FINANCIAL NEWS TODAY

1. Markets Rally as Starmer Backs Reeves

UK financial markets responded positively when PM Keir Starmer publicly supported Chancellor Rachel Reeves, easing concerns over fiscal policy. The pound strengthened, UK gilt yields fell, and the FTSE 100 rose—especially among banks and retailers. This followed data showing strong Services PMI growth in the UK and a robust U.S. labor market report with 147,000 jobs added in June, reinforcing investor confidence theguardian.com.

2. EU Rejects UK Bid to Join Pan‑Euro‑Mediterranean Convention

The EU has blocked the UK’s proposal to join the PEM trade convention, which would have simplified supply chains by allowing tariff-free sourcing across Europe and North Africa. Brussels argues UK entry risks tariff loopholes and insists on full implementation of the Windsor Framework first reddit.com+3ft.com+3reddit.com+3.

3. M&S CEO Slams Labeling Rules as ‘Bureaucratic Madness’

Stuart Machin, CEO of Marks & Spencer, criticized Windsor Framework rules requiring “Not for EU” labels on thousands of products and additional checks on hundreds more. Despite streamlined transition checks, he called for a binding veterinary (SPS) agreement to reduce cost and complexity ft.com+2thetimes.co.uk+2theguardian.com+2.

4. Summit Reset Smooths Trade, Fisheries & Security Ties

In May’s UK–EU summit, leaders agreed to a major reset: simplifying agri-food checks, extending fishing access to EU vessels until 2038, granting UK firms access to the €150 bn EU defence fund, and enabling e‑gate access and pet passport ease—with a projected £9 bn economic boost by 2040 wsls.com+11eureporter.co+11theguardian.com+11.

5. Business Response: Optimism Amid Criticism

The trade and defence reset is seen by many businesses and unions as a positive step—“a new era,” improving supply chains and lowering costs—while hardline Brexit advocates denounce it as a betrayal of sovereignty thesun.co.uk+1tradingview.com+1.

6. Youth Mobility, e‑Gate & Security Measures Progress

The reset also includes initiatives for youth mobility schemes, e‑gate travel access for UK passport holders, and deeper cooperation on security (e.g., facial recognition sharing), reflecting growing integration beyond pure trade alignment eureporter.co+6aljazeera.com+6tradingview.com+6.

7. UK–US Tariff Agreement Advances Brexit Strategy

Separately, the UK and U.S. are negotiating a tariff deal on cars and steel, aiming to reduce certain duties, although initial proposals include temporarily raising some steel tariffs above 50% reddit.com+15thesun.co.uk+15aljazeera.com+15.

8. Windsor Framework Implementation Spreads Confusion

Despite reforms, implementation of the Windsor Framework has faced hurdles. Northern Ireland retail groups report lingering administrative burden, such as labelling and supply chain issues, signaling that further regulatory fine-tuning is needed irishtimes.com+7ft.com+7thetimes.co.uk+7.

9. Renewable Energy & Carbon-ETS Cooperation

The latest reset includes alignment of UK and EU carbon emissions trading systems, and cooperation in offshore energy markets. Analysts estimate this could yield savings of up to €44 bn for consumers and developers across the North Sea region through improved green energy integration bbc.com.

10. Brexit’s Impact Still Felt—Food Price Inflation & Trade Decline

Long-term effects persist: SNP-backed research suggests post-Brexit food price inflation was ~25% by early 2023 (versus ~17% under EU membership), while academic studies document immediate and continued drops in goods trade between the UK and EU firm