Holly Williams

UK government borrowing rose unexpectedly to £1.8 billion in July, exceeding both economists’ expectations of no borrowing and the Office for Budget Responsibility’s projected surplus. Borrowing during the first four months of the financial year reached £56.7 billion, while total public debt approached £3 trillion, standing at £2.985 trillion, or 94.1% of GDP. Higher income tax receipts were outweighed by increased welfare spending and debt-interest costs. The figures intensify fiscal pressure on Chancellor John Healey ahead of his 28 October Budget, with analysts warning that further tax rises may be needed and that higher gilt yields could increase borrowing costs further.

UK grocery price inflation fell to 2.1% in the four weeks to 9 August, its lowest level since October 2024. Consumers spent less, used more promotional discounts and shifted toward chilled finger foods, salads, ice cream, frozen fruit and soft drinks during repeated heatwaves. Ocado recorded the fastest sector growth, while Sainsbury’s led the major supermarket chains; Lidl made the largest market-share gain, whereas Asda’s sales decline narrowed but its share fell.

UK grocery price inflation fell to 2.1% in the four weeks to 9 August, its lowest level since October 2024, while average household grocery spending declined to £410. Heatwaves shifted purchasing toward chilled and picnic foods, with particularly strong growth in frozen fruit, ice cream, sorbet, dips, salads, soft drinks and sun cream, while meals were eaten later. Supermarket promotions accounted for a record 31.3% of sales for the year. Ocado recorded the fastest sector growth, while Sainsbury’s led major chains; Lidl gained the most market share and Asda’s sales decline narrowed despite a lower share.

UK inflation is expected to rise to 2.9% in July from 2.6% in June, largely because Ofgem’s 13% energy price-cap increase added about 0.5 percentage points. Economists warn that elevated energy costs, possible disruption around the Strait of Hormuz, and heatwave-related crop shortages could push inflation above 3% later in the year and prompt the Bank of England to raise rates from 3.75% to 4%. Food producers expect climate-related supply problems to increase food inflation into 2027, while July’s retail-price data will also influence next year’s rail-fare decisions.

Andy Burnham has criticized proposed water-bill increases affecting millions of households, arguing that customers should not fund water companies’ failures. Ofwat has provisionally approved an additional £3.4 billion for five firms to upgrade infrastructure, on top of bill increases of 36% between 2025 and 2030. The investment is intended to address housing and data-centre demand, drought resilience and contaminants, but comes amid record pollution concerns, leaks, supply failures and hosepipe bans. Campaigners and consumer representatives warn that low-income households are already under severe financial pressure and demand proof that the spending is necessary and delivers value. Thames Water, burdened by more than £20 billion in debt, faces particular financial distress, while Ofwat says funding can be clawed back if companies fail to improve.

TUI’s third-quarter pre-tax profit fell 43% to €153.4 million as the Middle East conflict increased fuel costs, weakened demand and disrupted cruise operations. Underlying earnings declined 27%, customer numbers fell 3%, and the company recorded an €81 million financial impact from the Iran war and Jamaican hurricanes. Chief executive Sebastian Ebel said geopolitical tensions, inflation and economic weakness were causing customers to book later. TUI kept its full-year outlook unchanged, citing improving bookings, continued demand for Greece and Spain, and a recent recovery in Eastern Mediterranean travel.

TUI’s third-quarter pre-tax profits fell 43% to €153.4 million as travellers delayed bookings amid geopolitical uncertainty, higher fuel costs, inflation and subdued demand. The company recorded an €81 million impact from the Iran war and Jamaican hurricanes, including a €20 million hit to its cruise division after roughly 5,000 guests were repatriated from Abu Dhabi. Customer numbers declined 3% to 9.9 million, while the markets and airline business swung to an underlying loss. TUI’s hotels, cruises and activities division proved more resilient, and the company maintained its full-year outlook as bookings improved in recent weeks, with Greece, Spain and parts of the Eastern Mediterranean remaining popular.

Sainsbury’s has agreed to sell Argos to newly formed Swift Partners for at least £120 million, including a £70 million upfront payment. The deal covers Argos’s standalone and in-store locations, collection points, logistics operations, warranty and insurance services, as well as facilities in Daventry, Shanghai and Hong Kong. Sainsbury’s says the sale will allow it to concentrate on food and grocery, while Swift plans to invest in Argos’s digital capabilities and nationwide reach. Richard Pennycook will become executive chairman, and the transaction is expected to complete in February, with full separation by 2029. Usdaw is seeking protection for affected employees’ jobs and working conditions.

The FTSE 100 reached a record intraday high of 10,979.24 as strong results and guidance upgrades from companies including Rolls-Royce and BAE Systems offset market pressure from the Iran conflict and technology-sector concerns. Energy and defence stocks have benefited from higher oil prices and expectations of increased global defence spending, helping the index recover losses incurred after US and Israeli strikes on Iran. Shell reported better-than-expected second-quarter results, while Rentokil Initial fell 21% after warning of weaker North American residential demand.

The Information Commissioner’s Office raided residential and business premises linked to five companies suspected of sending nuisance texts promoting motor finance mis-selling claims. Regulators say more than 12 million complaints have been made since September, while the firms are believed to have sent about 170 million messages. The ICO is working with the Financial Conduct Authority, Advertising Standards Authority and Solicitors Regulation Authority to address aggressive marketing, poor claims handling and potential fraud. The FCA’s planned compensation scheme for customers affected by hidden or unfair motor-finance commissions has been delayed by legal challenges; meanwhile, more than 1,220 misleading adverts have been removed or amended and 12 firms have accepted restrictions on their marketing.

Mortgage rates have risen as markets anticipate possible Bank of England rate increases, with more than 30 lenders increasing rates and the average new deal reaching 5.59%. Moneyfacts warns that ongoing Middle East conflict and inflationary pressure could prompt further hikes, advising prospective borrowers to secure deals early. The increase has added about £230 a year to repayments on a £200,000, 25-year mortgage. Savers are benefiting from higher returns, with average new savings rates at 3.59% and some easy-access and fixed options paying up to 5%.

Higher global defence spending, driven by international conflict including Russia’s war in Ukraine, is boosting the financial outlooks of BAE Systems and Rolls-Royce. Rolls-Royce raised its 2026 underlying operating-profit guidance to £4.7 billion–£4.9 billion after a 46% rise in first-half underlying earnings, while BAE Systems increased its expected 2026 underlying-earnings growth to 10%–12%. Rolls-Royce is also benefiting from civil aerospace demand and data-centre power systems. The companies’ gains coincide with growing pressure on the UK government to increase defence investment, with BAE chief executive Charles Woodburn warning that current spending remains well below what is needed.

Average asking prices for UK homes with sea views rose 27% from £235,635 in 2019 to £298,810, exceeding the 22% national property-price increase. The East Midlands and Yorkshire and the Humber recorded the largest regional gains, while the South East remained the most expensive region and Scotland the most affordable. West Mersea in Essex had the largest sea-view premium, followed by Frinton-on-Sea, Broadstairs and Littlehampton, highlighting growing buyer demand for coastal lifestyles across both prestigious and more affordable seaside markets.

Aston Martin reported worse-than-expected second-quarter pre-tax losses of £88.7 million, taking its first-half deficit to £154.2 million, despite first-half revenue rising 38% to £628.6 million and wholesale volumes increasing 21%. The company is relying on sales of its Valhalla plug-in hybrid supercar, cost reductions and transformation measures to improve performance in the second half of 2026. It has secured £550 million in debt financing from HPS Investment Partners and more than £600 million from chairman Lawrence Stroll, while also cutting up to 600 jobs. US tariffs, higher Chinese luxury-car taxes and Middle East conflict-related uncertainty continue to threaten demand, confidence and supply chains.

Reckitt is raising prices across most markets, including the UK, to offset cost pressures linked partly to volatile oil prices and the Iran-related Middle East conflict. The company now expects a smaller 2026 input-cost impact as oil prices have eased and is maintaining its forecast for 4%–5% revenue growth. Core-brand like-for-like sales rose 4.2% in the second quarter, supported particularly by Dettol demand in China, while underlying operating profit fell 14.3% in the first half, partly because of last year’s disposal of a majority stake in its Cillit Bang and Calgon business. Reckitt also announced a share buyback of up to £500 million.

West Yorkshire Tudor-themed café chain Merrie England has closed all six of its sites in Huddersfield, Halifax and Brighouse after 60 years. The company cited rising energy bills, business rates, staffing costs, goods prices and government policy, alongside reduced customer footfall and spending. It said price increases needed to offset those pressures had made trading increasingly difficult.

GSK plans to close its main research and development hub in Stevenage and move more than 1,000 scientists to a new 300,000-square-foot facility at Cambridge Biomedical Campus by 2029, with some staff transferring to Ware. The company will invest £400 million in the relocation while targeting £1.9 billion in cost savings over three years, primarily to fund late-stage medicines and R&D and offset the impact of HIV treatment dolutegravir losing patent protection. Some support-service roles may be affected, following earlier job cuts at the Stevenage site.

Unilever raised its full-year sales and volume-growth outlook after recording 5.8% sales growth in the second quarter and its strongest underlying volume performance in more than a decade. First-half pre-tax profit rose 1.8% to €4.66 billion, while beauty, wellbeing, personal care and home products outperformed food. The results come as Unilever advances a £33.8 billion food-business joint venture with McCormick, combining brands including Marmite and French's mustard, although some shareholders have criticised the deal. Analysts said portfolio streamlining could strengthen Unilever's competitive position, but warned that the company must manage inflation, emerging-market momentum and weaker developed-market growth.

Ofcom is proposing to block Openreach’s “New To Openreach” broadband discount, arguing that its aggressive pricing for new full-fibre customers could undermine rival alternative network providers and damage long-term competition. The offer provides internet service providers with discounts of up to £9.50 per customer per month for up to 30 months. Ofcom said matching the discounts could prevent competitors from recovering their costs, while Openreach must still be allowed to compete without using its market power to drive other networks out. A consultation will run until 27 August, with a final decision expected by the end of September.

Whitbread has confirmed that all 89 Brewers Fayre restaurants will close after dinner service on 7 September and all 106 Beefeater locations will shut on 10 September. Its other separately branded chains, including Bar + Block, Cookhouse + Pub and Table Table, are due to close on 3 September. The restructuring affects around 200 sites and approximately 3,800 jobs in the UK and Ireland, with the spaces intended to be converted into Premier Inn hotel rooms. Whitbread expects the strategy to deliver £250 million in cost savings over five years and expand its hotel-room estate to 96,000 by the 2031 financial year, amid rising business rates and employer national insurance costs.

Oil prices fell sharply, with Brent crude briefly dropping 8% to $87.55 a barrel, as a three-day pause in US-Iran fighting revived hopes of renewed peace negotiations and the reopening of the Strait of Hormuz. The waterway’s closure has disrupted a route previously carrying nearly a fifth of global crude supplies, while continuing conflict in the Red Sea and alleged Houthi attacks on Saudi energy infrastructure remain risks. Analysts said sustained lower oil prices could ease inflation pressures and give the Bank of England more room to hold interest rates, but warned that reopening Hormuz is crucial to keeping global energy prices under control.

DCC Energy has agreed to a takeover worth up to £5.75 billion from a consortium led by KKR and Energy Capital Partners, after rejecting two earlier approaches. The deal includes potential additional payments tied to the sale of its Nexora technology division. DCC’s board supports the offer, citing a cash premium and value above what the company has consistently achieved in public markets, although major investors including Aviva Investors and Fidelity International have reportedly expressed concerns that earlier proposals undervalued the business. The transaction would take DCC private amid a broader wave of takeovers involving London-listed companies.

HSBC has agreed to sell its Singapore life and insurance business to Allianz for S$2.7 billion (£1.6 billion), with completion expected in the first half of next year. HSBC will retain access to customers through a 15-year distribution agreement and expects a pre-tax gain of about US$1.8 billion, alongside an initial US$200 million cash payment tied to the arrangement. The transaction is part of chief executive Georges Elhedery’s broader effort to simplify the group, reduce costs and focus on markets where HSBC sees the strongest growth opportunities. The bank has also exited selected markets and cut parts of its investment banking operations, while recent results showed slightly lower pre-tax profits despite revenue growth driven by wealth management and Hong Kong.

Nestlé will spin out its bottled-water and hydration business, including Buxton, Perrier, S.Pellegrino, Acqua Panna and Nestlé Pure Life, into a new 50/50 joint venture with Platinum Equity called Peranel. The venture is valued at about €4.9bn (£4.2bn), generating implied cash proceeds of €3bn (£2.6bn) for Nestlé, and will be headquartered in Paris under Muriel Lienau. UK unions Unite and GMB warned that private-equity ownership must not lead to job losses, reduced pay or weaker employment conditions, particularly at Buxton and Princes Gate Water, amid previously announced Nestlé job cuts. The transaction coincided with Nestlé reporting 3.6% organic sales growth for the first half of the year, but weaker volume growth, a 7% share-price fall and a reduced profitability outlook disappointed investors.

easyJet reported a 70 per cent fall in pre-tax profit to £85 million for the quarter ending 30 June, as fuel costs rose by £105 million following the Middle East conflict and bookings weakened. Passenger numbers fell 0.4 per cent to 25.8 million, while the airline’s load factor also declined. Strong late bookings and improving summer demand provided some reassurance, but the full-year outlook remains dependent on future bookings and volatile fuel prices. The results came shortly after easyJet agreed in principle to a £5.7 billion takeover by Apollo, following a competing proposal from Castlelake.

Bloomsbury expects to receive about $42.3 million before legal fees from Anthropic’s $1.5 billion copyright settlement, covering 14,087 titles at roughly $3,000 per work. The payment will be split equally between the publisher and authors and made in several instalments. The settlement, approved by a US judge after claims that Anthropic used books to train its Claude AI without permission, covers around 482,000 works, with 91% claimed. It is viewed as a major precedent for numerous other AI copyright cases and could support future licensing agreements between publishers and AI companies.

Santander UK will keep all Santander and newly acquired TSB branches open until 2028 despite continued cost‑cutting efforts. The commitment follows earlier branch closures and comes as the bank pursues £400 million in savings through automation after purchasing TSB for £2.65 billion. Half‑year results show a 31 percent drop in pre‑tax profits due to motor finance mis‑selling charges, higher bad debt provisions linked to economic pressures, and restructuring costs. The bank has contacted thousands of customers expected to be affected by rising energy costs amid the Iran war’s economic impact.

UK job vacancies fell by 7,000 to 712,000 in the quarter to June, with small businesses accounting for most of the decline as rising labour and operating costs constrained hiring. Private-sector regular wage growth dropped to 2.9% in the three months to May, while overall wage growth held at 3.4% because of a 5.5% rise in public-sector pay linked partly to NHS awards. Unemployment remained at 4.9% and payroll employment edged down by 4,000. Economists said the labour-market deterioration may have bottomed out but warned that higher energy prices linked to disruption around the Strait of Hormuz and the Iran conflict could worsen the outlook. The data are expected to support the Bank of England keeping interest rates on hold.

Thames Water’s lenders are considering offering the Government a golden share as part of a revised rescue deal aimed at preventing temporary nationalisation. The London & Valley Water consortium is proposing enhanced public oversight, local supervisory structures and long-term investor restrictions to address government concerns after its previous £10 billion plan was deemed insufficient. With Thames Water facing significant liquidity risks and holding more than £20 billion in debt, the Government is expected to decide soon on possible nationalisation, while creditors signal they may take legal action if the company is taken into public ownership.

Prologis has had a third takeover proposal for British warehouse property developer Segro, valued at £13.5 billion or £9.93 per share, rejected as undervaluing the company and being opportunistically timed. The revised offer includes up to £2.7 billion in cash, with Prologis taking its case directly to Segro shareholders and considering a secondary London listing. Segro chairman Andy Harrison said the proposal failed to reflect the quality and long-term prospects of Segro’s portfolio. Prologis must make a firm bid by 5pm on July 22 or withdraw under UK takeover rules.

Ryanair’s quarterly profits fell 34 percent as jet fuel prices doubled due to the Iran conflict and the airline cut fares to stimulate demand. Higher fuel costs, only partly hedged, and reduced fares outweighed gains from a 6 percent rise in passenger numbers and a slight increase in revenue. Operating costs rose 11 percent, while geopolitical instability and resumed fighting pushed fuel prices back up after a brief dip. CEO Michael O’Leary warned that continued conflict, economic uncertainty, and air traffic control disruptions make the full-year outlook highly uncertain, with booking patterns remaining very close to departure dates.

UK-listed travel and leisure companies issued seven profit warnings between April and June, the highest quarterly total since late 2022, as the Iran war reduced bookings and increased fuel and energy costs. Housebuilders issued six warnings in the quarter and eight in the first half, driven by rising construction costs, falling house prices, weak demand and persistently high interest rates. EY-Parthenon recorded 59 warnings across UK-listed firms during the quarter, with geopolitical and policy uncertainty cited by 53%, while rising costs, delayed or cancelled orders and weak consumer confidence were also significant factors.

Wise reported first-quarter net revenue of $714 million, up 25% year on year, while active customers rose 21% to nearly 12 million and customer holdings increased 31% to $41.2 billion. Chief executive Kristo Kaarmann said the growth reflected greater customer trust in Wise for everyday financial needs. The company moved its primary listing from London to New York, but remains under investigation by Belgian authorities over money-laundering concerns involving more than £400 million in transactions. Its shares previously fell sharply after the investigation became public.

British engineering company Rotork has agreed to a £4.1 billion takeover by Swiss industrial group ABB, which will pay 506p per share. Rotork, headquartered in Bath and specialising in flow control equipment, will operate as a separate ABB division. ABB said limited job cuts could occur in overlapping administrative and support functions, but no material wider headcount reductions are expected. The deal adds to a series of foreign takeovers of UK-listed companies and further pressures London’s stock market.

BrewDog co-founder James Watt has launched a bid through his new beer company, Second Best, to buy back the craft brewer from US owner Tilray Brands. Watt says 43,000 equity investors are supporting the offer and promises to restore their BrewDog equity, reinstate the real living wage, return equity to employees and put the community at the center of the business. Tilray acquired BrewDog out of administration for about £33 million, leading to dozens of bar closures and nearly 500 job losses. Watt, who stepped down as chief executive in 2024, has apologised for past decisions including rapid expansion, broad diversification and inadequate responses to crises.

UK GDP grew 0.1% in May after a slight contraction in April, with modest services growth offsetting declines in production and construction. Businesses reported supply chain disruption linked to the Iran conflict, which, along with rising fuel and energy costs, is expected to pressure growth through the year. Analysts project weaker second‑quarter expansion, while economic stability is highlighted as a priority for the incoming Prime Minister. The Treasury maintains that the UK remains in a strong relative position, citing earlier G7 performance and OECD assessments.

James Watt has submitted an offer through his new company Second Best to buy back BrewDog, months after Tilray acquired it out of administration. He says thousands of Equity Punks have joined the bid and promises to restore wages, employee equity and community focus if successful. BrewDog’s collapse into administration left investors with losses and resulted in widespread bar closures and job cuts. Watt reflects on past mistakes and expresses regret for the impact on staff and shareholders.

Thames Water paid £4.09 million in bonuses to senior management and increased chief executive Chris Weston’s total annual compensation to £1.16 million, despite the company’s poor performance and £20 billion debt burden. Environment Secretary Emma Reynolds condemned the payouts as unfair and accused water suppliers of bypassing restrictions on executive bonuses. Thames Water said Weston’s £99,000 retention payment predated the Water (Special Measures) Act and that he received no performance-related bonus for 2025–26. The company’s remuneration committee defended retention payments as necessary to keep experienced leaders during its transformation, while the firm has paused £2.46 million in payments to 21 other senior executives amid public criticism.

Barratt Redrow plans to return £400 million to shareholders through a £386 million share buyback and £14 million in dividends after activist investor Phoenix Asset Management Partners demanded larger buybacks. The company says the programme will create long-term shareholder value, while Phoenix welcomed it as a step toward improving returns. Barratt remains on track for expected underlying pre-tax profits of £559.5 million and anticipates housing completions at the upper end of guidance, but warned that house-price inflation may be minimal and build costs could rise by 3% to 4% amid energy-price volatility and supply-chain disruption. Outgoing chief executive David Thomas will retire in September and be succeeded by Dean Banks.

Thames Water chief executive Chris Weston is seeking urgent clarity from incoming prime minister Andy Burnham as the company warns that its funding could run out by October without creditor support or a recapitalisation deal. Creditors are revising a proposed £10 billion rescue after Environment Secretary Emma Reynolds said it did not adequately protect customers or the environment, while Burnham has indicated support for a 10-year plan to renationalise the water industry. Thames Water reported a £1.1 billion cash outflow, £19.77 billion in debt, rising customer complaints and achievement of only 55% of regulatory targets, despite returning to a £226.4 million pre-tax profit. The company also disclosed substantial executive bonuses and increased pay, prompting renewed government criticism.

Thames Water reported a return to an annual pre-tax profit of £226.4 million, but its debt increased to £19.77 billion. Chief executive Chris Weston said the company has funding only until October and needs creditor support and recapitalisation to avoid running out of cash. A proposed £10 billion investment from the London & Valley Water consortium is under pressure after Environment Secretary Emma Reynolds said it did not adequately protect customers or the environment. Thames Water is seeking an extension of funding into 2027, while uncertainty over Andy Burnham’s proposed 10-year plan to renationalise the water industry complicates efforts to secure a rescue deal.

Watches of Switzerland reported a 76% rise in annual pre-tax profit to £133 million and a 13% increase in sales to £1.83 billion, supported by 24% growth in the United States despite tougher conditions in the UK and Europe. The luxury retailer is broadening beyond watches by opening jewellery showrooms and launching lab-grown diamonds through Goldsmiths. Luxury jewellery sales rose 17%, and the group expects revenue to grow by 5% to 10% in the new financial year as it maintains strong US momentum and sees signs of improvement in the UK.

BP expects its oil-trading result for the second quarter to improve slightly from the previous quarter as crude prices surge, but it anticipates a roughly $1 billion (£740 million) impairment charge against transition businesses and lower upstream production. The company attributed the production decline to seasonal maintenance and disruption caused by the Middle East conflict. BP shares rose 3% as higher oil prices outweighed the mixed operational update, while the continued uncertainty over the Strait of Hormuz threatens further energy-market volatility. The update comes as chief executive Meg O’Neill faces pressure to revive BP following a strategic shift back toward oil and gas and turmoil surrounding former chairman Albert Manifold.

South East Water must pay £30.5 million after Ofwat investigations into repeated water-supply interruptions affecting more than 286,000 people across Kent and Sussex, including up to 70,000 homes during outages between November and January. The regulator found failures in supply resilience, customer communication and the provision of bottled water, with disruptions affecting households, schools, businesses and people with medical conditions. The package, funded by shareholders rather than customer bills, includes £5 million for household water butts, £5 million to accelerate smart metering for non-household customers, £5 million for on-site storage, £13 million for the company's turnaround plan and £1 million for vulnerable sites. Ofwat will appoint an independent monitor, funded separately by South East Water, to oversee its improvement efforts.

The Real Rates Reform Alliance is urging Andy Burnham to go beyond his existing plans for business-rates reform by replacing the current property-tax system with a hybrid model that would impose a 2% tax on online sales. The alliance says this could cut rates for physical businesses by 37% while raising slightly more than the £34 billion currently collected. It cites research showing that business rates are increasing costs, job cuts, hiring freezes and price rises for firms. Burnham’s proposals include raising the thresholds for small-business relief and increasing property taxes on large warehouses. Separately, the CBI and Energy UK are calling for urgent action on high business energy costs.

PageGroup reported a slight improvement in UK trading conditions, describing the job market as tough but stable while continuing significant cost reductions. UK gross profit fell 5.3% in the second quarter, a smaller decline than earlier in the year, with technology recruitment and executive hiring showing signs of recovery. Global performance was mixed but improving in several regions, helping shares rise more than 15% amid renewed investor optimism. The company cut additional staff and continued office closures and restructuring measures that have generated substantial annual savings. Leadership noted lingering uncertainty in the outlook despite early signs of normalisation. Analyst commentary highlighted ongoing global labour market weakness but acknowledged improved sentiment following PageGroup’s latest update.

Oil prices rose sharply after renewed US-Iran attacks and uncertainty over control of the Strait of Hormuz, with Brent crude increasing 4% to $79 a barrel. European and UK gas prices also climbed, raising the prospect of higher petrol costs, renewed inflation and increased interest-rate pressure. The disruption threatens a key route carrying about a fifth of global oil and gas shipments, while the conflict adds uncertainty to UK government borrowing costs and the expected change in prime minister.

AstraZeneca lost more than £20 billion in market value after its Wainua heart-disease trial failed to reduce cardiovascular deaths when added to standard care. The gene-silencing drug, jointly developed with Ionis Pharmaceuticals, targets transthyretin-mediated amyloid cardiomyopathy, a progressive condition affecting an estimated 300,000 to 500,000 people worldwide. Analysts said the failure threatens AstraZeneca's ambitious 2030 targets and anticipated peak annual sales of about $6 billion, although the company said the results could still advance scientific understanding. The setback follows a delay by US regulators to approve another AstraZeneca cancer drug.

Capita expects its underlying operating profit to fall by £25 million to £40 million in 2026, with free cash flow also reduced by £35 million to £50 million, because of failures administering the 1.7 million-member Civil Service Pension Scheme. More than 6,700 retirement quotations and 4,100 bereavement cases remain outstanding, prompting parliamentary criticism, government sanctions and the deployment of 140 civil servants to help clear the backlog. The Cabinet Office has withheld nearly £10 million in payments and is seeking to recover further costs, while Capita says it is investing in additional resources and making the contract its top priority.

Workspace is urging shareholders to reject proposals from activist investor Saba Capital Management at its upcoming annual general meeting. Saba, which has increased its stake to 28%, wants the company’s properties sold and all six non-executive directors replaced, arguing that Workspace shares trade below the value of its assets and that the company has a record of destroying value. Workspace disputes the plan as high-risk and short-sighted, citing Saba’s limited experience in listed real estate and warning that it could lead to value destruction. The office landlord is facing falling rents, lower occupancy, rising debt and energy costs, and a substantial decline in expected earnings. Shareholders must vote by July 21, ahead of the July 23 AGM.

Virgin Media was fined £28 million after Ofcom found it deliberately hindered customers from cancelling services over several years and failed to fully cooperate with the investigation. Nearly 2,000 complaints prompted the probe, which uncovered tactics such as pressuring customers to stay, transferring calls unnecessarily and delaying or dropping cancellation requests. Virgin Media’s commission structure encouraged staff to dissuade cancellations. The company has since overhauled its customer service operations, and affected customers are to receive compensation, while the fine will go to the Treasury.

Vistry warned that it expects a first-half loss of about £30 million, compared with a £40.9 million profit a year earlier, sending its shares down as much as 12%. The housebuilder attributed the deterioration to tough trading, incentives and discounts, asset sales, cost pressures and weaker customer confidence linked to uncertainty surrounding the Middle East conflict. Chief executive Adam Daniels is leading an overhaul that includes redundancies, further cost reductions and a strategic review, while chief financial officer Tim Lawlor is due to leave in October. Despite completing fewer homes than a year earlier, Vistry maintained its underlying full-year pre-tax profit expectation of £200 million, excluding potential one-off impacts from the review, and said market conditions were unlikely to improve significantly before 2027.

Marks & Spencer plans major investment in more resilient refrigeration systems after several stores experienced failures during extreme heat that reached the mid‑40s. The company anticipates hotter conditions in coming years and is reviewing cooling systems across its estate. At its AGM, shareholder group ShareAction pressed the retailer to restore pay rates to the real living wage after recent increases left wages below the voluntary benchmark. M&S cited significant cost pressures but said alignment could return next year. The company also announced it will open its largest standalone food store in Surrey in mid‑July.

Marks & Spencer is upgrading refrigeration systems after fridges failed during a June heatwave, preparing stores to handle temperatures up to 45C as climate risks increase. The Met Office projects a growing likelihood of extreme heat in the coming decades. At its annual meeting, shareholders pressed the retailer to realign pay with the real living wage after recent increases fell short of the benchmark. Leadership cited cost pressures but suggested alignment may return next year. The company also announced plans to open its largest standalone food store in Surrey.

Capita’s shares dropped sharply after the company admitted failures in administering the civil service pension scheme, prompting government criticism and intervention. Cabinet Office minister Nick Thomas-Symonds condemned the firm’s performance, citing significant backlogs in retirement and bereavement cases and pledging to recover costs from the contractor. The government has withheld nearly £10 million in payments, while unions called for the contract to be brought back in-house. Capita apologised and said new systems are in place to address delays, with a trading update expected later in the week.

Shell expects stronger integrated-gas and trading performance in the second quarter as the Iran conflict drove oil, jet-fuel and gas prices higher. However, gas production is forecast to fall sharply from the first quarter because Shell’s Pearl GTL facility and other partly owned LNG assets in Qatar were disrupted by attacks. Oil and gas trading and chemicals operations are expected to remain strong, while oil prices have since fallen from above $120 to about $73 a barrel following an interim US-Iran peace deal. Shell’s shares have weakened with oil prices, although stronger refining margins could support future shareholder returns.

Sky plans to acquire ITV’s media and entertainment arm for £1.6bn, including ITV’s terrestrial channels and ITVX, while excluding ITV Studios. The combined business aims to save £200m annually within three years and compete more effectively with global streaming platforms, but Sky and ITV acknowledge that overlapping corporate and commercial roles could be cut, with no figure yet specified. ITV Studios will become a standalone global content company and continue supplying programmes to the combined business under a long-term agreement, supported by at least £2.1bn in Sky spending from 2028 to 2032. The transaction faces an expected 12-to-18-month regulatory review, with lawmakers calling for scrutiny of its impact on audiences and public-service broadcasting.

UK construction activity remained firmly in contraction in June, with the construction PMI rising marginally to 38.4 from May’s six-year low of 38.2. Housebuilding and civil engineering experienced deeper declines, while commercial construction contracted more slowly. Economists said the sector may have reached a floor, citing improved forward-looking expectations, easing cost pressures, fewer supply-chain disruptions and a rebound in business optimism. However, subdued housing sales, high interest rates, squeezed consumer finances, reduced business investment and delays to infrastructure work continue to weigh on activity.

Ocado co-founder and chief executive Tim Steiner will remain in the role until the end of 2027 while the company identifies and prepares his successor. He will then serve as an adviser in a founder role through 2029. The succession process follows pressure linked to a steep share-price decline, warehouse closures in the United States and plans to cut around 1,000 jobs, mainly at the company's Hertfordshire headquarters. Ocado also recently announced a partnership with Asda to improve its online grocery service.

EasyJet’s board has indicated it would be minded to recommend Castlelake’s fifth takeover proposal, worth £6.90 per share and up to £5.5 billion on a fully diluted basis. The US investment firm must make a formal offer by 3 August after receiving an extension, and EasyJet shares rose more than 10% following the announcement. Castlelake has offered assurances on regulatory approvals, support for EasyJet’s fleet-modernisation programme and the airline’s future growth. The potential deal would add EasyJet to a series of UK companies acquired by overseas buyers. The bid comes after a year of weak share performance, pressure from geopolitical risks and the lingering effects of the pandemic, while founder Stelios Haji-Ioannou and his family stand to benefit significantly from any sale.

Five Iron Golf has opened its first UK venue in Broadgate, London, backed by plans to invest £20 million in expanding to at least 10 British sites. The US-founded indoor golf chain expects to open two more locations within 18 months and create around 300 jobs. UK chief executive Eric Parker said the brand aims to attract both experienced golfers and novices through an inclusive, city-centre social and entertainment concept. The expansion is being funded with support from investors including New York-based Third Seven Capital, despite wider economic uncertainty, rising costs and pressure on consumer spending.

Labour adviser Sir Charlie Mayfield has proposed phased mandatory health checks for people starting new jobs and at key points such as extended absences. The plan would initially target large employers or selected regions, with strong safeguards to ensure personal health data is collected by a trusted intermediary and not shared with employers. Mayfield also urges employers to create early “stay in work” plans and make adjustments before workers leave employment. His review estimates that returning about 330,000 of the 2.8 million people off work because of long-term sickness could add economic capacity equivalent to a city such as Cardiff, while poor workplace health currently costs around 7% of UK economic output and employers approximately £85 billion annually.

Supreme reported record annual revenue of £270.2 million, up 17%, after vaping revenue rose 15% to £148.1 million despite the UK ban on disposable vapes. Pre-tax profit fell 14% to £26.7 million because of factory investment and acquisition costs, while underlying earnings were flat. Chief executive Sandy Chadha said Supreme had successfully shifted customers from disposable vapes to pod systems and was prepared for the vaping products duty and packaging-stamp requirements due in October. The company expects the new compliance burden to disadvantage smaller competitors and potentially increase its market share, while continuing to expand its food, drink and nutrition businesses through acquisitions including SlimFast, Typhoo Tea, Clearly Drinks and FoodIQ. Supreme's shares fell 5% after the results.

Manchester Airports Group, which owns Manchester, London Stansted and East Midlands airports, reported passenger growth slowing to 1.9% year-on-year, with Manchester up 3.6%, Stansted up 0.4% and East Midlands down 1.3%. Despite weaker traffic growth amid economic and geopolitical uncertainty linked to the Iran-US conflict, pre-tax profit rose 4.5% to £227.4 million and revenue increased 12.8%. Heathrow separately expects passenger numbers to fall by 1.1% as Middle East volatility weighs on global travel demand. Stansted nevertheless reached a record level, entering the 30-million-passenger group.

Getty Images abandoned its £2.8 billion merger with Shutterstock after the UK Competition and Markets Authority required Getty to sell Shutterstock’s editorial business for the deal to proceed. Getty declined to meet the condition, leading to cancellation of the merger. The CMA said the decision was commercial and noted it had been working with both companies on the potential divestment. Concerns raised during the investigation focused on reduced choice and higher prices for UK media outlets. Shares in both companies fell sharply following the announcement.

Topps Tiles issued a profit warning after sales weakened and extreme heat temporarily halted work among traders and housebuilders. The retailer reported a quarterly sales decline, a consumer shift toward lower-priced products, and continued economic pressure. Profit expectations for the year dropped significantly, and the company’s shares fell. Cost‑cutting measures include store closures across its Topps and CTD brands, while regulatory requirements following the CTD acquisition further reduced its store footprint. The firm also recently acquired the Fired Earth brand after its collapse.

The UK Competition and Markets Authority is consulting on rules that would require Apple and Google to let app developers direct users to external payment systems and charge fairer, lower steering fees. The CMA says the changes could increase competition, reduce costs for developers and lower prices for UK consumers. Google says it has already introduced the proposed changes, subject to restrictions, while Apple warns that external payments could expose users to scams, bait-and-switch tactics and weaker parental controls. The CMA is also considering opening Apple’s NFC capabilities to UK fintechs and developers for contactless payments.

UK GDP growth was confirmed at 0.6% in the first quarter of 2026, while growth in the final quarter of 2025 was revised down to 0.1%, reducing full-year 2025 growth to 1.3% from 1.4%. Services led first-quarter expansion, with production and construction also growing. However, GDP contracted by 0.1% in April amid the Iran conflict and higher fuel and energy costs. Real GDP per head increased, but real household disposable income fell 0.8% as higher taxes and inflation eroded purchasing power, while the household saving ratio declined to 8.9%. Major forecasters have cut their growth outlook for the year because of the conflict’s economic effects.

A proposed class action led by former Which? manager Mark McLaren could seek between £2.2 billion and £4.5 billion in compensation for more than 700,000 people who bought new-build homes in Great Britain between October 2015 and June 2024. The claim alleges that eight major housebuilders shared commercially sensitive information, reducing competition and inflating prices. The Competition and Markets Authority investigated the firms but ended further action after securing a £100 million contribution to affordable housing programmes and binding commitments on information sharing, without ruling on whether competition law was breached. The proposed case must first be approved by the Competition Appeal Tribunal.

BT and Verizon will merge their international operations into a joint venture with an estimated £3 billion annual turnover, with Verizon making a £473 million equalisation payment and both companies holding equal shares. The deal supports BT’s strategy to focus on its UK business following prior divestments and ongoing cost‑cutting plans, while Verizon continues its own efficiency drive. The venture will serve more than 3,000 customers in over 180 countries, be incorporated in Jersey but based in the UK, and be led by Martijn Blanken after completion expected in 2027. Leadership at both companies remains unchanged until the transaction is finalised, and the partners have not yet disclosed expected post‑merger cost savings or the new venture’s name.

Wise plans to buy back more than $500 million of its shares, including funds for its employee share trust, despite an 8% fall in annual pre-tax profit to $660.4 million. Revenue rose 19% to $2.5 billion as active customers increased to 18.9 million, while operating expenses grew 39%. The company expects revenue growth within its 15–20% target range and profitability near the upper end of its guidance. The results come as Belgian authorities investigate transactions linked to Wise over money-laundering concerns, while the company continues its secondary London listing after moving its primary listing to New York.

Trainline has appointed Ian Brown, formerly Flutter Entertainment’s UK and Ireland chief, as its next chief executive. He will join on 7 September for a transition period and formally replace Jody Ford on 28 September. Brown brings experience from Flutter, ANS Group and Booking.com, which analysts view favorably, although Trainline’s shares fell 5% after the announcement and are down nearly a quarter over the past year. The company faces pressure from the UK Government’s contactless rail-payment rollout, while continuing to pursue growth across Europe through rail liberalisation and increased competition.

Brent crude prices fell below $73 a barrel, returning to levels seen before the Middle East war began, as the Strait of Hormuz gradually reopened after an interim US-Iran agreement. The route normally carries about a fifth of global oil and gas shipments, and its reopening, alongside partially restored Iranian oil exports and increased production, is easing fears of a prolonged energy crisis and potentially reducing fuel costs. Significant risks remain, including unresolved details in the final diplomatic deal, disagreements over its meaning, shipping backlogs, infrastructure repairs and continuing Israel-Hezbollah fighting.

easyJet has unanimously rejected Castlelake’s fourth takeover proposal, valued at £6.50 per share or approximately £4.93 billion, saying it substantially undervalues the airline and raises questions about deliverability and ownership. However, it has extended Castlelake’s deadline to 5 July and may provide limited commercial information to help the investment firm submit a more attractive offer. The proposal would leave Castlelake and co-investors with 49% of easyJet, while EU-national investors would hold 51%. The bid comes as easyJet’s shares have fallen about 30% over the past year amid concerns about the impact of the Iran war on airlines.

Segro has rejected a £12.6 billion takeover proposal from US logistics real estate company Prologis, saying the £9.25-per-share approach significantly undervalues the business and was timed to exploit weakness in UK and European property valuations. Prologis is seeking shareholder support for a binding offer, under which Segro investors would own about 10.5% of the combined group. Segro shares rose 16% on takeover hopes, while the bid deadline is 5pm on 22 July under UK takeover rules. The approach comes amid growing foreign interest in UK-listed companies, including bids involving easyJet and Intertek.

International Distribution Services chief executive Martin Seidenberg received £6.9 million for the year to March 2025, more than triple his previous compensation, largely because long-term incentive awards were accelerated after Daniel Kretinsky’s EP Group completed its £3.6 billion takeover. The increase came as IDS underlying earnings fell 20% to £222 million and pre-tax profits dropped by more than two-thirds. Royal Mail’s operating profits more than halved amid higher labour and national insurance costs, although parcel volumes and revenues increased. The company is rolling out changes to the universal service, including ending Saturday second-class deliveries, while facing union negotiations and Ofcom scrutiny over missed delivery targets.

EY reports that foreign direct investment projects in the UK fell 14% in 2025 to 730, although the country remained Europe’s second-largest recipient after France. Overseas investors ranked political instability as their second-biggest concern, behind energy costs, while also citing labour costs and tax competitiveness. Greater London was the only English region to record growth, widening the regional investment gap. Despite the decline, more than half of surveyed international investors expect the UK to become more attractive over the next three years, provided it converts investor interest into sustained, innovation-supporting growth.

Royal Mail’s operating profit more than halved to £96 million in the year to 31 March as employee costs rose 5.5%, including a 4.2% frontline pay increase and a £133 million national insurance bill. Although revenue increased and parcel volumes grew 7%, addressed letter volumes fell 10%, contributing to weaker performance across owner International Distribution Services, whose underlying earnings dropped by a fifth and pre-tax profit fell by more than two-thirds. IDS attributed additional weakness to regulatory changes affecting GLS in Italy, difficult conditions in Canada and takeover-related costs following Daniel Kretinsky’s acquisition. Royal Mail is extending reforms that will reduce second-class delivery frequency and eliminate Saturday service, while Ofcom investigates continuing failures to meet delivery targets. The group is also expanding parcel lockers as it responds to the shift toward e-commerce.

Brent crude fell nearly 2% to $76.40 a barrel, its lowest level since early March, after the US issued a 60-day licence waiving sanctions on Iranian oil amid progress toward a temporary peace agreement. The deal requires Iran to reopen the Strait of Hormuz, although the main shipping route remains mined and closed despite dozens of ships reportedly passing through. Vice President JD Vance said talks with Iranian officials had established a foundation for a lasting settlement, while clashes involving Israel and Iran-backed Hezbollah had complicated negotiations. Broader markets weakened as SpaceX shares dropped 16%, pushing London’s FTSE 100 down 0.9%.

Royal Mail’s UK postal division increased underlying earnings from £2 million to £5 million and revenue by 2.6% to £8.4 billion in the year to 31 March, despite higher staff costs. However, parent company International Distribution Services saw group earnings fall 20% to £222 million, largely because of weakness in its GLS parcel business in Italy and Canada. Royal Mail is rolling out a revised universal service under which second-class mail will no longer be delivered on Saturdays, while declining letter volumes and missed delivery targets have prompted regulatory scrutiny from Ofcom. Parcel volumes and out-of-home deliveries continued to grow as IDS expands its parcel-locker network.

South East Water has appointed John Halsall as chief executive designate, succeeding David Hinton after major outages in Kent and Sussex triggered parliamentary criticism and a loss of confidence in the company’s leadership. Halsall will take over following regulatory approval and a handover period, with immediate service improvements and a £2.1 billion investment programme identified as priorities. Consumer group Dry Wells Action welcomed the appointment but said it would seek urgent assurances on infrastructure investment and reliability.

Sterling recovered from early losses after Prime Minister Keir Starmer confirmed plans to step down, rising against both the US dollar and euro. The pound has fallen about 3% since February amid growing pressure on Starmer’s leadership. Andy Burnham’s return to Westminster and potential leadership bid has raised expectations of a largely uncontested succession, while markets remain watchful of his policy direction. The Labour leadership process is expected to begin on July 9, with a new leader targeted before Parliament returns on September 1. UK government bond yields and the FTSE 100 were broadly stable, though analysts anticipate further volatility.

EasyJet has rejected Castlelake’s third takeover proposal, worth £4.74 billion or 625p per share, calling it an opportunistic attempt to buy the airline cheaply while its share price is depressed. Castlelake says the offer represents compelling value and has appealed directly to shareholders after three rejected proposals. EasyJet also criticized the proposed ownership structure as opaque and emphasized its financial strength and target of exceeding £1 billion in medium-term pre-tax profits. The bid faces a Takeover Panel deadline of 5pm on June 26.

Banco Santander plans to generate more than €1 billion in additional revenue and cost savings from artificial intelligence by the end of 2028, including over €500 million in cost reductions through automation, productivity gains and simpler processes. The bank expects more than €200 million in AI-related business value in 2026 and is expanding AI access to all 185,000 employees, including about 15,000 in the UK. Santander has not disclosed potential job impacts. Its UK voice channels will use AI to resolve around 240,000 card-related calls annually through self-service, potentially saving customers 26,000 hours and service teams 45,000 hours.

Sterling fell against the US dollar and euro as speculation intensified that Prime Minister Keir Starmer may announce plans to resign. The pound has lost about 3% since February amid growing pressure from Labour challengers, including Andy Burnham's return to Westminster after winning the Makerfield by-election. UK government bond yields remained broadly stable, while the FTSE 100 edged lower. Wealth Club strategist Susannah Streeter said political instability continues to impose a risk premium on UK assets, with gilt yields still elevated compared with international peers.

US investment firm Castlelake has made a third takeover approach for easyJet, valuing the budget airline at £4.74 billion, or 625p per share. EasyJet rejected the proposal, prompting Castlelake to take its offer directly to shareholders before the Takeover Panel's 26 June Put-up or Shut-up deadline. Castlelake argues the bid offers compelling value, while easyJet has described its interest as opportunistic and highlighted regulatory, financial and execution risks, as well as its own target of exceeding £1 billion in medium-term pre-tax profits.

Ryanair has extended chief executive Michael O’Leary’s contract for six years, keeping him in the role until April 2032. The package includes a one-off option to purchase 10 million shares at €26.70 each, conditional on his remaining with the group and meeting ambitious performance targets. The options will depend on targets including annual after-tax profits exceeding €4 billion or Ryanair’s share price reaching €42 for 28 consecutive days. His package also includes a modest salary and capped annual bonus, subject to an advisory shareholder vote later in the year.

UK government borrowing reached £23.3 billion in May, £5.4 billion higher than a year earlier and above both economist and Office for Budget Responsibility forecasts. Debt-interest payments rose to a record £11.7 billion for the month as higher RPI inflation increased the cost of index-linked government bonds. Borrowing for the financial year to May was £46.3 billion, £8.9 billion above the comparable period a year earlier. Weaker growth, elevated inflation, higher market interest rates and the economic effects of the Iran conflict are expected to put further pressure on tax revenues and debt servicing. The figures also intensify concerns over the government's ability to meet its fiscal rule, while Andy Burnham's potential challenge to Keir Starmer adds to political uncertainty.

Marks Electrical has adopted a more cautious outlook for annual sales and gross margin as UK consumers reduce spending amid inflation, high interest rates and unemployment concerns. Shares fell 7% following the warning. The retailer was also ordered by the Competition and Markets Authority to refund nearly 40,000 customers and pay a £720,000 fine after enrolling them in recycling services without explicit consent. Annual revenue fell 7.9%, although sales rose 5% in the second half as the company focused on its own website and telesales operations, improved margins and strengthened its cash position.

Intertek has accepted a £9.5 billion takeover offer from Swedish investment firm EQT, valuing the company at £61.08 per share and representing a 62% premium to its pre-bid price. The deal adds to a series of UK-listed companies acquired by overseas buyers, intensifying concerns about London’s declining stock market. EQT plans to keep Intertek’s headquarters in London and conduct a year-long review that could lead to a more focused portfolio and some workforce reductions, although it expects employment to grow over time. Intertek chief executive Andre Lacroix endorsed the deal, while EQT said it would invest in innovation, mergers and acquisitions, and international expansion.

Brent crude fell to about $77.90 a barrel after Pakistan’s Prime Minister Shehbaz Sharif said the United States and Iran had signed an agreement to end their conflict, reopen the Strait of Hormuz and lift the US naval blockade. The deal reportedly grants free passage through the strait for 60 days, restricts Iran’s nuclear activity and allows the United States to waive some sanctions so Iran can resume oil sales. Lower oil prices pressured London-listed energy companies and the FTSE 100, although they could ease inflation and fuel-cost concerns. Broader markets remained weak after Federal Reserve Chair Kevin Warsh signaled a more hawkish interest-rate outlook.