Europe
The main macro signal is that energy costs are again central to the UK outlook, shaping both fiscal support for industry and the Bank of England’s inflation judgment.
A scheme to cut bills for energy-intensive firms is being widened to cover another 3,000 businesses. That should ease pressure on some manufacturers and other heavy users, but it also underlines how exposed parts of the economy remain to volatile power and fuel costs.
Bank of England governor Andrew Bailey told the BBC he would not rush interest rate rises, saying the Iran war energy shock makes the next rate decision “very very difficult.” The message points to a policy dilemma: higher energy prices can lift inflation, while tighter borrowing costs risk further weakening demand.
Consumer protection is also moving up the agenda. Warnings about counterfeit online bargains, including unsafe perfume, come as the government consults on stricter product safety rules, potentially raising compliance demands for online marketplaces and sellers.
Separately, social media executives are being called to Downing Street over children’s safety, adding to the sense that digital platforms face closer scrutiny from policymakers.
Together, the developments matter because they touch several pressure points at once: business costs, household safety, platform regulation and the central bank’s inflation trade-off. For markets, the key issue is whether energy shocks keep inflation sticky enough to delay easier policy, or whether weaker growth forces a more cautious rate stance.