Month: August 2025

The annual Jackson Hole gathering closed with what may prove to be Jerome Powell’s last major act before the Federal Reserve’s September meeting — and while the chair resisted committing to a rate cut, markets are convinced the groundwork has been laid.
Powell struck a characteristically cautious note, stressing that the Fed still has jobs and inflation data to digest before mid-September. Yet the message was clear: the door to easing is open, and expectations for a cut are firmly in play.
Nigel Green, chief executive of global financial advisory group deVere, said Powell had “done what central bankers do best — he kept the door open,” adding: “The Fed is already behind the curve, and the balance of risks is shifting toward easing sooner rather than later.”
The Fed has not reduced interest rates since December, but economic signals are flashing red. Growth is softening, the labour market is showing early signs of stress, and tariffs imposed by President Donald Trump are pushing up costs throughout supply chains.
“The irony is that Trump’s tariff push, designed to project strength, is one of the biggest inflationary forces in the economy right now,” Green noted.
While a rate cut will not undo tariff-driven price pressures, it could provide relief by keeping credit flowing and confidence intact.
The timing of the decision now hinges on early September’s economic releases. The monthly jobs report will test whether hiring momentum can recover, while inflation data the following week will confirm whether July’s unexpectedly hot wholesale prices were an outlier.
Markets are already jittery: the dollar has whipsawed, Treasury yields are sliding, and risk-sensitive currencies from the Australian dollar to the Korean won are reacting to every hint of Fed recalibration.
“If the jobs data are weak, or if inflation shows signs of rolling over, Powell will have all the cover he needs to move,” Green said. “Waiting longer risks tightening financial conditions further — markets are not patient forever.”
The Wyoming retreat has often served as a platform for pivotal shifts in Fed communication. In 2010, Ben Bernanke laid the groundwork for quantitative easing. In 2022, Powell introduced the “higher for longer” mantra.
This year, his tone was more guarded but the subtext unmistakeable: the Fed is preparing markets for change.
If rates fall, the likely beneficiaries are already in view. Capital-intensive tech and AI firms would face lower financing costs. Real estate investment trusts and utilities, which thrive when bond yields fall, could see demand surge. Small-cap companies, heavily reliant on borrowing, would also benefit.
“These are the companies that will drive the next cycle of growth,” Green argued. “Investors who position early will capture the upside before it becomes consensus.”
For households, the picture is mixed. Higher-income Americans continue to spend freely, but middle- and lower-income groups are tightening their belts. Earnings season has exposed this divergence, underscoring why policymakers fear that weakness at the bottom could drag the broader economy down.
“The Fed cannot target tariffs, but it can target confidence,” Green said. “A cut in September would reassure households and businesses that the central bank is not asleep at the wheel.”
Powell has signalled he is waiting on the data, but global peers such as the European Central Bank and the Bank of England are already adjusting their policy stances. The risk for the Fed is that by delaying, it falls behind the curve.
“The window for action is now,” Green concluded. “We expect a cut in September. If Powell waits for perfect conditions, the Fed will end up chasing events instead of shaping them.”
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Fed rate cut looms after Powell’s Jackson Hole speech

Sir Keir Starmer has been accused of betraying Britain’s farmers after a new report revealed Labour has failed to deliver on its manifesto promise to back locally grown food.
Before the general election, Labour pledged that half of all food purchased by the public sector would be “locally produced or certified to higher environmental standards.” With the public sector spending an estimated £5 billion a year on food, the pledge was billed as a potential multi-billion-pound lifeline for farmers.
However, data obtained by the Countryside Alliance shows that only two government departments currently source a majority of their food from Britain: the Foreign, Commonwealth and Development Office (80%) and the Department of Health and Social Care (72%). Other departments either failed to record figures or admitted they had no policies on prioritising British-grown produce.
The findings come against a backdrop of widespread discontent in the farming community. Chancellor Rachel Reeves’s inheritance tax reform last year, which slashed reliefs available to family farms, prompted a record 3,175 closures and triggered tractor protests in Westminster. Farmers, still reeling from those measures, now see the unfulfilled food pledge as a further betrayal.
Richard Tice, deputy leader of Reform UK, said: “After slapping an unjust and disastrous inheritance tax on British farms, it comes as no surprise that Labour are continuing their betrayal of UK food producers. It’s almost as if they are trying to wipe the sector out entirely.”
Victoria Atkins, the Conservative shadow environment secretary, added that the government was “quietly shelving every promise it made to rural Britain,” warning that farmers faced “their worst-ever harvest” while prices continue to rise.
Gareth Wyn Jones, a sheep farmer and campaigner in Conwy, called the failure to support British produce “a total disaster.” He warned the country was “sleepwalking into food shortages” unless more was done to back domestic agriculture.
The National Farmers’ Union (NFU) echoed the criticism, with deputy president David Exwood describing progress on sourcing British-grown food as “disappointing.” He said: “Public procurement should be a powerful tool to support domestic food production, yet progress remains slow. Farmers produce high-quality food to some of the world’s leading standards, and supporting their work is vital for the UK’s resilience and food security.”
Despite Labour’s manifesto stating that “food security is national security,” several departments — including the Department for Environment, Food and Rural Affairs — noted that current “buying standards for food and catering” did not require them to source domestically.
The government has defended its record, insisting that its new National Procurement Policy Statement and Procurement Act would open up more opportunities for farmers to bid for public-sector catering contracts.
A government spokesman said: “Our commitment to farmers and food producers remains steadfast. We want our farmers to be well placed to bid for a fair share of the £5bn spent on public-sector catering contracts each year.”
The issue is fuelling growing disillusionment with Labour in rural constituencies. Polling shows that the proportion of countryside voters who believe the party “does not understand rural Britain” has doubled since the election. Reform UK is now targeting disenchanted voters, promising to raise the farming budget to £3bn and end climate-related subsidies.
Analysts also warn the impact of climate change is exacerbating the crisis. The Agriculture and Horticulture Development Board (AHDB) has predicted one of the UK’s worst harvests in decades following a summer of drought.
Tom Lancaster, an analyst at the Energy & Climate Intelligence Unit, said farmers urgently need more support to adapt to “extreme, record-breaking weather,” while also investing in healthier soils and resilience measures.
For now, however, farmers say they are left with promises, not delivery. David Bean, author of the Countryside Alliance report, said: “In the face of economic uncertainty, and with a barrage of other government policies making their livelihoods harder, British farmers deserve more than warm words. They need meaningful, measurable action.”
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Starmer accused of betraying farmers as British food pledge stalls

Yvette Cooper, the Home Secretary, is preparing to appeal a High Court ruling that ordered the closure of a migrant hotel in Essex, amid warnings the case could set a precedent for asylum housing across the UK.
Dan Jarvis, the security minister, confirmed on Wednesday that the Home Office will seek to overturn the temporary injunction forcing the shutdown of the Bell Hotel in Epping.
He said the government wanted to ensure hotel closures were carried out in a controlled and coordinated manner, led by the Home Office and its contractors.
The legal battle was triggered after Epping Forest District Council successfully argued that the Bell Hotel required planning permission to be repurposed as long-term accommodation for asylum seekers. The High Court ordered all residents to leave by 12 September 2025, unless the hotel’s owner, Somani Hotels, launches a successful appeal.
The ruling followed months of controversy surrounding the site, which had become a flashpoint for anti-immigration protests. Councillors cited public safety concerns and the location’s proximity to schools and care homes as reasons for taking legal action.
The Home Office’s lawyers warned the decision could embolden other councils to mount similar legal challenges, creating what they described as a “new norm” that would intensify pressure on Britain’s asylum estate.
Mr Jarvis said: “This Government will close all asylum hotels and we will clear up the mess that we inherited from the previous government. But these closures need to be done in a managed and ordered way. That’s why we’ll appeal this decision.”
The government has committed to shutting down all asylum hotels by the end of this Parliament in 2029, in line with Labour’s election manifesto.
Currently, more than 32,000 asylum seekers are housed in up to 210 hotels nationwide.
The Home Office had previously attempted to intervene in the Epping case but was denied by the judge, who said its involvement would not materially assist the planning dispute. Officials argued that removing asylum seekers too quickly could heighten tensions and even increase the risk of violent protests.
The security minister stressed that while the government is determined to end the use of hotels for asylum accommodation, doing so “in an orderly way” was essential to protect both residents and communities.
The ruling has already prompted other councils — including Labour-controlled authorities — to threaten similar legal challenges. Planning lawyers have suggested the Epping decision could reshape how migrant accommodation is managed, forcing the Home Office to seek planning permission before repurposing hotels in future.
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Government to appeal High Court ruling forcing closure of Epping migrant hotel

The London Underground is braced for a week of chaos next month as thousands of staff walk out in a fresh dispute over pay and working conditions.
The RMT union confirmed that a series of rolling strikes will begin on September 5, involving signallers, engineers and service control staff across multiple Tube lines. Drivers are not included in the action, but disruption to services is expected to be widespread.
RMT general secretary Eddie Dempsey said members were striking in response to years of fatigue, unsocial shift patterns and what they regard as inadequate pay. “Our members are doing a fantastic job to keep our capital moving,” he said. “They’re not after a king’s ransom, but fatigue and extreme shift rotations are serious issues impacting on their health and wellbeing – all of which London Underground management has failed to address.”
The union has rejected a 3.4% pay rise offered by London Underground, arguing that it falls short of inflation and ignores wider concerns about working hours. RMT balloted more than 10,000 members, with around 6,000 voting in favour of strike action.
City Hall urged both sides to avoid disruption. A spokesman for Mayor Sadiq Khan said: “Nobody wants to see strike action or disruption for Londoners. The mayor urges the RMT and TfL to get around the table to resolve this matter.”
TfL, which employs around 28,000 staff, insisted its offer was fair and affordable. A spokesperson said: “We are committed to ensuring colleagues are treated fairly and, as well as offering a 3.4% pay increase, we have made progress on concerns about fatigue and rostering. But a reduction in the contractual 35-hour working week is neither practical nor affordable.”
The timing of the strikes will cause maximum disruption. They coincide with Coldplay’s sold-out Wembley Stadium finale, the BBC Proms at the Royal Albert Hall, Post Malone’s Tottenham Hotspur Stadium performance and a full fixture list of Premier League and Women’s Super League football.
Business groups and opposition politicians have warned of the economic fallout. Keith Prince, London Assembly Conservatives’ transport spokesman, said: “London will be thrown into chaos by these strikes, putting jobs and our economy at risk. TfL must resolve this before it takes place.”
With Britain already losing more than 280,000 working days to strikes in the first half of the year, the announcement piles further pressure on the Labour Government, which pledged to bring stability to industrial relations after inflation-busting public sector pay deals.
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London Tube faces week-long strike as RMT rejects pay offer

Liberty Speciality Steel has collapsed into administration after a winding-up petition in the High Court, placing one of the UK’s most strategically important steelmaking businesses under government control.
The South Yorkshire-based company, which employs around 1,450 people, will now be managed by special officials appointed by the Government’s Official Receiver. Liberty Speciality Steel supplies high-grade steel products to critical sectors including aerospace, defence, power generation, oil and gas, and rail. Its specialist alloys are used in everything from aircraft carriers and military aircraft landing gear to turbines and control systems.
The collapse marks another major blow for the UK’s struggling steel industry. Recent years of low production volumes have left gaps in the domestic supply chain, forcing manufacturers to rely on imports.
Gareth Stace, director general of UK Steel, welcomed the government’s intervention but urged urgent action to secure the future of the plants.
“We hope a new owner is found quickly who can inject the investment and working capital required to return production volumes to previous levels,” he said. “These assets produce high-quality, specialist steels for high-value markets. The Government must continue to push on trade defence and reduce energy costs so that the business, and the wider UK steel ecosystem, becomes sustainable.”
Charlotte Brumpton-Childs, national officer at the GMB union, described the news as “another tragedy for UK steel – and the people of South Yorkshire – this time brought on by years of chronic mismanagement by the owners.”
However, she added that the government now had a chance to intervene decisively: “This represents an opportunity for the Government to take decisive action, as it did with British Steel, to protect this vital UK industry.”
The Government has yet to announce next steps, but with the assets now in public hands, ministers face mounting pressure to ensure the continuation of steelmaking in Sheffield and Rotherham. The future of more than a thousand highly skilled jobs, as well as the security of UK supply chains for defence and energy, is at stake.
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Liberty Speciality Steel collapses into administration and government receivership with 1,450 jobs at risk

Welsh IT and technology solutions specialist Team Metalogic has been named one of the world’s top 200 managed service providers, achieving 187th place in the prestigious MSP 501 list compiled by Channel Futures.
The Caerphilly-based firm is the only Welsh company to feature in the 2025 rankings, placing 11th across the UK and Europe. The MSP 501 is regarded as the global benchmark for excellence in the sector, recognising the most successful and innovative providers based on growth, recurring revenues, service innovation and client outcomes.
With more than 150,000 managed service providers worldwide, competition for a spot on the list is fierce. The global market, valued at nearly $300 billion in 2023, is forecast to more than double by 2030.
In addition to its overall ranking, Team Metalogic has also been named to the Next Generation MSP list, a select group of providers recognised for embracing emerging technologies and pioneering service models.
Founded in 2003 by CEO Mike Parfitt with “one laptop and one desk”, the company now employs 17 people and generates annual revenues of £2.2 million. It works with ambitious clients across regulated and growth-focused sectors such as community banks, investment firms, law practices, dental businesses, retail and healthcare. Recent successes include helping one dental practice increase turnover fifteenfold through strategic technology planning.
Parfitt said the accolade was both a proud moment for Wales and recognition of his team’s long-term commitment “The MSP 501 is recognised as the global benchmark for excellence among managed IT service providers. To represent Wales on a global stage and see our name alongside some of the biggest providers in the industry is an honour.
This recognition is about our results, but the real reason we achieve them is our people. Our culture, our shared purpose and our commitment to building long-term relationships are what make the difference.”
He added that Team Metalogic’s role has evolved from providing traditional IT support to acting as a strategic growth partner: “Whether a client has two employees or two hundred, we align the right technology to their goals so they can grow faster, work smarter and do it more sustainably. That’s why I believe we’ve been recognised as a Next Generation MSP.”
Parfitt said the firm’s strong culture was what drove both client loyalty and staff retention.
“You can have the best technology in the world, but it’s the people who make it work. Our team’s drive, care and shared sense of purpose are our real differentiators. They’re the reason clients stay with us, trust us, and grow with us.”
He concluded: “To rank 187th in the world and 11th in the UK and Europe is something we’re hugely proud of. With more than 150,000 managed service providers globally, it’s a real achievement to stand out at this level. It reflects not only how far we’ve come, but also the trust our clients place in us every day.”
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Welsh IT firm ranked among world’s top 200 managed service providers

A new study has set out a strategic digital roadmap to fast-track the UK steel industry’s transition to net zero, warning that overcoming skills shortages, regulatory hurdles and investment uncertainty is vital if the sector is to meet its climate goals.
The research, developed by academics at the University of Warwick and supported by the InterAct programme, identifies 12 critical barriers to the adoption of Industrial Digital Technologies (IDTs). These include everything from regulatory complexity to a lack of skilled workers and funding pressures.
Using a seven-layer framework, the study maps out how these challenges interconnect and ranks which need to be prioritised by policymakers and industry leaders. The aim is to guide the steel industry — which comprises more than 1,100 companies and contributes £2.3 billion to the UK economy — towards more resource-efficient and sustainable production.
While steel is endlessly recyclable, its production is highly energy-intensive, accounting for a significant portion of global CO₂ emissions. That makes decarbonisation a pressing priority, both nationally and internationally.
“Our research provides targeted, actionable recommendations that empower decision-makers to focus their efforts where they’ll have the greatest impact,” said Dr Taofeeq Ibn-Mohammed, one of the study’s authors. “A strategic blend of policy reform, technological innovation, organisational change and smart economic planning is key to overcoming these barriers and building a greener, more competitive steel industry.”
The findings have already been presented at AISTech, the Iron and Steel Technology Conference in the US, where they were welcomed by global industry stakeholders. A practitioner’s report is now in preparation to provide practical guidance for UK companies.
Dr Aitana Uclés Fuensanta, the project’s lead researcher, said: “This is the first empirical analysis of its kind to map the causal relationships between barriers to IDT adoption. Our insights will enable stakeholders to prioritise action, share best practices, and drive meaningful progress toward net zero.”
The study is part of the wider InterAct programme, which is funded through the government’s Made Smarter Innovation initiative. InterAct brings together academics, manufacturers, policymakers and digital technology providers to examine how new technologies can support sustainable change in UK industry.
Professor Jill MacBryde, co-director of InterAct at the University of Strathclyde, said: “The work undertaken by the University of Warwick team represents a crucial step towards a more sustainable future for the steel sector. By focusing on the human, regulatory and operational issues as well as the technology itself, this roadmap shows a clear path forward.”
The methodologies developed in the research are also being applied to other energy-intensive industries such as ceramics and glass, helping to reinforce the UK’s role as a leader in industrial sustainability innovation.
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UK steel industry given digital roadmap to reach net zero

Hospitality businesses across Britain are being forced to shut their doors at least one day a week as soaring wage costs and higher taxes pile pressure on the sector.
A new survey by leading trade bodies found that almost three quarters of pubs, restaurants and cafes were operating at or below 85 per cent of their normal capacity, with many cutting back opening hours in a scramble to save cash.
The closures follow the Chancellor Rachel Reeves’s decision to raise employers’ National Insurance contributions (NICs) by £25 billion and increase the minimum wage in April. While summer trading has remained strong, the rise in labour costs has tipped many operators into crisis.
The survey, carried out by the British Institute of Innkeeping, the British Beer & Pub Association, UKHospitality and Hospitality Ulster, revealed that 73 per cent of businesses had less than six months of cash reserves, while one in five had none at all.
To offset the new costs, 79 per cent of businesses said they had raised prices for customers, more than half had cut staff numbers, and many were reducing operating hours.
According to UKHospitality, Reeves’s tax raid has added £3.4 billion in costs to the sector, prompting 84,000 job losses since last year’s autumn Budget.
Andrew Griffith, the shadow business secretary, accused the Government of ignoring industry warnings: “The Government stubbornly ignored clear warnings about the jobs tax and state-imposed wage rises from hospitality businesses because Reeves thought she knew better. Now, instead of a roaring summer trade, businesses can’t afford the staff they need and are watching their cash reserves fade faster than a tan after a holiday.”
Figures from the Recruitment and Employment Confederation showed hospitality job vacancies fell by more than 22,000 in June compared with a year earlier. Wider ONS data also recorded a decline in national vacancies to 718,000 in the three months to July, down 44,000 on the previous quarter.
The British Beer & Pub Association last month warned that one pub a day is expected to shut this year, as landlords battle the combined pressures of Reeves’s tax rises, higher wages and stubbornly high energy bills.
In a joint statement, the trade bodies behind the survey said: “Unsustainable tax increases are squeezing businesses, stifling growth and investment, and threatening local employment, especially for young people. It is forcing businesses to make impossible decisions to cut jobs, put up prices, reduce opening hours and limit the support they want to give their communities.”
They called on the Government to roll back April’s NIC changes, reduce VAT, and cut business rates to safeguard jobs and investment.
A Government spokesperson defended its record, saying: “Pubs, cafes and restaurants are vital to local communities, that’s why we’re cutting the cost of licensing, helping more pubs, cafes and restaurants offer pavement drinks and al fresco dining, and extending business rates relief for these businesses – on top of cutting alcohol duty on draught pints and capping corporation tax.”
But industry leaders argue such measures fall short of tackling the structural costs created by the recent Budget, warning that without further action Britain’s hospitality sector faces a winter of closures.
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Tax raid forcing pubs and restaurants to close one day a week

King’s College, Cambridge has revealed the 24 startups selected for its first-ever incubator programme, SPARK 1.0, an initiative designed to turn research-backed ideas from students and alumni into investable companies.
The new scheme, created by King’s Entrepreneurship Lab (King’s E-Lab) in partnership with Founders at the University of Cambridge, aims to support the next generation of entrepreneurs tackling global challenges ranging from disease prevention to climate resilience and fertility support.
King’s College has long been associated with transformative breakthroughs in science and technology, counting Alan Turing, Geoff Hinton and Fred Sanger among its alumni. Now, SPARK 1.0 aims to continue that legacy by nurturing founders working across software, AI, life sciences, semiconductors and sustainability.
The programme received more than 180 applications, with 24 companies chosen. Of these, 42% are still at the idea stage, 40% already have an early-stage product, and 17% have initial users. Half of the selected companies are led by women.
The ventures include:
• Dielectrix, developing next-generation semiconductor dielectric materials.
• GreenHarvest, using satellite data to predict climate-driven changes to crop yields.
• Dulce Cerebrum, building AI models to detect psychosis from blood tests.
• Neela Biotech, working on carbon-negative jet fuel.
• Egg Advisor, a digital fertility platform for women freezing their eggs.
• Zenithon AI, applying machine learning to advance nuclear fusion.
Other companies span agritech, medtech, e-mobility, AI-powered mental health and novel therapeutics.
The four-week incubator, which begins at the end of August, will provide hands-on mentoring, workshops and access to Cambridge’s network of investors and entrepreneurs. Founders will leave with a validated business model, a clear product pathway, and the chance to pitch for £20,000 in seed funding at Demo Day.
They will also be able to compete for additional angel investment and join a wider Cambridge innovation community.
Kamiar Mohaddes, co-founder and director of King’s E-Lab, said the aim was to encourage more students to see entrepreneurship as a viable path: “Cambridge has been responsible for many world-changing discoveries, but entrepreneurship isn’t the first thought of most people studying here. SPARK is a catalyst to help students turn bold ideas into ventures that contribute meaningfully to the economy.”
Gerard Grech CBE, managing director of Founders at the University of Cambridge, added that the initiative comes at a time when Cambridge is seeking to double its tech and science output in the next decade: “Tech already contributes £159 billion to the UK economy and three million jobs. This grassroots energy is where the next wave of transformative businesses will come from.”
Provost of King’s College, Gillian Tett OBE, said the programme demonstrated the strength of Cambridge’s AI and life sciences ecosystem: “Through SPARK, we can support students, researchers and alumni to make the leap from lab to marketplace. This isn’t just a game-changer for King’s, but for all of Cambridge.”
The incubator is supported by Cambridge Enterprise and made possible by a personal donation from King’s alumnus Malcolm McKenzie, chair of the E-Lab’s senior advisory board.
The programme is free for eligible Cambridge students, postgraduates, post-docs, researchers and alumni who graduated within the past two years.
With its first cohort now underway, SPARK 1.0 marks a significant step in Cambridge’s efforts to ensure its world-class research translates into high-growth startups.
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Cambridge unveils first SPARK incubator cohort of 24 startups