UK Bonds plunge fast
UK bonds and the pound tumbled sharply on Tuesday July 1 amid rising concerns over Finance Minister Rachel Reeves’ future. Ten-year gilt yields saw their biggest surge since 2022, and sterling dropped over 1%. Market jitters followed political uncertainty after Reeves appeared emotional during a major fiscal policy reversal in Parliament.
EU merge clash escalates
EU countries are pushing back against Brussels over cross-border banking mergers. Italy cited national security to restrict UniCredit’s bid for Banco BPM, while Spain faced EU warnings for scrutinising BBVA’s takeover of Sabadell. The European Commission argues such resistance undermines efforts to build a unified banking market across the bloc.
Spain leads temporary employment
Spain has the highest reliance on temporary work agencies (ETTs) among major European Union countries, according to recent reports. About 4.1% of Spain’s workforce is employed through these agencies, a figure notably higher than Germany’s 2.8% and France’s 2.7%. The industrial sector, along with agriculture, hospitality, and logistics, heavily depends on temporary workers due to seasonal and fluctuating demands. While Spain’s use of ETTs is significant, other EU countries like the Netherlands see an even larger share of temporary employment through agencies. This highlights Spain’s flexible but often precarious labor market structure.
Sánchez Advisor Faces Charges
Pedro Sánchez’s right hand man Santos Cerdán, has been jailed amid a corruption probe. Accused of involvement in a kickback scheme linked to public contracts, Cerdán’s detention has intensified political pressure on the Spanish government. The investigation continues, raising questions about possible wider implications for Sánchez’s administration.
Market growth investigation begins
The UK Parliament has launched an inquiry into the rapid growth of private markets since the 2008 financial reforms. The investigation will explore the impact on traditional banking, regulatory oversight, and potential risks. Authorities aim to ensure transparency, protect investors, and maintain financial stability amid expanding private market activities.
Heathrow fire under scrutiny
A recent report has found that the fire at Heathrow Airport’s North Hyde electrical substation in March 2025 was caused by a preventable fault. The National Energy System Operator revealed that moisture in transformer components, identified years earlier, was not properly addressed. Additionally, the substation’s fire suppression system had been out of service since at least 2022. The fire forced the closure of the airport, disrupting over 1,300 flights and affecting thousands of passengers. In response, energy regulator Ofgem has launched an investigation into National Grid Electricity Transmission and ordered an independent audit of critical infrastructure
€460M Crypto ring dismantled
Spanish police dismantled a €460 million crypto fraud ring, arresting five suspects. The operation targeted over 5,000 victims worldwide, involving complex laundering through global networks. Authorities continue investigating to uncover further details and prevent future scams in the cryptocurrency sector.
Sabadell warns dividen risk
Banco Sabadell’s president, Josep Oliu, has made it clear that shareholders who accept BBVA’s takeover offer won’t get the extra dividend tied to the sale of TSB. The €0.50 per share payout, part of a €3.8 billion plan to reward shareholders, will only go to those still holding shares when the dividend is paid. Sabadell is using this to encourage investors to think twice before agreeing to BBVA’s bid ahead of an important vote on August 6.
Oh-No Not Greggs!
British bakery chain Greggs saw its shares drop over 12% following a profit warning linked to the recent heatwave. The soaring June temperatures, exceeding 33°C, led to fewer customers visiting stores, hurting sales despite higher demand for cold drinks. Although first-half sales rose 6.9%, Greggs now expects its full-year operating profit to be slightly lower than last year. The company continues its expansion plans, opening 87 new outlets while closing 56 in the first half of 2025.
Hacienda extends IRPF deadline
Spain’s tax agency, Hacienda, has extended the deadline for mutualistas to request refunds of IRPF (income tax) for the years 2019 to 2022 and earlier periods still eligible. The extension follows delays in approving legislation to allow a single combined payment in 2025. While the new law awaits Senate approval expected in July, mutualistas can continue submitting refund applications through Hacienda’s online portal. This move provides relief to many taxpayers seeking reimbursement.
AstraZeneca CEO leaves UK
AstraZeneca’s CEO, Pascal Soriot, is reportedly considering relocating the company’s stock market listing from London to the United States. This stems from dissatisfaction with the UK’s regulatory environment and NHS rebate schemes. While AstraZeneca already trades in the US via American depositary receipts, a full move could impact the London Stock Exchange and the UK life sciences sector. The company has not yet informed the UK government about these discussions. AstraZeneca shares rose 2.7% following the news.
