Business
Bank of England expert predicts global stock market fall and warns ‘are we prepared?’
The Bank of England’s (BoE) deputy governor has warned of a fall in global stock markets, saying near-record valuations are unsustainable.
Both the UK and US stock markets are sitting near all-time highs due to investors continuing to bet on big future earnings, but Sarah Breeden said the bank expects an “adjustment at some point”.
The BoE appears concerned about the stability of financial systems if a market drop occurs in conjunction with other issues, including the Iran and Ukraine wars that are driving up inflation globally and private credit, which has grown exponentially and is provided by private firms, not banks. There are some worries that it may become a more widespread problem if the companies that have borrowed that money are unable to pay it back, which in turn could lead to shortfalls for their backers.
Ms Breeden said: “There’s a lot of risk out there and yet asset prices are at all-time highs. We expect there will be an adjustment at some point.
“The thing that really keeps me awake at night is the likelihood of a number of risks crystallising at the same time – a major macroeconomic shock, confidence in private credit goes, AI and other risky valuations readjust – what happens in that environment and are we prepared for it?”
The most recent significant market crash was in 2020 as a result of the Covid pandemic, which saw steep drops in most markets but also very swift rebounds. Since then, the US market in particular suffered drops in 2022 and 2025, the latter after Donald Trump first announced his plan to slap tariffs on trading partners around the world.
Stock market falls happen when share prices of multiple companies drop in tandem after being sold off in large amounts. There’s no specific amount a market has to drop to be termed a “crash”, though 20 per cent or more in a short period of time is usually considered one.
While a falling or even crashing stock market will not always lead to an economic decline or recession, there is a knock-on effect on both the businesses on the market and those who invest in them.
London’s major index, the FTSE 100, is up 5.2 per cent this year so far despite the impending economic hit to the UK and the rest of the world over oil prices, while across the past year it is up 24.4 per cent. Adding to the lack of absolute correlation is the globalisation of many businesses within the FTSE indices and the fact that they operate in markets outside the UK economy.
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In the US, the S&P 500 is up 3.8 per cent for the year and 32.2 per cent over a year, having hit a new all-time high earlier this week despite the Iran war. The six biggest public companies in the world – led by Nvidia, Alphabet and Apple – and 10 of the top 12, are listed in the US.
That said, impacts arise from such huge companies taking a dive in share price.
What does it mean for your money?
For those invested in the market, either through stocks and shares ISAs or pensions, their portfolios would drop in value.
In theory, that is not a problem unless assets were sold at that lower valuation point. Most experts recommend riding out market downturns or else continuing to cost-average purchase, regardless of price, instead of panic selling. When markets return to upward, those downturns are actually when the greatest returns tend to be made, when assessed over the long term. There is no definitive timeframe for when markets recover from even the deepest downturns, but historically, they always have done so. The UK government is encouraging more British people to take up retail investing to boost their long-term wealth.
The other issue is if pensions drop in value at a moment when someone is close to retirement, which would mean their pot is worth less right when they need it most. This makes it important for people to be aware of their overall financial picture, the closer they get to that point in their lives.
For those who receive dividend income from investments – firms that pay out a portion of their profits to shareholders – this could be reduced or cut off entirely if businesses decide they need to reallocate money, which could in turn see households reduce their spending.
When large numbers of people do that, it naturally has an economic knock-on impact, with lower spending meaning less income for businesses. That could then mean they decide not to hire as many people or invest in projects, meaning potentially fewer jobs on the market.
For firms on the stock markets, a falling share price could mean less cash available for reinvestment into the business and a lowered ability to borrow. If there are stock-price-linked obligations, that can create wider problems for the business and naturally, consumer confidence can double down on such issues.
Rather than stock market worries around what that directly means for people, the BoE appears to harbour concerns about wider resilience to such shocks.
“What we are watching for is: how might those prices fall? Will there be a sharp adjustment downwards? And if there is such an adjustment, how will that affect the economy? I’m not saying it will happen today, tomorrow, in 12 months’ time. It’s ensuring that if it happens the system is resilient,” Ms Breeden, the BoE’s head of financial stability, added.
“Private credit has gone from nothing to two and a half trillion dollars in the last 15 to 20 years. It hasn’t been tested at this scale with the degree of complexity and interconnections it has with the rest of the financial system so far. It’s a private credit crunch, rather than a banking-driven credit crunch, that we’re worried about.”
Business
Ganga Expressway inaugurated by PM Modi: UP’s longest expressway between Meerut & Prayagraj; check travel time, route, speed limit – top facts & images – The Times of India
Ganga Expressway, the longest expressway so far in Uttar Pradesh, was inaugurated by Prime Minister Narendra Modi on Wednesday. The 594 kilometres long Ganga expressway is a six-lane expressway that aims to reduce the travel time between Meerut and Prayagraj to just 6 hours!Uttar Pradesh has over 60% of India’s total access-controlled expressway network. Recently, Chief Secretary Manoj Kumar pointed out that of the nearly 2,900 km of such highways across the country, close to 1,200 km are located in the state.Meerut District Magistrate and Collector Vijay Kumar Singh on Tuesday said the project has generated tremendous excitement among the public. He noted that the expressway will greatly enhance connectivity to Prayagraj as well as the state capital, Lucknow.Experts say the expressway’s length is particularly significant. According to the Department for Promotion of Industry and Internal Trade, road transport remains economically efficient for freight over distances of up to about 600 km, while rail becomes more viable beyond that point. At 594 km, the Ganga Expressway falls almost exactly within this crucial range for cargo movement.
How will the Ganga Expressway cut down travel time, what districts will it cover, what will be the toll policy, and what cost has it been constructed at? We take a look:
Ganga Expressway: Top Points About UP’s Longest Expressway
Travel time: One of its most noticeable benefits will be the sharp reduction in travel time. The trip between Meerut and Prayagraj, which currently takes around 10 to 12 hours, is likely to be cut to approximately 6 to 7 hours. Access from Delhi: For travellers from the Delhi-NCR region, access will be seamless through the Delhi-Meerut Expressway, followed by a short connecting link at Bijoli to join the Ganga Expressway.
Construction cost: Developed at an estimated cost of Rs 36,230 crore, the Ganga Expressway ranks among Uttar Pradesh’s most ambitious infrastructure initiatives. The Ganga Expressway stretches from Bijoli village in Meerut to Judapur Dandu village in Prayagraj.Speed limit: The expressway has been built for speeds of up to 120 kmph. The six-lane access-controlled expressway, has been designed with the provision for expansion to eight lanes.
Route & Districts covered: The expressway will pass through 12 districts: Meerut, Hapur, Bulandshahr, Amroha, Sambhal, Badaun, Shahjahanpur, Hardoi, Unnao, Rae Bareli, Pratapgarh and Prayagraj. In doing so, it will directly influence more than 500 villages along its alignment.Interchanges & amenities: Its connectivity is further strengthened by 21 interchanges that link the corridor with existing national highways and state roads.
The project also includes major river crossings, notably a 960-metre bridge over the Ganga and a 720-metre bridge across its tributary, the Ramganga. Both structures have been engineered to suit local flood conditions.To support travellers, the expressway will also feature nine public utility complexes equipped with fuel stations, rest areas and food courts.
Emergency Landing Strip: One of the expressway’s standout features is a 3.5-km emergency landing strip in Shahjahanpur district. Already tested by the Indian Air Force, this airstrip adds a strategic defence dimension to the project, enhancing national preparedness in addition to its economic significance, according to an official statement.Integration with other expressways: Ganga Expressway will eventually be integrated with existing and even upcoming corridors. These include the Agra-Lucknow Expressway, the Farrukhabad Link Expressway, the Jewar Link Expressway, and a proposed extension that will connect Meerut to Haridwar.According to reports, plans are underway to extend the expressway by around 146 kms up to Haridwar. This extension will pass through Amroha and Bijnor and cover more than 200 villages.
Toll: The project will be operated under a toll-based public-private partnership model. Adani Enterprises and IRB Infrastructure Developers have been awarded concession rights for a period of 30 years.For toll collection, two primary toll plazas will be set up at the main entry points in Meerut and Prayagraj. The final toll charges have not yet been announced, however officials have indicated that they are likely to be in line with other expressways in Uttar Pradesh. At present, four-wheelers pay around Rs 2 to Rs 3 per kilometre.
Stocks mostly advanced in Asia on Wednesday despite losses on Wall Street, while oil prices fell after the United Arab Emirates said it would leave Organisation of the Petroleum Exporting Countries (OPEC) in a blow to the powerful oil cartel.
US futures edged higher. Markets in Japan were closed for a holiday.
Elsewhere in Asia, South Korea’s Kospi rose 0.3 per cent to 6,657.40 and the Hang Seng in Hong Kong gained 1.4 per cent to 26,029.02. The Shanghai Composite index traded 0.3 per cent higher at 4,091.01.
Australia’s S&P/ASX 200 slipped 0.3 per cent, to 8,689.50.
Taiwan’s Taiex lost 0.6 per cent, and India‘s Sensex gained 0.4 per cent.
The price of a barrel of Brent crude oil to be delivered in June fell 0.5 per cent to $110.71 early Wednesday. Brent to be delivered in July dropped 0.6 per cent to $103.74. Brent oil was around $70 per barrel before the war began in late February.
Benchmark US crude fell 0.6 per cent to $99.32 a barrel.
The UAE’s departure from Opec, due to happen on Friday, has been closely watched by oil markets. Opec accounts for roughly 40 per cent of global oil output, and the UAE is one of Opec’s largest oil producers. It has pushed back against Opec production quotas in recent years, wanting to sell more oil to the rest of the world.
“The UAE’s exit will increase (oil) output,” ING Bank strategists Warren Patterson and Ewa Manthey wrote in a research note on Wednesday. “The UAE has been increasingly frustrated over recent years by its output being constrained by Opec production quotas, which have kept it well below its potential.”
But as US-Iran negotiations for a permanent end to the Iran war stalled and the Strait of Hormuz, where roughly one fifth of the world’s oil passed through before the war, was still largely closed, short term impacts on oil prices will still depend mainly on prospects for reopening the waterway, analysts said.
The UAE was the third largest oil producer within Opec before the Iran war. ING said its departure “will reduce Opec’s effectiveness in managing and influencing the global oil market through supply measures.”
Investors are also awaiting more updates on US-Iran peace talks, although limited progress has been made. Iran has offered to reopen the Strait of Hormuz if the United States lifts its blockade on its ports. So far, the US appears to be ruling out a deal that excludes the Islamic Republic’s nuclear programme.
The Federal Reserve is expected to announce a decision on interest rates later Wednesday.
On Tuesday, Wall Street retreated from its recent record highs. The benchmark S&P 500 fell 0.5 per cent from its latest all-time high to 7,138.80. The Dow Jones Industrial Average edged down 0.1 per cent to 49,141.93, and the technology-heavy Nasdaq composite dropped 0.9 per cent to 24,663.80.
Artificial intelligence-related stocks led the losses. Chip company Broadcom lost 4.4 per cent, Nvidia fell 1.6 per cent and Micron Technology lost 3.9 per cent. Alphabet, Amazon, Microsoft and Meta Platforms are reporting quarterly results on Wednesday.
In other dealings early Wednesday the US dollar rose slightly to 159.63 Japanese yen from 159.62 yen. The euro was trading at $1.1708, down from $1.1712.
The yield on the US 10-year Treasury remained at 4.35 per cent.
New Delhi: Maruti Suzuki had a record year in 2025-26 in terms of revenue and sales, but rising costs took a bite out of profits. The automaker posted consolidated revenue of over Rs 1.8 lakh crore, up 19.9% from the previous year, with total sales of 24.2 lakh vehicles. Net profit, however, barely moved – rising 1.2% to Rs 14,680 crore – as higher material, employee and depreciation costs ate into margins.The March quarter told a similar story: Revenue jumped 28.6% to Rs 52,462 crore, but net profit slipped 6.4% to Rs 3,659 crore.R C Bhargava, chairman, Maruti Suzuki India, said the auto industry is back in a growth phase, helped by stronger consumer demand and govt support, including lower taxes on small cars. He said Maruti expects to roll out about 2.5 lakh more vehicles this year as supply bottlenecks ease and new capacity comes online. The bigger constraint right now, he said, is not whether people want to buy cars but how many the company can actually make. Maruti is adding new production lines that will bring roughly 5 lakh additional units of annual capacity this year.
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Ganga Expressway inaugurated by PM Modi: UP’s longest expressway between Meerut & Prayagraj; check travel time, route, speed limit – top facts & images – The Times of India
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