After last week was dominated by economic data and interest rates, this week looks set to focus more on the UK’s productivity problem, with businesses hoping to start the run-up to Christmas with a boost in takings despite the public still taking a cautious stance over spending. With the Budget later than usual, that might well continue.
The government have given the green light for a second runway at Gatwick to be planned and built, while an entrepreneur is attempting to build a gas storage site which would add 50 per cent to Britain’s capacity for emergency access against the threat of blackouts. In the US, Donald Trump has confirmed the buyers of TikTok include Larry Ellison and Michael Dell, two of the world’s ten richest billionaires.
In stock market news, the FTSE 100 is down in early trading, after falling around 0.7 per cent last week.
Follow The Independent’s live coverage of the latest stock markets and business news here:
Key points
- FTSE 100 falls on Monday morning
- Trump reveals names behind TikTok bid
- $1.36bn paid in tariffs on UK exports across fourth months
Barclays analyst eyes up 3.5% interest rate early next year
12:20 , Karl MatchettBarclays analysts still believe the Bank of England will cut interest rates again this year - and once more early next year.
Some economists have predicted no further cuts before mid-2026, with the bank rate at 4% after the BoE’s MPC left it untouched last week.
But that’s not how Jack Meaning at Barclays sees it, as he wrote in a research note.
“Our Bank Rate call remains two more cuts in the next six months, in November 2025 and February 2026, leaving Bank Rate at 3.5%. Recent MPC communication, along with an upwardly revised path for CPI inflation, makes this more finely balanced than [in] June.”
The insane government rules that are driving investment away
12:00 , Karl MatchettKeir Starmer is torn between attracting the world’s wealthy and speaking to the working man. His mixed messaging – and Britain’s sloppy legislation – is holding the country back, says Chris Blackhurst.
The insane government rules that are driving investment away
BMW sets aside more than £200m for UK motor finance scandal
11:40 , Karl MatchettBMW’s UK car finance business has set aside more than £200 million to cover the potential impact of the continued fallout from the car loan mis-selling scandal.
It is the latest car firm to reveal the potential cost of the motor finance scandal, with millions of drivers expected to be eligible for compensation claims.
The financial regulator, the Financial Conduct Authority (FCA), is currently consulting on an industry-wide redress scheme for consumers who lost out when they took out a car loan between 2007 and 2020.
This is because it thinks many banks and motor finance firms broke the law or its rules by not properly telling customers about commission paid to dealers, meaning people may not have got a fair interest rate on the deal.
The FCA said earlier this month that is hopes to start redress payments to affected customers next year.
More small British businesses embracing AI at work
11:20 , Karl MatchettResearch from the British Chambers of Commerce shows over a third of SMEs (35%) say they are actively using AI technology, up from 25% in 2024.
Shevaun Haviland, director general of the BCC, said:
“Our data shows more SMEs are plugging into AI – and that’s really encouraging news for the UK’s economic future.
“The pace of technological change is speeding up, not slowing down, and it’s crucial that all businesses are part of the digital revolution. Our survey shows the picture is not equal across all sectors and firms aren’t yet using the technology to its full potential.
“It’s crucial that the Government acts swiftly on the recommendations of the SME Digital Adoption Taskforce. Improving AI awareness, support and skills must be the focus.
“Getting this right will help firms drive forward economic growth in an increasingly digital world.”
The weekend cyber attack on airport software continues to impact now into the new week, with investors feeling the brunt of the fallout.
“Shares in airline operators flew lower after a weekend of hell for travellers,” explained AJ Bell’s Russ Mould.
“The cyberattack on check-in software used by airports in London, Berlin and Brussels caused widespread pain, with flights delayed or cancelled. Airlines rely on efficiency to make money, and any disruptions can have a snowball effect.
“There will be some irate operators demanding answers as to why software provider Collins Aerospace didn’t have robust enough systems to block a cyberattack. Collins is owned by US-listed RTX, whose share price is likely to come under pressure when Wall Street opens for trading later today.
“Investors might take the view that RTX’s reputation will be battered and bruised by the incident, and that could cause potential customers to think twice about ordering its systems or existing customers to consider alternative options.
“EasyJet was among the airlines caught up in the drama, extending a bad run for its share price that’s been in motion since June. After yet another summer clouded by air traffic control strikes, EasyJet has now had to endure more cancellations and a queue of angry customers.”
Data shows Brits overspend when leaving the house
10:40 , Karl MatchettA new study from Creditspring suggests UK adults spend an average of more than £60 each time they leave their homes.
The study says almost two in five Brits (39%) feel pressure to “make the most” of being out, often leading to unplanned purchases.
“Treat mentality” seems to be at least partly behind the spending, with people not realising how much they are outlaying until the end of the day counting back.
Tamsin Powell, consumer finance expert at the firm, suggested tips like budgeting a weekly allowance for outings can help trim costs, as well as prepping meals to take with you, planning travel better or rethinking takeaway coffee habits which can amount to more than £1,000 annually even at just one a day.
Warren Buffett's firm sells stake of BYD after enormous profits
10:20 , Karl MatchettWarren Buffett’s firm Berkshire Hathaway has sold its entire stake in electric vehicle company BYD.
After initially buying around 10 per cent of BYD at the time in 2008, for about $230m, Berkshire’s stake was worth around $9bn by 2022.
The selling began later that year and as of March this year, was complete, new filings show.
BYD shares dropped more than 3% on the news. Berkshire Hathaway made more than 20 times its initial investment.
Targeted social tariff could lift millions out of fuel poverty
10:00 , Karl MatchettA targeted social tariff offering discounted energy bills to those who need it most could lift millions out of fuel poverty in England and Wales, according to a report.
The report for energy firm Ovo by the Green Alliance think tank found a social tariff providing discounted energy bills for low-income households would lift more people out of fuel poverty than current support schemes while also preventing a squeeze on middle earners.
Ovo said it supported targeting households with unavoidable higher-than-average energy demand, such as those who live with disabilities, are older or live in high occupancy homes.
It urged the Government and industry to work together to find a “better way” of identifying these customers in need, using data that existed across the public and private sector.
Targeted social tariff could lift millions out of fuel poverty – report
US claims £1.3bn in tariffs from good imported from UK
09:49 , Karl MatchettThe first four months since the Liberation Day tariffs were announced have seen the US raise $1.36bn (£1.01bn) through goods bought from the UK.
That cost has been paid by US buyers of imported products.
It is six times more than the value paid across the same period in 2024, reports the Times, and is more than the tariff values paid on goods from France despite the UK having a lower tariff level.
Imports from China raised most - $36bn in just four months.
One research think tank estimated $122bn in total had been collected by the US across the period, paid for by American businesses and individuals importing those goods.
TikTok buyers revealed by Trump
09:20 , Karl MatchettThe US has been trying to strike a deal to buy TikTok from Chinese owners ByteDance for months now, with the social media app placed under a banning order before President Trump pushed it back - several times.
Now it appears a deal has crept much closer with some suggestion of an imminent report - and the names of some involved becoming clear.
Larry Ellison, Michael Dell and both Rupert and Lachlan Murdoch were name-checked by the president.
The latter two own and lead Fox corporation, while Dell is the world’s tenth richest person, CEO of the computer firm of the same name.
Ellison is second only to Elon Musk in that ranking, worth $367bn by himself - he founded and remains the largest shareholder of Oracle, as well as having a stake in Tesla.
Gatwick second runway shows Government ‘backing builders, not blockers’
09:00 , Karl MatchettGatwick Airport’s £2.2 billion second runway plan could create thousands of jobs and help “kickstart the economy”, Chancellor Rachel Reeves said.
In the privately financed project, the West Sussex airport will move its emergency runway 12 metres north, enabling it to be used for departures of narrow-bodied planes such as Airbus A320s and Boeing 737s.
This will enable it to be used for about 100,000 more flights a year.
Ms Reeves said: “This Government promised to kickstart the economy – and we are.
“A second runway at Gatwick means thousands of more jobs and billions more in investment for the economy.”
More details here:
Reeves: Gatwick second runway shows Government ‘backing builders, not blockers’
FTSE 100 falls and US stocks set to drop too
08:45 , Karl MatchettThe FTSE 100 is down 0.16 per cent this morning in a slow start to the week.
But longer-term context is important, says one expert.
“The FTSE 100 has dipped a touch this Monday morning, after a small retreat last week. Still, the index is up over 11.5% so far this year and up around 20% from its post-liberation day lows,” said Derren Nathan, head of equity research, Hargreaves Lansdown.
“However, UK stocks haven’t quite kept pace with US stock markets, which ended last week on yet another record high on hopes for a further relaxation in monetary policy over the remainder of 2025. The combination of structural value drivers from the Artificial Intelligence boom and higher than expected resilience within the global economy is helping investor confidence to keep its head above water.
“Wall Street is expected to edge down a little at the open. Markets are taking stock of guidance issued by the Trump administration over the weekend that revealed a $100,000 annual charge per employee of US workers holding an H-1B visa for skilled workers. It’s expected to apply to new applicants only, but it’s sparked some confusion amongst workers and enterprises alike.”
dCarbonX plan to build gas facility
08:24 , Karl MatchettA company called dCarbonX has plans to build an emergency gas storage facility, to help insulate Britain against the threat of energy blackouts.
Holding six days’ worth of gas would boost the current levels by 50 per cent, the Telegraph reports.
The UK’s current plans are for 95 per cent of energy to come from green sources but with gas reserves held for periods of volatility.
The company’s boss, Tony O’Reilly, said: “Without domestic gas storage, the UK is exposed to global gas market volatility, especially during winter.
“The question isn’t whether we need more storage, it’s whether we’re serious about building it.”
Business and Money - 22 September
08:16 , Karl MatchettMorning all, hope you had a good weekend.
A few bits to catch up on which broke across the business world last night so let’s get straight into it: airports, TikTok, tariffs, stock markets and more on the way.
