Shares in UK building firms are also under heavy pressure, a clear sign that fears of a no-deal Brexit are rising.

Persimmon (-5.6%), Berkeley Group (-4.2%), Barratt (-4.1%) and Taylor Wimpey (-4%) are all among the top fallers on the FTSE 100.

EasyJet, which is also vulnerable to an economic shock, are down 6%.

Other companies heavily exposed to the UK economy are also under the cosh - supermarket chain Sainsbury’s has lost 4%, and Royal Bank of Scotland are down 3%.

The barrage of reports that Theresa May is losing support are obviously prompting traders to hit the sell button.

The pound is coming under renewed pressure, hitting a new four-month low against the US dollar.

Sterling fell as low as $1.2625, its lowest point since the 4th of January. It’s also down further against the euro, at €1.132.

Traders are reacting to a flurry of reports that some cabinet ministers are plotting to force Theresa May to step down, rather than allowing her to bring her Brexit vote to parliament next month.

The Evening Standard says plotting is underway with relish (we mentioned earlier that several ministers were late for PMQs).

Cabinet ministers were this afternoon discussing sending a delegation to tell Theresa May she should resign after botching her “last chance” at a Brexit deal.

At least four ministers were said to be in talks about calling time on the Prime Minister after her attempt to get cross-party backing for a new plan hit a wall of opposition.

Environment Secretary Michael Gove gave an apparent hint that a big Commons vote on the Withdrawal Agreement Bill, due in the week of June 3, should be pulled.

Sources said several Cabinet ministers agreed with him that the vital Bill should be kept back for a new Tory leader to manage.

My colleague Heather Stewart has also heard that “something’s up”, with Scottish secretary David Mundell planning to have a little chat with the PM later.

In another blow to Huawei, two of Britain’s mobile operators have decided not to offer its handsets to customers joining their new 5G networks.

EE announced this morning that it will launched the UK’s first ultra-fast 5G network later this month, in Belfast, Birmingham, Cardiff, Edinburgh, London, and Manchester.

It had planned to offer Huawei handsets, but has temporarily suspended that plan - following America’s ban on the company dealing with US companies. That ban could prevent Huawei updating phones running Google’s Android operating system.

Steve Ranger of technology site ZDNet has the details:

EE CEO Marc Allera said EE had put the Huawei 5G devices “on pause” until it has more information and confidence that the handsets would be supported for the lifetime of the devices.

But the vendor’s equipment is still in EE core network; the UK government is currently deciding whether Huawei kit should be allowed in the nation’s 5G networks.

Vodafone as also decided to suspend Huawei from its range for 5G handsets, with a launch planned for this summer.

Huawei has confirmed that ARM has suspended work with it, and blamed “politically motivated” decisions -- namely America’s decision to blacklist it last week.

A spokesperson for the Chinese tech firm says:

“We value our close relationships with our partners, but recognize the pressure some of them are under, as a result of politically motivated decisions,

We are confident this regrettable situation can be resolved and our priority remains to continue to deliver world-class technology and products to our customers around the world.”

The crisis facing Huawei has deepened today, as British chipmaker ARM suspended business with the Chinese company.

ARM took the move after America put Huawei on its “banned entity” list, which forbids US companies to supply it with technology.

ARM - one of the success stories of British technology in recent decades -- reportedly believes it is affected by the US ban as some of its processor designs were developed in California and Texas.

The BBC, which broke the story, says the ban could present Huawei with “insurmountable” problems. That’s because ARM’s designs are widely used, and licensed by other semiconductor providers.

An internal memo has told ARM employees to halt “all active contracts, support entitlements, and any pending engagements” with Huawei and its subsidiaries.

So potentially, Huawei could be unable to use ARM-based chips in its smartphones, or network equipment.

The sight of Theresa May hanging onto her premiership by her fingernails is hurting sterling, says Fawad Razaqzada, analyst at foreign exchange firm Forex.com.

It looks like the Conservatives have had enough of their Prime Minister, as calls grow ever louder from her own party to quit. Although Mrs May looks dejected, she will not bow out without a fight. She still fully intends to put her Withdrawal Agreement Bill to a vote in the Commons in the week beginning June 3 for one last time.

This time, she has promised to offer Parliament a choice on customs arrangements and a vote on a second referendum, if they pass her withdrawal agreement bill. Essentially, the deal is very similar to the previous three that have already been rejected and offers nothing significant to appease hard line Brexiteers.

John Goldie, FX Dealer at Argentex, fears that the pound will suffer more volatility, as a no-deal Brexit becomes a bigger risk:

“Historically, we are at significantly low levels and have been since the Referendum. In the short term risks remain for the pound and are unlikely to go away anytime soon.

The withdrawal agreement will go back to the Commons at the start of next month – coincidentally the same week Donald Trump is in town – and more imminently we have the EU elections which it seems like the Brexit party are going to dominate in. The risk of No Deal was at its highest just before Christmas where the low was cemented around 1.25. This is the closest we have been to that since the turn of the year.”

The pound has continued to slide on the foreign exchange markets, as Brexit uncertainty bubbles away.

Sterling continues its record-breaking losing run against the euro, down half a eurocent at €1.1320. That’s a new three-month low, and the 13th daily fall in a row - the worst since the euro was created 20 years ago.

The pound has also fallen further against the US dollar, down half a cent at $1.265.

Traders are reacting to the looming prospect that the government’s Brexit deal is rejected for the 4th time by parliament soon. Theresa May has just faced MPs at Prime Minister’s Questions, with little sign of support.

Several Brexit-supporting cabinet ministers were late for PMQs, as plotting reaches fever-pitch.

Greybull Capital has insisted that Brexit uncertainty, not mismanagement, caused British Steel’s demise.

A spokesperson says:

“Having rescued the business from closure over three years ago, we have worked hard to bring this important company back on its feet. Since 2016 we have arranged a financing package of more than £500 million, appointed a new and talented management team, helped the business open up new markets and reduce costs whilst addressing long-term underinvestment.

“The turnaround of British Steel was always going to be a challenge, and yet the business overcame many difficulties, and until recently looked set for renewed prosperity.

That “until recently” probably refers to the shortfall of EU carbon credits to cover its emissions.

The statement continues to blame political instability:

“The Workforce, the Trade Unions and the Management team, have worked closely together in their determination to strengthen the business, however, the additional blows dealt by Brexit-related issues have proven insurmountable.

We are grateful to all those who supported British Steel on the attempted journey to resurrect this vital part of British industry. We are now focused on assisting all involved as best we can through this process.”

Rebecca Long Bailey MP, Labour’s Shadow Business Secretary, says the solution to the British Steel collapse is to nationalise it.

Long Bailey says:

“This is absolutely devastating news for the thousands of workers, their families and the communities in Scunthorpe and Teesside and those throughout the supply chain.

“The Tories’ legacy will once again be industrial decline whilst they endlessly squabble over the European Union.

“The Government must act quickly to save this strategically important industry and the livelihoods and communities of those who work in it, by bringing British Steel into public ownership.’’

Breaking: British Steel has collapsed, after failing to agree a £30m rescue funds from the UK government.

EY has been appointed as administrators for the company, which employs around 5,000 workers and runs a major blast furnace in Scunthorpe.

Business secretary, Greg Clark has just confirmed that an application by the directors of British Steel to enter an insolvency process has just been granted in the courts.

This means that the Insolvency Service will now conduct a compulsory liquidation. EY has been lined up to carry out the administration.

Clark says it would have been ‘unlawful’ to provide fresh funds to British Steel:

“The government has worked tirelessly with British Steel, its owner Greybull Capital, and lenders to explore all potential options to secure a solution for British Steel.

“The Government can only act within the law, which requires any financial support to a steel company to be on a commercial basis. I have been advised that it would be unlawful to provide a guarantee or loan on the terms of any proposals that the company or any other party has made.”

Here’s our latest news story on the crisis:

The long slowdown in UK house price inflation ended last month.

The average price of a home rose by 1.4% in the 12 months to March, new ONS figures show. That’s up from 1% in February.

However, prices in London continued to fall -- dropping by 1.9% in the last 12 months.

They fell 2.7% year-on-year in February, so the slide may be bottoming out.

The message from today’s inflation report is clear -- consider changing your energy provider now!

Peter Earl, head of energy at comparethemarket.com, says households on standard energy tariffs have suffered “brutal” increases since Ofgem lifted the price cap three months ago.

The new price cap level that came into force on 1^st of April saw those customers face an average annual price rise of £117, a hefty 10% increase, which all of the Big Six energy companies were quick to implement. Rather than preventing energy companies from repeatedly upping the cost of energy, the price cap looks to have done the opposite. Many customers have already switched to a more competitive fixed price tariff but, for the millions that remain, we strongly recommend shopping around to ensure they are on the best deal possible as this will help to minimise their household bill inflation.”

Newsflash: The cost of living in the UK jumped last month, back over the official target.

Consumer prices jumped by 2.1% in April, compared to a year ago, up from 1.9% in March, the Office for National Statistics says.

This is partly driven by rising electricity and gas bills, after the cap on energy costs was lifted earlier this year (sending utility firms scrambling to hike their bills).

Air fares also surged, by over 26%, as airlines took advantage of demand for flights over Easter.

The Office for National Statistics says:

• Rising energy prices and air fares, which were influenced by the timing of Easter, produced the largest upward contributions to change in the rate between March and April 2019.
• The largest, offsetting, downward contribution came from across a range of recreational and cultural items, which included computer games and package holidays.

Sterling is taking a pounding this morning, as Theresa May’s latest attempt to get her Brexit deal through parliament flounders.

The pound has hit a four-month low against the US dollar, falling to $1.2662.

Against the euro, it’s fallen for the 13th day in a row to a three-month trough, around €1.136. That’s a new record losing streak against the single currency.

The PM’s new Brexit offer, pitched last night, has already been rejected by opposition MPs and many on her own side. It’s extremely hard to see how the deal could pass, and how May could cling onto the keys to Downing Street if it is rejected.

One government minister has just suggested that the prime minister might not survive until Monday!

A leadership contest could easily be won by a Brexiteer (Boris Johnson is the front-runner, with Dominic Raab also in the pack).

Jim Reid of Deutsche Bank explains why this is hurting sterling:

Any more negative responses to the new proposed deal and Prime Minister May could resign as soon as this week and attention will shift to the likely Conservative leader contest.

That will probably yield a hard-Brexit supporting PM, which in turn will incrementally raise the odds of a hard Brexit.

Breaking: Beijing has hit back against the threat of more Chinese companies being blacklisted in the US.

Foreign ministry spokesman Lu Kang has told reporters that Beijing opposes America using its powers to “smear” Chinese firms.

He’s calling on the US to provide a fair and non-discriminatory environment for Chinese firms.

While China seeks fresh talks, America is pressing on with its crackdown on Chinese firms.

According to the New York Times, the US is considering banning Chinese surveillance kit-maker Hikvision from buying US components. A similar ban was slapped on Huawei last week, in a dramatic escalation of the spat between the two sides.

From Beijing, my colleague Lily Kuo reports:

The report has sent the company’s shares down, even as Hikvision said it received no notice of the potential blacklisting and said its operations in Xinjiang had never been “inappropriate”.

China has come under increasing international scrutiny over mounting evidence of the mass surveillance and detentions of millions of Muslim minorities in Xinjiang.

Adding Hikvision to the US trade blacklist would add to tensions between China and the US, which have been locked in a protracted tariff war for most of the last year. It also raises concerns that the world’s two largest economies are on the edge of a full-blown tech cold war as the US moves to restrict Chinese technology.

China is calling on Washington to resume trade talks, as the dispute between the two major economic powers rumbles on.

Chinese Ambassador to the United States Cui Tiankai said last night that Beijing hadn’t slammed the door, despite the clampdown on Huawei.

Cui told Fox News:

“China remains ready to continue our talks with our American colleagues to reach a conclusion. Our door is still open.”

But... Cui wouldn’t take the blame for the breakdown in talks this month, which let to another painful round of tit-for-tat tariffs being imposed.

Instead, he firmly blamed the White House:

“It’s quite clear it is the U.S. side that more than once changed its mind overnight and broke the tentative deal already reached.”

“So we are still committed to whatever we agree to do, but it is the U.S. side that changed its mind so often.”

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Today we learn whether the cost of living in the UK accelerated last month, as Easter price hikes hit customers in the pocket.

Economists predict that UK inflation jumped to 2.2% in April, up from 1.9% in March, with higher energy bills also pushing consumer prices higher. That would put CPI back over the Bank of England’s target of 2%.

In normal times, higher inflation would lead to an interest rate rise. But these are abnormal times, so the Brexit crisis means the BoE won’t be rushing to raise interest rates soon.

We’re also expecting the latest public finances to show Britain borrowed around £5bn to balance the books in April. That would be a significant improvement on a year ago, when the monthly deficit came in at £7.8bn.

We’ll also be watching the British Steel crisis, as the company wobbles on the brink of administration after talks to secure an emergency £30m loan from the government stalled.

On the corporate front, Royal Mail and Marks & Spencer have both just ported sharp falls in profits (more on that shortly). Energy firm SSE, engineering group Babcock and Pets at Home are also reporting results.

Plus, central bankers are gathering in Frankfurt for a farewell conference for outgoing chief economist Peter Praet.

The agenda

• 8.30am BST: ECB chief Mario Draghi speaks in Frankfurt
• 9.30am BST: UK inflation figures for April
• 9.30am BST: UK house prices for March
• 9.30am BST: UK public finances for April
• 10.30am BST:ECB chief economist Peter Praet speech in Frankfurt