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In his first remarks to parliament on last week’s Iberian power cut, Spain’s Prime Minister Pedro Sánchez has said he will not deviate “a single millimetre” from his commitment to renewable energy, in a response to critics who blamed the blackout on the country’s dependence on wind and solar power. “There is not empirical evidence telling us that the incident was caused by an excess of renewable energy sources or from a lack of nuclear power,” he said to parliament on Wednesday. Responding to calls for his administration to reverse course on scrapping nuclear power stations, Sánchez said advocates of nuclear power were using the blackout as an excuse for a “gigantic manipulation exercise.” He said: “Not a single serious study says nuclear power is essential for Spain . . . In Spain, the future of energy lies in other sources such as hydroelectric, solar, wind and green hydrogen. Renewables are not only the future; they are our only choice.”

 

Financial Times

The Daily Telegraph

UK Prime Minister Sir Keir Starmer and US President Donald Trump have hailed an "historic" trade deal between the UK and the US, which eases some, but not all, of the tariffs imposed by the US last month. The deal will see tariffs on British car exports to the US fall from 27.5% to 10% for the first 100,000 vehicles per year, the 25% tariffs on steel and aluminium will be removed, and the UK’s pharmaceutical industry has been promised "preferential treatment". British beef farmers will be allowed access to the US market and vice versa, with no reduction in food standards in the UK. More details are being worked out and a separate deal on technology is expected to be agreed at a later date. The Telegraph points out that the deal will give the US the ability to object to Chinese investment in the UK – a clause the Conservatives said amounted to a "veto" over foreign investment. Unions welcomed the news, but John Denton, Secretary General of the International Chamber of Commerce, said: "The reality is that US tariffs on UK exports remain significantly higher than they were at the start of the year."

 

Financial Times

The Daily Telegraph

The Times

The Guardian

Finland, Sweden, Norway, Denmark and Estonia are planning to launch offline card payment systems to provide back-up if internet connections are cut, including due to sabotage. Bank of Finland board member Tuomas Valimaki said the planned roll out comes after the Baltic Sea region has experienced several instances of unexplained damage to critical undersea infrastructure in recent years. Russia has been accused by Western intelligence services of committing various acts of sabotage. "Since card payments require functioning international data links, Finland must be prepared for interruptions. Many other countries are of course in the same situation," Valimaki said, adding Norway, Sweden, Denmark and Estonia were also planning to introduce offline card payments.

 

Reuters

The UK's Financial Reporting Council (FRC) has imposed a five-year ban on Sean Robert Clark, the former chief financial officer of Thurrock Council, marking a historic first for local authority finance chiefs. The council went bankrupt in 2022 after accruing £1.5bn in debt due to failed commercial investments. The FRC condemned Clark's actions, saying its reprimand was the most severe possible. "The role of a local authority chief financial officer is integral in ensuring prudent management of public funds," Claudia Mortimore, the FRC’s deputy executive counsel, said. "Mr Clark held a fiduciary responsibility towards local taxpayers and it was incumbent on him to make sure that the risks arising from Thurrock council’s financial strategy were identified, managed and reported to the council’s leadership and members. He fell significantly short of the required standards in a number of respects." 

 

Bloomberg Law

Financial Times

Local Government Chronicle

The Times

The European Central Bank (ECB) has endorsed a controversial proposal allowing banks to choose between implementing new trading capital rules next year or delaying until 2027. The ECB's stance comes as the UK postpones measures and the US fails to advance proposals. The ECB said that a twin track approach “could help keep the momentum” on the Fundamental Review of the Trading Book (FRTB), part of the post-crisis global reforms established in Basel in 2017. The proposal has divided opinion among banks, with smaller institutions favouring a standardised model for cost savings, while larger banks face increased capital charges. The ECB's comments indicate a shift towards simplifying banking rules to prevent European lenders from falling behind in a global deregulation trend. The ECB also noted that any proposed flexibilities would require “appropriate supervisory safeguards” to ensure effective implementation.

 

Luxembourg Times

The Bank of England is scrapping rules restricting risk-taking at building societies that it imposed after the collapse of former mutually-owned lenders Northern Rock and Bradford & Bingley in the financial crisis.

 

Financial Times

FRP Advisory has reported delays in corporate decision-making due to President Trump's tariff threats on US imports. The restructuring firm noted that "the final quarter of the financial year saw a marked increase in macroeconomic volatility" which has affected business confidence. The number of public companies issuing profit warnings rose by 24% in April, with half attributing their difficulties to tariff threats and US economic disruption. Geoff Rowley, chief executive of FRP, said that the firm is well-positioned to serve clients amid ongoing uncertainty, with a positive medium-term outlook for its markets.

 

The Times

Danish jewellery manufacturer and retailer Pandora has ruled out moving production to the US, chief executive Alexander Lacik said Wednesday, and will instead use price increases to mitigate the impact from potential tariffs. Pandora currently makes 95% of its jewellery in Thailand, which US President Donald Trump has threatened to hit with 36% import tariffs. Pandora also next year plans to open a plant in Vietnam, a country the US has threatened with levies of 46%. “There is not enough efficiency that I could generate in our production or value chain to cover tariffs of, let’s say, 40%," Lacik said. “It will be passed on to consumers in one way, shape or form." His comments came after the firm reported first-quarter revenues of DKr7.347bn ($1.12bn), slightly above analysts' median forecast of DKr7.310bn.

 

Bloomberg

Financial Times

Reuters

Reuters

Stellantis is to cut up to 500 jobs through voluntary exits at its Melfi assembly plant in southern Italy, the Fiom-Cgil union has said. The announcement follows news of a similar voluntary redundancy plan for a total of 350 jobs at two other local facilities, in Pomigliano and Pratola Serra. "It seems that a real plan to divest from Italy is taking shape. For these reasons, Fiom-Cgil has not signed the layoffs," said Samuele Lodi of Fiom-Cgil. The Melfi plant employs around 5,000 people.

 

Reuters

The volume of private equity and venture capital investment flowing into UK businesses was up 44% in 2024, according to analysis by the British Private Equity and Venture Capital Association (BVCA). Private capital firms invested £29.4bn into UK businesses last year, compared to £20.4bn in 2023. The data shows that more than nine in ten of the businesses which received private capital investment in 2024 were SMEs. The report also shows that 2.5m jobs are supported by private capital, up from 2.2m in 2023. BVCA chief executive Michael Moore said it is "important that the government ensures that the UK remains an internationally attractive destination for private capital investment at a time of increasing geopolitical uncertainty."

 

City AM

Moody's has raised concerns about the increasing risk posed by retail investors entering the private credit market, which has grown significantly since the pandemic, now managing over $2trn in assets. The ratings agency warns that the rise of open-ended funds and exchange-traded funds (ETFs) in this space could lead to liquidity issues and a potential loss of trust in fund sponsors if investor expectations are misaligned with liquidity terms.

 

Reuters

Thyssenkrupp Steel says it has reached an agreement in principle with the IG Metall union around a planned restructuring in a bid to avoid forced layoffs. Germany's largest steel maker said the agreement, which follows an announcement by the company that up to 11,000 jobs had to be cut or outsourced, paves the way for deeper talks with the union that are expected to result in a new collective wage agreement by the summer.

 

Reuters

The LockBit ransomware group has suffered a significant setback after a vigilante hacker exposed its secrets. The hacker published a database containing 75 user credentials, internal communications, and cryptocurrency wallets, which has been described as a "goldmine" for law enforcement. LockBit, which has been linked to numerous global attacks, including one on the Royal Mail in 2023, has seen its operations disrupted previously but has re-emerged.

 

The Times

Cheshire East Council is facing "significant concerns" regarding its financial stability. The UK government has issued a best value notice to highlight the need for improvement. Local government minister Jim McMahon said there is no evidence of a "current best value failure" but "significant issues need addressing at pace to avoid future failure." Separately, ministers will send in a team of experts to Warrington council after a report found the local authority had been making “high risk” investments and was at risk of being unable to pay down its debt on an ongoing basis.

 

BBC News

Financial Times