Business news live: UK economy grew 0.7% and financial advice rules get ‘once in a generation’ overhaul

MPs have warned that those that spend money on a Lifetime ISA (LISA) could get again much less money than they put into the scheme.

Nonetheless, their dual-nature has lengthy been a goal of criticism, in addition to the complicated standards for utilizing the funds, which has led to many individuals shedding greater than they initially save.

Final week it was all in regards to the commodities, so how are they faring as we speak?

Brent Crude is down 0.14 per cent having dropped barely over the weekend too, leaving it at $66.66. Guess environmental teams will love that.

Gold is barely up, 0.55 per cent to $3,305 – that’s nonetheless approach under the $3,431 shut set in mid-June or any of the peaks earlier this 12 months because the steel regularly set new all time highs.

Lastly, a fast take a look at the GBP:USD alternate charge, which is down 0.1 per cent.

At present, £1 is $1.3700 – a reminder that in early January, it was under $1.22. Fairly some change – that is the best it has been since late 2021/early 2022.

WH Smith determined earlier this 12 months to dump its high-street shops, chances are you’ll keep in mind, focusing as an alternative on its journey space retailers comparable to airports.

Modella purchased the others and WH Smith forecast initially a £52m gross money determine from the sale however a “extra cautious” atmosphere amongst stakeholders and “a interval of softer buying and selling, has resulted in a discount within the ongoing money move of the enterprise.”

Meaning they now anticipate solely as much as £40m gross from the disposal.

Lloyds Financial institution have introduced their newest launch of a money bonus switching supply to draw new clients – and by way of an up-front payment, it’s a market chief.

The excessive avenue is providing £185 for eligible new clients who be part of utilizing the CASS service for a Premier or Membership Lloyds account.

Further advantages throughout the 2 account varieties can embrace entry to the next charge financial savings account of 6.25 per cent and perks comparable to a 12 months of Disney plus or cinema tickets.

Phrases apply and the supply begins tomorrow.

Extra on automobile producers now after a press release from Lotus Automobiles revealed no plans to depart the UK, regardless of hypothesis on the contrary.

Enterprise secretary Jonathan Reynolds was resulting from converse to the corporate throughout the weekend.

“Lotus Automobiles is constant regular operations, and there are not any plans to shut the manufacturing unit,” a press release mentioned.

“We’re actively exploring strategic choices to boost effectivity and guarantee international competitiveness within the evolving market.

“We’ve got invested considerably in R&D and operations within the UK, over the previous six years. Lotus stays dedicated to the UK, and its clients, staff, sellers, suppliers, in addition to its proud British heritage.”

Lotus is majority-owned by Chinese language multinational Geely and employs greater than 1,200 folks in Norfolk.

Monday marks the day that tariff cuts for automobile and aerospace sectors coming into motion.

The deal is a part of the UK-US commerce settlement, with automobile producers now seeing a ten per cent tariff quota relatively than 27.5 per cent, and the aerospace sector seeing no levy in any respect.

Sir Keir hailed the “historic commerce deal” with the US, clinched after Donald Trump imposed the import taxes as a part of his “liberation day” tariffs on nations internationally.

A brand new week has began within the inventory markets and, following a powerful end to final week, the FTSE 100 is barely up this morning at +0.14 per cent.

Defence corporations Rolls Royce (+1.8pc) and Babcock (+2.29pc) are the leaders in early buying and selling.

France’s CAC 40 is flat and Germany’s DAX is up across the similar margin because the FTSE 100.

The FCA has introduced an overhaul of economic recommendation laws, which means hundreds of thousands could now have entry to steerage they beforehand couldn’t afford or had been uncertain about getting.

In precept, the thought ought to see “focused help” bridge the hole between paid-for particular person monetary recommendation, and the standard free steerage which is broad-spectrum and never essentially related to any particular person.

Sarah Pritchard, deputy chief government of the FCA, mentioned: “We wish to assist customers navigate their monetary lives and plan for the long run. Among the most troublesome monetary choices we face are the best way to save, make investments and put together for a cushty retirement.

“These once-in-a-generation reforms will assist folks navigate their monetary lives and provides them better confidence to speculate. This can be a win-win for customers and corporations alike.”

From January to March of this 12 months, the UK economic system grew 0.7 per cent – largely supported by manufacturing and companies.

It’s already anticipated {that a} slowdown is to be seen for April, and quite a bit has occurred since then – tariffs, Center East missiles, commerce offers, inflation and extra – however Thomas Pugh, chief economist at RSM UK, nonetheless expects general annual progress to come back in optimistic.

“There might be an inevitable slowdown in Q2 (April-June), however we predict underlying progress remains to be optimistic and anticipate annual progress of just a little over 1 per cent.

“Though headline progress remained at 0.7 per cent at first of the 12 months, there was a big change within the drivers of progress. Shopper spending was revised up whereas complete funding was revised down from 2.9 per cent to 2.0 per cent. This is smart, as the massive soar within the saving charge had appeared at odds with strengthening shopper confidence and the development in consumer-facing companies.

“Trying forward, Q2 will look considerably worse than Q1 as there may be some payback from exercise introduced ahead to keep away from taxes and tariffs. We expect progress of 0.2 per cent q/q, however underlying progress stays optimistic. The massive query now could be whether or not the latest string of weak information in retail gross sales and employment is a one-off, because of the preliminary shock of tax will increase and tariffs, or whether or not it’s the beginning of a brand new pattern. We suspect it’s extra more likely to be the previous. Now that uncertainty has began to recede, shopper confidence is rebounding, and enterprise surveys level to the worst of the labour market ache being behind us.

“That mentioned, the economic system is going through extra headwinds within the second half of the 12 months than it did in Q1, uncertainty stays elevated, inflation might be round 3.5 per cent and wage progress will most likely sluggish additional.

“Meaning progress is unlikely to get again to the heady heights of Q1’s 0.7 per cent anytime quickly. Total, we anticipate progress of round 1.2 per cent this 12 months.”

Good morning all and welcome to a different week on the planet of enterprise and finance.

Heaps to have a look at throughout the week and we’re beginning with the UK economic system after the most recent figures emerged.

Hope you had weekend – let’s get again into it.