6:39 am, February 3, 2025
UK economic growth forecasts downgraded for 2025 – EY
Stagnant growth late last year means the UK economy will improve slower than previously predicted in 2025, according to new forecasts.
The EY Item Club economic forecaster has become the latest influential group to cut its predictions amid continued pressure on businesses, which face further tax and wage rises in April.
UK gross domestic product (GDP) is expected to grow by 1% in 2025, according to EY’s winter forecasts; it had previously predicted 1.5% growth for the year. The forecasts also pointed to 0.8% growth across the economy last year.
Threat of Trump trade war looms over Starmer’s meeting with EU leaders
Sir Keir Starmer’s meeting with EU chiefs threatens to be overshadowed by the threat of an international trade war as countries hit by Donald Trump’s tariffs vow retaliation.
The prime minister will urge Europe to bear down on Vladimir Putin’s Russia when he meets the heads of the 27 EU governments on Monday, as he continues efforts to reset Britain’s relationship with the trade bloc. But the gathering, meant to focus on defence co-operation, is likely to be preoccupied with news from across the Atlantic.
The US president has announced he will impose 25% trade taxes on goods coming from America’s nearest neighbours and largest trade partners – Canada and Mexico – as well as a 10% levy on Chinese goods.
Polestar celebrates Swedish motorsport heritage with Arctic Circle special editions
Polestar has created special ‘Arctic Circle’ versions of its latest electric vehicles.
Built to celebrate the brand’s Swedish motorsport heritage, the Polestar 3 and Polestar 4 Arctic Circle editions are one-off designs there to showcase the full potential of both electric vehicles.
Created at one of the firm’s Swedish research and design facilities, both cars benefit from the fitment of three-way adjustable Ohlins dampers, Pirelli studded tyres and OZ Racing wheels which should help these cars deliver maximum performance even in sub-zero conditions. The cars made their debut at the 2025 FAT Ice Race in Zell am See, Austria, on February 1.
The markets
The FTSE 100 marked another successive record close on Friday as it ended its strongest week for two years. It finished 27.08 points, or 0.31%, higher to end the day at 8,673.96.
The Cac 40 ended 0.11% higher for the day and the Dax index was down 0.07%.
The pound was up 0.2% at 1.244 US dollars and was also up 0.12% at 1.196 euros when London’s markets closed.
UK interest rate cut a ‘sure bet’ amid faltering economic growth, say experts
The cost of borrowing is expected to fall to its lowest point in more than 18 months this week.
Senior economists at the Bank of England will meet to decide whether to cut the UK’s base interest rate in the coming days, which currently sits at 4.75%.
Most experts predict they will announce a quarter point reduction to 4.5% at their announcement on Thursday February 6, continuing a series of cuts which started last summer.
Barclays says services are back to normal after technical issue ‘resolved’
Barclays has apologised to customers after technical problems caused disruption to services and payments over the weekend.
The bank said the issue had been resolved on Sunday morning and delayed payments processed.
Barclays had previously said affected customers could see an outdated balance with payments made or received not showing.
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Arnold Clark boss Eddie Hawthorne to step down after 27 years at helm
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JS Holmes scoops Global Award for Aftersales as Nissan recognises ‘best of the best’
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JLR raked in record revenue in Q3 but saw pre-tax profit slump by 18%
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Police appeal for information as they hunt Mitsubishi that was stolen from Land Rover dealership
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Ford loses Rugby match: Warwickshire car dealer to close as staff face ‘uncertain’ future
Ford is closing its Allen Ford Rugby dealership on January 31 as part of its retail restructuring, affecting staff and customers. The closure follows Ford’s plan to cut dealerships nearly in half, with its network now standing at just over 200.
Tesla reports profit slump as final quarter of 2024 fails to meet expectations
Tesla’s Q4 2024 profit fell 70% to $2.31bn (£1.86bn) despite a 2% revenue rise to $25.7bn (£20.68bn). Incentives boosted sales, but margins declined. Tesla plans cheaper models and fully autonomous driving. Musk remains optimistic, aiming to make Tesla the world’s most valuable company.
Weather
Today, northern areas will be cloudy with rain moving in from the west, while the south remains dry with some sunshine, reports BBC Weather. It will be breezy and milder; temperatures will top at 11 degrees.
Tonight, rain continues in the north and west, while the south and east stay dry with clear intervals and cloud.
