Economic experts have said they expect UK inflation to remain constant for June when data comes in next week. Barclays analysts suggested a 3.4 per cent rate would again be seen, driven by food prices continuing to increase. Official ONS data will arrive on Wednesday - though before inflation figures, ONS revealed today that the UK economy contracted by 0.1 per cent in May.
The battle for the future of the cash ISA continues to rage meanwhile, with Rachel Reeves set to announce plans in her Mansion House speech next week and the Building Societies Association telling her it would be a mistake to ditch the £20,000 allowance.
In the stock markets, both the Nasdaq in the US and the FTSE 100 in the UK have hit new all time highs over the last couple of days, as investors largely set aside concerns with Donald Trump’s constant flip-flopping over tariff rates.
Follow The Independent’s live coverage of the latest stock market and business news here:
Business news live - Friday 11 July
- Labour warned over AstraZeneca plans to exit London
- UK economy shrinks 0.1 per cent in May
- Rachel Reeves comments on 'disappointing' GDP figures
- Bitcoin surges 6% to another new record high
- New lenders join sub-4% mortgage wars - details here
- Cash ISA reform paused after criticism
- Silver rises to highest price in 14 years
FTSE 100 falls but still ends the week higher
16:58 , Karl MatchettThat’s it for us for today and the week - hope you all enjoy the weekend, sunny as it looks set to be.
For our closing note, the FTSE 100 has finished the day 0.38 per cent down, but still clocks a week more than 1.3 per cent up, particularly after a strong day yesterday.
On Monday it starts all over again - and next week we have the chancellor’s Mansion House speech to look forward to as well as official inflation data.
See you then!
Business news live - Friday 11 July
06:57 , Karl MatchettGood morning and welcome to our final day of the week covering the rolling business and stock market news.
Why a wealth tax in the UK would fail, according to experts
07:06 , Karl MatchettAny attempt by Rachel Reeves to plug the gap in the UK’s public finances through a wealth tax would be “naive”, with very few success stories from other nations, experts have warned.
The chancellor may need to find as much as £30bn in savings through either cutting costs or raising taxes ahead of her Budget, with Keir Starmer’s government under pressure to find ways of raising funds for the public purse.
But a leading tax lawyer told The Independent a wealth tax would actually have a detrimental effect on the UK’s tax take – and that the government would be “arrogant” to think it would work in this country.
Read more here:
‘Naive and arrogant’: Why a wealth tax in the UK would fail, according to experts
Labour warned over potential AstraZeneca loss
07:16 , Karl MatchettFormer chancellor Lord Norman Lamont has told the government that the loss of AstraZeneca, the biggest public listed company on London’s FTSE 100, would be a huge blow.
The pharmaceutical firm’s CEO has pondered moving the listing to the US, which would mean the departure of a £160bn giant at a time Labour are trying to encourage economic growth and increased investing by private citizens.
He said: “The loss of AstraZeneca, were it to happen, would be a devastating blow to the London Stock Exchange.
“Is it not therefore very important, if we are to retain the listings, that the Government have a supportive policy for life sciences in particular?
“Is it not regrettable, first, that the life sciences review has not yet appeared and, secondly, that the Government refused to back the vaccine plant at Speke near Liverpool?
“Is it not important that, if we want to retain the listings, which will mean retaining the research, development and employment, we have a proper strategy with these companies and do not just regard them as cash cows but valuable investments to be encouraged?”
Can FTSE 100 finish week strongly?
07:28 , Karl MatchettThe FTSE 100 had been on a fairly flat trajectory for most of the week up until the last couple of days - and yesterday was a bumper day with the index closing 1.2 per cent up.
Barring some pretty bad news it should finish in positive territory for the week, given it’s up almost 1.8 per cent all told, but profit-taking is always possible after the index hit a new all time high level.
The 9,000 milestone is now very close indeed.
UK economy shrinks for second month in a row
07:38 , Karl MatchettMay figures are in for the UK’s GDP and it’s more bad news for Rachel Reeves and co.
Data from the Office for National Statistics (ONS) shows the economy shrinking 0.1 per cent following April’s more stark 0.3 per cent contraction. Lower production and construction were partly to blame for May’s disappointing figures.
“May’s fall in production was driven by oil and gas extraction, car manufacturing and the often-erratic pharmaceutical industry,” said ONS director of economic statistics Liz McKeown.
“While services grew overall in May with a strong month for legal firms, which recovered from a weak April, and computer programming, these were partially offset by a very weak month for retail sales.”
Reeves admits 'disappointing' GDP figures
07:53 , Karl MatchettOn those economic figures, chancellor Rachel Reeves said:
“Getting more money in people’s pockets is my number one mission. While today’s figures are disappointing, I am determined to kickstart economic growth and deliver on that promise.
“The choices we have made in our first year in government have seen us extend the £3 bus fare cap, fund Free School Meals for over half a million more children, press ahead with plans to deliver free breakfast clubs for every child in the country and increase the National Minimum and National Living Wage, giving a pay rise to 3 million workers.
“There’s more to do, that’s why in the Spending Review we boosted investment and jobs, through better city region transport and record funding for affordable homes, as well as backing major projects like Sizewell C.”
Bitcoin hits new record high after 6% surge
08:10 , Karl MatchettBitcoin has shot up again, with a six per cent rise putting it to a new all time high.
That put it briefly above $118,000, though it has now fallen back slightly to $117,500, still well above the $107-109k band it travelled along at for some time.
Our tech expert Anthony Cuthbertson notes that the new record puts bitcoin’s market cap above $2.3 trillion, ranking it above tech giants like Alphabet and Meta. While still only a fraction of gold’s estimated market cap of $22 trillion, it has now overtaken silver.
Barclays join mortgage wars with two new sub-4% offers
08:20 , Karl MatchettWith interest rates still projected to fall slightly across the rest of this year, the forward-looking mortgage market has seen lenders slash rates in a bid for custom.
Well over 1.5m people are expected to renew mortgage deals across 2025, making it a key time for custom for the biggest banks and building societies.
As of today, two more products have been cut by Barclays to sub-4 per cent interest rates, joining the likes of NatWest and HSBC in offering such low repayment terms.
As David Stirling, director at Mint Mortgages & Protection, notes however - you do need a sizeable amount of cash in your pocket to benefit from the very best deals.
“The mortgage market is heating up as many major lenders deliver back-to-back rate cuts, signalling fierce competition ahead as borrowing costs tumble,” he said. “Momentum is really gathering pace this week as Barclays, Leeds and TSB enter the fray and announce rate cuts, with many sub-4% deals now available - if you've got a chunky deposit.”
More here:
Barclays launch new sub 4% mortgage deal to compete with best on market
FTSE 100 flat, BP rises
08:56 , Karl MatchettA slow start to the day for the FTSE 100, down 0.08 per cent.
BP is the biggest riser so far, up 2.5 per cent, but there’s a lot more red than green across those hundred companies on Friday.
That said, it has generally been a strong week for the index of the biggest UK firms.
Overnight, Asian stocks were mostly up except Japan’s Nikkei 225, which took another hit.
Cash ISA changes could mean savers hit with bigger tax bills
09:10 , Karl MatchettTalk of cash ISA allowance reductions has been met with fierce resistance, with Coventry Building Society now explaining why it could net the Treasury a significant amount - but cost people even more.
Jeremy Cox, head of strategy at Coventry, said: “Savers are facing a double hit. First, frozen tax thresholds are quietly dragging millions into higher tax brackets. Now, the potential cut to the cash ISA limit risks punishing those who simply do the right thing by putting money aside.
“For many - especially the half a million people expected to move into higher-rate tax next year - the blow will be even harder. With their Personal Savings Allowance slashed in half, they’ll either pay more tax on their savings or be pushed toward riskier investments they may not fully understand.
“Interest earned outside an ISA counts toward total income — meaning even modest savings can pull people into a higher tax band without them even realising.
“For example, a basic-rate taxpayer earning £50,000 who receives £1,000 in interest from non-ISA savings would tip over into the higher-rate bracket. This shift halves their Personal Savings Allowance, meaning the remaining £500 of interest is taxed at 40%, costing them £200.
“The Treasury may gain billions from these changes, but it’s responsible savers who’ll end up footing the bill through higher taxes on their hard-earned money.”
itcoin price all-time high: What’s behind crypto’s record-breaking rally – and how high could it go?
09:25 , Karl MatchettThe price of bitcoin has hit a new all-time high, reaching above $118,000 (£87,000) for the first time in its history.
The latest rally comes despite global economic and geopolitical uncertainty, leading to speculation that investors are increasingly viewing the world’s most valuable cryptocurrency as a safe-haven asset like gold.
So what caused this shift in attitude, and where will bitcoin’s record-breaking rally go from here?
Anthony Cuthbertson explains...
What caused bitcoin’s latest price record – and how high could it go?
UK exports to US returned to growth in May as trade deal cut some key tariffs
09:51 , Karl MatchettUK exports to the US returned to growth in May, official figures show, after the two countries agreed a trade deal that softened the blow of President Donald Trump’s tariff hikes.
Goods exports rose by £300 million during the month, the Office for National Statistics (ONS) revealed.
This followed a steep drop in April when exports declined by £2 billion – the largest monthly decrease since records began in 1997.
The value of goods shipped across the pond nonetheless remained relatively low in May, the ONS said.
UK exports to US returned to growth in May as trade deal cut some key tariffs
Investment Association calls for improvements in pension and retirement guides
10:24 , Karl MatchettThe Investment Association has published a report with four key findings in pursuit of better retirement solutions for people.
Those recommendations include:
- Better support for pension contributors who don’t get individual financial advice (so, many of us who are on workplace pensions)
- For advisers to develop better risk practices for people’s risk and loss possibilities in retirement
- Ensuring value for money in retirement
- Reform of rules to allow better retirement-oriented products
Much of this involves changes for firms in the investment industry but with recent law changes over how much guidance can be given to people who don’t get actual paid-for financial advice, the emphasis continues to be a gradual shift towards helping people point toward better long-term decisions and returns.
Reeves pauses cash ISA changes after backlash
10:46 , Karl MatchettRachel Reeves has put her plans to reform cash ISAs on hold after speculation that she was considering reducing the allowance for tax-free cash savings was met with criticism from banks and building societies.
Savers have a £20,000 annual allowance which can be split across ISA types, but the most frequently used version is the cash ISA, which gives people a tax-free savings account. However, the government wants to encourage more people to start investing, to generate better long-term returns.
Next week, the chancellor was expected to use her Mansion House speech to cut the limit on how much money could be put in the cash ISA product annually and potentially announce changes to the Lifetime ISA too, but that reform will now have to wait, with reports saying Ms Reeves wants to continue to consult with industry experts amid conflicting ideas on how to proceed.
Full details here:
Stock check: FTSE 100 and European shares fall on Friday
11:01 , Karl MatchettThe FTSE 100 had enjoyed a good week on the rise but it’s all coming to an end today.
Between poor economic data, more tariff turnarounds and general fatigue, looks like investors are exiting positions en masse ahead of the weekend.
Around a 0.5 per cent drop for the FTSE 100 today so far - in Europe it’s even bigger, with France and Germany seeing their main index down 0.9 per cent or more.
“The UK economy being stuck in the mud and the threat of high tariffs on Canada won’t be a shock to markets, but they are hard to ignore,” said Dan Coatsworth, investment analyst at AJ Bell.
“European indices are in the red and futures prices imply Wall Street will follow the same path when it opens for trading.
“Whether this is investors being reminded of headwinds or simply pausing for breath, it’s clear that uncertainty will prevail well into the summer.
“The corporate reporting season begins in earnest next week with the big US banks. That will shift the focus to profits and outlook statements, giving valuable insight into how the business world is coping with a multitude of pressures. Any corporate optimism is likely to prompt a tickertape parade on the markets as investors look for confirmation that tariff uncertainty hasn’t caused widespread damage to earnings.”
Heathrow to invest £10bn in upgrades - airlines to bear the cost
11:56 , Karl MatchettAirlines can expect to be charged more by Heathrow Airport as it bids to invest £10bn in upgrades over the coming five years.
An extra 10m passengers a year would be the upshot if plans are approved.
£2bn will come from shareholders with the other £8bn passed on in costs to airlines - who themselves usually pass on such increases to passengers paying air fare.
Robinhood offering 24/7 trading
12:23 , Karl MatchettInvesting platform Robinhood is offering an expanded service for 24-hour trading in Europe.
The company will use tokenised US stocks and ETFs to do so - digital versions of real equities, issued on blockchain.
"Right now, what we're launching in Europe is that EU customer will have access to 200 plus US stocks and ETF tokens, and the stock token holder will also be able to receive dividends directly into their app," Robinhood crypto senior vice president and general manager Johann Kerbrat said to Yahoo Finance.
US stocks projected to fall when market opens
12:46 , Karl MatchettLooking ahead to the markets opening in the US this afternoon, futures trading shows a fall is incoming.
The S&P 500 is 0.62 per cent down, with the Nasdaq at 0.53 per cent negative.
Smaller firms in the Russell 2000 are down almost a full 1 per cent.
The same red numbers can be seen around Europe today, with the FTSE 100 down 0.5pc, Germany’s DAX down 1pc and Spain’s Ibex 35 down 0.8pc.
Flutter takes 100% ownership of US firm FanDuel after £1.3bn deal
13:10 , Karl MatchettPaddy Power owner Flutter has taken complete ownership of US betting and gaming business FanDuel.
The London-listed gambling giant said it has purchased the remaining 5% of FanDuel it did not own from Boyd for 1.76 billion US dollars (£1.3 billion).
It now has 100% ownership of the business, which has rapidly grown in recent years on the back of easing sports betting rules in US states, after first investing in the firm in 2018.
The move values FanDuel at around 31 billion US dollars (£22.9 billion).
More from PA here:
Flutter takes 100% ownership of US firm FanDuel after £1.3bn deal
Recovery in London offices predicted
13:31 , Karl MatchettJPMorgan analysts have highlighted an improvement in London’s office space market.
Rental growth is continuing and vacancy rates are dropping, the investment bank said.
Great Portland Estates have suggested the price of office real estate could rise this year by up to 10 per cent accordingly.
Cash ISA cuts: Reaction as Rachel Reeves delays reform
13:44 , Karl MatchettRachel Reeves is backtracking on plans to cut the cash ISA limit.
That has been widely seen as a positive by most, but not all. In both cases, criticism of Reeves is ongoing.
Richard Wilson, Chief Executive at interactive investor, said: “The Chancellor’s fumbling and indecision means that the overall goal of ISA simplification has been delayed completely. We need action to cut the needless complexity. We’ve said it time and time again – there only needs to be one ISA.”
Jason Hollands, managing director of Bestinvest, said:
“This is welcome news for savers and a victory for the lobbying efforts of banks and building societies, as well as personal finance press. The rationale behind limiting Cash ISAs, that it would somehow drive people into investing in stocks and shares instead and boost the UK economy, was pretty questionable.
“While I would certainly encourage more people who have excess cash to invest it for the longer-term, simply restricting people’s ability to save cash tax-efficiently is unlikely to drive a fundamental change of behaviour. The only certainty behind such a move would have been to expose more of their hard-earned savings to tax.”
Victor Trokoudes, CEO and founder of ISA provider Plum, said:
“We welcome the news reports that Rachel Reeves has decided to put Cash ISA reforms on hold. We fundamentally believe in giving people a choice over how they make their money work for them.
“We’ve called for a wider consultation from the very start to ensure that any proposed ISA reforms are informed by a broad range of views and expertise. So we’re pleased that the Government appears to be committing to this. Our research had found that the suggested reduction to the Cash ISA allowance was unlikely to deliver the outcomes the Government wanted, with more people likely to opt for a standard cash savings account instead of investing.”
Silver price shoots to 14-year high
14:11 , Karl MatchettRecently we’ve seen gold hit record high prices, then bitcoin, the FTSE 100 and more - now it’s the turn of silver.
While not quite an all time high, the metal has hit 14-year highs, rising to just above $38.50 for its highest peak since 2011.
Then, prices rose to a peak of more than $48, but for most of the last five year it has been between $25 and $30.
US stocks fall, Coinbase hits new high
14:51 , Karl MatchettUS stocks have fallen in the main on Friday, with the S&P 500 down 0.56 per cent.
However, crypto trading platform Coinbase saw its share price rise on opening to briefly hit a new all time high at $398, following bitcoin’s surge to record prices.
A sell-off quickly ensued in Coinbase stock and it’s now flat for the day, but remains 55 per cent up for this year.
Reeves pauses cash ISA changes after backlash
15:15 , Karl MatchettRachel Reeves has put her plans to reform cash ISAs on hold after speculation that she was considering reducing the allowance for tax-free cash savings was met with criticism from banks and building societies.
Savers have a £20,000 annual allowance which can be split across ISA types, but the most frequently used version is the cash ISA, which gives people a tax-free savings account. However, the government wants to encourage more people to start investing, to generate better long-term returns.
Meta lands AI researcher from Apple with $200m offer
15:53 , Karl MatchettA renowned AI expert has swapped jobs from Apple to Meta - and will pick up a $200m deal for himself in the process.
Ruoming Pang will earn that fee in the role over the course of “several years” according to reports.
His salary reportedly exceeds every employee at Apple other than CEO Tim Cook.
Jamie Dimon hates ‘TACO’ but says Trump did the right thing in ‘chickening out’ over tariffs
16:56 , Karl MatchettJP Morgan Chase CEO Jamie Dimon says President Donald Trump has been correct not to let his sweeping tariffs go into effect but warned that Trump’s pattern of backing down after threatening massive tax increases may not continue indefinitely.
Speaking at an event in Ireland put on by the Irish Foreign Ministry, Dimon said he isn’t so enamored of the disparaging acronym analysts have coined for the American president’s tendency to backtrack on the import taxes: TACO, short for Trump Always Chickens Out.
“I hate to use the word ‘TACO trade” because I think he did the right thing to chicken out,” Dimon said.
But he warned that there has been “complacency in the market” based on the president’s pattern — one which may not hold forever.
More here:
Jamie Dimon says ‘TACO’ Trump did the right thing on tariffs
