UK stocks edge higher as investors assess US-EU deal
The internationally oriented FTSE 100 (.FTSE), opens new tab rose 0.1% as of 0926 GMT, while the midcap FTSE 250 index (.FTMC), opens new tab was up 0.3%.
The U.S. struck a framework trade agreement with the EU on Sunday, which imposes a 15% tariff on most EU goods and requires the bloc to invest around $600 billion in the U.S.
British Prime Minister Keir Starmer will meet U.S. President Donald Trump in Scotland on Monday for talks ranging from their recent bilateral trade deal to the worsening hunger crisis in Gaza.
Automobiles and parts (.FTNMX401010), opens new tab stocks led the sectoral gains, up 1.1%. The real estate sector (.FTUB3510), opens new tab advanced 0.8%, with Rightmove (RMV.L), opens new tab up 2.3% and Segro (SGRO.L), opens new tab rising 1.1%.
On the flip side, industrial miners (.FTNMX551020), opens new tab led the sectoral declines, down 0.9%, tracking lower metal prices.
Miners Glencore (GLEN.L), opens new tab lost 1.4% and Rio Tinto (RIO.L), opens new tab fell 1%.
In company news, GSK (GSK.L), opens new tab rose 1.3% after the drugmaker and China's Jiangsu Hengrui Pharmaceuticals (600276.SS), opens new tab agreed on a $500 million deal to develop up to a dozen new medicines, including a promising candidate for a chronic lung condition.
Ocean Wilsons Holdings (OCN.L), opens new tab lost 10.6%, top loser on the mid-cap FTSE 250 index, after the investment holding company and Hansa Investment (HAN.L), opens new tab agreed to an all-share merger to create a diversified investment firm with more than 900 million pounds ($1.21 billion) in net assets.
Meanwhile, the Bank of England is expected to slow the pace soon at which it shrinks its 558 billion-pound ($754 billion) holdings of government bonds, with economists hoping for some clarity next week on the central bank's longer-term goals for the stockpile.
Traders are currently pricing in an 86.5% chance of a 25 basis point BoE cut on August 7, according to data compiled by LSEG.
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Reuters
19 minutes ago
- Reuters
Euro hovers near one-month lows after trade deal, focus switches to Fed
SINGAPORE, July 30 (Reuters) - The euro steadied near its lowest in a month on Wednesday, nursing steep losses this week as investors counted the cost of the U.S.-EU trade pact and looked ahead to policy meetings from the Federal Reserve and the Bank of Japan. U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm. No major breakthroughs were announced, and U.S. officials said it was up to President Donald Trump to decide whether to extend a truce that expires on August 12. The Sino-U.S. talks come after a framework deal between the U.S. and EU was announced on Sunday. The accord has evoked a mix of relief and concern from Europe, as the agreement was lopsided and skewed towards the United States. "Markets seem to be increasingly interpreting trade agreements as symbolic and tactical rather than structural resolution," said Charu Chanana, chief investment strategist at Saxo in Singapore. "With terms often vague and enforcement mechanisms weak, investors are assigning lower market beta to these negotiations unless backed by concrete detail." The euro was 0.12% higher at $1.1558 in early trading after dropping for the first two days of the week and hitting a one-month low of $1.15185 on Tuesday. The euro is up 11.7% since the start of the year but on course for its first monthly drop this year. The single currency has benefited this year from the dollar losing its lustre due to Trump's erratic trade policies, prompting investors to look for alternatives. Sterling was at $1.3358 and the Australian dollar last bought $0.6517. The offshore yuan was little changed at 7.178 per U.S. dollar. The Japanese yen firmed a bit to 148.20 per dollar. That left the dollar index , which measures the U.S. currency against six others, at 98.815, hovering near a one-month high. The index is set to record its first month of gains this year. Investor focus will now switch to central bank meetings, with the Fed due to announce its policy decision later on Wednesday. The Fed is widely expected to stand pat, making comments from Chair Jerome Powell crucial to gauge the policy path. The policy decision comes in the wake of Trump's constant demands for rate cuts, which have coincided with an unrelenting campaign of attacks on Powell by the president and administration officials. There is speculation that Governor Christopher Waller and Vice Chair for Supervision Michelle Bowman could issue dissents if the Fed on Wednesday holds the policy rate steady for the fifth time since December. "While dissenting isn't uncommon, the dissents at this week's meeting may get more focus because Trump has made it crystal clear that he thinks the FOMC should be lowering interest rates," said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney. "Dissents at this meeting may be judged as political and put a dent in perceptions of the FOMC's independence." The BOJ is also expected to stand pat and the spotlight will be on comments from Governor Kazuo Ueda as investors hope the recent trade deal between Japan and the U.S. paves the way for the central bank to raise interest rates again this year.
Daily Mail
19 minutes ago
- Daily Mail
All new UK cars will have breathalysers and black box-style recorders under Labour plans to align with the EU
New British cars will follow European laws and be fitted with breathalysers and black box-style recorders, amid claims the move is a political ploy by Labour to reset its post-Brexit relationship with the EU. Sir Keir Starmer 's government argues that differences in car manufacturing between Britain and Europe will lead to higher costs being passed on to the customer. But critics argue such a move shows a desire by Labour to closely align Britain to rules and regulations implemented by Brussels. Labour previously agreed the UK would align with EU plant and animal health rules as part of concessions to form a closer relationship with the union. Now Lord Hendy, Minister of State for the Department for Transport, stated earlier this week in parliament that the government 'takes an explicit presumption in favour of alignment' in regards to how cars are manufactured. He added that the government would be 'considering options for requiring the fitment of the safety technologies mandated by the EU's general safety regulation' and would discuss these with individual manufacturers, the Society of Motor Manufacturers and Traders, and the National Franchise Dealers Association. Under the EU, new British and European cars followed the same legislation. But following Brexit, Brussels introduced the General Safety Regulation 2 (GSR2), which called for different devices and technology to be pre-installed. These include a breathalyser that prevents the car from starting if the driver fails an alcohol test. Event Data Recorders (EDRs), which can provide information on how fast a car was travelling before an accident, and Driver Drowsiness Warning (DDAW), which can alert a driver if they are becoming sleepy, are also required to be fitted into new vehicles. Northern Ireland follows GSR2 rules as part of the Brexit deal to prevent a hard border with the Republic of Ireland. But differences between new cars made under EU and UK rules could mean customers in Northern Ireland would face higher costs for purchasing a new vehicle from the mainland. Labour is understood to back an 'alignment' of the EU and UK safety laws to stop Northern Irish consumers being treated unfavourably. Car manufacturers are also said to see the advantage of aligning the rules. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders told The Telegraph: 'With the heavily integrated nature of the UK and European automotive sectors, regulatory alignment supports efficient production, keeping costs down for consumers while retaining the widest possible model choice.' But Brexit supporters argue that UK car manufacturers do not need to be led by Brussels and the move is simply an attempt by Labour to woo the EU. Former Tory leader Sir Iain Duncan Smith, said: 'This is a game being played out where they keep incrementally moving back towards the European Union.' Mark Francois, chairman of the Conservative European Research Group, added: 'This is still rule-taking from the EU, however you try and dress it up.' Away from the theatre of politics, in-built breathalysers - or 'alcolocks' as they are also known - are actually backed by the majority of motorists as a solution to stopping drink drivers from reoffending. A recent poll by the RAC found 53 per cent of drivers want courts to have the power to order anyone convicted of drink-driving to have alcolock breathalysers installed in their cars. Support for the interventionist approach comes as a Freedom of Information request to the DVLA found 27,000 individuals were convicted of multiple drink-driving offences in the 11 years leading up to July 2024. On the back of this evidence, the RAC is pushing for the Government to take up this method - already in use in other countries including Australia, Belgium and parts of the US - in a bid to reduce drink-driving. Simon Williams, RAC head of policy, said: 'Too many lives are lost and ruined by drink-driving. 'It's also very apparent that many of the drink-drivers caught by the police are reoffenders which implies something different needs to be done to change this dangerous behaviour.' Alcolocks – what are they? Could they become standard? Not everyone will have heard of alcolocks or alcohol-interlocks as they're properly known. Alcolock is actually a brand name – founded in the 70s - but has become the common name for breathalysers fitted to the car's ignition system. Once fitted a driver has to provide an alcohol-free breath sample in order to start the engine – usually blowing for five seconds. If there's little to no alcohol the engine will start. If it exceeds a set level it won't start. There are various options as to how they're mandated and who pays for them: For instance, courts could mandate them for reoffenders only, or anyone convicted of drink-driving. In other countries the fitting is generally paid for by the offender, although in cases of financial hardship the state can step in to cover the cost. However, it's worth noting that the EU introduced new rules in July 2024 requiring all new cars sold in the EU to be 'prepared' to have an alcolock fitted.
The Guardian
an hour ago
- The Guardian
US workers say Trump's immigration crackdown is causing labor shortages: ‘A strain on everybody'
Donald Trump's crackdown on immigration is piling pressure on US factories, according to employees and union leaders, as veteran workers from overseas are forced to leave their jobs. As economists warn the administration's full-scale deportation ambitions could ultimately cost millions of jobs, workers at two sites – in Michigan and Kentucky – told the Guardian that industrial giants are grappling with labor shortages. The US president has moved to strip more than a million immigrants of their legal status in the US, including by shutting down the Cubans, Haitians, Nicaraguans, Venezuelans (CHNV) Parole Program, which allowed hundreds of thousands to work legally in the country. It has meanwhile ramped up immigration arrest operations with prospective daily quotas of 3,000 arrests per day. Such moves have piled pressure on industries across the US economy – including the food, hospitality, construction, transportation and care sectors – which rely on large numbers of migrants to do essential work. At a GE Appliances plant in Louisville, Kentucky, more than 125 workers were abruptly forced out of their jobs in the spring due to programs cancelled as part of Trump's immigration crackdown, according to an employee. GE Appliances makes home appliances including refrigerators, microwaves and dishwashers. 'In three different buildings, on a couple of different shifts, stewards reported that they lost production so they weren't able to make all the products they were supposed to make,' said Jess Reese, a replacement operator at the plant and organizer for IUE-CWA Local 83761. 'It was hard to cover certain job tasks on the assembly line, and so that created chaos, and it was just hard to get things done.' Reese expressed concern about the threat of more workers being forced out. Trump's efforts to revoke protected status could impact an additional 200 union members next February, she said. 'Hundreds of workers kind of disappearing at the drop of a hat is no joke, as we've seen with the last wave of mass terminations.' A spokesperson for GE Appliances said: 'We added additional staffing where needed and continue to follow the law.' At a Kraft-Heinz plant in Holland, Michigan, meanwhile, workers are said to have been mandated to work overtime. The firm is one of the largest food and beverage companies in the world, behind brands including Philadelphia cream cheese and Jell-O deserts. 'We had people there for 20 years, and all of a sudden they get notification their immigration authorization is revoked,' Tomas Torres, a maintenance mechanic of 13 years, and president of RWDSU Local 705. 'And they can't be there anymore, and that just puts a strain on everybody,. 'The lack of people on the lines. There are employees running two machines; it should be one person per machine. Manager and supervisors are all stressed out, and cancelling vacations for people because they don't have enough to run the machines.' Torres has been working 12- to 14-hour days, he said: part of a first shift, all of a second shift, and part of a third shift. 'I'm tired. And you catch people falling asleep on the line, and it's a big safety issue,' he added. 'All of this that has happened has affected everybody at the plant. It's crazy, because I hear people complain every single day.' Kraft Heinz refuted the plant is experiencing labor shortages due to immigration policy changes, but did not say how many workers were lost at the plant due to the changes. 'Kraft Heinz has strict work authorization verification processes that comply with all applicable laws and regulations,' said the firm in a statement. 'Overtime is driven by the needs of the business, and we are currently in one of our busiest seasons of the year.' As Trump's officials press ahead, economists have warned that deporting millions of immigrants from the US could have drastic consequences. The Economic Policy Institute estimated this month that 4 million deportations would result in the loss of 3.3 million jobs held by immigrants in the US and 2.6 million US-born employees, hitting industries including construction and childcare. The American Enterprise Institute, a conservative thinktank, meanwhile found that Trump's immigration policies would likely lead to a negative net migration into the US for the first time in decades and result in a decrease in US gross domestic product of between 0.3% and 0.4%, or $70.5bn to $94bn in economic output, annually. 'One day they are there,' said Maria Jose Padmore, a human services assistant for Fairfax County in Virginia. 'And the next day, I'm looking for my coworker, and he's gone because their Temporary Protected Status expired. 'Forget about the fact that I now have to share my coworkers' job. Let's think about my coworkers' family: how are they going to put food on their table?' Padmore was speaking at a panel on how Trump's immigration polices are affecting workers, organized by the AFL-CIO in Washington DC this month. Gwen Mills, President of Unite Here, the largest hospitality union in the US, said they were 'wreaking havoc across the families of our coworkers and in our communities'. 'Oftentimes within the labor movement, we find ourselves divided by industries,' said Jimmy Williams, president of the International Union of Painters and Allied Trades, which represents construction workers. 'When it comes to immigration, it's gotta be the one single thing that puts a thread between a hotel worker, a construction worker, a service worker, a public employee, a teacher. This is something that affects every single working person in this country.' The Trump administration alleges that CHNV and other temporary protected status programs were abused, a claim challenged by groups such as Refugees International. 'There is no shortage of American minds and hands to grow our labor force, and President Trump's agenda to create jobs for American workers represents this Administration's commitment to capitalizing on that untapped potential while delivering on our mandate to enforce our immigration laws,' said Abigail Jackson, White House spokesperson. But its policies are already causing apprehension on the factory floor. 'This has a real impact on immigrant workers, obviously, but it also has a real impact on non immigrant workers,' Reese, at the GE Appliances plant in Louisville, said. 'It's really important that we stick together, because we all want the same things. 'We want safe workplaces. We want good wages. We all want to go home to our family in one piece. We want to live in a safe place. We want to be free. These are things we all share, and we're only going to get that stuff if we stick together.'
