Europe bulletin: OBR shake-up, UK manufacturing rebound, Tesla sees mixed market shock

Europe’s had one of those days where everything feels a bit upside down.

The OBR chief’s resignation, a rebound in UK manufacturing, and a major UK-US pharma deal led London markets today.

Tesla saw a sharp overall decline in Europe, except for a record-breaking performance in Norway.

It’s a mix of shakeups, surprises, and a few cautiously optimistic signs across the region.

OBR chief quits after leak

Richard Hughes, the head of the UK’s Office for Budget Responsibility, has stepped down after last week’s accidental early release of Chancellor Rachel Reeves’ budget report.

He called it the “worst failure” in the OBR’s 15-year history and said the blame ultimately falls on him.

The report, the Economic and Fiscal Outlook, went out almost an hour before Reeves delivered her speech, which is a big no-no for such a high-profile document.

In his resignation letter, Hughes told both the Chancellor and the Treasury Committee chair that the organisation needs a fresh start to rebuild trust.

He said he’s confident that, if the OBR follows the recommendations laid out in the review of the incident, it can restore its reputation.

UK manufacturing edges back to growth

The UK’s manufacturing sector finally showed a bit of life in November 2025, for the first time in more than a year.

The latest S&P Global PMI crept up to 50.2 from 49.7 in October, just enough to push the industry back into growth territory after 13 straight months of contraction.

What’s behind the shift? Mostly stronger demand at home and a slower drop in export orders, which together suggest things are starting to steady.

The pickup was mainly driven by big manufacturers and companies producing investment goods. Meanwhile, output in consumer goods and intermediate goods actually slipped a bit.

Even with this return to growth, factories kept cutting jobs as firms looked to save money and deal with rising labor costs.

But on a brighter note, business confidence jumped to its highest level in nine months, helped along by optimism around AI and new data-center investments.

UK–US strike pharma deal

The UK and the US have just struck a new zero-tariff deal on pharmaceuticals, and it’s a pretty big one.

As part of the agreement, the UK has promised to boost its spending on new medicines by 25%, which is notable because it hasn’t increased that budget in more than 20 years.

On the trade side, UK drug exports to the US, worth about £5 billion a year, will now face zero tariffs for at least the next three years.

In return, the UK will ease up on the hefty rebates drugmakers usually have to pay back to the NHS, cutting them from roughly 23% to no more than 15%. That’s a meaningful break for pharma companies.

Tesla’s wild Euro whiplash

Tesla had a rough November 2025 in Europe, with new car registrations falling sharply in several major markets.

In France, registrations were down 58% to just 1,593 cars. Denmark saw a 49% drop overall, and the once wildly popular Model Y took the biggest hit, plunging 74%. Interestingly, the Model 3 actually grew in Denmark, up 29%.

Sweden wasn’t spared either, with Tesla registrations there sliding 59%.

A mix of factors seems to be driving the slump: tougher competition from fast-rising Chinese brands, Tesla’s lineup starting to feel a bit dated, and the lingering backlash from Elon Musk’s controversial political remarks.

But it wasn’t bad news everywhere. Norway went in the complete opposite direction, with Tesla registrations nearly tripling to 6,215 vehicles: enough to break national sales records.