Pound and UK bonds recovering after Starmer backs Reeves; US economy adds 147,000 jobs in June – business live

The UK government is facing criticism over its handling of the economy, with economists predicting that the recent sell-off has strengthened the position of Rachel Reeves, the Chancellor of the Exchequer. Despite this, No 10 has defended Reeves after a day of recriminations over the welfare bill fiasco. The boss of Currys, Alex Baldock, has urged the government not to increase taxes for retailers this year, warning it would lead to higher prices and dampen investment. Currys has reported a 37% jump in pre-tax profit to £162m and has revived dividend payments to shareholders. Baldock has cautioned the government to think carefully before making the situation worse. The prime minister has given his full backing to Reeves, but investors are still questioning whether she will stay in her position. The market reaction suggests that Reeves is needed at the Treasury to prevent a market response that could be disastrous for the government. However, doubts remain, and pressure on gilts may continue into the autumn. The prime minister's constant backing of Reeves has raised concerns that her position may be precarious. Ultimately, the bond market may have more influence over Reeves' fate than the prime minister's support.