The King of the North is one of the most prominent figures to Game of Thrones fans, and Andy Burnham appears determined to reinforce that reputation as he looks set to move part of the organisation’s operations to Manchester. The move would serve as a means of shifting power away from London and into the regions, aligning with ambitions for a rewired Britain.
The former Mayor of Greater Manchester is on course to become the UK’s next Prime Minister within weeks, yet this week he spoke of a “10-year plan” for the country. Such rhetoric suggests a measured, long-term approach, with Burnham seeking to address the cost-of-living crisis while maintaining fiscal discipline and avoiding adding pressure on the public finances. He also hinted at greater public control over essential services, including water, energy and transport, signalling a willingness to expand the state’s role in key areas of the economy.
The outgoing Prime Minister, Sir Keir Starmer, does not appear willing to let Burnham take over empty-handed, with an additional £15 billion for defence spending seemingly forming part of the handover. However, this comes at the expense of several infrastructure projects, which are set to be scrapped. We covered the departure of Defence Minister John Healey a few weeklies ago. The agreed package is only £1.5 billion more than the amount previously presented to him, falling short of the £28 billion he had advocated for.
There was positive news for the UK economy, with first-quarter GDP figures showing growth of 0.6%. This marked the strongest quarterly performance since Q1 2025 and reflected the resilience of the economy before it was affected by the fallout from the US–Iran conflict. The services sector remained the main driver of growth, expanding by 0.8%, while both production and construction also recorded growth. It was a positive note on which Rachel Reeves potentially ends her tenure as Chancellor, with Andy Burnham widely expected to appoint a new candidate.
British American Tobacco (BAT) is a multinational company based in London that manufactures and sells tobacco and nicotine products. This week, the company confirmed plans to cut approximately 20% of its workforce as part of what it describes as an “AI-driven overhaul”. At times, AI appears to be a convenient justification for businesses seeking to reduce costs, rather than a reflection of the benefits the technology can genuinely deliver. The restructuring is expected to result in up to 9,000 job losses as BAT continues to grapple with sluggish sales and profit growth. Consumers have increasingly switched to alternatives as tobacco duties have risen over the past two years, while BAT has also struggled to establish a strong presence in the vape and nicotine pouch markets. Shares fell -2.3% over the week.
It is the first week of the month and, with that, the first Friday usually brings the release of the US Non-Farm Payrolls figures. However, with Independence Day falling on a Saturday this year, the US observed the holiday on Friday, meaning the figures were released a day earlier. In June, 57,000 jobs were created, well below market expectations of 110,000. The Bureau of Labor Statistics has faced criticism throughout President Trump’s second term due to frequent and sizeable revisions, and this month was no exception. May’s figure was revised to 129,000, while April’s was revised down to 148,000, resulting in a combined reduction of 74,000 jobs across the two months. This points to a significant cooling in the labour market, following a period of stronger hiring that reflected preparations for the FIFA World Cup. The leisure and hospitality sector shed 61,000 jobs, offsetting continued strength in the education and healthcare sectors, which added 69,000 roles.
In reaction to the payroll figures, US equity markets delivered a mixed performance. The S&P 500 closed largely flat on the day, while the technology-heavy Nasdaq fell -1.6%. Despite an extremely volatile second quarter, both indices recorded their strongest quarterly gains since 2020, with the S&P 500 rising 14.9% and the Nasdaq gaining 21.5%.
Nathan Amaning, Investment Analyst
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