Trade, City of London, sterling and EU markets
The Office for National Statistics has confirmed the UK economy grew by 0.3% in the first quarter of 2026, marking a modest but steady expansion driven primarily by the services sector, though manufacturing weakness continues to pose challenges for the broader recovery. The second estimate, released on 23 May, left the initial growth figure unchanged…
The European Union has finalised a comprehensive overhaul of its steel safeguard measures, establishing annual tariff-free import quotas of 18.3 million tonnes and imposing a 50 per cent duty on volumes exceeding that threshold. The provisional agreement between Parliament and Council, formally endorsed on 23 May, will take effect on 1 July 2026, replacing temporary…
Industrial production across the European Union fell by 0.8 per cent in March compared to the previous month, according to figures released by Eurostat on 22 May, marking the latest evidence of a manufacturing slowdown that has gripped the bloc’s economy. The year-on-year contraction of 1.4 per cent underscores mounting challenges facing EU industry as…
UK consumer prices rose 2.8% in the year to April 2026, down sharply from 3.3% in March and well below market expectations of 3.0%. The moderation, driven by the new energy price cap and softer housing services costs, gives the Labour government a rare positive statistical headline.
The International Monetary Fund has advised the Bank of England not to raise interest rates this year, despite the inflationary pressures from the Iran conflict. Holding the Bank Rate at 3.75% should be sufficient to bring inflation back to target by end-2027, the Fund concluded in its latest UK Article IV consultation.
European Parliament has moved this week to tighten the EU’s foreign investment screening regime, addressing growing concerns about strategic acquisitions in defence, semiconductors, AI and critical raw materials by non-EU investors with state backing.
The European Parliament has placed the question of joint EU medicines procurement at the centre of its May plenary, as pressure from Washington and Beijing on pharmaceutical supply chains reaches what liberals describe as a decisive moment for the Union’s negotiating leverage.
The European Union faces a pivotal choice over how to secure supplies of essential medicines, with lawmakers debating whether Brussels should harness the collective bargaining power of its 450 million citizens or maintain the current system of individual national negotiations with major pharmaceutical suppliers in the United States and China. Renew Europe’s lead negotiator on…
European Union gas storage levels stood at 36 per cent on 13 May 2026, the lowest mid-injection-season reading since 2018, as the closure of the Strait of Hormuz tightens LNG supply. The Commission has formally relaxed the mandatory November filling target from 90 per cent to 80 per cent for the 2026 winter season.
The European Parliament has finalised its position on the long-anticipated steel safeguards reform, establishing a tariff-free import quota of 18.3 million tonnes per year and imposing a 50 per cent duty on volumes above that threshold. The regulation is due to take effect on 1 July 2026.
