Company insolvencies in England and Wales fall
Just in: the number of companies in England and Wales falling into insolvency dropped last month.
The Insolvency Service has reported that there were 2,043 registered company insolvencies in England and Wales in June, 8% lower than in May 2025 (2,230) and 16% lower than in June 2024, when 2,430 companies failed.
That could ease some concerns over the health of the UK economy, as companies tackle rising inflation and higher taxes.
Despite the drop, monthly company insolvency numbers in the first six months of 2025 were slightly higher than the second half of 2024, but remain lower than the 30-year annual high seen in 2023.
The Insolvency Service says:
Company insolvencies in June 2025 consisted of 332 compulsory liquidations, 1,585 creditors’ voluntary liquidations (CVLs), 111 administrations and 15 company voluntary arrangements (CVAs). There were no receivership appointments.
Key events
IMF’s Gopinath: We face high levels of policy uncertainty
A top official at the International Monetary Fund has warned that “high levels of policy uncertainty” remained a key theme at the meeting of G20 finance ministers in Durban this week.
Gita Gopinath, the IMF’s First Deputy Managing Director, says economic indicators have reflected a complex backdrop shaped by trade tensions since April (when the Fund released its latest forecasts, and Donald Trump announced his ‘Liberation Day’ tariffs).
Gopinath says:
We have seen strong evidence of front-loading ahead of tariff increases and some trade diversion. We have also seen an improvement in global financial conditions as select trade deals lowered average tariffs. On inflation, cooling demand and falling energy prices point to a continued decline, albeit with variation across countries.
And on Financial Sector issues, Gopinath warned of risks and urged close monitoring of non-bank financial institutions (NBFIs) (such as investment funds, insurance companies, pension funds and other financial intermediaries).
Even though financial conditions have eased since April, with trade and geopolitical uncertainty still elevated, financial stability risks remain in focus. Asset valuations are once again stretched, the use of leverage remains high in parts of the financial system, and periodic pressure observed on government bond yields and market functioning carries the risk of broad repercussions, particularly against a backdrop of large fiscal deficits and increased illiquidity.
Vigilant surveillance and robust supervision remain paramount and recent progress in financial sector oversight must continue, particularly for NBFIs which now account for more than 50 percent of the financial sector
Shares in Netflix have dropped in early trading, after its results last night.
Netflix raised its full-year revenue outlook yesterday, and reported $11bn revenue for the quarter to the end of June, a 16% year-on-year increase.
But traders may have hoped for more – Netflix’s shares are down 4.7% in early trading.
The company also revealed overnight that it had used artificial intelligence in one of its TV shows for the first time, by including generative AI footage in its Argentinian science fiction series El Eternauta (The Eternaut).
Wall Street has opened higher, as investors weigh up the chances of early cuts to US interest rates.
The Dow Jones Industrial Average rose 54.46 points, or 0.13%, at the start of trading to 44,542.97.
The broader S&P 500 index gained 0.23% while the Nasdaq Composite is up 0.34%.
G20 finance chiefs back central bank independence
News is emerging from Durban that G20 finance leaders have agreed a final communique on Friday that stressed the importance of central bank independence.
That’s a timely reminder to Donald Trump of the dangers of undermining the Federal Reserve, as he continues to throw insults their way.
The communique says:
“Central banks are strongly committed to ensuring price stability, consistent with their respective mandates, and will continue to adjust their policies in a data-dependent manner. Central bank independence is crucial to achieving this goal.”
The G20 also “recognise the importance of the world trade organisation to advance trade issues”, and say they are “committed to international policy cooperation to further promote global prosperity”.
But they also warn that the global economy is facing “heightened uncertainty and complex challenges”.
Fed’s Waller says would accept job as chair if Trump asks
Hello hello….Federal Reserve governor Christopher Waller has said he would accept the job as Fed chair if asked by President Donald Trump.
Waller made the comments today, just hours after throwing his weight behind calls for a rate cut this month (see earlier post).
According to Reuters, Waller said:
“In 2019 the president contacted me and said, ‘Would you serve?’ And I said yes.
“If the president contacted me and said, ‘I want you to serve,’ I would do it. But he has not contacted me.”
Ofwat to be abolished as ministers explore creating new water regulator
Helena Horton
Big news in the water industry: England and Wales’ embattled water regulator will be abolished under recommendations from a government-commissioned review due on Monday, the Guardian understands.
Ministers will next week announce a consultation into creating a new regulator, to coincide with the results of a review into the water industry directed by former Bank of England deputy governor Sir Jon Cunliffe.
This consultation is likely to conclude in the abolishment of Ofwat, the embattled watchdog that polices how much water companies can charge for their services in England and Wales, sources said.
Ofwat has faced intense criticism over its failure to prevent sewage spills, hefty payment of dividends and ballooning debts across England and Wales’s water companies. The review will recommend the creation of new regulatory system.
More here.
Festivalgoers help drive Burberry to best sales performance in 18 months
Back in the City, fashion group Burberry is one of the best performers on the London stock market today, after slowing its decline in sales.
Surprisingly, demand for Burberry wellies, scarves and light jackets to wear at music festivals have helped the fashion brand to its best sales performance in 18 months, my colleague Sarah Butler reports.
Sales of the luxury British brand fell by 2% to £433m in the three months to the end of June, with a 1% decline at established stores, an improvement from the 6% fall in the previous quarter and the best performance since Christmas 2023.
Shares in Burberry are up almost 5%, making it one of the top risers on the FTSE 250 share index.
One member of the Federal Reserve board, Christopher Waller, should be in president Trump’s good books, though.
Last night, Waller argued that the Fed should cut rates by the end of this month, and cited growing risks to the economy and (he argued) limited inflationary risks from trade tariffs.
Waller told a gathering of Money Marketeers of New York University:
I believe it makes sense to cut the FOMC’s policy rate by 25 basis points two weeks from now.
And looking to later this year, if, as I expect, underlying inflation remains in check—with headline inflation data reporting modest, temporary increases from tariffs that are not unanchoring inflation expectations—and the economy continues to grow slowly, I would support further 25 basis point cuts to move monetary policy toward neutral.
The Fed’s next two-day meeting starts on 29 July, with a decision scheduled for the 30th.
Brad Bechtel of investment bank Jefferies says Waller’s speech is getting some attention, explaining:
Waller not typically a politically motivated character on the Fed, so his strong view on this matter is important in that context.
His main arguments are that 1) tariffs are a one-off price increase and not a consistent impact to inflation, 2) GDP is below trend and a little too soft, arguing for rates closer to neutral, 3) employment looks fine on the surface, but downside risks have increased and private sector payroll growth is near ‘stall speed’. He therefore thinks we should cut rates by a quarter this month.
Pretty strong view from Waller as the Fed gets close to entering their blackout period before the next meeting.
Trump: Powell was “truly one of my worst appointments”, and blasts Fed board
Donald Trump has just declared that choosing Jerome Powell in 2017 to run the US Federal Reserve was one of his “worst” decisions, calling America’s top central banker a “numbskull” for not lowering borrowing costs.
Trump blames president Biden, who he dubs “Sleepy Joe”, for renominating Powell in 2021, and also blasts the Fed’s board for not lowering rates.
Posting on his Truth Social site, Trump again refers to Powell as “Too Late”, and again claims that US interest rates (currently a 4.25%-4.5% range) should be considerable lower, at just 1% (!).
Trump writes:
“Too Late,” and the Fed, are choking out the housing market with their high rate, making it difficult for people, especially the young, to buy a house. He is truly one of my worst appointments. Sleepy Joe saw how bad he was and reappointed him anyway – And the Fed Board has done nothing to stop this “numbskull” from hurting so many people. In many ways the Board is equally to blame! The USA is Rockin’, there is VERY LOW INFLATION, and we deserve to be at 1%, saving One Trillion Dollars a year on Interest Costs. I can’t tell you how dumb Too Late is – So bad for our Country!
Stock markets wobbled earlier this week following reports that Trump was preparing to fire Powell, but recovered when the president denied it.
The Fed’s board makes up a majority on the FOMC committee which vote to set US interest rates.
The FOMC have voted to leave interest rates on hold so far this year, partly due to concerns that Trump’s trade war will be inflationary.
The Insolvency Service has also reported that 10,279 individuals entered insolvency in England and Wales last month. This was similar to the numbers in both May 2025 and June 2024.
They explain:
The individual insolvencies consisted of 596 bankruptcies, 4,135 debt relief orders (DROs) and 5,548 individual voluntary arrangements (IVAs). The number of DROs in June 2025 was close to the record monthly high seen in June 2024.
IVA numbers in the first six months of 2025 were similar to the monthly average in 2024. Bankruptcy numbers remained at about half of pre-2020 levels and were also 10% lower than in June 2024.
Shares in Sweden’s fighter jet maker Saab have jumped 12% this morning, after the company announced strong sales growth amid the rush to spend more on defence.
Saab reported organic sales growth of 32% in the last quarter, driven by strong growth in small and medium-sized orders.
Micael Johansson, president and CEO of Saab, says:
“We are strengthening our market position and see a continued large interest in our products and solutions. Saab’s sales growth is high and we continue to invest to build capacity and meet long-term strong demand from the defence sector. At the same time, we continue to deliver strong profitability.”
Kroll: companies showing resilience in a ‘tough’ 2025
Risk advisory firm Kroll point out that 2025 has been challenging for many businesses, including in leisure and retail.
Benjamin Wiles, head of UK restructuring at Kroll:
“There’s no doubt that 2025 has been a tough year for businesses so far, particularly those in the retail and leisure industry. Yet, the overall decline in company administrations compared to this period last year shows a level of resilience that shouldn’t be overlooked. We saw a lot of restructuring activity at the end of last year with many companies looking to get ahead of cost pressures and there is still a lot of capital available to borrow.
“The question we are asking is whether businesses are fundamentally stronger or are they simply treading water. The second half of the year will be critical in determining whether this resilience can be sustained or if further pressures will tip more companies into distress.”
Kroll also produced this table, based on their internal data, which tracks administrations throughout the year.
Yesterday’s UK unemployment data showed that more than half the fall in payroll numbers over the last year was due to job losses in accommodation and food services.
The recent hot weather may have helped some hospitality firms and retailers avoid collapse, suggests Jennifer Lockhart, partner and insolvency specialist at purpose-led independent law firm Brabners.
Lockhart says:
A fall in insolvencies is welcome and reflects the positive impact that the warmer summer months can have on business performance – especially in the retail, construction and hospitality sectors that have borne the brunt of failures to date. However, amid these soaring temperatures it’s important to recognise that this likely represents a period of reprieve for businesses, rather than a turning point.
“Consumer confidence remains fragile, and the one-two punch of contracting GDP in May and growing inflation in June will do little to assuage concerns over what the next six months will hold for struggling businesses. Indeed, with many industries dialing back hiring plans – in part due to the influence of employment taxes and the impact of AI – the much-needed uptick in consumer demand is unlikely to materialize, putting more firms at risk.”