Key events
Average private rent in Great Britain falls for first time in five years
Average private rents in Great Britain have fallen for the first time in five years as lower mortgage rates helped take some of the heat out of the rental sector, data shows.
Years of above-inflation increases in rents have put the squeeze on many households but the estate agent Hamptons said the average rent on a newly let property fell by 0.2% year on year in July. It was the first annual decline since August 2020, during the height of the Covid pandemic – although this national figure masks wide regional variations.
Rents have risen in recent years owing to a combination of factors. These include demand for rental properties outstripping supply, the pandemic and its fallout affecting how many people live and work, and buy-to-let landlords passing on increases in their costs caused by higher interest rates.
UK firms’ hiring intentions remain at record low amid rising employment costs
Hiring intentions among Britain’s businesses remain at a record low as they grapple with rising employment costs and worry about the economic outlook, with young people hit hardest by the drop in recruitment.
Three separate surveys issued on Monday painted a gloomy picture on hiring activity, pay and business confidence, with claims that bosses were “stuck in limbo” and waiting for greater clarity in the autumn budget.
Only 57% of private sector employers plan to recruit staff in the next three months – down from 65% in autumn 2024 as they deal with the combined £25bn rise in employer national insurance contributions (NICs) that took effect in April and other rising costs, according to the Chartered Institute of Personnel and Development (CIPD).
Another report, from KPMG and the Recruitment and Employment Confederation (REC), showed that recruitment across the UK fell sharply in July, for permanent and temporary jobs. This was often linked to employers’ gloomy outlook, and increased pressure on recruitment budgets.
UK toy sales rise as nostalgic adults turn to Pokémon and Lego
UK toy sales have bounced back as adults increasingly muscle in on the market, snapping up everything from Pokémon trading cards and Lego sets to collectibles and action figures based on movie and TV franchises.
After falling almost 4% in 2024, UK toy sales have risen 8% so far this year, in line with the “strong rebound” enjoyed by the global market, data shows.
While the fortunes of the UK toy industry have for some time been linked to a growing army of “kidults” (buyers aged 12 and over), it is over-18s who appear to have driven the increase in sales in the first half of 2025, data from the market research company Circana suggests.
The firm said that in the UK the fastest growth was in games and puzzles, including Pokémon cards. These are enjoying a fresh wave of popularity among nostalgic adults, helped by social media influencers brandishing their rare finds. Building sets from companies such as of Lego were also flying off the shelves, as were action figures and collectibles.
UK and European shares have made modest gains this morning. The FTSE 100 index is 0.2% ahead at 9,112, up by 16 points.
“The FTSE 100 made a decent start to the trading week as some recent laggards attracted attention from bargain hunters,” says AJ Bell investment director Russ Mould.
The market seems very relaxed ahead of tomorrow’s deadline on US-China trade talks, reflecting the assumption an extension is in the offing and a deal will eventually be reached. While the mood music between Beijing and Washington has improved, there is some risk investors’ confidence proves misplaced.
Inflation, retail sales and industrial production data should offer insight into the health of the US economy after weak jobs figures at the start of August raised the spectre of recession.
Gold prices lost some of their lustre on suggestions the Trump administration might not put tariffs on gold bars after all.
In the UK, employment data will be closely monitored on Tuesday after last week’s Bank of England meeting where the decision to cut rates was unexpectedly on a knife edge and policymakers adopted a hawkish tone.
Martin Sorrell’s digital advertising vehicle S4 Capital confirmed merger talks with private equity – potentially providing a full stop on a buy-and-build venture which has struggled to gain traction after initially generating excitement. The shares are now worth a fraction of what they were at their 2021 peak.
Britain’s biggest chemical plant at risk of closure – report
Britain’s biggest chemical plant is under threat, its owner Ineos has warned, as soaring energy costs have left it battling for survival.
The Olefins and Polymers plant at Grangemouth, in Scotland, which makes products used by hundreds of UK plastic companies, is at risk of closure unless there is a major turnaround in the next two years, Ineos said.
Stuart Collings, who runs the factory, told The Telegraph the site had been hit by higher energy prices and carbon taxes on UK manufacturers, leading to years of financial losses and casting doubt over its future.
He said:
Unless there is a significant turnaround in the next couple of years, then Ineos will have to make a very difficult decision about the future of Grangemouth.
Ineos has had to effectively subsidise the Grangemouth business from profits it makes on other businesses around the world, and has done that for a number of years. That’s the only way we’ve been able to survive.
The plant’s closure would deliver another major blow to Grangemouth after Ineos shut an oil refinery earlier this year with the loss of 400 jobs at the refinery, and up to 5,000 more among its supply chain and contractors.
Sorrell’s S4 Capital in early talks to buy MSQ
Martin Sorrell’s advertising group S4 Capital is in early talks to acquire the rival ad agency MSQ Partners – news that sent its shares as much as 14% higher.
S4 Capital shares are now up 8.4%, valuing the business at £142.7m, but have slumped by 98% since their peak in September 2021 when the company was worth £5bn.
Sorrell, who set up S4 in 2018 following his departure from WPP, said any deal would see it acquire MSQ from its US private equity owners, One Equity Partners. The talks are at a “very preliminary stage” and there is no certainty a deal will be concluded, S4 added.
S4 has been hit by clients cutting marketing spending amid Donald Trump’s tariffs, and a shift towards AI-driven marketing. It lowered its revenue forecast in June as advertising firms face rising pressure to adapt or risk losing major accounts.
Sorrell, who built WPP into the world’s biggest advertising agency during 33 years of dealmaking, was the longest-serving FTSE 100 boss when he quit the ad group in April 2018 after alleged personal misconduct, which he denied.
Teaming up with MSQ would give S4 access to a broader client base spanning the finance, healthcare, and consumer goods sectors. MSQ has more than 250 clients including Unilever, Haleon, P&G and Lego. S4’s clients include Google-parent Alphabet, Amazon and Meta.
The deal discussions were first reported by Sky News on Saturday.
Oxford Nanopore boss to leave in 2026 after 20 years at helm
Gordon Sanghera, chief executive and co-founder of Oxford Nanopore, which develops and sells DNA/RNA sequencing devices, is stepping down.
He is due to leave by the end of 2026, after more than 20 years in the role.
The company’s FTSE 250-listed share price dropped by 2.4%.
A spinout from Oxford University, it produces devices used to identify viruses and spot variants in the genetic makeup of humans, animals and plants. Founded in 2005 by three scientists who met at Oxford University, the company grew out of research by Hagan Bayley, one of the trio, and launched the MinION 10 years later, the world’s first portable sequencing device.
Bayley researched how a tiny hole, or nanopore, in a protein can be used to identify the molecules in DNA that pass through it, in a process compared by Sanghera to “sucking spaghetti really fast”.
I met Sanghera in 2022 for a long chat and a tour of the factory.
Duncan Tatton-Brown, the firm’s chair, paid tribute to Sanghera.
Two decades ago, Gordon co-founded Oxford Nanopore with the bold ambition to transform molecular analysis. He has since led the company’s growth into a global business, built a highly differentiated technology platform and fostered a culture of innovation and collaboration that underpins its success.
These foundations have supported sustained, above-market growth and position Oxford Nanopore well for the future.
Sanghera said “this will be the right time for me to pass the reins to a new leader” and that this would give the board “ample time to identify a successor to ensure a smooth transition”.
European stocks rise ahead of US-Russia talks on Ukraine
European stocks have risen cautiously, while oil and gold prices have fallen further, amid optimism over a potential Ukraine peace deal – ahead of talks between Donald Trump and Vladimir Putin in Alaska at the end of the week.
The FTSE 100 index has turned positive and is trading by 0.3% higher 9,124.
Germany’s Dax and France’s CAC have both edged up nearly 0.2%, while Italy’s FTSE MiB rose by 0.45%.
Brent crude has lost nearly 0.9% to $65.99 a barrel, while spot gold has fallen by 1% after Friday’s rally.
Introduction: Oil and gold prices retreat on Ukraine optimism; Fabergé sold to US investment firm
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Oil and gold prices have retreated amid optimism that there could be progress on Ukraine.
Brent crude is trading 0.7% lower at $66.13 a barrel, while spot gold has fallen by 0.9% to $3,369 an ounce.
Donald Trump said last Friday that he will meet Russian president Vladimir Putin this Friday in Alaska to negotiate an end to the war in Ukraine.
Gold prices slipped as the dollar strengthened and some investors took profits after Friday’s rally.
The White House plans to clarify what an official called misinformation about import tariffs for gold bars, which prompted some industry players to stop deliveries of bullion to the US.
Gold futures hit a record high on Friday on news of US import tariffs on one-kilo bars of gold, according to a ruling on the US customs and border protection service’s website. The ruling referred to cast gold bars form Switzerland, the world’s biggest bullion refining and transit hub, which is now subject to Trump’s import tariffs of 39%.
The White House intends to issue an executive order “clarifying misinformation” about tariffs on gold bars and other specialty productions, an official told Reuters.
It is unclear whether one-kilo and 100 ounce gold bars are classified under a customs code that is subject to higher tariffs.
The owner of Fabergé has sold the luxury brand to the US investment firm SMG Capital for $50m, months after the firm was rocked by protests in Mozambique.
Gemfields, a miner of coloured gemstones, said it has signed an agreement to sell its entire stake in Fabergé to SMG, which is controlled by the technology investor Sergei Mosunov. Fabergé sells jewellery and objets d’art.
Gemfields put the company up for sale in late December, when it faced violent unrest at its ruby mine in Mozambique following disputed election results, which forced it to temporarily pause mining operations.
Fabergé is known for its jewelled Easter eggs. It first created 50 Easter eggs for the Russian imperial family between 1885 and 1916 when the company was run by Peter Carl Fabergé.
The brand dates back to 1882 when Fabergé – who was from a French Huguenot family that had fled to Livonia, now Estonia, and also had links to Dresden – took over his father’s jewellery business in St Petersburg and with his brother Agathon turned it into an international success story.
Asian stocks edged higher amid upbeat financial results from companies. Japan’s stock market is closed for a holiday but Nikkei futures rose, raising hopes of a new all-time high this week. China’s Shenzhen exchange posted a 1.4% gain while the Hong Kong market crept 0.08% higher and Taiwanese shares rose by 0.5%.
US tariffs on China are due to come in tomorrow but the 90-day truce could get extended again. Investors are also eagerly awaiting the latest US inflation data, out tomorrow.
In London, the FTSE 100 index dipped by 0.2% at the open to 9,117.
