6:52 am, June 4, 2025
Thames Water rescue takeover collapses after private equity firm KKR drops out
Thames Water has been dealt a blow after US private equity giant KKR pulled out of plans for a rescue deal to inject much-needed cash into the troubled utility.
Britain’s biggest water supplier, which has 16 million customers, chose KKR at the end of March to be its preferred bidder under plans to invest around £4bn of new equity to help keep the financially stricken company afloat.
But Thames Water said KKR was now not ‘in a position to proceed’ and that its status as preferred bidder had lapsed. It raises the spectre of a temporary government nationalisation of Thames Water once more, should it fail to secure a rescue deal.
UK growth downgraded as global economy dragged by Trump trade wars
UK economic forecasts have been downgraded for the next two years as trade tensions linked to US President Donald Trump’s tariff plans hit the global economy, according to a new report.
The Organisation of Economic Cooperation and Development (OECD) has also cut its projections for global growth in 2025 and 2026.
In the UK, the economy is expected to grow by 1.3% this year, with the OECD cutting its previous forecast of 1.4%. It also reduced its prediction for 2026 from 1.2% in its March report to 1%, blaming the cuts to forecasts on ‘heightened trade tensions, tighter financial conditions, and elevated uncertainty’.
Fiat Tris is a three-wheeled electric pick-up
Fiat has revealed one of its smallest electric vehicles with the Tris three-wheeled pick-up truck.
It measures at just 3.17-metres in length, weighs 1,025kg and has a payload of up to 540kg. It is powered by a tiny 6.9kWh lithium battery pack and electric motor, which Fiat claims will last for 56 miles on a single charge. It produces a total of 12bhp top out at 28mph.
Fiat will be launching the Tris in South Africa and Middle Eastern markets this year, however the Italian firm is yet to reveal whether the pick-up will be coming to Europe or the UK.
The markets
London’s FTSE 100 posted modest gains on Tuesday as US markets rose after encouraging US jobs data, helping offset weak mining stocks and lower growth forecasts from the OECD.
The FTSE 100 index closed up 12.76 points, 0.2%, at 8,787.02. The FTSE 250 ended down 11.19 points, 0.1%, at 21,017.78, and the AIM All-Share closed up 5.38 points, 0.7%, at 753.51.
In European equities on Tuesday, the CAC 40 in Paris rose 0.3%, while the DAX 40 in Frankfurt firmed 0.7%.
Steel industry welcomes 25% tariffs but warns ‘uncertainty remains’
Industry has welcomed Donald Trump’s decision to keep tariffs at 25% on British steel and aluminium for now, but warned that ‘uncertainty remains’ over the final tax rate.
The US President has decided to ‘provide different treatment’ to the UK after a deal that was struck between Washington and London last month, as he doubled tariffs on imports from elsewhere to 50%.
Levies will remain at 25% for imports of steel from the UK into America, however Britain could still be subject to the higher 50% rate from July, or the quotas in the agreement could come into force, effectively eradicating the tax.
Reeves to announce £15bn for transport outside London ahead of spending review
Rachel Reeves is set to tear up Treasury rules as she announces billions of pounds of investment in public transport in the North and Midlands.
The £15.6bn package for mayoral authorities is expected to include funding to extend the metros in Tyne and Wear, Greater Manchester and the West Midlands, along with a renewed tram network in South Yorkshire and a new mass transit systems in West Yorkshire.
Announcing the investment in a speech in Manchester on Wednesday, the chancellor will argue that Britain ‘cannot rely on a handful of places forging ahead of the rest of the country’ and champion a ‘new economic model – driven by investment in all parts of the country’.
Tuesday on Car Dealer
Cox Automotive ‘cautiously optimistic’ about new car market with registrations set to rise
Cox Automotive forecasts over two million new car registrations in 2025, up 5.7% year-on-year. Growth is driven by fleet demand and Chinese brands like BYD. EV uptake grows, but concerns remain over sustainability, policy support, and missed ZEV mandate targets.
Podcast: AI phone calls can help dealers make bookings and generate leads – expert
AI Retain is revolutionising car dealership communications by using AI to handle customer calls for bookings, feedback, and sales leads. The tech can contact 600 customers an hour, freeing staff to focus on sales, while offering seamless integration and human support when needed.
Online auction house Collecting Cars reaches major milestone with 1,000th Ferrari sale
Collecting Cars has sold its 1,000th Ferrari, a bespoke FF once owned by John Elkann, for €200,000. Since 2018, the platform has generated over £129m in Ferrari sales, highlighting growing trust in online auctions for luxury vehicles worldwide.
Weather
Today will be breezy with variable cloud and scattered showers, particularly blustery in Scotland and more frequent in northern and western areas, reports BBC Weather. Temperatures will top 19 degrees.
Tonight, rain will spread across southern and central regions, while the north sees variable cloud, clear spells, and isolated showers.
