The Bank of England has been warning over ongoing inflationary pressures meaning there’s still a careful path to be walked before interest rates come down further - but governor Andrew Bailey has pointed to a softening jobs market too, with markets still expecting an August rate cut as a result.
In the stock markets, the FTSE 100 enjoyed a positive end to the week along with European stocks, while oil prices were muted at around $68 despite a slight rise on supply constraints. Shell also rejected talk over a bid to takeover rival BP, which arose this week.
Elsewhere, the Office for National Statistics have announced £10m of new investment to ensure their data improves over the coming years, while Business secretary Jonathan Reynolds says Tata Steel does not qualify for tariff exemptions on exports to the US. Nvidia, meanwhile, hit a new all-time high share price as the world’s most valuable public listed business.
Follow The Independent’s live coverage of the latest stock market and business news here:
Business news live - Friday
- Bank of England says jobs and pay being hit by tax rises
- UK car production falls to lowest levels in over 70 years
- Nike fears $1bn hit from impact of Trump tariffs
- Oil prices rise on lowered supply numbers
- Analysis: Would £200bn Shell-BP deal actually be a good idea for anyone?
Would Shell and BP creating a £200bn oil behemoth actually be a good idea - for anyone?
16:00 , Karl MatchettTakeover or merger talk around British oil giants Shell and BP is not new, but has certainly ramped up this year amid diverging fortunes.
Reports on Wednesday that the former were in talks to bid for the latter were quickly rejected, but speculation and questions remain.
Combining the third- and eighth-biggest firms on the London Stock Exchange to create what would be the biggest FTSE 100 firm would generate plenty of interest. And a combined £211bn market capitalisation - total company values by share price - would be a fine look on the face of it.
But there’s a lot more to consider than just a mega-merger’s size and, examining key areas in detail, the question could be asked...would it really benefit many key stakeholders at all right now?
Would Shell and BP creating £200bn oil behemoth actually be good - for anyone?
Business news live - Friday
06:58 , Karl MatchettGood morning and welcome to our daily rolling coverage of business and stock market news.
Ahead of the weekend we’ll be looking at further tariff-related news as the 90-day pause approaches its end, how the global stock markets fare and whether there’s further movement in oil prices.
Business news live - Friday
07:08 , Karl MatchettHere are the main stories from yesterday before we look at the overnight markets and more:
Business news live - Friday
07:20 , Karl MatchettFrozen tax thresholds have seen another half a million taxpayers dragged into the 40% bracket, data has shown.
The income tax total take has increased by more than £20bn in the past year.
AJ Bell say 1.23m people are now paying income tax on incomes above the additional 45% rate threshold - a 115% increase in the past three years alone.
Bank of England sees signs of pay and jobs being hit by tax rises
07:38 , Karl MatchettAndrew Bailey, the Bank of England governor, yesterday afternoon said there are signs that tax hikes are hitting pay and jobs - but there remains “uncertainty” over inflation.
“I am beginning to hear a bit more evidence of adjustments through pay and employment [rather than prices],” he said.
“The labour market has been very tight in the past few years. But we are now seeing signs that conditions are easing,”
Regarding the potential for interest rate cuts in August and beyond, Mr Bailey reiterated that the BoE would seek to stamp out inflation by cutting slowly and when appropriate.
“While the significant progress we have made on disinflation has allowed us to cut Bank Rate, we retain a restrictive monetary policy stance to squeeze out remaining persistence in inflationary pressures.
“Overall, interest rates remain on a gradual downward path.
“But monetary policy is not on a pre-set path, and at the June meeting, there was not a strong enough case to cut Bank Rate.
“As we meet for our August meeting in a few weeks’ time, we will assess the situation afresh.”
Stock market reaction
08:03 , Karl MatchettUS stocks rose yesterday on apparent conviction from investors that interest rates could soon be cut further.
Lower interest rates make equities more appealing because it encourages more investment from businesses, which could boost profits, as well as making it more worthwhile putting cash where it may earn more money than in a bank account with a sinking rate.
“The old saying ‘make hay while the sun shines’, could have been created for yesterday, with markets on both sides of the Atlantic blossoming in today’s benign climate, said Danni Hewson, head of financial analysis at AJ Bell.
“A stonking performance by chipmaker Micron has boosted US tech stocks, propelling the S&P and Nasdaq towards fresh records and perhaps finally laying to rest the uncertainty created by DeepSeek’s disruption earlier in the year.
“The genie is well and truly out of the bottle when it comes to businesses’ desire to harness the AI superpower and Micron’s bullish outlook suggests that trade tensions and global uncertainty haven’t put companies off investing in tools that should boost productivity in the long run.”
Asian stocks mixed overnight as Japan's Nikkei rises
08:20 , Karl MatchettJapan’s Nikkei 225 was the big winner overnight in Asian markets, jumping 1.4 per cent to hit intra-day five-month highs.
Sony and SoftBank were big winners on the day.
However, the Shanghai Composite dropped 0.7 per cent, while the Hang Seng in Hong Kong is 0.2 per cent down approaching close.
Australia and South Korea were also down, with India’s Nifty 50 and Saudi’s Tadawul All Share up.
FTSE 100 rises in early trading - JD Sports up 7%
08:36 , Karl MatchettThe FTSE 100 is up as trading begins ahead of the weekend.
A 0.3 per cent rise is spearheaded by JD Sports being up 7.59 per cent.
Defence firm Babcock is down a little over 2 per cent, which is probably profit taking after huge rises.
Both European flagships, the French CAC 40 and the German DAX, are up plenty this morning: 1 per cent and 0.7 per cent respectively.
Centrica to take 15% stake in Sizewell C nuclear plant
08:46 , Karl MatchettBritish Gas owner Centrica is set to match EDF for a 15 per cent stake in the Sizewell C nuclear project, report the FT.
Brookfield Asset Management also remain in talks over a potentially larger stake, the report states, with hopes a deal can be concluded before parliament recess on 21 July.
The UK government estimate 10,000 jobs will be created at Sizewell C.
Trump says China trade deal done - but offers few details
09:00 , Karl MatchettLast night saw President Trump announce a trade deal with China was done and signed, but no details were offered up.
“We just signed with China yesterday,” he said at a White House event, several weeks after saying the deal was done bar a sign-off from himself and President Xi.
Trade tariffs in April were announced starting with higher rates on China than elsewhere, which escalated into a back-and-forth where the effective tariffs were at one point around 140 per cent.
Several weeks ago Trump wrote on social media the tariffs would be 55 per cent for China exports to the US.
Unilever pay $1.5bn for care brand Dr Squatch
09:20 , Karl MatchettNew Unilever CEO Fernando Fernandez, appointed earlier this year in March, has completed a major deal with the $1.5bn (£1.1bn) acquisition of Dr Squatch.
The personal care brand business has built a following based on higher end premium products and viral marketing campaigns including celebrities such as Mike Tyson.
Unilever announced the deal at the start of this week without disclosing the full amount of the purchase, which the FT have now reported citing people familiar with the deal.
Cancer deaths cost UK economy £10bn a year
09:40 , Karl MatchettThe cost to the UK economy of people dying of cancer is around £10.3bn a year, claims a report by Cancer Research UK.
Each early death costs an average of £61,000, reported the charity, surmising the lost earnings and contributions that a person would have made.
Lung, bowel and breast cancer were the biggest contributors and are the three which cause the most deaths at youngest ages.
Nike plan to reduce China production due to $1bn tariff costs
10:00 , Karl MatchettNike reported better than expected earnings last night but said tariff charges will add $1bn to its costs.
About 16 per cent of the total shoes Nike import into the US come from China, the company said, with plans to reduce that number to “high single figures” by moving production elsewhere.
Price hikes were also detailed previously to offset some of the costs.
Shares in Nike are up more than 9.5 per cent in pre trading on the news, but are down more than a third over the last year.
Dutch government plan 70m euro AI facility
10:18 , Karl MatchettThe Dutch government have announced plans to build an AI facility in Groningen, pledging 70m euro (£59.6m) and asking the EU for a similar amount.
There are no major details over what the factory will be used for at present but European nations as a whole plan to invest 200bn euro in the InvestAI initiative.
That includes funds for research, building gigafactories and pushing innovation and development.
UK car production plunges to multi-decade low
10:48 , Karl MatchettBritish car production has sunk to the lowest level since 1949 amid tariff trade concerns.
The Society of Motor Manufacturers and Traders (SMMT) released data showing fewer than 50,000 cars and vans were produced in May, 33 per cent down year on year and other than the 2020 Covid shutdowns, the worst performance in 76 years.
Exports to the US fell 55 per cent and to the EU by 22.5 per cent.
Ten UK firms announce new bitcoin strategies
11:01 , Karl MatchettIs bitcoin now just a business plan? Dan Coatsworth, investment analyst at AJ Bell, explains how more and more firms are looking to hold it (or hodl it perhaps) and how that may be a consideration for British investors.
“Ten companies on the UK stock market have announced a change in strategy in the past month that involves buying bitcoin, with a further three UK-listed companies having already started this journey since last November. The trend is also in play in the US,” Mr Coatsworth said.
“In many cases, share prices have soared on the news as investors speculate these companies could be ‘the next MicroStrategy’. This is a US-listed data analytics company that has continuously raised money over the past few years to buy bitcoin, with its holding now worth $63.2 billion. Its share price has gone bananas, up 1,081% since June 2023.
“UK investors are not permitted to hold bitcoin directly in an ISA or SIPP (self-invested personal pension), so they’ve looked at alternative ways to get exposure, hence why MicroStrategy – or Strategy as it is now known – has come onto their radar.”
FTSE 100 up 0.45 per cent this morning
11:25 , Karl MatchettGood news for FTSE 100 investors today with the index on the rise.
It’s 0.45 per cent to the good this morning, with JD Sports still leading the way despite giving up some of its initial gains, still up 6.5 per cent.
The FTSE 250 is up 0.6 per cent too and in Europe there is green all over:
- Germany - DAX +0.7pc
- Spain - Ibex 35 +0.51pc
- France - CAC 40 +1.27pc
- Netherlands - AEX +0.71pc
- Euro Stoxx 50 +0.88pc
Former Centrica boss out of running for new BP chairman
11:42 , Karl MatchettThe former boss of Centrica, Sam Laidlaw, was reportedly in the running to take over from Helge Lund as the new chairman of BP next year.
However, the FT say he has told associates he withdrew from consideration after believing the company would either be sold off or be in need of massive restructuring.
BP said: “Our search to name a new chair — led by Amanda Blanc — is moving at pace and we have high-quality individuals in the process. It would be inappropriate to give a running commentary. As Amanda said at our AGM, we recognise that it is in everyone’s interest that an appointment is as swift as possible, without compromising the rigour of the process.”
China deal confirmed, 10 agreements en route for US
11:56 , Karl MatchettChina’s Ministry of Commerce confirmed on Friday that a trade deal has been agreed with the US, though details remain scarce.
Meanwhile, US commerce secretary Howard Lutnick said the country is all but ready to announce 10 major trading partners and trade agreements with them.
That has all combined to see investors aggressively bullish on Friday.
Oil and gold prices latest
12:20 , Karl MatchettAll eyes have been on oil prices over much of the last couple of weeks but they appear to be holding firm, comfortably below $70 for now.
Brent Crude has been bouncing between $67 and $68 for most of this week and is at the latter for now.
Gold, meanwhile, has slipped 2 per cent this week and is a little over 1 per cent down today at $3,295.
Technical analysts foresee potential downside to $3,200 support levels if it doesn’t hold around this price.
US stocks set to rise again as fear index drops 7%
12:42 , Karl MatchettThe Nasdaq is projected to open 0.48 per cent higher and the S&P 500 0.43 per cent up, when markets begin for trading in the US this afternoon.
After a session pushing higher on Thursday, it’s notable that investors are heading back into risk-on assets.
A further indication of that can be seen in VIX futures, which have dropped more than 7 per cent.
VIX is an index monitoring expected near-term volatility and when it drops lower, it suggests investors are positive. It is sometimes referred to as the fear index as a result: when it’s up, fear of volatility (and potential to lose money) is high.
Strikes at Heathrow end with 12.5% pay increase
12:59 , Karl MatchettStrikes at Heathrow by around 800 workers employed by James Wilson to aid passengers with restricted mobility have been ended after union body United announced a 12.5 per cent pay increase.
Pay will increase backdated to January by 7.5 per cent, with a further 5 per cent to come from April 2026.
An extra day’s leave, free airport parking and enhanced sick pay are also in the deal.
Unite general secretary Sharon Graham said: “This is what trade unionism in action looks like: Wilson James’ Heathrow staff stood together in solidarity to achieve fair pay and won a huge victory. As the union for the UK’s airport and airline staff, Unite is relentless in delivering better jobs, pay and conditions for our members.”
Stamp duty under fire from investment firms
13:30 , Karl MatchettSeveral investment firms have again asked the government to remove stamp duty when buying UK shares, as a major barrier to getting more people investing.
Retail investors and businesses alike have cited the lack of balance when buying UK versus overseas shares - there is no additional charge when putting money into a US-listed stock, for example.
Stamp duty is charged at 0.5 per cent when buying British shares, however.
AJ Bell estimates the cost to the Treasury would not be a meaningful one and have been among the firms asking for it to be removed or lowered, along with the likes of Hargreaves Lansdown and interactive investor.
Oil prices rise - but not due to Iran-Israel
13:45 , Karl MatchettAs mentioned earlier, the price of oil has increased - but not to anywhere near the levels of last weekend.
This time, the one per cent rise on show is due to lowered levels of stock, and the imbalance to US demand.
Crude inventories dropped by 5.8m barrels, data shows.
Phil Flynn, senior analyst with the Price Futures Group, said: "This type of report can refocus on U.S. supply and demand, and less on geopolitics.”
Asos bans customers after too many returns
14:21 , Karl MatchettSeveral shoppers have been banned from Asos under their ‘fair use’ terms after sending too many returns.
Customers report getting emails saying accounts would be deactivated after breaching those terms.
Asos said: “We recently closed the accounts of a small group of customers whose shopping activity has consistently fallen outside our fair use policy. This helps us maintain our commitment to offering free returns to all customers across all core markets.”
British billpayers saved £300m through energy flexibility in 2024
15:13 , PABritish billpayers saved more than £300 million through the UK’s growing energy flexibility market, according to figures released by the industry body for network operators.
The Energy Network Association (ENA) said the savings were driven by lower contributions to infrastructure costs, reduced connection charges and the increased use of low-carbon energy sources.
Some households and businesses also reduced their bills by changing the time or day they used electricity – such as by cooking or washing earlier or later in the day, or setting electric cars to charge at specific times.
British billpayers saved £300m through energy flexibility in 2024, figures show
New Look set for auction after bank talks
15:39 , Karl MatchettNew Look could be set for a high street exit, or at least change, after reports they have held talks with banks over a strategic review.
Sky News report the chain, which has about 340 shops, have been in talks which could lead to an “auction” for the business.
More than one approache have been made to the firm of late and a decision is expected in the near future.
Business news live
16:30 , Karl MatchettIt looks like the week will end on a positive note for most of Europe’s major markets, with the FTSE 100 up and even bigger gains visible across France and Germany.
The US is looking positive too - lots of green all around on a Friday afternoon.
That’s it for us today and this week, we’ll be back on Monday morning for more business and stock market coverage - have a great weekend all!
