Pre-budget lift for Rachel Reeves as UK business confidence rises
Confidence among UK businesses has grown despite anxiety about the state of the economy, in a rare slice of positive news for the chancellor, Rachel Reeves, in the run-up to her autumn budget.An August poll of UK companies by Lloyds Bank showed that improved sentiment among manufacturers and retailers helped push overall optimism within UK plc up by two percentage points, with 54% of companies now feeling confident in the current environment.It marked the fourth consecutive monthly increase in overall business sentiment, according to the Lloyds business barometer, driven by a growing number of businesses – roughly 63% – feeling strong about their own trading prospects.On that measurement alone, confidence reached its highest level since 2014.About half of all businesses now expect to hire more staff in the coming year despite growing costs.
The survey found 38% of companies are expecting to have to raise wages by 3% or more, with the vast majority – 83% – saying that higher employment-related costs would have a limited impact on hiring plans.Overall optimism across the private sector comes despite jitters over the state of the economy, with levels of positive sentiment falling for the first time since the drop seen in April, when Donald Trump’s sweeping tariff announcements prompted fears over the future of global trade.Economic confidence fell three points to 44% this month, Lloyds said, although that remained above the longer-term average of 19%.However, the fact that business confidence continues to rise amid the economic gloom will be a rare piece of good news for the chancellor, given fears that a fresh round of tax increases – meant to bolster the public finances – could knock confidence and investment across the private sector as companies try to recoup and offset costs.Reeves is expected to announce a date for her autumn budget within days.
“This continued upward trend in business confidence suggests UK firms remain optimistic about their own trading prospects while there is a modest cooling of confidence in the wider UK economy,” Hann-Ju Ho, a senior economist at Lloyds Bank’s commercial banking arm, said.“Firms are focusing on what they can control, with many looking to pursue growth opportunities, including entering new markets and adopting new technologies.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotion“Wage expectations have seen a notable shift this month, but it remains to be seen whether this signals the start of a sustained trend or a temporary uplift, as they have been broadly stable in recent months.”
Trump accused of using mortgage fraud allegations as ‘weapon of choice’ to attack Fed
Donald Trump has been accused of wielding unconfirmed allegations of mortgage fraud as his “weapon of choice” to attack the Federal Reserve’s independence, as a governor at the central bank sues the president over his bid to fire her.In court on Friday, lawyers for Lisa Cook argued she was fired without the notice or “cause” required to remove a Fed governor. Cook learned of her removal from the board via a post on social media, they said.US district judge Jia Cobb is overseeing the case, which is widely expected to be ultimately decided by the supreme court. While it makes it way through the courts, Cook is seeking a temporary restraining order against Trump’s attempt to “immediately” dismiss her from the Fed’s board
Sir Graham Day obituary
Sir Graham Day, who has died aged 92, was a tough Nova Scotian with a strong sense of public duty who struggled to “save the saveable” from the wreck of two of the UK’s lame duck industries, shipbuilding and motor manufacture. Described by Margaret Thatcher as a “superb chairman”, he took the helm at five major British companies, including British Shipbuilders and British Leyland, before returning to business and academia in his native Canada.In 1970, as an international troubleshooter for the transportation company Canadian Pacific, he found himself supervising the delayed completion of two ships at the strike-torn Cammell Laird shipyard on Merseyside. Day noticed that the pickets went home at night, so he hired tugs and had the ships towed away for completion in Ireland.The Laird group was so impressed that it offered Day the chief executive’s job
Doctors develop AI stethoscope that can detect major heart conditions in 15 seconds
Doctors have successfully developed an artificial intelligence-led stethoscope that can detect three heart conditions in 15 seconds.Invented in 1816, the traditional stethoscope – used to listen to sounds within the body – has been a vital part of every medic’s toolkit for more than two centuries.Now a team have designed a hi-tech upgrade with AI capabilities that can diagnose heart failure, heart valve disease and abnormal heart rhythms almost instantly.The new stethoscope developed by researchers at Imperial College London and Imperial College healthcare NHS trust can analyse tiny differences in heartbeat and blood flow undetectable to the human ear, and take a rapid ECG at the same time.Details of the breakthrough, which could boost early diagnosis of the three conditions, were presented to thousands of doctors at the European Society of Cardiology annual congress in Madrid, the world’s largest heart conference
ChatGPT encouraged Adam Raine’s suicidal thoughts. His family’s lawyer says OpenAI knew it was broken
Adam Raine was just 16 when he started using ChatGPT for help with his homework. While his initial prompts to the AI chatbot were about subjects like geometry and chemistry – questions like: “What does it mean in geometry if it says Ry=1” – in just a matter of months he began asking about more personal topics.“Why is it that I have no happiness, I feel loneliness, perpetual boredom anxiety and loss yet I don’t feel depression, I feel no emotion regarding sadness,” he asked ChatGPT in the fall of 2024.Instead of urging Raine to seek mental health help, ChatGPT asked the teen whether he wanted to explore his feelings more, explaining the idea of emotional numbness to him. That was the start of a dark turn in Raine’s conversations with the chatbot, according to a new lawsuit filed by his family against OpenAI and chief executive Sam Altman
Snooker’s answer to Luke Littler? Meet teenage sensation Stan Moody
It is commonly known these days as the Luke Littler effect. A teenage phenomenon bursting on to the scene and almost becoming a bigger force of nature than the sport he or she was born to succeed in. But while darts is only experiencing that boom now, snooker has tasted this sensation before.In the 1990s, it was Ronnie O’Sullivan’s arrival on the baize as a teenager that revitalised snooker’s fortunes in the UK. In the mid-2000s, Ding Junhui’s emergence led to the explosion of the game in China – which has just produced its first world champion in the shape of Zhao Xintong, one of millions who was inspired to pick up a cue by Ding
Felix Auger-Aliassime stuns No 3 Zverev to return to US Open second week
Felix Auger-Aliassime stormed into the last 16 of the US Open on Saturday night with a rousing comeback win over world No 3 Alexander Zverev, knocking out one of the title favorites 4-6, 7-6 (7), 6-4, 6-4 on Louis Armstrong Stadium.The Canadian 25th seed had not reached the second week in New York since his semi-final run in 2021 but summoned some of the best tennis of his career to secure a first grand slam victory over a top-five opponent. The match stretched to three hours and 48 minutes and finished shortly before midnight, delaying the night session that followed.“It feels really good,” said Auger-Aliassime. “I’m still young, but I’ve been working at this for years
USA 31-31 Australia: 2025 Women’s Rugby World Cup – as it happened
Australia and USA draw thriller to bring belated jeopardy to Rugby World Cup
Joy for Samoa as Harmony Vatau kicks their first World Cup points for 11 years | Andy Bull
John Mitchell demands England improve despite record World Cup win over Samoa
‘It’s only going to get bigger’: Australia embraces the Japanese game that turns rubbish into sport
England 92-3 Samoa: Women’s Rugby World Cup 2025 – as it happened