Business news live: Fund manager warns Reeves of ‘doom loop’ and FTSE 100 drops after surge

The US and EU agreeing a deal is a positive – but it’s not all positive, says AJ Bell investment director Russ Mould.

“Stock and bond markets are welcoming the deal agreed by European Commission President Ursula von der Leyen and America’s President Trump, largely in the view that the outcome could have been worse, the risk of an escalating trade war has been lowered and that the EU is better off than it was on 2 April, after the United States’ initial launch of baseline and reciprocal tariffs,” he said.

“However, the European Parliament still has to ratify the agreement, the EU is still worse off than it was on 1 April and defence stocks are in retreat, as Europe promises to buy more US material as part of the trade agreement.”

Suzie Tullett hadn’t anticipated having to help her children buy their first homes. But over the past five years, romcom author Tullett and her ex-police-officer husband have transferred tens of thousands of pounds to their two thirtysomething sons.

Ellie Muir on the bank of mum and dad:

The FTSE 100 was up more than 0.4 per cent soon after trading started this morning – but that explosive opening has certainly stalled.

It’s still in the green and a 0.12 per cent rise would generally be seen as a positive day on most occasions, we should note.

But the fall-off across mid-morning has been replicated in markets across Europe.

The German DAX remains up 0.4 per cent and the French CAC 40 is up 0.66 per cent, both down notably since this morning.

Profit-taking or reconsideration of the trade tariff deals?

However, car makers are jumping in with their own ‘EV grants’ to avoid a stall in EV sales while car buyers wait to find out which cars are eligible for the government grants.

Our EV Editor Steve Fowler has the details:

Luxury cinema chain Everyman has seen sales rise 21 per cent in the first half of 2025.

Cinemas in general have struggled even before Covid but the group has been boosted by a 15 per cent rise in admissions and a 6 per cent average ticket price rise.

Customers have also spent more on food and drink while there, the firm said, reflecting a “successful” period despite “challenging” conditions.

Shares are up more than 5 per cent today.

Samsung have signed a deal with Tesla to provide semiconductor chips for the EV firm.

Running through to 2033, it’s a $16.5bn (£12.3bn) agreement between the companies, with a plant in Texas to be built to produce the chip.

“The strategic importance of this is hard to overstate,” Elon Musk said on X.

One in eight (12%) people with a salary over £100,000, but with no parental wealth to fall back on, feel “trapped” by their current financial commitments, a survey has found.

More than two-fifths (44%) do not feel that they are able to comfortably meet their financial commitments each month, according to the research commissioned by wealth manager Killik & Co.

Despite their high salaries, nearly a fifth (18%) of high earners in this group admit that their financial commitments are causing them stress and anxiety.

It’s not just the EU which is set to benefit from stability and certainty if the US gets its way.

Donald Trump’s government is also set to discuss further with China on Monday over the already-established framework, says Yahoo Finance.

That’s in addition to Japan sealing a deal last week, though parts of that agreement already appear under fire or under discussion.

Stock markets have been surging recently overall – and that buying power is expected to be widely in evidence again today.

Much of that is the removal of uncertainty after the US-EU trade deal was agreed, explains Derren Nathan, head of equity research at Hargreaves Lansdown.

“The 15 per cent tariff on all transatlantic EU exports should be a huge relief for multiple European industries, from pharmaceutical companies through to electronic manufacturers and luxury brands,” he said.

“The likes of Airbus will be glad to hear that certain products, including aircraft and plane parts, will not attract any tariffs. As the world’s biggest trade corridor (30 per cent of global trade and 43 per cent of world GDP), this removes a huge element of doubt ahead of the 1 August deadline.

“European stocks are also up this morning and US futures point to a solid start to the week later today. There’s little economic or corporate news expected today, but looking to the rest of the week, investors have plenty of central bank meetings, economic data points, and earnings season read outs to get to grips with. The Fed is widely expected to hold rates steady on Wednesday, but markets will also be closely watching second-quarter US GDP figures.”