Time to wrap up…

Former UK prime minister Liz Truss has claimed that “a reckoning” is coming for central banks in the UK,, US and the eurozone.

Truss also backed Donald Trump’s attempts to exert greater control over the US Federal Reserve, telling Bloomberg’s Odd Lots podcast it was wrong that unelected central bankers could thwart elected politicians.

Trump’s bid to shake up the Fed faces a legal battle, though – Federal Reserve governor Lisa Cook has filed a lawsuit claiming the US president has no authority to fire her.

But there was good news for the Trump White House today – US economic growth was faster than expected in April-June. The economy grew at an annual rate of 3.3% in April-June, lifted by investment in computer hardware for AI systems.

Tesla is still paying the price for Elon Musk’s brush with politics. Its sales across Europe tumbled by 40% in July, at a time when Chinese rival BYD is growing its market share.

The power generator Drax has revealed it is under investigation by the City watchdog over “historical statements” made about the sourcing of wood pellets for its biomass power station,, knocking its shares down almost 7%.

Stocks have opened calmly on Wall Street, despite some disappointment with Nvidia after its financial results last night.

The S&P 500 share index has dipped by just one points, or 0.026%, in early trading while the tech-focused Nasdaq index is 0.2% higher.

Nvidia’s shares have dropped by around 2% in early trading, after it missed forecasts for data center revenue but also beat expectations for adjusted earnings per share.

Overall, revenues were up 56% compared with a year ago, which might calm concerns that the AI boom was fading.

Kathleen Brooks, research director at XTB, reports that there is disappointment that Nvidia didn’t report any sales of its H20 chip to China last quarter, even though China export restrictions were eased.

Brooks adds:

Ultimately, the market does not know how big the China market is for Nvidia, or the impact of the Chinese government encouraging a move away from Nvidia’s chips, especially for government systems.

Thus, this earnings report does not give us too much information on future sales growth to China, and it also fails to deliver what analysts want to know: the potential sales growth for Nvidia’s chip that has been designed specifically for the Chinese market.

Over in the US, economic growth last spring was stronger than first estimated.

The latest assessment of US GDP, just released, shows the economy expanded at an annualised rate of 3.3% in April-June, up from the initial estimate of 3% growth.

That confirms that the world’s largest economy returned to growth after shrinking by 0.5%/year in January-March, when a surge of imports dragged down GDP.

The US Bureau of Economic Analysis reports that the upturn in real GDP in the second quarter primarily reflected a downturn in imports and an acceleration in consumer spending that were partly offset by a downturn in investment.

Today’s revision is due to the BEA lifting its estimate for investment and consumer spending in the last quarter, though this was partly offset by a downward revision to government spending and an upward revision to imports.

Back in the UK car industry, Lotus has said it plans to cut 550 jobs in Britain.

The job cuts will affect almost half the 1,300 staff at the company’s UK headquarters in Hethel, Norfolk.

Lotus put some of the blame on Donald Trump’s trade war, saying:

“We believe this is necessary in order to secure a sustainable future for the company in today’s rapidly evolving automotive environment, which is seeing uncertainty with rapid changes in global policies including tariffs.

“The brand remains fully committed to the UK, and Norfolk will remain the home of the Lotus’ sports car, motorsports and engineering consulting operations.

“It is actively exploring future growth opportunities to diversify Lotus Cars’ business model, including through third-party manufacturing.”

Back in June, there were reports that Lotus was planning to end production of its sportscars in the UK. But after holding meetings with the government, Chinese owner Geely insisted it had no intention of shutting its Norfolk factory

Eleven people, including former directors of Entain, the gambling company that owns Ladbrokes and Coral, have been charged with offences including bribery, fraud, cheating the public revenue, tax evasion and perverting the course of justice.

The Crown Prosecution Service said this morning that it had authorised the prosecution of 11 individuals for seven offences, in relation to the provision of gambling services in Turkey between 2011 and 2018.

Those charged include Kenny Alexander, the former chief executive of Entain, its former chairman, Lee Feldman, former legal director Robert Hoskin, and James Humberstone, who held several roles with the company.

Ten of the individuals were charged with offences allegedly committed between 2011 and 2018, while one person was charged for an offence relating to the investigation by HMRC.

Richard Las, director of HMRC’s Fraud Investigation Service, said:

“This has been a complex and international investigation. These are serious charges that relate to conspiracy to defraud, bribery, cheating the public revenue, evasion of income tax and perverting the course of justice among others.

“We remind everyone that proceedings are now active and we won’t be adding anything further.”

Professor Costas Milas, of the Management School at the University of Liverpool, is very troubled by Liz truss’s comments about central banks and the conduct of monetary policy.

Prof Milas tells us:

Clearly, Trump wants to take full control of US monetary policy and is not shy of saying so. Is it the case of Liz Truss advocating a similar scenario for the UK?

More worryingly, Liz Truss needs to explain how to go about that. In the US, Trump is forcing Fed Governor Lisa Cook out of the Fed with a series of unproved (so far) accusations, at the same time while giving a “signal” that he will follow similar tactics with the remaining Fed Governors.

Is former PM Liz Truss advocating a similar strategy to be pursued by Sir Keir Starmer, or something else in order to bring monetary policy back in the hands of the UK government?

Keir Starmer enjoyed a boost from the rural community during the 2024 general election after he and environment secretary Steve Reed went on tour of the farming conferences and other countryside events to assure those in attendance that they understood their struggles.

But now, that support has evaporated, according to farmers polled by the Country Land and Business Association (CLA).

This is due to fury over the inheritance tax on agricultural assets brought in at last year’s budget, which is projected to put some farms out of business when they are passed on.

A survey of 490 farmers and landowners by the rural business group puts Reform UK (36%) just behind the Conservatives (38%) in farmer support, with Labour attracting 0%.

“The Treasury says these reforms will barely touch rural Britain,” CLA president Victoria Vyvyan said, adding:

“Our polling shows they will force hard choices on farms that have sustained communities for generations – selling land, laying off workers, shelving future plans.

“Rural Labour MPs can see what’s coming. They know it will drain the life from the countryside and strip away the trust of the people who sent them to Westminster.

“If they support it, their voters won’t forget.”

With UK food inflation now hitting 4.2%, we would like to hear from people on how they feel about food inflation and if it’s affected their shopping habits….

Former UK prime minister Liz Truss is backing Donald Trump in his fight with the Federal Reserve.

Truss has told Bloomberg’s Odd Lots podcast that it is wrong that unelected central bankers can undermine (as she sees it) elected politicians.

Truss, who was briefly prime minister in September and October 2022, said:

“I think the Bank of England needs to be accountable to politicians. I think the current system doesn’t work. This is why I’m very sympathetic to what Donald Trump is saying about the Fed.”

In the interview, Truss explains that people who owned assets and capital had done very well from the easy money created by the Bank of England (BoE) since the financial crisis, while that loose policy also made it hard for young people to buy homes.

Given the importance of monetary policy of setting the allocation of assets within society, she argues that it’s wrong that people who make those decisions aren’t accountable to the electorate.

She says:

“It’s also very difficult, as I found as prime minister, to combine fiscal and monetary policy if you don’t hold one of the levers. So, I think it’s got to change.

I think there is a reckoning coming for the central banks, not just in Britain but also in the United States, also the ECB.

The current system does not work.

Truss, who lost power after her mini-budget spooked the financial markets, crashing the pound and driving up borrowing costs, also claimed the BoE had “sabotaged” what she tried to do because she had been a critic of central banks, and wanted the Treasury to have a larger role setting the Bank’s mandate.

“They didn’t like their power being challenged.”

Truss has previously blamed the Bank of England for failing to anticipate the market consequences of her budget. Governor Andrew Bailey has rejected that criticism, pointing out that the Bank used its intervention tools to stabilise the bond market and protect pension funds.

In her Bloomberg interview, Truss argues that democratically elected leaders shouldn’t “cowtow”, criticises the “failing economic orthodoxy” and warns that Britain is heading for a “very, very serious crisis.”

Truss, who lost her parliamentary seat in last year’s general election, says the UK now faces an “economic doom loop of higher taxes, lower growth, higher debt, and it’s very difficult now to see the political way out of that.”

Finland’s central bank chief has warned that President Donald Trump’s attacks on the US. Federal Reserve have a significant impact on the financial markets and the world economy.

Olli Rehn warned in a speech this morning that the Fed’s independence has remained an inviolable principle since the 1980s, but was now under attack, Reuters reports.

Rehn explained:

“Now, however, this principle is wobbling badly. This could have substantial, global knock-on effects on both the financial markets and the real economy.”

Rehn’s comments follow Donald Trump’s attempt to fire Federal Reserve governor Lisa Cook over unconfirmed allegations of mortgage fraud; Cook is refusing to step down, and pledging to sue the Trump administration.

Trump has also repeatedly criticised the Fed, and its chair Jerome Powell, for not cutting US interest rates.

Economic growth in Switzerland has slowed, as the country braces for a bruising hit from Donald Trump’s trade wars.

Switzerland’s GDP adjusted for sporting events increased by just 0.1% in the second quarter of this year, down on the 0.7% gorwth recorded in January-March.

Switzerland’s State Secretariat for Economic Affairs (SECO) warned that new tariffs on sales to the US will hurt growth, saying:

After the above-average growth seen in the previous quarter, the anticipated correction has now occurred. Industrial value added and exports declined sharply, whereas the services sector delivered broadbased growth.

An updated economic scenario from SECO shows that, as a result of higher US import tariffs, the Swiss economy is likely to grow more slowly than previously expected, particularly in 2026.

Trump has set a 39% tariff on Swiss exports to the US, leaving the country scrambling to agree a better trade deal.

Shares in power generator Drax have tumbled by 10% after it revealed this morning it is being investigated by the City watchdog.

Traders drove Drax’s share price down to 630p in early London trading, down from 703.5p last night, following the news that the FCA is probing whether its recent annual reports comply with UK Listing Rules.

As covered earlier (see 7.18am post for more details), the investigation appears to centre on Drax’s statements regarding the sourcing of the biomass it uses in its wood-burning power station.

Back in the car sector, Ford has today become the first manufacturer to be awarded the UK’s full electric car grant of £3,750, cutting the cost paid by consumers.

Two Ford models, the Puma Gen-E and e-Tourneo Courier, now qualify for the grant, the Department for Transport has announced.

They are the first to benefit from the full £3,750 subsidy. Another 26 models now get the smaller grant, which knocks £1,500 off their price.

The scheme is meant to make it cheaper and easier to own an electric car.

Transport Secretary Heidi Alexander said:

We’re putting money back in people’s pockets and making it easier and cheaper for families to make the switch to electric, by delivering discounts of up to £3,750 on EVs.

Our measures are driving competition in the UK EV market, boosting economic growth and supporting jobs and skills as part of our Plan for Change.

Newsflash: UK energy producer Drax is being investigated by the Financial Conduct Authority (FCA).

Drax has told the City that it learned on Tuesday that the City watchdog had begun an investigation into “historical statements regarding Drax’s biomass sourcing and the compliance of Drax’s 2021, 2022 and 2023 Annual Reports with the Listing Rules and Disclosure Guidance and Transparency Rules.”

Drax, which operates a wood-burning power station in North Yorkshire, added that it will cooperate with the FCA’s investigation.

The FCA has confirmed that it has opened an investigation, without giving more information.

The company has faced pressure to disclose full details of its tree consumption; last year it agreed to pay £25m for submitting inaccurate data on the sourcing of wood pellets.

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Tesla’s European sales slump has continued, as it faces rising competition in the battery-powered electric car market.

New sales figures released by the European Automobile Manufacturers Association (ACEA) this morning show that Tesla shipments tumbled 40% last month. The company sold 8,837 vehicles across the European Union, the EFTA trade block and the UK in July, down from 14,769 in July 2024.

The sales slump, which began at the start of this year, continued despite the recent revamp of Tesla’s signature Model Y, indicating that the backlash against CEO Elon Musk’s political views could still be hurting the company.

Musk’s recent break-up with Donald Trump hasn’t, yet, revived the company’s fortunes. July’s 40% sales fall was worse than the total for 2025 to date, which are down 33% for the January-July period.

Tesla also faces rising competition, particularly from Chinese manufacturers. BYD, the Shenzhen-headquartered carmaker, more than tripled its sales year-on-year in July, up from 4,151 a year earlier to 13,503 last month, a rise of 225%.

This gave BYD a 1.2% market share, higher than Tesla’s 0.8%.

BYD, which overtook Tesla for European sales back in April, recently launched its Dolphin Surf EV car, which is priced from £18,650 in the UK.

ACEA also reports that in the first seven months of 2025, 1,011,903 new battery-electric cars were registered, accounting for 15.6% of the EU market share.

Hybrid-electric car registrations proved more popular, though, with 2,255,080 units sold across the EU so far this year. This was driven by growth in the four biggest markets: France (+30.5%), Spain (+30.2%), Germany (+10.7%), and Italy (+9.4%). Hybrid-electric models now account for almost 35% of the total EU market.

Overall, new car sales in Europe rose 5.9% in July, to 1.085 million.

The agenda

• 10am BST: Eurozone confidence data

• 1.30pm BST: US Q2 GDP (second estimate)

• 1.30pm BST: US weekly jobless claims