The US dollar returned to the upside as geopolitical fears rebounded after US President Trump's address to the nation. The rhetoric fuelled risk aversion and flows toward the dollar while oil prices surged.
U.S. financial markets experienced a volatile week, largely influenced by geopolitical developments in the Middle East and fluctuations in energy prices. Investor sentiment was driven primarily by external events rather than domestic fundamentals.
The UK has about 1.59GW of currently installed datacentre capacity at just under 190 sites. If we add existing capacity to that which is planned to complete by 2030 and which has planning consent, we get 4.9GW.
Prof Stephen Cushion stated that news reporting failing to differentiate between the UK's devolved governments neglects audiences' constitutional needs. He emphasized that issues like housing and healthcare are governed differently in Wales, which is often invisible in UK-wide news.
Jim Ratcliffe stated that excessive taxation risks damaging domestic industry, emphasizing the need for a pragmatic approach to energy policy that balances affordability with environmental goals.
Rachel Reeves told MPs that living standards are expected to improve over the course of this parliament. Her central claim was that households would be around £1,000 a year better off by the time voters next go to the polls. The projection is based on forecasts for real household disposable income - a measure that tracks the amount people have left after tax and inflation.
The Conservatives are calling for a proposed renovation of the Houses of Parliament to be paused and "refocused" over concerns about costs potentially running into the tens of billions. MPs have been presented with proposals to refurbish the ailing Palace of Westminster, including a plan that could cost almost 40bn and take 61 years to complete. The project team has warned delaying the restoration of the historic building, which costs 1.5m a week to maintain, would lead to "an expensive managed decline of the Palace".
Political U-turns come in various forms, and as news of the latest government reversal drifted out, this one connected to the plight of the pub trade, Labour MPs could take comfort in one thing: at least it happened quickly. While last summer's change of stance on benefit reforms was forced on Downing Street by open rebellion, and those for pensioners' winter fuel payments and inheritance tax for farmers followed months of dissent, the decision to revisit decisions on business rates took a matter of weeks.
The economy continued to grow slowly in the last three months of the year, with the growth rate unchanged from the previous quarter. The often-dominant services sector showed no growth, with the main driver instead coming from manufacturing. Construction, meanwhile, registered its worst performance in more than four years. The rate of growth across 2025 as a whole was up slightly on the previous year, with growth seen in all main sectors.
