Marketing Newscast

(Edited 13 March 2025)

The EU says it will impose retaliatory tariffs on some €26bn worth of US goods in response to President Donald Trump’s imposition of a 25% levy on EU metals being imported into the US, which took effect yesterday. The new EU tariffs will come into effect on 1^st April, European Commission President Ursula von der Leyen said. Initially, US steel, aluminium, textiles and plastics would be subjected to the new levies, but agricultural products such as beef, eggs and poultry could also be affected in the future, subject to the approval of EU member states, she added. "We deeply regret the US tariffs imposed on Europe. Tariffs are taxes. They are bad for business, and even worse for consumers. Today Europe takes strong but proportionate countermeasures," she said. Meanwhile, Business secretary Jonathan Reynolds said it is “disappointing” that the US has imposed global tariffs on steel and aluminium, and that the UK was not exempted. However, he refused to speculate on any retaliatory measures by Britian when questioned by journalists. He wrote on X: “We are focussed on a pragmatic approach and are rapidly negotiating a wider economic agreement to eliminate additional tariffs for the benefit of UK businesses and our economy”. Prime Minister Sir Keir Starmer also told MPs yesterday that the UK will take "pragmatic approach" to the US tariffs as part of wider discussions with the Trump administration, but added: “We will keep all options on the table."

The Labour Government’s Employment Rights Bill has passed through the House of Commons and will now be scrutinised in the House of Lords. The bill bans ‘exploitative’ zero hours contracts and ‘fire & rehire’ processes, as well as offering ‘day one’ employment rights to parental, paternal & bereavement leave, and miscarriage leave, as well as improved sick pay. Numerous business leaders have warned the Bill will limit hiring and dent investment, as well as lead to excessive costs that will hamper growth, as well as litigious claims by new disgruntled employees. Shadow business secretary Andrew Griffith has dubbed the Bill a “Trade Union Charter” that will “take Britain back to the dark days of the 1970s”. Free speech campaigners, meanwhile, have focused on clause 18 of the bill, which if passed, they say, is “chilling” in that it would require employers and staff in any organisation in the UK to take “reasonable steps” to police comments by their customers regarding sexuality, gender, race, or disabilities which could be against the law.

Companies House: the number of businesses listed on the official register dropped in the last three months of 2024. There were 5,408,707 businesses listed on the register at the end of December - 19,879 fewer than the previous quarter. The so-called “effective register,” which excludes businesses in dissolution or liquidation, dropped dramatically, by 59,495, leading analysts to blame the impact of inflation and Chancellor Rachel Reeves’ levy of significant additional costs on businesses in her October Budget.

Yet another survey, meanwhile, shows the extent to which businesses fear for their future: the latest in a regular poll by S&P Global suggests the UK is headed towards stagflation, with bosses planning to shed jobs faster than other major economies. The data also shows the weakest global hiring plans since Covid lockdowns.

Consulting giant PWC UK has made record cuts to its partners and paused an apprenticeship scheme following reduced demand for its services, the Financial Times reports. According to corporate filings, 123 partners left the ‘Big Four’ firm in 2024, more than double the annual average since 2002, and graduate intake also dropped 16% year on year. PWC’s tech apprenticeship “flying start” scheme, which allowed students to receive a degree whilst working at PWC, has also been ditched. Rival accountancy KPMG also reduced hiring by 33% last year, City AM says.

The Financial Conduct Authority (FCA) is considering introducing an industry-wide redress scheme related to the alleged mis-selling of car motor finance, meaning banks would have to reach out to those of their customers which were affected, and offer them appropriate compensation. "We would expect fewer consumers to rely on a claims management company, meaning they would keep all of any compensation they receive. It would also be more orderly and efficient for firms than a complaints-led approach, contributing to a well-functioning market in the future," the FCA said. In October last year, the Court of Appeal ruled it was illegal for lenders to pay commission to a car dealer without the customer's informed consent; The Supreme Court is to hear an appeal against that Judgement shortly. Regardless of that legal outcome, the FCA is pressing ahead separately with redress solutions in a smaller subset of car loans where bonuses were given to car dealers if they sold a loans with higher interest rates.

The FCA has also dropped plans to “name and shame” companies accused of breaking financial rules, before they have been found to have actually done so. The policy idea sparked a huge backlash from City bosses as well as politicians - in February, a House of Lords report said the plans would be an “abject failure” that risked denting the UK’s investment appeal and economic growth. Even Ashley Alder, the FCA’s own chair, has admitted the announcement of the policy had been botched, and that it was “probably not” the financial regulator’s finest hour.

The 59-year old captain of the Portuguese Solong cargo ship, which crashed into US oil tanker Stena Immaculate in the North Sea on Tuesday, has been arrested by Humberside police on suspicion of gross negligence manslaughter. Meanwhile, the Assistant Chief Coastguard John Craig says flames are still visible on the Solong, with salvage plans in place for both vessels. One crew member of the Solong is assumed to be dead. Updated reports also suggest that the Solong was not carrying sodium cyanide, as had been claimed, but in fact had four empty containers that had once shipped the toxic chemical.

Tesco is to trial giving away food that is about to go out of date. The supermarket will introduce “yellow sticker” prices of £0 in a small number of its Express stores for shoppers who visit after 9.30pm, to help slash waste and hit net zero targets.

London-listed Care REIT has agreed to be bought by US care home provider CareTrust REIT in a £448m deal.

Travis Perkins CEO Pete Redfern has stepped down due to ill health. The company's full-year results are due on next week.

Volkswagen has announced that its annual operating profit has fallen 15% year-on-year, despite a €2.4bn revenue increase. Operating costs rose €19.1bn because of higher prices and ‘extraordinary’ expenses incurred as part of its restructuring strategy. The firm also warned it faces challenges this year from US tariffs, geopolitical tensions, “the profound changes that are happening in the industry," increasing competition, volatile commodity prices, and emissions-related regulations.

A quick final aside! Volkswagon’s €2.4bn revenue is in part due to an increase in its sales of sausages. Yes, you did read that right; the car maker has produced currywurst - a sliced German sausage covered with ketchup and curry powder – at its Wolfsburg factory since 1973. Made originally on-site for the staff cafeteria, Volkswagen currywurst is now sold in 11 different countries, and the firm sold around 8.5m of the sausages during 2024, an increase of 200,000 compared to 12 months prior.