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UK Eyes Digital Trade Deal with Trump Amid Global Trade Uncertainty
The UK is preparing to negotiate a pioneering digital trade deal with former U.S. President Donald Trump, should he return to office, in a move aimed at strengthening economic ties between the two nations.
According to Exports Minister Gareth Thomas, discussions are already underway to explore opportunities in digital services and technology, sectors where the UK sees significant potential for growth.
“There are always possibilities of doing deals in the US, certainly around digitalisation and services,” Thomas said. “We’ve got a lot to offer, and there are definitely areas where we could work together. It’s in the US’s interests as well as the UK’s interests for us to collaborate.”
Trade Talks Gain Momentum
Government insiders suggest that Labour leader Sir Keir Starmer has already raised trade issues with Trump, who has reportedly signaled that an agreement could be “worked out.” Washington sources believe a partial agreement could be reached within months, particularly if negotiations focus on technology, digital trade, and financial services.
Britain’s efforts to secure a full-scale free trade agreement (FTA) with the U.S. have historically stalled over disputes on agricultural standards, such as the import of chlorinated chicken and hormone-fed beef. A previous attempt to finalize a deal with Trump during his first term fell apart when Joe Biden took office, leading the UK to shift its focus toward smaller, sector-specific agreements.
A potential UK-U.S. digital services agreement would likely follow the model of the UK-Singapore Digital Economy Agreement (DEA) signed in 2022, which streamlined regulations in financial services, law, banking, and technology.
Challenges on the Horizon
Despite optimism surrounding the deal, a major obstacle remains: the UK’s digital services tax. The tax, which raises £700 million annually from tech giants such as Google, Meta, and Amazon, has been strongly opposed by both Trump and billionaire entrepreneur Elon Musk.
Shadow Chancellor Rachel Reeves is expected to review the tax policy should a breakthrough in trade talks occur, potentially paving the way for a compromise.
Meanwhile, Starmer has reportedly assembled a “mini-Cabinet” dedicated to negotiating favorable terms with a potential Trump administration. The appointment of Peter Mandelson as UK Ambassador to Washington is also expected to bolster Britain’s negotiating position, given his extensive trade experience.
Balancing U.S. and EU Trade Relations
While pushing for closer economic ties with the U.S., UK ministers are keen to avoid straining relations with the European Union. Thomas emphasized that Britain should not have to choose between Washington and Brussels if trade tensions escalate.
“We should essentially choose both,” he said. “There are things we could do to improve the trading relationship with the EU, and we should crack on with those as well.”
A Growing Opportunity for the UK
Industry experts agree that services exports, particularly digital trade, represent a major growth opportunity for Britain.
Stephanie Betant, HSBC’s head of global trade solutions, noted: “Services really are an opportunity for the UK. It’s a big services economy, but it exports less than it produces. Global trade in services is growing faster than goods, so this is an area with huge potential.”
The UK is the world’s second-largest services exporter, and since leaving the EU, its services exports have surged while goods trade has lagged.
With a new digital trade pact on the horizon, ministers hope to modernize Britain’s international trade strategy and strengthen economic ties with the U.S., despite lingering uncertainties over tariffs and regulatory hurdles.
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Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz
In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.
The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.
Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.
Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.
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Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO
The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.
Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.
In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.
While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”
Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.
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UK Government Reports Lower-Than-Expected Budget Surplus in January
The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.
The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.
Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.
Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.
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