Tesla sales halve in Europe; markets welcome US delay to EU 50% tariffs ? business live
49s ago 09.26 CEST Bond prices rally, pulling down yields European bond prices are rising this morning, pulling down government borrowing costs. The yield, or interest rate, on German 10-year bonds has dropped by four basis points (0.04 percentage points) to 2.519%. UK 10-year gilts are down almost 8 basis points, at 4.6%, while shorter-dated two-year gilt yields are down four basis points at 3.96%, the lowest in over two weeks. This follows a recovery in US Treasury prices this morning. Over the last couple of weeks, bond yields had been rising as prices fell amid a global debt sell-off. The Financial Times is reporting this morning that the UK government is shifting to shorter-term borrowing to lower its interest bill, and to lift some of the pressure on its tax and spending plans. Jessica Pulay, head of the UK?s Debt Management Office, told the FT that the DMO is softening Britain?s reliance on long-term borrowing. Short-term borrowing is typically cheaper than issuing longer-term debt, but it also means a country has to return to the markets more often. UK turns to shorter-term borrowing as fiscal pressure mounts https://t.co/so2v4GbZ9m ? Financial Times (@FT) May 27, 2025 Share
20m ago 09.06 CEST FTSE 100 jumps at start of trading Stocks have jumped in London as trading resumes after the Bank Holiday weekend. City investors are relieved that Donald Trump has delayed his threatened hike on EU tariffs to 50% until July, cooling trade war fears. The FTSE 100 index of blue-chip shares is up 75 points, or 0.85%, to 8792 points, close to a two-month high. Engineering group Melrose (+3.8%) are the top FTSE 100 riser, followed by technology firm DCC (+2.4%) and Rolls-Royce (+2%). Share
34m ago 08.52 CEST UK food inflation rises for fourth month in a row Mark Sweney Food inflation in the UK has risen for the fourth month in a row, figures show, driven by increases in the cost of fresh produce, including steak. The annual rate of food price rises hit 2.8% this month, after a 2.6% rise in April, according to the latest shop price data from the British Retail Consortium (BRC). However, prices overall remained in deflation ? 0.1% cheaper than a year ago and unchanged from last month ? with the cost of non-food goods falling, particularly for electricals as retailers cut prices to drum up business before a potential hit from Donald Trump?s tariffs. UK food inflation rises for fourth month in a row as steaks beef up prices Read more Share
1h ago 08.30 CEST Reuters: Toyota to move some GR Corolla production to Britain More car news: Japanese manufacturer Toyota is moving some production of its GR Corolla sports car to Britain. According to Reuters, Toyota will spend around $56m on a dedicated production line at its Burnaston plant in Derbyshire, to produce 10,000 cars annually for export to North America from the middle of 2026. Reuters reports: By shifting some production from Japan, Toyota aims to use excess capacity in Britain to help it cut delivery wait times for the car, said the people, who spoke on condition of anonymity. The move was not in reaction to U.S. President Donald Trump?s tariffs on automobile imports, they said. Reuters adds that the Burnaston site has suffered a decline in production since Brexit. Exclusive: Toyota plans to move some production of its GR Corolla sports car to Britain and will spend around $56 million on a dedicated line there to build exports for North America https://t.co/LdxUgB7fjo ? Reuters (@Reuters) May 27, 2025 The news should cheer the UK government, as it Share
1h ago 08.22 CEST Markets welcome US delay to EU tariffs There?s a sense of relief in the financial markets after Donald Trump delayed his threatened 50% tariffs on all European Union imports into the US. Trump had shocked investors last Friday when he announced he planned a 50% tariff on EU imports from the start of June. But following a call with European Commission president Ursula von der Leyen, that hike in levies has been delayed until 9 July, to give both sides more time to negotiate. Trump news at a glance: president delays 50% tariffs after ?very nice call? with EU chief Read more Stocks are set to rally in London today, with Wall Street also set to rise, as trading resumes after the bank holiday break Yesterday, France?s CAC index rose by 1.2% while Germany?s DAX gained 1.7%, and the euro hit a one-month high against the US dollar. Tony Sycamore, market analyst at IG, reports that ?risk sentiment improved? after Trump announced the delay to his 50% tariffs on the EU. Ipek Ozkardeskaya, senior analyst at Swissquote Bank, cautions that market rallies are on ?thin ice?. She explains: European markets are flirting with ATH [all time high] levels, US futures were also up yesterday ? but the reality is that with every piece of incoming information, the collective welfare deteriorates. Today, we are in a worse position than we were a month ago. And a month ago, we were in a worse position than we were three months ago. The global trade negotiation period was supposed to last 90 days?and now, it ends all of a sudden. The tariffs won?t be brought below the 10% ?universal? level and market rallies are triggered not by good news, but by the least bad of the options ? once Trump or his administration softens a previously crazy stance. Share
