Business

Gold and silver prices surged to fresh record highs after US President Donald Trump threatened to impose new tariffs on a group of European countries opposing his proposed takeover of Greenland, triggering a renewed rush into safe-haven assets.

Gold climbed to a peak of $4,689.39 (£3,499) an ounce on Monday, while silver touched $94.08 an ounce, as investors sought protection from escalating geopolitical and trade tensions. Precious metals are traditionally viewed as a store of value during periods of uncertainty, and both have already enjoyed a strong rally over the past year.

The move came after Trump announced that a 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands and Finland would take effect from 1 February, unless a deal on Greenland is reached. He warned the levy could rise to 25% at a later stage. Reports suggest the EU is preparing a potential €93bn (£80bn) retaliatory tariff package in response.

While bullion prices jumped, equity markets were more subdued. Asian stocks slipped modestly, with Japan’s Nikkei closing 0.6% lower. In Europe, London’s FTSE 100 edged down 0.1%, though mining stocks benefited from the rally in precious metals, with Fresnillo and Endeavour among the risers.

Elsewhere, markets more exposed to trade tensions fell more sharply. Germany’s Dax dropped 1%, weighed down by carmakers including BMW, Mercedes-Benz and Volkswagen. France’s Cac 40 slid 1.2%, with luxury groups under pressure: LVMH fell 3.8% and Hermès dropped 2.5%.

By contrast, European defence stocks traded higher, reflecting heightened geopolitical risk. Germany’s Rheinmetall and France’s Thales both posted gains.

US markets were closed for a public holiday, limiting global trading volumes.

Susannah Streeter, chief investment strategist at Wealth Club, said the rally underlined gold’s renewed appeal. “Gold has hit fresh record highs on its glittering run upwards,” she said. “The precious metal is holding even more allure as a safe haven as worries spread about the repercussions of aggressive US trade and geopolitical policies.”

Gold prices rose by more than 60% last year, driven by persistent global tensions and economic uncertainty, a backdrop that now looks set to continue into 2026.

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Gold and silver hit record highs as Trump tariff threat rattles markets

Elon Musk has launched a $134 billion lawsuit against OpenAI and Microsoft, claiming both companies unjustly profited from his early backing of the artificial intelligence pioneer and abandoned its founding mission.

In a federal court filing on Friday, lawyers for Elon Musk said OpenAI gained between $65.5 billion and $109.4 billion as a result of Musk’s initial funding, reputation and strategic input after he co-founded the organisation in 2015. Microsoft, which owns an estimated 27 per cent stake in OpenAI, is alleged to have benefited by between $13.3 billion and $25.1 billion.

Musk’s legal team argues that without his early involvement, OpenAI, now best known for ChatGPT,  would not exist in its current form. His lawyer, Steven Molo, said Musk provided the “bulk of the seed funding”, lent credibility to the venture and shared expertise in scaling technology businesses.

Musk left OpenAI in 2018 following disagreements over its direction and governance. He now claims the company breached its original non-profit mission by restructuring itself into a more commercially oriented entity, a move designed to attract vast sums of capital to fund its AI ambitions.

OpenAI completed a major restructuring last year alongside Microsoft, valuing the business at $500 billion. Under the new structure, a non-profit OpenAI Foundation will hold equity in a for-profit arm that can raise funds from external investors.

OpenAI dismissed Musk’s claim as “unserious”, accusing him of running a sustained harassment campaign against the company. Microsoft and OpenAI jointly asked the court to restrict the evidence presented by Musk’s expert witness, financial economist C Paul Wazzan, arguing the damages estimates are speculative, unverifiable and misleading.

The companies contend that Musk’s attempt to reclaim “wrongful gains” amounts to an unprecedented transfer of value from a non-profit organisation to a former donor who is now a competitor in the AI race.

The case is due to be heard by a jury in Oakland, California, with the trial expected to begin in April. The dispute adds another chapter to the increasingly bitter rivalry between Musk and Sam Altman, and highlights the growing legal and commercial tensions surrounding the global AI boom.

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Musk sues OpenAI and Microsoft for up to $134bn over ‘wrongful gains’

A pilot of live facial recognition technology in south London has helped cut crime and led to more than 100 arrests, according to the Metropolitan Police, as the force prepares to defend its use of the technology in the High Court.

The three-month trial in Croydon, which began in October, marked the first time the Met has deployed fixed live facial recognition (LFR) cameras mounted on street furniture rather than using mobile vans. Fifteen cameras were installed along two sections of North End, one of the borough’s busiest shopping streets.

The Met said the system has been deployed on 13 occasions during the pilot, with cameras only switched on when officers are present. During that period, 103 arrests were made, with police claiming only one false alert, which did not result in an arrest.

According to the force, around a third of those arrests were linked to offences against women and girls, including sexual assault and strangulation. Other arrests included individuals wanted for kidnap, breach of sexual harm prevention orders, and long-outstanding assault cases.

Superintendent Luke Dillon said overall crime in the Fairfield ward fell by 12 per cent during the pilot period, with notable reductions in shoplifting and robbery. He added that the fixed camera setup allowed officers to operate more efficiently, with arrests made on average every 34 minutes during deployments.

The technology works by mapping facial features and comparing them against police watchlists. The Met said biometric data relating to members of the public who are not wanted by police is immediately deleted.

However, the trial comes amid growing scrutiny of police use of facial recognition. Next week, the force faces a High Court challenge over its deployment of LFR after a man was wrongly identified and stopped near London Bridge last year. Civil liberties campaigners argue the technology poses serious risks to privacy and lacks a clear legislative framework.

The Equality and Human Rights Commission, which has been granted permission to intervene in the case, has said the Met’s current use of LFR breaches human rights law. The force has said it is confident the technology is being used lawfully and proportionately, and insists it has tested its algorithms for bias.

Despite describing LFR as a “game-changing” crime-fighting tool, the Met said there are currently no plans to expand the fixed-camera pilot beyond Croydon.

Tony Kounnis, chief executive of Face Int UK & Europe, said the results highlighted the potential of facial recognition when deployed responsibly.

“This is a strong endorsement of what facial recognition technology can deliver as accuracy improves,” he said. “But it is essential that oversight, transparency and data protection remain central. Without that, there is a real risk of eroding public trust, regardless of the benefits.”

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Facial recognition pilot cuts crime in south London, says Met

Fresh from his nerve-shredding run on BBC hit The Traitors, Brian Davidson has swapped the infamous roundtable for the photographer’s studio, and the move has paid off handsomely.

Davidson, a professional photographer and owner of Glasgow-based Studio Snap, is celebrating his strongest trading year to date, with revenues up more than 70 per cent in 2025. The surge follows his memorable appearance on series two of The Traitors, which turned him into a familiar face for millions of viewers, and, unexpectedly, a powerful brand amplifier for his business.

Studio Snap, which specialises in wedding, family and event photography, has benefited from what Davidson describes as the “Traitors effect”. Since the show aired, he has built a substantial social media following by offering sharp, insider analysis of subsequent series, with his commentary striking a chord among the programme’s highly engaged fanbase.

That digital momentum has translated into commercial success. Davidson’s platforms have become a go-to destination for fans dissecting each episode, helping him grow his audience far beyond traditional photography clients. The expanded reach has led to collaborations with a number of high-profile brands, positioning Davidson as a content creator as well as a business owner, all while continuing to scale Studio Snap.

“The experience on The Traitors was intense and surreal,” Davidson said. “Coming out of that environment gave me a fresh perspective. I went from one of the most stressful roundtables imaginable straight back into the studio, and I’ve poured that energy into the business. To see Studio Snap deliver a record year is the ultimate win.”

While his online presence has opened new doors, Davidson is clear that photography remains at the heart of his ambitions. “I love that I can keep one foot in the world of The Traitors through my analysis videos, the fans are incredible,” he said. “The brand work has been exciting, but photography will always be my main passion.”

The business has also been buoyed by a string of industry awards, further reinforcing Studio Snap’s reputation for relaxed, professional photography across Scotland and beyond.

With bookings already stacking up for the year ahead and his digital following continuing to grow, Davidson is entering 2026 with momentum on multiple fronts, proof that reality TV exposure, when paired with a strong core business, can deliver more than fleeting fame.

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From roundtable to the camera: The Traitors’ Brian Davidson celebrates record-breaking year for Studio Snap

Rachel Reeves is opening up Britain’s corporate bond market to small investors as part of a wider push to channel more household savings into UK businesses and revive London’s capital markets.

The chancellor will on Monday launch a government-backed initiative designed to make corporate bonds accessible to retail investors for the first time in years, scrapping barriers that had effectively restricted the market to institutions and wealthy individuals. Under the new rules, individuals will be able to invest in corporate bonds from as little as £1, compared with the previous £100,000 minimum that had become standard after EU-era regulations.

Speaking at an event hosted by the London Stock Exchange, Reeves is expected to declare the start of what she calls “a new golden age” for the City, framing the reforms as central to Labour’s ambition to boost productive investment and economic growth.

At the heart of the plan is a new kitemark system aimed at reassuring novice investors. The London Stock Exchange will introduce so-called “Access Bonds”, a designation that allows qualifying corporate bonds to be clearly identified on retail investment platforms. Alongside this, the Financial Conduct Authority will oversee a more stringent classification known as Plain Vanilla Listed Bonds, or PVLBs, reserved for straightforward bond structures with standardised terms.

Ministers hope the changes will revive direct retail participation in an asset class that has virtually disappeared from the UK. While British savers can easily buy government debt, direct ownership of corporate bonds is negligible, in stark contrast to the United States, where households hold more than $6 trillion of debt securities.

Officials argue that corporate bonds should appeal to cautious investors looking for predictable income. Blue-chip issuers typically offer yields at least a percentage point higher than government bonds, with repayment terms fixed over periods of two, five or ten years. Although bond prices can fluctuate with interest rates and inflation, default risk among large, established companies is seen as relatively low.

Banks, energy groups and major retailers including Lloyds, HSBC, BP, Shell, Tesco and BT are regular bond issuers, and many of their future offerings are expected to qualify for the new retail-friendly labels. Barclays estimates that around 13 million people in the UK currently hold £430 billion in cash savings that could, in principle, be suitable for investment in corporate bonds.

The reforms also form part of a broader overhaul of prospectus rules intended to make it easier and cheaper for companies to raise money in London. Thresholds for issuing a full prospectus have been significantly increased, particularly for secondary share issues and investment trusts, reducing regulatory friction and speeding up capital raising. The mandatory waiting period for IPO prospectuses has also been cut in half.

Industry figures say the package is long overdue. James Deal of RetailBook, which has long campaigned for greater retail participation in capital markets, described the reforms as a major step forward, coming six years after they were first recommended in a review led by former EU commissioner Jonathan Hill.

Some retail platforms have privately expressed concerns that new labels and acronyms could add complexity to an already jargon-heavy market. However, the exchange is pressing ahead with a public education drive under the banner “Bond With Britain”, aimed at improving understanding of how bonds work and the risks involved.

Reeves is expected to tell the audience that London’s financial sector is showing renewed strength, pointing to record highs in the FTSE 100 and growing international interest in UK listings. “Two years ago, some said the City’s best days were behind it,” she will say. “They were wrong.”

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Reeves opens corporate bond market to small investors in bid to unlock UK savings

UK employers are being forced to reassess their healthcare and benefits strategies as demand for weight-management drugs surges among employees, according to new research.

More than a quarter of UK workers have already used a weight-management drug such as Ozempic, while two in five believe their employer should fund access to these treatments through workplace healthcare plans. As a result, 44 per cent of employers say they are now reviewing, or fundamentally redesigning, their healthcare provision.

The findings come from the Changing Face of Employee Health report by Howden Employee Benefits, which suggests that blockbuster GLP-1 drugs are becoming a defining issue in the future of workplace health.

Despite the rising pressure from staff, employers are caught in a financial bind. Almost nine in ten businesses say they are currently satisfied with the return on investment from their healthcare plans, yet half of those already covering weight-management drugs now see them as a growing cost concern. Nearly half expect those costs to rise further, with one in five businesses citing obesity-related conditions as the single biggest driver of increasing healthcare spend.

While only 5 per cent of employers expect these costs to ease next year, many acknowledge the long-term trade-off. Weight-related illnesses such as diabetes contribute significantly to sickness absence and lost productivity. Around 72 per cent of UK employers are already investing in preventative health measures, and some see controlled access to weight-management drugs as a way to reduce longer-term health risks and associated business costs.

However, the report warns that failing to adapt healthcare plans could create wider problems. With medical inflation forecast at 7 per cent in 2026, and combined cost increases of more than 10 per cent once general inflation is included,  employers face difficult decisions about which treatments to cover and where to draw the line.

Cheryl Brennan, managing director of Howden Employee Benefits, said the issue is no longer hypothetical. “The demand for these drugs is obvious, and employers simply can’t afford to ignore it. But the financial impact cannot be overlooked – this is already forcing business leaders to rethink plan design and budget allocations.”

She added that while the drugs offer significant health benefits, they should not be treated as a cure-all. “Weight-management drugs are not a silver bullet. They need to sit within a broader, more personalised health strategy with clear eligibility guardrails. Employers will also have to justify why they cover these treatments ahead of others that remain excluded.”

As employee expectations evolve, the report suggests workplace healthcare is entering a new phase, one where prevention, personalisation and tough financial trade-offs will define how benefits are structured over the coming years.

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Employers rethink healthcare benefits as weight-loss drugs reshape workplace provision

Rachel Reeves is preparing to channel tens of millions of pounds of public money into a British self-driving technology company as Labour moves to accelerate the rollout of autonomous vehicles on UK roads.

The £28bn National Wealth Fund (NWF), backed by the Treasury, is understood to be close to agreeing a major investment in Oxa, the Oxford-founded driverless vehicle start-up previously known as Oxbotica. The business was established in 2014 by Oxford University academic Professor Paul Newman and was the first company to trial autonomous vehicles on UK roads in 2016.

Oxa has raised more than £180m from private investors to date and focuses on developing software that can make existing vehicles autonomous, rather than manufacturing cars itself. Its technology is already used in driverless shuttle buses and industrial and logistics vehicles, positioning it as an infrastructure player in the emerging autonomous ecosystem.

The proposed investment would come via the National Wealth Fund, launched by Labour in 2024 as the successor to the UK Infrastructure Bank. While operationally independent, the fund is designed to support the government’s growth and industrial strategy, typically making direct investments of £25m to £50m to crowd in significantly larger sums of private capital.

Backing from the fund would mark one of the government’s most substantial direct bets on an artificial intelligence business to date, and would align with plans to begin trials of driverless taxis and buses on British roads later this year. Ride-hailing groups Uber and Lyft have already confirmed their intention to test autonomous vehicles under the UK’s new regulatory framework, while Tesla continues to pilot its Full Self-Driving software in Britain. Another UK firm, Wayve, which has raised more than £1bn, is also preparing public trials through a partnership with Uber.

Oxa’s latest funding discussions follow a £15m injection from existing backers in December, including BP’s venture capital arm, alongside talks over a further “frontier AI” investment round. In September, Nvidia chief executive Jensen Huang publicly praised the company as an “incredible autonomous driving business” and signalled interest in investing in its next round.

However, the company has faced financial pressures. IP Group, an early investor, revealed last year that it had cut Oxa’s valuation by around two-thirds to £120m, reflecting mounting losses and tougher market conditions for deep-tech start-ups.

The NWF has already committed more than £200m in equity investments and billions more in debt financing for clean energy and battery manufacturing projects. In its first year under Labour, it invested £3.6bn as part of the government’s wider effort to stimulate long-term growth.

Neither Oxa nor the National Wealth Fund commented on the prospective deal, and the Treasury declined to comment.

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Reeves set to back self-driving car firm with tens of millions in taxpayer funding

Amazon is carrying out tuberculosis (TB) testing at its Coventry fulfilment centre after a small number of workers were found to have the infectious lung disease.

The company confirmed that screening is taking place as a precaution, following the identification of several cases at the site, which employs around 2,000 people, according to the GMB union.

The UK Health Security Agency (UKHSA) began a targeted screening programme at the warehouse in September after a handful of workers were diagnosed with active, contagious TB last year. Amazon said that a further 10 employees subsequently tested positive for latent TB towards the end of 2025.

Latent TB means the bacteria are present in the body but the individual does not have symptoms and cannot pass the disease on. However, without treatment, latent TB can later develop into an active and infectious form.

Dr Roger Gajraj, a consultant in health protection at UK Health Security Agency, said the individuals identified with active TB were responding well to treatment and were no longer infectious.

“As a precaution, and in line with national guidance, we are offering testing to those who may have had closer contact with the affected individuals,” he said. “The overall risk remains low. TB is fully treatable with antibiotics, and we continue to work closely with Amazon to monitor the situation.”

Amazon said it had acted immediately after the initial cases were discovered. A spokesperson said: “We followed guidance from the NHS and UKHSA and made all potentially affected employees aware of the situation. Out of an abundance of caution, we are now running an expanded screening programme with the NHS. Nothing is more important than the safety and wellbeing of our team members.”

However, the GMB union has called for stronger measures. Amanda Gearing, a senior organiser for the union at the Coventry site, urged “immediate and decisive action”, including the temporary closure of the warehouse until infection control measures are fully in place.

The union said NHS staff attended the site this week to carry out blood tests on workers and that multiple cases had been reported. One employee told union representatives there were concerns that some migrant workers could be more vulnerable if they had not received TB vaccinations in their countries of origin.

Coventry City Council said it was encouraging residents to remain alert to symptoms amid a broader national rise in TB cases. A council spokesperson said: “TB testing and treatment is free to everyone on the NHS, regardless of immigration status. Anyone experiencing symptoms should contact their GP or NHS 111 without delay.”

Common symptoms of tuberculosis include a persistent cough lasting more than three weeks, fatigue, fever, night sweats and unexplained weight loss. The disease spreads through prolonged close contact with someone who has active TB.

According to government data published in October, TB notifications rose by 13.6 per cent in 2024 to 5,490 cases, bringing the UK close to the World Health Organization’s threshold for a low-incidence country.

The Coventry warehouse has previously been the focus of industrial unrest, with Amazon narrowly defeating a union recognition vote at the site in 2024.

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Amazon tests Coventry warehouse staff for tuberculosis after outbreak

President Donald Trump has reignited global trade tensions after announcing a fresh wave of tariffs on European exports, a move that businesses warn could disrupt supply chains, dent confidence and push up inflation in the United States.

Under the new plan, a blanket 10 per cent tariff will be imposed on “all or any goods” exported to the US from the UK, Denmark and other European countries from February 1. Trump has also threatened to raise those duties to 25 per cent from June 1 unless negotiations succeed over the US purchasing Greenland, a demand that has already been firmly rejected by Copenhagen and its allies.

Market analysts say the policy represents a sharp escalation in Trump’s confrontational trade strategy and comes at a delicate moment for the UK economy, which has only just returned to modest growth.

Susannah Streeter, chief investment strategist at Wealth Club, said the move had injected renewed uncertainty into global markets. She described the announcement as “migraine-inducing” for both politicians and companies that have already endured months of tariff brinkmanship.

“Just when there appeared to be a lull in the tariff storm, President Trump has whipped up fresh economic chaos,” Streeter said. “This is his modus operandi — unleash uncertainty and threats of more onerous measures to coerce nations to acquiesce to his demands.”

While there may be some relief that talk of military action has been dialled back, Streeter warned that the tariffs themselves look likely to persist. Given how entrenched positions are on Greenland’s future, she said the 10 per cent levy could remain in place for some time, with the risk of a jump to 25 per cent in June “highly possible”.

For exporters selling into the US, the implications are significant. Many firms have already struggled to absorb the cost of existing tariffs, leaving little room to cushion further increases. As a result, higher duties are likely to be passed on to American customers through higher prices.

“That risks lower demand and weaker sales for exporters,” Streeter said. “Some US importers may rush to bring forward orders ahead of June, creating a short-term bump, but longer term they are likely to look for cheaper suppliers elsewhere.”

The knock-on effects are already worrying UK businesses, where confidence has fallen sharply in recent months. Although recent data suggested the economy had begun to stabilise, analysts fear that renewed trade disruption could quickly undermine that progress.

The latest move is also expected to intensify inflationary pressures in the US. Higher prices are likely across a wide range of goods, from cars and chemicals to food products such as olive oil, as well as aircraft and medical equipment. This comes at a time when many US households are already feeling the strain of rising living costs.

Streeter warned that the tariffs could further inflame tensions between the White House and the Federal Reserve, as policymakers weigh the inflationary impact of trade barriers against pressure from Trump to cut interest rates more aggressively.

“Policymakers are likely to be even more cautious,” she said. “Tariffs ramping up again make it harder to justify faster rate cuts.”

For the UK, the episode is expected to strengthen calls for trade diversification. Many firms are already exploring new markets to reduce reliance on the US, mirroring a strategy adopted by China, which has boosted exports by forging alternative trading relationships. The latest tariff threat is also likely to reignite debate over closer trade ties with the EU as a way to offset damage from US policy swings.

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Trump’s new tariff threat risks chaos for companies and higher inflation in the US

Sir Keir Starmer has condemned Donald Trump’s threat to impose sweeping tariffs on the UK and other European allies over Greenland, calling the move “completely wrong” and warning it undermines Nato unity.

The intervention follows a statement by Donald Trump, who said the United States would introduce a 10 per cent tariff on goods from the UK and seven European countries from 1 February. The levies would rise to 25 per cent on 1 June unless a deal was reached to allow the US to purchase Greenland.

Trump said the tariffs would apply to Nato members, including the UK, France and Germany, that have deployed troops to the Arctic territory amid rising geopolitical tensions. In a post on his Truth Social platform, he accused European countries of travelling to Greenland “for purposes unknown” and described the situation as “very dangerous” for global security.

Responding on Saturday evening, Keir Starmer said the UK’s position was unequivocal.

“Our position on Greenland is very clear, it is part of the Kingdom of Denmark and its future is a matter for the Greenlanders and the Danes,” he said. “Arctic security matters for the whole of Nato, and allies should be working together to address the growing threat from Russia.”

Starmer added: “Applying tariffs on allies for pursuing the collective security of Nato allies is completely wrong. We will of course be pursuing this directly with the US administration.”

Opposition leaders across Westminster echoed the criticism, warning the move would damage British businesses and further strain transatlantic relations.

Kemi Badenoch, leader of the Conservatives, said the threat was misguided. “President Trump is completely wrong to announce tariffs on the UK over Greenland,” she said. “These tariffs will be yet another burden for businesses across our country. The sovereignty of Greenland should only be decided by the people of Greenland.”

Liberal Democrat leader Ed Davey said the episode exposed the fragility of the UK’s relationship with Washington. “Trump is now punishing the UK and Nato allies just for doing the right thing,” he said, urging Starmer to work more closely with European and Commonwealth partners to push back.

Even Nigel Farage, a long-time admirer of Trump, acknowledged the potential damage. “We don’t always agree with the US government and in this case we certainly don’t,” he said, adding that the tariffs would “hurt” the UK.

Senior Labour figures also used the moment to argue for a reset in Britain’s strategic posture. Stella Creasy, the Labour MP for Walthamstow, said Trump’s threats underlined the need for closer cooperation with Europe. “If we can’t rely on America and we don’t want to cosy up to China, the answer is to get serious about our strategic future with Europe,” she said.

Former national security adviser Peter Ricketts urged calm diplomacy, telling BBC Radio 4 that European governments should resist escalation and continue to make the case for collective Nato security. He noted that during the Cold War the US maintained a large military presence in Greenland without resorting to economic threats.

“The right way forward is cooperation, not tariffs and bluster,” Ricketts said, adding that any EU response would need to be coordinated at bloc level, limiting Trump’s ability to target individual member states.

The tariff threat comes at a sensitive moment for UK businesses, already grappling with weak growth, high borrowing costs and fragile export demand. Any new trade barriers with the US risk compounding those pressures, particularly for manufacturers and exporters reliant on transatlantic markets.

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Starmer condemns Trump’s Greenland tariff threat as ‘completely wrong’