Anna Wise

The UK Competition and Markets Authority has cleared Danone’s proposed acquisition of British protein and nutrition brand Huel. The deal, agreed in March and reportedly valuing Huel at about €1 billion (£860 million), was reviewed for potential competition concerns. Danone says the acquisition will strengthen its nutrition business, while Huel expects it to support growth and international expansion. Huel was founded by Julian Hearn in Hertfordshire in 2015 and has expanded from protein powders into shakes, snack bars and drinks.

Frasers Group has increased its stake in Hugo Boss to nearly 48% after the German fashion company rejected its €1.98 billion offer for the remaining shares as financially inadequate. The move strengthens Mike Ashley’s retailer’s push into luxury goods, alongside its recent acquisition of Harvey Nichols. Frasers plans a significant restructuring of Harvey Nichols, including reviews of its stores, organization, operating model and costs, as it integrates the department store into its wider group.

Accell UK and Ireland, the company behind Nottinghamshire-based Raleigh and part of the Netherlands-based Accell Group, has filed notice of its intention to appoint administrators as Accell begins insolvency proceedings. Despite restructuring, additional funding, debt reduction and discussions with potential buyers, the group said it could not find a way to continue operating in its current form. Chief executive Jonas Nilsson said the company would support an orderly process and seek to preserve viable activities and employment where possible.

The UK construction industry’s downturn began to ease in July, with the S&P Global construction PMI rising from 38.4 in June to 44.7, although readings below 50 still indicate contraction. Housebuilding, civil engineering and commercial construction all continued to decline, but at slower rates, while firms reported signs of renewed demand and more tender opportunities. Confidence improved to its highest level since February, despite geopolitical uncertainty and weak economic conditions. Job cuts continued at a slower pace, and input-cost inflation eased from May’s four-year high, though fuel and raw-material costs remained elevated.

PZ Cussons reported like-for-like revenue growth of 5.8% to £541 million for the year ending in May, while pre-tax profit rose 22% to £50 million. Growth was driven primarily by pricing, slightly higher volumes and strong performance from UK personal-care brands including Carex, Imperial Leather, Original Source and Sanctuary Spa. The company increased marketing investment, tested livestream shopping in Indonesia and launched St Tropez on TikTok Shop, while smaller brands such as Charles Worthington and St Tropez saw weaker sales. Cost savings and a strategic review included exiting a Nigerian joint venture, selling assets in Africa and Asia, closing US offices and integrating Childs Farm. Chief executive Jonathan Myers said the resulting business was more focused and resilient, although macroeconomic uncertainty remained a risk.

Wizz Air reported a €183 million operating loss for April–June, reversing a €27.5 million profit a year earlier, as fuel expenses rose 39% to €610.5 million amid elevated oil prices and conflict in the Middle East. The conflict had already cost the airline €50 million and forced flight cancellations to Tel Aviv and other regional destinations. Wizz Air is shifting capacity from longer-haul Middle Eastern routes to shorter European sectors, while passenger numbers rose 25% to 21.2 million and revenue increased 5.5% to €1.5 billion. Chief executive Jozsef Varadi warned that volatility, fuel prices and changing booking patterns would continue to challenge the aviation industry.

Wizz Air recorded a €183 million operating loss between April and June, reversing a €27.5 million profit in the same period last year. The downturn was driven mainly by a 39% year-on-year increase in fuel expenses to €610.5 million as conflict in the Middle East pushed oil prices sharply higher. The airline also absorbed a €50 million impact from cancelled flights to Tel Aviv and other regional destinations. Despite the loss, passenger numbers rose 25% to 21.2 million and revenue increased 5.5% to €1.5 billion. Wizz Air plans to shift capacity from longer-haul Middle Eastern routes to shorter European services while preparing for continued industry volatility.

Wizz Air swung from a €27.5 million operating profit to a €183 million loss between April and June, largely because jet-fuel expenses rose 39% amid soaring oil prices and conflict in the Middle East. The airline also absorbed a €50 million impact from cancelled regional flights, but passenger numbers rose 25% to 21.2 million and revenue increased 5.5% to €1.5 billion. Wizz Air is shifting capacity from longer-haul Middle Eastern routes to shorter European services as it prepares for continued industry volatility.

Eli Lilly reported that global Mounjaro sales more than doubled to $18.6 billion in the first six months of the year, while Zepbound sales rose 60% to $9.1 billion. Higher sales volumes, particularly in the United States, offset lower average prices, including price declines in China after Mounjaro was added to the reimbursement list. The newly approved oral weight-loss drug Foundayo generated $98 million, and Eli Lilly raised its full-year revenue forecast to between $85 billion and $87 billion, citing strong demand and continued pipeline development.

Heineken reported a 3.8% rise in first-half revenue to €17.56 billion and a 6.7% increase in organic operating profit to €2.17 billion. UK growth was supported by Cruzcampo sales rising more than 30%, Murphy’s volume doubling, a Foster’s rebound linked to the Professional Darts Corporation, and double-digit growth for Inch’s cider. The brewer cut about 3,000 jobs during the period and is pursuing broader restructuring, head-office reductions and €400–500 million in cost savings while expanding artificial-intelligence tools and investing in low- and no-alcohol products and its leading global brands.

Next raised its full-year pre-tax profit forecast by £25 million to £1.24 billion after second-quarter full-price sales rose 9.2% year on year, exceeding its 4% forecast. UK sales increased 2.8%, driven by online shopping, while international online sales surged 37%. The retailer attributed the outperformance to warmer UK weather, effective marketing and renewed demand in the Middle East and Northern Europe. Despite disruption linked to the Iran war and Strait of Hormuz supply-chain pressures, Next expects annual profit to rise 7.3% and may increase overseas prices by up to 8% to offset costs.

Domino’s received 45,000 additional orders during England’s 1 July World Cup match against DR Congo and increased staffing to meet demand. The chain also benefited from heatwaves, when customers favored takeaways, while first-half like-for-like sales rose 6.1 per cent to £825 million and total orders increased 1.6 per cent. New offerings, including the Italiano’s range and Chick ’N’ Dip sub-brand, helped attract customers and support growth.

Domino’s delivered 45,000 additional orders during an England World Cup knockout match, making it one of the company’s busiest trading days. Chief executive Nicola Frampton said the business prepared by increasing staffing and argued that pizza remains an affordable treat despite pressure on household budgets. First-half sales rose 6.1% on a like-for-like basis to £825 million, while order numbers increased 1.6%. Growth was attributed to the core pizza range, the premium Italiano’s thin-crust products and the complementary Chick ‘N’ Dip brand. Hot weather also boosted takeaway demand as customers avoided cooking and barbecuing. Pre-tax profit remained broadly flat at £40.6 million.

HSBC reported first-half pre-tax profit of 19.5 billion US dollars, up 23% year on year and above analyst expectations. Chief executive Georges Elhedery said strong banks are essential to financing business investment and supporting UK growth, while expressing confidence in the resilience of the UK economy. The results have renewed calls from the Trades Union Congress for the Government to raise the bank corporation tax surcharge from 3% to at least 8%, potentially raising £9 billion over four years. HSBC plans a share buyback of up to 1 billion US dollars, invested further in technology and cut costs ahead of schedule, although higher credit losses partly offset profit growth. Lending to small and medium-sized businesses rose 11%, and new business-banking customers increased 48%.

Metro Bank reported a record first-half pre-tax profit of £61 million in 2026, up 41% year on year, while lending rose 43% to £6.2 billion. Growth was driven by corporate, small-business and specialist mortgage lending, with specialist mortgages increasing 73% to £2.2 billion. The bank opened thousands of new personal and business accounts and is expanding its 78-branch UK network with new sites in Leeds, Newcastle and Nottingham, contrasting with broader industry branch reductions. Chief executive Daniel Frumkin said the bank’s relationship-based model and physical presence provide a competitive advantage.

Oil prices fell to a three-week low after Donald Trump said he had cancelled planned strikes on Iran and that Middle Eastern allies had outlined the parameters of a deal to end the five-month war. Brent crude dropped nearly 6% below $83 a barrel as investors anticipated a possible reopening of the Strait of Hormuz, through which about one-fifth of global oil and gas previously flowed. Prices had risen above $100 a barrel after attacks and renewed tensions threatened to escalate the conflict.

New Look has appointed Lynda Petherick as chief executive, succeeding Helen Connolly, as the retailer focuses on online growth, customer loyalty and tighter cost control. Ebitda more than doubled to £36.6 million in the year to March, while digital sales rose 1.6%. The company has closed UK stores and is exiting the Republic of Ireland, but refinancing through 2029 is expected to support selective investment. Its Club New Look loyalty programme has surpassed one million members, who shop more frequently and spend substantially more than non-members.

Next is expected to report its latest trading figures amid pressure from rising costs linked to the Iran war and disruption to shipping through the Strait of Hormuz. The retailer estimates the conflict will cost it £47 million, up from an earlier £15 million forecast, but says cost-cutting measures have so far avoided additional price rises in the UK and Europe. International prices have been increased, while analysts say Next’s strong UK sales, focus on costs and recovering international demand leave it better placed than many competitors, although renewed regional tensions could weaken demand and increase inflationary pressure.

Punch Pubs reported a 59% like-for-like sales increase across seven England World Cup match days through the semi-finals, helping drive broader revenue and earnings growth. Revenue for the 40 weeks to May 17 reached £275 million, up 9% year on year, while underlying earnings rose 6.6% to £75.9 million. The group attributed part of its expansion to acquiring 50 pubs, including 30 from McMullen's, and plans to buy 24 more. Chief executive Andy Spencer welcomed a 20% business-rates cut for pubs, clubs and live music venues in England but called for a wider package of hospitality support.

NatWest reported an operating pre-tax profit of £4.3 billion for the six months to the end of June, 20% higher than a year earlier and above analysts’ £4.1 billion forecast. Income rose 11% across retail, commercial and wealth management, while technology investment, structural simplification and roughly £250 million in gross savings reduced the cost-to-income ratio. Chief executive Paul Thwaite highlighted the rollout of AI to 60,000 employees, including an agentic AI assistant and fraud-protection tools. The recently acquired Evelyn Group is also performing well, supporting NatWest’s broader expansion in wealth management and financial advice.

BP plans to sell its UK North Sea business after 60 years of production as it seeks to streamline its portfolio and redirect investment toward higher-value opportunities. The operations include five production hubs producing 117,000 barrels of oil equivalent per day in 2025 and employ about 1,100 people. Chief executive Meg O’Neill said the assets and workforce would be better positioned under another owner while stressing the North Sea’s importance to the UK energy system. The sale comes amid political debate over the future of North Sea resources and Labour’s pledge not to issue new licences.

Greggs reported a 7.2% year-on-year increase in first-half sales to £1.1 billion and a 20% rise in pre-tax profit to £76 million for the 26 weeks to 27 June. Growth was supported by 34 net new stores, the Tesco launch of its bake-at-home frozen range, and strong demand for iced drinks, salads, wraps, fruit pots, and other lighter options during summer heatwaves. The company plans to open 100–110 additional locations in 2026 and is trialling smaller Greggs Express units at petrol stations. Greggs expects inflation to remain at 2.2%, has no further price rises planned, and is monitoring energy and wage costs as ingredient prices for coffee and cocoa ease.

Lloyds Banking Group reported a 23% rise in pre-tax profit to £4.3 billion for the first half of the year and said it remains on track to deliver more than £2 billion in savings by 2026. Its next strategy, Accelerate 2030, will target a further £2 billion in cost reductions by 2030 while investing more than £13 billion in digital transformation and artificial intelligence. Chief executive Charlie Nunn said AI could enable personalised services such as investment advice and make internal operations more efficient, but acknowledged that the shift will affect work, requiring staff retraining and new hiring. The plan follows major digital investment, branch closures and the decision to replace the Halifax brand with Lloyds.

Greggs reported first-half sales of more than £1.1 billion, up 7.2% year on year, while pre-tax profit rose 20% to £76 million. Growth was supported by 34 net new shops, stronger sales of iced drinks, salads, wraps and picnic foods during heatwaves, and the launch of a bake-at-home frozen range through Tesco alongside its Iceland Foods partnership. Chief executive Roisin Currie said menu changes had made the chain more resilient to hot weather, while cost-control measures helped offset wages, energy and food inflation. Greggs expects to open 100 to 110 net new shops in 2026, is targeting at least 3,500 UK locations over the long term and is trialling smaller self-service Greggs Express units at petrol stations.

Standard Chartered announced a new $1 billion (£750 million) share buyback after reporting record first-half 2026 pre-tax profits of $4.8 billion, up 9% year on year. Wealth income rose 38% and global banking income increased 19%, supported by new clients, corporate dealmaking and financial-market activity. The buyback follows a $1.5 billion programme completed in the first half of the year. Chief executive Bill Winters said the returns reflected confidence in the business, while the bank continues plans to eliminate about 7,800 back-office roles over four years as it expands its use of artificial intelligence. Winters also apologised for describing roles potentially replaced by AI as “lower-value human capital.”

Greggs reported a 7.2% year-on-year increase in first-half sales to £1.1 billion and a 20% rise in pre-tax profit to £76 million. Growth was supported by its bake-at-home frozen range sold through Tesco, new menu items including iced matcha lattes and salads, and demand for cold food during heatwaves. The company opened 34 shops and plans to add 100–110 net locations in 2026 while trialling its Greggs Express format. Chief executive Roisin Currie said Greggs would focus on protecting consumer value despite 2.2% inflation.

The National Institute of Economic and Social Research warned Andy Burnham’s government that there is no room for additional borrowing to finance cost-of-living measures and higher defence spending. It recommended raising taxes or cutting spending, potentially by reforming council tax, reducing VAT exemptions, reviewing welfare and pension policies, or—despite Labour’s pledge—not ruling out higher income-tax rates. Niesr also raised its forecast for UK inflation, attributing greater persistence partly to the Iran-related energy shock, while increasing its 2026 growth forecast to 1.1% but estimating that the shock has cost the economy around £15 billion in GDP. Burnham and Chancellor John Healey said they were working to fully fund the defence plan before the autumn budget.

Tortilla reported nearly 14% sales growth in the six months to the end of June, attributing much of the increase to expansion on Deliveroo, Uber Eats and Just Eat, which helped drive delivery sales up more than 50%. Menu changes and self-ordering kiosks in 38 UK restaurants also increased average customer spending. However, the company’s delayed 2025 annual results revealed accounting issues involving an overstatement of profits in its French business; adjusted earnings were £1.1 million, the French operation remained loss-making, and Tortilla’s shares fell about 5%.

Barclays reported a 17% rise in first-half 2026 pre-tax profit to £6.1 billion, exceeding analyst expectations, as investment banking income benefited from stronger equities activity, market volatility and increased dealmaking. UK banking income also grew, but credit impairment charges rose to £1.4 billion, including a £228 million charge linked to the collapse of property lender Market Financial Solutions. Barclays also acquired a 999-year leasehold interest in its One Churchill Place headquarters in Canary Wharf for £750 million, securing long-term control of the site.

Tortilla Mexican Grill reported like-for-like sales growth of nearly 14% in the six months to June, with delivery sales rising more than 50% after it joined Deliveroo, Uber Eats and Just Eat. Menu changes and self-ordering kiosks also increased average order values. The company published delayed 2025 accounts after correcting previously overstated French profits; adjusted earnings were £1.1 million, with the UK profitable but France loss-making. Shares resumed trading but fell about 5% after the update.

Vodafone has cut 1,200 jobs across Europe and shared operations as part of a plan to save €2 billion over the 2027–2030 financial years. The UK business, VodafoneThree, is targeting roughly £700 million in annual savings by 2030 through operating-cost reductions and integration of Vodafone and Three’s networks and operations. Chief executive Margherita Della Valle received a £10.13 million package approved by shareholders. Vodafone reported higher group service revenue and adjusted earnings, helped partly by the UK merger and Safaricom, although UK mobile service revenue and contract customers declined while broadband customers increased.

AstraZeneca reported a 6% rise in first-half 2026 revenue to $30.67 billion, driven by a 15% increase in oncology sales and an 11% rise in rare-disease revenue. Strong demand for Tagrisso and Imfinzi offset an 11% decline in Farxiga sales. The company expects full-year revenue growth of 5% to 9% while increasing research and development spending to $3.7 billion. Chief executive Pascal Soriot highlighted investment in transformative technologies, while analyst Derren Nathan said margins were improving without undermining future growth and pointed to 30 recent approvals as evidence of a strong research pipeline.

Vodafone reported first-quarter service revenue of €8.6 billion, up 10% year on year, while adjusted earnings rose 6.7%. The telecoms group has cut 1,200 jobs across Europe and shared operations as part of a cost-cutting programme intended to save about £700 million annually by the 2030 financial year. Vodafone expects full-year adjusted earnings of €13 billion to €13.3 billion and is focusing on Germany, the UK and Africa while withdrawing from smaller markets. Its planned merger with Three UK would create the UK's largest mobile operator. UK mobile service revenue declined 0.7% organically, with 48,000 contract customers lost and 34,000 broadband customers added, partly because Ofcom measures phased out mid-contract price rises.

Vodafone reported higher first-quarter service revenue and adjusted earnings as cost-cutting measures contributed to the loss of 1,200 European jobs. The company aims to reduce annual costs and capital spending by about £700 million by the 2030 financial year, while integrating Three in the UK and consolidating its control of Kenya-based Safaricom. Germany, the UK and Africa remain key markets, although UK mobile service revenue and contract customers declined. Analysts said the results suggest Vodafone's long-promised turnaround is beginning to show, helped by both underlying momentum and the consolidation of Three UK and Safaricom.

Barclays, Lloyds Banking Group and NatWest are expected to report stronger half-year profits, partly because interest rates may remain higher for longer. However, the war involving the United States, Israel and Iran has increased mortgage rates, fuel and food costs, and pressure on household finances. Banking experts warn that prolonged cost-of-living pressures could raise customer defaults, bad-loan provisions and impairment charges, while also reducing consumer spending and mortgage demand.

UK retail sales rose 1% in June, defying economists’ expectations of a decline, as hot weather, World Cup enthusiasm, promotions and strong online demand boosted spending. Online sales reached 29.4% of retail activity, their highest share since April 2021, while sports merchandise, clothing, air conditioning, outdoor products and garden furniture performed well. Motor fuel sales fell as higher prices discouraged travel and refuelling. Retail experts warned that fragile consumer confidence, cost-of-living pressures, rising business costs, renewed Middle East hostilities and potentially higher oil prices could weaken spending later in the year.

Wise was denied a US national bank charter by the Office of the Comptroller of the Currency because of historical issues in its original application, including financial-crime concerns. The payments company said it has since strengthened its controls and plans to submit a new application under the updated regulatory framework, while continuing to operate in the US under existing money-transfer licences. The decision follows Wise’s move of its primary stock-market listing from London to New York and contributed to a share-price fall of more than 6%.

UK retail sales rose 1% in June, exceeding economists’ expectations, as hot weather, promotions and World Cup interest boosted clothing, outdoor products, air conditioning, sports merchandise, alcohol and tobacco sales. Online sales reached 29.4% of total retail sales, their highest share since April 2021. Despite the strong month, experts warned that fragile consumer confidence, cost-of-living pressures, rising operating costs, renewed Middle East hostilities and higher oil prices could weaken spending later in the year.

The EU fined Google a total of 890 million euros for violating the Digital Markets Act by giving preferential treatment to its own services in search results and restricting developers from offering cheaper alternatives in Google Play. The European Commission said Google must end the non‑compliance, while Google argued the regulations degrade its products. The action adds to a series of EU measures targeting major technology firms.

UK inflation is expected to have eased slightly from 2.8% in May to 2.7% in June, largely because petrol and diesel prices fell sharply after oil prices declined. The relief is likely to be temporary, however, as Ofgem’s July energy price cap increased 13%, raising the typical annual household bill by £221 to £1,862. Prime Minister Andy Burnham’s plan to remove VAT from electricity bills in October is expected to save households about £45 a year and reduce inflation marginally. Economists warn that renewed Middle East tensions, higher oil and fertiliser costs, and potential food-price increases could push inflation to around 3.4% in November.

Centrica, the owner of British Gas, plans to cut 1,300 jobs over the next two years, including 800 additional customer service roles beyond 500 previously announced. The overhaul targets customer operations and outsourced support teams, reducing the customer operations workforce by 14% as the company responds to about 90% of customers using digital support channels.

Centrica, the owner of British Gas, plans to eliminate 1,300 jobs over two years as part of a major overhaul of its customer operations and group support functions. The cuts include about 500 customer-contact roles, additional offshore outsourced positions and a further 800 jobs on top of reductions announced previously, representing roughly 14% of the customer operations workforce. Centrica attributed the restructuring to sharply lower customer contact as around 90% of customers use digital support, while saying it will continue hiring engineers and 500 apprentices to meet demand.

JD Wetherspoon warned that annual profits would fall below market expectations after like-for-like sales rose 4% in the three months to 19 July, below forecasts and despite the World Cup and warm weather. Founder and chairman Tim Martin cited weaker-than-expected final-quarter sales and rising food, labour, repairs, energy and business-rate costs. The company had already forecast £60 million in additional costs from wage increases and National Insurance contributions, sending its shares down about 9%. Analyst Derren Nathan said the performance was disappointing given favourable seasonal conditions, while potential government relief on business rates, VAT and employers’ National Insurance remains uncertain.

UK CPI inflation fell to 2.6% in June, its lowest level in 15 months, driven mainly by lower petrol, diesel, food and soft-drink prices. Economists warn that the decline may be temporary because a 13% increase in Ofgem’s energy price cap, higher fuel costs and Middle East-related energy volatility are likely to push inflation higher later in the year. Forecasts suggest a peak of roughly 3.25% to 3.5%. The fall in inflation may reduce pressure on the Bank of England to raise interest rates, while government measures including removing VAT from electricity bills and restoring a £2 bus-fare cap are intended to ease household costs.

JD Wetherspoon issued another profit warning after quarterly sales growth of 4 percent fell short of expectations, dampening hopes that the World Cup and warm weather would significantly boost trading. Chairman Tim Martin cited higher costs across food, labour, energy and business rates as key pressures, prompting a 9 percent drop in the company’s share price. Analysts noted that the sales increase was modest despite strong seasonal conditions. The company is looking to potential policy support from the new Burnham government, though the feasibility of measures such as cuts to VAT, business rates and employer national insurance remains uncertain due to high public debt levels.

JD Wetherspoon reported 4% sales growth for the three months to 19 July but warned that annual profits would fall below market expectations. The pub chain is facing weaker-than-anticipated final-quarter sales and higher food, labour, repair, energy and business-rate costs, including an estimated £60 million impact from wage increases and National Insurance contributions. Its shares fell about 9% after the announcement, as the World Cup and hot weather failed to deliver the hoped-for boost. Analysts said the wider hospitality sector would benefit from potential cuts to business rates, VAT and employers’ National Insurance, although the government’s high debt levels make such measures uncertain.

UK inflation was expected to ease slightly from 2.8% in May to 2.7% in June, largely because petrol and diesel prices fell sharply after oil prices declined following an interim US-Iran ceasefire deal. The improvement was expected to be temporary, as Ofgem’s 13% July energy price-cap increase raised the typical annual household gas and electricity bill by £221 to £1,862. Prime Minister Andy Burnham announced that electricity bills would be exempt from VAT from October, saving households about £45 annually, while economists warned that renewed Middle East tensions, higher energy and fertiliser costs, and potential food-price increases could push inflation to around 3.4% in November.

UK inflation was expected to ease from 2.8% in May to 2.7% in June, mainly because petrol and diesel prices fell sharply and household energy inflation temporarily slowed. However, the outlook remains unsettled: Ofgem’s July price-cap increase raised typical annual household bills by 13% to £1,862, while renewed Middle East tensions pushed oil prices higher. Prime Minister Andy Burnham announced that electricity bills would be exempt from VAT from October, potentially saving households about £45 a year and reducing CPI inflation by roughly 0.1 percentage points.

United Utilities shareholders approved the company’s executive remuneration policy, with 75.8% of votes supporting plans to award chief executive Louise Beardmore shares allowances worth £435,000 annually. The vote followed backlash over Ofwat’s decision to deny her a £417,000 bonus after a reservoir incident caused the deaths of thousands of fish, although she later received an £830,000 bonus and £712,000 in long-term incentive awards. Critics, including Liberal Democrat MP Tim Farron and Institutional Shareholder Services, argued that the policy weakens accountability and disconnects pay from performance. United Utilities defended the payments as retention measures needed to secure leadership during a £13 billion infrastructure investment programme.

Compass Group reported increased business from catering at U.S. World Cup stadiums and expanding services for AI data centres, generating over $2 billion in new work. The company saw strong North American growth, supported major tech clients, and posted a 7.1% sales rise in the latest quarter, with leadership citing a robust pipeline of opportunities.

Outsourcing company Mitie has accepted a £3.1 billion acquisition offer from rival OCS Group, under which shareholders could receive up to 221.6p per share in cash and dividends—a premium of nearly 45% over Mitie’s recent closing price. The deal would combine OCS’s global workforce of more than 135,000 with Mitie’s approximately 84,000 employees and extensive contracts across government, the NHS, rail stations and airports. Mitie and OCS say the merger will create a stronger British facilities-management group, expand investment in people and technology, and support growth. Completion is expected in the first quarter of 2027, subject to shareholder and court approval.

UK public sector net borrowing fell to £16 billion in June, 33.1% below the figure for the same month last year and below both official and economist forecasts, largely because inflation-linked debt interest costs declined. However, borrowing for April to June reached £56.7 billion, £2.7 billion above the Office for Budget Responsibility’s projection. Chancellor John Healey said maintaining fiscal control and credibility was his priority, while Prime Minister Andy Burnham announced that VAT on energy bills would be removed from October at an estimated cost of £850 million. Economists warned that the measure could increase borrowing and make future tax rises or spending cuts more likely.

The government-owned British Business Bank reported pre-tax profit of £426 million for the year to March, nearly triple the previous year’s £144 million, driven largely by higher investment valuations and £115 million in realised equity gains. It deployed £1.5 billion into new and existing investments, with 87% of newly funded businesses located outside London. The bank cautioned that economic uncertainty and geopolitical conflict could affect valuations, while costs linked to pandemic loan schemes declined despite estimated fraud and error losses of £1.1 billion. Additional government funding will support investment in priority sectors including clean energy, defence, life sciences and financial services.

Brent crude briefly rose above $90 a barrel after US airstrikes on Iran and a retaliatory Iranian attack targeting Bahrain, before easing as reports emerged of diplomatic efforts to reduce tensions. Shipping through the Strait of Hormuz has largely stalled, while potential Houthi action against the Bab el-Mandeb Strait threatens further disruption to global oil transport. Analysts warned that attacks on infrastructure and President Donald Trump's threat to widen US strikes could trigger additional retaliation and prolong instability across the region.

Edinburgh-based healthcare technology company Craneware disclosed that a cyber attack exposed and exfiltrated a significant volume of file names, including some employee data and a subset of customer and partner records. The company said much of the information was non-sensitive or publicly available, and that the incident had been contained without disrupting operations or customer services. Craneware is investigating the scope of the breach with external advisers and has notified the UK Information Commissioner's Office and the US Federal Bureau of Investigation.

UK inflation is expected to have slowed to 2.4 percent in June, aided by falling petrol and diesel prices and a temporary easing in energy costs, offering short-term relief for Andy Burnham’s incoming government. Economists warn the improvement may be brief as Ofgem’s July energy price cap increases household bills and rising oil prices reintroduce cost pressures. Analysts highlight uncertainties around energy and food prices, while noting that the next chancellor’s fiscal stance could influence inflation’s trajectory.

South East Water warns it will require new financing shortly after July 2027 to remain solvent following a £55 million loss caused by severe winter outages. The company cites operational difficulties from drought conditions and major incidents in late 2025 and early 2026, which led to extensive service interruptions affecting more than 77,000 customers. Ofwat criticizes the supplier for recurring disruptions and welcomes a £30.5 million redress package funded by shareholders to improve local infrastructure. Lender negotiations for additional financing are reportedly in late stages and expected to conclude over the summer.

The IMF has urged Andy Burnham’s incoming UK government to avoid broad public-spending increases and instead reprioritise existing resources while maintaining its deficit-reduction plan. It recommends that measures responding to the Iran-related energy shock be targeted, temporary and budget-neutral, rejecting universal subsidies, energy-tax cuts and broad price caps. The fund also highlighted longer-term pressures from an ageing population, defence commitments and the transition away from fossil fuels, while praising Rachel Reeves’s existing fiscal strategy. Reeves is not expected to remain chancellor, with Ed Miliband reportedly among the possible successors.

Crest Nicholson reported a £35.2 million pre-tax loss for the six months to the end of April, compared with a £9.4 million profit a year earlier, and cut its full-year earnings outlook to the lower half of a £5 million–£15 million range. The housebuilder attributed weaker sales inquiries, visitor numbers and land-buyer confidence to subdued housing activity, weaker consumer confidence and uncertainty over possible property-tax changes. It is reducing land purchases and slowing development activity while facing building-material costs 3%–4% higher on average. Its shares fell by about 10% following the update.

The Renters’ Rights Act, which ended fixed-term tenancies in England and introduced rolling contracts, prompted a surge in student tenancy terminations in May and June, costing Foxtons approximately £3 million in previously recognised revenue. The London estate agency expects adjusted operating profit of £8.5 million for the first half of the year, down from £12.3 million a year earlier, amid weaker home sales, political uncertainty, the war involving Iran and persistently high interest rates. Foxtons said it had identified £4.5 million in annual cost savings and believes the reforms will ultimately increase demand for professional lettings and property management services.

UK GDP grew 0.1 percent in May, supported by services despite declines in production and construction. Analysts warn that rising energy costs and supply‑chain disruptions linked to the Iran conflict threaten future growth. Experts describe the economy as resilient but fragile, with incoming prime minister Andy Burnham expected to face inflation pressures, geopolitical uncertainty, and limited fiscal options. While some note the UK’s stronger‑than‑expected performance compared with G7 peers, others caution that households and businesses are unlikely to feel an improvement as energy prices rise and confidence remains weak.

The UK economy grew by 0.1% in May after contracting by 0.1% in April, with the services sector expanding 0.3% while production and construction declined. GDP rose 0.7% over the three months to May, although growth remained weak amid price pressures linked to the Iran war.

Burberry shareholders approved a new directors’ remuneration policy, although 35.4% voted against it. The plan gives Chief Executive Joshua Schulman the opportunity to earn up to £9.5 million if performance targets are met, or £12.2 million if the company’s share price rises by 50%. Burberry says the scheme is intended to align executive rewards with its three-year strategy and industry pay levels. Its Burberry Forward plan targets £100 million in annual savings by the 2027 financial year, including around 1,700 job cuts, while refocusing on heritage products such as trench coats and scarves. The company acknowledged investor concerns and said it would continue consulting shareholders.

The UK economy is expected to have grown by only 0.1% in May, following a 0.1% contraction in April, as weak services activity, elevated energy costs and global turbulence linked to the Iran war weigh on businesses and households. Pantheon Macroeconomics forecasts flat monthly growth but 0.2% expansion for the second quarter, while Deutsche Bank expects a 0.1% decline. Retail promotions and warmer weather provided some support, and England’s progress in the FIFA World Cup could boost pubs, bars and other sectors in July.

OECD analysis warns that rising energy and fuel prices driven by the Iran‑related Middle East conflict are constraining UK economic growth, projecting GDP to slow to 0.9 percent in 2026. The report highlights the UK’s vulnerability to fossil‑fuel price volatility and stresses the need for decarbonisation and electrification. It also cites persistent regional disparities and productivity issues as barriers to progress. Government officials, including Rachel Reeves, argue that the UK economy is improving, while Andy Burnham outlines plans to decentralise power and strengthen regional control over key services.

Andrew Bailey argued that UK financial regulations should help expose excessive bank profits without imposing profit caps, emphasizing the need for stability and balanced rules. He stated that regulation should allow markets to reveal supranormal returns by lowering entry barriers. Bailey said the central bank is open to simplifying rules as long as stability is maintained. The debate follows Kemi Badenoch’s call for reducing regulatory burdens and adjusting capital requirements to free investment funds.

Bank of England governor Andrew Bailey warned that persistently weak UK economic growth is a major structural challenge, while emphasizing that growth depends on maintaining financial stability. He told MPs that renewed hostilities involving Iran and the United States and Israel could further destabilize markets, increase inflation risks and affect interest rates. Brent crude, UK long-term borrowing costs and gilt yields rose amid the uncertainty, while Bailey noted that refined-fuel prices such as gasoline and diesel had not fallen as much as crude prices. He also said the low-growth problem was not attributable to a single government.

Ofcom has proposed nearly 40 measures requiring major social media platforms and search engines to tackle paid scam advertisements, including banning repeat offenders, blocking impersonators, creating dedicated reporting channels and rigorously testing AI advertising tools. Companies could eventually face fines of up to £18 million or 10% of global revenue for failing to comply. The proposals will be consulted on until 2 October, with final decisions expected in 2027 and requiring parliamentary approval. Ofcom estimates that fraudulent adverts cost UK victims about £200 million annually. Consumer group Which? welcomed the proposals but warned that the timetable leaves people unprotected while AI-driven scams become more sophisticated. Separately, the European Commission has demanded that Meta consider disabling addictive features such as autoplay and infinite scrolling, potentially exposing the company to a fine of up to 6% of global annual revenue.

Dame Jayne-Anne Gadhia, the former chief executive of Virgin Money, has been selected by Business and Trade Secretary Peter Kyle as the Government’s preferred candidate to chair the Financial Reporting Council. She would succeed Sir Jan du Plessis at the end of September, subject to scrutiny by the Business and Trade Committee. Gadhia brings experience from Virgin Money, Salesforce and the budgeting app Snoop. Her appointment comes as the FRC continues investigations into major audit failures involving EY, KPMG and PwC, after the Government abandoned plans to replace the regulator with a more powerful body.

Marks & Spencer has reopened its refurbished Pantheon flagship on London's Oxford Street, spanning four floors and nearly 100,000 square feet with food, fashion, homeware and beauty departments. The store includes made-to-order suit fittings, a dedicated beauty hall, expanded homeware and digitally enhanced shopping features, and is intended as a blueprint for future locations. M&S is also pursuing further refurbishments and new stores across London and the UK, including a planned nine-storey redevelopment at Marble Arch following a lengthy planning dispute.

UK GDP is expected to show no growth for May, following April’s slight contraction driven by declining services activity and pressure from high energy costs. Economists forecast continued weakness across services, though some sectors may benefit from warmer weather, retail promotions and increased activity linked to England’s World Cup performance. Geopolitical tensions related to the Iran conflict are cited as contributing to economic strain. Chancellor Rachel Reeves acknowledged public frustration while stating that the next government will inherit a stronger economy than two years prior.

EasyJet has agreed in principle to a £5.7 billion takeover offer from US private equity firm Apollo, valuing each share at £7.15. The offer replaces Castlelake's £5.23 billion bid, and EasyJet's board recommends Apollo's proposal because it provides greater cash value for shareholders. Apollo must make a formal offer by 7 August, with the deal potentially resulting in EasyJet's delisting from the London Stock Exchange and foreign ownership.

French billionaire Xavier Niel's family investment vehicle, Vega, has agreed to acquire a roughly 16.2% stake in Vodafone from UAE telecoms group E&, investing about £4.4 billion and making Niel Vodafone's largest shareholder. Niel, the founder and controlling shareholder of Iliad Group, said he sees Vodafone as a compelling investment with strong assets and significant untapped value in its European and African operations. The investment follows Vodafone's restructuring under chief executive Margherita Della Valle, including a focus on Germany, the UK and Africa and the planned £4.3 billion acquisition of CK Hutchison's remaining stake in VodafoneThree. Vodafone said its relationship with E& had ended and that E&'s board representative had resigned.

Rightmove reports that the number of whole new-build housing developments coming to market in May was at its lowest level since January 2017, despite the overall number of homes for sale being 85% higher than four years ago. The company says the figures indicate a continuing shortage of affordable homes and suggest the UK may not meet the government’s target of building 1.5 million homes during the current parliament. A prolonged construction slowdown, rising regulatory and borrowing costs, project delays, weak customer confidence and economic uncertainty are restraining development and demand. Barratt Redrow is calling for more targeted assistance for first-time buyers, while Rightmove supports abolishing stamp duty for first-time buyers purchasing new-build or resale homes. The housing ministry says supply will increase later in the parliament, citing a 15% annual rise in new housing starts and planning reforms intended to support developers.

Britain’s National Energy System Operator has issued its third electricity margin notice of the year, warning of tight power margins from 6:30pm to 10:30pm on Thursday as extreme temperatures across Europe increase demand for fans and air conditioning and reduce generation efficiency. The notice seeks a larger safety cushion but does not signal imminent blackouts.

The UK’s National Energy System Operator issued a rare summer electricity margin notice for Thursday evening, warning of tight supply margins between 6:30pm and 10:30pm as extreme temperatures reduce the availability of some power generation and increase demand for air conditioning and fans. NESO stressed that the notice does not indicate imminent blackouts or insufficient generation. The warning follows two similar notices in June, both of which were cancelled early. Temperatures are expected to exceed 30°C widely across the UK, with parts of England potentially reaching 36°C.

Hostelworld increased first‑half revenue to 52.2 million euros by raising its effective commission rate through its Elevate marketplace tool, despite weaker long‑haul bookings linked to the Iran conflict. Total bookings were largely flat, but higher commissions and monetisation features supported sales. The company said the conflict reduced bookings growth by about 3%, though demand in Europe and North America held up. Leadership expects conditions to stabilise in the second half of the year.

Marks & Spencer will debut a “see now, buy now” womenswear and menswear collection at London Fashion Week in September, coinciding with its centenary in fashion. The collection will be sold online and in flagship UK stores, while the show will be streamed. The event forms part of M&S's broader investment in fashion, home and beauty, including efforts to double online sales and expand distribution capacity through a warehouse previously used by ASOS, scheduled to open in 2027.

Oil prices surged after renewed US-Iran strikes threatened a fragile ceasefire, reversing recent declines following an interim deal to reopen the Strait of Hormuz. Donald Trump’s declaration that the ceasefire was “over” triggered sharp movements in energy markets and deepened losses across European stock indexes. Iran’s targeting of transiting tankers and US retaliatory strikes undermined negotiations over Iran’s nuclear programme, while reinstated US sanctions added further strain. European markets slid broadly, though major energy companies gained from higher crude prices.

Ofwat found Severn Trent Water in serious breach of wastewater and sewage management regulations but chose not to impose a fine, citing the company’s proactive identification of problems and substantial investment in improvements. Severn Trent has invested £98 million to upgrade infrastructure, contributing to a 41 percent reduction in storm overflow spills despite adverse weather. Ofwat contrasted the company’s approach with other cases in its industry-wide investigation, which has resulted in over £300 million in fines, including a major penalty for Thames Water. Severn Trent’s chief executive affirmed commitment to further environmental and customer service improvements while Ofwat continues two remaining enforcement cases.

ITV agreed to sell its media and entertainment division, including its free‑to‑air channels and ITVX, to Sky in a deal worth up to £1.6 billion. Sky will gain broader access to UK audiences and a stronger position in the TV advertising market, while ITV retains its production arm, ITV Studios, which will operate independently and continue supplying programming under a long‑term agreement. Popular shows and free‑to‑air access will remain unchanged for now, and Sky has committed to fulfilling ITV’s public service broadcasting obligations through 2034. Regulators, including Ofcom and the Competition and Markets Authority, are expected to scrutinize the merger due to concerns about market dominance, particularly in advertising.

Lloyds Banking Group will retire the Halifax brand after 173 years, shifting all Halifax customer accounts to Lloyds while keeping account details unchanged. The move is described as part of efforts to simplify the group’s brand portfolio as distinctions between the banks have diminished. Lloyds says customers will retain familiar services, and employees in Halifax and the wider Yorkshire region will not face job losses. Branches will be rebranded or consolidated during 2027, and customer protections under the Financial Services Compensation Scheme will remain in place.

Brompton sold a 15% stake to Decathlon Pulse and BA Capital in a deal worth about £18 million to support expansion into global markets, particularly Germany and China. Decathlon will back growth while maintaining the brand’s London-made identity and will offer selected models in its stores. BA Capital highlighted rising demand in China for health-focused and experience-driven products. Brompton’s leadership emphasized growing opportunities in sustainable urban transport.

Barclays purchased a 999‑year leasehold for its One Churchill Place headquarters in Canary Wharf for £750 million, securing long‑term control and cost certainty beyond its existing 2039 lease. Executives from Barclays and Canary Wharf Group described the acquisition as a sign of confidence in London’s financial district and the future of office work. The deal follows a 5.35 percent pay rise agreement for 20,000 UK staff through Unite. Wider shifts in Canary Wharf include JP Morgan’s planned new tower and HSBC’s partial relocation to St Paul’s while retaining a smaller local office.