Key moments
US market eyes two records
On Wall Street, traders are tracking two potential records today. First up, the S&P 500 is still trying to break new ground with a close above the February 19 high of 6,144.15 and so far so good. By 9.45am in New York the broadly based index was 21.64 points, or 0.4 per cent, higher at 6,113.80.
There seems little doubt, though, that shares in the artificial intelligence chipmaker Nvidia Corporation will pass another milestone. The stock closed at a new record on Wednesday night and this morning it is up 53 cents, or 0.4 per cent, at $154.82, valuing the business at $3.8 trillion and making it the world’s most valuable public company above Microsoft on $3.7 trillion.
The boost from Nvidia helped the Nasdaq to track higher with a gain of 42.98 points, or 0.2 per cent, to 20,009.81.
The Dow Jones industrial average was up 224.09 points, or 0.5 per cent, at 43,206.52.
Government to say no to power cable from Morocco
The government has decided not to back a £24 billion project to bring Moroccan wind and solar power to Britain via the world’s longest subsea electricity cable, Emily Gosden writes.
XLinks, chaired by the former Tesco boss Sir Dave Lewis, has been seeking a government contract committing UK consumers to buy electricity from the ambitious project at a fixed, subsidised price.
Ed Miliband, the energy secretary, is understood to have decided not to offer such a contract amid concerns over value for money and security risks to the 2,500-mile cable, as well as a preference for projects on British soil.
The decision, expected to be confirmed in a ministerial statement later today, was first reported by Sky News.
XLinks, which is backed by investors including Octopus Energy, Britain’s largest household energy supplier, and the French oil and gas group TotalEnergies, declined to comment.
Sharp fall in retail volumes says CBI
Retailers reported that annual sales volumes fell at a sharp pace in June, according to the latest CBI Distributive Trades Survey.
This marked the ninth month in a row of declining volumes. Sales volumes for the time of year were judged to be poor in June, to a greater extent than in May.
Retailers expect sales to fall again in July.
In one bright spot, online retail sales volumes rose slightly in the year to June and are expected to grow again next month.
Martin Sartorius, principal economist at the CBI, said: “The contraction in retail was mirrored across wholesale and motor trades, with many firms reporting that consumer caution continues to hold back sales.
“The industrial strategy, therefore, comes at a critical time, setting out a credible plan to boost long-term growth.”
Boots owner Walgreens beats expectations
The American owner of Boots has beaten quarterly sales and earnings estimates, offering a much-needed boost for the struggling pharmacy giant before its planned private equity takeover.
Walgreens Boots Alliance posted a 7 per cent increase in sales to $39 billion in the third quarter, driven by sales growth at the UK high street chain and its US retail pharmacy arm.
Analysts had forecast revenues of $36.66 billion as its US healthcare business continued to struggle amid low drug reimbursement rates, rising costs, thefts and squeezed US consumers.
The American drug store chain posted better-than-expected earnings per share, its preferred profit metric, however, and a narrower-than-expected $178 million loss.
The New York-based investor Sycamore Partners agreed to buy Walgreens for $10 billion in March, bringing a century-long run as a public company to an end. Walgreens suspended annual guidance amid the pending takeover.
Global uncertainty remains elevated, says Bank governor
The governor of the Bank of England said global uncertainty “remains elevated” amid the unpredictability in the Middle East and over President Trump’s tariffs policy, Alex Ralph writes.
Andrew Bailey told the British Chambers of Commerce annual conference: “While the direct impact from trade policies on world output may be smaller than we might have feared, the uncertainty associated with it nevertheless continues to have an impact on the UK economy. There have been significant moves in the oil price following the escalation of the conflict in the Middle East, although not always in the direction we may intuitively have expected. That only goes to show the unpredictability of events in the world today.”
He said the Bank retained a restrictive monetary policy stance to squeeze out remaining persistence in inflationary pressures and that interest rates remained on a “gradual downward path”.
“Given the outlook, and continued disinflation, a gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriate,” he said.
He also said the job market could be easing. Businesses have warned they are cutting back hiring after the increase in taxes on labour in April.
FCA: ‘Staley hoped the truth would never come to light’
Therese Chambers, joint executive director of enforcement at the FCA, has responded to the Upper Tribunal ruling dismissing Jes Staley’s challenge against a ban from the regulator.
She said: “Mr Staley chose to take a calculated risk that we would take his inaccurate account of his relationship with Mr Epstein at face value. He hoped that the truth would never come to light and that he would get away with it. Such a serious lack of integrity flies in the face of the requirements we place on those at the top.
“The tribunal’s decision shows that we can and will act to protect the financial system by holding those in senior roles to the high standards required of them.”
British Land shares fall after downgrade by ‘fan’
The FTSE 250 landlord’s shares are down 7½p, or 2 per cent, to 370¾p after one of the company’s biggest fans in the City downgraded his rating of the stock, Tom Howard writes.
Zachary Gauge, a property industry analyst at UBS, had British Land as his top pick in the sector but has changed his “buy” rating to “neutral” instead.
He said: “To get to the mid point of company [annual earnings] guidance, we would need to take British Land’s leasing assumptions at face value, which implies Aldgate Place, Priestley Centre, Norton Folgate and 1 Broadgate are 100 per cent occupied by [next March], whilst Canada Water, 1 Triton Square and Mandela Way need to be at 50 per cent.
“Having run our analysis on leasing track record and market fundamentals, we see Aldgate Place and Norton Folgate at around 80 per cent, Canada Water at 38 per cent and 1 Triton Square and Mandela Way at 40 per cent. This drives a £5 million difference in our rental contribution from developments over the year and our below-guidance earnings estimate.”
Former Barclays chief Staley loses appeal over Epstein ties
The former boss of Barclays has lost his attempt to overturn a decision by the City regulator to ban him from top jobs in financial services for misleading it over his relationship with the paedophile Jeffrey Epstein, Ben Martin, Banking Editor, writes.
A court in London has ruled that Jes Staley “acted recklessly” by allowing Barclays to send the Financial Conduct Authority a letter in October 2019 in which the bank told the regulator that Staley “has confirmed to us that he did not have a close relationship” with the sex offender and that his last contact with the paedophile was “well before” he joined the bank in December 2015.
The Upper Tribunal decided, however, that a £1.8 million fine that the authority had sought to impose on Staley should be reduced to £1.1 million.
The tribunal said: “Clearly in this case on the basis of our findings Mr Staley failed to disclose appropriately information of which the authority would reasonably expect notice.”
Next 15 warns on profits
The Aim‑listed growth and communications consultancy Next 15 has warned that full-year profits for the year to the end of January 2026 were likely to drop materially below market expectations.
Next 15 Group shares fell 22 per cent, or 63½p, to 225½p, their lowest since 2020.
The warning came a day after it disclosed “potential serious misconduct” at Mach49, a California-based venture-building business that it owns. Next 15 said three senior managers had left Mach49 and it was “in the process of reporting the matters to relevant law enforcement agencies”.
The profits warning is partly linked to Mach49, fluctuations in the dollar exchange rate and further investment in AI.
Hennes and Mauritz beats expectations
The fashion retailer H&M has reported slightly stronger second-quarter profit in a boost to the turnaround efforts of Daniel Ervér, its chief executive.
Operating profit for the three months to the end of May was $625 million, the Swedish retailer said.
H&M shares rose 7.5 per cent in early trading as investors focused on the forecast-beating profit.
The world’s second-largest listed fashion retailer also said it expected sales in June to rise 3 per cent.
“Our collections are more current, they are more on trend, more fashionable and the customer reception has been strong throughout this quarter,” Ervér said.
He added, however, that US tariffs had “caused a very turbulent situation”.
London attracts blockbuster IPO
The private equity-backed software group Visma has provisionally chosen London for its €19 billion initial public offering.
The British buyout firm Hg has owned the Norwegian-based Visma since 2006. The company, which provides small to medium-sized businesses with accounting and payroll software, previously considered pursuing an IPO in 2023 but instead opted for a private share sale to investors in a transaction that valued the company at €19 billion.
The decision to proceed with a listing in London rather than Amsterdam early next year, first reported by the FT, is said to be contingent on the implementation of promised reforms by the government.
It would be a welcome boost for the London Stock Exchange, which has been under pressure from a lack of new listings and a steady flow of exits to the US.
PZ Cussons abandons sale of St Tropez
PZ Cussons has decided not to sell its self-tanning St Tropez brand, which is popular among celebrities including Salma Hayek and Ashley Graham.
The healthcare and consumer goods company, which owns labels including Imperial Leather, Carex and Sanctuary Spa, said that after careful evaluation of the offers received for the business, “The board has decided to retain St Tropez and set a new strategic direction for the brand.”
The shares, which have dropped 27 per cent over the past year, fell 3.6 per cent to 73½p this morning.
Serco names new chairman after strong half
The FTSE 250 outsourcer Serco has named Keith Williams to succeed John Rishton as chairman.
Williams is chairman of Halfords and a former chief executive and chairman of British Airways.
Serco said in a trading update that its first half had been bolstered by about £3 billion of contract awards, including in the defence sector. It expects first-half revenue of about £2.4 billion, 2 per cent higher than in 2024.
The shares rose 2.5 per cent to 198½p after the company upgraded its full-year revenue guidance to £4.9 billion, up from previous guidance of £4.8 billion. Profit guidance was unchanged at about £260 million.
UK facing volatile geopolitics, says prime minister
Amid the Israel-Iran conflict and volatile oil price, Sir Keir Starmer told the British Chambers of Commerce annual conference that the ceasefire was fragile and that the volatile geopolitics was having a big impact on the UK, Alex Ralph writes.
He said: “The impact of international affairs on us domestically has never been so direct as it is at the moment. So you saw an oil price rise to take the other obvious example.
“In the three-plus years of the Ukraine conflict, energy prices have gone up considerably as a result of that conflict. So we have to recognise that’s why diplomacy matters on the global stage to try and de-escalate and resolve situations, which is what I’ve spent a lot of time doing. It’s also why we need to insulate ourselves here as best we can.”
We have asked a lot of business, says Starmer
Sir Keir Starmer has acknowledged the burdens that have been placed on businesses following the budget’s increase in taxes and costs, Alex Ralph writes.
Speaking at the British Chambers of Commerce conference, the prime minister said business created “the jobs, the wealth, the tax receipts that means that we have the opportunity to change our country for the better”.
Signalling an attempt to reset relations with business, he added: “I do acknowledge here that this year, as we’ve had to fix the foundations of our country, deal with the unprecedented mess that we inherited, we have asked a lot of you. I understand that and I want to acknowledge that.
“It has made a huge difference. Because of it, the money has gone into the NHS and waiting lists are coming down. We have put investment into the skills of our young people, the new homes, new roads, new infrastructure that we’re building. They are all vital for the long-term growth of our country.”
Topps Tiles names new chief
Topps Tiles has named Alex Jensen as its new chief executive to succeed Rob Parker, who announced in January that he was stepping down.
Jensen was recently boss of National Express UK, Ireland & Germany and is also a former BP executive.
The tile retailer also announced that Stephen Hopson was leaving his role as chief financial officer to join the pub group Marston’s.
Topps Tiles shares, which have fallen 11 per cent over the past year, rose 2.8 per cent, or 1p, to 37p.
Sorry you’re leaving ... Moonpig shares drop
The online greeting cards and gifts retailer Moonpig is the biggest faller on the FTSE 250. The shares fell 6.53 per per to 227p after Nickyl Raithatha announced his decision to step down as chief executive after seven years.
Analysts at Shore Capital said the 2.6 per cent rise in full-year revenue to £350 million, released alongside Raithatha’s announcement, was lower than expected.
The FTSE 250 was trading up 33 points, or 0.16 per cent, at 21,331.17.
Shell and BP shares flat in subdued trading
Telecoms, consumer goods and defence stocks have risen this morning in a market that is largely flat.
Shell’s denial that it is in early talks to buy its rival BP has led to muted trading in both shares. BP edged up 0.36 per cent and Shell added 0.4 per cent.
Engineering, financial and technology shares were lower.
Scottish Mortgage Investment Trust fell 0.9 per cent, despite shares in the AI chipmaker Nvidia, in which it invests, reaching another new high with a 4.3 per cent rise to close at $154.31. Nvidia has now regained its crown from Microsoft as the world’s most valuable public company at $3.8 trillion.
Trump’s interference in Fed lifts the pound
The pound has risen to a more than 3½-year high against the dollar after President Trump’s latest move to pressure the Fed to cut interest rates, as reported in our earlier post below.
The currency rose to $1.3711.
The FTSE 100 has opened flat. It initially fell about 6 points, before edging higher to trade up 4 points.
Moonpig chief to step down
Alongside full-year results, the online card and gift retailer has announced that Nickyl Raithatha is to step down as chief executive. The board said it had begun a search for his successor. Raithatha will continue in his role while a successor is appointed.
Pre-tax profit fell 93 per cent to £3 million in the 12 months to the end of April, down from £46.4 million as the group wrote down the value of the Buyagift and Red Letter Days businesses they bought for £124 million in 2022.
Headline pre-tax profit rose by a better-than-expected 16 per cent to £67.5 million, up from £58.2 million. Revenue over the period rose 2.6 per cent to £350.1 million, up from £341.1 million.
The shares have struggled since floating at 350p.
Oil shares in focus as Shell denies interest in BP
Expect some movement in the shares of the FTSE 100 oil companies after a report yesterday of a possible merger. Shell said this morning that it had not bid for BP and was not actively considering such a move.
It added that the statement meant that it was bound by UK regulations from making a bid for BP for the next six months.
The New York-listed shares of BP rose as much as 10 per cent last night, before falling back on the Shell denial to end the day up 1.6 per cent. Shell shares fell 1 per cent.
ABF seeks government help to save bioethanol plant
The FTSE 100 conglomerate Associated British Foods said the government had committed itself to formal negotiations to secure the future of the group’s Vivergo plant, the UK’s largest bioethanol refinery, in Saltend, Hull, Richard Fletcher writes.
It warned, however, that “the outcome of the negotiations is uncertain” and said that it was simultaneously beginning consultation with employees to effect an orderly wind-down, with wheat purchases having ceased from June 11.
“Unless the government is able to provide both short-term funding of Vivergo’s losses and a longer-term solution, we intend to close the plant once the consultation process has completed and the business has fulfilled its contractual obligations,” ABF said.
The industry has been hit by the UK trade deal with America, which removed tariffs on US imports of bioethanol.
Bioethanol is an eco-friendly fuel used by UK motorists. E10 petrol contains up to 10 per cent bioethanol and 90 per cent regular unleaded petrol. ABF has claimed that the removal of a 19 per cent tariff on US ethanol imports had put the future of the £450 million loss-making Vivergo plant at risk.
BCC annual conference: ‘Where’s the Growth?’
The business lobby group holds it annual meeting this morning. The focus is growth.
Research released by the BCC before the meeting reveals that one third of firms said they have either made staff redundant or are planning to as a direct result of the National Insurance increase. Alex Ralph has more here.
Shevaun Haviland, director general of the British Chamber of Commerce (BCC), will warn that if the government is serious about growth, then it cannot tax business any further.
“The size and scale of the rise in National Insurance contributions took businesses by surprise,” she will say in a speech.
Other speakers include Andrew Bailey, the Bank of England governor and Thomas Woldbye, chief executive of Heathrow.
Stock markets subdued as oil price stabilises
Trading in Asian stock markets was subdued as the ceasefire between Israel and Iran appeared to be holding, reducing the risks of oil supply disruptions. Although investors are now looking ahead to President Trump’s deadline on tariffs.
The FTSE 100 is forecast to open 16 points lower when trading begins shortly. The index closed down 40 points yesterday.
Oil prices have stabilised, with the benchmark Brent crude future contract trading just below $67 a barrel. The price of gold has edged higher to $3,334.89 an ounce.
Dollar hits new three-year low
The dollar has fallen to a fresh three-year low against a basket of currencies after President Trump was reported to be considering announcing Federal Reserve chair Jerome Powell’s replacement by October.
The Wall Street Journal report unsettled currency markets as it raised concerns about the future independence of the Fed and potentially undermined faith in the soundness of the country’s monetary policy.
Kieran Williams, head of Asia foreign exchange at InTouch Capital Markets, said: “Markets are likely to bristle at any early move to name Powell’s successor, particularly if the decision appears politically motivated.”
Trump has been pressuring the Fed chief to lower interest rates, branding him “Too Late” Jerome Powell. Powell told the Senate yesterday that the Fed had to be wary about cutting rates as the President’s tariff plans were an inflation risk.
