Mpac Group’s (LSE:MPAC) stock plummeted 26.8% on Tuesday after the packaging and automation firm issued a warning about its revenue outlook. The company now anticipates that its fiscal 2025 revenue will fall well short of earlier projections.
Mpac pointed to ongoing tariff uncertainties as the primary reason behind postponed customer orders during the second quarter. These order delays are expected to negatively affect the company’s revenue performance in the latter half of the year.
British equities started Tuesday on a positive note, with the FTSE 100 index gaining 0.2%. The British pound also extended its upward momentum, surpassing the $1.37 mark against the US dollar. Meanwhile, major economic data revealed a notable drop in UK house prices for June.
At 07:23 GMT, the FTSE 100 showed modest gains, while Germany’s DAX index slid nearly 1%, and France’s CAC 40 dipped 0.2%.
J Sainsbury plc (LSE:SBRY)reported a 4.9% rise in retail sales, excluding fuel, for the first quarter of 2025/26. Over the 16 weeks ending June 21, like-for-like sales (excluding fuel) grew by 4.7%. Grocery sales climbed 5%, and sales in general merchandise and clothing increased by 4.2%. Argos, a Sainsbury’s subsidiary, also saw a 4.4% boost in sales.
The company reaffirmed its full-year outlook, aiming for approximately £1 billion in underlying retail operating profit and over £500 million in retail free cash flow, noting that profits would be weighted more heavily in the latter half of the year.
Mortgage lender Nationwide reported a 0.8% decrease in UK house prices in June, marking the steepest monthly drop in over two years. This decline surpassed economists’ predictions of a 0.2% increase and coincided with the expiration of a property transaction discount.
Shop prices across the UK rose 0.4% year-on-year in June, according to the British Retail Consortium, reversing a decline of 0.1% seen in May. This uptick was mainly driven by a 3.7% rise in food prices, the strongest annual increase since March 2024.
In corporate news, UK competition authorities approved Aviva’s (LSE:AV.) £3.7 billion takeover of Direct Line (LSE:DLGD), which will establish the largest motor insurer in Britain. The Competition and Markets Authority confirmed it would not pursue further investigation into the deal.
Aviva (LSE:AV.)has received the green light from the UK’s competition authority to proceed with its purchase of fellow insurer Direct Line (LSE:DLGD), marking the final regulatory clearance needed to complete the £3.7 billion ($5.08 billion) transaction.
On Tuesday, the Competition and Markets Authority (CMA) announced it would not escalate the review to a more detailed phase-two investigation, following an initial assessment of the deal’s potential impact on competition within the UK insurance sector.
The acquisition officially closed on Tuesday, with shares of Direct Line expected to be removed from trading and canceled by Thursday.
Aviva, which also manages assets alongside its insurance business, had launched a formal bid for Direct Line toward the end of last year. This approval clears the path for the firms to move forward with their integration plans.
U.S. stock futures edged down Tuesday following a strong rally on Monday when global markets reached new intraday highs. Investors are now weighing developments in U.S.-Canada trade negotiations and a softer dollar, while preparing for important upcoming economic data later this week.
By early Tuesday morning (07:32 GMT), Dow futures were down 30 points (-0.1%), S&P 500 futures slipped 11 points (-0.2%), and Nasdaq 100 futures lost 56 points (-0.3%). Monday’s gains had been fueled by optimism around a potential restart of trade talks between the U.S. and Canada, although concerns linger over a massive tax and spending bill currently under debate in the Senate that could add significantly to the national debt, which already stands at $36.2 trillion.
Despite some headline-driven fluctuations during the day, analysts at Vital Knowledge noted, “there is limited immediate anxiety regarding either the reconciliation bill or tariff developments.”
President Donald Trump ratcheted up his criticism of Federal Reserve Chair Jerome Powell on Monday, sending him a strongly worded handwritten letter urging a swift and substantial cut in interest rates. Along with the letter, Trump included a chart comparing interest rates set by central banks worldwide, arguing the U.S. should aim for borrowing costs around 1% or lower.
Trump’s message was clear: “As usual, too late,” he wrote, lamenting that the country is losing “hundreds of billions” due to the Fed’s current rate stance. This comes after the Fed decided last month to maintain rates between 4.25% and 4.5%, with Powell adopting a cautious wait-and-see approach amid uncertainties linked to Trump’s aggressive tariff policies.
Frustrated with what he views as a slow response compared to other central banks, Trump has launched repeated verbal attacks on Powell and is reportedly considering appointing a potential successor before the end of the year — a move that could undermine Powell’s authority, analysts say.
Jerome Powell will take center stage again Tuesday at a high-profile panel discussion during the European Central Bank’s annual forum in Sintra, Portugal. Alongside Powell will be ECB President Christine Lagarde and central bank leaders from Japan, the U.K., and South Korea.
The discussion is expected to touch on the evolving role of the U.S. dollar as the dominant global reserve currency, especially given its sharp decline this year—the worst start since the 1970s—largely driven by Trump’s protectionist trade stance.
Uncertainty will likely dominate the forum, as Lagarde noted in her opening remarks Monday, emphasizing that unclear direction on U.S. tariffs and the President’s fiscal plans remain major factors affecting the global economy.
According to the Financial Times, the U.S. administration is shifting its trade strategy toward narrower, more targeted agreements to secure quick progress before a looming July 9 deadline, when punitive reciprocal tariffs could be reinstated.
Rather than pursuing the original goal of 90 broad trade agreements during the 90-day tariff pause that began April 2, officials are now seeking “agreements in principle” on limited issues with select countries. This approach aims to avoid tariffs as high as 50%, although a baseline tariff of 10% would remain while broader negotiations continue.
Trade talks remain complex, with the administration still weighing the possibility of imposing tariffs on key sectors even as it pursues these phased deals.
Crude oil prices showed choppy trading, dropping after hitting a three-week low amid easing supply concerns and expectations of increased output from OPEC+.
At 03:38 ET, Brent crude futures were down 0.4% to $66.47 a barrel, having earlier hit their lowest point since June 11, just before the Israel-Iran conflict began. U.S. West Texas Intermediate futures fell 0.5% to $64.81 a barrel.
The OPEC+ group is scheduled to meet on July 6. Reuters reported last week that the alliance plans to boost production by 411,000 barrels per day in August, following similar increases in May, June, and July. This would bring total supply increases for the year to 1.78 million barrels per day, though still less than the volume of cuts implemented over the past two years.
Gold prices climbed sharply in Asian markets on Tuesday, driven by increased demand for safe-haven assets as investors grapple with uncertainty surrounding U.S. trade negotiations ahead of President Donald Trump’s looming July 9 tariff deadline. A softer U.S. dollar further boosted the precious metal’s appeal.
Spot gold gained 0.8%, reaching $3,328.71 per ounce, while August gold futures rose 1% to $3,339.70 by early Tuesday morning ET (06:10 GMT). This came on the heels of a 1.5% rise the previous day, recouping much of last week’s losses following the Israel-Iran ceasefire.
The upcoming expiration of a 90-day tariff pause on July 9 has investors on edge. Since the pause began on April 2, the U.S. has finalized only two trade agreements—with China and the UK. Nations without a deal by the deadline risk having reciprocal tariffs reinstated, potentially up to 50%.
According to a Tuesday report by the Financial Times, U.S. trade officials are now focusing on narrower, more targeted agreements to secure quick progress before the deadline. The administration is also still weighing tariffs on several critical sectors.
Adding to market tensions, President Trump has threatened new tariffs on Japan, while U.S. Treasury Secretary Scott Bessent warned that despite ongoing negotiations, many countries could still face steep tariff hikes. Bessent expressed optimism that a flurry of trade deals might still be reached ahead of the cutoff.
This mix of uncertainty and potential for new tariffs has driven investors toward traditional safe-haven assets like gold.
The U.S. Dollar Index remained weak during Asian trading, hovering near three-year lows, which supported gains in precious metals.
Silver futures inched up 0.4% to $36.00 per ounce, while platinum futures slipped 0.4% to $1,360.45. Copper also posted gains: London Metal Exchange copper futures rose 0.2% to $9,839.95 per ton, and U.S. copper futures climbed 1.2% to $5.1145 per pound.
The rally in copper was bolstered by a private survey revealing unexpected expansion in China’s Caixin manufacturing PMI for June. This improvement in trade conditions lifted sentiment in the world’s largest consumer of copper.
Oil prices dropped on Tuesday to their lowest point in three weeks, returning to levels last seen before the recent conflict between Israel and Iran. This decline is driven by easing worries over supply disruptions and anticipation of an upcoming production increase from OPEC and its allies.
Brent crude for September delivery dipped 0.3% to $66.57 per barrel, while West Texas Intermediate futures also fell 0.3%, settling at $63.64 per barrel as of 9:17 PM ET. Brent prices hit their lowest mark since June 11, just prior to the outbreak of hostilities in the Middle East.
A ceasefire agreement between Israel and Iran appears to be holding, helping to ease tension in the oil markets.
Investor attention is now focused on the Organization of the Petroleum Exporting Countries and its partners, collectively known as OPEC+, who are expected to convene later this week. The group is widely anticipated to continue its gradual rollback of production cuts that have been in place for two years.
Recent reports suggest that OPEC+ plans to boost output by approximately 411,000 barrels per day in August, following similar incremental increases in May, June, and July. This would bring the total increase for 2025 to around 1.78 million barrels per day. However, this production boost remains smaller than the volume cut by the alliance during the past two years.
The expected increase signals a shift towards raising supplies in response to sustained pressure from weaker oil prices. Leading producers within OPEC+, including Saudi Arabia and Russia, are also keen on maintaining discipline within the group to prevent excessive production that could further depress prices.
Meanwhile, market jitters persist over US trade policies, with the looming July 9 deadline set by President Donald Trump to secure new trade agreements. On Monday, Trump criticized Japan over its rice import policies and suggested that trade negotiations with Tokyo might be terminated.
US Treasury Secretary Scott Bessent also warned that, despite ongoing talks, some countries—including Japan and India—could face tariffs exceeding 20%. This has raised concerns that escalating trade tensions could dampen global economic growth and, consequently, reduce demand for oil.
Tesla Inc (NASDAQ:TSLA) experienced a notable decline in premarket trading on Tuesday, as tensions reignited between U.S. President Donald Trump and Tesla CEO Elon Musk. Trump accused Musk of receiving disproportionate government subsidies and called for a federal review of Tesla’s support.
According to 24-hour trading data from Robinhood (NASDAQ:HOOD), Tesla’s shares tumbled as much as 6.4%, falling to $297.35.
On his social media platform Truth Social, Trump urged the Department of Government Efficiency (DOGE) to investigate the extent of federal assistance granted to Tesla. He cautioned, “Elon may get more subsidy than any human being in history.”
Trump further asserted, “Without subsidies, Elon would probably have to close up shop and head back home to South Africa.”
Elon Musk responded swiftly on X, declaring, “I am literally saying CUT IT ALL. Now.”
The conflict between Trump and Musk largely centers on Musk’s vocal opposition to a sweeping tax and spending cut bill that Trump supports and which is currently under Senate consideration.
Musk’s objections focus on the bill’s potential to significantly increase federal debt and expenditures. He also warned that it could hinder his ongoing efforts with the Department of Government Efficiency to reduce government spending.
Independent analysis suggests that the bill could add $3.3 trillion to the national debt over the next decade if passed in its current form.
Musk has repeatedly condemned the legislation as overly large and inefficient. His stance was a key factor in a public fallout with Trump in early June, which culminated in Musk stepping down from his role at DOGE.
Mpac Group PLC (LSE:MPAC) has issued a trading update revealing that US tariffs and economic uncertainty have caused a significant slowdown in order intake during Q2 2025. In response, the company is fast-tracking its consolidation efforts in the US to optimize costs and enhance operational efficiency. This includes closing its Cleveland facility and reducing capacity in Canada. Despite these headwinds, Mpac remains focused on protecting operating margins and has taken steps to manage debt and maintain cash flow.
Outlook
The company faces financial challenges such as declining free cash flow and higher leverage. Technical indicators point to bearish momentum. While recent corporate actions are positive, they do not significantly affect the overall score.
About Mpac Group PLC
Mpac Group PLC specializes in high-speed packaging and automation solutions worldwide, delivering innovative equipment and services designed to optimize production processes across multiple industries.
Burford Capital (LSE:BUR) reported two key developments affecting its operations. The US Senate Parliamentarian ruled that proposed tax provisions concerning litigation finance cannot be included in the budget reconciliation bill, potentially impacting Burford’s financial planning and strategies. Separately, a US District Court ordered Argentina to transfer a substantial portion of its YPF shares into a global custody account, marking progress in Burford’s ongoing enforcement efforts against Argentina. However, further legal proceedings are expected.
Outlook
Burford Capital maintains a strong financial position and recent earnings have been positive. However, technical indicators suggest bearish trends, and the company faces some regulatory uncertainties. Valuation remains fair, but low dividend yield and operational risks temper the outlook. Nonetheless, ongoing corporate developments support a cautiously optimistic stance.
About Burford Capital
Burford Capital is a global leader in finance and asset management focused on the legal sector. It specializes in litigation finance, risk management, asset recovery, and legal advisory services. Listed on both the New York and London Stock Exchanges, Burford operates through a worldwide network serving corporations and law firms.
Kitwave Group PLC (LSE:KITW) reported a 26.7% rise in revenue, reaching £376.2 million for the six months ending April 2025, fueled by strategic acquisitions and investments in infrastructure. While the company achieved record revenue and operating profits, it has tempered profit forecasts for the year due to rising operational costs, macroeconomic pressures dampening consumer confidence, and increased employer National Insurance contributions.
The recent acquisition of Creed Foodservice and the launch of a new distribution center in the South West have bolstered Kitwave’s market position. However, the company expects these challenges to impact overall financial performance in the short term. Despite this, Kitwave remains optimistic about its long-term strategy, emphasizing service-driven growth supported by a solid balance sheet.
Outlook
Kitwave’s outlook is underpinned by strong financial results, positive technical signals, and ongoing corporate developments. Its growth prospects benefit from strategic acquisitions and confident leadership, though careful management of debt and cash flow will be essential to sustain momentum.
About Kitwave Group PLC
Kitwave Group PLC is a UK-based delivered wholesale business specializing in the distribution of impulse products, frozen, chilled and fresh foods, alcohol, groceries, and tobacco. Serving around 46,000 mainly independent customers—including convenience stores, leisure venues, vending operators, and foodservice providers—Kitwave operates through a network of 37 depots across the UK. The company has expanded through a combination of organic growth and strategic acquisitions of complementary businesses.