Tuesday 09 June 2026 6:26 am | Updated: Tuesday 09 June 2026 4:41 pm

As it happened: FTSE 100 and Wall Street hit by stock sell-off; CBI cuts UK GDP

Keanu Reeves at a press conference with journalists, wearing a tailored suit and engaging with the media in a professional... — Reeves faces a growth downgrade from the CBI. (Image: PA)

Welcome back to the City AM liveblog.

Rachel Reeves is staring down another bruising growth downgrade this morning after the Confederation of British Industry (CBI) slashed the UK’s GDP forecast to 1.1 per cent for the year.

The figure is a drop from 1.4 per cent last year and below the previous consensus of 1.3 per cent. For 2027, the figure faced an even more drastic cut to 0.9 per cent from 1.5 per cent.

Louise Hellem, chief economist at the CBI, said: “What’s happening around the world is compounding the UK’s low-growth story.

“We saw weak momentum throughout 2025, but if it weren’t for the latest global shocks, we could be having a much more positive conversation about the economy today. Last year it was tariffs and this year it’s the conflict in the Middle East.”

The US-Iran war reached its 100th day on Sunday, with little signs of a formal peace agreement, despite Donald Trump insisting one was “very close”.

It has kept the price of oil elevated, handing a blow to global economies which are left to deal with the inflationary consequences.

Trump said on Tuesday that the US is “in the final throes of what will be a very, very good deal that will not allow in any way, shape, or form nuclear weapons, etcetera”.

“And the Strait [of Hormuz] will open up right away. It will open up immediately upon signing, which could be in two or three days,” he added.

The halting of traffic through the strait – which is responsible for around a fifth of the world’s oil supply – has been a key driver in fanning the flames of inflation and crippling economies across the globe.

We’ll be bringing you the latest reaction to this and more.