Stock markets rose in the UK and the rest of Europe on Monday, as investors sought to buy back in following last week’s falling share prices on the back of Donald Trump’s latest tariff announcement. The FTSE 100 enjoyed a rise before US stocks followed suit to move higher - though Switzerland’s index took a hit due to the unexpectedly high tariff placed on the nation. On Tuesday UK stocks rose early but finished flat.
Elsewhere, mortgage rates are starting to hot up again in anticipation of an interest rate cut from the Bank of England later this week. The likes of Nationwide and Barclays have been reducing two- and five-year deal terms, with hundreds of thousands of homeowners still set to renew their deals this year.
Meanwhile, the UK has agreed its latest trade deal with Mexico - albeit a more limited one surrounding pork products, worth an estimated £19m across five years.
Follow The Independent’s live coverage of the latest stock market and business news here:
Business news latest - Tuesday 5 August
- UK agree £19m pork deal with Mexico for selected suppliers
- Analysis: Guinness is booming but it's not helping parent company - why Diageo has fallen flat
- BP promises improvement amid shareholder unrest
- Diageo profits fall but interim CEO says new savings target 'not about job cuts'
- FTSE 100 climbs as medical equipment firm Smith & Nephew sees shares soar 14%
- Former fund manager Neil Woodford banned and fined by FCA
Business news latest - Tuesday 5 August
16:31 , Karl MatchettAn afternoon dip leaves the FTSE 100 all but flat; US stocks are down so far this afternoon.
That’s it for us today - we’ll be back tomorrow morning, 7am as ever with more companies news, stock markets updates and more.
See you then!
Business news latest - Tuesday 5 August
06:58 , Karl MatchettGood morning and welcome to our daily business news live blog.
Today as usual we’ll bring you the latest from company news, stock market updates and everything surrounding your money.
More to come on the car finance scandal compensation too no doubt.
Stock markets rose on Monday - Diageo tops FTSE 100 firms reporting today
07:07 , Karl MatchettAfter steep falls on Friday, stock markets around Europe rose once more yesterday.
The FTSE 100 climbed around 0.4 per cent, led by Lloyds rising having learned they’d need to pay out a lower maximum amount than expected over the car finance mis-selling scandal.
Today the earnings season continues with spirits and beer maker Diageo, which owns Guinness, Smirnoff and other brands, reporting their latest profits.
Diageo shares are down around 29 per cent in 2025 so far and saw the unexpected exit of their CEO last month.
BP confirms biggest oil and gas field discovery in 25 years
07:15 , Karl MatchettEnergy giant BP has announced its biggest oil and gas field discovery in 25 years after a drilling off the coast of Brazil.
The company’s vice president for oil production, Gordon Birrell, said it was a “significant discovery” and the largest since 1999, when a giant gasfield in the Caspian Sea was discovered. It is expected to contain a mix of gas and oil as well as condensate, which is a liquid form of natural gas.
The size of the field in the Bumerangue prospect is more than 300 square kilometres – about three times the size of central Paris.
UK secures deal with Mexico for access to pork market - estimated at £19m
07:30 , Karl MatchettThe UK government have announced a deal with Mexico to allow 12 businesses across England and Northern Ireland access to the pork market in the Latin American country.
Mexico’s pork consumption is growing at more than 5 per cent a year and the allowance is therefore estimated at around £19m over the first five years of the deal.
The current 20 per cent tariffs on British pork will disappear once Mexico ratifies the deal.
Those 12 companies are based across locations such as Hull, Bristol, Wrexham, Chesterfield, Ballymena, Suffolk and Antrim.
A government statement said it was the outcome of eight years of discussions between Defra, the Food Standards Agency and various industry bodies.
FTSE 100 rose yesterday - Lloyds the big winner
07:55 , Karl Matchett/PAAhead of the markets opening shortly, a quick look back at yesterday’s success stories.
The FTSE 100 rebounded on Monday after Friday’s tariff-related sell-off, lifted by gains in Lloyds Banking Group after a less severe than forecast motor finance ruling.
The FTSE 100 index closed up 59.72 points, 0.7%, at 9,128.30. The FTSE 250 ended 167.50 points higher, 0.8%, at 21,866.84, and the AIM All-Share closed up 1.73 points, 0.2%, at 758.89.
Lloyds rose 8.4% after a more favourable outcome to the probe into motor finance than had been expected.
Guinness is helping Wetherspoons thrive — so why is its own parent company struggling?
08:00 , Karl MatchettDiageo is the third-worst performer, in share price terms, in 2025 to date – down a whopping 29 per cent. Its chief executive left suddenly a few weeks ago. Today, it revealed profits are down by more than a quarter (27.8 per cent). And there are further uncertainties ahead for an incoming CEO to deal with.
The Guinness maker has been on a downward curve for three years. Now a new CEO faces a big turnaround task, writes Karl Matchett.
Guinness is helping Wetherspoons thrive — so why isn’t its own parent company?
BP CEO pledges improvement amid mounting shareholder pressure
08:27 , Karl MatchettBP’s chief executive Murray Auchincloss has pledged the oil and gas group will do “better for its investors” as pressure continues to mount.
Half-year profits have fallen by almost a third, though the most recent quarter was an improvement on the previous one.
With incoming chairman Albert Manifold starting at the company next month and assuming the role from October, Mr Auchincloss said a “thorough review” of BP’s portfolio is on the agenda and they will look to cut costs further.
The dividend was raised and a £565m buyback scheme was announced.
Mr Auchincloss added: “We are two quarters into a 12-quarter plan and are laser-focused on delivery of our four key targets - and while we should be encouraged by our early progress, we know there's much more to do.”
Diageo increases cost-saving target as profits slip
08:40 , Karl MatchettThe maker of Smirnoff, Guinness and Johnnie Walker scotch has seen profits fall, continuing a difficult year.
CEO Debra Crew left suddenly last month and no replacement has yet been named at Diageo.
A cost-cutting exercise has been extended from £500m to £625m but isn’t about job reductions, said interim CEO Nik Jhangiani.
Diageo said it expects these savings to come across the next three years through advertising and promotion efficiencies, reduced overheads and supply chain improvements.
Stronger sales of Guinness in the UK continued, despite supply issues earlier in the year which saw a shortage in some pubs.
FTSE 100 rises again as medical device firm S&N surges 14%
09:02 , Karl MatchettThe FTSE 100 has been on the rise again this morning, up 0.3 per cent - though it started even higher and has just pulled back slightly.
Among the big risers are Diageo (up 6 per cent) and miner Fresnillo (up 9 per cent) - but both pale into comparison next to Smith & Nephew.
The medical device maker is up 14.4 per cent this morning after announcing a $500m share buyback programme.
In Europe, the DAX is up 0.4 per cent and the CAC 40 in France is up 0.16 per cent.
Diageo analysis: Tough turnaround ahead
09:20 , Karl MatchettDiageo shares are up 6.5 per cent this morning after announcing their results - that’s based on slightly beating estimates and announcing further cost cuts.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, says there’s still a tough road ahead all the same...starting with needing to find a new CEO.
“Diageo's full-year results managed to stumble past analysts’ conservative forecasts, despite a weak underlying alcohol market. Guinness remained a stout performer, with yet another year of double-digit revenue growth,” Chiekrie said.
“Sales figures late in the year were helped by customers stocking up on booze before tariffs were expected to kick in. These ongoing tariff headwinds are expected to add around $200mn of extra costs annually. To help offset this, Diageo’s looking to streamline operations elsewhere in the business, with the group upping its guidance by $125mn, hoping to find a total of around $625mn of cost savings over the next three years.
“The hunt for a new leader remains ongoing. The sobering fact is that no matter who takes the reins, wrestling the group’s leverage down is likely to remain a key target. Diageo could look to sell a few brands to bring in some cash and speed up the process, but it’s hard to call which brands will fall on the chopping block. Given the group’s focus on delivering higher and more sustainable free cash flows, any future sales would likely be of lower-growth and lower-margin brands.”
River Island facing unclear future after creditors resist plan
09:40 , Karl MatchettHigh street store River Island’s fate rests with a judge after some creditors, including landlords, rejected restructure plans.
The company wants to shut some shops and reduce rents on others but needed 75% agreement from creditors to push ahead with the turnaround plan - which the Times reports it failed to get.
River Island has said it could run out of money by September if a plan is not approved.
A spokesman said: “In combination with the company’s transformation strategy, the plan is a proactive measure to place the company on a firm footing. We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the plan in the coming days.”
Elon Musk's Tesla share award: Excessive or inspired?
10:11 , Karl MatchettYesterday we brought you news that Elon Musk was handed a $29bn payday by Tesla, in the form of company shares.
Essentially, two years from now he’ll be able to ‘buy’ them for a little over $23 each - they currently trade for $310, making it a massive haul for him if he remains in place as CEO.
Good idea, or not?
“Only time will tell whether this latest award is excessive or inspired,” Richard Hunter, head of markets at interactive investor, told The Independent.
“Designed to keep the CEO at the company by increasing his share stake, some uncertainty has been removed by the award. That being said, the shares have suffered on falling sales across many of its geographies as Musk’s political involvement with the White House was badly received politically, as well as being a distraction for the individual.
“Historically, Musk has been seen as being the main driver and muse of the electric car company. While the shares are currently down by 19% so far this year, over the last 12 months the price remains up by 54%. Even so, the price is also significantly lower than its record high which was achieved in August 2020, such that repayment and justification of this huge award would be hard-earned.”
Former fund manager Neil Woodford fined £5.9m and banned from managing retail investors' funds
10:20 , Karl MatchettFormer fund manager Neil Woodford, who notably lost billions of pounds of investors’ money through risky bets across his Woodford Equity Income Fund, has been fined and banned by the Financial Conduct Authority.
Mr Woodford himself has been fined £5,888,800 and banned from senior manager roles as well as managing funds for retail investors.
The FCA also fined Woodford Investment Management, the overall business, £40m.
The two entities were responsible for managing liquidity in the fund, the FCA says, which fell in value from £10bn to £3.6bn before it was suspended, leaving investors’ money trapped and unable to be withdrawn.
Mr Woodford “made unreasonable and inappropriate investment decisions [and] disproportionately sold more liquid investments (those that are easier to sell) and bought less liquid ones over this period,” said an FCA statement.
“This meant that at the time of suspension only 8% of the investments held by WEIF could be sold within 7 days. Under rules in place at the time, investors should have been able to access their funds within 4 days.”
BP confirms biggest oil and gas field discovery in 25 years
10:41 , Karl MatchettEnergy giant BP has announced its biggest oil and gas field discovery in 25 years after a drilling off the coast of Brazil.
The company’s vice president for oil production, Gordon Birrell, said it was a “significant discovery” and the largest since 1999, when a giant gasfield in the Caspian Sea was discovered. It is expected to contain a mix of gas and oil as well as condensate, which is a liquid form of natural gas.
The size of the field in the Bumerangue prospect is more than 300 square kilometres – about three times the size of central Paris.
Renewables generate half of UK’s electricity in 2024 in new record high
11:00 , Karl MatchettRenewables generated more than half of the UK’s power for the first time in 2024 in a new record high for clean electricity sources.
Official figures show wind, solar, hydro and biomass generated 50.4% of UK power last year, up from 46.5% in 2023, due to record high levels of wind and bioenergy power.
At the same time fossil fuels – mainly gas – fell to a record low share of 31.8% of generation, with Britain’s last coal plant shutting in September 2024, the figures from the Department for Energy Security and Net Zero show.
Renewables generate half of UK’s electricity in 2024 in new record high
Saudi oil firm report tenth straight profit drop
11:29 , Karl MatchettSaudi Aramco has again recorded lower profits than the previous quarter - the tenth straight time it has done so.
“The decrease in revenue was mainly due to lower crude oil prices and lower refined and chemical products prices,” the company said in its report.
Dividends from Aramco are a key revenue for the nation which is trying to pivot away from reliance on oil, towards tourism, sport and business.
The Saudi government and the Public Investment Fund (PIF) are estimated to own 97-98 per cent of Saudi Aramco between them.
Wall Street banks warn clients of stock market downturn
11:40 , Karl MatchettSeveral banks on Wall Street are cautioning clients that a stock market pullback could be on the agenda.
Morgan Stanley and Deutsche Bank are among those suggesting the S&P 500 - the index of America’s top firms - is likely to face a near-term drop.
President Trump’s trade war, weaker economic growth and the potential for rising inflation are all cautionary markers.
The S&P 500 is up 7.6 per cent year to date and set to rise this afternoon when markets open.
Analysts are forecasting between a 10 and 15 per cent pullback this quarter.
Aldi loses title of UK’s cheapest supermarket
12:00 , Karl MatchettAldi has lost its title of cheapest supermarket in the UK for the first time in nearly two years, with rival Lidl taking its place.
Price analysis by consumer group Which? looked at an average basket of 76 grocery shopping products across July, including both popular brands and own-brands, with Lidl edging out its discount rival by less than £1 overall – or slightly more if loyalty cards were used.
Lidl’s total price was £128 with the loyalty card and £128.40 without, while Aldi came in at £129.25.
More notably, both those supermarkets worked out to be around £17 cheaper than Tesco and £40 cheaper than Waitrose, which was the most expensive at £170.91 overall.
More here:
FCA bans star investor Neil Woodford and issues fine of nearly £46m
12:20 , Karl MatchettThe Financial Conduct Authority has provisionally banned a former star City fund manager and fined him and his former company almost £46 million.
The financial watchdog said Neil Woodford put investors’ money at risk.
It said it will ban Mr Woodford from holding senior manager roles and from managing funds for retail investors.
Mr Woodford will be fined £5.89 million and Woodford Investment Management (WIM) will be fined £40 million.
More here:
FCA bans star investor Neil Woodford and issues fine of nearly £46m
EV sales slow as buyers await government grants
12:40 , Karl Matchett/PARegistrations of new cars stalled in July as many drivers delayed purchases of electric vehicles (EVs) until Government grants are rolled out.
The Society of Motor Manufacturers and Traders (SMMT) said 140,154 new cars were registered last month, down 5% from 147,517 during July 2024.
The first electric car models eligible for new Government grants were announced on Tuesday.
Drivers will be able to save £1,500 with the purchase of new Citroen e-C3, e-C4, e-C5 and e-Berlingo cars.
These are the first models approved under the new £650 million electric car grant.
The scheme will enable motorists purchasing a new electric car to save either £1,500 or £3,750, depending on the vehicle’s sustainability.
Premium Bonds: Where £100m of prizes remain unclaimed
13:00 , Karl MatchettMillions of Premium Bonds holders are sitting on cash prizes worth up to £100,000 which they are yet to claim, data from the competition operator has revealed.
There are more than £100m worth of prizes going unclaimed, the latest figures from National Savings & Investments (NS&I) shows, marking the first time the figure has tipped over the threshold.
Across all regions of the UK, there are 2,598,139 unclaimed prizes, ranging from the lowest amount of £25 to 11 jackpots of £100,000.
Albert Toth has the details:
£100m of Premium Bond prizes remain unclaimed – check if you’re owed a jackpot
London Stock Exchange boss wants tax breaks to incentivise domestic investing
13:20 , Karl MatchettThe chief executive of LSEG, the company which owns the London Stock Exchange, says UK pensions are effectively subsiding the American system instead of the domestic one.
“The issue is that the pension funds get £49bn a year in tax benefits from the government, from UK taxpayers," David Schwimmer said to Yahoo Finance.
“If they are getting those tax benefits and then they're investing in US equities, you basically have the UK taxpayer subsidising the cost of capital in, I'll say, the S&P 500, which doesn't make a ton of sense from a policy perspective.”
While Mr Schwimmer did not want a mandate in place for UK pension funds to have to invest in UK firms, he suggested that the tax breaks could be contingent on a minimum amount being put into domestic companies.
Rachel Reeves has suggested proposals which would see funds putting at least 5 per cent into UK assets by 2030.
National living wage likely to rise to £12.71 next year, advisory body estimates
13:40 , Karl MatchettThe national living wage could rise by as much as 65p an hour next year, an advisory body has estimated, as the terms of its annual review of wage rates were published.
Ministers are determined to deliver “a genuine living wage”, according to the Low Pay Commission’s (LPC) latest remit for increasing the so-called national living wage – the UK minimum wage for workers aged 21 and older.
At the moment, the national living wage is £12.21 an hour.
More here:
National living wage likely to rise to £12.71 next year, advisory body estimates
INDY MONEY POLL: Where do you shop?
14:00 , Karl MatchettWith news that Aldi has lost its “cheapest supermarket” title, we want to know: which store do you usually use for your main grocery shopping?
Interest rates likely to be cut - act now to get top rates
14:20 , Karl MatchettOn Thursday the Bank of England’s MPC meets. It’s virtually certain we’ll see a cut to interest rates down to 4 per cent.
That means if you’ve been mulling the idea of locking in a savings rate above that with a fixed term deal perhaps, now is the time to move.
“With inflation above target as the base rate falls again, securing a guaranteed return is increasingly attractive and, for many, a sensible move,” said Claire Jones, savings expert at Flagstone.
“Fixed term savings accounts help savers take action against stubborn inflation and the risk of it eroding real returns over time.
“Whereas base rate change is often priced into mortgage offers ahead of time, savings rates - particularly those for instant access accounts - tend to react quickly to base rate decisions, sometimes within hours. That’s particularly relevant now, with some instant access accounts still offering up to 50 basis points more than the best fixed-term rates.
“For savers who’ve been sitting on the fence, now could be the moment to act: lock in competitive fixed rates now before the market moves.”
Tesla tops trader activity in July
14:40 , Karl MatchettInvestment platform IG have shared data over which stocks their customers were trading most in July.
Tesla remains the top-ranked company in terms of overall trades - that’s all buys and sells, all UK customers, all month - but the number of those trades dropped by 21 per cent compared to the previous month.
The one-month share price change is -1.9 per cent in Tesla.
Also on the list of top five traded stocks were Nvidia, Coinbase, Microstrategy (now just Strategy) and Palantir.
The companies which saw the biggest sentiment swing for the month - a change either positively or negatively from short sellers to stock buyers - were Netflix (+52 per cent change) and Palantir (-55 per cent change), IG say.
Chris Beauchamp, IG Chief Market Analyst, said:
“Netflix’s rebound is a sign that retail traders remain drawn to brand-led names when there’s a whiff of recovery or value. Investors clearly see recent improvements in the company’s fundamentals and are responding in kind.
“Meanwhile, the sharp drop in FTSE sentiment shows how quickly positioning can shift, even in markets posting new highs. The July data tells a story of rotation - out of slower-moving assets and into opportunities that feel more speculative or growth-led.”
Is it better to overpay your mortgage or invest the money?
15:00 , Karl MatchettIt may be easier said than done, but the process of improving your financial standing over time can really be summarised in two steps:
First, spend less than you earn. And second, put the excess earnings to good use.
The first step is a matter of budgeting, and your options are simple: cut costs or increase income. At step two, your options become diverse and complex, and your choices can lead to very different outcomes over the long term.
Paying off high-interest debts and building an emergency fund are among the highest priorities. After that, you might be considering investing your excess cash or using it to overpay your mortgage.
These can both be good options, but if you want to be sure you’re making the smartest choice in your circumstances, here are some points to consider.
Becky Wilding compares the options:
Warning for savers as 300,000 more people set to pay tax on their savings
16:00 , Karl MatchettAround 300,000 more savers will have to pay tax on their savings interest than five years ago, stark new figures reveal.
The number has jumped from 3.06 million in 2020–21 to 3.35 million this year, according to new information obtained under Freedom of Information laws.
Harriet Guevara, from the Nottingham Building Society, which obtained the statistics, said they highlighted “a growing and often hidden tax burden on ordinary savers”.
Warning for savers as 300,000 more people set to pay tax on their savings
