Business news live: UK house prices rise 2.4%, FTSE 100 and stock markets fall as new Trump tariffs announced

Investors saw the FTSE 100 to finish on a low note this week after a couple of flat days, with fast starts resulting in sell-offs across a few days of late. That’s despite great financial results for the likes of Rolls Royce and several financial institutions, while in the States most of the rising markets have concerned tech firms. All fell on Friday though, with the announcement of a new raft of tariff rates.

Domestically, the government announced plans to push through changes regarding late payment to small firms, which could see others businesses fined. Overseas, the US have agreed an extension for finding a trade deal with Mexico, as Donald Trump’s original tariff deadline arrives today.

Meanwhile, Friday brought the latest house price data from Nationwide, while CASS have revealed which UK banks and building societies benefited most from customers switching current accounts over the past three months.

Follow The Independent’s live coverage of the latest stock market and business news here:

Business news live - Friday 1 August

• Nationwide house price data shows new home cost increased 2.6% in July
• Canada hit with 35% tariff as Trump's trade deal deadline arrives on 1 August
• FTSE 100 and European stocks fall as tariffs come into effect
• British Airways owner AIG shares up 2% after BA profits jumped to over £800m
• Premium Bonds winners: £1m heads overseas, one Scot wins £100k from £750
• UK steel boosted by zero-tariff deal with EU coming into effect

How much risk is too much risk when it comes to your money?

16:15 , Karl Matchett

In investing, the general rule is that the more risk you take, the greater the potential rewards. But the stock market can go down as well as up, and the idea of losing money is never pleasant.

That’s why so many Brits put their money into cash savings rather than the stock market. According to latest figures from the Office for National Statistics, more than 8 million of the 12.4 million Isas opened in 2022-23 were cash accounts.

But to give your money the best chance of growing over the long-term, you’ll need to invest it - and that means taking a degree of risk. The question is: how much?

Holly Mead considers the dilemma:

How much risk is too much risk when it comes to your money?

Business news live - Friday 1 August

06:58 , Karl Matchett

Good morning and welcome to The Independent’s live business coverage. Coming up, the latest companies news, stock market updates and everything else affecting UK consumers, investors and more.

Also coming up is Nationwide’s latest house price data, plus this evening is the outcome of the car finance scandal.

A lot to get through!

Business news live - Friday 1 August

07:08 , Karl Matchett

First up, a quick recap with yesterday’s top lines in case you missed them:

• Meta and Microsoft added $500bn to share price value: ‘Investors are screaming with joy’
• Can Mark Zuckerberg really be trusted to oversee the AI revolution?
• Would rebranding retirement motivate more Millennials and Gen Z-ers to start saving into pensions?
• Car finance mis-selling case deadline revealed as millions could be owed compensation

Why the FTSE 100 is breaking records — and why that’s good for your pensions

07:15 , Karl Matchett

The FTSE 100 has surged to new record levels after investors piled back into the stock markets they deserted in April following Donald Trump’s announcements of tariffs.

The new highs are seen as good news for investors but also for most people in the UK, whose pensions will likely be invested in companies in the stock market.

And the levels could continue to go higher in the wake of a trade agreement between the US and the EU.

Here, The Independent takes a look at what this could mean for future investments:

Why the FTSE 100 is breaking records — and why that’s good for your pensions

Stock markets: What happened yesterday?

07:30 , Karl Matchett

Before markets open up this morning, here’s PA’s recap from yesterday:

The FTSE 100 gave up early gains as a strong US inflation reading and weak mining stocks tempered enthusiasm provided by well-received earnings on both sides of the Atlantic.

The index closed down 4.13 points at 9,132.81. It had earlier traded as high as 9,190.73, a new all-time peak.

The FTSE 250 closed 186.25 points higher, 0.9%, at 21,962.83, and the AIM All-Share closed down 1.22 points, 0.2%, at 761.50.

In Europe on Thursday, the Cac 40 in Paris fell 1.1%, while the Dax 40 in Frankfurt slid 0.8%.

Nationwide House Price Index: New home cost rose 2.4% in July

07:40 , Karl Matchett

Nationwide have released their latest data on house prices, with July showing an uplift of 2.4 per cent on average.

That’s compared to July last year, while it’s also a rise month on month after June showed a 2.1 per cent increase.

The average price of a house is now £272,664.

Robert Gardner, Nationwide's Chief Economist, said:

“July saw a modest pick-up in the rate of annual house price growth to 2.4%. Prices increased by 0.6% month on month, after taking account of seasonal effects.

“Looking through the volatility generated by the end of the stamp duty holiday, activity appears to be holding up well. Indeed, 64,200 mortgages for house purchase were approved in June, broadly in line with the pre-pandemic average, despite the changed interest rate environment.

“Similarly, the interest rate on a typical five-year fixed-rate mortgage is around 4.3% (for a borrower with a 25% deposit). This is still over three times the all-time lows prevailing in autumn 2021, but well below the highs of c5.7% reached in late 2023.”

House price reaction: Affordability rising, but inflation hurting buyers

07:50 , Karl Matchett

We’ll have plenty of reaction coming in to those house price numbers this morning.

The important factors to consider are ultimately what it means to those who are buying, selling or needing a new mortgage deal soon.

Of late it has seemed a good time for buyers, at least in many regions, but inflation is impacting on that side - as well as the return-to-office trend some companies are insisting on.

“Homebuying activity may be picking up, but there are wide variations in price growth across the country. Competition among sellers has also been heating up over the summer amid a surge in listings, which may keep a lid on prices going forward,” said Alice Haine, Personal Finance Analyst at Bestinvest.

“Affordability is gradually improving, driven by a steady decline in mortgage rates following four interest rate cuts since August last year, with a fifth anticipated next week. At the same time, more flexible mortgage rules are easing the homeownership journey for first-time buyers and helping those refinancing larger loans to meet affordability criteria, ensuring continued access to financing.

“Affordability remains a challenge for some, however. Inflation has been creeping up in recent months putting a dent in consumer purchasing power. Higher stamp duty costs can also be prohibitive, particularly for first-time buyers who must save a large deposit and cover a heavier property tax liability.

“The post-pandemic ‘race for space’ is now being put to the test. For some, a move to a larger home may be creating a financial headache as their mortgage expiry date looms. For others, a more rural living location outside the city may be creating a commuting challenge as more employers roll back on hybrid working options. A jump in repayment costs may be a stretch too far, which is why it’s no surprise that estate agents are reporting a rise in the number of homeowners choosing to sell up, either to downsize to a more affordable or suitably-sized property, or to relocate away from their rural retreat back to the city and closer to the office.

“If the Bank of England proceeds with a fifth rate cut next week, mortgage rates may ease further, opening up the market for more buyers. The traditional summer surge in listings is another positive for buyers, who can take advantage of a wider range of homes to choose from. It is less of a boon for sellers, however, as it raises the potential for heavier negotiations on price.”

Trump's trade deadline: Canada hit with 35% tariff

08:12 , Karl Matchett

Donald Trump’s 1 August hard deadline for trade deals to be arranged has arrived and, with it, a slew of nations find themselves hit with 35 per cent tariff rates.

The most shocking name on the list is Canada, with the US’s neighbour now impacted with all deals not already included in the US-Mexico-Canada agreement.

Prime minister Mark Carney said he was “disappointed” by the outcome.

The deal also stipulates goods shipped elsewhere and then back into the US would be subject to a 40 per cent rate,

Early hours, Trump wrote on social media that Canada supporting Palestine as a state would “make it very hard for us to make a Trade Deal with them.”

Mexico get 90-day extension on trade tariffs

08:29 , Karl Matchett

While the deadline for trade deals has arrived, not everyone is seeing an immediate change.

Mexico have been given a 90-day reprieve, for example, while the US said there was a seven-day window before tariffs came into effect.

Then, nations who don’t have a deal will see levees of between 10 and 40 per cent applied.

Selected rates:

• Brazil 10%, but 40% for some goods
• India 25%
• South Africa 30%
• Taiwan 20%
• Syria 41%
• Iraq 35%
• Lesotho 15%
• Serbia 35%

Tariffs latest: Banking on TACO didn't work this time for nations

08:45 , Karl Matchett

Donald Trump has been accused of backing away from his threats more often than not - hence the rise of the TACO trade.

But taking that gamble hasn’t paid off this time around, says Derren Nathan, head of equity research, Hargreaves Lansdown.

“Countries playing tariff poker with Donald Trump have had their bluff called with new US import tax rates announced for 92 nations shortly before the 1 August deadline came into play, with rates ranging from 10% to 41%.

“Mexico was the only reprieve of note, earning a 90-day extension to agree a deal. China already faces a separate deadline of 12 August.”

FTSE 100 heads lower - but impact nothing like original tariff fears

09:00 , Karl Matchett

Investors will remember the days of early April when Trump’s original tariff announcement sent stock markets into freefall - 30 per cent drops were not uncommon and America’s biggest companies collectively lost trillions in value.

They are mostly all back now, and then some, so it’s not entirely surprising to see stock markets heading lower as deadline day arrives.

With some agreements made though and other tariffs not as punitive as originally feared, the sell-off is nothing like that early April deep dive.

Today’s FTSE 100 is down 0.5 per cent, while in Europe the German DAX is down 1.4 per cent and France’s CAC 40 is down 1.5 per cent.

Asian stocks also fell overnight - the Hang Seng, Nikkei 225 and Asia Dow were between 0.5 per cent and 0.8 per cent in the red.

British Airways’ profits jump despite Heathrow fire closure

09:20 , PA

British Airways’ half-year earnings have increased despite a £40 million hit from the closure of Heathrow in March after a substation fire, as the airline ramped up its flight programme.

The carrier reported a 48% jump in underlying operating profits to £824 million for the six months to June 30, up from £555 million a year ago.

Owner International Airlines Group (IAG) said earnings were driven higher at British Airways as it increased flight capacity by 2.1% and boosted passenger revenues.

The wider IAG company – which also owns Aer Lingus, Iberia and Vueling – posted a 43.5% rise in earnings to £1.88 billion for the first half.

Pre-tax profits rose sharply to £1.75 billion from £1.05 billion a year ago.

British Airways’ profits jump despite Heathrow fire closure

AIG shares 2% higher - but does 'jewel in the crown' face tougher times?

09:25 , Karl Matchett

Some quickfire reaction to those AIG results now, with shares rising up to 2 per cent this morning.

The pre-tax profits rise of £700m is a huge boost of course, but it’s not only about fuel costs and people heading overseas - the wider economic playing field could impact from this point, say experts.

Richard Hunter, Head of Markets at interactive investor, says AIG deserves it’s boost in share price - it’s up 26 per cent this year.

“The British Airways owner has taken to the skies of late and these results reflect more signs of promise as the company chases its longer haul goals.

“Its shares have had a turbulent time more recently, weighed both by geopolitical uncertainty as well as fears that travel to the US would be impacted in reaction to its decision to declare a trade war on many countries around the globe.

“By brand, British Airways remains the jewel in the crown in terms of the group’s highest returns, especially this North Atlantic market. Flight frequency to selected destinations is continually on the increase, with IAG looking to maximise income from not only its premium offering but also an affluent customer base.”

Chris Beauchamp, chief market analyst at investing firm IG, however, says there might be a glass ceiling on how much higher the share price - currently at 388p - can go.

"IAG is another one of those stories this year of FTSE 100 companies that have seen huge rebounds in the share price. But a look at the chart shows that, once the shares cross 400p, the going gets much tougher. 'Tariffs' got 3 mentions in its update today, but with new levies announced overnight they are likely to weigh on performance in the months to come."

Trump tells drug companies to lower prices for US - and raise it for others

09:45 , Karl Matchett

Donald Trump has written to multiple pharmaceutical companies to demand lower prices for the US, which can be covered by raising prices in other “freeloading” countries.

The Telegraph report a letter saying the likes of GSK and AstraZeneca should be seeking to “negotiate harder with foreign freeloading nations” before then using that excess cash to cover cheaper sales Stateside.

“Increased revenues abroad must be repatriated to lower drug prices for American patients and taxpayers”, read the letter.

The president has reportedly given companies 60 days to “step up” and agree to a binding deal.

British steelmakers regain access to EU market

10:00 , Karl Matchett

The government have confirmed British steelmakers will regain access to the EU from today, 1 August, under a zero-tariff arrangement.

A deal signed in May by the prime minister comes into effect as of now, enabling firms to “export more steel used for large building projects – like support beams – to the EU tariff-free”.

Secretary of State for Business and Trade, Jonathan Reynolds said:

“This is yet another positive step forward for the UK steel sector and a clear example of our Plan for Change in action — removing barriers, supporting jobs, and backing British industry.

“Restoring our steel quota helps give producers the certainty they need to compete, grow, and maintain vital export relationships.

“This builds on the significant support that this pro-steel Government has already delivered — from our £500 million investment in Tata’s green steel transition, to action to safeguard jobs at British Steel in Scunthorpe, and our deal with the US to reduce tariffs on UK steel.”

UK house prices rise - but not equally, and not everywhere

10:34 , Karl Matchett

Another look at the UK house prices now - that 2.4 per cent rise isn’t across the board, it’s an average remember.

As such, there are plenty of areas which are falling at present.

"With the supply of homes for sale at its highest level in a decade, property prices are levelling off or even falling in some areas, despite the slight increase in the national average,” said Peter Stimson of MPowered Mortgaages.

"All this is creating a buyer’s market and nudging would-be buyers who are fed up with rising rents to get off the fence.

“With new affordability rules making it easier for people to get their first mortgage, and allowing lenders greater flexibility in the amount they lend, the mortgage market is playing an essential role in keeping the property market moving.

“With the Bank of England widely expected to reduce its base rate again next week, stress rates - the rate at which borrowers' affordability is calculated at - could go down even further, allowing even more borrowers into the market.”

Premium Bonds prize draw sees one person win £100k from £750 hold

10:45 , Karl Matchett

One lucky Scot has won £100,000 in the Premium Bonds draw, say NS&I - despite holding only £750 in their account.

The two £1m winners came from Bedfordshire (holding £7k) and overseas (holding the max £50k).

NS&I say “more than six million prizes will be paid out, worth over £396 million” in total for the August draw.

The effective prize rate for Premium Bonds is 3.6 per cent, with the odds of any individual £1 bond winning any prize being 22,000 to one.

While the big prizes get headlines, most PB holders do not win enough to beat a standard savings account interest rate return on their money.

Would rebranding retirement motivate more Millennials and Gen Z-ers to start saving into pensions?

11:00 , Karl Matchett

Pensions have a big branding problem, which is putting off more Millennials and Gen Z from investing in their retirements.

With two million pensioners currently living in poverty - and almost 40 per cent of the population on track to experience poverty in retirement - that needs to change.

It is easier said than done, but a good start would be to challenge the negative stereotypes that put many younger people off saving for retirement in the first place.

James Hetherington explores the idea of rebranding retirement:

Would rebranding retirement motivate more people to start saving for it?

Nationwide and Monzo gain thousands of new bank customer - Barclays lose out most

11:20 , Karl Matchett

The Current Account Switch Service has confirmed that June was the busiest month of 2025 to date for customers changing banks, seeing over 88,000 switches completed.

In total more than 216,000 switches were completed by the service during the three months from April to June.

Meanwhile the banks and building societies netting the largest net gains between January and March 2025 were:

1. Nationwide +55,500
2. Monzo +8,800
3. HSBC +5,600

The largest net losers were:

1. Barclays -22,300
2. Halifax -15,700
3. Natwest -13,000

US stocks set to tumble after tariffs announcement

11:40 , Karl Matchett

Futures markets are showing US stocks ready to tumble this afternoon when trading begins.

The S&P 500 is down 0.96 per cent, with the Nasdaq even lower at -1.07 per cent.

Smaller firms are hit harder, the Russell 2000 down 1.4 per cent, while the Dow Jones is set to open 0.9 per cent lower.

Among the biggest firms, last night’s earnings report means Amazon is set to open 7.5 per cent lower due to disappointing profit margins on its AWS cloud service.

Apple also reported last night and is set to open 2 per cent higher thanks to improved iPhone sales.

POLL: Where do you pay into your pension?

12:00 , Karl Matchett

Global stock markets under pressure after Trump’s latest tariff blow

12:20 , Karl Matchett

London’s blue chip share index has slumped lower amid a global stock market backlash after US President Donald Trump unleashed the latest sweeping trade tariffs.

The FTSE 100 Index fell 0.6% – down 50.2 points to 9082.7 – in mid-morning trade on Friday, while European markets suffered steeper falls as the Cac 40 in France dropped 1.8% and Germany’s Dax was off 1.7%.

It follows big drops on Asian indices overnight after the Hang Seng in China fell 1.1% and Japan’s Nikkei 225 was 0.7% down.

Mr Trump has signed an executive order setting new tariffs on a raft of US trading partners, which will take effect on August 7.

Big exporters to the US, such as Taiwan, will be hit with steep new levies.

More details from PA:

Global stock markets under pressure after Trump’s latest tariff blow

Manufacturing data offers glimmer of hope

12:40 , Karl Matchett

Latest manufacturing data suggests the UK “could [be seeing] the beginning of a modest recovery phase”, says one expert.

However, the usual factors of energy bills and global economics continue to weigh on real revival.

Mike Thornton, head of industrials at RSM UK, said: “The latest uptick in the manufacturing PMI marked the highest level since January 2025, showing further signs of improvement and suggesting that the sector is gaining momentum as supply chain tensions ease.

“This uplift in activity follows the launch of the Industrial Strategy, which outlines the government’s aim to double investment in advanced manufacturing to £39bn by 2035, which should help to drive sustained growth in output and support long-term resilience.

“But, despite growing industry optimism, there remains some caution in the market due to mounting cost pressures in terms of energy, raw materials and logistics, which continue to squeeze margins. Output is also limited by ongoing labour shortages, with CBI data showing that employment in the manufacturing sector fell for the third consecutive quarter.

“Additionally, there are some uncertainties surrounding the Industrial Strategy, with businesses needing clarity on how the £4.3bn advanced manufacturing funding will be allocated by subsector, as well as the eligibility criteria for the British Industrial Competitiveness Scheme.”

Car finance mis-selling: How can I claim compensation and am I eligible as Supreme Court prepares verdict?

13:00 , Karl Matchett

A highly anticipated Supreme Court judgment on Friday is set to bring clarity to the UK's car finance commission saga, with millions of motorists potentially due compensation.

The ruling follows a Court of Appeal decision last October and is expected to define how the law applies to motor finance arrangements.

Its ramifications extend across the financial services sector, promising significant implications for consumers, lenders, and the wider car finance market.

Here’s what you need to know.

Car finance mis-selling: How can I claim compensation and am I eligible?

Major boost for British steel with EU deal but still no confirmation over US tariffs

13:30 , Karl Matchett

British steelmakers received a boost on Friday as a trade deal arranged in May came into effect, allowing tariff-free exports into the EU.

The government confirmed that key steel products such as support beams could now be exported to Europe from 1 August without additional costs, a significant aid to an industry which has been hampered by rising energy bills and global trade uncertainty.

Business secretary Jonathan Reynolds, said the date marked a “positive step forward” for the UK steel industry and would allow firms to “compete, grow, and maintain vital export relationships.”

Major boost for British steel with EU deal but still no confirmation over US tariffs

PM urged to review oil policy after Trump labels North Sea ‘a treasure chest’

14:01 , Karl Matchett

Donald Trump’s call to “incentivise” North Sea oil production should prompt an urgent Downing Street meeting, the shadow Scottish secretary has said.

Andrew Bowie called for a review of policies affecting the oil and gas industry.

The US president was in Scotland earlier this week and during his visit he described the North Sea as “a treasure chest for the United Kingdom”, and warned fossil fuel taxes make “no sense”.

He also took aim at “some of the ugliest windmills you’ve ever seen”, referring to wind turbines off the coast near Aberdeen.

More from PA:

PM urged to review oil policy after Trump labels North Sea ‘a treasure chest’

Eurozone inflation remains at 2%

14:19 , Karl Matchett

Flash estimates suggest the Eurozone inflation rate remained stable at the target 2 per cent during July.

Energy costs dropped 2.5 per cent, while food and beverages were up 3.3 per cent.

The EU arranged a 15 per cent tariff deal with the US last month but member states were far from delighted at the outcome.

Interest rates at the ECB are now expected to be held in future.

FTSE 100 down 0.5 per cent - Europe suffers steeper losses

14:40 , Karl Matchett

Most stock markets have taken a hit today after the tariff deadline arrived, was pushed back again and more countries found out their new level.

The FTSE 100 hasn’t been as hard-hit as some, down 0.54 per cent, but Europe has suffered considerably.

With the German DAX down 2.2 per cent and the French CAC 40 at -2.5 per cent for the day, investors in British defensive stocks might be feeling they’ve got off slightly lucky today.

15:00 , Karl Matchett

The Bank of England meet next week and it’s widely expected they’ll cut interest rates - but there’s still plenty to be cautious over, says Steve Matthews, investment director at Canada Life Asset Management.

Even so, a quarterly rate cut pace looks set to continue.

“The Monetary Policy Committee (MPC) are once again facing crosswinds in their forthcoming meeting to determine bank lending rates,” he explained.

“Whilst they will be acutely aware of the near constant drift upwards in inflation, last seen at 3.6% in June, recent figures showing weakness in the employment market combined with a fragile economy, will lead them to cut interest rates in August - their fifth reduction in this current easing cycle.

“With inflation still expected to return to the 2% target by 2026, we believe the MPC will continue to prioritise economic support. Markets have already fully priced in this move, and we see potential for at least one further cut by year-end, most likely in November, after a pause in September.”

15:20 , Karl Matchett

Swiss manufacturers have warned that “tens of thousands” of jobs could be at risk after Switzerland was surprisingly hit with 39 per cent tariffs.

Officials from the European country had earlier labelled prospective 31 per cent rates as “incomprehensible” and are now rushing for a response after the levee was raised further.

Reuters reported the Swiss Federal Council saying they “continue to strive for a negotiated solution” with the US.

“This is a black day for the Swiss economy,” said industry association Interpharma. “It is crucial that Switzerland continues negotiations with the U.S. to reduce general tariffs and prevent specific tariffs on pharmaceutical products.”

Pharmaceuticals are not expected to be included in the 39 per cent tariff rate but companies are being pressured to raise prices in Europe and elsewhere and pass those savings on to the US with lower prices.

Six tips to ensure a more financially secure 2026

15:40 , PA

Though 2026 might seem a distant prospect, the financial decisions made today are pivotal, shaping your economic well-being for years to come.

Whether you aim to rebuild savings, finally venture into investments, or simply understand the monetary landscape ahead, experts agree.

Even small, immediate actions yield significant long-term benefits.

Here are six practical steps to foster a more robust financial outlook for 2026.

Six tips to ensure a more financially secure 2026

Why the car financing scandal could cause an even bigger pile-up than PPI

16:00 , Karl Matchett

The car finance scandal already looks like PPI 2.0… but with an even bigger bill. Millions of motorists could soon be entitled to compensation on their hire-purchase agreements, which could cost the industry an eye-watering £44bn to put right, compared with the £38bn spent on Britain's costliest and longest-running consumer scandal, into payment protection insurance.

All eyes are now on the Supreme Court, which is preparing to deliver a judgement over commissions paid to car dealers for fixing up finance agreements. The overwhelming majority of consumers take out loans when purchasing vehicles. A percentage of the interest typically goes to the dealer when they arrange these. Those commissions can be very substantial.

If the Supreme Court blows up the car-finance market over commission payments to dealers, it could lead to firms going bust, less competition and much higher prices in future, says James Moore

Why the car financing scandal could cause an even bigger pile-up than PPI

Business news live - Friday 1 August

16:30 , Karl Matchett

That’s it for us today and for the week - stock markets continue to fall after opening with the Nasdaq and S&P 500 down more than 1.5 per cent this afternoon.

The FTSE 100 looks set to close around 0.8 per cent lower, as the latest tariff decisions have businesses and investors alike reassessing what comes next.

We’ll be back on Monday for another week of company news, personal finance tips and more - have a great weekend.