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Inditex’s slow growth

Zara’s parent company, Inditex, reported a 6 per cent revenue rise in early Q2, but warned that currency fluctuations could cut sales by 3 per cent this year, up from the 1 per cent previously expected.

Shares dropped 6.4 per cent in early Madrid trading. Barclays analysts said the update “fails to dispel concerns on slowing growth.” Inditex expects global demand and FX volatility to weigh further on results in 2025.

Poundland sold for £1

Thousands of Poundland jobs are at risk after the retailer was sold for just €1 to US firm Gordon Brothers, former owners of Laura Ashley. The sale includes a restructuring plan and repayment of tens of millions to former owner Pepco Group, which retains a minority stake.

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Up to 100 stores could shut across the UK and Ireland, putting pressure on the chain’s 16,000 workers.

Rachel Reeves announces spending review

Chancellor Rachel Reeves unveiled the UK’s 2025 Spending Review, boosting defence, the NHS, and AI, while slashing foreign aid.

Defence gets an £11bn uplift, while the NHS gains £29bn a year, plus £10bn for digital upgrades. Reeves pledged £2bn for homegrown AI and £30bn for nuclear power.

Meanwhile, the Foreign Office sees an 8.3 per cent cut, and asylum hotel use will end by 2029.

Gibraltar to hike sales tax

Gibraltar will raise its sales tax from 3 per cent to at least 15 per cent within three years under a new UK-EU post-Brexit deal, aligning with EU VAT rules to avoid unfair competition with Spain.

The agreement also shifts customs checks on all goods entering the British territory to Spanish authorities, mainly at Algeciras port.

Gibraltar’s airport will close to cargo, impacting logistics and fuelling costs for local businesses.

Spanish footballers in €3m crypto scam

Top football players including Papu Gómez, Lucas Ocampos, and Iván Rakitić are under investigation in Barcelona for promoting a failed NFT project that allegedly defrauded investors of €3 million.

The company, Shirtum Europa S.L.U., used the players’ images to market $SHI tokens and NFTs, which never delivered value or utility.

Accusers claim funds vanished without explanation, and prosecutors are investigating fraud and misappropriation. Personal ties between Gómez and one of the promoters may complicate his legal exposure.

Spain’s budget deficit to drop

Spain’s budget deficit is forecast to fall from 3.2 to 2.8 per cent of GDP in 2025, according to the government’s Annual Progress Report.

The improvement is driven by VAT reversals, new fiscal measures, and stable expenditure. Revenue is expected to rise 6.3 per cent, outpacing nominal GDP growth.

However, structural challenges persist, with public debt projected to remain high at 101.7 per cent of GDP.

Defence spending will grow but is offset by cuts elsewhere. The report confirms Spain will meet EU fiscal rules – but just barely.

AI‑fraud spike

Fraud losses in the UK jumped 12 per cent last year to over £1 billion, driven by criminals using AI deepfakes and voice clones. Banks are being urged to deploy more adaptive AI tools to combat increasingly sophisticated financial scams and identity spoofing.

L’Oréal Buys Medik8

On June 9, L’Oréal announced the acquisition of a majority stake in British dermocosmetics brand Medik8 – valued at around €1 billion – boosting its Luxe division. The deal, backed by JPMorgan and with Inflexion retaining a minority share, solidifies L’Oréal’s science-based skincare expansion.

China–Spain Ties

China’s VP Han Zheng opened a four-day visit to Spain on June 10, meeting King Felipe and PM Sánchez. Talks focused on Chinese investment in green tech, EV batteries, and hydrogen, while Madrid aims to boost tourism by 36 per cent from China this summer.

Abacum Series B

Barcelona‑founded Abacum has secured a €52.5 million Series B led by Scale Venture Partners, with Cathay Innovation, Y Combinator, Creandum, Kfund and Atomico also investing. The business‑planning SaaS uses Agentic AI to unify financial data, accelerate scenario modelling and scale in the U.S., which now drives over half its revenue.

OfI revamp

The UK has officially relaunched its Office for Investment, under joint leadership of Downing Street and the Department for Business and Trade. The revamped OfI will actively court high-impact foreign direct investment in tech, AI, green energy and scaleups – creating a more startup-friendly climate and supporting sustainable growth.

Banks galore

Spain has the highest banking concentration in the EU. The top five financial institutions in the Spanish market account for a 69.5 per cent share. This is ahead of Italy (48.7 per cent), France (45.3 per cent), and Germany (33.4 per cent), according to European Central Bank data.

Snap UK Leader

Snap (the parent company of Snapchat) has appointed Jake Thomas as its new Senior Commercial Director for the UK, based in London. Previously Head of UAE Operations since 2017, he’ll now drive Snap’s UK business and digital strategy, managing brand partnerships, monetisation models, and a high-performance commercial team.

Freixenet reaches deal

Freixenet workers have reached a preliminary deal with the cava producer to reduce planned layoffs from 180 to 156, including 32 early retirements, following union negotiations. The adjusted figure brings actual job losses down to 124. The agreement includes severance compensation of 50 days’ salary per year worked, with no cap. A strike that began has now been called off after workers voted to accept the terms on June 4. Freixenet cites the ongoing three-year drought in Catalonia as the reason for severe operational disruptions. The company insists the cuts are “urgent” to ensure long-term sustainability in the face of climate and supply challenges.

VodafoneThree 5G

Following its £16.5 billion merger, VodafoneThree has unveiled an £11 billion investment plan to roll out standalone 5G across 99.95 per cent of the UK by 2034 (up from 47 per cent). This will create 400 contact‑centre jobs now, plus 9,000 roles over the next eight years.

Summer hotel staff

Thousands of hotel workers across the Canary and Balearic Islands threaten rolling strikes every Friday from July onward, protesting pay and conditions. Despite wage offers between 9.5–13.5 per cent, unions say they’re insufficient. The disruption could impact Spain’s crucial summer tourism, advising visitors to plan ahead.

Spain’s tax agency

More than 7,965,000 taxpayers received their refunds prior to the start of in-office service, totalling €5.516 billion. As of June 2, 2025, 73.5 per cent of refunds and 60 per cent of requested amounts have been processed.

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