Retail sales in the 20 nations sharing the euro fell by 0.5% on the month
International News via Reuters:
Retail sales growth in the euro zone slowed further in July, raising doubts that healthy domestic consumption could continue to offset a hit to economic growth from U.S. tariffs, data from Eurostat showed on Thursday.
Retail sales in the 20 nations sharing the euro fell by 0.5% on the month, underperforming expectations for a 0.2% monthly drop, while sales were 2.2% higher than a year ago, below the 2.4% rise seen in a Reuters poll of economists.
Euro zone growth was unexpectedly strong in first half of the year as household consumption picked up and economists have been debating whether this increase was sustainable given the hit to sentiment from tariffs and economic turmoil elsewhere.
Reporting by Balazs Koranyi; Editing by Toby Chopra
Sterling traded a shade higher at $1.3455, heading for a third weekly decline
International News via Reuters:
The pound drifted on Thursday, in what has been its most volatile week in months, as investors grow increasingly nervous about Britain’s finances and the government’s ability to keep them under control, which has rattled the bond market too.
Sterling traded a shade higher at $1.3455, heading for a third weekly decline. The pound was also steady against the euro, which held at 86.67 pence.
Yields on 30-year British government bonds, or gilts, briefly shot up this week to their highest since 1998, swept along in a rout that has punished the long-dated debt of most major economies.
Typically, higher yields would support the pound. But when that increase in borrowing costs is the product of concern about the outlook for inflation, rather than that of optimism that longer-term growth looks robust, the currency suffers.
Bank of England Governor Andrew Bailey on Wednesday suggested that British interest rates would continue to fall, but there was far less certainty about the pace of cuts.
“There is now considerably more doubt about exactly when and how quickly we can make those further steps,” Bailey told a hearing of the House of Commons’ Treasury Committee, reiterating his comments after August’s rate cut.
The derivatives market shows traders are assuming the BoE will almost certainly cut rates at its meeting on September 18, but the picture beyond that is fuzzier.
“There is just an 18% chance of a cut in November, a month ago there was a 67% chance of a cut. Thus, UK yields may be able to reverse recent gains, but we still expect UK yields to remain higher than our peers’ yields for some time,” Kathleen Brooks, research director at XTB, said.
“With uncertainty likely as we lead up to the budget in November, we believe that sterling peaked in July at $1.38, and may trade sideways below $1.35 in the short term.”
Finance minister Rachel Reeves presents her autumn budget on November 26. Reeves is under pressure to keep the government’s finances on track and has vowed to keep a grip on spending to help bring down inflation and borrowing costs.
Bond investors are concerned. Britain has the highest borrowing costs among the Group of Seven advanced economies. A 10-year gilt yields 4.74%, compared with 4.2% for an equivalent U.S. Treasury and 1.6% for low-yielder Japan.
Reporting by Amanda Cooper; Editing by Alex Richardson
Deputy Prime Minister Ebba Busch said the VAT cut would be temporary
International News via Reuters:
The Swedish government plans to halve value-added tax (VAT) on food to 6% in its 2026 budget bill to help boost households and the wider economy, Prime Minister Ulf Kristersson told a press conference on Thursday. Growth has stalled amid tariff related uncertainty, with households and businesses holding hesitating to spend despite a series of rate cuts.
Deputy Prime Minister Ebba Busch said the VAT cut would be temporary, between April 2026 and December 2027.
“This is a reform that will have the greatest effect on households that have had the toughest time,” she said on social media X.
The right-wing coalition government said last week its budget bill for 2026, an election year, will include 80 billion crowns of unfinanced measures to boost the economy.
The government, which sees 0.9% GDP growth this year and 3.0% in 2026, will submit the budget bill to parliament on September 22. Analysts have said it is likely to contain income and corporate tax cuts as well as unfinanced spending.
Reporting by Anna Ringstrom and Simon Johnson, editing by Stine Jacobsen
The company now sees operating profit towards the lower-end of the expected range of 449 million and 496 million pounds for the year ending March 2026
International News via Reuters:
British low-cost airline and travel firm Jet2 tempered its profit outlook on Thursday as visibility was muddled by travellers booking tickets closer to departure, sending its shares plummeting and dragging down those of its European peers.
The company now sees operating profit towards the lower-end of the expected range of 449 million and 496 million pounds ($606.6 million and $670.1 million) for the year ending March 2026, as seats for the summer and winter remain to be sold.
It reported operating profit of 446.5 million pounds last year. Geopolitical disruptions and extreme weather have become pain points for travel firms, as vacationers are choosing to book hotels and flights closer to their departure dates to avoid unforeseen expenses.
British inflation also looks set to hit 4% this month, likely forcing Britons to curb discretionary spending like vacations.
Jet2 said on Thursday that average holiday prices are rising slightly, and the company plans to maintain “attractive pricing” to lure customers.
Jet2 added it was exercising “capacity discipline in a less certain consumer environment” as the later booking trend has become more pronounced since its July update, and its flight-only booking options have become “increasingly attractive”.
The company, whose “Nothing beats a Jet2 holiday” advertisement has become a viral sensation on social media platforms, reduced its seats on sale to 5.6 million from 5.8 million for the upcoming winter season.
“Although we are currently operating in a difficult market, we have a proven business model,” CEO Steve Heapy said in a statement.
Jet2 shares fell as much as 25% to 1,209 pence on Thursday. If losses hold, the stock will record its worst one-day percentage fall since May 2020.
“It appears to us that flight-only volumes and package holiday pricing are holding up, but at the expense of flight-only pricing and package holiday volume growth,” analysts at Panmure Liberum said.
Jet2’s European rivals Ryanair, EasyJet, IAG, Wizz Air and TUI were also down between 2% and 4%.
Ryanair – Europe’s largest low-cost carrier – said in August that bookings were strong, and the company kept its financial guidance unchanged.
($1 = 0.7402 pounds)
Reporting by Yamini Kalia and Pushkala Aripaka in Bengaluru; Editing by Mrigank Dhaniwala and Joe Bavier
Along with other banks in Britain, Lloyds has reduced its high street presence, saying in January it would shut 136 branches as more customers take up digital banking
International News via Reuters:
Around 3,000 people at Britain’s Lloyds Banking Group, judged to be among the bottom 5%, will find themselves considered for possible dismissal, a source familiar with the matter told Reuters, as CEO Charlie Nunn pursues cost cuts.
Lloyds expects about half that number will lose their jobs unless their work improves, the source said, declining to be named, while adding there was no fixed target for layoffs from its 63,000-strong workforce.
Along with other banks in Britain, Lloyds has reduced its high street presence, saying in January it would shut 136 branches as more customers take up digital banking, although it said that would not directly result in job cuts.
Economic uncertainty has also made workers cautious about changing jobs. Lloyds employees have been leaving at an annual rate of 5% each year compared to an average of closer to 15% historically, according to the Financial Times newspaper, which first disclosed the performance shake-up.
U.S. banks have typically been the most aggressive in sacking what they regard as the least productive of their workforce, especially when profitability dwindles.
A Lloyds spokesperson told Reuters in an emailed statement that it was transforming its business and “striving to embed a high-performance culture”.
“We know change can be uncomfortable, but we are excited about the opportunities ahead as we propel forward to achieve our growth ambitions and deliver exceptional customer experiences,” the spokesperson said.
The Financial Times reported managers would place underperformers on “structured support” plans and that they would be dismissed if that did not lead to improved performance.
Reporting by Ananya Palyekar and Rishabh Jaiswal in Bengaluru and Iain Withers in London; Additional reporting by Nilutpal Timsina; Editing by Mrigank Dhaniwala, Janane Venkatraman and Barbara Lewis
OBA urges the public to weigh up the effectiveness of the PLP government
Statement By Scott Pearman, OBA MP for Paget East, Constituency 22:
As the Summer draws to a close, and we enter the autumn season of party political conferences – with the OBA’s party conference in September and the PLP following after in October – here are two questions for you to ponder…
First, are you better off than you were eight years ago? Second, is Bermuda better off than it was in 2017?
2017 was, of course, the year when our current Premier David Burt won his first general election as PLP Leader. Way back in July 2017.
It is true that David Burt had a helping hand in some disastrous decision-making before 2017. Don’t forget that our outgoing Premier was once the Junior Finance Minister under then Premier Paula Cox. That was more than a decade ago in 2013. Yet 2017 was the year when David Burt finally seized the helm of our ship of state by becoming Bermuda’s Premier.
With David Burt’s repeatedly confirming to Parliament that he will step down as Premier in October 2026, how do his past eight years look to you?
Is our Island better off for his leadership? Are you better off?
BEWARE THE VICTORY LAP
It seems slightly odd that Premier Burt keeps telling us he is leaving, but then – in the very same breath – declares he will remain as the Premier until the PLP Party Conference in October 2026? That’s over a year away.
Students of politics may remember British PM Harold Wilson’s quote: “a week is a long time in politics”. If one week is a long time, doesn’t 14 months seem exceedingly long for a victory lap? What a tight grip David Burt must have on his Progressive Labour Party if he – and he alone – can dictate when he steps down.
Sticking with famous quotes, this next one may inform this circumstance. It was a Hall of Fame baseball pitcher (Christy Mathewson of the old New York Giants, since you asked) who once remarked: “You can learn little from victory. You can learn everything from defeat.” Wise words.
Beware the victory lap Premier Burt. Now that people know you are leaving, some may seek to hasten your departure. And others will naturally have cause to reflect, and to judge a departing Premier by his record.
Take Premier Burt’s record on tourism for example. In the red corner, the OBA’s brief stint as the Bermuda Government saw the major development of new Hamilton Princess Marina and Beach Club. And several splendid new hotels opened, including The Loren, St. Regis, and Azura. Bermudians received an award-winning new airport, built without adding to the people’s debt (the PLP’s plan, if you remember, was to tack on yet another $500 Million to our already sky-high debt). And under the OBA, the eyes of the World focused on Bermuda with the massive success of the America’s Cup.
What are the PLP’s tourism wins under Premier Burt?
Flora Duffy’s spectacular triathlon victory is certainly one for the record books, although some may rightly feel Dame Flora deserves the credit for that beauty. The nifty renovation of Aunt Nea’s Inn in St. George’s deserves special mention. Beyond that, well, you be the judge…
A DEBT OF GRATITUDE
For those who feel like Bermudians are treading water in a rising tide, there is some positive news coming soon. Don’t let your eyes glaze over, but let’s talk for a moment about the Corporate Income Tax (CIT). The predicted tax take from our new CIT is due in soon, as my OBA colleague and Shadow Finance Minister Douglas De Couto commented elsewhere.
This is the first year of CIT payments, so the numbers should be healthy, and possibly robust. Yet the promised tax credit system still seems rather late to arrive? With the Tax Reform Commission’s Report having just been published, will Premier Burt deliver what is needed? And we would be wise to remember that those paying the CIT are international businesses: they could easily choose to pay the tax elsewhere.
You can be sure the Premier will be out there seeking to take credit for the taxes paid by our friends in IB. Yet instead of another victory lap, the Premier could and should do the one thing that would actually earn him a place in Bermuda’s history. He should use this singular opportunity to hack away at our stifling public debt, which remains above $3 Billion. Will the Burt Administration make any real progress on the very real issues facing Bermudians today, including our Bermudians employed in the IB sector?
The next generation of Bermudians would then have a fighting chance, in a global rising tide that may not recede anytime soon…
Scott Pearman is the MP for Paget East (Constituency 22) and OBA Shadow Minister for Legal Affairs. He can be reached at spearman@oba.bm.
The observation deck for the iconic landmark has been closed for safety reasons since January
The observation deck from one of Bermuda’s most iconic landmarks has been off-limits to visitors since January.
As efforts continue to bring Gibbs Hill Lighthouse back to life, Julie Matthews-Borchardt looks at the steps underway to restore this historic — and much-loved — tourist attraction.
The new app, available globally on devices running iPadOS 15.1 and later, opens directly to a Reels feed — a nod to what Instagram calls ‘lean-back entertainment’
International News via Reuters:
Instagram launched a dedicated iPad application on Wednesday, placing its short-form video feature Reels at the center of the redesigned interface as parent company Meta intensifies competition with TikTok.
The app addresses longstanding complaints about Instagram’s iPad experience, which previously required using a scaled-up iPhone version with blurry visuals and missing features.
The new app, available globally on devices running iPadOS 15.1 and later, opens directly to a Reels feed — a nod to what Instagram calls ‘lean-back entertainment’ — with Stories pinned at the top and one-tap access to messaging.
Reels, which accounts for more than 20% of time users spend on Instagram, represents a central pillar in Meta’s strategy to boost engagement across its platforms in the competitive short-form video market.
The iPad app adds a Following tab with multiple viewing options, including recommended posts, content from mutual followers and chronological feeds. Users can reorder feed options to prioritize preferred content.
The interface supports multitasking layouts that show messages and notifications side by side, and lets comments expand without interrupting video playback.
The app is available for free on Apple’s App Store. Instagram said an optimized version for Android tablets will be released soon.
Reporting by Kritika Lamba in Bengaluru; Editing by Tasim Zahid
Campaigners to present call for Nature Reserve status to Government tomorrow
The campaign to safeguard Southlands National Park continues to grow in momentum, with more than 5,000 people signing a petition to halt development in the greenspace.
Bermuda Broadcasting understands that tomorrow, Thursday, September 4, the petition will be handed to Government on the steps of Sessions House at 1:30 pm. Public Works and Environment Minister Jache Adams, is set to receive it on behalf of the Government.
According to the petition description: “Southlands National Park Reserve—affectionately known as “The Green Lung of Bermuda”—is a sanctuary of biodiversity and natural beauty, offering refuge to Bermuda’s wildlife and a tranquil escape for both residents and visitors. Yet, recent and proposed developments along the southern coast and northern woodlands of this cherished reserve are threatening its very essence.”
“The ongoing expansion has already led to significant habitat loss, endangering native and endemic species that rely on this ecosystem to survive.”
Today, Nekorrah commented quote: “Southlands means something different to everyone. For some, it’s a peaceful refuge; for others, a space for families to connect with nature. But for all of us, it represents Bermuda’s natural heritage — and we’re dangerously close to losing it.”
Campaigners are urging the Government to immediately stop development plans within the park and move to give Southlands Nature Reserve status, describing it as both an environmental and moral obligation to future generations.
The hurricane, with maximum sustained winds of 120 kph (75 mph) and higher gusts, was located about 165 km (105 miles) off Cabo San Lucas, a popular tourist destination
International News via Reuters:
Lorena intensified into a hurricane off Mexico’s Pacific Coast and could bring life-threatening flash floods as it moves toward the Baja California Peninsula, authorities said on Wednesday.
The hurricane, with maximum sustained winds of 120 kph (75 mph) and higher gusts, was located about 165 km (105 miles) off Cabo San Lucas, a popular tourist destination, the U.S. National Hurricane Center said.
Lorena, a Category 1 hurricane on the Saffir-Simpson scale, is expected to leave heavy rainfall in the Baja California peninsula and “will bring the risk of life-threatening flash floods and mudslides, especially in areas of higher terrain,” NHC said in a statement.
Mexico’s government issued storm warnings and watches for Baja California Sur, home to major tourist destinations such as Los Cabos.
The Mexican national water commission, Conagua, urged residents to take extreme precautions in affected areas, according to its latest report.
Rapid strengthening is forecast through Wednesday night, according to NHC, while a fast weakening is expected later on, with Lorena possibly softening back into a tropical storm by Friday.
The hurricane is moving northwards at a speed of 24 kilometers per hour and its center is expected to move parallel to the west coast of the Baja California peninsula until Thursday night when it should approach the shore.
Reporting by Aida Pelaez-Fernandez; Editing by Louise Heavens, Natalia Siniawski and Mark Porter
Smith and King set out rival visions ahead of party conference
Two OBA constituency neighbours will duel for the party’s top position, after Jarion Richardson announced he would be stepping down earlier this summer.
Ben Smith, who has served as Deputy Leader since 2023, says he plans to lead the Opposition with “a boldness that is needed to change the trajectory of Bermuda and her people.”
While, Robert King, who entered politics after Michael Dunkley’s retirement, winning both the Smith’s North by-election in May 2024 and this year’s general election, pledges to “deliver the determined leadership Bermuda deserves.”
Mr. Smith is currently the Shadow Minister of Education and Sport, and MP for Constituency 8, Smith’s South.
The party once described him as a “son of the soil” and “passionate about a better Bermuda for all, regardless of race, social status or gender.”
Outside of politics, he’s also Bermuda’s national swimming coach and co-owner of Nonna’s Kitchen.
Mr. Smith says Bermuda needs an Opposition that is more than a watchdog – “a team that develops real solutions, communicates them clearly, and earns the confidence of the public.”
He says a stronger Opposition would focus on three priorities: political readiness with costed policies ready to roll out, deeper community engagement, and diverse representation.
He argues the Opposition cannot simply wait for voters to “vote for change,” but must prove its readiness now.
Mr. Smith adds: “I believe in a stronger, smarter, and more connected OBA. A party that is prepared to govern is a party that can transform Bermuda.”
Mr. Smith also acknowledged that trust in politics has eroded. If elected leader, he pledges to introduce a Public Accountability Pledge for MPs, including regular public reporting, open forums, and clear policy timelines.
He has also called for televising House of Assembly debates, saying Bermudians deserve to see their MPs at work.
Meanwhile, Robert King says “trust in politics has been broken,” and pledges to serve full-time as Opposition Leader if elected. Adding: “Bermudians don’t need more empty pledges – they need leadership that works full-time, rebuilds trust and delivers results.”
The party describes him as a seasoned criminal justice professional with more than 30 years’ experience working with at-risk youth and vulnerable populations in Bermuda and Canada.
Mr. King has also rolled out a 100-day action plan.
If elected, he says his first steps will be “putting people first” through a series of town halls and a monthly open house from the Opposition Leader’s office.
He also promises a refreshed communications strategy, mentoring for new MPs, professional development for candidates, and building the fundraising and volunteer machinery to win government. That includes creating a Youth Wing and a Women’s Commission within the party.
Mr. King adds, “I will be available, committed and focused on strengthening the OBA and preparing our party for the next election.”
Other conference candidates include Michael Fahy and Scott Pearman for Deputy Leader, and Victoria Cunningham, Geoffrey Faiella, and Jeremy Shrubb for Deputy Chair. William Soares will become Party Chairman by acclamation on September 6th.
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