soaring

HOUSEHOLDS across the country are being warned to brace for a financial squeeze as the cost of government borrowing skyrockets to levels not seen since 1998.

This now directly threatens to push up mortgage rates and could usher in a new wave of tax hikes.

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The pound has tumbled in response to the growing unease, highlighting investor concern over the UK’s economic stability. 

At the heart of the issue are government bonds, known as “gilts,” which the government issues to borrow money.

These bonds offer investors a return, referred to as the “yield.”

In recent weeks, gilt yields have been rising rapidly, making it more expensive for the government to borrow.

This morning, yields soared further, with 30-year gilts reaching 5.72% – the highest level in nearly 30 years – while 10-year gilts climbed to 4.85%.

This spike signals that investors are nervous.

They are demanding a higher return to lend to the UK, worried about stubborn inflation and a gaping £51billion hole in the nation’s finances.

The rise in government borrowing costs is putting serious pressure on household budgets in two key ways

Firstly, it’s driving up mortgage rates.

The link between government gilt yields and mortgage rates is direct and unavoidable.

Lenders use “swap rates,” which closely track gilt yields, to set the prices of fixed-rate mortgage deals.

As these rates climb, fixed mortgages become more expensive.

Since August 1, two-year swaps have risen from 3.56% to 3.74%, while five-year swaps have gone from 3.63% to 3.83%.

Major lenders like Barclays have already started increasing rates, and even a small rise can add significantly to monthly payments on a typical £200,000 mortgage.

With swap rates continuing to rise in recent weeks, experts warn that mortgage rates are likely to increase further.

Separately, Chancellor Rachel Reeves faces a difficult challenge in her Autumn Budget, scheduled for November.

Higher borrowing costs are eating into public funds, and many economists believe tax increases will be necessary to fill the financial gap.

Although the government has promised not to raise income tax, national insurance, or VAT for “working people,” other tax measures are reportedly being considered.

One proposal is applying National Insurance to rental income, which critics fear could result in landlords passing on the cost to tenants through higher rents.

Another idea being debated is replacing stamp duty with an annual property tax, which could affect homeowners.

There are also rumours of reducing pension tax relief or cutting the tax-free lump sum, moves that could generate billions but might hurt savers.

Plus, there’s speculation about lowering the VAT threshold, which would bring more small businesses into the tax system.

This could increase their costs and potentially lead to higher prices for consumers.

Reeves is expected to make economic growth the centrepiece of her next Budget, warning that Britain’s economy is “stuck” and in need of bold solutions.

What can you do about it?

None of the proposed changes have been confirmed yet, and the government hasn’t ruled them out either.

However, any new measures won’t take effect until after the Budget in November.

It’s important not to make rash decisions based on speculation.

If changes are announced, you’ll have time to act and protect your finances before they come into effect.

For instance, if stamp duty is replaced by an annual property tax from a certain date, you could move house before the deadline to avoid the extra cost.

Similarly, if the government introduces capital gains tax on high-value properties, you might consider downsizing to a smaller home before the change is implemented.

 Rob Morgan, chief analyst at Charles Stanley, said: “Taking pre-emptive action can outright backfire.

“Last year some people were concerned about restrictions around taking tax free cash from pension and took withdrawals they wouldn’t have otherwise made.

“This removed the money from a tax-efficient environment and potentially stored up tax issues that will come back to haunt them.

“Instead, it’s best to wait to see what happens, consider the consequences, and take advice as required before acting.”

Most of the proposed measures are likely to affect only the very wealthy, so you may not be impacted at all.

If you’re concerned, there are steps you can take to prepare and safeguard your finances.

Check your financial health

If you are worried about your finances then you should speak to a financial adviser.

They will be able to offer you advice about your situation and explain if any of the measures will affect you.

You can find one using unbiased.co.uk – but remember, you will pay a fee.

It’s good practice to sit down and take stock of your finances every six months and work out a plan.

Work out all your bills and outgoings and what income you have and factor in any changes, such as bills going up or new income streams.

Think about what you need to do to make the most of your money. For example, do you need to prioritise paying off debts or saving for a house deposit.

Our guide to paying less tax legally could help you avoid giving away more cash to the tax man than necessary.

Review your mortgage deal

If your mortgage deal is coming to an end soon, act now.

Locking in a fixed rate could shield you from rising rates and market uncertainty.

Aaron Strutt, of mortgage broker Trinity Financial, said “For the moment there have not been significant price hikes but it’s probably worth locking in a mortgage rate if you are buying somewhere or due to remortgage, to try and keep away from any market turbulence.”

If you are coming to the end of a fixed deal, most lenders let you lock in a new rate up to six months beforehand, which can be worth doing.

If rates fall after you agree a new deal, some lenders will let you sign a new one at a lower rate.

Think when investing

Gold prices surged to a record high of $3,546.99 per ounce (£2,643.82) on Wednesday, marking its seventh consecutive daily rise.

Investors are flocking to the precious metal as a safe haven amid inflation fears and fiscal uncertainty.

However, financial advisers suggest maintaining a balanced and diverse investment portfolio as a better strategy for managing market volatility.

A small allocation to gold (5-10%) can be useful, but it shouldn’t be the core of your investment plan, according to Charles Stanley.

Don’t forget a will

If you’re concerned about potential changes to inheritance tax, it’s essential to have a will in place.

Without a will, your estate will be subject to intestacy rules, which could result in a higher inheritance tax bill.

This is especially important for unmarried couples, as they won’t automatically inherit from each other, even if they’ve lived together for years.

Check how to make one in our guide.

Make your savings work harder

More than 31million bank customers have £186billion in savings accounts earning just 1.5% interest, according to banking app Spring.

These accounts generate £2.3billion a year in interest, but savers could earn over three times more by switching to accounts offering up to 5% interest, The Sun can reveal.

The average bank customer has around £10,000 in savings, according to Raisin.

If that £10,000 is kept in an easy access account earning 1.5% interest, it would generate just £150 in interest each year.

But switching to Cahoot’s 5% easy access account would boost that to £500, earning you an extra £350.

If your savings account pays less than the current inflation rate of 3.8%, it’s time to look for a better deal.

Opendoor (OPEN 6.34%) stock is seeing substantial gains in Thursday’s trading. The iBuying real estate company’s share price was up 4.1% as of 1 p.m. ET and had been up as much as 11.7% earlier in the session.

After big sell-offs in Tuesday’s and Wednesday’s daily sessions, Opendoor stock is seeing some recovery momentum in today’s trading. While there are no clear-cut, business-specific catalysts behind the move, there are a couple of factors that could be playing a role in the company’s gains today.

Image source: Getty Images.

Opendoor stock rises as Q2 GDP comes in higher than expected

The U.S. Commerce Department published gross domestic product (GDP) data for this year’s second quarter this morning, and growth came in stronger than anticipated. U.S. GDP grew at a 3.3% annual rate in Q2, topping the average economist forecast’s call for growth of 3% in the period. While the real estate market has been seeing some mixed indicators lately, stronger GDP growth could help support home sales and create a more favorable operating backdrop for Opendoor.

Did Opendoor stock inadvertently get a boost from Mad Money‘s Jim Cramer?

In yesterday’s episode of Mad Money on CNBC, host Jim Cramer said that Opendoor was a “meme stock” and said that he wouldn’t be jumping into the stock in hopes of profiting from the surge in bullish momentum it’s seen this year. As of this writing, the stock is up 164% across 2025’s trading.

While Cramer’s comments on the stock could come across as negative or ambivalent, they may have also had the effect of bringing more attention to the company. Additionally, many meme-stock traders seem to have a negative view on the Mad Money host’s coverage in general — and some intentionally make trades that are contrary to his positions. On the other hand, Opendoor has been prone to making big moves on little or no news recently — so it’s impossible to definitively state that the stock’s recent feature on Cramer’s show is a driving factor in its move today.

The Dow Jones Industrial Average and S&P 500 indexes are both nudging lower today. Rocket Lab (RKLB 8.07%) stock, however, is moving decisively in the other direction. Shares of the launch services leader are shooting higher today thanks to the company’s announcement on Friday afternoon as well as investors’ growing confidence in development of the Neutron rocket.

As of 11:31 a.m. ET, shares of Rocket Lab are up 11%.

Image source: Getty Images.

Rocket Lab can take a step toward proving the naysayers wrong this week

Before the weekend, Rocket Lab announced that it’s increasing U.S. investments to grow semiconductor manufacturing capacity, which will shore up the supply chain for space-grade solar cells and electro-optical sensors for national security space missions. To help support the initiative, Rocket Lab has received a $23.9 million award under the CHIPS and Science Act.

The second catalyst pushing the space stock higher today is the company’s planned opening of the Neutron rocket launch complex in Virginia on Thursday. In February, Bleecker Street Capital released a short report on Rocket Lab that cast doubt on management’s timetable for the Neutron. Whereas the company projected mid-2025 for an initial flight of the new medium-lift reusable rocket, Bleecker Street Capital suggested that a first flight would be more likely in 2026.

On Rocket Lab’s second-quarter-2025 conference call, management affirmed its expectation that the first launch of the Neutron rocket will occur before the end of the year.

Is it too late to fly with Rocket Lab stock for space economy exposure?

Rocket Lab’s announcement regarding increased investments in semiconductor manufacturing is encouraging, as is the opening of the Neutron launch complex this week. The stock’s rise today, however, seems a bit of an overreaction.

A successful launch of the Neutron rocket will be a powerful catalyst for Rocket Lab stock since Neutron will be the only competitor to the Falcon 9 from SpaceX. Investors looking to mitigate risk, though, may want to wait for a successful debut of the Neutron rocket before buying Rocket Lab stock.

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XRP‘s (XRP 5.54%) token price is seeing strong bullish momentum in Friday’s trading. The cryptocurrency had gained 5.7% over the last day of trading as of 2 p.m. ET. Meanwhile, Bitcoin was up 4.1%, and Ethereum had surged 13%.

XRP is bounding higher thanks to promising news on the interest rate front. In a speech he gave today, Federal Reserve chair Jerome Powell signaled that the U.S. central banking authority will likely cut interest rates at its meeting next month. That’s great news for the crypto market.

Image source: Getty Images.

XRP rises with a rate cut seemingly on the horizon

The outlook on the trajectory for the benchmark interest rate has been one of the most important catalysts for the cryptocurrency market this year. While investors have generally been betting that the Fed will issue multiple rate cuts in 2025, some recent developments had threatened the thesis and resulted in sell-offs in the crypto space.

For starters, the Bureau of Labor Statistics’ July Producer Price Index report arrived with inflation that was far hotter than the market had expected. Adding to fears that higher inflation will start showing up in the consumer rung of the economy and delay rate cuts, Home Depot and Target gave commentary along with their respective quarterly reports this week that suggested that tariffs are spurring pricing increases and pressuring consumer spending. Despite those dynamics, Powell seemed to confirm that a rate cut is coming soon — and his comments today have reignited bullish momentum for XRP.

What’s next for XRP?

Powell noted in his speech that inflationary pressures have continued to persist, but it looks like other concerns are taking precedence when it comes to shaping the Fed’s next interest rate moves. After July’s U.S. jobs report arrived with net employment additions that were far weaker than expected and big downward revisions for estimated jobs growth in May and June, weakness in the labor market will seemingly cause the Fed to serve up a rate cut at its meeting in September. While the extent of the cut and the outlook for additional cuts later in the year remain uncertain, one of the biggest recent valuation pressures for the crypto market has seemingly been lifted.

“Most people are one sickness away from seeking financial assistance,” reads a popular quote circulating on Nigerian social media.

For Usman Sani, a 33-year-old schoolteacher and a tailor in Funtua, a town in Katsina State, northwestern Nigeria, the truth in that statement has been a lifelong reality. He was in his first year of Junior Secondary School when his name appeared on the duty roster, a schedule for students responsible for cleaning the classroom either before classes or after the school closed. 

One morning, while sweeping alongside some other classmates, he began coughing uncontrollably. It worsened until he felt like he could no longer breathe. His chest tightened, and he collapsed. Teachers administered first aid, after which his parents rushed him to the hospital, where he was diagnosed with asthma, a chronic respiratory condition in which the airways become inflamed and narrowed, causing difficulty in breathing, coughing, and wheezing. From then on, his name was removed from the sweeping list.

“Nothing felt comfortable at that moment, whether eating, drinking, working, or even talking. Sometimes, just lying down would become a problem,” Usman recounted. “If I didn’t get immediate relief either through fresh air or medication, the condition would worsen.” 

Back then, he did not have an inhaler, relying instead on tablets that gradually lost their effectiveness. In 2018, his doctor prescribed a Ventolin inhaler, which became a lifeline during a series of attacks. “Then, an inhaler was around ₦2,000,” he said. “Now in 2025, it costs at least ₦14,000. I bought it last month. I can’t afford to buy an inhaler every month out of my small salary.” Hence, Usman said he wears face masks when he is outside. 

“Prevention, they say, is better than cure,” he added.

Usman’s struggle is not an isolated case. Across Nigeria, people living with chronic illnesses are finding it harder to manage their conditions as the cost of essential drugs skyrockets.

According to the World Bank, out-of-pocket expenditure accounts for over 70 per cent of total health spending in Nigeria, one of the highest in the world. This means millions are vulnerable to financial shocks whenever a health crisis strikes.

Take Hajiya Umma, an elderly woman in Sabon Gari, Zaria, in Kaduna State, who was diagnosed with diabetes in 2016. Since then, her son, Ibrahim Muhammad, has been responsible for her medication. The cost of an insulin shot has risen by about 480 per cent in the last five years, from ₦2000 to ₦14,500, hitting their household hard. “What’s more worrisome than the skyrocketing price of drugs is the specialised food I have to eat as well,” she lamented.

The government has made attempts to respond. In 2024, the Nigerian government signed an executive order waiving import duties and taxes on pharmaceutical inputs to boost local drug production. However, implementation has been slow and has had a limited impact. The Pharmaceutical Society of Nigeria states that the order has not yet resulted in lower prices due to forex scarcity, supply chain issues, and regulatory delays. Importers still face bottlenecks at ports, and manufacturers are crippled by erratic power supply and high production costs.

The crisis worsened as major multinational companies, including pharmaceutical companies, exited Nigeria. Firms like GlaxoSmithKline (GSK) and Sanofi shut down operations in the last two years, citing the naira’s collapse, profit repatriation issues, deteriorating infrastructure, and weak consumer power. As a result, Nigeria lost ₦94 trillion in economic output, according to Segun Omisakin, Chief Economist and Director of Research at Nigerian Economic Summit Group. This exodus has left hospitals and pharmacies struggling to restock essential and specialised medications.

This reality is evident to pharmacists on the ground. “This […] GSK Actifed is not even available; you’re lucky to get it. For several months, we’ve been searching to get it to stock in our pharmacy, but it’s not available,” Musa Bello, a pharmacist based in Kaduna State, lamented. He explained that the exit of GSK triggered not only scarcity and soaring prices, but also a flourishing black market and the rise of counterfeits. “Imagine Seretide Inhaler, which was ₦5,000 before their exit, went up to ₦30,000+ at some point. A lot has happened and is happening. I pity people with chronic conditions like diabetes and hypertension. A large part of their income now goes to drugs, and some can’t even afford it.”

The impact has also been severe on common diseases like malaria. Nigeria accounts for nearly 27 per cent of the world’s malaria cases, with 68 million infections and 194,000 deaths in 2021 alone, according to the World Health Organisation. Treatment that cost under ₦2,000 five years ago now sells for between ₦8,000 and ₦12,000. Similarly, hypertension drugs such as Amlodipine and Labetalol have doubled or tripled in price, with some monthly treatment plans exceeding ₦18,000.

“It is expensive. One wrong move can set you back. Drugs are no longer affordable for a lot of people,” Mukhtar Sabo, a development worker living with diabetes, said.

With the National Health Insurance Authority (NHIA) covering fewer than 10 per cent of Nigerians, the vast majority remain unprotected. The result is a cycle where families are pushed into poverty, forced to pay for care entirely out of pocket.

Resorting to alternatives

Faced with rising costs, Nigerians are increasingly turning to cheaper alternatives. 

Danladi  Bala, a trader in Zaria, suffers from a chronic ulcer. He buys medicine, a brown powdered herbal concoction sold in small packs, from a street vendor after Friday’s Islamic prayers. A week’s supply costs ₦200, or three bundles for ₦500.

“It is effective, because I feel better. I don’t have to go to the hospital and spend a lot of money on drugs that I might have to be taking for life. I have faith and trust that this traditional one would do the trick,” Danlandi said. He stopped visiting hospitals two years ago when drug prices rose sharply at local chemists.

Many Nigerians now rely on traditional, herbal and sometimes, religious remedies. On streets and in buses, markets, and worship centres, self-proclaimed healers sell mixtures they claim can cure everything from ulcers to sexually transmitted diseases, diabetes to HIV, and in some cases, even cancer. Their influence has grown through radio and television promotions, as well as, more recently, social media. In Nigeria, around 70 per cent of the population relies on traditional medicine, with 41 per cent using herbal remedies exclusively and 31 per cent combining them with orthodox care. Traditional healers are also key providers of mental health services, especially in underserved communities.

But this reliance on informal treatment, while understandable, risks exposing millions to counterfeit or ineffective drugs. 

“Most of those alternatives are not standardised,” said Anas Abdulahi, a medical doctor at the Ahmadu Bello University Teaching Hospital, Zaria. “Every drug is a potential poison. So taking such drugs risks damage to major organs like the liver and kidneys. Secondly, chasing those alternatives potentially leads to a delay in diagnosis and progression of disease to severe or terminal stages. There is also waste resources running from one alternative medicine to another in search of a cure.” 

Crowdfunding for treatment

For others, survival now depends on the kindness of strangers.

Yasmin, a lively four-year-old, is known for her charm and curiosity. When she started experiencing persistent headaches, her parents grew concerned. Initially, painkillers worked. Then the headache returned, more severe, robbing her of sleep and eventually sight. 

One day in 2024, everything became blurry to her.

Her father, Malam Abubakar, a primary school teacher, sought answers at a teaching hospital in Kaduna, only to be told the radiology machines were faulty. He was referred to neighbouring Kano State for scans. The costs were overwhelming, and he nearly sold his motorcycle to pay for them until family and friends intervened.

When the diagnosis was out, it was found that Yasmin had a tumour in her brain and required urgent surgery. With no savings to cover the expense, her parents turned to social media. Through crowdfunding campaigns on Facebook, X, and WhatsApp groups, the community rallied around them. The surgery was eventually funded.

For someone who was taking care of his family without help or interference from anyone, Abubakar said that resorting to crowdfunding was humbling. 

“I felt like a beggar, honestly. My self-esteem and ego were seriously hit, but who am I to think about those things when my daughter’s life was on the line?” he said. 

Though Yasmin has since been discharged and is recovering, her family must now pay for weekly physiotherapy and post-surgical treatment — another heavy burden on her father’s modest salary.

Her case is one of thousands. Fundraising appeals for medical treatment now flood social media daily. Even medical students and doctors are not exempt. A recent campaign sought ₦6 million for Obi Oluwatosin Joseph, a medical student at Delta State University in the country’s South South, who needs brain surgery. Another appeal, for Summaya Dalhat, a medical doctor in Kaduna, requested over ₦2.1 million for stroke rehabilitation.

Crowdfunding has become a lifeline for Nigerians in distress, bridging gaps left by a failing health system. But stigma, fraud, and slow responses remain constant obstacles.

In the end, herbal remedies, borrowed money, or online appeals are only fragile shields. Families like Usman’s, Umma’s, and Yasmin’s continue to live on the edge, sustained less by policy or social protection than by luck, faith, and the mercy of strangers.

Behind a car repair business on an unremarkable Thai street are the cherished pets of a rising TikTok animal influencer: Two lions and a 200kg (440lb) lion-tiger hybrid called “Big George”.

Lion ownership is legal in Thailand, and Tharnuwarht Plengkemratch is an enthusiastic advocate, posting updates on his feline companions to nearly three million followers.

“They’re playful and affectionate, just like dogs or cats,” he said from inside their cage complex at his home in the northern city of Chiang Mai.

Thailand’s captive lion population has soared in recent years, with nearly 500 registered in zoos, breeding farms, petting cafes and homes.

The boom is prompted by social media, where owners like Tharnuwarht post lighthearted content and glamour shots with lions.

Since 2022, Thai law has required owners to register and microchip lions, and inform authorities before moving them.

But there are no breeding caps, few enclosure or welfare requirements, and no controls on liger or tigon hybrids.

Tom Taylor, chief operating officer of conservation group Wildlife Friends Foundation Thailand, and his colleagues have tracked the rise in lion ownership with on-site visits and by trawling social media.

They recorded about 130 in 2018, and nearly 450 by 2024. But nearly 350 more lions they encountered were “lost to follow-up” after their whereabouts could not be confirmed for a year.

That could indicate unreported deaths, an animal removed from display or “worst-case scenarios”, said Taylor. “We have interviewed traders (in the region) who have given us prices for live and dead lions and have told us they can take them over the border.”

As a vulnerable species, lions and their parts can only be sold internationally with Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) permits.

Media reports and social media have documented lions, including cubs, in Cambodia multiple times in recent years, though CITES shows no registered imports since 2003.

There is also growing evidence that captive lion numbers in Laos exceed CITES import licences.

In Thailand, meanwhile, imports of lion parts like bones, skins and teeth have dropped in recent years, though demand remains, raising questions about how parts are now being sourced.

Thai trader Pathamawadee Janpithak started in the crocodile business, but pivoted to lions as prices for the reptiles declined. She sells one-month-olds for about 500,000 baht ($15,395), down from a peak of 800,000 baht ($24,638) as breeding operations like hers increase supply.

Pathamawadee’s three facilities house about 80 lions, from a stately full-maned nine-year-old to a sickly pair of eight-day-olds being bottle-fed around the clock.

He sells about half of the 90 cubs she breeds each year, often to other breeders, who are increasingly opening “lion cafes” where customers pose with and pet young lions.

The growing lion population is a problem for Thailand’s Department of National Parks, Wildlife and Plant Conservation (DNP), admitted wildlife protection director Sadudee Punpugdee.

“But private ownership has existed for a long time… So we’re taking a gradual approach,” he said.

That includes limiting lion imports so breeders are forced to rely on the domestic population.

Already stretched authorities face difficult choices on enforcing regulations, as confiscated animals become their responsibility, said Penthai Siriwat, illegal wildlife trade specialist at WWF Thailand.

“There is a great deal of deliberation before intervening … considering the substantial costs,” said Siriwat. Owners like Tharnuwarht often invoke conservation to justify their pets, but Thailand’s captive lions will never live in the wild.

Sanctuary chief vet Natanon Panpeth treads carefully while discussing the lion trade, warning only that the “wellbeing of the animals should always come first”.

Sadudee is hopeful some provisions may be tightened, though a ban is unlikely for now. He has his advice for would-be owners: “Wild animals belong in the wild.

“There are plenty of other animals we can keep as pets.”