Julia Kollewe

Molendotech, a University of Plymouth spinout, plans to launch a UK and US app in October that will map live water quality using data from its rapid bacterial tests, rainfall, tides and predictive artificial intelligence. Its Bactiquick device detects bacteria-related endotoxin in under 15 minutes, compared with 24–48 hours for conventional laboratory culture testing, and has sometimes produced risk assessments that differ from Environment Agency ratings. The company has reported sharply rising sales, works with water companies and councils, and has raised £860,000 to support international expansion. The initiative comes amid increased concern over sewage pollution, swimmer illness and the potential spread of warmer-water bacteria such as Vibrio.

Castlelake abandoned its proposed takeover of easyJet, leaving Apollo Global’s higher £5.7bn offer as the likely path forward; easyJet founder Stelios Haji-Ioannou and his family backed Apollo’s bid. The live coverage also reported UK approval of Paramount Skydance’s $110bn acquisition of Warner Bros Discovery, Ineos’s investment in European chemicals shares despite high debt, and mixed corporate results across Diageo, Nintendo, Wizz Air, WPP and Persimmon. UK construction showed signs of stabilisation, while the eurozone remained in contraction. German factory orders rose more than expected, but Rheinmetall cut its outlook after losing a naval contract, and Asian markets fell amid renewed concerns over technology valuations and AI spending.

Donald Trump said the Strait of Hormuz could reopen as soon as the next day and described renewed negotiations with Iran as its final opportunity to reach a deal covering passage through the waterway and denuclearization. Iran denied that direct talks were taking place, saying it was negotiating with Oman instead, prompting Trump to threaten that the US blockade would continue until a deal or total surrender. Pakistan and Qatar were reportedly working through intermediaries to restart stalled diplomacy, but no meeting had been confirmed. The conflict has restricted a major global oil route, driven up fuel prices, boosted profits at ExxonMobil and Chevron, and increased political pressure on Trump ahead of the US midterm elections.

AstraZeneca lost more than £17bn in market value after reports that it is discussing a roughly $400bn takeover of Bristol Myers Squibb, dropping behind Shell as the UK’s second-largest listed company. The potential merger would create the world’s fourth-largest drugmaker and expand AstraZeneca’s US presence, but analysts and shareholders question its strategic rationale, citing overlapping oncology portfolios, regulatory hurdles, BMS’s weaker growth outlook and the risk that mega-mergers could undermine innovation. No deal has been agreed, and both companies have declined or not yet provided substantive comment.

Brent crude fell by as much as 7.3% after Donald Trump called off planned strikes on Iran and claimed that talks on reopening the Strait of Hormuz and addressing Iran’s nuclear programme would resume, although Tehran denied that negotiations were starting. European shares and government bonds rallied as lower oil prices eased inflation concerns, while energy stocks declined and travel shares gained. UK petrol and diesel prices continued to rise despite the market reversal. Shipping through the Strait of Hormuz remains disrupted after further tanker attacks, leaving markets vulnerable to renewed escalation. Opec+ also agreed to increase production from September, but Gulf, Russian and Kazakh disruptions have limited the effect of previous output increases.

China’s economy grew 4.3%, one of its weakest recorded rates, prompting a sell-off in mining shares and raising concerns about global demand. Thames Water said it had £515m in cash but debts of £18.5bn, while bonus payments increased to £4m despite uncertainty over its future. Other developments included the Bank of Canada holding rates, softer US producer-price inflation, UK gilt yields remaining near 5%, and the UK government considering a state-owned housebuilder. Barratt Redrow announced £400m for shareholders after strong home-completion results, while ASML raised forecasts on AI-driven chip demand. The live blog also covered scrutiny of BYD’s Hungarian plant and the appointment of former Hungarian foreign minister Péter Szijjártó, as well as Bank of England governor Andrew Bailey’s comments on his meeting with Nigel Farage amid controversy over Farage’s £5m crypto-linked donation.

The US carried out another seven-hour wave of strikes against Iranian military, missile, drone and coastal-defense sites near the Strait of Hormuz, while Iran claimed it had targeted US facilities in Bahrain, Kuwait and Jordan and said the strait would remain closed. Kuwait reported intercepting Iranian drones, and Bahrain activated sirens. Donald Trump threatened to strike Iranian power plants and bridges the following week unless Tehran negotiated, while Senate Democrats accused him of pursuing an unauthorized war without a clear plan or exit strategy. Washington also imposed sanctions on a shipping and oil network linked to Mohammad Hossein Shamkhani. The renewed blockade and escalating attacks have stalled an interim agreement, endangered commercial shipping and raised concerns over civilian casualties and global energy supplies.

IBM shares fell more than 25% after the company reported preliminary second-quarter revenue of $17.2bn, up only 1% year over year and below the $17.86bn analyst forecast. Adjusted earnings per share were also expected to miss estimates. IBM attributed the shortfall to corporate customers redirecting capital spending from mainframe computers and software toward servers, storage and memory chips, as well as increased cybersecurity spending. The shift reflects the rapid expansion of AI infrastructure, which has driven hardware demand, higher prices and supply concerns. The warning triggered declines across the software sector, including Microsoft, ServiceNow, Salesforce and Intuit, while analysts questioned how long the spending shift would persist and whether AI could pose a deeper threat to software companies.

Oil and gas prices initially surged after a third night of US strikes on Iran, with Brent crude rising as much as 4.6% and European gas prices reaching multi-month highs. Fears that higher energy costs would fuel inflation led markets to price in quarter-point interest-rate increases by both the Bank of England and European Central Bank, while UK government borrowing costs also rose. European equities weakened initially, and BP and Shell shares gained. Markets later stabilised after Donald Trump abandoned a proposed 20% fee on cargo passing through the Strait of Hormuz.

Oil prices rose above $85 a barrel after renewed US strikes on Iran and attacks on tankers in the Strait of Hormuz increased geopolitical tensions. China reported a sharp jump in exports driven by strong global demand for AI‑related technology, setting the country on track for another large annual trade surplus despite weak domestic demand and ongoing property sector pressures. Rising semiconductor prices boosted both imports and exports, while analysts warned of mounting trade frictions with Europe. Market activity remained subdued as investors awaited key US inflation data and upcoming central bank speeches.

Oil prices rose more than 3% as the US and Iran exchanged attacks in the Gulf, with Brent remaining below $80 a barrel but renewed concerns about exports through the Strait of Hormuz increasing market risk. UK petrol and diesel prices also began rising after recent declines, and the RAC warned that further attacks could push forecourt prices higher. Stock markets were mixed, gold fell and the pound weakened. Opec cut its 2026 global oil-demand growth forecast for a third consecutive month, while PageGroup described the UK jobs market as tough but stable. The live coverage also reported China’s worsening graduate employment prospects, the consumer impact of GLP-1 weight-loss drugs and the forced shutdown of a major community solar farm because of local grid-overload concerns.

The growing use of GLP-1 weight-loss drugs in the UK and US is changing consumer spending, particularly clothing purchases. Users who lose several sizes are buying more apparel, activewear, occasionwear, skincare and hair products, while seeking flexible “transition wardrobes” and more fitted styles. PwC forecasts that UK GLP-1 use could reach 13% of adults by the end of next year, and Berenberg estimates the drugs could add 1% annually to the UK clothing market over the next three years. Mid-market retailers such as Marks & Spencer, Next and Zara may benefit, while plus-size retailers are reporting sharp sales declines and concerns about reduced inclusive sizing. The arrival of oral Wegovy and competing treatments is expected to accelerate these consumer and retail effects, alongside continuing concerns about side effects and body-image pressures.

UK markets weakened as AstraZeneca shares plunged after its Wainua cardiovascular trial failed, while oil prices remained volatile amid renewed US-Iran tensions around the Strait of Hormuz. The UK life-sciences sector reported more than £3bn in investment over the past year and faster clinical-trial approvals, but the housing market remained subdued with fragile confidence. Corporate developments included Hugo Boss rejecting Frasers Group’s takeover offer, Segro resisting Prologis, Spire Healthcare extending its takeover deadline, and Capita warning that civil-service pension-contract failures could reduce 2026 operating profit by £25m–£40m. Extreme heat also prompted warnings over UK electricity supplies and led Eurostar to upgrade new trains for temperatures up to 55C.

Donald Trump declared the US-Iran truce over and warned that the US would launch further strikes after Iran attacked commercial vessels in the Strait of Hormuz. US strikes hit sites including Bandar Abbas and Bushehr, while Iran launched missiles and drones toward regional targets, prompting responses from Kuwait and Bahrain. Nearly 6,000 seafarers remain stranded, several tankers have turned back, and oil prices rose sharply. Diplomatic efforts are under strain: Iran says the memorandum of understanding is ineffective, Lebanon conditions participation in Rome talks on an Israeli withdrawal from two southern zones, and Israel-Hezbollah violence continues despite a ceasefire. Rights groups also say a photograph of a bound Palestinian detainee supports allegations of systematic torture, while Israel’s military has opened an inquiry.

Oil prices rose more than 5% after Donald Trump declared the interim understanding with Iran over, following renewed US and Iranian strikes around the Strait of Hormuz. Brent crude reached $79.26 a barrel, while gas prices increased, global stock markets fell and government bond yields climbed as investors anticipated higher inflation and interest rates. The conflict threatens LNG and oil shipments through the waterway, which normally carries a significant share of global LNG supplies. The live coverage also reports legal action against Tata Steel's Dutch branch, Tesco's possible sale of its Central European operations, a recovery in Jet2 bookings, financial difficulties at Vistry, regulatory findings involving Severn Trent and a record £28 million Ofcom fine for Virgin Media.

Vistry Group expects a £30m pretax loss for the first half of the year after weakening demand and lower consumer confidence led it to increase average discounts on private homes to 7.1%, up from 1.4%. The housebuilder has reduced its unsold private-home inventory from £600m to below £300m, but does not expect market conditions to improve significantly through early 2027. Shares fell 8% after the announcement, which also included the planned departure of finance director Tim Lawlor. Vistry aims to cut annual costs by £25m through voluntary redundancies and selective hiring, while shifting further toward social housing projects whose progress depends on the timing of government grants. Analysts questioned whether management had fully acknowledged the risks to future trading and the social-housing programme.

UK house prices rose 0.2% month on month in June to an average of £299,330, the first increase in four months, although annual growth remained modest and regional performance varied sharply. Mortgage affordability and wider economic and geopolitical uncertainty continue to restrain activity. Oil prices rose after reports that a vessel was attacked near the Strait of Hormuz, while Shell forecast stronger gas trading but lower production because of Middle East disruptions. The OBR warned that ageing-related spending and higher defence costs could put UK debt on an unsustainable path without substantial future tax rises or spending cuts. The Bank of England plans to loosen some bank capital requirements despite concerns over AI-driven cyber and financial-stability risks. Other developments included pressure on ITV shares after its £1.6bn sale to Sky, a potential creditor bid for Thames Water even under temporary nationalisation, rising youth unemployment across OECD economies, and stronger sales at Young’s pubs during the World Cup.

UK house prices rose 0.2% in June to an average of £299,330, marking the first monthly increase since February, according to Lloyds’ house price index. Annual growth edged up to 0.6%, although prices remained below January and February levels. First-time buyer prices increased 0.8% year on year, while Northern Ireland recorded the strongest regional growth at 7.4%. Prices declined in southern England, including a 2% fall in the south-east and a 1.1% fall in London. Lloyds said easing mortgage rates could support demand, but affordability constraints, inflation, interest-rate expectations and household confidence will continue to shape the market.

A group of about 100 institutional creditors holding roughly £14bn of Thames Water’s senior debt remains in talks with Ofwat over a £10bn rescue plan and says it would seek to buy the utility even if the incoming government places it into temporary nationalisation. The proposal includes £3.35bn in new equity, £3.25bn in fresh debt and an £850m penalty and redress package, but Environment Secretary Emma Reynolds has rejected it as potentially harmful to consumers and the environment. Thames Water, which serves 16 million people and carries £17.6bn of debt, could run out of money in October. Other bidders support special administration, under which an insolvency expert would run the company on behalf of taxpayers while a buyer is sought, with the government required to maximize creditor recoveries.

Sky, owned by Comcast, agreed to buy ITV’s UK broadcasting and streaming business for £1.6bn, including ITV’s free-to-air channels and ITVX, creating a major UK commercial broadcaster intended to compete with Netflix, YouTube and Amazon. Sky CEO Dana Strong said the transaction would lead to some job losses because of overlapping corporate and commercial roles. Other developments included easyJet shares rising after it indicated support for a potential £5.5bn takeover, Microsoft announcing 4,800 job cuts including 3,200 in Xbox, and Ocado saying CEO Tim Steiner will step down in 2028. The UK’s Wegovy weight-loss pill also launched privately, while regulators were urged to strengthen protections against AI-related risks in financial services. Additional deals covered Lockheed Martin’s $3.45bn purchase of Ultra Maritime, Novartis’s acquisition of Myricx Bio for up to $1.5bn, and Zuber Issa’s purchase of 85 former Prax petrol stations.

Novo Nordisk’s once-daily Wegovy pill has begun being sold privately through UK high-street and online pharmacies following regulatory approval, although it is not available on NHS prescriptions. The semaglutide pill offers an alternative to injections and produced 14% to 17% average weight loss over 64 weeks in trials, but must be taken after an eight-hour fast and can cause gastrointestinal side effects. Pharmacists report strong demand, while experts warn consumers to avoid unregulated websites selling counterfeit medicines or operating scams. Prices range from £69 to £189 a month through some private treatment plans.

Ocado co-founder and chief executive Tim Steiner will remain in the role until the start of the 2028 financial year, then serve for another year in a founder role focused on strategic guidance. The succession plan follows reports of tensions involving chair Adam Warby and shareholder and board member Jörn Rausing amid a more than 50% fall in Ocado’s share price. The company is seeking new international partners after Kroger and Sobeys announced robotic warehouse closures, and is also cutting 1,000 jobs to reduce costs. Steiner, who owns 2.35% of Ocado and has received nearly £100m since its 2010 flotation, has faced criticism over his pay and the company’s performance.

Major UK housebuilders including Barratt, Redrow, Taylor Wimpey and others face a multibillion‑pound class action alleging collusion to inflate new‑build home prices between 2015 and 2026. Led by Mark McLaren, the claim seeks up to £4.5bn for 700,000 buyers and follows a Competition and Markets Authority investigation that found evidence of sensitive pricing information being shared. The companies previously agreed to pay £100m to affordable housing schemes without admitting wrongdoing. Market analysts argue the case may be difficult to prove. Shares across the sector fell following news of the lawsuit.

Warnings highlight rising social media scams involving fake holiday accommodation, with research indicating increased exposure to fraudulent listings. Experts advise reverse image searches, checking map locations and using trusted booking channels to avoid stolen images and nonexistent properties. Concerns linked to the Iran conflict have prompted last‑minute bookings, increasing vulnerability to fraud. Consumer groups criticise platforms for inadequate action against scam activity. Travellers are urged to avoid bank transfers, verify memberships such as Abta and ensure Atol protection, while victims are advised to contact banks and report suspected fraud immediately.