Barclays and Shell reveal hit from US tax reforms

Blue chips Royal Dutch Shell and Barclays have warned of a hit to their earnings from Donald Trump's US tax reforms despite hopes over a long-term boost from the overhaul.

The pair said the changes, which were signed into law on December 22 and will see corporation tax in the US slashed from 35% to 21%, will affect profits as they have to recalculate the deferred tax assets built up on their balance sheets.