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Economics

  • As it happened: UK stocks cool after Astrazeneca drags; Trump and Iran clash over peace talks

    August 3, 2026

    Welcome back to the City AM liveblog. The London stock market is starting the new week relatively mixed after Donald Trump hinted a deal between US and Iran on the Strait of Hormuz is near, but was contradicted by communication from Tehran. The US President has said that Saudi Arabia, the UAE, Qatar and Iran [...]

  • Iran war could ‘halt growth’ across UK economy 

    August 3, 2026

    The Iran war could “halt growth” in the UK economy as the success of Andy Burnham and John Healey’s economic management largely hinges on President Trump’s decision-making, a City firm has warned.  Big Four consultancy EY has said that the UK economy could perform better than first expected this year as its growth forecast was [...]

  • Natwest hikes targets again after jump in profit

    July 31, 2026

    Natwest has upgraded its income targets for a second quarter running as the bank posted better than expected profit and dished out a bumper dividend to investors. The blue-chip lender reported a 20 per cent jump in pre-tax profit in the first six months of 2026 to £4.3bn, up from £3.6bn the year prior and [...]

  • Burnham accused of imposing ‘top–down’ devolution 

    July 30, 2026

    Andy Burnham’s devolution agenda has been slammed over its “top down” approach after the Prime Minister unveiled new plans to share income tax revenue with local leaders.  Burnham, himself a former Manchester mayor, said regional leaders in England will begin receiving a “greater share of locally generated revenues” next spring as part of his push [...]

  • ‘It’s going to impact work’: Lloyds to cut £2bn in costs with AI

    July 30, 2026

    The boss of Lloyds Banking Group is preparing to wield the axe on its cost base as the bank doubles down on AI ambitions. Charlie Nunn, the chief executive of the financial services giant, said AI is “going to impact work” and “require us to reskill people and hire new people” as he revealed a [...]

  • Bank of England holds interest rates but warns of rises to come

    July 30, 2026

    The Bank of England has opted to hold interest rates at 3.75 per cent after the UK economy surprised economists with better results for inflation – though policymakers warned that “policy strategy could change” ahead of a difficult second half of the year for price stability.  The Monetary Policy Committee (MPC) held interest rates in [...]

  • Shell launches bumper buyback after earnings more than double on Middle East turmoil

    July 30, 2026

    Shell has said it will continue its bumper share buyback programme after revealing the Iran war’s effect on oil prices and trading volumes helped it book near-record profit. The Anglo-Dutch giant’s net profit spiked to $9.8bn between April and July, more than double the same period last year and beating analyst estimates. Shares were up [...]

  • Lloyds beats profit target as bank sets sights on more cost-cutting

    July 30, 2026

    Lloyds Banking Group beat its profit forecast for the first half of the year as the bank’s top boss laid out plans to make further cost savings in the years ahead. The FTSE 100 lender – which owns the Bank of Scotland and Halifax – recorded a £4.3bn pre-tax profit in the first half of [...]

  • Andy Burnham pledges ‘cost £63bn’ – and tax ideas could backfire

    July 30, 2026

    A series of tax cuts and spending pledges proposed by Andy Burnham and John Healey could cost the government up to £63bn by 2030, new analysis has shown.  Promises on defence, social care and council housebuilding could leave the Chancellor facing a bill of between £46bn and £63bn by the end of the decade, which [...]

  • Bank of England may set the stage for interest rate hikes this year

    July 30, 2026

    The Bank of England could today roll the pitch for a series of interest rate hikes this year after price shocks triggered by the war in Iran rippled through the global economy in the past quarter, City analysts have predicted. Analysts across financial firms in the City are expecting the Bank to leave interest rates [...]

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