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Assalamu Alaykum,
Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the UK from June. Let’s get started.
Stock market updates
June saw mixed results for UK markets, with the FTSE 100 Index dipping slightly by 0.15% to close at £8,760.96, though it maintained a solid 6.06% gain year-to-date. Meanwhile, the FTSE All-Share Index edged up 0.26% to £4,772.78, bringing its YTD performance to 5.84%.
Shares of CVS Group and Pets at Home fell after the CMA extended its vet sector probe by six months, citing the need to assess stakeholder feedback. The investigation targets pricing, limited competition, medicine costs, and outdated regulation. CVS welcomed the focus on transparency but warned some remedies could hinder vets and confuse consumers. It also acknowledged ongoing uncertainty may frustrate investors.
Spectris shares jumped after confirming a takeover proposal from Advent International at £37.63 per share, including cash and dividend. The board said it would likely recommend the offer if made formally, having considered several previous approaches. Discussions are ongoing, and Advent has until 7 July to make a firm bid. Shares rose 63% following the announcement.
AstraZeneca announced a strategic collaboration with CSPC Pharmaceuticals to co-develop pre-clinical drug candidates, including an oral immunology therapy, targeting chronic diseases. CSPC will lead research using its AI-powered platform in Shijiazhuang and receive $110M upfront, plus up to $5.22B in milestones and royalties. AstraZeneca will retain exclusive global licensing rights for any successful candidates developed.
Halma reported record revenue of £2.25bn and a 15% rise in adjusted EBIT to £486m, driven by strong performances in its Environment and Analysis segments and double-digit regional growth in the U.S. and Asia Pacific. The company raised its full-year dividend by 7% to 23.12p, highlighting confidence in its outlook. With a robust order book and sustained demand, Halma expects continued organic revenue growth and EBIT margins above the mid-range of its 19–23% target.
Crest Nicholson held its annual guidance after adjusted pre-tax profit rose to £7.9m, up from £2.6m, despite a drop in completions to 739 units due to a strategic shift toward higher-margin open market homes. The company returned to statutory profit with £9.4m, reversing a £31m loss, supported by a strong balance sheet and improving mortgage affordability. With no major cost pressures and stabilizing market conditions, Crest expects steadier trading in the second half of the year.
Top gainer and top loser Halal stocks in the USA
Economic updates
UK unemployment rose to a 4-year high of 4.6% as job vacancies fell and wage growth slowed, reflecting a cooling labor market. Payrolls dropped by 55,000 in April, with further declines in May, especially in hospitality and retail. Slower wage growth eased inflation concerns, raising expectations for a Bank of England rate cut by September. Analysts noted weakening labor demand, though some data suggested resilience through rising self-employment.
Chancellor Rachel Reeves announced a £39bn affordable housing plan within a £113bn capital investment push, focused on boosting regional growth. While health and defence spending are protected, other departments face cuts amid rising debt costs. Critics warn tax hikes may be needed, but Reeves says the plan supports working people and national renewal.
The UK pledged £11.5bn in new funding for the Sizewell C nuclear plant, bringing total public investment to £17.8bn and reviving large-scale state support for nuclear energy. Chancellor Rachel Reeves said the move, enabled by relaxed fiscal rules, will help create 10,000 jobs and accelerate the project. EDF remains a key partner, with final investment decisions pending private backing. The UK also selected Rolls-Royce to lead its first small modular reactor and committed £2.5bn to nuclear fusion over five years.
The ECB cut interest rates to 2%–ts eighth cut in a year—due to sluggish growth and pressure from Trump’s rising tariffs on EU goods. It warned trade uncertainty is hurting investment, though growth may recover through defence and infrastructure spending. Meanwhile, Trump is urging the US Fed to cut rates too, as the American economy shows signs of slowing.
The OECD has downgraded UK growth and urged Chancellor Rachel Reeves to raise taxes and cut spending, warning that economic momentum is weakening due to inflation and Trump’s tariffs. It predicts GDP growth of 1.3% in 2025 and just 1% in 2026, citing rising debt costs, high savings, and dampened business sentiment. The OECD advised Reeves to close tax loopholes, reform council tax, and preserve investment while rebuilding fiscal buffers. Reeves responded by highlighting trade deals and infrastructure plans, but acknowledged more action is needed.
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