It’s been a tricky week for the UK government, and a turbulent week for financial markets as a result.
Chancellor Rachel Reeves’ much-touted welfare reform bill faced a huge rebellion from backbench Labour MPs and had to be heavily watered down to get over the line. Last minute-concessions by Keir Starmer’s government – primarily the scuppering of plans to restrict eligibility for the so-called personal independence payments (PIP) – are likely to blow a hole in the £5bn a year the reforms were designed to save.
It was enough to send gilt yields higher as investors questioned the government’s grip on the public finances. Things got worse on Wednesday when Reeves appeared emotionally distraught in the House of Commons as an oblivious Starmer refused to explicitly back her. The yield on 10-year government bonds shot up by the most since the ill-fated Liz Truss minibudget in 2022.
Claims that Reeves’ tears were brought on by a “personal issue”, and a belated insistence by the PM that she would remain in post for “a long time to come” finally brought some calm.
There was another piece of legislation, described by its creator as “big and beautiful” making headlines during this tumult. Across the Atlantic, Donald Trump’s hugely contentious tax cuts and spending bill was passed after a series of furious and often emotionally-wrought debates.
“The golden age of America is upon us,” a grinning Trump said at the White House Independence Day picnic after signing the bill into law.
The president’s former friend and aide Elon Musk was unequivocal in his critique of the bill’s price and how it treats clean energy. He said in recent days that the $3.3 trillion increase in debt expected from the bill makes a “mockery” of his work at the Department of Government Efficiency (DOGE).
Let’s take a look at these and other stories stirring the markets in the last few days.
WASHINGTON – JULY 4: A triumphant president Trump signs his “One Big Beautiful Bill” into law from the South Lawn of the White House on Independence Day, July 4, 2025 in Washington. ·The Washington Post via Getty Images
With geopolitical tensions dominating headlines, June’s investing trends have strongly leaned towards defence and tech stocks. Fast-moving tariff news and the enduring conflict in the Middle East have been among the main market-moving topics during the month. Elsewhere, Tesla, (TSLA), bitcoin (BTC-USD) and gold (GC=F) assets were hot topics.
The presiden’t signature spending legislation moved through the Senate on a 50-50 tally that required vice president JD Vance to break the tie before the 870-page bill passed the House a few days later in a vote of 218-214.
The process proved exceptionally controversial, mainly over healthcare provisions that are set to extract hundreds of billions in government savings but could cause millions of Americans to lose coverage.
Trump seemed characteristically unmoved by such concerns, declaring: “It’s going to be a period of time the likes of which I don’t think this country has ever experienced before.”
The welfare reform bill faced strong opposition due to the harm it could cause to disabled people across Britain, as well as criticism that it was poorly designed in a scramble to find savings. For these reasons, the government was forced into a series of 11th-hour U-turns that ate into the targeted savings.
Since departmental spending plans are now effectively locked in, and the government has already had to row back on planned cuts to pensioner benefits and working-age benefits, tax rises are looking increasingly likely.
The UK’s banknotes have featured towering historical figures since William Shakespeare first appeared on one 55 years ago. Not merely a means of payment, they “serve as a symbolic representation of our collective national identity and an opportunity to celebrate the UK,” says Victoria Cleland, the BoE’s chief cashier.
With this in mind, the central bank has launched a public consultation on the theme of its next series of notes, inviting UK residents and British citizens abroad to help shape the nation’s currency for years to come.
Entrants can either select one of six suggested themes, ranging from “architecture and landmarks” to “innovation” or decide to be, well, innovative, and go completely off piste.
New car sales in the UK rose 6.7% year-on-year in June to 191,316 units, the best figures for the month since 2019. A quarter of all of June’s sales, or 47,354, were electric.
New petrol registrations fell 4.2% and diesel volumes gained only 0.2%, suggesting that combined share of the market was 51.6%. Total electrified vehicle registrations achieved a 48.5% market share.
Tesla (TSLA), Kia, Volkswagen (VOW.DE) and Nissan (NISA.F) all featured in the top-10 bestsellers. But which models, and in what order? Read our story to find out.
Ever fancied living by the sea? A modern apartment overlooking the bay, perhaps? Or how about a large, traditional home with easy access to the beach for your morning dip? Whatever your taste, it could be a costly move. Then again, it might not be as expensive as you think. It all comes down, of course, to location: Britain’s priciest and most affordable seaside property hotspots
With tax-free monthly prizes ranging from £25 to a eye-popping £1 million, premium bonds are a unique and popular choice of investment for British savers.Instead of an interest rate they have an annual prize rate, which will stand at 3.6% from August, when the draw is expected to deliver more than 6 million tax-free prizes worth over £396m. Find out more by clicking here:What are premium bonds and what are the odds of winning?
Tariffs will be the main focus for investors in the coming week, with US president Donald Trump’s deadline for the resumption of sweeping duties coming up on 9 July.
In the UK, the property market will be in sharp focus Monday morning (7am) as Halifax releases its closely-watched house price index. Closing the week will be industrial and manufacturing data for May, with economists predicting a swing to growth from April’s monthly contractions. May’s GDP figures will be released too.
There are also a number of major companies due to report too.
Shell (SHEL.L) will kick off the week’s company reporting, with the oil major due to update on its second quarter performance on Monday.
Investors will be looking at TSMC’s (2330.TW, TSM) latest monthly sales figures, given the company is the world’s largest contract chipmaker, helping to give a sense of demand in the sector.
In the world of retail, investors will be keeping an eye on results from Levi Strauss (LEVI) to see how the jeans brand is navigating tariff uncertainty.
Back in the UK, Vistry (VTY.L) will be in the spotlight, with investors hoping the housebuilder’s troubles are behind it after issuing three profit warnings towards the end of last year.
Given Jet2 (JET2.L) has already provided some guidance on performance for the year in a trading update, the focus will be on the travel company’s outlook for the year ahead.
They’re back. And if the first reviews are anything to go by, they’re sounding as fresh as they were in their 90s heyday. I’m talking of course about Oasis, who took to the stage in Cardiff last night after a 16-year hiatus. They happen to be this old hack’s favourite band, so it’s a great excuse for me to put them in the spotlight.
Here’s one of their monster hits from debut album Definitely Maybe, performed during their iconic 1994 Glastonbury set. Enjoy!
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