Stay in the loop with our weekly updates. A quick global event summary from our portfolio managers for informed conversations with clients.

Issue 258 | 8th September, 2025

UK

• Bank of England (BoE) Governor, Andrew Bailey, stated that there was “considerably more doubt” to further interest rate cuts at a hearing before a parliamentary committee last week, citing an increase in inflation risk and concerns in labour market weakness.
   
• UK retail sales volumes rose 0.6% month-on-month in July, building on June's 0.3% gain (revised down from 0.9%). Higher sales in July were largely driven by increases in non-food and non-store retailing. The Office for National Statistics (ONS) attributed higher spending in these categories to summer sporting events and continued good weather.
   
• August's final S&P Global survey pointed to a strong rise in services activity, with the sector's Purchasing Managers’ Index (PMI) climbing to a 16-month high of 54.2, from 51.8 in July. Survey respondents linked this to a large upturn in new orders in both domestic and external markets, amid improved demand conditions.

North America

• Signs the US labour market was coming under more pressure was on show last week, with the most notable indicator being the Labor Department’s nonfarm payrolls report. It revealed that US employers added just 22,000 jobs in August, a sharp fall from July’s revised figure of 79,000 and well below estimates of 77,000. June’s report was also revised down from 14,000 jobs added to a loss of 13,000, the first negative reading since December 2020. US unemployment also increased to 4.3% in August, the highest since 2021.
   
• The US Manufacturing Purchasing Managers’ Index (PMI) was reported at 48.7 in August, up from the previous month’s reading of 48.0 but below estimates for around 49.1, still indicating contraction in the sector.
   
• The Services PMI showed expansion over the same period, moving to 52.0 from the previous month’s 50.1. The increase was partially attributed to faster growth in new orders and business activity.

Europe

• Inflation in the eurozone – as measured by the Consumer Prices Index (CPI) – climbed in August to 2.1%, close to the European Central Bank’s (ECB) target of 2%. Core CPI, which excludes the volatile food and energy components, remained steady at 2.3%.
   
• ECB policymakers made comments that interest rates would remain steady over the near term, with many economists believing the central bank has come to the end of its policy easing due to its stable economic picture.
   
• Eurozone unemployment ticked downward to 6.2% in August, from 6.3% the previous month, the lowest level since November 2024.
   
• Retail sales in the eurozone contracted 0.5% month-on-month in July. However, the weakness was driven by the more volatile fuel and food components, whereas the rest of the categories saw increases.

Asia

• Japan's Prime Minister, Shigeru Ishiba, has resigned after pressure from within his Liberal Democratic Party (LDP). Support for his ruling coalition has steadily declined as Japan has struggled with sluggish economic growth and rising inflation that has fuelled frustration over squeezed corporate earnings.
   
• According to the revised estimates, Japan's GDP gained by 0.5% quarter-on-quarter in Q2, an upgrade from the initially-estimated 0.3% gain. The upgrade was from higher contributions in inventory investment and consumption, though business investment was downgraded with weak structures and buildings investments.
   
• India's economic growth remained robust in Q2 2025. Headline real GDP increased by 7.8% year-on-year, up from 7.4% in Q1, surpassing consensus expectations of 6.7%, driven by a resilient domestic sector.

Sources: Bloomberg, Reuters, Yahoo Finance, The Guardian, Proactive Investors, BBC, Oxford Economics 

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