1 hour ago Britain’s biggest pawnbroker H&T snapped up by US firm for £297m; Goldman Sachs lifts UK and eurozone growth forecasts – business live

China issues warning to UK over terms of US trade deal, saying it is a ‘basic principle’ that bilateral agreements should not target other nationsHere’s our full story on the Co-op saying that that stock availability in its stores will not improve until this weekend, as it struggles to recover from a cyber-attack two weeks ago.And our full take on Burberry’s planned 1,700 job cuts. Continue reading...

Economics

26 h. ago Thames Water CEO says crisis ‘decades in the making’; Goldman Sachs cuts US recession odds – business live

Rolling coverage of the latest economic and financial newsUK pub chain Marston’s has swung back to a profit in the first half of its financial year, thanks to a busy Christmas and Mother’s Day, as well as a tighter focus on costs.The pub owner reported a pre-tax profit of £19m in the 26 weeks ended on 29 March, compared with a loss of £0.2m in the comparable period in 2024.Their revised forecast reflects a combination of a lower effective tariff rate and the recent easing of financial conditions.We raise our S&P 500 return and earnings forecasts to incorporate lower tariff rates, better economic growth, and less recession risk than we previously expected. Our new 3- and 12-month returns forecasts are +1% and +11%, indicating levels of 5900 and 6500 (previously 5700 and 6200). Continue reading...

Economics

28 h. ago Goldman Sachs cuts US recession odds on tariff optimism; UK wage growth slows as jobs market cools – business live

Rolling coverage of the latest economic and financial newsUK pub chain Marston’s has swung back to a profit in the first half of its financial year, thanks to a busy Christmas and Mother’s Day, as well as a tighter focus on costs.The pub owner reported a pre-tax profit of £19m in the 26 weeks ended on 29 March, compared with a loss of £0.2m in the comparable period in 2024.Their revised forecast reflects a combination of a lower effective tariff rate and the recent easing of financial conditions.We raise our S&P 500 return and earnings forecasts to incorporate lower tariff rates, better economic growth, and less recession risk than we previously expected. Our new 3- and 12-month returns forecasts are +1% and +11%, indicating levels of 5900 and 6500 (previously 5700 and 6200). Continue reading...

Economics

6 d. ago Tory extinction ‘can’t be ruled out’, says Jeremy Hunt – UK politics live

Former chancellor says he does not expect the Conservatives to die out as a party but he says it is a possibilityKeir Starmer starts by saying rising tensions between India and Pakistan will be of serious concern for many across Britain. The government is enouraging de-escalation, he says.He says tomorrow the nation will fall silent to commemorate VE Day. The armed forces protect our freedom, he says. Continue reading...

Politics

7 d. ago UK and eurozone construction declines slow; European markets fall ahead of Fed rate decision – business live

People’s Bank of China cuts interest rates due to global uncertainty and ‘trade tensions’Matthew Pointon, senior commercial real estate economist at Capital Economics, said:The commercial balance was at its lowest since the height of the Covid lockdowns in May 2020. Early signs of a recovery in construction activity in late 2024 have therefore been snuffed out. Elevated interest rates will be partly responsible, but uncertainty caused by the US tariff announcements may also be weighing on activity.Admittedly, UK property is relatively well insulated from the impact, and some sectors may even benefit. Construction costs may also ease if materials that had been destined for the US are rerouted to the UK. But the rise in overall economic uncertainty may cause some developers to delay plans until the outlook becomes clearer. Indeed, the new orders balance saw a small fall to 44.0, from 44.2 in March. Continue reading...

Society

8 d. ago UK business activity falls for the first time since October 2023 as trade tensions hurt economy, and car sales slide – business live

Rolling coverage of the latest economic and financial newsTrump’s foreign film tariffs could ‘wipe out’ UK movie industry, ministers toldCar sales across the UK fell by over 10% last month, compared to a year ago.New industry data shows that 120,331 new vehicles were registered in April, 10.4% fewer than in April 2024.In what is traditionally a quieter month following the March plate change, volumes were also impacted by the late timing of Easter, resulting in fewer working days.In addition, the implementation of VED changes affecting all new cars, including the Expensive Car Supplement which became applicable to many new EVs from 1 April, pushed transactions into March as shrewd buyers got ahead of the tax increases. Continue reading...

Economics

8 d. ago UK car sales drop 10% in April; Ford predicts $1.5bn profit hit from Trump tariffs – business live

Rolling coverage of the latest economic and financial newsTrump’s foreign film tariffs could ‘wipe out’ UK movie industry, ministers toldCar sales across the UK fell by over 10% last month, compared to a year ago.New industry data shows that 120,331 new vehicles were registered in April, 10.4% fewer than in April 2024.In what is traditionally a quieter month following the March plate change, volumes were also impacted by the late timing of Easter, resulting in fewer working days.In addition, the implementation of VED changes affecting all new cars, including the Expensive Car Supplement which became applicable to many new EVs from 1 April, pushed transactions into March as shrewd buyers got ahead of the tax increases. Continue reading...

Economics

8 d. ago China’s service sector hit by trade war; Ford predicts $1.5bn profit hit from Trump tariffs – business live

Rolling coverage of the latest economic and financial newsTrump’s foreign film tariffs could ‘wipe out’ UK movie industry, ministers toldAmerican children face paying higher prices for Barbie dolls due to the Trump tariffs on imports.Mattel, the toy manufacturing giant, revealed last night that it plan to raise prices on American toys due to tariffs, and is also looking to move some manufacturing out of China.Accelerating diversification of its supply chain and further reducing reliance on China-sourced product,Optimizing product sourcing and product mix, andWhere necessary, taking pricing action in its U.S. business.In an uncertain macro environment that has intensified due to the potential impact of tariffs, we are focused on what we can control.We are improving our supply chain agility, taking decisive cost actions to mitigate financial impact where possible, and ensuring we can continue to serve our customers and consumers. Continue reading...

Economics

9 d. ago Trump’s 100% film tariff plan ‘not in the interests of American businesses’ – US politics live

Australian and UK politicians push back against US president’s move, which is expected to send ‘shock waves’ through global industry Israel is to expand its military operations in Gaza in the coming weeks, with the aim of “conquering” the territory and establishing a “sustained presence” there, Israeli officials have said.The plan, which was unanimously approved at a security cabinet meeting late on Sunday, goes beyond any aims so far outlined by Israel for its offensive in the devastated Palestinian territory and is likely to prompt deep international concern and fierce opposition. Continue reading...

Politics

1 week ago Markets rally after better than expected data shows US added 177,000 jobs in April – business live

Live, rolling coverage of business, economics and financial markets as US employment figures for April came in higher than expected with 177,000 jobs, boosting European markets as they hope for a thaw in US-China relationsEurozone unemployment was steady 6.2% in March – unchanged relative to a revised February reading.The youth unemployment rate was 14.2%, down from 14.3% in the previous month. Continue reading...

Society

1 week ago UK to ban buying bitcoin on credit card; stocks rise on hopes of US

Live, rolling coverage of business, economics and financial markets as Financial Conduct Authority considers restricting use of credit to buy crypto; stock markets gain on hopes of US-China trade thawEurozone unemployment was steady 6.2% in March – unchanged relative to a revised February reading.The youth unemployment rate was 14.2%, down from 14.3% in the previous month. Continue reading...

Politics

1 week ago Stock markets gain as China ‘evaluates’ offer of US trade talks – business live

Live, rolling coverage of business, economics and financial markets as FTSE 100 gains on hopes of US-China trade thaw; Shell profits drop 28% to $5.5bnCommodities companies are among the best performers on stock markets this morning.They would be among the best placed to benefit from the US backing down in its trade war with China. The FTSE 100 has a lot of Europe’s big mining listings, and they are leading the way on Friday. Continue reading...

Economics

1 week ago Shell profits fall as big oil faces slump in prices; UK cuts NatWest stake below 2% – business live

Live, rolling coverage of business, economics and financial markets as FTSE 100 oil company profits drop 28% to $5.5bnStock markets have gained across Europe, as investors welcomed signs of a possible thaw in the trade war between the US and China.Germany’s Dax gained 1.2% in the early trades, while France’s Cac 40 was up 1.4% – after both were closed over the May Day bank holiday. The Stoxx 600 index, which tracks big companies across Europe, rose by 0.9%. The FTSE 100 was up 0.9%.“The US has recently taken the initiative on many occasions to convey information to China through relevant parties, saying it hopes to talk with China,” the statement said, adding that Beijing was “evaluating this”.“Attempting to use talks as a pretext to engage in coercion and extortion would not work,” it said.This optimism has continued overnight after China’s Ministry of Commerce said that it’s evaluating trade talks with the US. The ministry said this comes as “the US has recently sent messages to C...

Economics

1 week ago Trump tariffs cause fastest slump in British factory export orders in five years – business live

Live, rolling coverage of business, economics and financial markets as UK manufacturers report falling export orders and China signals openness to US trade talks Fhaheen Khan, senior economist at Make UK, a lobby group for British manufacturing, said:UK manufacturers are caught in the eye of a perfect storm, with rising costs and international trade uncertainty undermining growth prospects. While actual changes in trade have been limited, the unpredictability, particularly around US tariff policy, is doing significant damage and paralysing decision makers. Many firms are delaying major investment decisions until greater clarity emerges, while being forced in the meantime to cut costs through redundancies while pushing through price increases.This has left manufacturing experiencing its most severe slowdown in years, with the UK at a competitive disadvantage compared to our European peers who are weathering current challenges relatively better. As a result, it is now vital that gover...

Politics

1 week ago China hints at openness to trade talks with US; Tesla denies board search for Musk successor – business live

Live, rolling coverage of business, economics and financial markets as Chinese state-controlled social media says US has approached China for trade talksLloyds Banking Group has reported a 7% drop in pre-tax profit to £1.5bn in its first quarter, and is bracing for the ripple effect from Trump’s tariffs on its balance sheet.The high street bank said that it has set aside £309m to account for possible bad debts, compared with previous guidance of £274m, as it added a £35m net charge to prepare for the possible impact on the economic outlook from President Trump’s tariffs.The US has proactively reached out to China through multiple channels, hoping to hold discussions on the tariff issue.Yuyuan Tantian is not among China’s most authoritative state media outlets. The Global Times, which is owned by the newspaper of the governing Communist Party, People’s Daily, has often been first to report China’s next steps in trade disagreements over the past few years.Guo Jiakun, a spokesperson fo...

Politics

1 week ago Tesla denies board search for Elon Musk’s successor; Trump tariffs to slash growth, says Bank of Japan – business live

Live, rolling coverage of business, economics and financial markets as US electric carmaker says report board is looking for next Tesla boss is ‘absolutely false’National Grid, the FTSE 100 company that owns the UK’s electricity network, has appointed Shell oil executive Zoë Yujnovich as chief executive after the retirement of John Pettigrew.Yujnovich was until recently working at FTSE 100 oil company Shell, where she was director of integrated gas and upstream (oil production) and a member of the executive committee. She previously led the Iron Ore company of Canada, part of Rio Tinto.I firmly believe in the vital function energy companies play in driving change and creating value. On both sides of the Atlantic National Grid has an essential role to play in making energy secure, affordable and reliable for our customers and communities. I’m excited about leading National Grid as it delivers on the growth opportunities ahead. Continue reading...

Economics

2 w. ago US GDP report to show if economy expanded in last quarter, after eurozone growth accelerates – business live

First estimate of US GDP for Q1 2025 will show whether tariffs hurt growthUK house prices fall but market ‘likely to pick up’ during summerChina manufacturing activity plummets amid Trump tariff warFrance’s economy is likely to “flirt with stagnation” throughout the year, despite the small rebound in GDP in the last quarter, predicts Dutch bank ING.Charlotte de Montpellier, ING’s senior economist for France and Switzerland, explains:The additional customs duties in the US and their direct and indirect impact will delay the French economy’s rebound. We estimate that the direct effect of a permanent 10% import duty in the US on French GDP (via a reduction in exports) will be around -0.1%.Adding to this are the effects of uncertainty, the global economic slowdown and more restrictive fiscal policy, all of which will weigh on French economic activity throughout the year. The cooling in the labour market is likely to limit the recovery in household consumption, and the savings rate is se...

Economics

2 w. ago France and Germany avoid recession as eurozone growth accelerates; Taiwan’s GDP boosted by pre

Rolling coverage of the latest economic and financial news, including growth figures from across EuropeUK house prices fall but market ‘likely to pick up’ during summerChina manufacturing activity plummets amid Trump tariff warFrance’s economy is likely to “flirt with stagnation” throughout the year, despite the small rebound in GDP in the last quarter, predicts Dutch bank ING.Charlotte de Montpellier, ING’s senior economist for France and Switzerland, explains:The additional customs duties in the US and their direct and indirect impact will delay the French economy’s rebound. We estimate that the direct effect of a permanent 10% import duty in the US on French GDP (via a reduction in exports) will be around -0.1%.Adding to this are the effects of uncertainty, the global economic slowdown and more restrictive fiscal policy, all of which will weigh on French economic activity throughout the year. The cooling in the labour market is likely to limit the recovery in household consumptio...

Politics

2 w. ago France and Germany avoid recession as economies return to growth; UK house prices drop – business live

Rolling coverage of the latest economic and financial news, including growth figures from across EuropeUK house prices fall but market ‘likely to pick up’ during summerChina manufacturing activity plummets amid Trump tariff warFrance’s economy is likely to “flirt with stagnation” throughout the year, despite the small rebound in GDP in the last quarter, predicts Dutch bank ING.Charlotte de Montpellier, ING’s senior economist for France and Switzerland, explains:The additional customs duties in the US and their direct and indirect impact will delay the French economy’s rebound. We estimate that the direct effect of a permanent 10% import duty in the US on French GDP (via a reduction in exports) will be around -0.1%.Adding to this are the effects of uncertainty, the global economic slowdown and more restrictive fiscal policy, all of which will weigh on French economic activity throughout the year. The cooling in the labour market is likely to limit the recovery in household consumptio...

Economics

2 w. ago France avoids recession as economy returns to growth; UK house prices drop – business live

Rolling coverage of the latest economic and financial newsChina manufacturing activity plummets amid Trump tariff warAverage UK house prices fell this month, lender Nationwide reports, after the rush to avoid an increase in stamp duty faded.According to Nationwide, house prices fell by 0.6% in April, with the average price dropping to £270,752 from £271,316 in March.Early indications suggest there was a significant jump in transactions in March, with buyers bringing forward their purchases to avoid additional tax obligations.“The market is likely to remain a little soft in the coming months, following the pattern typically observed following the end of stamp duty holidays. Nevertheless, activity is likely to pick up steadily as summer progresses, despite wider economic uncertainties in the global economy, since underlying conditions for potential home buyers in the UK remain supportive. Continue reading...

Economics