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The UK will take a calm approach to US trade tariffs, rather than "a knee-jerk reaction," Sir Keir Starmer has said. The prime minister suggested the UK would be affected by President Donald Trump's expected announcement today of sweeping taxes on goods imported to the US. The UK has so far failed to negotiate an exemption, but Sir Keir said talks on a deal that could eventually see them overturned were at an "advanced stage." He told his cabinet he was "keeping all options on the table" to respond to the tariffs, which economists warn could damage the UK economy and increase the cost of living. In a cabinet meeting yesterday, Chancellor Rachel Reeves said global tariffs would "have an impact on the UK as an open trading economy," but she insisted "securing a deal could mitigate some of those effects."

 

BBC News

Financial Times

The Daily Telegraph

The Times

City AM

The Financial Conduct Authority (FCA) has voiced its disquiet over a recent court ruling that could impose a £44bn compensation liability on car finance firms. The ruling mandates that lenders must fully disclose commission details to customers, a decision the FCA believes "goes too far." During the first day of a three-day hearing at the Supreme Court solicitors for Close Brothers – one of the banks seeking to overturn the ruling - said that the judgment would have "profound and adverse implications for the motor finance industry and customers." But Darren Smith, managing director of Courmacs Legal, stressed the need for consumer protection, saying: "People deserve their money back after being ripped off." The FCA warned that this ruling could have significant implications across various industries, potentially leading to unintended legal consequences.

 

The Daily Telegraph

City AM

Daily Mail

The Guardian

Prosecutors in Paris have called for German carmaker Volkswagen to face charges of aggravated fraud in France related to the Dieselgate emissions scandal. In 2015, Volkswagen admitted to selling 11m vehicles with devices designed to cheat emissions tests. Nearly a million French customers incurred costs for servicing and repairs after the scandal emerged. A 2021 expert report indicated that the company employed a "cost-benefit" strategy approved by management for the test-cheating software. Volkswagen contests the French allegations, saying that French consumers did not suffer harm warranting compensation, and that a previous German court case had already addressed these issues. "A double conviction on identical allegations is totally prohibited," the carmaker said. Paris prosecutors maintain that the French charges are "complementary" to the German case, focusing on consumer rights.

 

France 24

The Dutch branch of Friends of the Earth, known as Milieudefensie, has filed a lawsuit against ING Groep, claiming the bank has not adequately addressed its climate change responsibilities. The suit demands that ING halve its total emissions by 2030 compared to 2019 levels and cease financing new oil and gas projects. Arnaud Stuart Cohen, ING's head of business ethics, described the demands as “unrealistic and unreasonable,” and said that ING takes climate issues “very seriously.” The case follows a similar lawsuit against BNP Paribas in France, and highlights the increasing scrutiny of major banks regarding their environmental impact.

 

Luxembourg Times

Germany's financial regulator, BaFin, is urging insurers to enhance their scrutiny of private credit investments following significant losses linked to real estate loans. Julia Wiens, head of insurance supervision, said: “Especially where there's a big investment, we expect the board as a whole to look behind the curtain.” The call for increased oversight comes after the insolvency of major firms like Signa and Adler Group, which resulted in billions in losses. While the average exposure of German insurers to private credit is lower than their stock and bond holdings, some firms have over 30% of their investments in these riskier assets.

 

Insurance Journal

The UK's Competition and Markets Authority (CMA) and the European Union have announced that major car manufacturers, including BMW, Ford, and Volkswagen, will pay a total of £461m for colluding to restrict competition in vehicle recycling. The CMA found that these firms illegally agreed not to compete in advertising the recyclability of their cars and avoided paying third parties for recycling services.

 

Sky News

Metro Bank's ex-CEO claims the FCA was "too busy" to supervise the lender ahead of its £900m accounting error, while the BoE was fully aware of issues related to its risk-weighted assets.

 

Financial Times

Non-accountant directors will be on the hook for reporting failures under new regulations overseen by the Audit, Reporting and Governance Authority, sources say.

 

Financial News

Megan Greene, an interest rate setter at the Bank of England, has expressed concern over rising public expectations for future inflation. Recent surveys from the Bank of England and Citi/YouGov indicate that inflation expectations have increased in recent months. Greene said: "I do think inflation expectations do remain anchored, but I think it is a concern that they've been rising for the past six months." Greene also commented on the potential disinflationary effects of trade wars on the UK economy, stressing the uncertainty surrounding exchange rates.

 

Reuters

Eric Peterson, a Spotify software engineer, has launched a petition against Sweden's new law tightening citizenship requirements, which he believes will deter highly skilled foreign workers. The letter argues that extending the residency requirement from five to eight years will diminish Sweden's appeal to skilled workers and that retroactive application of the law could harm trust in Swedish institutions. Peterson hopes to highlight the economic implications of the proposed changes to influence the government's decision-making process. "I've been very surprised and pleased at the volume of signatures that we've received and the feeling behind it," Peterson told The Local. "We're at a little over 130 signatures right now, which is way more than I expected, because I'm not broadcasting this. This is just going through the whisper networks of immigrants in tech in Sweden."

 

The Local

France's minister for foreign trade, Laurent Saint-Martin, has said that his country will not compromise on its diversity, equity, and inclusion (DEI) initiatives despite reported demands from the US State Department for French companies to abandon such policies. Speaking on RTL Radio, Saint-Martin expressed his shock at the US interference, emphasising that the DEI initiatives align with French values and laws, including equality and anti-discrimination efforts. He said: “All of this is progress that corresponds first and foremost to our French values, we are proud of this and we don't want to compromise on it.” He did however stress the need to have a “positive agenda” and maintain a dialogue with the United States.

 

U.S. News

Larry Fink, the CEO of BlackRock, has expressed deep concerns regarding the current state of the global economy, saying that investor anxiety is at its highest in recent memory. In his annual letter to shareholders, he noted: "I hear it from nearly every client, nearly every leader - nearly every person - I talk to: they're more anxious about the economy than at any time in recent memory." Fink highlighted the negative impact of protectionism, which he says has returned with force under Donald Trump's administration. He observed that while globalisation has lifted 1bn people out of extreme poverty, it has also left many in wealthier nations struggling.

 

The Daily Telegraph

A dispute over control of Dutch lingerie retailer Hunkemöller is the latest example of so-called creditor-on-creditor violence in Europe. Redwood Capital's seizure of the business is being contested by its rivals.

 

Financial Times

Financial Times

Payment fraud in the UK has reached alarming levels, with losses estimated at £3bn annually, according to the report "Authorised Push Payment Fraud – Who Bears the Burden?" by the all-party parliamentary group on fair banking. This figure is significantly higher than previous banking industry estimates of £341m to £460m. The report highlights a concerning trend, noting that the average number of payments made to scammers per case has increased from 1.6 in 2020 to 1.8 last year, with "romance scams" seeing payments nearly double to 10.9. Martin Richardson, senior partner at Richardson Hartley Law, argues that public protection "can't just be left to the banks."

 

The Times