{"id":24251,"date":"2025-08-26T12:20:15","date_gmt":"2025-08-26T12:20:15","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/24251\/"},"modified":"2025-08-26T12:20:15","modified_gmt":"2025-08-26T12:20:15","slug":"ftse-100-falls-on-trump-and-gloomy-uk-consumers","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/24251\/","title":{"rendered":"FTSE 100 falls on Trump and gloomy UK consumers"},"content":{"rendered":"

The UK 30-year bond yield rose close to a 27-year high this morning on increased concerns about the government\u2019s fiscal expenditure.<\/p>\n

The yield rose 6 basis points to 5.61 per cent and bond prices fell as investors sold off the shares in expectation that rising inflation could mean interest rates will remain higher for longer. A rise to 5.66 per cent would be the highest since 1998.<\/p>\n

Yields in long-dated US Treasuries fell after President Trump\u2019s move to fire a Federal Reserve governor<\/a> fuelled investor concerns about the Fed\u2019s independence and holding US assets. In France yields rose after doubt grew about whether the minority government would survive a confidence vote, increasing political instability.<\/p>\n

Bankers, lawyers and City advisers to earn millions from Just takeover<\/p>\n

Bankers, lawyers and other City advisers working on the \u00a32.4 billion takeover of Just Group, the British specialist insurer, by the Canadian private equity giant Brookfield are set to earn almost \u00a380 million in fees.<\/p>\n

The lion\u2019s share of the spoils will go to bankers, with Evercore and JP Morgan landing about \u00a331 million. Brookfield, which is being advised by RBC Capital Markets, expects its bill for banking advice and its financing arrangements to total \u00a320.3 million.<\/p>\n

Lawyers working on the takeover will also earn \u00a314.3 million, split between Allen Overy Shearman Sterling, which is acting for Brookfield and Slaughter and May, which is working for Just. A further \u00a31.9 million will go to accountants, public relations advisers and other professional services providers.<\/p>\n

The deal for Just was unveiled at the end of last month and adds to a string of acquisitions of London-listed companies, which has raised concerns that Britain\u2019s stock market is shrinking as a spate of takeovers coincides with a dearth in new listings.<\/p>\n

Victoria Beckham fashion sales rise above \u00a3100m\"Victoria<\/p>\n

Victoria Beckham\u2019s fashion and beauty empire reported sales up by more than a quarter last year as its turnaround continued after more than a decade of losses.<\/p>\n

Revenues at Victoria Beckham Holdings grew by 26 per cent to \u00a3112.7 million in 2024, from \u00a389.1 million the previous year, boosted by a rise in visitors to its website and luxury fashion store in Mayfair, central London.<\/p>\n

Adjusted profits rose 22 per cent to \u00a32.2 million. The company claimed that figure would have been closer to 50 per cent had its recently launched fragrance business been stripped out.<\/p>\n

It marks the fourth consecutive year of double-digit revenue growth at the fashion label, which has its eye on long-term profitability after relying on private equity stakeholders and the Beckham family\u2019s other income streams for extra cash in recent years. However, operating losses widened to \u00a31.6 million from \u00a3200,000 year on year.<\/p>\n

Future of Poundland in doubt as it requests approval on restructuring plan<\/p>\n

Poundland will run out of money within days if a restructuring plan is not approved, the High Court has been told.<\/p>\n

The company is asking a judge to approve a plan which would save it from entering administration, with barristers telling a hearing that it is otherwise set to run out of money by September 7.<\/p>\n

Poundland, founded in Burton upon Trent, Staffordshire, in 1990, has approximately 14,700 staff members and operates around 800 stores. It announced plans to shut 68 stores<\/a> in June after being sold by Pepco Group to a subsidiary of private equity firm Gordon Brothers, for \u00a31.<\/p>\n

Tom Smith KC, for Poundland, said the proposal would release \u00a360 million of funding, in addition to the \u00a330 million injected following the purchase on June 12. \u201cSo, in effect, if you add everything up, Gordon Brothers is putting in \u00a390 million,\u201d he said.<\/p>\n

Smith said that the company is currently due to pay back \u00a3276.5 million in loans by September 1, which would be pushed back by three years. It would also see the company provided with a \u00a330 million overdraft facility and have some of its rents reduced.<\/p>\n

No-one has appeared in court to oppose the plan. The hearing before Sir Alastair Norris is expected to conclude later today.<\/p>\n

London-listed Filtronic signs deal with SpaceX\"Starship<\/p>\n

SpaceX\u2019s rocket Starship launches for a test flight from Starbase in Boca Chica, Texas, in January<\/p>\n

ERIC GAY\/AP<\/p>\n

British tech firm Filtronic has secured its biggest ever contract with Elon Musk\u2019s SpaceX.<\/p>\n

The London-listed defence and telecoms equipment maker, which is based in Sedgefield, County Durham, saw its shares rise as much as 13 per cent after announcing the \u00a347.3 million agreement.<\/p>\n

It will supply Musk\u2019s Starlink satellites with gallium nitride E-band technology, a type of radio frequency technology designed for high-performance wireless communication.<\/p>\n

Mike Nicolls, vice-president of engineering at Starlink, said: \u201cThis next-generation technology will provide further benefits to our system and our customers\u2019 experience, and we\u2019re excited to enter this next phase with Filtronic.\u201d<\/p>\n

Klarna revives plans to float in US\"a<\/p>\n

AVISHEK DAS\/SOPA IMAGES\/LIGHTROCKET\/GETTY IMAGES<\/p>\n

Klarna, the Swedish buy-now-pay-later pioneer is reviving plans to float in the US at a valuation of up to $14 billion, Reuters reports.<\/p>\n

The company hit pause on IPO plans in April after President Trump\u2019s trade tariffs rocked global markets. A previous attempt to go public stalled in 2021.<\/p>\n

The shares sold in the offering could be priced at between $34 and $36 as early as this week, the sources said. This would represent a sharp drop from the valuation of close to $50 billion Klarna was aiming for in 2021 and down from more than $15 billion earlier this year.<\/p>\n

Klarna declined to comment. Filings earlier this month showed that its second-quarter revenue rose 20 per cent from a year earlier on a like-for-like basis to $823 million, while adjusted operating profit was up $1 million to $29 million.<\/p>\n

FCA clears new trading platform for private firms\"The<\/p>\n

The London Stock Exchange is considering ways to attract more companies to Britain<\/p>\n

REUTERS<\/p>\n

The financial regulator has approved the London Stock Exchange to operate a new type of private stock market, created to win more business from private firms and inject new life into the UK stock market.<\/p>\n

The system is called Pisces, the \u201cprivate intermittent securities and capital exchange system\u201d.
Julia Hoggett, chief executive of the London Stock Exchange, said: \u201cThis new market demonstrates our commitment to the creation of a genuine funding continuum from the private to public markets so that businesses in the UK and around the world can be effectively supported across all stages of their growth.\u201d<\/p>\n

Emma Reynolds, economic secretary to the Treasury, said: \u201c\u2019This government is committed to working with the regulators and business to enhance our capital markets offering, supporting economic growth, and putting more money in working people\u2019s pockets.\u201d<\/p>\n

Inflation eats into household spending power<\/p>\n

Disposable income for 60 per cent of UK households fell last month as result of rising inflation, Asda\u2019s latest income tracker showed, with all households likely to feel the squeeze as the Bank of England expected inflation to rise to 4 per cent.<\/p>\n

Middle-income families (\u00a341,000 gross annual earnings) have seen the first drop in spending power in two years, down 1.6 per cent in July, while for lower-income households it fell 11.1 per cent. Higher-earning households remain more insulated, with income growth still outpacing rising costs.<\/p>\n

Inflation has risen to 3.8 per cent in July, up from 1.7 per cent in September last year, driven by increases in essential living costs. The cost of essentials, such as food, drink, and transport, have risen 5.1 per cent year on year.<\/p>\n

Jump in pensioners overcharged by taxman<\/p>\n

Thousands of pensioners have claimed back more than \u00a310,000 after being overcharged tax on their pension withdrawals, HMRC figures obtained by Royal London through a freedom of information request showed.<\/p>\n

Around 60,000 pension savers claimed refunds in the 2023-24 tax year, 20 per cent up on the previous year, Royal London\u2019s data showed. About 11,700 pensioners claimed back \u00a35,000 or more, including 2,400 who were given refunds in excess of \u00a310,000. The average refund was worth \u00a33,342, which was \u00a3280 more than 2022-23.<\/p>\n

Pension freedoms, which came into force from 2015, gave over-55s options over how to use their defined contribution pension pot. Generally, people can take up to 25 per cent of their pension as a tax-free lump sum, with the rest taxed as income.<\/p>\n

However, an \u201cemergency\u201d rate is applied to pension withdrawals, with HMRC assuming it will be the pensioner\u2019s monthly income for the rest of the tax year. This means that people could be overcharged if they make one-off withdrawals.<\/p>\n

Retailers shares drop after \u2018fear index\u2019 points to jitters<\/p>\n

CHRIS RATCLIFFE\/BLOOMBERG\/GETTY IMAGES<\/p>\n

Some of the UK\u2019s biggest retailers have started the week deep in the red after Deutsche Bank warned that its \u201cfear index\u201d is pointing to \u201cgrowing consumer concerns\u201d.<\/p>\n

Analysts at the German bank said they are now \u201ctaking a more cautious view on the UK consumer\u201d with the jobs market weakening, inflation ticking up again and people worried about tax rises in the autumn budget.<\/p>\n

In response to that, Deutsche expects Britons, particularly those on lower incomes, to rein in their spending on things such as clothes and home improvements.<\/p>\n

As a consequence the analysts have cut both Associated British Foods, the Primark owner, and Wickes, the DIY retailer, to \u201csell\u201d. Kingfisher, the B&Q owner, has been downgraded to \u201chold\u201d.<\/p>\n

Wickes shares have been the hardest hit, down 8.4 per cent to 202p this morning, while AB Foods shares have fallen 4.2 per cent to \u00a322.16. Kingfisher has dropped 4.2 per cent to 269\u00bdp.<\/p>\n

Britain, Germany and France meet Iran<\/p>\n

Senior officials from Britain, Germany, France are due to meet their counterpart from Iran in Geneva today to discuss demands that the Middle Eastern country revive nuclear inspections and diplomacy or face the reimposition of sanctions that were lifted under a 2015 deal.<\/p>\n

The three European countries, known as the E3, have threatened to trigger the \u201csnapback\u201d of sanctions at the United Nations Security Council by October 18, when a now largely defunct nuclear deal struck 10 years ago between Tehran and major powers expires.<\/p>\n

Iran is still angry about the bombing of its nuclear facilities by the US and Israel, the E3\u2019s allies.<\/p>\n

France\u2019s CAC drops 2% on political uncertainty\"Francois<\/p>\n

Francois Bayrou, the French prime minister<\/p>\n

SHUTTERSTOCK<\/p>\n

France\u2019s leading CAC 40 share index fell 2 per cent this morning as political uncertainty deepened and the minority government looked likely to be ousted next month.<\/p>\n

Three main opposition parties said they would not back a confidence vote which prime minister Francois Bayrou announced for September 8 over his plans for sweeping budget cuts.<\/p>\n

Shares of French banks BNP Paribas and Soci\u00e9t\u00e9 G\u00e9n\u00e9rale fell 6.2 per cent and 5.2 per cent respectively.<\/p>\n

The wider European Stoxx 600 index fell 0.7 per cent \u2014 UK and German stock markets were also lower \u2014 after President Trump said he was firing Federal Reserve governor Lisa Cook, sparked a flight from US assets. Doveish comments from US Fed chairman Jerome Powell<\/a> took the index within striking distance of an all-time high on Friday.<\/p>\n

FTSE 100 ends five-day winning streak<\/p>\n

London\u2019s leading stock market has opened sharply lower this morning on concerns about the impact of President Trump attempts to interfere with the independence of the US Federal Reserve.<\/p>\n

The FTSE 100<\/b> fell 69 points, or 0.7 per cent, to 9,252.18 after closing at a new high of 9,321.40 on Friday after a five-day winning streak. Overnight Wall Street stocks ended lower and markets in Asia were lower.<\/p>\n

Bunzl <\/b>was the biggest riser, up 4.78 per cent after the distributor of workplace products reported a fall in interim profits due to cost challenges in its largest business in North America, but resumed its \u00a3200 million share buyback, which it had paused in April.<\/p>\n

Gold miners rose as investors bought safe haven assets after Trump said he was firing Fed governor Lisa Cook. The price of the precious metal rose 0.2 per cent to $3,372.20 an ounce. Fresnillo <\/b>and Endeavour Mining<\/b> gained 1.78 per cent and 1.02 per cent, respectively. <\/p>\n

B&Q owner Kingfisher <\/b>and Primark owner AB Foods <\/b>fell 4.77 per cent and 3.46 per cent respectively after a gloomy outlook for UK consumers from Deutsche Bank, particularly for DIY spending. British American Tobacco <\/b>lost 2.2 per cent after its chief financial officer stepped down immediately.<\/p>\n

Lowest number of entry-level jobs in five years<\/p>\n

Vacancies for entry-level jobs in the UK have dropped to their lowest level in five years in a further sign of a cooling labour market and falling demand for young lower-paid staff in the wake of government tax hikes.<\/p>\n

The latest survey data from Adzuna, a jobs-matching search engine, showed vacancies across the economy had declined by 1.24 per cent in the three months to July to 865,000, reversing gains made in the previous three-month period and corroborating official data showing a steady fall in advertised jobs over the past two years. Mehreen Khan, our economics editor has more here<\/a>.<\/p>\n

French finance minister hints at IMF bailout\"Eric<\/p>\n

Eric Lombard said: \u201cThis is a risk that is in front of us\u201d<\/p>\n

SHUTTERSTOCK EDITORIAL<\/p>\n

Eric Lombard, the French finance minister, hinted that there was a risk the International Monetary Fund would have to intervene in the economy if prime minister Fran\u00e7ois Bayrou\u2019s minority government falls next month.<\/p>\n

He told France Inter radio when asked about comments by other politicians that a collapse of Bayrou\u2019s government could result in the IMF having to intervene in France\u2019s finances. Lombard said: \u201cThis is a risk that is in front of us.\u201d<\/p>\n

Bayrou\u2019s minority government looked increasingly likely to be ousted after three main opposition parties said they would not back a confidence vote which Bayrou announced for September 8 over his plans for sweeping budget cuts.<\/p>\n

France\u2019s shares were set to open sharply lower and French government bonds were sold off. Futures on France\u2019s CAC40 index were down 1.2 per cent. The yield of the 10-year bond rose 2 basis points in early trading to around 3.51 per cent, its highest since March. When a bond\u2019s yield rises, its price falls.<\/p>\n

Wood accepts lower Sidara offer<\/p>\n

The embattled UK engineering consultancy has been dealt a further blow after its Middle Eastern suitor cut the value of its takeover approach. John Wood Group said Sidara would be reducing its April proposal of 35p a share to 30p, bringing a price tag of about \u00a3242 million down to \u00a3207 million.<\/p>\n

The board of Wood, which employs about 35,000 people on projects in industries including oil and gas, said it would still \u201cbe minded to recommend\u201d the reduced terms to its shareholders.<\/p>\n

Shares in the Aberdeen business have been suspended since May because it could not meet a deadline to publish audited accounts. An independent review carried out by Deloitte found material weaknesses in the financial culture, with Wood likely to have to restate numbers for 2022 and 2023 as well. The Financial Conduct Authority is investigating the situation.<\/p>\n

The Takeover Panel has already agreed to several extensions for Wood and Sidara to reach an agreement, with the next one due to expire on Thursday.<\/p>\n

Bunzl first-half profits drop 10%<\/p>\n

The FTSE 100 distributor of workplace products has reported that interim pre-tax profits fell 10 per cent to \u00a3250.1 million in the six months to the end of June, down from \u00a3279.4 million over the same period last year. Revenue over the period was a fraction lower at \u00a35.76 billion. Operating profit in the US, the group\u2019s largest business, fell 14.7 per cent.<\/p>\n

In other corporate news:<\/p>\n

British American Tobacco<\/b>: The tobacco giant has announced that Soraya Benchikh is \u201cstepping down\u201d as chief financial officer immediately. Javed Iqbal, who is currently director, digital and information, will take on the role of interim chief financial officer.<\/p>\n

Halma<\/b>: The engineering and technology conglomerate has paid \u20ac150 million for Brownline, a provider of advanced gyroscopic locating systems. It will be funded from Halma\u2019s existing facilities. Netherlands-based Brownline made revenue of \u20ac37 million in the year to the end of March. It will be a standalone company within Halma, led by its current management team.<\/p>\n

Ashtead Technology<\/b>: Alongside interim results, the Aim-listed provider of subsea equipment for the offshore energy sector has confirmed that it plans to move to a main market listing. The group hopes to complete the move in October.<\/p>\n

Trump hits confidence in US assets<\/p>\n

The dollar and longer-dated US government bonds slid today after President Trump said he was firing Federal Reserve governor Lisa Cook, an unprecedented move that further undermines confidence in the Fed\u2019s independence and US assets.<\/p>\n

The dollar fell against a basket of currencies, including the pound which strengthened to $1.3465. The yield on the benchmark US 10-year bonds rose 1.8 basis points to 4.29 per cent. The yield on the 30-year bond rose 3.2 basis points to 4.92 per cent.<\/p>\n

Stock markets in Asia followed declines on Wall Street as the news muddied the outlook for Fed policy and stoked uncertainty over prospects for a rate cut next month. Gold touched a two-week high of $3,376.52.<\/p>\n

\u201cAll of this, tariffs included, is just another reason the US can\u2019t be trusted,\u201d said Bart Wakabayashi, the Tokyo Branch Manager of State Street. \u201cThere\u2019s no credibility. That\u2019s the basis of the US being the safest investment in the world. If you\u2019re a responsible investor, it gives you pause.\u201d<\/p>\n

Trump says he has no confidence in Cook\u2019s integrity\"Combo<\/p>\n

SAUL LOEB, ANDREW CABALLERO-REYNOLDS\/AFP VIA GETTY IMAGES<\/p>\n

President Trump said he was firing Federal Reserve governor Lisa Cook \u201ceffective immediately\u201d over alleged improprieties in obtaining mortgage loans, escalating his pressure on the central bank and raising concerns about its independence.<\/p>\n

He said in a letter to Cook, the first African-American woman to serve on the Fed\u2019s governing body, there was \u201csufficient reason to believe you may have made false statements on one or more mortgage agreements\u201d. <\/p>\n

Trump claimed Cook indicated on documents for separate mortgage loans on properties in Michigan and Georgia that both were her primary residence. <\/p>\n

He wrote: \u201cThe American people must be able to have full confidence in the honesty of the members entrusted with setting policy and overseeing the Federal Reserve \u2026 I do not have such confidence in your integrity\u201d.<\/p>\n

<\/p>\n

Cook responded through the law office of lawyer Abbe Lowell, saying \u201cno cause exists under the law, and he has no authority\u201d to remove her from the job she was appointed to by former US President Joe Biden in 2022. Her lawyer said that Trump\u2019s \u201cdemands lack any proper process, basis or legal authority. We will take whatever actions are needed to prevent this attempted legal action.\u201d<\/p>\n

The terms of Fed governors are structured so they outlast the term of a given president, but the Federal Reserve Act does allow removal of a sitting governor for cause. That has never been tested by presidents.<\/p>\n

\u2022 Read more <\/b>here<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The UK 30-year bond yield rose close to a 27-year high this morning on increased concerns about the…\n","protected":false},"author":2,"featured_media":24252,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[175],"tags":[20393,829,79,3349,18,20394,20392,20395,19,17,20391,188,7973,187,1294],"class_list":{"0":"post-24251","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-20393","9":"tag-and","10":"tag-business","11":"tag-consumers","12":"tag-eire","13":"tag-falls","14":"tag-ftse","15":"tag-gloomy","16":"tag-ie","17":"tag-ireland","18":"tag-live","19":"tag-markets","20":"tag-on","21":"tag-trump","22":"tag-uk"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/24251","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=24251"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/24251\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/24252"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=24251"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=24251"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=24251"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}