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Europe
BBC Business

UK borrows less than expected in June but public finances remain a challenge

The government borrowed slightly less than expected in June, according to figures published as new Prime Minister Andy Burnham began setting out measures to cut living costs for households. Borrowing - the difference between spending and income from taxes - was £16bn, about £7.9bn lower than a year earlier, although analysts said challenges remained over the UK's public finances. Other data showed the unemployment rate was unchanged, with the Office for National Statistics (ONS) saying the labour market was "relatively steady". However, while the borrowing figure was less than forecast, the ONS said total debt was high by historical standards and close to the annual value of the UK economy. Borrowing for June was slightly below the £16.3bn that had been predicted by the government's official forecaster, the Office for Budget Responsibility (OBR). Ruth Gregory, deputy chief UK economist at Capital Economics, said June's figure was "a rare piece of good news" for the new prime minister and his new Chancellor, John Healey. However, she added: "Overall, there's no escaping the fact that the public finances are fragile and that there is limited scope for extra borrowing." So far in the current financial year, borrowing has reached a total of £57.6bn, according to the Office for National Statistics (ONS). While this is down £3.7bn from the same period last year, it is £2.7bn above the OBR's forecast. James Smith, chief UK economist at ING, told the BBC's Today programme the fact that borrowing was still running ahead of the OBR's projections was "a reminder of the challenges that the new chancellor and the new prime minister face". He added they would face a "difficult picture" at the autumn Budget, with "lots of tough choices to be made". Burnham and Healey have both pledged to stick to former chancellor Rachel Reeves' fiscal rules on spending and borrowing. although the new prime minister said on Monday he would use "any flexibility within them" to help with policy changes. Shortly after Burnham's comments were made public, the yield on 10-year government bonds - effectively the interest rate charged to the UK government for a 10-year loan - rose above 5%.

UK borrows less than expected in June but public finances remain a challenge
Europe
BBC Business

Thames Water lenders offer 'golden share' to head off nationalisation

Thames Water's main lenders are offering the government a "golden share" and more control for local authorities in a bid to stop the troubled supplier from being nationalised. The government recently rejected a previous rescue proposal, and the BBC understands the lenders are preparing a legal challenge in case the new Andy Burnham-led government takes the firm into public hands. The "golden share" would give the government veto powers over major decisions such as mergers. The lenders are also proposing giving local authorities greater involvement in the firm, similar to the relationship between United Utilities and Greater Manchester agreed when Burnham was the city's mayor. In his first speech as prime minister on Monday, Burnham said he wanted to see greater public control of "life's essentials". Sources close to the creditors have told the BBC that in the event of full nationalisation they would pursue payment in full of the outstanding debts, as has happened in previous cases, which could leave the government with a multi-billion-pound bill. The London & Valley Water (L&VW ) consortium of lenders had already proposed a £10bn deal to prevent Thames Water from entering administration. It would involve writing off nearly half of its debt and injecting new cash in return for leniency on future pollution fines. The deal was rejected by the government in June, with then-environment secretary Emma Reynolds saying it did not do enough for consumers or the environment. Sources close to the new deal said the creditors had sweetened it with hundreds of millions in new money on top of the existing offer. A golden share would give the government veto power over major decisions such as mergers and acquisitions. Golden shares are seen as a way for the government to retain a stake in companies of national significance or importance, such as Royal Mail or Rolls Royce. A government spokesperson said Thames Water "remains financially stable, but we stand ready for all eventualities, including applying for a Special Administration Regime [SAR] if that were to become necessary". "The government will always act in the national interest on these issues," they added.

Thames Water lenders offer 'golden share' to head off nationalisation
Europe
BBC Business

Can airport really go carbon neutral amid plans to expand flights?

Giant heat pumps, electric vehicles, and new fuel efficient planes are being ordered by an airport introducing major changes to cut its carbon emissions. But climate campaigners say the measures "barely touch the surface" of the problem. They say 99% of the carbon emitted by the airport is from planes, and have urged council leaders to reject plans to allow the airport to expand its flights. Mary Collett, from Bristol Airport Action Network, said: "With the weather like this at the moment, the unbearable heat, the fact that we can't grow food as easily, we just can't carry on expanding airports, we all just need to fly a bit less." But like many regional airports, Bristol is keen to expand, and has applied to grow from 12 million passengers a year to 15 million, which airport bosses insist can be done "sustainably". Dave Lees, the airport's chief exec, said new planes are greener than ever, and that Bristol will be "the first airport to be net zero by 2030" - but crucially this does not account for emissions from flights. People's desire to travel seems limitless, with airlines able to sell more flights to more destinations. The UK Government has backed expansion of regional airports to "drive economic growth". But as the impact of a changing climate is felt in repeated heatwaves, droughts and wildfires this summer, how can we fly around the world without costing the earth? Right now, councillors in North Somerset, Bristol Airport's local authority, are reading an ambitious expansion plan. Airport chiefs wants to add another 15,000 flights a year, raising their cap to 100,000. This means a bigger terminal building, and controversial new landing lights on ancient common land next to the airport. Many of the new flights are on EasyJet planes, and the airline has invested in new aircraft which it says cuts fuel use, and so carbon emissions. The Airbus NEO jets, with wings designed nearby in Filton and built in the UK, have cut fuel consumption by 20%.

Can airport really go carbon neutral amid plans to expand flights?
Europe
BBC Business

VAT to be cut from household electricity bills in October

Image source, Getty ImagesByKevin PeacheyCost of living correspondentPublished21 July 2026, 06:20 BSTUpdated 1 hour agoVAT will be cut from household electricity bills, the government has announced, as part of new Prime Minister Andy Burnham's pledge to help with the cost of living. The reduction from 5% VAT to zero will come into effect on 1 October, saving a typical household about £45 a year. Ministers said it would be funded by savings from the cancellation of the digital ID programme, which was going to cost £1.8bn over the next three years. The government estimated it will cost £850m this financial year. But Labour's Darren Jones, who was sacked as chief secretary to the prime minister on Monday, accused the government of announcing an unfunded tax cut. Jonathan Reynolds, the new business secretary, said the cut would give people some "breathing space". He said it was funded until "the end of the financial year" in March 2027 and any changes beyond that would have to be announced in the next Budget. Suppliers have been told the VAT reduction should be passed on to all household customers, including those on fixed tariffs, as was the case when some charges were taken off bills in April. The cut will take effect in England, Scotland and Wales, but equivalent funding would be given to Northern Ireland, which is regulated differently, the government said. The reduction could not be automatically be applied in Northern Ireland due to EU rules limiting the range of goods which can be sold without VAT. Following Brexit, England, Scotland and Wales are not bound by these restrictions. Small businesses who qualify for the domestic energy VAT relief and are not registered for VAT, as well as charities and residential care homes eligible for the reduced rate, will also benefit. Cutting VAT is a relatively basic tool to reduce an energy bill - with larger households likely to save more as they use more electricity. However, some vulnerable households are also high electricity users, such as for running medical equipment.

VAT to be cut from household electricity bills in October
Europe
BBC Business

Ozempic-maker accuses rival of false advertising

Image source, Getty ImagesByMichael RaceBusiness reporter, Reporting fromNew YorkPublished21 July 2026The maker of Wegovy and Ozempic, Novo Nordisk, has launched legal action accusing its arch rival Eli Lilly of false advertising in suggesting its weight-loss drugs perform better. The Danish company filed a lawsuit in the US on Tuesday claiming Eli Lilly, which makes Mounjaro and Zepbound, deployed ad campaigns to "create the misleading impression that Eli Lilly's medicines are superior". Novo said its competitor compared the highest approved doses of its medicines for obesity and type-2 diabetes with lower doses of Novo Nordisk's, while omitting newer, higher-dose options. Eli Lilly hit back at the claims and said it stood "firmly behind our advertising". "It is truthful, it is transparent, and it is grounded in the most direct scientific evidence available - exactly what patients deserve. We will continue to focus on the science and defend against this lawsuit vigorously," a spokesperson for the company said. The lawsuit comes as pharmaceutical heavyweights Novo and Eli Lilly are locked in battle to dominate the fast-growing weight-loss drug industry, especially in the US, which analysts have estimated could be worth more than $100bn by 2030. Novo Nordisk claimed its main competitor in the weight-loss drug business had committed "multiple violations" of federal and state false advertising and unfair competition laws, through its nationwide ad campaigns. The company said Eli Lilly's current campaigns "intentionally" selected outdated studies comparing Lilly's highest doses against lower doses of Novo Nordisk's medicines. It said the ads had "deceptively" presented that Eli Lilly's products were superior, but buried or omitted "critical clinical context". The products being compared incorrectly, according to Novo, were Mounjaro vs. Ozempic and Zepbound vs Wegovy. "As new and more effective treatment options become available, people deserve accurate information that reflects the latest scientific evidence and helps them make informed care decisions," said John F. Kuckelman, senior vice president and group general counsel for Novo Nordisk. "Healthcare companies have a responsibility to keep their public claims accurate and current - ineffective, fine-print disclaimers do not fix the misleading impression created by major national campaigns," he said.

Ozempic-maker accuses rival of false advertising
North America
CNBC Finance

JetBlue wins Spirit slots at LaGuardia Airport, eyes move to Marine Air Terminal as airlines fight for space

JetBlue Airways has won Spirit Airlines slots at New York's LaGuardia Airport and is looking to move back into the failed budget carrier's old home, a major reshuffling at the congested airport less than three months after the discounter collapsed in the biggest U.S. airline failure in decades. The slots at the tightly controlled airport are for 12 round-trip flights and are still subject to final court and regulatory approvals, JetBlue said. Slots and gates are valuable in congested airports like LaGuardia because tight airspace restrictions and crowded airports in a big city like New York cap airline growth. Carriers have turned to using larger planes that fit more passengers to boost their capacity in some cases because infrastructure is so limited. JetBlue told staff in a note Monday, which was seen by CNBC, that it's now turning to "evaluating our plans for the slots as we consider opportunities for our network strategy" noting that any expansion won't happen until 2027. According to the note, JetBlue wants to move to Terminal A, also known as the Marine Air Terminal, an Art Deco facility that Spirit operated out of until it shut down in early May. JetBlue previously operated out of the space before relocating to a newer terminal years ago. "It's a convenient terminal travelers love," JetBlue said of the Marine Air Terminal. The New York-based airline, which is in the midst of a big expansion at Fort Lauderdale-Hollywood International Airport in Florida, last month said it would reduce its staffing footprint at LaGuardia and Newark Liberty International Airport in New Jersey and ramp up service in Fort Lauderdale. Spirit's airport assets are now winding their way through U.S. Bankruptcy Court in New York. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

JetBlue wins Spirit slots at LaGuardia Airport, eyes move to Marine Air Terminal as airlines fight for space
North America
Yahoo Finance

Nasdaq, Dow, S&P 500 Futures Edge Higher Ahead Of Key Earnings Week Even As Middle East Tensions Continue: DJT, NVDA, SLS, PANW Stocks In Focus

U.S. stock futures climbed higher in the overnight session late Sunday ahead of a key earnings week, even as the conflict between the U.S. and Iran escalated over the weekend. Nasdaq-100 futures climbed 0.45%, Dow futures were up 0.04%, and S&P 500 futures rose 0.14% at 9:11 PM EDT. All three benchmark indexes closed lower on Friday amid a selloff in chip stocks and growing concerns over AI spending. The Nasdaq Composite led the declines, shedding more than 360 points to close 1.40% lower. The S&P 500 was down 1.01%, while the Dow closed 0.77% lower. The Nasdaq, S&P 500 and Dow indexes also posted the worst week this quarter, tumbling nearly 3%, 1.55% and nearly 1%, respectively. Additionally, the VanEck Semiconductor ETF (SMH) tumbled nearly 9% last week as Taiwan Semiconductor’s capex hike weighed heavily on chipmakers. Chief market technician at BTIG, Jonathan Krinsky, said semiconductor companies could slip even further from here. “They could certainly bounce here in the short term, but we don’t see signs of (any) kind of that real big washout that you’re looking for,” Krinsky told CNBC on Friday. U.S. markets recovered overnight ahead of Monday, as investors watch for key earnings results this week. Two “Magnificent Seven” members, Alphabet Inc. (GOOG, GOOGL) and Tesla Inc. (TSLA), are slated to report their second-quarter (Q2) results on Wednesday. Meanwhile, chip giant Intel Corp. (INTC) will also report its Q2 results later this week, on Thursday. Meanwhile, tensions in the Middle East escalated over the weekend, with the U.S. launching its ninth consecutive strike on Iran late Sunday. “CENTCOM began conducting a new wave of strikes against Iran at 7 p.m. ET today for the ninth consecutive night. The strikes will continue degrading Iranian military capabilities used to attack commercial vessels and civilian mariners transiting the Strait of Hormuz,” the U.S. Central Command said in a post on X. Over the weekend, a third U.S. service member died in the recent conflict in the Middle East. After initially reporting two deaths and one missing service member following an Iranian attack in Jordan on July 17, CENTCOM said that U.S. forces later confirmed the death of the third member. Iran’s Deputy Foreign Minister Kazem Gharibabadi said in a post on X, “The U.S. attack on the under-construction facilities of the Darquoin power plant is a dangerous assault on Iran's peaceful infrastructure and fully implicates the U.S. government in the consequences stemming from heightened insecurity and instability. Iran, while issuing a resolute condemnation of this aggression, will take appropriate measures to defend its national interests and security.” Meanwhile, oil prices soared amid the flare-up of conflict between the two nations, rising above $90 a barrel.

Nasdaq, Dow, S&P 500 Futures Edge Higher Ahead Of Key Earnings Week Even As Middle East Tensions Continue: DJT, NVDA, SLS, PANW Stocks In Focus
Asia-Pacific
The Straits Times

How PayPal went from Wall Street favourite to unwilling merger target

The company synonymous with digital payments got a $68 billion offer to be taken private by upstart rival Stripe and buyout shop Advent International. Five years ago, PayPal was a Wall Street favourite and a leader in digital payments. Since then, the stock has plunged, Apple Pay dominates payment services in the US, and PayPal is facing a takeover bid it does not like. What happens next? The company synonymous with digital payments this past week got a US$53 billion (S$68 billion) offer to be taken private by upstart rival Stripe and buyout shop Advent International. PayPal’s board is discussing the bid but believes US$60.50 a share is not enough, people familiar with the company said. It is a comedown for a company that helped to pioneer e-commerce and e-mail-based payments, launching the careers of tech titans Elon Musk and Peter Thiel in the process. Founded in 1998, the San Jose, California, firm was acquired by eBay in 2002 and spun off as an independent company in 2015. Continued growth pushed its market value as high as US$360 billion in 2021. But since then, its growth has slowed and competition intensified, while multiple attempts in recent years to jump-start its business have borne little fruit. Dealmakers are now weighing the value of PayPal’s sprawling payments ecosystem, from its 400 million-plus consumer accounts to its merchant checkout business, raising the question of whether the company is worth more as a single entity or as a collection of assets, such as the Venmo peer-to-peer payment app, that could be sold off in pieces. In February, when the company named a new chief executive, it acknowledged a need to address its position relative to competitors and within the broader industry landscape. “While some progress has been made in a number of areas over the last two years, the pace of change and execution was not in line with the board’s expectations,” it said in a statement. Enrique Lores, who took over as CEO in March, has not commented on whether PayPal would pursue a sale. While bigger rivals such as Apple, Google and Samsung and upstarts including Stripe and Affirm relentlessly rolled out new ways for consumers and businesses to pay for goods and services, analysts say PayPal was slow to explore opportunities in digital banking and commerce, or to offer fresh options when more people were using their phones to pay. “Why bother becoming a digital bank if you can just be the world’s biggest checkout button?” said Dan Dolev, senior analyst at Mizuho. “I think it was too easy to drink the honey straight from the checkout jar.” Investors and industry executives are frustrated with PayPal’s performance, said one source familiar with the company’s deliberations. PayPal started before the iPhone even existed, but in 2025, Apple Pay’s US market share exceeded PayPal’s by 10 percentage points, according to PYMNTS Intelligence, a research company.

How PayPal went from Wall Street favourite to unwilling merger target
North America
CNBC Finance

What to know about testosterone replacement therapy as the U.S. military plans to test troops

Testosterone replacement therapy has shifted from the doctor's office to the center of a massive cultural phenomenon focused on performance, longevity and men's health. Now, the treatment is back in the spotlight after Defense Secretary Pete Hegseth announced last week that the U.S. military will begin testing service members' testosterone levels and make replacement therapy available to those who qualify, saying the goal is to help troops operate at their "absolute best." The effort also builds on a larger push by the Trump administration to promote and expand public access to testosterone replacement therapies, which are made by pharmaceutical companies such as AbbVie, Pfizer and Marius Pharmaceuticals. The announcement puts a new focus on a treatment that has grown increasingly popular in recent years, fueled by men's health clinics, telehealth companies and online influencers, who promote testosterone, or "T-maxxing," as a way to address fatigue, aging and declining performance. Health and Human Services Secretary Robert F. Kennedy Jr. has also touted testosterone therapy as part of his anti-aging regimen. Prescriptions rose from 7.3 million in 2019 to more than 11 million in 2024, according to healthcare research firm IQVIA. But there has long been a debate around the safety of taking synthetic forms of testosterone, the hormone that affects sex drive, mood and other health factors. While some research has shown benefits for patients who qualify, including improvements in bone density and muscle mass, questions remain about the therapy's long-term risks and its use among men without a clear medical need. The concern is significant: up to a third of men taking testosterone have never been formally diagnosed with testosterone deficiency and may not benefit from treatment, according to the American Urological Association. Physicians also stress that testosterone therapy is not a universal solution for low energy or normal aging. It is generally intended for men with clinically confirmed testosterone deficiency, and experts say determining who qualifies requires more than a single blood test — which appears to be the military's plan. Excess testosterone can also carry risks, including reduced sperm production. "I'm not saying that testosterone is bad. It is good for people that need it," said Dr. Adrian Sandra Dobs, an endocrinologist at the Johns Hopkins School of Medicine. "But to overreplace it – we have to be very careful about that." As testosterone therapy enters a new national conversation, here's what doctors say we know – and don't know – about its benefits, risks and who should consider treatment. Testosterone replacement therapy, which is commonly administered through injections, gels, implantable pellets and oral medications, is intended for a more narrow population than social media may suggest. Physicians say it's generally reserved for men with clinically diagnosed hypogonadism – a condition in which the body does not produce enough testosterone. That generally means persistently low testosterone levels alongside symptoms such as reduced sex drive, fatigue, erectile dysfunction, depressed mood, low bone density, or loss of muscle mass and strength.

What to know about testosterone replacement therapy as the U.S. military plans to test troops