US jobs grow by more than expected despite tariff turmoil

BBC Business • May 02, 2025 • Business

The US added 177,000 jobs in April 2021, more than what analysts had predicted. Despite changes in trade policy, the unemployment rate remained stable at 4.2%.

Key Facts:

• The US added 177,000 jobs in April 2021.
• The unemployment rate in the US stayed at 4.2% in April.
• The creation of jobs is more than what was expected by experts.
• Trade policy changes didn't affect the stability of the job market.
• The jobs market in the US has shown a surprising resiliency over the last few years.
• Employment declined in the federal government but was balanced by local government hiring.
• The sectors that saw the most job growth were healthcare, warehousing, and transportation.
• The average hourly pay in the US increased by 3.8% over the last year.

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BBC Business

M&S working 'day and night' over cyber attack

BBC Business • May 02, 2025 • Business

Marks & Spencer, a large retail company, has had to stop online orders after a cyber attack affected their operations. It's not clear when normal business will start again because the company is still trying to fix the issues caused by the attack.

Key Facts:

• Marks & Spencer, or M&S, is dealing with a cyber attack.
• Due to this attack, they have stopped online orders on their website and apps.
• The cyber attack started causing problems over Easter weekend.
• The attack has significantly affected M&S because it relies a lot on online sales, especially for clothing and home items.
• Daily spending averages at £3.8m on clothes and home goods on M&S's website and apps.
• Food supplies in some M&S stores are also affected because some systems were turned off to deal with the attack.
• The company's loyalty program and gift card payments are also disrupted.
• Other retailers, including the Co-op and Harrods, have also experienced cyber attacks recently.

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BBC Business

Cash has benefits, say Wiltshire small businesses

BBC Business • May 02, 2025 • Business

Small business owners in Wiltshire, England see benefits in accepting cash payments, despite the government not mandating it. Customers support this as cash payments can be useful, especially when electronic payment systems go down.

Key Facts:

• Bradley Buechel, who runs a coffee shop and a tyre business in Wiltshire, is fine with accepting cash.
• The government is not yet forcing businesses to accept cash, but there are calls for better monitoring.
• Cash is seen as beneficial because there's no transactional fee, unlike card payments.
• Some small business owners see having to deposit cash at banks as inconvenient, especially with fewer branches in towns.
• Card use varies depending on the time of the month, and is generally the most popular method of payment, according to Becky Lyons, a pet shop owner.
• Despite the popularity of cards, customers still find cash useful when electronics go down.
• Some customers find cash useful for budgeting and tips.
• The Treasury Committee report published recently suggests the government should improve how it tracks and reports cash usage levels.

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BBC Business

Bank Holiday ticket resale warning: 'I paid £140 then she blocked me'

BBC Business • May 01, 2025 • Business

There is an increase in scams on social media selling fake tickets to sold-out events during bank holidays. The UK's scam reporting service, Action Fraud, and consumer group, Which?, are alerting the public about these fraudulent activities.

Key Facts:

• People have reported buying tickets to bank holiday events on social media and being scammed.
• These fraudsters often ask for payment through bank transfer and then block the buyer.
• One woman sent £90 to a seller for an event at Thorpe Park but did not receive her ticket.
• Another woman paid £60 for two tickets to an event in London and was also blocked by the seller.
• Bank holidays see an increase in these types of scams due to the high demand for tickets to events.
• Action Fraud recorded £9.7m lost to ticket fraud last year.
• To avoid scams, check the seller's credibility, buy from authorized retailers and watch for overly cheap prices.

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BBC Business

Vets may face caps on cremations and other charges

BBC Business • May 01, 2025 • Business

The UK regulator may put limits on how much vets can charge for medications, prescriptions, and services like pet cremation. These adjustments have been suggested as the sector is reviewed for potential lack of competition and rising costs.

Key Facts:

• The Competition and Markets Authority (CMA) is investigating the UK's veterinary sector, which is worth around £2 billion.
• Between 2015 and 2023, the cost of vet treatments increased by 60%, which is higher than the 35% inflation rate for other services.
• The CMA suggests there might be a ban on bonus systems for vets who perform specific treatments. It also wants price transparency for customers.
• Businesses have been found to charge customers up to four times the original cost of some medicines.
• The CMA proposes that vets could be made to clearly display prices for medicines and services online.
• It has been suggested that pets' owners should be informed if there are cheaper treatment options available.
• Six large corporate groups have bought about 1,500 of the UK's 5,000 veterinary practices since 2013, leading to concerns about reduced consumer choice.
• The CMA plans to release a provisional report on suggested measures in the summer, with a final decision in November.

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BBC Business

McDonald's posts biggest US sales drop since Covid

BBC Business • May 01, 2025 • Business

McDonald's has experienced its biggest drop in US sales since the Covid-19 pandemic. The fall was attributed to wider concerns about the US economy and a decrease in customer visits due to rising prices.

Key Facts:

• McDonald's saw a drop in sales of 3.6% in the first three months of 2025 compared to the same period in 2024.
• This is the biggest drop in sales for the company since June 2020, when pandemic restrictions were in place.
• According to CEO Chris Kempczinski, customers are dealing with uncertainty, but he believes the company can handle difficult market conditions.
• Despite facing backlash over increased prices, especially from lower-income households, McDonald’s is working to revive its business.
• The drop in sales coincides with a decrease in the US economy, which contracted at a yearly rate of 0.3% in the first three months of 2025.
• This drop in sales impacted McDonald's overall revenue, which went down by 1% despite growth in sales in Japan, Australia, and the Middle East.
• The US government's tariff policies (extra taxes on imported goods), under President Donald Trump, caused confusion and concern among many businesses, including McDonald’s.
• Other companies, like the tech giant Intel and sportswear brand Adidas, have warned that these tariff policies will lead to higher prices and a potential recession.

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BBC Business

Online orders paused and missing items – what we know about the M&S cyber chaos

BBC Business • May 01, 2025 • Business

Marks & Spencer, a major UK retailer, has been experiencing significant disruptions due to a cyber attack that started over Easter weekend. The attack has caused issues with in-store operations and led to a temporary halt on online orders, with no clear timeline on when services will fully resume.

Key Facts:

• Marks & Spencer faced a cyber attack over the Easter weekend, disrupting its operations.
• As a result of the attack, the store paused its online orders and their availability is still uncertain.
• Additionally, some food items have been missing from stores due to technical issues related to the same problem.
• The cyber attack is identified as a ransomware attack, a type of hack that locks access to important data or files, frequently followed by a ransom demand.
• Security experts identified "DragonForce" as the group behind the cyber attack, but who exactly implemented it is uncertain.
• This cyber attack has already cost the company millions, with its share price falling 6.5% since the issue began.
• The operation disruption coincidentally came during a warm period when shoppers are likely to buy summer clothing, possibly affecting sales.
• Suppliers to Marks & Spencer have maintained contact throughout this episode but don't appear to be greatly affected.

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BBC Business

Pottery firm goes bust after more than 100 years

BBC Business • May 01, 2025 • Business

Moorcroft Pottery, in operation for over 100 years, has ceased trading leading to the loss of 57 jobs. The company did not specify reasons for the closure, but it had previously warned about rising costs and falling sales.

Key Facts:

• Moorcroft Pottery has stopped business after being in operation for more than a century.
• The closure of the company means a loss of 57 jobs.
• The company has appointed Moore Recovery for voluntary liquidation.
• Previously, Moorcroft had alerted about increasing costs and reduction in sales.
• World-renowned for pottery, Stoke-on-Trent city, the company's base, had been hit by several pottery business closures recently.
• In 2025, the pottery industry of Stoke-on-Trent city suffered a setback.
• Earlier in March, Moorcroft stated their energy costs had risen by nearly £250,000 in two years.
• The company’s roots trace back to 1897, and it has been at its current location since 1913.

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BBC Business

Tesla denies contacting headhunters to replace Musk

BBC Business • May 01, 2025 • Business

Tesla, the electric car company, has stated that they are not seeking a new CEO to replace Elon Musk. This response came after the Wall Street Journal claimed the company was considering such a move due to frustrations with Mr. Musk's performance and declining share price.

Key Facts:

• The Wall Street Journal reported that Tesla was searching for a new CEO to replace Elon Musk.
• In response, Tesla stated that there is no search for a new CEO and that these reports are false.
• Elon Musk is also involved in President Trump's administration, leading an advisory body called the Department for Government Efficiency (Doge).
• Some Tesla customers have been unhappy with Musk's political actions and views.
• There have been instances of boycotts and protests against Tesla due to Elon Musk's actions.
• President Trump has shown support for Tesla and Elon Musk, even pledging to purchase a Tesla vehicle.
• Elon Musk contributed more than $250 million to President Trump's re-election campaign. It remains unclear when he will step down from his government role.
• Despite some issues, Tesla's board conveyed confidence in Musk's ability to execute the company's plans for growth.

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BBC Business

Deported gang members get second chance at call centre

BBC Business • April 30, 2025 • Business

Alberto Salagan, who spent most of his life in the U.S., was deported back to Mexico, his birth country. He was able to find work at a local call center, EZ Call Center, which employs mainly other deportees, and pays them to use their English language skills to interact with U.S. customers.

Key Facts:

• Alberto Salagan was born in Mexico but raised in the U.S.
• He was deported back to Mexico following an arrest for gang activity.
• He struggled with returning to Mexico due to language barriers and lack of support.
• He found employment at EZ Call Center, which is a company that employs many deportees.
• The company's owner, Daniel Ruiz, was himself deported from the U.S.
• The company has U.S. clients and the employees use their English language skills to assist these clients.
• President Trump has spoken about carrying out a large-scale deportation, but numbers from the Mexican government show deportations have been lower in the first three months of Trump's second term.
• Daniel Ruiz also co-founded a humanitarian organisation, the Borderline Crisis Center, which supports deportees in Mexico.

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BBC Business

Armagh healthy ready meal firm enters liquidation

BBC Business • April 30, 2025 • Business

Karri Kitchen, a company in Northern Ireland that made healthy ready meals, has stopped operating and is in the process of liquidation due to high production costs. The business was appreciated in the community, and its closure will affect its 33 employees and the local economy.

Key Facts:

• Karri Kitchen, a Northern Ireland based healthy ready meal company, has gone into liquidation.
• This company, which began in 2019, was well-known for its healthy Asian-style meals.
• It used to sell its products in major stores like Tesco, Lidl, Asda, and Spar.
• Liquidation is a process of closing a business, selling its assets, and using the money to pay off as many debts as possible.
• The reason for liquidation: Karri Kitchen couldn't afford the increasing costs of producing meals.
• At the time it stopped trading, the company had about £700,000 in net debts, including money owed to a food business and a loan from one of its directors.
• The company used to employ 33 people who will now likely lose their jobs.
• The closure will affect the local economy of Craigavon, County Armagh, where the business was based.

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BBC Business

'We don't care': A defiant China looks beyond Trump's America

BBC Business • April 30, 2025 • Business

Hu Tianqiang, who manages a toy shop in the world's largest wholesale market in Yiwu, China, states that the impact of tariffs placed by the US has led to shifting business focus away from America towards other nations. Despite the US-China trade war, the city of Yiwu remains an essential global trading hub.

Key Facts:

• Hu Tianqiang runs a toy shop in Yiwu, China.
• Yiwu is home to the world's biggest wholesale market, consisting of over 75,000 shops.
• Yiwu is located in Zhejiang province, a significant manufacturing and export area in China which accounted for 17% of all Chinese sales to the US last year.
• Last year, China exported $34 billion worth of toys, $10 billion of which went to the US.
• Chinese exports to America are now subject to tariffs as high as 245% due to the trade war initiated by President Donald Trump.
• Since the beginning of the trade war in 2018, many Chinese businesses, including Mr. Hu’s, have begun shifting their focus towards non-US markets. Mr. Hu says he mostly sells to South America and the Middle East now.
• Even though 20-30% of Hu's business once came from US buyers, he chooses not to target them anymore because of the tariffs.
• Many international buyers from Africa, Dubai and South America frequent the Yiwu market.

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BBC Business

Royal Mail takeover approved by shareholders

BBC Business • April 30, 2025 • Business

The owner of Royal Mail, International Distribution Services (IDS), has been bought by a Czech billionaire named Daniel Kretinsky. The sale, which had the support of over 80% of IDS's shareholders, means Kretinsky's EP Group will now manage Royal Mail, a company with a 500-year history.

Key Facts:

• The sale of Royal Mail to Daniel Kretinsky's EP Group was approved by over 80% of IDS shareholders.
• The deal is said to be worth £3.6 billion.
• Under the agreement, EP Group must maintain Royal Mail's current service commitments, which require delivery of letters six days a week, and parcels five days a week.
• Kretinsky has committed to fulfill these service requirements for as long as he owns Royal Mail.
• Royal Mail recently proposed to regulator Ofcom a reduction in second class deliveries to save costs.
• The Greeting Card Association expressed concerns about these proposed changes, saying they could put pressure on small businesses.
• Daniel Kretinsky, who is worth £6 billion, also owns parts of West Ham United football club and Sainsbury's, along with a gas transmission service.

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BBC Business

US economy shrinks as firms import more ahead of tariffs

BBC Business • April 30, 2025 • Business

The US economy saw a decrease in the first three months of this year as companies imported more goods to avoid tariffs. This decrease happened alongside a drop in government spending.

Key Facts:

• The US economy decreased at an annual rate of 0.3% in the first three months of the year.
• This decrease followed a growth of 2.4% in the previous quarter.
• The change was due to a drop in government spending and increased imports.
• Businesses imported more goods to get them into the country before tariffs were imposed.
• Business investment and consumer spending, however, increased during this time.
• Consumer spending grew at a slower pace than in 2024.
• The comprehensive report indicated imports increased by over 40% during the first quarter.
• Despite the economic downturn, final sales to private domestic purchases, a measure of overall demand, stayed relatively stable, showing a 3% growth.

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BBC Business

Struggling families urged to use Honesty Jar shop

BBC Business • April 30, 2025 • Business

The community shop, Honesty Jar, located in Henstridge, Somerset, offers free or inexpensive essential items to those facing financial difficulties. Their initiative is to reduce the burden on such families and encourage re-use of items that would otherwise go to landfill.

Key Facts:

• The Honesty Jar is a community shop in Somerset, helping families who are having a hard time with money.
• It offers free or cheap items like clothes, school uniforms, books, toys, and kitchen stuff.
• The shop was started by Sam Flounders and is run by 40 volunteers.
• Each month, about 1,000 people come to the Honesty Jar for help.
• People are encouraged to give money if they can, but it's not a requirement.
• The items in the shop are all donated. They receive about 2,000 kg of items every week.
• Their goal is to reuse items that people don't want anymore, instead of letting them end up in the trash.
• The Honesty Jar provides support to new parents, people looking for jobs, and young people starting to live on their own.

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BBC Business

House prices fall in April as stamp duty changes kick in

BBC Business • April 30, 2025 • Business

House prices in the UK dropped by 0.6% in April due to changes in stamp duty laws. Even so, the average house price is still 3.4% more than it was last year, at £270,752.

Key Facts:

• UK house prices dropped by 0.6% in April.
• The average house price is £270,752, which is more expensive by 3.4% compared to the previous year.
• The price fall happened after changes to stamp duty laws, which now applies to properties over £125,000 instead of over £250,000.
• First-time home buyers now pay stamp duty for properties that cost more than £300,000. Before this change, they only paid if the property was above £425,000.
• The data is based on Nationwide's mortgage lending, and does not include cash purchases or buy-to-let deals.
• Experts expect the housing market to be slightly weak in the next few months, but anticipate a bounce back due to rising incomes and possible interest rate cuts.
• All big UK lenders are now offering fixed mortgage deals with an interest rate lower than 4%.
• There's increased availability of mortgages with a low deposit of 5% or 10%, which is the most since the 2008 financial crisis.

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BBC Business

Starbucks to hire more baristas in bid to win back customers

BBC Business • April 30, 2025 • Business

Starbucks' CEO, Brian Niccol, plans to hire more baristas and reduce use of automation to attract more customers. This comes as a response to continuous drop in Starbucks' sales.

Key Facts:

• Starbucks management plans to employ more baristas and decrease the use of automated systems.
• This strategy aims to attract more customers, in the face of falling sales.
• Recent test runs, involving increased staffing, have been implemented in around 3,000 Starbucks stores.
• Starbucks also plans to modernize its coffee shops, change menus, and revise dress code for employees.
• A previous Starbucks policy allowing non-purchasing customers to use Starbucks facilities was reversed in January.
• Starbucks' global sales fell by 1% in the three months ending March, marking the fifth quarter of sales decline.
• Despite overall declining sales, Starbucks experienced a rise in sales in China and Canada.
• After the announcement of sales results, Starbucks shares dropped by more than 6.5%.

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BBC Business

Richard Branson criticises Donald Trump's tariffs

BBC Business • April 30, 2025 • Business

In a recent event, Sir Richard Branson spoke about his views on tariffs set by Donald Trump, stating that they have caused considerable damage. However, he believes the UK still offers a great environment for starting a business in spite of Brexit issues and the ramifications of these tariffs.

Key Facts:

• Richard Branson recently shared his perspectives on Donald Trump's tariffs.
• He stated that these tariffs have inflicted a good deal of harm.
• Despite the challenges presented by Brexit and these tariffs, Branson maintains that the UK is still a suitable place for initiating a business.
• He expressed his desire to enhance London's prosperity post-Brexit.
• Branson also believes that business people can help reduce taxes in the UK by generating sufficient income.
• More than 50 years after launching Virgin Records in London, he still thinks the UK is a really special and stable place.
• James Bermingham, CEO of Virgin Hotels, expressed optimism about London's resilience in the face of any crisis.
• On the idea of a tourism tax in London, Bermuda agreed to a small, reasonable fee that wouldn't restrict demand.

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BBC Business

Warning electricity meters in 300,000 homes could stop working

BBC Business • April 29, 2025 • Business

Many homes in the UK could lose hot water or heating as their older types of electricity meters become non-functional. This is due to the upcoming switch-off of the Radio Teleswitching System (RTS) on 30 June, and the challenge to replace all RTS meters with smart meters before this deadline.

Key Facts:

• Radio Teleswitching System (RTS) meters are older types of electricity meters that use a longwave radio frequency to change energy tariffs.
• Over 300,000 homes could face heating and hot water disruption as RTS meters become non-operational.
• Energy companies have been told to replace RTS meters with smart meters before 30 June, when the old technology is disabled.
• As of the end of March, 430,000 homes were still using RTS meters according to Energy UK.
• Energy UK says over 1,000 RTS meters are being replaced daily, but this needs to rise to around 5,000 a day to replace all meters by the expected deadline.
• Ordinary electricity use, like lights and plug sockets, should not be affected by the RTS switchoff.
• Some consumers are hesitant to switch to smart meters due to issues like inaccurate readings and variable performance based on location.

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BBC Business

Warning shops could be forced to accept cash in future

BBC Business • April 29, 2025 • Business

MPs say stores and services may have to accept cash at some point because some people need to use it. The government is not planning to make this a law yet, but is being asked to keep a closer eye on how often cash is used.

Key Facts:

• In the future, stores and services may need to accept cash to help people who rely on it, according to MPs.
• A report by the Treasury Committee did not suggest a new law to make cash acceptance mandatory.
• Some places, like Australia and parts of the EU, are planning rules to make essential services accept cash in some situations.
• Currently, stores and services can choose which form of payment they accept.
• If fewer stores accept cash, the prices in the remaining stores that do could go up.
• This could make things harder for people who only have cash or prefer to use it to manage their budget.
• The report also warns about people being left out if they can't use cash at places like leisure centers, theaters, and public transport.
• The Committee's report suggests that for some businesses, like market stalls, cash is still very important.

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BBC Business