Marks & Spencer have taken another step towards fully overcoming their cyber attack earlier this year by reinstating their Sparks loyalty card, including giving staff members an additional discount for a short period as a thank you. A series of cyber attacks on retail stores included hits on adidas, Harrods and Co-op. The latter said this week customer details of 6.5m people had been stolen in the breach.
In the stock markets, the FTSE 100 is just around the 9000 points mark at the end of the week, while bitcoin sunk back below $120,000. US stocks rose on Thursday with Microsoft edging closer to a $4tn market cap, following Nvidia which reached the milestone earlier this month, but were flat after opening on Friday.
Elsewhere, there continues to be reaction to Rachel Reeves latest growth plans, including getting more people investing and loosening red tape for businesses.
Follow The Independent’s live coverage of the latest stock market and business news here:
Business news live - 18 July
- FTSE 100 rises after opening, back above 9,000 points
- 500 job losses coming at Jaguar Land Rover
- M&S reinstate loyalty card and give staff extra discount after cyber hack
- GSK shares fall 6% after drug rejected by FDA panel
- Barclays cuts mortgage rates - lowest two-year fix now at 3.75%
Business news updates
16:20 , Karl MatchettThat’s it for our business and finance news coverage this week - it has been a particularly busy one.
We’ve had Rachel Reeves pushing for savers to become investors again, mortgage reforms, red tape-cutting, inflation data coming in hot at 3.6 per cent and job losses at more than one car manufacturer being announced.
We’ll be back on Monday with all the latest money, stock markets and companies news - until then, we leave you with the highlight news lines from the past day or two:
- Will interest rates be cut in August?
- Savers to be offered deals that could see them more than quadruple their wealth
- Lifetime ISA vs personal pension: Which is better for higher retirement income?
- M&S says Sparks membership deals ‘fully back online’ after hack
Business news live - 18 July
08:14 , Karl MatchettGood morning and welcome to our final business blog of the week. As usual we’ll have full stock market coverage, a look around Britain’s biggest businesses and bring you all the news and comment affecting your money.
FTSE 100 rises 0.4% after opening
08:21 , Karl MatchettThe FTSE 100 has opened 0.4 per cent up - putting it back above the 9000 points threshold.
Derren Nathan, head of equity research at Hargreaves Lansdown, says UK businesses have picked up on US stocks flying overnight and picked out a few companies in the news.
“The FTSE 100 has popped its head back over the 9,000 parapet this morning.
“Streamlining has been the order of the day with oil giant BP continuing its strategic refocus with an agreement to dispose of its US onshore wind business, BP Wind, in which the group has claims to 1.3GW of generating capacity.
“Health and hygiene company Reckitt, the company behind the likes of Dettol, Durex and Nurofen is to dispose of its Essential Home division in a deal worth up to $4.8bn deal.
“And iconic luxury brand Burberry has seen its first quarter retail revenue drop 2% to £433mn year-on-year when adjusted for exchange rates. However, investors can take some comfort that comparable store sales improved in all regions when compared to the previous quarter, and that Burberry remains on track to deliver £80 million in cost savings by the end of the financial year.”
Jaguar Land Rover to cut 500 jobs
08:48 , Karl MatchettVehicle manufacturer Jaguar Land Rover have announced 500 job cuts are incoming at management level.
A voluntary redundancy programme will be launched following falling sales, in part due to a pause in shipments to the US following tariffs.
JLR have also delayed the release of its new electric models for both brands, the Guardian reports, to allow for more testing and for demand to pick up.
M&S give staff short-term extra discount as thanks for dealing with cyber hack
08:57 , Karl MatchettMarks & Spencer say their loyalty card, Sparks, is finally back up and running after the cyber hack which hit the firm earlier this year.
The data breach is expected to cost M&S around £300m.
Customers who had birthdays in May and June will get a loyalty card gift this month instead, as well as July cardholders.
Additionally, M&S have upped the discount for their shop staff from 20 per cent to 30 per cent for four days as a thank you for them dealing with the fallout of the hack.
Nissan to close flagship factory with 3,900 workers to cut costs
09:20 , Karl MatchettNissan is closing a flagship factory to cut costs and moving all its production there to another plant.
Vehicle production at the Oppama plant in will end at the end of the 2027 fiscal year, in March 2028, the Japanese automaker said Tuesday in a statement.
The Oppama plant has been a prized symbol for Nissan Motor Corp., which rolled out its Leaf electric car there in 2010, ahead of key rivals.
More details:
Nissan to close flagship factory with 3,900 workers to cut costs
GSK share price hammered after drug regulator hit
09:44 , Karl MatchettUK pharma firm GSK is down more than 6 per cent today after an FDA panel rejected approving a new drug over side effect concerns.
“A troubling £3.8 billion has been wiped off the value of GSK after the US drug regulator cast doubt over its blood cancer drug, Blenrep, being approved for use,” explained AJ Bell’s Dan Coatsworth.
“The FDA has voted against the proposed dosage from a benefit/risk perspective. It means the likelihood of Blenrep’s approval next week is looking extremely slim.
“There is always a high risk with drug developments and pharmaceutical companies are no strangers to setbacks. However, Blenrep was particularly important to GSK, with analysts forecasting peak annual sales in the region of £2.9 billion and the drug had one of the highest probabilities of approval in its pipeline.
“This situation, along with the prospect of new tariffs on drugs imported into the US, means GSK is suddenly on the sick bed. GSK has lost nearly a tenth of its market value in the past eight days, which is worrying for a company of its stature.”
Self assessment deadline approaching for second payment on account
10:00 , Karl MatchettSelf-employed? Big day coming up - also for those who declare additional earnings or otherwise complete a self assessment.
The deadline is approaching for the second payment on account, so make sure you don’t miss it...it can be costly to do so, as Claire Trott from St. James’s Place, says: “With there now less than two weeks remaining until HMRC’s second Self-Assessment payment deadline on 31st July, it’s vital that taxpayers check what they owe and ensure payment is made on time to avoid facing penalties.
“This deadline specifically applies to those who make ‘payments on account’ - advance payments towards their Self-Assessment tax bill. These typically affect self-employed workers whose last tax bill was over £1,000 (and who haven’t already paid more than 80% of their total tax due), as well as those with other sources of untaxed income above HMRC’s threshold.
“While these payments are intended to help individuals spread the cost and stay on top of payments, missing the deadline can have serious financial consequences. HMRC currently applies a late payment interest rate of 8.25% on any unpaid amount after the deadline, and late payment penalties increase the longer the tax remains outstanding.”
Retail growth in Scotland ‘fizzled out’ last month
10:20 , Karl MatchettThree months of growth in the Scottish retail sector “fizzled out” in June, analysts have found.
Total sales in Scotland decreased by 0.4% compared to June 2024, where they had also decreased by 3.4%, according to the Scottish Retail Sales Monitor.,
Goldman Sachs predict two more interest rate cuts this year
10:40 , Karl MatchettSven Jari Stehn, Goldman’s chief European economist, says Bank of England interest rate cuts are still likely not just in August, but also in November and December.
“While the hurdle for speeding up cuts in September looks higher after this week’s data, we now expect sequential cuts from November until reaching a 3% terminal rate in March 2026 (versus February before). That is, we now expect a total of five cuts this year (previously six) and two next year (previously one),” read the client note.
That would put the Bank Rate at 3.5 per cent by the end of 2025, further falling to 3 per cent by March of next year.
Lifetime ISA vs personal pension: Which is better for higher retirement income?
11:06 , Karl MatchettIf you don’t qualify for an employer pension, or you’re looking for a way to supplement yours, both a Lifetime ISA and a personal pension, such as a SIPP (a self-invested personal pension), can be effective retirement planning tools.
They have a lot in common: they’re both tax-efficient, they hold a similar range of investments - Lifetime ISAs are a little more restricted - and most compellingly, contributions to either are topped up by 25 per cent, albeit in different ways.
At first glance, it may seem that you could pay the same amount into one or the other and they would deliver an equal income in retirement. This isn’t the case. Here’s which could provide a higher income for you, and why.
Money writer Becky Wilding explains:
Lifetime ISA vs personal pension: Which is better for higher retirement income?
Barclays makes more mortgage rate cuts
11:28 , Karl MatchettBarclays have cut interest rates across 32 mortgage products, effective from today.
The bank are claiming “market-leading” rates across two-year fixed offerings, the lowest of which has now dropped to 3.75 per cent - that’s a two-year fixed at 60 per cent LTV, with a product fee of £899.
Most of the rest cut this time are across 60 and 75 per cent LTV offers, for two, three and five-year deals.
Lloyds boost first-time buyers with extra lending
11:48 , Karl MatchettSticking with mortgages, Lloyds have announced they’ll make an extra £4bn of lending available for first time buyers.
That comes after mortgage lending rules were changed to allow deals of higher than 4.5 times income for some people.
Lloyds say a household income of £50,000 and a deposit of 10 per cent will now increase the maximum loan available from about £224,500 to around £275,000.
Barclays tells staff to up their office attendance
12:02 , Karl MatchettBarclays has told staff to come into the office for an extra day each week, making it the latest company to tighten its hybrid working policy.
The bank said in a memo to its 85,000 employees that they will need to come into the office for the extra day, which for most workers means three days a week instead of two.
Large corporates have been rolling back their flexible working policies brought in during the Covid-19 pandemic in recent months.
More here:
Barclays hardens stance on hybrid working as staff told to come into office more
FTSE 100 risers and fallers: Antofagasta, M&S, GSK
12:20 , Karl MatchettThe FTSE 100 is up today...but only just. After a 0.4 per cent rise earlier on, a sell-off has taken the index back to almost flat, just 0.06 per cent up.
Today’s biggest risers are miner Antofagasta (+2.4pc), Melrose Industries (+2.24pc) and Schroders (+2pc), with Marks & Spencer up 1.8 per cent too.
At the other end, pharma firm GSK is the biggest faller, down more than 6 per cent, while Barclays (-1.1pc) and Mondi (-2.7pc) have also taken a hit.
As unemployment hits a four-year high, Rachel Reeves must now do whatever it takes
12:41 , Karl Matchett“We believe in the dignity of work and we believe in the dignity of every worker.” So said the prime minister, Sir Keir Starmer, in making the case for a since neutered welfare reform programme.
Yet at the very same time, other government policies have compromised the ability of people to find that work, as the latest official figures make clear.
At 4.7 per cent, unemployment is now at its highest level in four years, while vacancies have fallen for three.
James Moore examines the growing issue of unemployment:
As unemployment hits a four-year high, Rachel Reeves must now do whatever it takes
US stocks set for marginal rise on Friday
13:03 , Karl MatchettUS stock markets will open soon and futures show them primed for a small rise.
The S&P 500 and Nasdaq are both showing gains of about 0.05 per cent, with the Dow Industrial at 0.08 per cent.
Much of Europe has earned similarly small gains so far on Friday, with French, Dutch and Swiss indices all up around 0.12 per cent - but Germany’s DAX is down 0.2 per cent today and Spain’s IBEX 35 is down 0.14 per cent.
Bank of America changes Bank of England interest rate prediction
13:20 , Karl MatchettThe Bank of England will meet next month and the expectation is that interest rates will be cut to 4 per cent.
However, while earlier we saw Goldman Sachs analysts revising down estimates to three more cuts this year and a 3 per cent rate by March 2026, Bank of America is being more cautious in its prediction.
Sticky inflation and jobs data not being as weak as expected means BoA sees just two rate cuts this year, then one more early next year at a quarterly pace, for 3.5 per cent base rate by February 2026.
Moves to ban ‘exploitative’ unpaid internships a step closer
13:40 , Karl MatchettMoves to ban the use of ‘exploitative’ unpaid internships have come a step closer after a Government announcement on Thursday.
Ministers launched a call for evidence into the practice, saying it formed part of its plans for the biggest upgrade in workers’ rights in a generation.
The Government said internships offered young people invaluable experience as they build their careers, but added that when they were unpaid or paid below the national minimum wage, they created barriers to equal opportunity based on where people live, how old they are, or their social background.
Water regulator could be abolished - reports
14:05 , Karl MatchettThe Guardian is reporting Ofwat, the national water regulator, will be abolished through a government recommendation.
A review will come back to MPs next week and the expectation is that a new regulator will be created, the report claims.
Water companies pay out vast dividends to shareholders but have failed to update their systems to prevent sewage spills, water leaks and rising costs to consumers.
Properties with sea view come with £88k price premium
14:30 , Karl MatchettAnalysis on the property market has shown homes with a sea view in the UK carry an average premium of £88,000.
Rightmove say that can represent almost a third of the total cost being added on, having measured over 200 coastal areas.
Further analysis by Zoopla suggested one million homes across the UK have seen their price rise by 50 per cent or more since 2020, as property costs continue to surge.
How mortgage market changes could help first-time buyers onto the property ladder
15:01 , Karl MatchettFirst-time buyers may be set for a leg-up onto the property ladder thanks to changing attitudes from the financial regulator - but there are risks to the changing landscape.
Money writer Marc Shoffman examines the changes, why it might make it easier for first-time buyers - and what the potential drawbacks could be.
How mortgage market changes could help first-time buyers onto property ladder
Crude oil price rises above $70
15:30 , Karl MatchettThe cost of Brent Crude Oil has risen back above $70 following an increase of more than 1.2 per cent today.
After the situation around Israel and Iran steadied somewhat a few weeks ago, the price did drop from $74 back to around $68 or so - but a slow and steady creep back up has been the theme of late.
EU sanctions on Russia appear to be the reason for the latest push higher, which leaves Brent at around $70.40.
Martin Lewis’ charity says DWP is ‘more aggressive than banks’ in clawing back debt
15:55 , Karl MatchettThe Department for Work and Pensions (DWP) is carrying out “aggressive and rapid” debt collection practices which are more severe than most banks, a charity founded by Martin Lewis has claimed.
The Money and Mental Health (MMH) Policy Institute says that the way the DWP treats people who are overpaid benefits is “harsh”, and risks putting vulnerable claimants at risk.
Martin Lewis’ charity says DWP is ‘more aggressive than banks’ in clawing back debt
US stocks fall on opening, FTSE 100 settles under 9,000
16:10 , Karl MatchettLooks like - barring a late surge - the FTSE 100 will be staying just under the 9,000 points threshold again across the weekend.
The UK’s index remains up almost 0.2 per cent for today, a few minutes before the close.
In the US, all three major indices are in the red after opening, with the Dow (-0.3pc), Nasdaq (-0.05pc) and S&P 500 (-0.02pc) giving up some recent gains.
Both the latter two have hit recent highs, as well as the FTSE 100.
