JLR Cuts Jobs, Barclays Slashes Rates

Here’s a roundup of the week’s key business and financial headlines:

Retail Sector News

• Marks & Spencer Sparks Loyalty Card Reinstated: Following a cyber attack earlier in the year, Marks & Spencer have announced the full reinstatement of their Sparks loyalty card programme. As a gesture of appreciation, M&S is offering its staff an increased discount of 30 per cent for a limited four-day period, up from the usual 20 per cent, to acknowledge their efforts in managing the aftermath of the hack. Customers with May and June birthdays who missed out on their loyalty card gifts due to the disruption will receive them this month, along with July birthday cardholders.
• Cyber Attacks Impact Retailers: Several retail chains, including Adidas, Harrods, and Co-op, have been targeted by cyber attacks. Co-op confirmed that customer details of approximately 6.5 million individuals were compromised in the data breach.

Stock Market Performance

• FTSE 100 Nears 9,000 Points: The FTSE 100 index experienced gains, hovering just below the 9,000-point mark at the end of the week.
• US Stock Market Trends: US stock markets saw gains on Thursday, with Microsoft approaching a $4 trillion market capitalisation, following Nvidia reaching this milestone earlier in the month. However, trading was flat after the opening bell on Friday.
• Bitcoin Volatility: Bitcoin’s value dipped, falling below $120,000.

Government and Economic Policy

• Rachel Reeves’ Growth Plans: Reactions continue to emerge regarding Shadow Chancellor Rachel Reeves’ latest proposals to stimulate economic growth, which include encouraging greater investment and reducing regulatory burdens for businesses.

Company News

• Jaguar Land Rover Job Cuts: Automotive manufacturer Jaguar Land Rover (JLR) has announced plans to cut 500 management-level positions. The decision follows a decline in sales, partly attributed to a temporary suspension of shipments to the US due to tariffs. Additionally, JLR has delayed the launch of its new electric vehicle models to allow for more extensive testing and to build up sufficient demand.
• Nissan Factory Closure: Nissan is set to close a major manufacturing plant as part of a cost-cutting strategy, shifting all production to another facility. Vehicle production at the Oppama plant will cease at the end of the 2027 fiscal year (March 2028).
• GSK Share Price Decline: Pharmaceutical firm GSK experienced a significant drop in share price after a US Food and Drug Administration (FDA) panel raised concerns about the approval of a new drug. The FDA voted against the proposed dosage from a benefit/risk perspective, making the likelihood of approval extremely slim.
• BP Strategic Refocus: Oil giant BP is continuing its strategic refocus with an agreement to dispose of its US onshore wind business, BP Wind, in which the group has claims to 1.3GW of generating capacity.
• Reckitt Divestiture: Health and hygiene company Reckitt, known for brands like Dettol, Durex, and Nurofen, is divesting its Essential Home division in a deal worth up to $4.8 billion.
• Burberry Retail Revenue Decline: Luxury brand Burberry reported a 2% decline in first-quarter retail revenue to £433 million year-on-year, adjusted for exchange rates. However, comparable store sales improved in all regions compared to the previous quarter, and Burberry remains on track to deliver £80 million in cost savings by the end of the financial year.

Mortgage and Housing Market

• Barclays Mortgage Rate Cuts: Barclays has reduced interest rates across 32 mortgage products. The bank claims to offer “market-leading” rates on two-year fixed mortgages, with the lowest rate now at 3.75 per cent for a two-year fixed mortgage at 60 per cent loan-to-value (LTV), including a product fee of £899.
• Lloyds Boost for First-Time Buyers: Lloyds Banking Group is making an additional £4 billion in lending available to first-time buyers. This follows changes in mortgage lending rules that allow for deals exceeding 4.5 times income for some borrowers.
• Sea View Property Premium: Analysis of the UK property market shows that homes with a sea view command an average price premium of £88,000.

Banking and Finance

• Barclays Hybrid Working Policy: Barclays has instructed staff to increase their office attendance by one day per week, making it the latest company to tighten its hybrid working policy.
• Self-Assessment Deadline Approaching: The deadline for the second payment on account for self-assessment is approaching. Taxpayers who make “payments on account” – advance payments towards their self-assessment tax bill – need to ensure payment is made on time to avoid penalties.
• Lifetime ISA vs. Personal Pension: A comparison of Lifetime ISAs and personal pensions highlights the pros and cons of each as retirement planning tools. Both offer tax-efficient savings and benefit from a 25 per cent top-up on contributions, but they deliver different income outcomes in retirement.

Economic Outlook

• Goldman Sachs Interest Rate Prediction: Goldman Sachs analysts predict that the Bank of England is likely to implement further interest rate cuts, not only in August but also in November and December.
• Bank of America Interest Rate Prediction: Bank of America is taking a more cautious approach, forecasting just two interest rate cuts this year and one more early next year, resulting in a base rate of 3.5 per cent by February 2026.
• Unemployment Figures: Unemployment has risen to a four-year high of 4.7 per cent, while vacancies have decreased for three consecutive months.

Other News

• Unpaid Internships: The government is considering banning “exploitative” unpaid internships, launching a call for evidence as part of its plans to upgrade workers’ rights.
• Water Regulator Abolition: There are reports that Ofwat, the national water regulator, may be abolished following a government review. A new regulator could be created to address issues such as sewage spills, water leaks, and rising costs to consumers.
• DWP Debt Collection Practices: A charity founded by Martin Lewis has criticised the Department for Work and Pensions (DWP) for employing “aggressive and rapid” debt collection practices that are harsher than those of most banks.
• Crude Oil Price Increase: The price of Brent Crude Oil has risen above $70 per barrel following a rise of over 1.2 per cent.
• Retail Decline in Scotland: Retail growth in Scotland slowed in June, experiencing a decrease of 0.4%.