{"id":1321,"date":"2025-07-11T10:56:03","date_gmt":"2025-07-11T10:56:03","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/1321\/"},"modified":"2025-07-11T10:56:03","modified_gmt":"2025-07-11T10:56:03","slug":"business-news-live-rachel-reeves-reacts-to-disappointing-gdp-figures-more-lenders-join-sub-4-mortgage-fight","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/1321\/","title":{"rendered":"Business news live: Rachel Reeves reacts to \u2018disappointing\u2019 GDP figures, more lenders join sub-4% mortgage fight"},"content":{"rendered":"

<\/a>Stock check: FTSE 100 and European shares fall on Friday<\/p>\n

The FTSE 100 had enjoyed a good week on the rise but it\u2019s all coming to an end today.<\/p>\n

Between poor economic data, more tariff turnarounds and general fatigue, looks like investors are exiting positions en masse ahead of the weekend.<\/p>\n

Around a 0.5 per cent drop for the FTSE 100 today so far – in Europe it\u2019s even bigger, with France and Germany seeing their main index down 0.9 per cent or more.<\/p>\n

\u201cThe UK economy being stuck in the mud and the threat of high tariffs on Canada won\u2019t be a shock to markets, but they are hard to ignore,\u201d said Dan Coatsworth, investment analyst at AJ Bell.<\/p>\n

\u201cEuropean indices are in the red and futures prices imply Wall Street will follow the same path when it opens for trading.<\/p>\n

\u201cWhether this is investors being reminded of headwinds or simply pausing for breath, it\u2019s clear that uncertainty will prevail well into the summer.<\/p>\n

\u201cThe corporate reporting season begins in earnest next week with the big US banks. That will shift the focus to profits and outlook statements, giving valuable insight into how the business world is coping with a multitude of pressures. Any corporate optimism is likely to prompt a tickertape parade on the markets as investors look for confirmation that tariff uncertainty hasn\u2019t caused widespread damage to earnings.\u201d<\/p>\n

Karl Matchett11 July 2025 11:01<\/p>\n

<\/a>Reeves pauses cash ISA changes after backlash<\/p>\n

Rachel Reeves has put her plans to reform cash ISAs on hold after speculation that she was considering reducing the allowance for tax-free cash savings was met with criticism from banks and building societies.<\/p>\n

Savers have a \u00a320,000 annual allowance which can be split across ISA types, but the most frequently used version is the cash ISA, which gives people a tax-free savings account. However, the government wants to encourage more people to start investing, to generate better long-term returns.<\/p>\n

Next week, the chancellor was expected to use her Mansion House speech to cut the limit on how much money could be put in the cash ISA product annually and potentially announce changes to the Lifetime ISA too, but that reform will now have to wait, with reports saying Ms Reeves wants to continue to consult with industry experts amid conflicting ideas on how to proceed.<\/p>\n

Karl Matchett11 July 2025 10:46<\/p>\n

<\/a>Investment Association calls for improvements in pension and retirement guides<\/p>\n

The Investment Association has published a report with four key findings in pursuit of better retirement solutions for people.<\/p>\n

Those recommendations include:<\/p>\n

Better support for pension contributors who don\u2019t get individual financial advice (so, many of us who are on workplace pensions)For advisers to develop better risk practices for people\u2019s risk and loss possibilities in retirementEnsuring value for money in retirementReform of rules to allow better retirement-oriented products<\/p>\n

Much of this involves changes for firms in the investment industry but with recent law changes over how much guidance can be given to people who don\u2019t get actual paid-for financial advice, the emphasis continues to be a gradual shift towards helping people point toward better long-term decisions and returns.<\/p>\n

Karl Matchett11 July 2025 10:24<\/p>\n

<\/a>UK exports to US returned to growth in May as trade deal cut some key tariffs<\/p>\n

UK exports to the US returned to growth in May, official figures show, after the two countries agreed a trade deal that softened the blow of President Donald Trump\u2019s tariff hikes.<\/p>\n

This followed a steep drop in April when exports declined by \u00a32 billion \u2013 the largest monthly decrease since records began in 1997.<\/p>\n

The value of goods shipped across the pond nonetheless remained relatively low in May, the ONS said.<\/p>\n

Karl Matchett11 July 2025 09:51<\/p>\n

<\/a>itcoin price all-time high: What\u2019s behind crypto\u2019s record-breaking rally \u2013 and how high could it go?<\/p>\n

The price of bitcoin<\/a> has hit a new all-time high, reaching above $118,000 (\u00a387,000) for the first time in its history.<\/p>\n

The latest rally comes despite global economic and geopolitical uncertainty, leading to speculation that investors are increasingly viewing the world\u2019s most valuable cryptocurrency<\/a> as a safe-haven asset like gold.<\/p>\n

So what caused this shift in attitude, and where will bitcoin\u2019s record-breaking rally go from here?<\/p>\n

Anthony Cuthbertson explains…<\/p>\n

Karl Matchett11 July 2025 09:25<\/p>\n

<\/a>Cash ISA changes could mean savers hit with bigger tax bills<\/p>\n

Talk of cash ISA allowance reductions has been met with fierce resistance, with Coventry Building Society now explaining why it could net the Treasury a significant amount – but cost people even more.<\/p>\n

Jeremy Cox, head of strategy at Coventry, said: \u201cSavers are facing a double hit. First, frozen tax thresholds are quietly dragging millions into higher tax brackets. Now, the potential cut to the cash ISA limit risks punishing those who simply do the right thing by putting money aside.<\/p>\n

\u201cFor many – especially the half a million people expected to move into higher-rate tax next year – the blow will be even harder. With their Personal Savings Allowance slashed in half, they\u2019ll either pay more tax on their savings or be pushed toward riskier investments they may not fully understand.<\/p>\n

\u201cInterest earned outside an ISA counts toward total income \u2014 meaning even modest savings can pull people into a higher tax band without them even realising.<\/p>\n

\u201cFor example, a basic-rate taxpayer earning \u00a350,000 who receives \u00a31,000 in interest from non-ISA savings would tip over into the higher-rate bracket. This shift halves their Personal Savings Allowance, meaning the remaining \u00a3500 of interest is taxed at 40%, costing them \u00a3200.<\/p>\n

\u201cThe Treasury may gain billions from these changes, but it\u2019s responsible savers who\u2019ll end up footing the bill through higher taxes on their hard-earned money.\u201d<\/p>\n

Karl Matchett11 July 2025 09:10<\/p>\n

<\/a>FTSE 100 flat, BP rises<\/p>\n

A slow start to the day for the FTSE 100, down 0.08 per cent.<\/p>\n

BP is the biggest riser so far, up 2.5 per cent, but there\u2019s a lot more red than green across those hundred companies on Friday.<\/p>\n

That said, it has generally been a strong week for the index of the biggest UK firms.<\/p>\n

Overnight, Asian stocks were mostly up except Japan\u2019s Nikkei 225, which took another hit.<\/p>\n

Karl Matchett11 July 2025 08:56<\/p>\n

<\/a>Barclays join mortgage wars with two new sub-4% offers<\/p>\n

With interest rates still projected to fall slightly across the rest of this year, the forward-looking mortgage market has seen lenders slash rates in a bid for custom.<\/p>\n

Well over 1.5m people are expected to renew mortgage deals across 2025, making it a key time for custom for the biggest banks and building societies.<\/p>\n

As of today, two more products have been cut by Barclays to sub-4 per cent interest rates, joining the likes of NatWest and HSBC in offering such low repayment terms.<\/p>\n

As David Stirling, director at Mint Mortgages & Protection, notes however – you do need a sizeable amount of cash in your pocket to benefit from the very best deals.<\/p>\n

\u201cThe mortgage market is heating up as many major lenders deliver back-to-back rate cuts, signalling fierce competition ahead as borrowing costs tumble,\u201d he said. \u201cMomentum is really gathering pace this week as Barclays, Leeds and TSB enter the fray and announce rate cuts, with many sub-4% deals now available – if you’ve got a chunky deposit.\u201d<\/p>\n

Karl Matchett11 July 2025 08:20<\/p>\n

<\/a>Bitcoin hits new record high after 6% surge<\/p>\n

Bitcoin has shot up again, with a six per cent rise putting it to a new all time high.<\/p>\n

That put it briefly above $118,000, though it has now fallen back slightly to $117,500, still well above the $107-109k band it travelled along at for some time.<\/p>\n

Our tech expert Anthony Cuthbertson notes that the new record puts bitcoin\u2019s market cap above $2.3 trillion, ranking it above tech giants like Alphabet and Meta. While still only a fraction of gold\u2019s estimated market cap of $22 trillion, it has now overtaken silver.<\/p>\n

Karl Matchett11 July 2025 08:10<\/p>\n

<\/a>Reeves admits ‘disappointing’ GDP figures<\/p>\n

On those economic figures, chancellor Rachel Reeves said:<\/p>\n

\u201cGetting more money in people\u2019s pockets is my number one mission. While today\u2019s figures are disappointing, I am determined to kickstart economic growth and deliver on that promise.<\/p>\n

\u201cThe choices we have made in our first year in government have seen us extend the \u00a33 bus fare cap, fund Free School Meals for over half a million more children, press ahead with plans to deliver free breakfast clubs for every child in the country and increase the National Minimum and National Living Wage, giving a pay rise to 3 million workers.<\/p>\n

\u201cThere\u2019s more to do, that\u2019s why in the Spending Review we boosted investment and jobs, through better city region transport and record funding for affordable homes, as well as backing major projects like Sizewell C.\u201d<\/p>\n

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