny Batt, who runs SRH Cars and Leeds, is eyeing up German premium cars.

[Sonny Batt]

Ideally, we're kind of looking at the mileage, so as long as it's not too heavy on the miles, preferably under 8 years old.

[Liana Byrne]

And how much would something like that go for?

[Sonny Batt]

It depends on the brand. You'd be hoping to pay around about 8,9000 pounds.

[Liana Byrne]

That's about $11,000. And according to another player, British Car Auctions, the UK's used car market is going strong, with the average selling price $10,500 in January, up 6% from the year before. Sunny says we have electric vehicles to thank for that.

[Sonny Batt]

It's a supply and demand issue. There's a massive influx of electric cars, so a lot of the auctions have less and less petrol and diesel cars, which will drive the price up.

[Liana Byrne]

By petrol and diesel, Sonny means gas cars. And despite this influx of EVs into the market, Sonny says For now, he's not interested.

[Sonny Batt]

Rather stick to the petrol and diesel cars that we know and kind of love and we can fix.

[Liana Byrne]

Standing behind the auctioneer's platform, I can see the screens flashing numbers and bids coming in from online buyers who are watching a live stream of the auction. Those who are here in person bid with a quick nod of the head or a flick of the wrist. In the middle of the two lanes, Gwen is selling the essentials.

[Gwen]

Bacon sandwiches, sausage sandwiches, chicken wraps.

[Liana Byrne]

That smells brilliant.

[Gwen]

Nice bacon.

[Liana Byrne]

Can't beat it. Matt Scholes from Orht Motors is taking a break opposite Gwen's stall. He comes to Mannheim every week. He says he's always got a strategy.

[Gwen]

Do a lot of pre work before I get here and I've managed to buy three out of six. I paid a little bit more than I would have wanted to put two of them, but got to set a ceiling before you start to bid, otherwise you can just get out of hand.

[Liana Byrne]

After greeting all the regulars on the auction floor, Ben Muster gets me to go shoulder to shoulder with the other bidders.

[Ben Muster]

So we're on lot number 496. This is a Mitsubishi Shogun and it's 130,000 miles. It's got a guide price, an auction guide price of about 2,000 to 2,450.

[Liana Byrne]

Okay.

[Ben Muster]

Where do you think it's probably going to end up?

[Commvault Sponsor]

Say 2000?

[Ben Muster]

I don't. I don't think. You're a million miles away. I think that's going to probably do 17. 1800 pounds. Nobody. Nobody's putting their hand up just yet.

[Liana Byrne]

I better keep my hand down.

[Ben Muster]

We're all right. We're trained professionals. You're okay. So he's now asking for 18. The Internet splashed up there. 1900 pounds.

[Liana Byrne]

Yeah.

[Ben Muster]

So that's now gone provisional.

[Liana Byrne]

That's it, it's done.

[Ben Muster]

That's vehicles offered and out the door.

[Liana Byrne]

That wasn't too far off.

[Ben Muster]

You wasn't. I didn't mention 18 to.

[Liana Byrne]

Okay, so Ben wins this one. It's clear here at Mannheim, Leeds, the used car market remains strong and always moving. I'm the BBC's Liana Byrne for Marketplace.

[Luke Wilson]

That's all from us this morning. I'm Luke Wilson with the Marketplace morning Report from the BBC World.

[Janeli Espinal]

If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially inclined, from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of. I'm the host, Janeli Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to financially inclined Wherever you get your podcasts.