Your commercial news round-up: UK economy, Rolls-Royce, Russia, Labubu dolls

Reading time: four minutes

UK economic growth slows but beats expectations, Rolls-Royce eyes nuclear-powered AI dominance and Russia takes actions against WhatsApp and Telegram. Meanwhile, fake Labubu dolls spark safety warnings across the UK. Catch up on the latest headlines in this week’s commercial news round-up.

• UK economic growth has expanded by 0.3% between April and June, marking a slowdown from the 0.7% growth in the first three months of the year. Despite this, the latest figures from the Office for National Statistics (ONS) suggest the economy performed better than expected in June, following a boost in the services and construction sectors. Chancellor Rachel Reeves described the figures as “positive”, while acknowledging that there’s “more to do to deliver an economy that works for working people”. The ONS first reported that the economy shrank by 0.3% in April, but the figure has since been revised to a smaller contraction of 0.1%. However, the deputy chief UK economist at Capital Economics, Ruth Gregory, expressed doubt that the country "will maintain this pace of growth" between July and September.
   
• Turning to other UK developments, Rolls-Royce CEO Tufan Erginbilgic said the company has the “potential” to become the country’s most valuable firm by leveraging its nuclear reactors to power AI. The engineering giant has signed deals to supply three small modular reactors (SMRs) to the UK and six to the Czech Republic. Erginbilgic said: “There is no private company in the world with the nuclear capability we have. If we are not market leader globally, we did something wrong.” The advantages of SMRs over traditional nuclear plants is that they’re smaller and quicker to build, but the technology isn’t in operation yet. Despite environmental concerns about the technology, tech giants, such as Google and Microsoft, have committed to sourcing energy from SMRs in the US once they are available. Erginbilgic has estimated that the world will need 400 SMRs by 2050. 
   
• Russia has announced restrictions on messaging platforms WhatsApp and Telegram, after accusing the messaging services of failing to share data with law enforcement in cases of fraud and terrorism. According to the Interfax news agency, the communications regulator Roskomnadzor said the measures aim to curb criminal activity and “partially restrict calls on these foreign messengers”, adding that other functions remain unaffected. The Russian digital ministry said call access in foreign messengers will be restored after the platforms “start complying with Russian legislation”. The move is part of Moscow’s long-running dispute with foreign tech firms, which escalated after Russia’s 2022 invasion of Ukraine. Critics have argued that the Russian government is tightening control over the internet space in the country – a concern underscored by President Vladimir Putin's recent authorisation of a state-backed messaging app. WhatsApp’s parent company Meta stated: “WhatsApp is private, end-to-end encrypted, and defies government attempts to violate people’s right to secure communication, which is why Russia is trying to block it from over 100 million Russian people. We will keep doing all we can to make end-to-end encrypted communication available to people everywhere, including in Russia.” Meanwhile, Telegram said that it “actively combats misuse of its platform, including calls for sabotage or violence, as well as fraud”.  
   
• Back in the UK, the Chartered Trading Standards Institute (CTSI) has warned that counterfeit Labubu dolls are unsafe and pose a serious choking risk to children. The popular monster-themed toys, originally made by Chinese brand Pop Mart, have gone viral on social media after being endorsed by celebrities, such as Rihanna and Lisa from K-pop group Blackpink. However, their popularity has led to a surge in illegal fakes sold online and in local shops, according to the CTSI. The circulating fake dolls often lack required safety markings, feature detachable parts and poor stitching, increasing choking and suffocation risks. External affairs manager at CTSI, Kerry Nicol, explained: “These fake products bypass the rigorous safety checks and compliance requirements the law demands, meaning they could contain choking hazards, toxic materials, or faulty components that put children at serious risk.” Trading standards teams have seized more than 2,000 fake dolls from 13 retailers in North Tyneside alone, with more seized across Greater Manchester, Humberside, North Somerset and Scotland. Nicol added: “Everyone involved in the supply chain – from manufacturers and fulfilment houses to sellers and marketplaces should have a role to play in ensuring unsafe toys never reach the hands of children.”

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