Financial Times

Germany has urged arms manufacturers to expedite defence production, strengthening Europe’s military capabilities in a broad plan to modernise equipment.

Brussels is proposing an annual levy on large firms to bolster the EU’s budget, prompting debate over potential costs and effects on corporate operations.

The UK and France have agreed to a reciprocal scheme to address pressures caused by arrivals across the Channel, with the PM emphasising strengthened cooperation and the potential to streamline processes on both sides.

AI chipmaker Nvidia is poised to surpass a $4 trillion valuation, propelled by surging demand in the US technology sector and robust investor enthusiasm around artificial intelligence.

The Office for Budget Responsibility warns that Britain’s mounting debt poses a daunting challenge to public finances, fuelling worries over economic resilience and tugging sterling lower while gilt yields climb amid calls to consider higher taxes.

Trump has announced a three-week reprieve on implementing reciprocal trade tariffs, deferring new levies until August and causing ongoing market apprehension, with Japan and South Korea among nations facing potential 25% rates.

China is redirecting shipments through south-east Asia to bypass higher duties in the US, prompting a surge in trade with the ASEAN bloc and renewed caution among global exporters.

Major investment firms seized the opportunity to buy up government bonds during a brief market dip sparked by speculation over the Chancellor’s position, while the Opposition leader reinforced backing for her to steady the political and economic landscape.

Gilts and the pound declined on renewed worries about fiscal oversight after a tense parliamentary exchange, with only lukewarm support from Starmer at PMQs and speculation over the chancellor’s future, while both camps deny any rift.

Starmer has scaled back proposed welfare changes to avoid a Commons defeat, diffusing a potential internal revolt whilst grappling with a multi-billion funding shortfall.