Investors have been piling into gold-backed funds in recent weeks, helping to push bullion to a series of record highs.<\/strong><\/p>\nThe World Gold Council has reported that global physically backed gold exchange traded funds (ETFs) recorded their largest monthly inflow in September, resulting in the strongest quarter on record.<\/p>\n
Their data shows that $26bn flowed into gold ETFs in July-September.<\/p>\n
The Council explains:<\/p>\n
North American investors led the charge for most of the quarter; at US$16.1bn, the inflow represents the largest Q3 and second largest quarter on record.<\/p>\n
European funds also saw hefty buying and registered the region\u2019s second-strongest quarter (US$8.2bn), coming in just US$74mn shy of their record set in Q1 2020. Asia buying slowed during the quarter (US$1.7bn), while funds in other regions (US$28.2mn) were relatively flat.<\/p>\n
<\/span>A chart showing inflows to gold ETFs<\/span> Illustration: World Gold Council<\/p>\nWhy? They point to \u201congoing trade, policy, and geopolitical risks\u201d, which don\u2019t appear to be abeting, as well as persistent dollar weakness.<\/p>\n
They also suggest that \u201ccontinued stagflation fears in the UK\u201d could be another key factor attracting gold ETF inflows.<\/p>\n
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Updated at\u00a008.25 EDT<\/p>\n
Back in the markets, the pound has dipped to its lowest level in over a week against the US dollar.<\/strong><\/p>\nSterling has slipped by almost a cent today, touching $1.3389, the lowest since 29 September (last Monday).<\/p>\n
That\u2019s mainly due to dollar strength, though, point out Fiona Cincotta<\/strong>, senior markets analyst at City Index:<\/strong><\/p>\nThe US dollar is rising, boosted by the weakness of the yen and the euro due to political and fiscal concerns in France and Japan.<\/p>\n
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Business and Trade Secretary Peter Kyle <\/strong>has welcomed this morning\u2019s news that JLR will resume some manufacturing operations tomorrow.<\/p>\nKyle<\/strong> says:<\/p>\n\u201cThis is very welcome news for workers and suppliers, but I know many are still under pressure, particularly further down the supply chain.<\/p>\n
My focus will remain on helping JLR resolve this cyber incident, making further progress towards restarting production, and supporting the long-term health of our automotive supply chain.\u201d<\/p>\n
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Unsurprisingly, Jaguar Land Rover\u2019s sales have tumbled in the last quarter due to the shutdown triggered by its cyber-attack.<\/strong><\/p>\nJLR<\/strong> has reported that its retail sales in the last quarter fell by 17% to 85,495 units in the three months to 30 September. Wholesale deliveries fell by 24%.<\/p>\nJLR<\/strong> says:<\/p>\nVolumes reduced during a challenging quarter, reflecting production stoppages since the start of September resulting from the cyber incident, the planned wind down of legacy Jaguar models ahead of the launch of new Jaguar and incremental US tariffs impacting JLR\u2019s US exports.<\/p>\n
The carmaker adds that the UK was particularly impacted by the planned wind down of legacy Jaguar models and the cyber incident, which halted production for the last five weeks (with a partial restart now set for tomorrow).<\/p>\n
JLR<\/strong> reports:<\/p>\nCompared to the prior year, retail volumes for the second quarter were down in all markets, comprising the UK (-32.3%), North America (- 9.0%), Europe (-12.1%), China (-22.5%), MENA (-15.8%) and Overseas (-4.1%)<\/p>\n
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Emily Sawicz, <\/strong>director and industrials senior analyst at consultancy RSM UK<\/strong>, has warned that the European Commission\u2019s proposal to impose a 50% tariff on steel imports worldwide poses \u201ca significant threat to the UK steel industry\u201d.<\/p>\nSawicz <\/strong>explains:<\/p>\nThe EU accounts for around 75% of UK steel exports, so these tariffs risk cutting off access to the UK\u2019s largest and most strategically important market at a time when the sector is already under pressure from global competition and rising energy costs.<\/p>\n
\u201cDespite the UK government securing quarterly tariff-free quotas for certain steel categories, there remains uncertainty around which products are covered and how long these exemptions will last. This uncertainty will create a ripple effect across other industries including construction, automotive, real estate and energy, all of which rely on stable supply chains and access to raw materials.<\/p>\n
In addition, while steel accounts for just 0.1% of UK production, it is strategically important for overall productivity, particularly in growth-driving industries responsible for delivering housing and infrastructure.<\/p>\n
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UK steel unions slam EU tariff plan<\/h2>\n
Lisa O\u2019Carroll<\/span><\/p>\nThe UK steel workers union has hit out against EU proposals to introduce a 50% tariff on foreign imported steel as part of a bloc-wide effort to save their own industry in the face of competition from China and Donald Trump\u2019s 50% tariffs (see previous post):<\/strong><\/p>\nAlasdair McDiarmid<\/strong>, assistant general secretary at steelworkers\u2019 union Community<\/strong>, said:<\/p>\n\u201cGiven that around 80% of the UK\u2019s steel exports go to Europe, the new measures proposed by the EU represent an existential threat to our industry, as well as the thousands of jobs and communities it supports right across the country.\u201d<\/p>\n
The plans for tariffs will be announced by the EU trade and industry commissioners, Maros<\/strong> Sefcovic<\/strong> and St\u00e9phone<\/strong> S\u00e9journ\u00e9<\/strong> after 4pm today.<\/p>\nWhile the UK was spared the 50% tariff on steel imports Trump imposed in June, the UK steel industry is also struggling against cheap Chinese imports and a new 25% tariffs on steel imports imposed by the US president before June.<\/p>\n
McDiarmid<\/strong> said the UK government was \u201cacutely aware of the grave risks the EU proposal poses\u201d and called on it to urgently negotiate a country-specific quota.<\/p>\nSectoral tariff-free quotas for foreign imports can result in de facto blockages, as British farmers can testify.<\/p>\n
Negotiators to the UK-US tariff deal revealed earlier this year that the quota for third country imports of beef didn\u2019t work as it was filled up by Brazil and others in South America.<\/p>\n
They were able to use warehouses in Mexico to transport beef quickly to the US filling up the US quota and beating British farmers who needed more time to ship their own beef across the Atlantic.<\/p>\n
Under the UK-US deal, British farmers now have UK-specific quota for beef imports.<\/p>\n
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Updated at\u00a006.13 EDT<\/p>\n
EU to raise tariffs on foreign steel imports<\/h2>\n
Lisa O\u2019Carroll<\/span><\/p>\nThe EU is to take a leaf out of Donald Trump\u2019s playbook and increase tariffs on foreign steel imports as the local industry, particularly in Germany, is threatened with \u201ccollapse\u201d in the face of cheap Chinese imports and 50% punitive tariffs imposed by the US in June.<\/strong><\/p>\nIn a major shift in policy, the European Commission is expected to propose doubling the current 25% tariff to 50% on foreign steel while at the same time drastically reducing the current quota for duty-free imports.<\/p>\n
The bloc\u2019s industry commissioner St\u00e9phane<\/strong> S\u00e9journ\u00e9<\/strong> in Strasbourg said this morning:<\/p>\n\u201cThe European steel industry was on the verge of collapse – we are protecting it so that it can invest, decarbonise, and become competitive again.\u201d<\/p>\n
He insisted the move was not the same as Trump\u2019s blunt 50% steel tariff that applies, with some exceptions such as the UK, across the globe.<\/p>\n
The EU tariff, in contrast, will only apply after a quota of foreign imports has been filled, with all foreign imports below that duty-free.<\/p>\n
Alongside the proposal being presented after 4pm in Strasbourg on Tuesday, the EU is seeking a \u201cmetals alliance\u201d with the US to ring-fence their respective economies from over-capacity.<\/p>\n
As the 27-nation EU pushes ahead with decarbonising industry, steel is critical for renewable energy equipment, from solar panels to wind turbines, and for electric cars.<\/p>\n
\u201cThe European Union needs to act now, and decisively, before all lights go out in large parts of the EU steel industry and its value chains,\u201d said industry group Eurofer\u2019s<\/strong> president Henrik<\/strong> Adam<\/strong>.<\/p>\nShare<\/p>\n
Updated at\u00a005.48 EDT<\/p>\n
UK investors quit equity funds at record pace as they flee sky-high stock markets<\/h2>\n
UK investors have pulled a record amount of cash out of equity funds in the last three months, fretting that valuations have soared too high, new data shows.<\/strong><\/p>\nCalastone<\/strong>, the largest global funds network, has reported this morning that investors \u201cran scared of sky-high stock markets\u201d in the third quarter of this year.<\/p>\nIts data shows that UK investors withdrew \u00a31.20bn of their equity-fund holdings in September, taking the total in the third quarter of 2025 to \u00a33.64bn, the worst of any three-month run on Calastone\u2019s<\/strong> 11-year record.<\/p>\nRather than holding equities, investors have been putting money into bonds and money market funds, which are perceived as safer than shares \u2013 at a time when many stock markets (including London, New York and Toyko) have been hitting record highs.<\/p>\n
Calastone<\/strong> reports that every major equity-fund sector except European-focused funds saw outflows in September, adding:<\/p>\nGlobal equity funds suffered an unprecedented fourth consecutive month of net selling (\u00a3203m), while North American funds shed \u00a3146m. Outflows from Asia-Pacific funds extended to their 29th consecutive month (\u00a3209m), while funds focused on the UK shed \u00a3691m.<\/p>\n
China, Japan, emerging markets, small cap and sector funds all saw outflows too. European funds stood out, as investors added a net \u00a3203m to their holdings.<\/p>\n
<\/span> Photograph: Calastone<\/p>\nEdward Glyn, <\/strong>head of global markets at Calastone, <\/strong>reports that \u201coutflows are on the rise again\u201d from UK funds, explaining:<\/p>\nDoubtless, seeing the UK market reach record levels while still not looking expensive has given some sellers pause for thought. But the doom loop of negative commentary on the UK economy with its dire fiscal position, soaring credit spreads, lack of growth and impending tax rises may now be winning out.<\/p>\n
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E-bike operator Lime boosts turnover<\/h2>\n
Lauren Almeida<\/span><\/span>Lime rental bikes parked on a pathway at Eel Brook Common in Fulham, London.<\/span> Photograph: Kevin Coombs\/Reuters<\/p>\nThe electric bike sharing start-up Lime has reported a 75% rise in turnover to \u00a3111.3m in the UK, as the popularity of its green bikes and scooters continues to grow.<\/strong><\/p>\nWhile more people are hopping on Lime<\/strong> bikes, the UK arm of the company reported a 40% drop in pre-tax profit to \u00a31.7m in its 2024 financial year, which was largely driven by a 79% rise in its administrative expenses.<\/p>\nLime<\/strong> bikes have become an increasingly popular mode of transport in London, although the company has come under fire from local authorities over bikes being discarded on the street. In some areas, there are geofences that stop bikes from being parked and freeze their electrical functions to discourage people from cycling through.<\/p>\nLime<\/strong>, which is based in San Francisco, operates fleets of e-bikes and scooters in 280 cities around the world. Over the summer there were reports that it was considering a stock market floatation, with estimates suggesting that it could be valued at about $500m.<\/p>\nLast year, chief executive Wayne Ting <\/strong>told the Sunday Times that Lime was \u201cready\u201d for a float in New York, but that the IPO market at the time was \u201clargely shut\u201d.<\/p>\nShare