Sterling drops to six-week low against euro
(Reuters) - Sterling rose against the U.S. dollar on Thursday but dropped to a six-week low against the euro, following weak economic data from the U.S. and the UK.
The euro hit its highest level in almost four years against the U.S. currency as investors rushed into safe-haven assets, while remaining cautious about the impact of the U.S.-China trade deal.
The downturn in British manufacturing was less steep than initially feared in May, but output, orders, and jobs continued to decline as companies cited recent tax hikes and U.S. President Donald Trump's tariffs.
"Thursday's data shows the UK economy continues to face challenges," said Nick Andrews, senior forex strategist at HSBC.
"Tuesday's labour market data also loosened more than expected while Wednesday's government spending review did little to lift the outlook for growth but instead turned the focus to where potential tax rises might fall in the Autumn."
British government bond yields and the pound dropped on Tuesday after the release of weaker-than-expected labour market data that showed wage growth slowing to its lowest since September 2024, boosting bets on Bank of England rate cuts.
The pound fell 0.6% to 85.28 pence per euro after hitting 85.37, its lowest since May 2.
Analysts recently flagged that the yield spreads between the UK and the euro area pointed to sterling at 85 pence.
The Bank of England meets next week, and although it is expected to stand pat on rates, money market traders added to bets for additional rate cuts this year.
Money markets fully priced a 25 basis points BoE rate cut by September and 50 bps by year-end.
"We see a strong possibility that the Monetary Policy Committee ditches its hawkish bias, which could pave the way for an August (interest rate) cut," said Matthew Ryan, head of market strategy at Ebury.
The financial market's reaction to British Finance Minister Rachel Reeves's plans was muted on Wednesday, as many economists already expected additional taxes later this year.
Sterling rose 0.4% versus the dollar to $1.3597 .
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
an hour ago
- Daily Mirror
'Rarest 50p in UK circulation' worth £150 issued just two years ago
The 2023 coins display a portrait of the monarch on one side and a uniquely definitive image on the reverse Before carelessly tossing aside that loose change in your purse, check your coins. A recently minted 50p is now worth a hefty sum and you might just profit from it. At first glance, it may seem like an ordinary coin - it's a silver, heptagon-shaped 50p minted only two years ago. Yet, the Royal Mint has crowned it 'the rarest 50p coin in circulation', with only 200,000 available. "In 2023, the Atlantic salmon became the rarest 50p coin in circulation," specialists at the British coin maker have claimed. "Part of eight new definitive designs representing flora and fauna from across all four UK nations following His Majesty King Charles III's accession to the throne, it entered circulation at the end of November 2023." The 2023 coins, issued six months after King Charles III's coronation, display a portrait of the monarch on one side, illustrated by Martin Jennings. This is accompanied by a unique, definitive salmon image on the reverse, reportedly inspired by His Majesty's passion for the environment. Populations of Atlantic salmon are severely impacted by climate change, overfishing, water pollution, and various other human-influenced factors. Nonetheless, they can still be seen in the clean rivers of Scotland and Wales, as well as some regions of North and South West England. Right now, the Britannia Coin Company values certain '2023 Atlantic Salmon' pieces from £150. Others are listed for as much as £260 on eBay, though demand and pricing are forecasted to potentially increase. According to specialists at Copes Coins, the most valuable among these are said to exclude a 'privy mark'. This refers to a tiny crown image located at the nape of His Majesty's neck. In an online blog, they claimed: "The Salmon 50p coins in the Royal Mint sets include the special privy mark (the little crown) shown below, behind the King's head. This version of the coin is only found in the 2023 Definitive Annual Sets, and can still be bought from the Royal Mint for £34." They added: "The version you will find in your change WILL NOT have a privy mark[...] The coins without a privy mark and dated 2023 are the rarest coins in circulation, and they are the ones that have a mintage figure of only 200,000." Besides this, it's also worth acknowledging that various other factors can affect the value of a coin. For instance, a coin in poor condition will likely fetch less than another that appears almost brand new. Chris Yang, co-founder of Coins Value, previously told the Daily Record: "Coins in perfect 'mint' condition are worth far more than their well-worn, damaged, and poor-condition counterparts. Sometimes a minor difference in grade translates to hundreds, maybe thousands in value." He went on: "In sum, scrutinise your coins, have them identified and graded professionally, and work with experienced numismatists to determine the real value of your coins so that you can sell them for the best price. "Remember, the thrill of coin collecting isn't always about striking gold; it's about connecting with history and uncovering hidden treasures. Your old coin jar might hold more than just spare change – it could be a portal to a fascinating past."
Daily Mail
2 hours ago
- Daily Mail
EXCLUSIVE Walmart staff warn shoppers over avalanche of price hikes on all your favorite products
Walmart employees say they're being hit with a flood of in-store price updates — and they're sounding the alarm online. Screenshots from workers' handheld inventory devices show thousands of items being repriced across entire stores — in some cases, more than 15,000 in a single location. Another said that at their store, just in the clothing section, there were '4,000 today'. 'Lately my section has been getting 5,000 to 9,000 a week,' another added, saying it was a 40 to 50 percent increase over usual. Not all of the adjustments are price hikes. Some will be markdowns or seasonal promotions. But the sheer volume has workers overwhelmed — and it's raising eyebrows as Walmart deals with inflation-weary shoppers, rising supplier costs, and renewed pressure from President Donald Trump's tariffs. Independent analysts have told that the President's signature policy would make products more expensive. Walmart confirmed as much in its most recent earnings update, revealing it would raise prices in direct response to the new tariffs. The grocery giant — which imports 60 percent of its goods from China —said it would have to pass along the 'unprecedented' costs of Trump's trade war on to consumers. 'Pricing fluctuations are a normal course of business and are influenced by a variety of factors,' Joe Pennington, Walmart's global press office lead, told 'We remain dedicated to managing inventory well and managing costs to maintain everyday low prices. 'Nothing about the current environment changes our focus — in the last quarter we had 6,500 rollbacks which is 1,000 more than the previous quarter.' Last month, Walmart CEO Doug McMillon warned that prices would rise in response to sweeping tariffs on Chinese goods — a comment that drew backlash from President Donald Trump. 'Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain,' Trump threatened on social media. 'Between Walmart and China they should, as is said, "EAT THE TARIFFS," and not charge valued customers ANYTHING. I'll be watching, and so will your customers!!!' Walmart has since modestly backtracked on its higher price warnings, repeatedly saying it is trying to 'keep prices low.' But attempts to skirt the tariffs will be challenging. Previously, a Walmart employee posted a picture of a price change on a Hasbro doll - the price increased by over 40 percent Meanwhile, a growing number of staffers are posting on social media, claiming products are getting more expensive. For example, in another thread, an employee posted a picture of a Hasbro My Real Baby doll's price surge, shocking the tag from $34.97 to $49.97 — a nearly 43 percent increase. For industry analysts, Walmart's pricing changes are seen as a bellwether for the rest of the retail economy. The retailer has over 4,800 stores across the US. It was the largest company by revenue in the world in 2024. Because of its sheer size, wherever Walmart's pricing goes, other stores will likely follow. But the retailing giant isn't the only chain under tariff pressure. Several retailers have warned that their prices will also climb with Trump's tariff regimes. Executives from Best Buy and Target have also warned of incoming price increases tied to the new trade policies. And when Amazon said it would label tariffs as a separate line item on some product listings, the White House publicly called the move a 'hostile and political act.' The e-commerce giant quickly scrapped plans to advertise the tariff increases after the call-out.
The Independent
2 hours ago
- The Independent
Trump clears path for Nippon Steel investment in US Steel, so long as it fits the government's terms
President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order didn't detail the terms of the national security agreement. But the iconic American steelmaker and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a ' golden share " — essentially veto power to ensure the country's national security interests are protected against cutbacks in steel production. 'We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership," the two companies said. "This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. The companies offered few details on how the golden share would work, what other provisions are in the national security agreement and how specifically the $11 billion would be spent. White House spokesman Kush Desai said the order 'ensures U.S. Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America's national and economic security.' James Brower, a Morrison Foerster lawyer who represents clients in national security-related matters, said such agreements with the government typically are not disclosed to the public, particularly by the government. They can become public, but it's almost always disclosed by a party in the transaction, such as a company — like U.S. Steel — that is publicly held, Brower said. The mechanics of how a golden share would work will depend on the national security agreement, but in such agreements it isn't unusual to give the government approval rights over specific activities, Brower said. U.S. Steel made no filing with the U.S. Securities and Exchange Commission on Friday. Nippon Steel in late 2023 offered nearly $15 billion to purchase the Pittsburgh-based U.S. Steel in an acquisition that had been delayed on national security concerns starting during Joe Biden's presidency. As it sought to win over American officials, Nippon Steel gradually increased the amount of money it was pledging to invest into U.S. Steel. American officials now value the transaction at $28 billion, including the purchase bid and a new electric arc furnace — a more modern steel mill that melts down scrap — that they say Nippon Steel will build in the U.S. after 2028. Nippon Steel had pledged to maintain U.S. Steel's headquarters in Pittsburgh, put U.S. Steel under a board with a majority of American citizens and keep plants operating. It also said it would protect the interests of U.S. Steel in trade matters and it wouldn't import steel slabs that would compete with U.S. Steel's blast furnaces in Pennsylvania and Indiana. Trump opposed the purchase while campaigning for the White House, and using his authority Biden blocked the transaction on his way out of the White House. But Trump expressed openness to working out an arrangement once he returned to the White House in January. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans,' although Nippon Steel has never backed off its stated intention of buying and controlling U.S. Steel as a wholly owned subsidiary. 'We have a golden share, which I control,' Trump said. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday. ___ Levy reported from Harrisburg, Pennsylvania.
