UK News
One dead and 40 injured as intense Russian strikes on Ukraine continue – Europe live | Europe
Morning opening: Russia continues strikes on Ukraine
Jakub Krupa
After a tense day of intense attacks on Wednesday, Russia has continued its strikes on Ukraine overnight, with at least one dead and 40 injured in the capital, Kyiv, after reported hits on civilian infrastructure.
Ukraine’s president Volodymyr Zelenskyy responded to the strikes, saying:
“These are definitely not the actions of those who believe the war is coming to an end. It is important that partners do not remain silent about this strike.”
He said that over the last 30 hours, Russia deployed more than 1,500 drones against Ukraine.
Kyiv’s mayor Vitali Klitschko said at least 18 apartments were destroyed as a direct result of the attack, with water supply problems reported in left bank Kyiv. He added that 40 people were injured, with 31 requiring hospitalisation.
Elsewhere, I will be jealous of parts of Europe that are off on bank holiday today looking at the Charlemagne ceremony in Germany, the meeting of Finnish and Lithuanian presidents to discuss regional security, and media reports about potential US troops movement out of Poland (although denied by the Polish government).
Oh, and it’s the second Eurovision semi-final tonight!
It’s Thursday, 14 May 2026, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
Key events
Latvian prime minister reportedly about to resign from office after drone incursion
Things are heating up in Latvian politics today.
A major government crisis has been brewing in the last few days over how a recent drone incursion incident was handled, and early reports suggest prime minister Evika Siliņa might actually step down.
Latvia’s public broadcaster LSM is reporting that she plans to resign from the position.
I will keep an eye on this for you and bring you the latest lines here.
Morning opening: Russia continues strikes on Ukraine
Jakub Krupa
After a tense day of intense attacks on Wednesday, Russia has continued its strikes on Ukraine overnight, with at least one dead and 40 injured in the capital, Kyiv, after reported hits on civilian infrastructure.
Ukraine’s president Volodymyr Zelenskyy responded to the strikes, saying:
“These are definitely not the actions of those who believe the war is coming to an end. It is important that partners do not remain silent about this strike.”
He said that over the last 30 hours, Russia deployed more than 1,500 drones against Ukraine.
Kyiv’s mayor Vitali Klitschko said at least 18 apartments were destroyed as a direct result of the attack, with water supply problems reported in left bank Kyiv. He added that 40 people were injured, with 31 requiring hospitalisation.
Elsewhere, I will be jealous of parts of Europe that are off on bank holiday today looking at the Charlemagne ceremony in Germany, the meeting of Finnish and Lithuanian presidents to discuss regional security, and media reports about potential US troops movement out of Poland (although denied by the Polish government).
Oh, and it’s the second Eurovision semi-final tonight!
It’s Thursday, 14 May 2026, it’s Jakub Krupa here, and this is Europe Live.
Good morning.
The economy grew by 0.3% in the month, official figures show, confounding analysts’ forecasts of a small contraction.
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Brighton and Hove City Council leader Bella Sankey says the women are yet to be identified.
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UK News
UK economy beats forecasts with 0.3% growth in March despite Iran war – business live | Business
UK economy beats forecasts with growth in March
Newsflash: The UK economy kept growing in March, despite the economic damage caused by the Iran war.
UK GDP rose by 0.3% in March 2026, the Office for National Statistics has reported, beating forecasts of a contraction of 0.2%.
That follows growth of 0.4% in February and no growth in January (revised down from growths of 0.5% and 0.1% previously estimated).
The ONS adds.
Services and construction output both grew, by 0.3% and 1.5%, respectively – these growths were partially offset by a 0.2% fall in production.
Key events
Construction sector surged in March
Output across the UK’s construction output increased by 1.5% in March, the ONS reports, thanks to new building work and repairs.
This morning’s GDP report says:
The increase in monthly output in March 2026 came from increases in both new work, and repair and maintenance, which grew by 2.0% and 0.8%, respectively. At the sector level, the main contributor to the monthly increase was private housing new work, which grew by 2.8%.
That follows a fall in new building work in the second half of last year.
UK quarterly growth rises to 0.6%
UK economic growth picked up on a quarterly basis, the ONS reports.
UK GDP rose by 0.6% in the January-March quarter, up from 0.2% in October-December.
All three major sectors of the economy grew; services output grew by 0.8%, production output grew by 0.2%; and construction output grew by 0.4%.
UK economy beats forecasts with growth in March
Newsflash: The UK economy kept growing in March, despite the economic damage caused by the Iran war.
UK GDP rose by 0.3% in March 2026, the Office for National Statistics has reported, beating forecasts of a contraction of 0.2%.
That follows growth of 0.4% in February and no growth in January (revised down from growths of 0.5% and 0.1% previously estimated).
The ONS adds.
Services and construction output both grew, by 0.3% and 1.5%, respectively – these growths were partially offset by a 0.2% fall in production.
Bank of England deputy governor Sarah Breeden has declared that interest rates do not need to rise in June or July.
In an interview with the Financial Times, published this morning, Breeden said:
“We’ve got time to understand firstly the size of the shocks and secondly, how the economy is evolving.”
“You’re obviously correct that we can’t wait forever, but we don’t need to do it in June or July.”
Breeden, a member of the Bank’s monetary policy committee (which sets interest rates) added that the BOE was “in a good place to be able to watch what’s happening in the economy,” saying:
“We don’t need to rush to act.”
Housing market in England and Wales weakening due to Iran war, say estate agents
The Iran war, and the resulting jump in borrowing costs, is dampening the UK housing market.
My colleague Tom Knowles reports:
Fears of higher mortgage rates and rising inflation as a result of the Middle East conflict are leading to a subdued and downbeat housing market, according to estate agents.
Demand from potential homebuyers across England and Wales has shown a “noticeable softening” recently, according to a monthly survey of estate agents by the Royal Institution of Chartered Surveyors (RICS).
Members have told the professional body that buyers and sellers are becoming more cautious, and many agents have cited clients who are worried about whether inflation and interest rates will rise in the coming months, leading to slower sales, fewer homes on the market, and more price-sensitive buyers.
Introduction: It’s UK GDP day
Good morning. We’re about to learn how much economic damage the UK suffered in the early weeks of the Iran war.
The first estimate of UK gross domestic product (GDP) in March, and for the first quarter of the year, is due to be released at 7am.
Economics fear the Middle East conflict, which began at the end of February, will have hit activity in the UK. The consensus is that GDP may have fallen by around 0.2% in March, a reversal of the 0.5% growth recorded in February.
For Q1 as a whole, City experts predict growth of 0.6%, up from 0.1% in October-December 2025.
But the outlook for 2026 looks tough, as economies are hit by rising energy prices, with food inflation set to jump too.
Fergus Jimenez-England, associate economist at the economic forecasting body NIESR, fears the UK economy faces “a year of weak growth and high inflation.”
“The UK economy is in a state of transition. It began the year with some momentum, as business sentiment recovered following the Autumn Budget, but conflict in the Middle East has since stifled that momentum.
As businesses adjust to this latest energy shock, leading indicators are sending mixed signals. Input price inflation has picked up sharply and job vacancies continue to fall, pointing to softer demand conditions ahead. At the same time, retail sales and PMIs have held up, although some of this strength may reflect firms and households bringing forward spending in anticipation of further price rises.”
The agenda
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7am BST: UK GDP report for Q1 2026
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7am BST: UK trade report for Q1 2026
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9.30am BST: Survey of economic activity and social change in the UK
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10.30am BST: Resolution Foundation event: Resetting Government economic priorities for the remainder of the Parliament
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1.30pm US retail sales for April
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1.30pm US initial jobless claims
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