The latest UK economic data reveal a GDP growth of 0.7 per cent for the first quarter of the year - but the jury is still out on what that means for the rest of 2025 after April and beyond brought both domestic and global challenges.
Tuesday provided another indication of the UK housing market, meanwhile, with Nationwide release their latest index to show house prices are growing more slowly, while homeowners and savers alike will be looking ahead to the next possible interest rates cut this summer. That latter group may have a more immediate issue to contend with though, with the Lifetime ISA set for reform and anticipated cuts to the Cash ISA also on the agenda.
In the stock markets, the FTSE 100 rose slightly on Tuesday after dipping a day earlier, while in the US the deadline for Donald Trump’s trade deals approaches.
Follow The Independent’s live coverage of the latest stock market and business news here:
Business news live - Tuesday 1 July
- Lifetime ISA set for reform with some losing more than they save
- Nationwide data shows house prices grew more slowly in June
- Cash ISA limit set to be cut next month
- Tesla shares drop more than 5 per cent on opening after Trump criticises Musk
Business news live - Tuesday
16:40 , Karl MatchettThat’s it for us here today, we’ll be back on Wednesday morning at 7am as usual to cover all the day’s business news and stock market movements.
There will no doubt be reaction to that AstraZeneca line as well as to more consumer-led matters such as the cash ISA reform which is coming.
Have a good evening and see you tomorrow!
AstraZeneca eye moving stock listing to US - reports
16:30 , Karl MatchettOne quick last story before we depart today and it might prove a huge one over time.
The biggest company on the London Stock Exchange, AstraZeneca, are considering moving their primary listing to the US, the Times are reporting.
CEO Sir Pascal Soriot has become frustrated with pricing and restrictions on products, the report states, though any plans to move would be met by opposition from the government and potentially board members.
No comment or timeframe is given - but it’s one to watch. The £160bn company would by a distance be the biggest blow possible for the LSE.
Stock markets mixed but FTSE 100 rises
16:13 , Karl MatchettA very up-and-down day in the stock markets and we don’t want to speak too soon but...it looks like the FTSE 100 might end up in the green today after all.
Ahead of closing time it’s 0.17 per cent up, with the FTSE 250 and the AIM both slightly higher at around 0.23 per cent up.
That’s better than most are faring on Tuesday:
- French CAC 40: -0.15pc
- German DAX: -0.76pc
- US S&P 500: -0.39pc
- Nasdaq: -1.27pc
Cash ISA allowance to be cut in blow to savers — here’s what you need to know
15:20 , Karl MatchettRachel Reeves is set to announce plans to cut the annual allowance for Cash ISAs in a push to encourage people to invest more.
It is expected the chancellor will unveil the measure in her Mansion House speech, which takes place on July 15.
That will be the first major alteration of ISA limits since 2017-18. Officials added that talks over the final figure were still ongoing.
ISAs allow everybody to save or invest up to £20,000 in a tax-free environment, though there are some restrictions on different products in the range – for example, £4,000 a year can go into a Lifetime ISA, which itself is set for reform amid criticism.
Giffgaff searching for new CEO
15:00 , Karl MatchettMobile and broadband provider Giffgaff are beginning the search for a new chief executive after announcing Ash Schofield will step down at the end of the year.
Mr Schofield has led the business for seven years and the company intend for his replacement to begin before the end of 2025, with the current CEO helping with the transition during that time.
“The decision to step down hasn’t been an easy one, but it’s the right time for me. I’ve seen giffgaff grow to over four million members while staying true to its values and its members,” Mr Schofield said.
“I’ve had an incredible journey with giffgaff and Virgin Media O2 spanning over two decades, but it’s time to pass the baton and find myself a fresh challenge."
Employment levels predicted to continue falling in 2025
14:39 , Karl Matchett“Though we forecast a gradual recovery in private sector employment will take hold in 2026, it's unlikely to be strong enough to prevent unemployment drifting up towards 5 per cent, from 4.5 per cent [earlier this year],” said chief UK economist Andrew Goodwin.
“Early data on the impact of the increases in employers' national insurance contributions and the national living wage in April suggest substantial job losses and falling vacancies in lower-paid sectors, such as accommodation and food,
“We think this is a one-off adjustment to the recent build-up in cost pressures rather than the start of a persistent decline in job numbers.”
Tesla shares poised to plummet almost 6% as Trump criticises Musk
14:21 , Karl MatchettDonald Trump and Elon Musk are at it again - the US president has criticised the Tesla CEO and said he will “take a look” at “deporting” him.
The latest spat stems from EV subsidies and a suggestion Tesla would face ruin without them.
Tesla shares are down 5.8 per cent in pre-market trading and about 9 per cent over the past week.
Whe the market opens shortly, the share price will be under $300 for the first time since early June.
Gold and oil both rise as caution returns
14:00 , Karl MatchettKey commodities had been on a small, slow downward trend over the weekend, but today both gold and oil are rising in price.
Gold is back up 1.64 per cent to $3,362, while Brent Crude is at $67.14 - that’s a 0.6 per cent rise.
Most of this is due to the approaching deadline of Donald Trump’s trade tariff agreement, the 90-day pause and with key areas like the EU yet to fully agree set deals.
The strength of the dollar is also a key factor and it has weakened considerably this year.
The surprising job AI won’t replace any time soon
13:30 , Karl MatchettWe’ve seen headlines over the past few days over AI replacing many jobs and vacancies for entry level positions being down by a third since Chat GPT became a thing.
Here’s a deep dive into what AI can and can’t do yet - and some surprises are in there over possible roles.
US stocks poised to open lower
13:12 , Karl MatchettStocks in the US will open lower this afternoon following Donald Trump citing his displeasure with Japan.
Talks over exports of rice, among other things, haven’t gone too well just yet - the president has spoken of a “letter” being sent.
The Nasdaq is set to open 0.33 per cent lower with the S&P 500 0.22 per cent down when markets start in an hour and a half.
More criticism over government plan to cut cash ISA
12:30 , Karl MatchettFair to say, the government’s apparent plan to cut the cash ISA limit is not being universally applauded.
Most experts agree that doing so will not encourage savers to invest more instead, at least as a sole means of pushing that transition.
Brendan Callan, CEO of trading platform Tradu, said:
“The government is facing the wrong direction. Time has shown us that, when encouraging people to invest, you have to use the carrot, not the stick.
“Savers aren’t held back from investing by a simple fear of investing; there’s a broader lack of excitement around UK companies, a dearth of blockbuster IPOs and, crucially, a stamp duty on share trading. This is essentially a tax on investing and actively discourages retail investors from getting involved in the stock market.
“Instead of trying to force people out of their savings and into the stock market, the government should take a more encouraging approach by removing barriers to investing. Making it easier and cheaper for people to invest is far more likely to boost retail participation than punishing them for not investing.”
FTSE 100 falls, Eurozone inflation at 2%
11:40 , Karl MatchettEuropean stocks are down today with the DAX at -0.37 per cent and France’s CAC 40 at a similar level.
That comes amid news the Eurozone inflation rate rose to 2 per cent for last month, up from 1.9 per cent.
That’s on the European Central Bank’s target.
As for the FTSE 100, after rising early on it’s now down 0.18 per cent as we head toward midday.
Elixirr move from AIM to main London Stock Exchange market
11:20 , Karl MatchettLondon-listed firm Elixirr has confirmed a move to the main market from AIM, in a bid to close its valuation gap.
Noting a share price increase of more than 250 per cent since going public in 2020, the company CEO said:
“This move is not only the next step for us as a global challenger consultancy, but also a strategic leap forward for our shareholders and clients. By joining the Main Market, we are opening up new opportunities for global investment, increasing our visibility, and reinforcing our commitment to building a billion-dollar brand while remaining dedicated to nurturing our challenger DNA, delivering outstanding results, and driving sustained value for clients, shareholders, and employees alike.”
EU to accept US trade agreement with 10% tariff
11:00 , Karl MatchettThe EU will accept a US trade agreement which has a 10 per cent tariff for the bloc, reports Bloomberg - but with key exceptions.
Sectors such as alcohol, semiconductors and pharmaceuticals should be lower than that, Brussels feels, but they only have until 9 July to come to a finalised agreement.
The Euronext 100 index is down 0.38 per cent today so far.
Are Premium Bonds still worthwhile?
10:39 , Karl MatchettThe Premium Bonds rate has been cut once more, with the prize rate down to 3.6 per cent from August.
Is it still worthwhile having your money in NS&I’s flagship product?
Albert Toth runs the numbers:
Premium Bonds cuts prize rate again – are they still worth it?
Rachel Reeves set to cut cash ISA allowance in blow to savers — here’s what you need to know
10:21 , Karl MatchettRachel Reeves is set to announce plans to cut the annual allowance for Cash ISAs in a push to encourage people to invest more.
It is expected the chancellor will unveil the measure in her Mansion House speech, which takes place on July 15.
The Financial Times cited government officials confirming the chancellor would lower the allowance, in what will be the first major alteration of ISA limits since 2017-18. Officials added that talks over the final figure were still ongoing.
Here’s all you need to know:
Entry level jobs fall by nearly a third since ChatGPT launch
10:19 , Karl MatchettThe number of entry level jobs comprised of junior positions, graduate roles and apprenticeships has fallen by almost a third (31.9 per cent) since the arrival of ChatGPT, research shows.
Job search site Adzuna found that vacancies looking for graduates had fallen to the lowest level since Covid, with entry level jobs now only accounting for a quarter of the total market, down from 28.9 per cent in 2022.
While replacing entry-level roles with artificial intelligence taking on tasks is part of the picture, rising labour costs - including increased National Insurance contributions - are also a factor, with rising salaries outstripping inflation until recently.
ChatGPT launched in November 2022, releasing several versions since then and starting what has been a new era of technological transformation. The company which owns it is now worth $300bn (£219bn), making it bigger than any public listed company on the London Stock Exchange.
Entry level jobs fall by nearly a third since ChatGPT launch
National Grid and SSE hit back at Ofgem
10:06 , Karl MatchettToday’s news Ofgem are raising bills will affect consumers - but big businesses, too, as Dan Coatsworth, investment analyst at AJ Bell, explains.
“Utility companies are in a constant battle with regulators over five-year pricing controls. These companies spend a considerable amount of money on upgrading infrastructure and they expect to be able to make a decent return on that investment. There is often a mismatch between what the regulator allows them to charge and what the utilities believe is fair.
“SSE is not happy with the current proposal from Ofgem regarding the next electricity pricing cycle. The utility doesn’t see eye to eye on the draft regulations, saying it doesn’t factor in true costs and implies it won’t result in adequate cash flow for the business.
“It’s perfectly normal for utilities to fight their corner until the eleventh hour. National Grid has issued a tamer response compared to SSE but is still pushing for better incentives.
“Investors seem encouraged by SSE and National Grid standing their ground and demanding more, given the share price rise in both companies on the news.”
Sainsbury's picks up supermarket sales
09:20 , Karl MatchettSainsbury’s is celebrating the highest share of the market it has held in nearly a decade.
The supermarket says it has grown its share for three years in a row and is now the highest since 2016.
Profit is expected to remain flat at around £1bn, with higher sales offset by lower profitability and price cuts.
Shares rose slightly after trading opened but are flat again now.
House price growth slowing: 'Too many sellers, not enough serious buyers'
09:03 , Karl MatchettMore now on house price growth data - and one industry expert suggests that a further lowering of prices is the only way forward at this point, with sellers tired of long wait times amid a “recalibration” of the market.
“The post-Stamp Duty lull in demand has collided with a deluge of supply,” Jonathan Hopper, CEO of Garrington Property Finders, said.
“In some areas, the flood of supply seems almost biblical. Estate agents are seeing a wave of new instructions that includes properties re-entering the market that were withdrawn from sale during last year’s uncertainty, as well as the traditional summer surge.
“This is not primarily a market correction prompted by falling demand, but one triggered by an inescapable imbalance: too many sellers, not enough serious buyers.
“On the ground, we are witnessing a clear behavioural shift. Many sellers are not financially distressed, but they are fatigued - tired of waiting for perfect conditions, and now motivated to act.
“In this environment, token price reductions of £5,000 to £10,000 just won’t cut it. The properties that are selling are those where sellers have responded with decisive, meaningful price adjustments, and their reductions are now showing up in the national data.
“If this trajectory continues, as we expect it will, the summer months may bring a series of increasingly visible price softening moments, driven not by panic, but by pragmatism.
“Sellers are being forced to adapt to a new normal, and the market data is beginning to reflect this sharp recalibration.”
FTSE 100 rises as Asia stocks fall
08:48 , Karl MatchettAsian stocks fell overnight despite a positive session in the US.
The S&P 500 closed 0.52 per cent up and the Nasdaq was 0.47 per cent up - but in Asia, the Nikkei 225, the Hang Seng and the Asia Dow were all down.
Japan’s index was hardest hit, -1.24 per cent at the close.
This morning however, the FTSE 100 is on the rise with British companies up 0.23 per cent in early trading.
Germany and France’s benchmarks are both flat.
Cash ISA set to be cut next month
08:05 , Karl MatchettRachel Reeves is set to announce cuts to the Cash ISA next month in her Mansion House speech next month.
There is no clarification yet on what the cuts will be, but previously there had been suggestion the limits could be brought down from £20,000 to £4,000.
To be clear, that’s the Cash ISA limit - not the overall allowance, which would remain at £20k.
It is likely to be part of a wider ISA refresh, aimed at getting more people investing. Industry experts have largely dismissed the idea that a Cash ISA cut would result in savers turning towards the stock market and say further education and guidance is needed.
Latest Nationwide house price data: Growing, but slowing
07:55 , Karl MatchettHouse prices are still on the up, but were doing so at a much slower rate in June compared to last year, Nationwide data shows.
House price growth was still rising at 3.5 per cent annually in May, but in June that dropped to 2.1 per cent.
The average house price was £271,619 and the area of England with highest growth was the north, at more than 5 per cent, while East Anglia grew at barely above 1 per cent.
“The softening in price growth may reflect weaker demand following the increase in stamp duty at the start of April. Nevertheless, we still expect activity to pick up as the summer progresses, despite ongoing economic uncertainties in the global economy, since underlying conditions for potential homebuyers in the UK remain supportive,” said Robert Gardner, Nationwide's chief economist.
“The unemployment rate remains low, earnings are rising at a healthy pace in real terms (i.e. after accounting for inflation), household balance sheets are strong and borrowing costs are likely to moderate a little if Bank Rate is lowered further in the coming quarters as we and most other analysts expect.”
Plug-in panels and boost to rooftop installations among Government’s solar plans
07:30 , Karl MatchettPeople living in flats and rented homes could get the chance to install “plug-in” solar panels on roofs and balconies under Government plans.
The move forms part of the solar road-map set out by the Government to rapidly speed up the rollout of solar power across the UK as part of its efforts to shift the country to clean electricity by 2030.
Ministers said households could save around £500 a year on their bills by installing rooftop solar panels, which could also boost jobs and improve energy security.
Plug-in panels and boost to rooftop installations among Government’s solar plans
Revealed: Two-thirds of small businesses would now vote Remain after profits hit by Brexit
07:18 , Karl MatchettTwo-thirds of small and medium UK businesses would now vote to remain in the EU after seeing their profits harmed by Brexit, new analysis shows.
A survey of more than 500 importers and exporters found 66 per cent would choose to stay in the bloc, up from 53 per cent who voted that way during the referendum in 2016. The percentage of those who would vote to leave was 29 per cent, down from 32 per cent.
The findings, from research carried out by Critical Research, appear to be a direct response to the fact that costly rising regulations and red tape burdens have harmed the profitability of their businesses.
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Two-thirds of small businesses would now vote Remain after profits hit by Brexit
Calls to reform Lifetime ISAs over ‘nonsensical’ rules causing savers to lose their own money
07:06 , Karl MatchettMPs have warned that those who invest in a Lifetime ISA (LISA) may get back less money than they put into the scheme.
LISAs are a product for first-time homebuyers or those wishing to save for their retirement that allow savers to deposit up to £4,000 per year under an arrangement that the government will top up the figure by an additional 25 per cent. They can be opened by any adult under 40 in the UK, and contributions count towards each person’s overall £20,000 annual ISA allowance.
However, the dual nature of the product has long been a target of criticism, as have the complex criteria for using the funds, which have led to many people losing more than they initially deposit. The £450,000 restriction on the value of the property that can be purchased has not risen with rising house prices, while to complicate matters further, two different versions of the product exist – the cash LISA, and the stocks and shares version, which allows the money in it to be invested.
Lifetime ISAs cause some savers to lose their own money and need reform, report warns
Business news live - Tuesday 1 July
06:58 , Karl MatchettGood morning and welcome to another day of business news on The Independent.
Looks like there may be a lot to get through including house prices, ISA reform, jobs and plenty more besides.
Let’s get to it.
