Category Archives: Economics

Lindsey oil refinery owner Prax falls into administration as ministers urged to intervene

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Fears over fuel supplies and jobs as Lincolnshire facility handles nearly a tenth of total UK capacity

One of the UK’s largest oil refineries – and the only big one owned by a British company – has collapsed into administration, prompting calls for the government to intervene urgently to protect fuel supplies and jobs.

State Oil, which owns the Prax Lindsey refinery in north Lincolnshire, called in administrators on Monday, Sky News reported first, prompting concern from the trade union Unite.

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Rising poverty in conflict zones ‘causes a billion people to go hungry’

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In first assessment since pandemic in 2020, World Bank urges other countries to step up support

Extreme poverty is accelerating in 39 countries affected by war and conflict, leaving more than a billion people to go hungry, according to the World Bank.

Civil wars and confrontations between nations, mostly in Africa, have set back economic growth and reduced the incomes of more than a billion people, “driving up extreme poverty faster than anywhere else”, the Washington-based body said.

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People dying early of cancer costs UK economy £10.3bn a year, study finds

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Cancer Research UK says this is more than any other health condition and 350,000 years of productivity are lost

People dying early of cancer costs the UK economy £10.3bn a year, more than any other health condition, a study has revealed.

That is the total cost of the 350,000 years of lost productivity recorded across Britain every year because adults have died prematurely of the disease, according to Cancer Research UK (CRUK).

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Iran-Israel ceasefire boosts markets risk appetite; UK inflation may ‘plateau’, warns Bank of England’s Greene – business live

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Oil has fallen to its lowest level since June’s conflict began, while stock markets have jumped across Asia and Europe

Travel and leisure stocks across Europe are rallying too.

This has pushed up the STOXX Europe travel and leisure index by 4.1% in early trading, which Reuters reports it the biggest one-day jump since 10 April.

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Goldman Sachs warns Brent crude could rise over $100 per barrel if Strait of Hormuz is disrupted – business live

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Rolling coverage of the latest economic and financial news

The eurozone economy has continued to flirt with stagnation this month, with little growth in its key sectors.

The latest survey of purchasing managers across the euro area, just released by S&P Global, shows that the eurozone services sector is stalling this month, while factory growth slowed.

“The eurozone economy is struggling to gain momentum. For six months now, growth has been minimal, with activity in the service sector stagnating and manufacturing output rising only moderately.

In Germany, there are signs of a cautious improvement in the situation, but France continues to drag its feet. The momentum evident in the official growth figure of 0.6 percent for the first quarter is unlikely to have carried over into the second quarter, especially since special factors such as Ireland’s unusual jump in growth inflated this figure.

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UK borrowing rises to £17.7bn, adding to pressure on Rachel Reeves

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May figure second highest for month on record amid fears chancellor is struggling to keep within spending rules

Higher tax receipts were unable to prevent a rise in public sector borrowing in May to £17.7bn, up from £17bn a year earlier and the second highest for the month on record.

A poll of City economists had forecast public sector net borrowing – the difference between public spending and income – would be £17.1bn.

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UK inflation eases slightly to 3.4% as food price rises offset transport cost falls

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Annual rate slows in May from 3.5% in April despite record increase in chocolate prices

Inflation in the UK eased slightly to 3.4% last month as a steep fall in air fares and petrol prices was offset by a jump in the cost of food.

May’s decline in the consumer prices index (CPI), down from the official figure of 3.5% for April, complicates the Bank of England’s interest rates decision on Thursday, although policymakers are still almost certain to hold interest rates at 4.25%.

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Markets stabilise as investors fear ‘adverse shock’ from higher oil prices – business live

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Rolling coverage of the latest economic and financial news

Over at the Paris Air Show, a row has broken out after four Israeli company stands at the trade fair were shut down.

According to Reuters, French authorities ordered that the four stands should be closed for “displaying offensive weapons”, after not complying with an order from a French security agency to remove offensive or kinetic weapons from the stands.

“This outrageous and unprecedented decision reeks of policy-driven and commercial considerations.

“The French are hiding behind supposedly political considerations to exclude Israeli offensive weapons from an international exhibition - weapons that compete with French industries.”

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Trump’s ‘revenge tax’ could threaten foreign investment into US, analysts say

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Concerns raised that section 899 could backfire and also undermine dollar’s safe haven status

Foreign investment into the US could be threatened by Donald Trump’s new “revenge” taxes, analysts have warned.

A provision within the president’s One Big Beautiful Bill Act will allow the US to apply higher taxes on foreign individuals, businesses and investors connected to jurisdictions that impose “unfair foreign taxes” on US individuals and companies.

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Daylight saving shapes how we spend, socialise and travel, NSW data reveals

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Exclusive: As the shortest day of the year draws near, government study shows how earlier sunsets curb economic activity and public transport trips

Daylight saving and its delayed sunsets encourages people to stay out later and spend more money, New South Wales government data shows. The data also found more evening light attracts people to public transport and out of their cars.

Conversely, that uptick in mobility almost entirely vanishes in the days after clocks are wound back an hour, as earlier sunsets cut post-work social and economic activity, the data showed.

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Government sells final shares in NatWest 17 years after £45bn bailout

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Sale ends state ownership of the banking group, then known as Royal Bank of Scotland, after 2008 rescue

The UK has sold its final shares in NatWest Group, ending 17 years of state ownership since the £45bn taxpayer bailout that saved the bank from collapse at the height of the 2008 financial crisis.

The full privatisation of NatWest is a symbolic moment for the banking group – formerly known as Royal Bank of Scotland (RBS) – and draws a line under the most tumultuous chapter in its near 300-year history.

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Sidi Ould Tah named African Development Bank president

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Mauritanian economist who led Arab Bank for Economic Development in Africa will succeed Akinwunmi Adesina

The African Development Bank has chosen the Mauritanian economist Sidi Ould Tah as its president-elect after three rounds of voting on Thursday afternoon.

The election took place in Abidjan, Ivory Coast, at the end of the annual meeting of the continent’s biggest multilateral lender.

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Trump indicates ‘positive’ progress in US-EU trade talks

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Wall Street up in early trading after US president commends bloc for calling to ‘quickly establish meeting dates’

Donald Trump has indicated there has been progress in US trade talks with the EU, helping send share prices rising on Wall Street, after he commended the bloc for calling to “quickly establish meeting dates”.

“I have just been informed that the EU has called to quickly establish meeting dates. This is a positive event, and I hope that they will,” Trump wrote on his Truth Social platform on Tuesday, saying the EU would be “very happy and successful” if it agreed a deal.

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Poorest 750 nations face ‘tidal wave’ of debt repayments to China in 2025, study warns

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Vulnerable countries to pay record $22bn this year, mostly relating to loans issued under Xi Jinping’s belt and road initiative

The most vulnerable nations on Earth are facing a “tidal wave” of debt repayments as a Chinese lending boom starts to be called in, a new report has warned.

The analysis, published on Tuesday by Australian foreign policy thinktank the Lowy Institute, said that in 2025 the poorest 75 countries were on the hook for record high debt repayments US$22bn to China. The 75 nations’ debt formed the bulk of the total $35bn calculated by Lowy for 2025.

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EU hopes for quick deal to resolve US trade war after Trump delays 50% tariffs

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European leaders call for ‘lowest possible’ border taxes after levies postponed from 1 June to 9 July

EU leaders have expressed hopes for a quick deal to resolve the trade war with the US after Donald Trump announced he was delaying his threatened 50% tariffs for the bloc until 9 July.

The US president said on Sunday he would pause the border tax due to be imposed on 1 June, which he had announced two days earlier, after what he called a “very nice call” with Ursula von der Leyen.

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EU president secures tariffs delay after talk with Trump

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Enactment of 50% tariffs postponed until July so both sides can ‘reach a good deal’ after pressure from European leaders

Donald Trump has announced that he will pause his threatened 50% tariffs on the European Union until 9 July, after a “very nice call” with EU chief Ursula von der Leyen.

The European Commission president announced in a social media post that she had spoken with Trump and secured the delay to give the two sides more time to negotiate.

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World’s seven wealthiest countries agree to counter China’s trade practices

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G7 finance ministers and central bank governors pledge to address ‘economic imbalances’, without naming China

Top finance officials from the world’s seven wealthiest democracies have set aside stark differences on US tariffs and agreed to counter global “economic imbalances”, a swipe at China’s trade practices.

Ahead of the meeting of G7 finance ministers and central bank governors there had been doubt about whether there would be a final communique, given divisions over US tariffs and Washington’s reluctance to refer to Russia’s war on Ukraine as illegal.

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Reeves eyes Gulf trade pact as ‘next deal,’ Bank of England’s Pill says pace of interest rate cuts ‘too rapid’ – as it happened

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China and Australia cut interest rates; Shell faces protests calling for clean-up in Niger Delta

Here’s our full story on Greggs.

Sales at Greggs have picked up after the UK’s biggest bakery chain branched out into iced drinks, pizza boxes and a macaroni cheese that has gone viral on social media.

These are important issues and we respect the right of people to express their view. But for many years the vast majority of spills in the Niger Delta have been caused by third parties acting unlawfully, such as oil thieves who drill holes in pipelines, or saboteurs.

These challenges are managed by a joint venture which Shell’s former Nigerian subsidiary, SPDC, operated, cleaning up every spill from the joint venture’s facilities.

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Reeves hopes hat-trick of deals shows Britain is open for business

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Impact of agreements on food, energy and defence may not be huge but chancellor believes it will draw investors to UK

Rachel Reeves joked to journalists after Monday’s EU-UK reset that trade deals were coming along “like buses”, given the agreements with India and the US that had also been sealed in the past fortnight alone.

The chancellor described the EU deal as the best that had been secured by any non-member country, but she was also keen to talk about the three successful negotiations as a package.

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Cooking the books? Fears Trump could target statisticians if data disappoints

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Proposed rule change could pave way for president to fire economists whose figures prove politically inconvenient

Summarizing his befuddlement with numbers, Mark Twain observed that there were “lies, damned lies and statistics”.

The acerbic phrase later become so deeply embedded in popular consciousness that it once formed the title to an episode of The West Wing, NBC’s portrayal of a fictitious US president played by Martin Sheen.

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