The yields on UK ten year bonds rose sharply on Wednesday as Keir Starmer failed to guarantee the job of chancellor Rachel Reeves, resulting in higher borrowing costs, before stabilising after a Labour statement said Ms Reeves was “going nowhere”. That didn’t stop market speculation, as the pound also sank in reaction.
Meanwhile, news across the business world saw TSB confirm it would be bought by Santander to create the UK’s third-biggest bank, pending approval, and AstraZeneca’s CEO has held conversations over moving the biggest firm on the London Stock Exchange to a US listing. Elsewhere, Microsoft are cutting 9,000 jobs as the race to employ AI for tasks continues, while Thursday also sees The Independent show how Trump tariffs are impacting small and medium businesses across the UK.
The FTSE 100 was flat on Wednesday, despite several miners enjoying strong rises.
Follow The Independent’s live coverage of the latest stock market and business news here:
Which tax rises could Rachel Reeves introduce to pay for the £5bn welfare U-turn?
Millie Cooke, our political correspondent, has looked at the upcoming budget to predict where taxes are coming:
In the wake of the U-turn, there are now growing questions over how the government will raise the money to fill the black hole in the public finances.
Ministers have already squeezed significant savings out of their departments in cuts that were unveiled at last month’s spending review, meaning there is now a mounting expectation that the chancellor will be forced to raise taxes instead.
Karl Matchett3 July 2025 13:20
UK markets update: Pound, bonds, FTSE 100
Now into the afternoon after a positive morning session, it’s worth a look at how all the major markets are faring following the Rachel Reeves-related fallout of yesterday.
The pound is a little lower against the dollar than mid-morning but remains up 0.06 per cent for the day: £1 is $1.3658.
Much-watched 10-year bond yields are inching their way up and down across the day but in a downtrend – the yield movement is down 1.67 per cent today, which leaves the actual yield at 4.544 per cent.
And the FTSE 100 is having a fairly decent day, up 0.47 per cent to push close to a full 1 per cent gain for this week so far.
Karl Matchett3 July 2025 13:00
Calls for ISAs to allow investment in private assets
People should be allowed to invest in private assets within their ISAs, says the Investment Asssociation boss.
It is a contentious issue and one which requires an awful lot of education around before it becomes possible, but Chris Cummings said it could have a “profound” impact on people’s wealth come retirement.
Amid concerns over liquidity in the private market, the IA chief said “that’s what a cash account is for.”
Karl Matchett3 July 2025 12:50
Ryanair cancel 170 flights after air traffic control strikes
Ryanair have cancelled 170 flights due to French air traffic control strikes.
The flights are across Thursday and Friday and include destinations such as Greece, Spain and the UK.
CEO Michael O’Leary said: “Once again, European families are held to ransom by French air traffic controllers going on strike.
“It is not acceptable that overflights over French airspace en route to their destination are being cancelled/delayed as a result of yet another French ATC strike.”
Shares are down 1.2 per cent today and up 0.6 per cent across a month.
Karl Matchett3 July 2025 11:59
Taichi Tech fined £170,000 for unfair terms and conditions
An online gambling firm has been fined £170,000 for regulatory failures including the use of unfair terms and conditions.
Taichi Tech Limited, trading as Fafabet, will also have to undergo a third-party audit to ensure it has effective anti-money laundering and safer gambling procedures, the Gambling Commission said.
An investigation found that Taichi Tech’s terms claimed that it had “the right at their own discretion to close accounts or forfeit winnings”.
The regulator concluded that the firm breached the “fair and open” licensing condition by including a discretionary term allowing the operator to close customer accounts or forfeit winnings without clear justification.
The investigation also found failures relating to anti-money laundering and social responsibility breaches.
Josie Clarke, PA.
Karl Matchett3 July 2025 11:39
Revealed: Two-thirds of small businesses would now vote Remain after profits hit by Brexit
Two-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.
65 per cent of responders said the increased demands on them to comply with trade regulations have “significantly” affected their overall profits. More than half (56 per cent) said Brexit has directly made their business less-competitive within the context of the global marketplace.
Full details:
Karl Matchett3 July 2025 11:20
US stock market futures flat after mixed Asian results overnight
Last night saw a real mix of trading in Asia.
Japan’s Nikkei 225 ended essentially flat, but the Hang Seng in Hong Kong was down more than 0.6 per cent.
In Australia and Singapore trading was flat, India’s Nifty 50 fell 0.16 per cent and the Shanghai composite rose 0.18 per cent.
Meanwhile, the forward-looking data for US stocks shows a very slight rise is on the cards, so far at least.
The Dow, Nasdaq and S&P 500 are all projected to rise, but each of them less than 0.1 per cent so far.
Karl Matchett3 July 2025 11:00
Skills shortage jeopardising pledge to build 1.5 million homes
A critical shortage of skilled workers is jeopardising the Government’s pledge to build 1.5 million new homes by 2029, according to research.
Skills development organisation City & Guilds surveyed employers, training providers and employees, finding 76% of construction firms are struggling to recruit the skilled people they need, with 84% agreeing the industry is suffering from critical skills shortages.
The latest outlook from the Construction Industry Training Board suggests the industry needs to recruit 239,300 workers by 2029 to be able to meet the projected demand for the 1.5 million homes target.
Alan Jones, PA3 July 2025 10:39
M&S to spend £300m on shop openings and upgrades
Following the cyber hack earlier this year, Marks & Spencer say they will spend £300m in an accelerated programme to revamp existing stores and open 16 new ones.
A dozen of those new shops will be food halls.
Stuart Machin, CEO, said: “We have to go fast. I’m hoping by 18 months’ time, half of our store estate will be new or renewed.”
The move comes in a bid to win back shoppers after online and store sales were severely impacted by the hack, which is expected to also cost around £300m.
Karl Matchett3 July 2025 10:21
OpenAI and Oracle agree $30bn a year deal for data centres
OpenAI will pay Oracle around $30bn a year to lease 4.5GW of power.
Multiple data centres across the US will operate to satisfy that demand, the FT reports, in an expansion of the country’s Stargate project.
It is due offer both further innovation and increasing consumer demand for AI.
Karl Matchett3 July 2025 09:59
