Business news live: Tesla shares sink after Elon Musk warning and Keir Starmer to sign new £6bn trade deal

The EU and the US appear close to confirming a trade deal at last, just a week before the deadline of 1 August brought with it a blanket 30 per cent tariff on European exports to the States.

That rate will be halved under the current plans – still higher than the UK’s 10 per cent deal – but some products such as medical devices will be lower, the Guardian reports.

Alcoholic spirits could also be given a lower tariff in time, but car manufacturers face a far bigger rate than they had previously for selling to the States.

The European Central Bank is set to pause cuts to interest rates to allow for time to take stock of the uncertainty caused by these tariffs, with rates already down to 2 per cent.

High street retailer River Island is facing the immediate threat of closing down, with the company telling creditors it will run out of money by the end of August.

The firm has put a proposal forward to save itself in the short term which needs the agreement of three-quarters of creditors to proceed.

That would see River Island close 33 stores, cut rents on even more and write off some of its debts, the Telegraph has reported.

If it fails to gain the agreement, the company “will not be able to continue trading as a going concern” and “would be subject to administration or other insolvency proceedings”, said the proposal seen by the Telegraph.

River Island needs £10m in the next few weeks and £50m by the end of the year to meet its needs as a going concern.

UK car manufacturing endured a tough first half of the year, with production levels down to the lowest in more than 70 years outside of Covid.

Car manufacturing declined by 12 per cent to 417,200 units between January and June, figures from the Society of Motor Manufacturers and Traders (SMMT) show.

That’s the lowest since 1953 other than in 2020, with tough conditions including the tariff uncertainty playing a big part.

Keir Starmer and India’s Narendra Modi have agreed terms on a trade deal, worth an estimated £6bn in investment to the UK.

Along with economic parts of the agreement, the two will also increase efforts to tackle illegal immigration and organised crime.

Tariffs on UK products exported to India will drop to an average of 3 per cent, from 15 per cent, with products including cars, whisky and cosmetics all seeing their individual rates drop.

Business Secretary Jonathan Reynolds said the investment will “reach all regions and nations of the UK so working people in every community can feel the benefits.

“The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.”

The biggest rail workers’ union has warned that raising the state pension age would be met with protests and direct action.

The Rail, Maritime and Transport union said a government review had sparked fears of a big increase in the pension age.

RMT general secretary Eddie Dempsey said: “The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich.

“Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.”

Tesla shares dropped more than 6 per cent out of trading hours overnight, following on from another disappointing set of financial results.

More than that, though, CEO Elon Musk has warned that the tough times are going to continue

Telsa is in a “weird transition period” he said, given EV grants ending, self-driving regulation and more.

“Does that mean we could have a few rough quarters? Yeah, we probably could have a few rough quarters … it’s not guaranteed but plausible,” he said.

Tesla and its investors have high hopes for self-driving robotaxis pushing future profits but the share price is down 17 per cent in 2025.

JD Wetherspoon has announced a significant surge in its recent sales, driven by the exceptional performance of Guinness and a notable rebound in breakfast demand.

The pub group, which operates 794 establishments across the United Kingdom and Ireland, reported a 5.1 per cent increase in like-for-like sales for the three months ending 20 July, compared to the previous year.

Sales volumes have now surpassed pre-pandemic levels after earlier concerns about a sluggish recovery across its estate.

Beyond breakfasts, robust draught sales were highlighted, with Guinness proving particularly popular, alongside growth in wine and an improvement in spirits.

This surge in demand for the Irish stout aligns with consistent reports from Guinness maker Diageo, which has noted its rapid growth in popularity.

The FTSE 100 is up 0.45 per cent this morning, a sharp rise carried along with most of Europe’s stock markets.

That’ll be in part because the US-EU trade deal appears close now with a 15 per cent base tariff.

In the UK companies index, several financial firms are doing well today including Barclays and HSBC, but Lloyds have dropped after this morning raising the interim dividend.

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