Business news live: House prices rose in July, FTSE 100 falls as tariffs announced

A highly anticipated Supreme Court judgment on Friday is set to bring clarity to the UK’s car finance commission saga, with millions of motorists potentially due compensation.

Its ramifications extend across the financial services sector, promising significant implications for consumers, lenders, and the wider car finance market.

Here’s what you need to know.

Latest manufacturing data suggests the UK “could [be seeing] the beginning of a modest recovery phase”, says one expert.

However, the usual factors of energy bills and global economics continue to weigh on real revival.

Mike Thornton, head of industrials at RSM UK, said: “The latest uptick in the manufacturing PMI marked the highest level since January 2025, showing further signs of improvement and suggesting that the sector is gaining momentum as supply chain tensions ease.

“This uplift in activity follows the launch of the Industrial Strategy, which outlines the government’s aim to double investment in advanced manufacturing to £39bn by 2035, which should help to drive sustained growth in output and support long-term resilience.

“But, despite growing industry optimism, there remains some caution in the market due to mounting cost pressures in terms of energy, raw materials and logistics, which continue to squeeze margins. Output is also limited by ongoing labour shortages, with CBI data showing that employment in the manufacturing sector fell for the third consecutive quarter.

“Additionally, there are some uncertainties surrounding the Industrial Strategy, with businesses needing clarity on how the £4.3bn advanced manufacturing funding will be allocated by subsector, as well as the eligibility criteria for the British Industrial Competitiveness Scheme.”

London’s blue chip share index has slumped lower amid a global stock market backlash after US President Donald Trump unleashed the latest sweeping trade tariffs.

The FTSE 100 Index fell 0.6% – down 50.2 points to 9082.7 – in mid-morning trade on Friday, while European markets suffered steeper falls as the Cac 40 in France dropped 1.8% and Germany’s Dax was off 1.7%.

It follows big drops on Asian indices overnight after the Hang Seng in China fell 1.1% and Japan’s Nikkei 225 was 0.7% down.

Mr Trump has signed an executive order setting new tariffs on a raft of US trading partners, which will take effect on August 7.

Big exporters to the US, such as Taiwan, will be hit with steep new levies.

Futures markets are showing US stocks ready to tumble this afternoon when trading begins.

The S&P 500 is down 0.96 per cent, with the Nasdaq even lower at -1.07 per cent.

Smaller firms are hit harder, the Russell 2000 down 1.4 per cent, while the Dow Jones is set to open 0.9 per cent lower.

Among the biggest firms, last night’s earnings report means Amazon is set to open 7.5 per cent lower due to disappointing profit margins on its AWS cloud service.

Apple also reported last night and is set to open 2 per cent higher thanks to improved iPhone sales.

The Current Account Switch Service has confirmed that June was the busiest month of 2025 to date for customers changing banks, seeing over 88,000 switches completed.

In total more than 216,000 switches were completed by the service during the three months from April to June.

Meanwhile the banks and building societies netting the largest net gains between January and March 2025 were:

1. Nationwide +55,500
2. Monzo +8,800
3. HSBC +5,600

The largest net losers were:

1. Barclays -22,300
2. Halifax -15,700
3. Natwest -13,000

Pensions have a big branding problem, which is putting off more Millennials and Gen Z from investing in their retirements.

It is easier said than done, but a good start would be to challenge the negative stereotypes that put many younger people off saving for retirement in the first place.

James Hetherington explores the idea of rebranding retirement:

One lucky Scot has won £100,000 in the Premium Bonds draw, say NS&I – despite holding only £750 in their account.

The two £1m winners came from Bedfordshire (holding £7k) and overseas (holding the max £50k).

NS&I say “more than six million prizes will be paid out, worth over £396 million” in total for the August draw.

The effective prize rate for Premium Bonds is 3.6 per cent, with the odds of any individual £1 bond winning any prize being 22,000 to one.

While the big prizes get headlines, most PB holders do not win enough to beat a standard savings account interest rate return on their money.

Another look at the UK house prices now – that 2.4 per cent rise isn’t across the board, it’s an average remember.

As such, there are plenty of areas which are falling at present.

“With the supply of homes for sale at its highest level in a decade, property prices are levelling off or even falling in some areas, despite the slight increase in the national average,” said Peter Stimson of MPowered Mortgaages.

“All this is creating a buyer’s market and nudging would-be buyers who are fed up with rising rents to get off the fence.

“With new affordability rules making it easier for people to get their first mortgage, and allowing lenders greater flexibility in the amount they lend, the mortgage market is playing an essential role in keeping the property market moving.

“With the Bank of England widely expected to reduce its base rate again next week, stress rates – the rate at which borrowers’ affordability is calculated at – could go down even further, allowing even more borrowers into the market.”

The government have confirmed British steelmakers will regain access to the EU from today, 1 August, under a zero-tariff arrangement.

A deal signed in May by the prime minister comes into effect as of now, enabling firms to “export more steel used for large building projects – like support beams – to the EU tariff-free”.

Secretary of State for Business and Trade, Jonathan Reynolds said:

“This is yet another positive step forward for the UK steel sector and a clear example of our Plan for Change in action — removing barriers, supporting jobs, and backing British industry.

“Restoring our steel quota helps give producers the certainty they need to compete, grow, and maintain vital export relationships.

“This builds on the significant support that this pro-steel Government has already delivered — from our £500 million investment in Tata’s green steel transition, to action to safeguard jobs at British Steel in Scunthorpe, and our deal with the US to reduce tariffs on UK steel.”