British Shoppers Splash Out for Christmas But 2024 Growth Was Limited

A surge in Christmas holiday spending wasn’t enough to rescue U.K. retailers from anemic growth for 2024 as a whole, with economic woes continuing to depress confidence among British shoppers, the Wall Street Journal reported. Total retail sales increased by 3.2% on year in the four weeks to Dec. 28, a vital shopping season when consumers buy gifts, food and drinks for the Christmas and New Year holidays.
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Dragons’ Den Star Returns to Lead Crafting Company as Part of Insolvency

A crafting company founded by Sara Davies, the entrepreneur and Dragons’ Den panellist, is set to appoint administrators as part of a pre-pack insolvency of the business, The Times reported. Crafter’s Companion, which Davies, 40, turned from a start-up in her university bedroom into an international seller of paper craft, art and sewing products, is preparing to appoint administrators at Interpath as part of a fast-track process. A notice of intention to appoint administrators was filed at the High Court in recent days by Growth Partner, the business’s majority shareholder.
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Swiss Inflation Falls as SNB Mulls Further Rate Cuts

Switzerland’s inflation rate edged down in the final month of 2024, reinforcing the Swiss central bank’s decision to cut its key rate for the fourth-straight meeting last month, the Wall Street Journal reported. Consumer prices were 0.6% higher in December than the same month of 2023, down from the annual inflation rate of 0.7% posted in November, the country’s statistics agency said Tuesday. December’s rate was the same as October’s level, which was the lowest since June 2021.
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UK Anti-Trust Regulator to Launch Two Probes Under New Digital Markets Powers

Britain's anti-trust regulator said it would begin two investigations this month using its new powers over the biggest tech firms, which are aimed at stimulating investment, innovation and growth, Reuters reported. The CMA will designate firms as having "Strategic Market Status" (SMS) in relation to a particular digital activity before they can be investigated. The bar for SMS status is high, with only the largest, most influential tech firms affected.
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German Inflation Up More Than Expected, Backing ECB Caution

German inflation accelerated more than anticipated last month, backing the European Central Bank’s plans to keep cutting interest rates only gradually, Bloomberg News reported. Consumer prices rose 2.9% from a year ago in December, up from 2.4% in the previous month. The acceleration was driven by energy and food costs, the statistics office said. German short-term yields pushed higher after the release. The yield on two-year debt was up four basis points at 2.2%, while traders trimmed ECB rate-cut bets slightly.
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UK’s Borrowing Costs Near Highest Since 1998 on Auction Angst

UK long-term borrowing costs are nearing the highest levels in more than a quarter of a century as traders brace for a raft of bond sales this week, Bloomberg News reported. The yield on 30-year gilts rose as much as four basis points to 5.19%, nearing the 5.21% high seen in 2023. US Treasuries are also feeling the heat of impending bond sales, with the equivalent yield earlier rising to a 14-month high as investors prepare for three-, 10- and 30-year securities this week.
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