VAT gaffe

BURBERRY’S chief executive Jonathan Akeroyd said the UK was at a “competitive disadvantage for global shoppers” after scrapping the VAT tax break for tourists. Sales to foreign visitors rose by 19 per cent in London during the first quarter of 2023, but increased by 300 per cent in Paris and 43 per cent in Milan, Akeroyd pointed out.

Going down

THE UK government’s holding in NatWest now stands at below 40 per cent after selling £1.26 billion (€1.45 million) of its stake. The government has set itself a 2026 target for reprivatising the bank, 18 years after the taxpayer paid £46 billion (€53 billion) to save NatWest Group, then known as Royal Bank of Scotland Group, from collapse.

Euro EUR/GBP: Down from £0.88 to £0.87

EUR/USD: Down from $1.10 to $1.07

The euro weakened at the end of April after Eurozone GDP missed forecasts, before the start of May brought more headwinds for the single currency as markets responded to the European Central Bank’s (ECB) interest rate decision. The ECB slowed its pace of policy tightening and did not commit to further rate hikes, triggering an EUR selloff.

Hawkish comments from ECB officials cushioned the euro’s losses. ECB President Christine Lagarde insisted that ‘we’re not pausing’, while other rate setters advocated more tightening.

However, consistently weak German data raised fresh concerns about a recession in the Eurozone’s largest economy, keeping pressure on the common currency.

A strengthening US dollar also

Business Extra

Crashing down

VIRGIN ORBIT, billionaire Richard Branson’s satellite launch company, is shutting down and selling off assets worth $36 million ( €33.1 million ) Branson had little luck with the venture, which included the failed orbital mission in the UK that received funding of more than $20 million ( €18.5 million ) from British taxpayers.

US project

COSENTINO, the marble multinational based in Almeria, will build a production plant in the US. The company announced that it has signed an agreement with city hall in Jacksonville ( Florida ) to acquire land for the future factory which will require a total investment of approximately $270 million ( €250 million).