Press Association

UK stocks closed higher after the US Treasury announced it would at least double buybacks of longer-dated bonds to provide greater liquidity, helping push US and UK bond yields lower. Investors also assessed UK inflation, with CPI accelerating to 2.9% in July from 2.6% in June while core inflation held at 2.6%. US equities gained, led by Moderna and Merck after positive results for an experimental melanoma vaccine used with Keytruda. Gold miners advanced as gold prices rose, while Oxford Nanopore rallied on a narrower loss and improved cost control. IG Group declined over concerns about its Underdog acquisition, and Trainline plunged after the CMA opened a drip-pricing investigation.

Premium dog food subscription company Years has recalled its products after receiving 57 reports of suspected bilateral dry eye in dogs, potentially linked to buckwheat used in its meals. The company urged its 40,000 customers to stop feeding the products to animals, contact a vet if symptoms appeared, and said subscriptions would initially be paused while meals were reformulated with quinoa. London dog owner David Felton said his dog Cookie developed painful eye problems after eating Years food and has required extensive veterinary treatment. Years is investigating the suspected link and has promised to publish its findings.

Klarna reported a 27% year-on-year revenue increase for the three months ending in June, supported by wider retailer adoption, growth in financing services and a sharp rise in paying subscribers. Merchant numbers rose to 1.2 million, while financing gross merchandise volume increased 82%. However, the company lowered its full-year revenue and gross merchandise volume outlook, citing currency movements and weaker expected European volumes, particularly in Germany. Klarna’s shares have also fallen by roughly a fifth since its New York Stock Exchange listing.

UK CPI inflation is expected to rise from 2.6% in June to 2.9% in July, driven largely by a 13% increase in Ofgem’s energy price cap that added £221 to the average annual household bill. Economists warn inflation could exceed 3% later in the year as elevated energy costs, disruption around the Strait of Hormuz, and heatwaves and droughts push up food prices. The Bank of England may raise interest rates from 3.75% to 4% by year-end, while upcoming retail-price data will influence 2027 rail-fare increases.

JD Wetherspoon has banned customers across its 792 UK pubs from playing music or taking calls on speaker after complaints about disruptive smartphone and tablet audio. Founder Tim Martin urged customers to use silent mode or earphones. The policy follows wider efforts to discourage loud personal audio, including Liberal Democrat proposals for fines on public transport and a London campaign led by Mayor Sadiq Khan.

UK consumer confidence fell to 42.9 in August from 43.4 in July, remaining below the 50 threshold that indicates broadly negative sentiment. Job-security concerns deteriorated for a third consecutive month, reaching their weakest level since April 2023, while official data is expected to show a continued slowdown in vacancies. Household-finance sentiment improved slightly, and technology-sector investment, particularly in artificial intelligence, supported greater optimism about jobs and incomes. Despite these improvements, concerns over the labour market, Middle East conflict and political instability continue to weigh on households.

Virgin Trains has received approval from the Office of Rail and Road to access London St Pancras High Speed tracks for up to 20 daily return services to Paris, Brussels and Amsterdam from 2030. The agreement runs from October 2030 through December 2040 and represents a major step toward challenging Eurostar’s Channel Tunnel passenger-service monopoly. Virgin still needs access approval for the Channel Tunnel and other rail networks, along with safety approvals from UK and EU regulators, before services can begin.

Oil prices rose, with Brent crude reaching $88.22 a barrel, as progress appeared limited in US-Iran discussions over reopening the Strait of Hormuz. The FTSE 100 fell 0.2% despite gains for BP and Shell, while insurers weakened after UBS and Goldman Sachs downgrades, led by declines in Legal & General and M&G. Investors were focused on forthcoming US inflation data and its implications for Federal Reserve interest-rate policy. Spirax was the largest blue-chip faller after retaining its earnings outlook, while European and US markets were mixed to lower.

Harrods returned to profitability, reporting £84.9 million in pre-tax profit for the year to January 31, compared with a £34.3 million loss the previous year. The earlier loss included £62.5 million in compensation payments to more than 100 victims linked to abuse allegations involving former owner Mohamed Al Fayed. Turnover rose 1.2% to £1.1 billion, supported by international tourists and wealthy regular customers, despite global luxury-market pressures and two cyberattacks with limited financial impact. Finance chief Geoff Weaver said the business had stabilised and achieved modest growth. Rival Harvey Nichols warned that it could cease trading within a year without new investment.

Thames Water paid chief financial officer Steve Buck a deferred £1 million signing-on payment in July while carrying more than £20 billion in debt and seeking a rescue deal from senior creditors. The company also reached settlements with 14 current and former senior executives over disputed retention payments, despite agreeing to pause £2.46 million in payments to 21 executives after public criticism. The UK Government and environmental campaigners condemned the payments, arguing they undermine the ban on performance-related bonuses at failing water companies. Thames Water chairman Adrian Montague defended the compensation as necessary to retain leaders during the company’s turnaround, while Ofwat is reviewing whether the rules should be strengthened.

UK equities ended a strong week higher, with the FTSE 100 up 0.3%, the FTSE 250 gaining 0.7% to another record close, and the pound strengthening against the dollar. Markets reacted to unexpectedly weak US payroll data, including a loss of 23,000 jobs in July and substantial downward revisions to May and June employment, which reduced expectations of a September Federal Reserve rate hike. Airbnb shares jumped 15% after better-than-expected earnings and upgraded guidance, while London-listed mining stocks benefited from higher gold prices. Diageo rose on investor confidence in its new strategy, Goodwin advanced after announcing a strategic review, and Oxford BioMedica fell 15% after cutting its 2026 revenue forecast by 17%.

The Competition and Markets Authority has provisionally proposed extending UK rules on restrictive land agreements to Aldi, Lidl GB and Lidl NI. The rules, introduced in 2010 and currently covering seven major supermarket chains, are intended to prevent retailers from blocking rivals from opening nearby stores. The CMA said Aldi and Lidl should now be included because both have expanded their store networks and opened larger outlets. Both discount chains said the proposal would not alter their plans to continue opening stores across the UK, and the CMA is seeking further views before making a final decision.

Private equity firm Apollo is set to acquire easyJet for £5.7 billion after rival bidder Castlelake declined to make a formal offer. Apollo will pay shareholders 715 pence per share, subject to approval at a shareholder vote, with completion expected in the first quarter of 2027. easyJet founder Sir Stelios Haji-Ioannou and his family, who own about 15% of the airline, support the deal and intend to remain long-term shareholders. The easyJet board said the offer provides immediate and attractive value while Apollo said it aims to support the airline's next phase of growth.

Wizz Air reported a €183 million operating loss for the April-to-June quarter, compared with a €27.5 million profit a year earlier, as jet fuel expenses rose 39% to €610.5 million amid elevated oil prices following conflict in the Middle East. The airline had also taken a €50 million hit from cancelled flights to Tel Aviv and other regional destinations. Despite passenger numbers rising 25% to 21.2 million and revenue increasing 5.5% to €1.5 billion, Wizz Air is shifting capacity from longer-haul Middle Eastern routes to shorter European sectors and expects continued industry challenges alongside strategic opportunities for the rest of the year.

Persimmon expects to deliver around 12,500 homes in 2026, at the upper end of its previous guidance, despite affordability constraints, build-cost pressures and a softer housing market. First-half completions rose 13% to 5,189, while revenue increased 15% to £1.73 billion and pre-tax profit rose 15% to £168 million. Chief executive Dean Finch said the group remains on track for growth, while analyst Oli Creasey described Persimmon as being in relatively strong shape compared with other UK housebuilders.

Flutter Entertainment chief executive Peter Jackson will step down at the end of September after eight years and will be replaced by international-business chief Dan Taylor. The company cut its full-year revenue and earnings guidance after US revenue fell 6%, including a 15% decline in sportsbook revenue, while increased investment in the FanDuel business weighed on profits. Flutter expects adjusted Ebitda of about $2.655 billion, $210 million below its previous forecast, and annual revenue of $17.91 billion, $395 million below earlier expectations. International revenue grew 10%, and early third-quarter trading benefited from World Cup engagement and favourable results, but competition from prediction markets such as Polymarket and Kalshi is adding pressure in the US.

BP reported underlying replacement cost profit of $5.7 billion for the second quarter of 2026, a roughly 78% increase from the previous quarter and its strongest quarterly result in four years. Refining and trading operations benefited from volatile energy prices linked to the Iran conflict. Chief executive Meg O’Neill announced an overhaul focused on improving shareholder value, cutting costs and selling non-core assets, including the US biogas business Archaea and BP’s UK North Sea operation. Environmental and anti-fuel-poverty campaigners accused BP of profiting from a crisis that has increased household hardship and climate risks.

New Look has appointed Lynda Petherick as chief executive, replacing Helen Connolly, who is leaving to lead Asda’s George fashion and homeware business. The retailer reported that annual Ebitda more than doubled to £36.6 million, supported by tighter cost controls, fewer discounts and improved stock quality, while digital sales rose 1.6% and online revenue reached about 40% of total sales. More than one million customers now belong to Club New Look. Following store closures in the UK and Ireland, the company has refinanced its loans through 2029 to support selective investment in digital channels and shops.

UK manufacturing activity continued to expand in July, with the S&P Global PMI recording 51.9, above the 50 growth threshold but below June’s 52.5 and economists’ forecast. Production, new orders and export business strengthened, particularly among medium and large firms, while orders from North America, the EU, China, India and South Korea supported demand. Growth momentum was restrained by reduced stock purchasing, near-stagnant employment growth and subdued business confidence, with trade tensions, tax rises, regulatory changes and uncertainty over the US-Iran conflict cited as key pressures.

Shell has agreed to sell its European onshore renewables business to TotalEnergies, subject to regulatory approval and expected to close by the end of 2026. The deal covers a four-gigawatt portfolio of solar, wind and battery-storage projects and assets in the UK, Italy, the Netherlands and Spain, including 500 megawatts already operating or under construction. The sale reflects CEO Wael Sawan's strategy of reducing Shell's low-carbon investment and prioritizing areas where it believes it can generate greater value, while TotalEnergies says the acquisition will strengthen its power-generation position across deregulated European markets.

John Healey will deliver the first budget of Andy Burnham’s premiership on October 28, promising fiscal discipline, adherence to the government’s fiscal rules and greater devolution of money and power from Westminster. The budget must address funding for cost-of-living measures, English devolution, technical education and at least £5 billion in defence spending, while the conflict in Iran is expected to worsen inflation and pressure public finances. Economic experts have warned that higher taxes or spending cuts may be necessary, potentially affecting welfare, pensions and income tax, national insurance or VAT. Conservative shadow chancellor Mel Stride accused the government of making unfunded commitments and warned of future tax rises.

The Bank of England kept its base rate at 3.75% for a fifth consecutive meeting in a 6–3 vote, with Huw Pill, Megan Greene and Catherine Mann supporting an increase to 4%. Although UK CPI inflation fell to 2.6% in June, it remains above the 2% target, and the Bank expects inflation to rise to about 3.2% later this year as higher energy prices linked to the Middle East conflict feed through. A prolonged conflict, an AI-related memory-chip shortage and weather-driven food disruption could push inflation above 4%. The Bank projects UK growth of 1.1% this year and in 2027, with unemployment reaching 5.3% next year. Economists largely expect rates to remain unchanged through the rest of the year, though further inflationary pressure could prompt increases in 2027.

The FTSE 100 rose 0.3% to 10,908.41 after reaching an intraday record of 10,951.06, supported by strong company earnings and gains in BP and Shell as Brent crude climbed above $90 a barrel. UK mid-cap stocks edged lower, while US and European markets declined, particularly technology shares. Investors were focused on the Federal Reserve’s interest-rate decision, with markets pricing a 34% chance of a hike despite most analysts expecting rates to remain unchanged amid soft inflation and payroll data. Greggs, Sage Group, Weir Group, Reckitt Benckiser and Standard Chartered reported strong results or guidance, while geopolitical tensions involving Iran and the US pushed oil prices higher. The pound weakened modestly, US Treasury yields increased, and upcoming UK, eurozone and US economic data was expected to drive further market moves.

Royal Collection Trust reported that total income fell by £4.6 million to £85.3 million in 2025/26, while net income dropped from £13.9 million to £3.5 million. Retail sales declined to £20.6 million and visitor numbers fell by 182,000 to 2.6 million across attractions including Buckingham Palace and Windsor Castle. The trust attributed the downturn to fading post-coronation interest, weaker economic conditions and subdued international travel, while noting increased attendance at the Palace of Holyroodhouse and continued public interest in its sites and exhibitions.

West Yorkshire coffee shop chain Merrie England has closed all six of its cafes in Huddersfield, Halifax and Brighouse after 60 years. The company attributed the closure to sustained increases in energy, business rates, goods and staffing costs, including the impact of higher national insurance contributions, alongside reduced footfall and customer spending.

Whitbread has confirmed that its 89 Brewers Fayre restaurants will stop trading after dinner service on September 7, 2026, followed by the closure of 106 Beefeater sites on September 10. Bar + Block, Table Table and Cookhouse + Pub locations are due to close on September 3. The closures form part of Whitbread's plan to eliminate its separately branded restaurants, cut around 3,800 UK and Ireland jobs, save £250 million over five years and replace the chains with restaurants located within Premier Inn hotels. The company also plans to expand its hotel-room capacity from approximately 86,600 to 96,000 by the 2031 financial year.

Vodafone has cut 1,200 jobs across Europe as part of a plan to remove €2 billion (£1.71 billion) in costs by 2030, with some reductions achieved through natural attrition. Its UK VodafoneThree operation is targeting around £700 million in annual savings following the merger with Three UK, while integrating brands and 5G networks. Shareholders approved chief executive Margherita Della Valle’s £10.13 million pay package. Group service revenue rose 10% in the latest quarter and adjusted earnings increased 6.7%, prompting Vodafone to raise or reaffirm its earnings outlook after taking control of Kenya’s Safaricom. However, UK mobile service revenue and contract customers declined, partly because Ofcom’s intervention phased out mid-contract price increases.

Sir Ian Wood, the Aberdeen industrialist and philanthropist, has died peacefully at home, prompting tributes from Scottish political and business leaders. First Minister John Swinney said Wood helped shape modern Scotland through his leadership of Wood Group, his role in the North Sea oil and gas industry and his charitable work. Other figures praised his influence on Aberdeen and the wider north-east, his advocacy for offshore energy stewardship and collaboration, and his commitment to using business and philanthropy to improve communities in Scotland and abroad.

Tortilla Mexican Grill reported a nearly 14% like-for-like sales increase in the six months to the end of June, with sales rising almost 20% after it launched simultaneously on Deliveroo, Uber Eats and Just Eat. Delivery sales grew by more than 50%, supported by higher order values, menu changes and self-ordering kiosks. The company also published delayed 2025 accounts after accounting issues in its French business; adjusted earnings were £1.1 million, with the UK profitable and France loss-making. Tortilla shares fell about 5% after returning to trading.

Sir Ian Wood, the Aberdeen-born billionaire businessman and philanthropist who developed the family business into the international Wood Group energy-services company, has died peacefully at home aged 84. He led the company through the expansion of the North Sea oil industry, retired as chairman in 2012 and was knighted in 1994. Through the Wood Foundation, established in 2007, he supported education, enterprise, agriculture and conservation projects in Scotland and East Africa. His family paid tribute to his kindness, generosity and lasting social impact.

The Financial Conduct Authority is reminding motor finance customers that they can complain directly to lenders and do not need to pay a claims management company or law firm. A £2 million campaign will promote free complaint tools after an FCA survey found that 59% of customers had made or were considering a claim, while 27% lacked confidence in complaining independently. The campaign runs from July 27 to September 6, 2026, as the FCA’s motor finance redress scheme remains partly suspended because of legal challenges.

A thinkmoney survey of more than 2,000 UK adults found that 65% spend time worrying about money during a typical week, averaging 22 hours. Financial anxiety was greatest among lower-income households and in the North East of England, and was linked to cutting back on essentials, repeatedly checking or avoiding bank balances, reduced confidence, difficulty relaxing, postponed future plans, and less time with friends and family. Consumer expert Vix Leyton said the main cost of financial insecurity is the time and attention it consumes. Budgeting tools, reviewing bills and subscriptions, contacting lenders, and seeking help from debt-support charities were recommended.

Offshore Energies UK is urging Andy Burnham’s government to approve the Jackdaw and Rosebank oil and gas projects in the North Sea, describing them as a potential “powerful reset” for the sector. Chief executive David Whitehouse argues that domestic production would support jobs, tax revenues, energy security and winter gas supplies while reducing reliance on imports. Environmental campaigners oppose the developments, and the Labour government has previously rejected new oil and gas projects under its 2024 manifesto. Energy Secretary Miatta Fahnbulleh has indicated a pragmatic approach, while consultations are due to conclude in August before regulatory recommendations are made. OEUK warns that rejection could undermine a wider £50 billion pipeline of projects, while the government says North Sea oil and gas will remain important alongside renewables, nuclear power and other low-carbon technologies.

A new US tariff regime will impose duties of 10% to 12.5% on imports from 60 countries, including the UK, replacing temporary levies ruled illegal by the US Supreme Court. Experts warn that the UK could lose competitiveness because the EU has secured more favourable US trade terms, while further disputes over Britain’s digital services tax could create additional uncertainty. Business groups urge the UK Government to continue negotiations, and warn that the tariffs may raise costs, inflation and job risks. The GMB condemns the policy as harmful to workers and businesses, while Make UK calls for greater stability and fewer trade barriers.

The United States has removed its 10% tariff on imports of Scotch whisky, a move welcomed by Scottish First Minister John Swinney, Scottish Secretary Douglas Alexander and the Scotch Whisky Association. The measure is expected to support exports, investment, jobs and supply chains in Scotland and the US, with the US market valued at £933 million in 2025. Swinney welcomed the whisky exemption but criticized the Trump administration’s new 10% tariff on other UK goods. Officials also highlighted the UK-India free trade agreement, which will reduce tariffs on whisky exports to India over the next decade.

HSBC has agreed to sell its Singapore life and insurance business to Allianz for 2.7 billion Singapore dollars (£1.6 billion). The deal includes a 15-year agreement allowing HSBC to continue selling insurance products to Singaporean customers, and is expected to generate a pre-tax gain of about $1.8 billion for HSBC, plus an initial $200 million cash payment. Completion is expected in the first half of next year. The sale forms part of chief executive Georges Elhedery’s wider restructuring and cost-cutting programme, while HSBC says Singapore remains a key wealth and wholesale banking hub.

Scottish First Minister John Swinney said the UK Government must weigh the North Sea’s “critical transition” to meet climate obligations when deciding whether to approve the Rosebank and Jackdaw oil and gas projects. He said any developments must be compatible with the path to net zero, while acknowledging that the UK Government—not Scotland—is responsible for the decision. The projects have been delayed by legal challenges. Energy Secretary Miatta Fahnbulleh’s visit to Aberdeen prompted constructive talks with Offshore Energies UK, while MSP Jack Middleton separately urged approval of the fields.

EasyJet reported a 70 percent drop in quarterly profits as fuel costs rose sharply due to the Iran conflict and passenger bookings weakened. The airline’s pre-tax profit fell to £85 million, with fuel expenses up £105 million. A takeover bid from Apollo remains pending ahead of an August deadline after competing interest from Castlelake. Passenger numbers dipped and fares fell slightly to stimulate demand, though late bookings improved during summer. CEO Kenton Jarvis said pricing boosted late demand and noted manageable airport queues under Europe’s new entry-exit system while urging continued flexibility beyond September.

Centrica plans about 1,300 job cuts over two years as part of a restructuring of customer services and support operations. The reduction includes contact-centre roles and offshore support positions, reflecting decreased call volumes and rising digital engagement. Some cuts will occur through natural attrition. The company is also trimming group support functions while continuing to invest in engineering and apprenticeships. Chief executive Chris O’Shea supports VAT cuts on energy bills but prefers more targeted assistance. Energy suppliers, including Centrica and E.On, are calling for focused support as wholesale price pressures linked to Middle East unrest may lift the energy price cap in October.

UK government bond yields rose to their highest level in two months and the pound weakened as markets reacted to Andy Burnham’s appointment of John Healey as Chancellor. Investors expressed uncertainty over the new government’s economic direction despite assurances that fiscal rules will remain in place. The FTSE 100 declined, and analysts attributed bond market volatility to concerns about unclear policy plans. Healey faces weak economic growth, elevated borrowing, and upcoming inflation and debt data, while the government considers additional cost‑of‑living support within tight fiscal constraints.

Ryanair reported a 34% drop in quarterly profits as unhedged jet fuel costs doubled due to the Iran war and fare reductions were implemented to counter weakened demand. Higher fuel prices, disrupted supply routes and consumer hesitancy drove operating costs up 11%, offsetting increases in passenger numbers and revenue. CEO Michael O'Leary cited geopolitical conflicts, economic uncertainty and continued air traffic control issues as major risks, noting limited visibility on future performance and declining fares despite stronger summer volumes.

Average UK asking prices fell by £3,832 in July as summer distractions, including the World Cup and hot weather, reduced buyer activity. Rightmove reported a larger-than-usual seasonal decline amid high housing supply and cautious consumer behaviour influenced by global instability and elevated mortgage rates. Experts highlighted the importance of accurate pricing and strong local estate agency support, noting that most homes sold this year did so without price reductions despite challenging market conditions.

UK consumers preparing for summer holidays expect to spend an average of £158 on beauty and grooming, with higher budgets for trips to France, Italy and the United States. Clearpay survey data shows strong demand for haircuts, facials and manicures, while sales of beauty products such as teeth whitening kits and bronzing oils have risen. Motivation to look good while travelling and the desire to try new products are key drivers of this pre-travel spending trend.

Rising fuel and energy costs linked to the Iran war drove a surge in profit warnings among UK travel, leisure firms and housebuilders, with 59 alerts issued in the second quarter. Travel companies recorded their highest number of warnings in almost four years, while housebuilders faced pressures from elevated build costs, lower demand and persistent high interest rates. EY-Parthenon data showed policy changes and geopolitical uncertainty as major factors behind the alerts, with many firms citing rising costs, order delays and weaker consumer confidence. Jo Robinson noted that companies continue to face shifting pressures amid global tensions and economic volatility.

Donald Trump claimed residents of Aberdeen would welcome reports that incoming prime minister Andy Burnham may support additional North Sea oil and gas drilling, including at the Rosebank and Jackdaw fields. Burnham has not confirmed any shift from Labour’s 2024 manifesto, which opposes issuing new licences, though he is reportedly open-minded about approving projects that already hold licences. Labour deputy leader Lucy Powell said she expected no policy reversal but a more pragmatic emphasis on existing commitments.

Creditors of Thames Water signalled willingness to work with incoming prime minister Andy Burnham on increasing public control as they seek to stabilise the heavily indebted utility. Turnaround specialist Mike McTighe said investors are prepared to recapitalise the company but require government engagement. Burnham has indicated support for greater public oversight of key utilities amid reports the firm could be placed into temporary nationalisation through a special administration regime, with its £20 billion debt and liquidity concerns raising the risk of taxpayer exposure. The current rescue plan has been questioned by the Environment Secretary, prompting creditors to consider further concessions to avoid administration and rebuild public trust.

United Utilities shareholders approved a remuneration policy granting CEO Louise Beardmore annual share allowances despite significant opposition and earlier bonus restrictions imposed by Ofwat after a major fish kill incident. Beardmore received substantial bonuses for 2025–26, prompting criticism from campaigners, political figures and shareholder advisers who argued the changes weaken performance accountability. The company defended the policy as necessary for leadership retention while committing to continued shareholder engagement.

The FTSE 100 rose 0.5% as strong engineering stocks offset weakness among miners, while the pound eased after briefly hitting a yearly high amid expectations that Shabana Mahmood may become chancellor in Andy Burnham’s incoming government. Markets favoured her perceived fiscal discipline over Ed Miliband, previously viewed as a contender. UK GDP grew 0.1% in May, supported by the services sector, though analysts warned that the Iran-related energy squeeze could slow momentum. Global markets were mixed, with US tech stocks softening despite TSMC reporting record profits driven by AI demand. Corporate moves lifted UK equities, including sharp gains for Diploma, Rotork following an ABB takeover deal, and Gooch & Housego after accepting a bid from Arlington Capital Partners.

The International Monetary Fund advises the incoming government led by Andy Burnham to avoid raising public spending and instead prioritise economic growth and debt stability. It urges tightly targeted and temporary energy bill support in response to the Iran-related energy shock, warning against broad subsidies or tax cuts. The IMF notes rising fiscal pressures from an ageing population, defence needs and the green transition, and reiterates earlier praise for Chancellor Rachel Reeves’ fiscal approach. Reeves, who is not expected to remain in post, says the IMF’s assessment supports the government’s economic plan, while Ed Miliband is seen as a potential successor for the chancellor role.

Leeds Building Society has introduced a Start Mortgage that allows first-time buyers to purchase a home with deposits as low as 2%, subject to a £5,000 minimum. The product offers loans up to five times income, requires a minimum income of £30,000, and is available up to £500,000. The five-year fixed-rate mortgage is set at 5.65% with no completion fee and includes a free standard valuation. The lender permits applications from self‑employed borrowers and allows gifted deposits. Experts say the rare 98% loan‑to‑value structure could help buyers struggling to save for deposits and move them out of long‑term renting.

Crest Nicholson reported a pre-tax loss of £35.2 million for the six months to April and cut its full-year earnings outlook due to a slowdown in housing market activity and weaker consumer confidence. Speculation over potential property tax changes by Chancellor Rachel Reeves contributed to uncertainty, affecting inquiries and land buying sentiment. The company is reducing land purchases and slowing development activity while noting some supportive factors such as government housebuilding targets. Its share price fell about 10% following the update.

Andy Burnham signaled he may consider a wealth tax, stressing the need for fairness while noting decisions must await assessment of public finances. He pledged to adhere to Labour’s fiscal rules and indicated tax changes could be possible within manifesto constraints. Burnham said he would take a direct but respectful approach in dealing with Donald Trump amid strained transatlantic relations and recalled past tensions under Keir Starmer. Conservative leader Kemi Badenoch and Reform UK’s Robert Jenrick criticized his comments, accusing Labour of preparing tax increases.

James Watt has submitted a bid through his new company, Second Best, to buy back BrewDog after its administration and acquisition by US firm Tilray. He says 43,000 Equity Punks are supporting the effort and pledges to restore equity, reintroduce the real living wage and place community at the business’s centre if successful. BrewDog’s collapse previously resulted in 36 UK bar closures and around 500 job losses, leaving investments from nearly 20,000 shareholders worthless. Watt expressed regret for past mistakes and the impact on staff and investors.

OECD analysis links renewed energy inflation driven by Middle East conflict and persistent regional disparities to weaker UK living standards and slower GDP growth, urging the government to accelerate pro‑growth reforms and decarbonisation. The organisation highlights exposure to volatile fossil fuel prices and higher unemployment for young people as structural challenges. Andy Burnham plans a regional‑focused governance model, while Chancellor Rachel Reeves cites restored economic stability and improved forecasts as evidence of progress.

Thames Water warns it may run out of cash by October without new creditor support as it seeks clarity from incoming prime minister Andy Burnham on future policy for the water sector. Chief executive Chris Weston says funding discussions aim to extend support into 2027 but uncertainty over government plans hampers progress. The utility reports improved profits but rising debt, missed regulatory targets and surging customer complaints. The Environment Secretary has rejected creditors’ proposed £10 billion rescue plan and criticised executive bonuses, deepening pressure on the firm as it pursues a recapitalisation to avoid temporary nationalisation.

Thames Water returned to a pre‑tax profit of £226.4 million after a £1.65 billion loss the previous year, while its debt rose to £19.77 billion as it continued drawing funds for capital investment. Creditors are seeking a rescue deal amid warnings from Environment Secretary Emma Reynolds that the current plan fails to safeguard customers and the environment. A proposed £10 billion injection from the London & Valley Water consortium remains under regulatory consideration. Chief executive Chris Weston said operational performance has improved and the company is working with stakeholders to complete recapitalisation.

Regulation of buy now pay later agreements shifts to the Financial Conduct Authority, requiring clearer customer information, affordability checks and enhanced support for borrowers. BNPL usage may now affect credit decisions, and customers can escalate complaints to the Financial Ombudsman Service for agreements made on or after July 15, 2026. Debt‑advice organisations urge consumers to monitor spending and seek help early through lenders or charities such as StepChange, Citizens Advice, Christians Against Poverty and National Debtline.

New rules place buy now pay later lenders under Financial Conduct Authority regulation, requiring affordability checks, clearer information and stronger consumer protections. Customers can now take complaints to the Financial Ombudsman Service, which expects around 2,000 BNPL-related cases this year. Experts and industry representatives broadly welcome the changes, citing benefits such as improved safeguards, better clarity on repayment obligations and potential impacts on credit reports. The reforms aim to reduce the risk of unaffordable borrowing as BNPL usage continues to grow in the UK.

MPs called for stronger government action against the food industry to address rising obesity rates in England, recommending bans on outdoor junk food advertising, mandatory front-of-pack labelling, and new planning rules limiting fast‑food outlets near schools. The Health and Social Care Committee urged mandatory supermarket targets for healthy food sales and improvements to the Healthy Start scheme. Chairwoman Layla Moran argued that environmental pressures drive unhealthy eating and called for bold policy changes despite industry lobbying. Industry representatives acknowledged progress but argued for continued involvement in policymaking, while the Advertising Association disputed claims that advertising restrictions reduce obesity.

Bank of England governor Andrew Bailey said UK financial regulation should help expose excessive bank profits by improving competition but should not impose profit caps. He defended capital requirements as essential for stability while expressing openness to simplifying rules if they support a strong banking system and economic growth. He pushed back against calls for broad deregulation, including recent Conservative proposals to ease capital requirements to unlock investment.

Soft US inflation in June lifted London’s FTSE 100, offsetting pressure from surging oil prices linked to escalating tensions between the US, Iran and Gulf states. The US consumer price index fell more than expected, easing annual inflation and pushing down the dollar and bond yields while raising expectations the Federal Reserve will delay any rate move. Oil spiked after attacks on UAE tankers and US strikes on Iranian targets, though President Trump later abandoned a planned shipping levy. Rising energy and metals prices boosted major London-listed commodity stocks, while several US banks posted strong quarterly results. IBM slumped on a profit warning, and Pearson dropped after a downgrade. Smaller firms saw sharp moves, including a steep fall in Aminex after delays to its gas project. Global markets posted modest gains ahead of key economic data from China and central bank updates.

MPs on the Treasury Committee warn that the UK Government’s Financial Inclusion Strategy lacks data, clear targets and accountability needed to reduce financial exclusion. The committee urges HM Treasury to produce fuller quantitative analysis, set milestones and work with the Financial Conduct Authority on metrics for major providers. It highlights barriers affecting vulnerable groups and raises concerns about overreliance on voluntary industry initiatives. Committee chair Dame Meg Hillier calls for stronger intervention, while campaigners stress that consumer voices must be prioritised. The Treasury says the strategy is an initial step and points to pilots and expanded financial education efforts.

Retail spending rose in June, with online sales increasing sharply as shoppers sought to avoid the heatwave, boosting demand for fans, paddling pools and air-conditioning units. In-store non-food retailers saw declines as high temperatures deterred visits. Analysts noted that the men’s football World Cup also lifted spending, especially on home appliances, food, drink and pub transactions, which surged on England match days. Despite the temporary boosts, economic growth remains slow, though modest improvement is expected later in the year as consumer confidence stabilises.

Industry forecasts indicate pubs will serve over 64 million pints of no and low alcohol beer this summer, reflecting rapid growth in the category. The British Beer and Pub Association reports an 870% increase since 2013 and argues that restrictive UK definitions of “alcohol‑free” are limiting further progress. Brewers and brand leaders note rising consumer demand, especially during warmer months, and support updating the alcohol‑free threshold to 0.5% ABV to align with international standards and stimulate investment.

A coalition of business groups urges Andy Burnham to impose a 2% online sales tax and replace the current business rates system with a hybrid model to ease pressures on high street firms. The Real Rates Reform Alliance argues this would allow a 37% reduction in business rates for physical businesses and generate slightly more revenue than the current system. With Burnham expected to become prime minister, the group insists he advance beyond his existing proposals, which include raising thresholds for small business relief and increasing taxes on large warehouses. New survey data highlights the strain of business rates, while separate calls from CBI and Energy UK push for action on high energy costs to support economic growth.

The UK Treasury designated Microsoft, Google, Amazon Web Services and Oracle as critical third parties to the financial sector, placing them under oversight from the Bank of England, the Prudential Regulation Authority and the Financial Conduct Authority. The move aims to strengthen operational resilience across the financial system by ensuring cloud providers can manage and recover from disruptions. Government officials and company representatives expressed support for the new framework, highlighting its role in bolstering trust, security and long-term economic stability.

Hays expects operating profit to reach the top of its guidance as cost controls help offset ongoing weakness in the recruitment market, driving shares to a four‑month high. Net fees fell 4% in the latest quarter, with declines in the UK and Ireland, though temp and contracting activity improved. The company plans to maintain headcount and acknowledges continued economic uncertainty. Leadership and market analysts emphasise effective cost discipline and productivity improvements supporting stronger second‑half performance.

Ofcom has proposed new rules requiring major tech platforms to take stringent action against scam advertising, including a one‑strike ban policy, improved fraud detection, and stricter oversight of AI‑generated ads. Companies could face fines of up to £18 million or 10% of global revenue if they fail to comply. A consultation runs until October 2, with final decisions expected in 2027 pending parliamentary approval. Consumer advocates warn the timeline leaves users exposed as AI‑driven scams grow more advanced. On the same day, the European Commission demanded Meta disable features such as infinite scroll due to risks to users’ wellbeing, opening the possibility of fines of up to 6% of its global revenue.

Xavier Niel is set to become Vodafone’s largest shareholder after his investment vehicle Vega agreed to purchase a 16.2% stake from UAE telecoms group E& for £4.4 billion. Niel highlighted Vodafone’s strong assets and growth potential as reasons for the move. The acquisition follows Vodafone’s strategic refocusing under chief executive Margherita Della Valle and its recent £4.3 billion deal to take full ownership of VodafoneThree in the UK. Vodafone has ended its relationship with E& as part of the transition.

A travel medical directory created by the British Insurance Brokers’ Association has received over 400,000 inquiries in five years, reflecting rising demand among travellers with serious medical conditions seeking specialist insurance. The Financial Conduct Authority’s 2021 signposting rules require insurers to direct customers facing higher premiums or declined coverage due to medical issues toward specialist directories, helping improve access to appropriate policies. Officials from BIBA and the FCA highlight the directory’s effectiveness, while a new voluntary signposting commitment from BIBA and the Association of British Insurers aims to further support the UK Government’s financial inclusion strategy.

Hostelworld increased revenue to 52.2 million euros in the first half of the year by raising commission rates through its Elevate ranking tool, despite the Iran-related conflict reducing bookings growth by about three percent. Higher commissions offset weaker long‑haul demand, particularly to Asia and Oceania, while Europe and North America remained resilient. The company expects trading conditions to improve in the second half of the year.

Andrew Bowie urges the UK to pursue maximum economic recovery from North Sea fossil fuel reserves, arguing domestic drilling is essential for energy security and jobs. Adura warns that failure to approve the Jackdaw field could contribute to winter fuel shortages, stressing its readiness for rapid deployment. Environmental groups counter that the project offers minimal supply benefits and advocate accelerating renewables and home upgrades to reduce reliance on gas. The Jackdaw and Rosebank proposals remain under consideration by the regulator, with the UK Government yet to comment.

Hugo Boss’s leadership unanimously urged shareholders to reject Frasers Group’s €1.98 billion takeover offer, arguing the bid undervalues the company and fails to reflect its long‑term potential. CEO Daniel Grieder highlighted strong financials and a strategic path for growth as reasons to dismiss the proposal. Frasers, which already holds a 26% stake and has expanded its investments across multiple retailers, expects the offer to proceed to a shareholder vote later this year pending approval and regulatory clearance.

Capita’s chief executive apologises to MPs for serious delays and failures in administering the civil service pension scheme and pledges to fix the problems. MPs criticise the firm’s performance and question whether it is exploiting government contracts, while ministers consider bringing the work back in-house. The Cabinet Office reports thousands of outstanding pension and bereavement cases, and a team of civil servants has been deployed to help clear the backlog. Nick Thomas-Symonds says the government will recover all costs from the company.

The updated environmental assessment for the proposed Jackdaw North Sea gas field claims the project would contribute only 0.02% of global emissions and aligns with pathways to net zero. Adura argues the development, along with Rosebank, would enhance UK energy security, support thousands of jobs and offer lower‑carbon production than alternatives. Conservative MP Andrew Bowie urges government approval, highlighting economic and employment benefits. Uplift’s Tessa Khan counters that the field would have minimal impact on energy bills or supply, arguing the UK must shift toward renewables to reduce exposure to gas price volatility. A public consultation on the project runs until August 10.

Tesco is exploring a potential sale of its central and eastern European division to concentrate on its UK and Irish operations, following years of scaling back its global ambitions. The business, which employs 22,000 people across Hungary, the Czech Republic and Slovakia, remains Tesco’s only major overseas presence after previous divestments, including the 2020 sale of its Thai and Malaysian operations. European sales grew modestly in the latest quarter, while group-wide growth slowed amid uncertainty linked to Middle East conflict, and shares dipped slightly following the report.

Marks & Spencer will make its debut at London Fashion Week, presenting a shoppable womenswear and menswear collection available immediately online and in flagship stores as part of its centenary. The move supports the retailer’s broader investment in fashion, home and beauty to boost online sales and follows efforts to improve customer perceptions of style and quality. The company has also expanded its logistics capacity by taking over an Asos warehouse set to open in 2027.

Research by Ipsos UK for Surviving Economic Abuse indicates that more than a third of young women aged 16 to 24 and nearly a third of teenage girls aged 16 to 18 experienced economic abuse from a partner in the past year, often within weeks of beginning a relationship. Reported impacts include harm to mental health and restrictions on work or study. The charity urges early recognition of warning signs and promotes tools and educational resources developed with partner organisations to help families and young people identify and address economic abuse.

Hundreds of UK petrol stations are under investigation for failing to submit legally required live fuel prices to the Government’s Fuel Finder system, with the Competition and Markets Authority issuing warning letters and prepared to levy fines. Despite mandatory reporting since February, many forecourts have not provided updates for weeks or months, undermining the scheme intended to boost competition and save drivers money. Fuel prices remain elevated compared with pre–Middle East conflict levels, and analysis shows widespread lapses among supermarkets and other retailers. Government departments and industry bodies highlight the scheme’s goals, operational challenges and the requirement for timely reporting.