Lauren Almeida

The UK Competition and Markets Authority has opened formal investigations into Trainline, Virgin Atlantic and Red Driving School over concerns that mandatory charges were not included in the initial prices shown to customers. The cases form part of a broader crackdown on illegal drip pricing under the CMA’s new consumer protection powers, which allow it to impose fines of up to 10% of global turnover and order compensation. Trainline said it was improving fee disclosures, while Virgin Atlantic and Red Driving School said they would cooperate with the regulator. Trainline’s shares fell as much as 14% after the announcement. The CMA has previously penalized StubHub and the AA for similar practices.

JP Morgan chief executive Jamie Dimon has urged UK chancellor John Healey not to increase taxes on banks, warning that higher levies could damage jobs and investment in London. The warning comes amid speculation that Andy Burnham could support a windfall tax to fund cost-of-living measures. Unions and campaigners argue that banks’ record profits justify a higher surcharge, estimating it could raise between £19bn and £60bn depending on the rate. The debate follows £29.2bn in combined first-half profits reported by HSBC, NatWest, Barclays and Lloyds, while JP Morgan’s proposed £3bn Canary Wharf headquarters could be affected by the future business environment.

More than 200 musicians, including Thom Yorke, Romy, Brian Eno, Massive Attack and Robert Smith, have urged Prime Minister Andy Burnham to reject further North Sea drilling, particularly the Rosebank oilfield. They argue Rosebank would not lower energy bills or improve energy security because much of its oil would be exported, and warn that its emissions would intensify the climate crisis. Developer Adura says Rosebank and Jackdaw could generate £10.8bn in investment and support thousands of jobs. The projects were previously approved but those decisions were quashed after a Greenpeace legal challenge, leaving Labour ministers to decide following new climate assessments and public consultations.

Next reported a 9% rise in full-price sales in the 13 weeks to 1 August, exceeding its initial 4% forecast, helped by hot weather, online sales and demand from alternative brands. The retailer raised its annual pre-tax profit outlook for the third time this year to £1.2bn, sending its shares to a record high. Analysts credited its product range, convenience, pricing and management discipline, although the wider UK retail market remains pressured by discounting, inflation and weak consumer confidence. John Lewis reported the opposite trend, with lower sales and higher costs squeezing profits.

EY warns that the UK could enter recession in 2027 if the Strait of Hormuz remains closed into early or mid-2027, with GDP growth slowing to 0.5% in 2026 and contracting by 0.2% the following year. A reopening by the end of the third quarter would support EY’s stronger forecast of 0.9% growth in 2026 and 1.2% in 2027. Oil prices fell after Donald Trump cancelled planned strikes on Iran and said negotiations could resume, but UK petrol and diesel prices continued to rise. UK manufacturing expanded for a ninth consecutive month, albeit more slowly, while graduate vacancies fell to their lowest seasonal level since 2020. AstraZeneca shares dropped amid reports of potential $400bn merger talks with Bristol Myers Squibb; Shell agreed to sell European onshore renewable assets to TotalEnergies; EasyJet extended a takeover deadline; and Clarkson’s reported record profits driven partly by shipping disruption in the Middle East.

Iraq says it had no prior knowledge of US-Saudi strikes that killed at least 20 Iran-backed Popular Mobilisation Forces members, contradicting Donald Trump’s claim that the attacks were coordinated with Baghdad. Iraq is demanding evidence that Iran-aligned groups launched drones at Saudi infrastructure and says it will oppose both attacks originating from its territory and violations of its borders. The wider conflict is disrupting shipping through the Bab el-Mandeb and Strait of Hormuz, while Saudi Arabia considers a major offensive against Yemen’s Houthis. Iran claims to have targeted a US base in Kuwait after American strikes, including an alleged attack on a residential building on Qeshm Island. Separately, Trump announced a Gaza agreement involving Hamas disarmament, Israeli withdrawal and an interim Palestinian administration, but Hamas says disarmament depends on Israel fulfilling its obligations, while Israeli officials insist on complete demilitarisation before withdrawal. Pakistan says US-Iran negotiations remain ongoing despite the strikes.

The Bank of England kept its policy rate at 3.75%, although three of nine Monetary Policy Committee members voted for an increase because the Iran conflict and higher oil prices could push inflation higher. Governor Andrew Bailey said there was little evidence that energy costs were creating broader price pressures and rejected the idea that the Bank was preparing markets for a September hike, causing the implied probability of no change then to rise to 73%. The live coverage also reported weaker-than-expected US second-quarter growth, higher US borrowing costs, faster eurozone growth, a record FTSE 100, strong results from Shell, Rolls-Royce and BAE Systems, Lloyds’ planned £2bn cost reduction, and a £6.4m fine for Airbus over export-control breaches.

The Federal Reserve kept its benchmark interest rate at 3.5%–3.75% for a fifth consecutive meeting, despite inflation remaining above its 2% target. The decision drove the yield on 30-year US Treasury bonds close to 5.24%, its highest level since 2007, and contributed to sharp falls in US stocks. Fed chair Kevin Warsh insisted the central bank would not soften its inflation target, while economists questioned why it had not raised rates. Renewed fighting between the United States and Iran has pushed oil prices higher and increased inflation risks, reducing market expectations of a September rate increase to about 57%.

Shell reported quarterly net profit of $9.8bn for the three months to June, more than double its result a year earlier and its second-highest quarterly earnings on record. Higher oil and gas prices, strong trading, and increased liquefied natural gas and chemicals earnings offset a 30% fall in gas production after damage to a Qatar facility. Chief executive Wael Sawan is seeking continued UK support for North Sea development and renewables, while environmental groups Uplift and Greenpeace condemned Shell’s fossil-fuel expansion and called for a windfall tax to help households and fund climate resilience. Shell shares rose 1.5%, while BP announced further job cuts amid warnings of a possible future oversupply.

Oil prices rose about 6% after Donald Trump threatened Iran with military retaliation, adding geopolitical pressure to markets already unsettled by a continuing sell-off in AI and semiconductor stocks. South Korea’s Kospi suffered another sharp decline after disappointing SK Hynix results, while the UK’s tech-light FTSE 100 proved more resilient, supported by financial, energy and consumer companies. Standard Chartered announced a $1bn share buyback after stronger-than-expected profits, Grant Thornton agreed to acquire CBIZ for $5bn, and Chapel Down reported 19% first-half sales growth. Other developments included proposed Ofgem fees for speculative data-centre grid connections, reported BMW job cuts in Germany, and UK data showing rising workless-household rates in many local authorities. Investors were also awaiting the Federal Reserve’s interest-rate decision amid concerns that higher energy prices could revive inflation.

South Korea’s Kospi index fell 11.5% to its lowest level since mid-April as SK Hynix and Samsung Electronics dropped more than 10% amid intensifying concerns about AI investment, heavy borrowing by technology companies and cheaper Chinese competition. US chip stocks also declined, while Nvidia was hit by reports of a potential $250bn financing arrangement with OpenAI and rising debt-insurance costs. Analysts said progress in China’s chip-equipment capabilities and CXMT’s strong market debut heightened fears for established US and global semiconductor companies, although one analyst called the sell-off an overreaction. Apple briefly surpassed a $5tn valuation as investors sought refuge, while UK and European markets rose.

GSK plans to invest £400m in UK life sciences, moving more than 1,000 researchers from Stevenage to a new Cambridge R&D centre by 2029 while upgrading its Ware site. The investment forms part of a wider £1.9bn cost-cutting programme and effort to accelerate drug development, but will involve job cuts and the closure of the Stevenage hub. The live coverage also reports an AI-related sell-off in chip stocks, strong first-half profits at Barclays, expected price rises from Unilever, Games Workshop’s tariff and supply-chain concerns, Mercedes-Benz’s weaker Chinese performance, EY’s fine over the Made.com audit, and Ofcom’s proposed blocking of an Openreach broadband discount scheme.

Oil prices fell about 6% to below $91 a barrel as the US and Iran paused hostilities, easing fears of further disruption to supplies through the Strait of Hormuz, although Red Sea attacks and low European gas inventories continued to threaten winter energy prices. Global equity markets rallied, while energy shares declined. AstraZeneca reported stronger-than-expected second-quarter profits, driven by cancer-treatment sales, and CEO Pascal Soriot urged western drugmakers to innovate at Chinese speed. DCC Energy agreed to a £5.75bn private-equity takeover, adding to concern about companies leaving London’s stock market. Vodafone reported robust quarterly revenue growth, while Shein posted a $99m first-quarter loss ahead of a planned Hong Kong listing. China opposed new US tariffs, and the UK Financial Conduct Authority launched a campaign encouraging car-finance borrowers to claim compensation directly.

US President Donald Trump’s new tariffs on more than 80 countries have intensified uncertainty over global trade and could erode the UK’s previous advantage over the European Union, although British whisky exports will benefit from the removal of US tariffs. European shares recovered as Brent crude fell below $100 a barrel, while Asian markets declined sharply. UK retail sales and business activity strengthened in June and July, supported by warm weather and the World Cup, but inflation, geopolitical risks and fragile consumer confidence remain concerns. Volkswagen reported sharply lower profits and warned of up to 100,000 job cuts as competition in China worsened. Reckitt Benckiser expects a £175m loss from selling its Russian operations, and Wise’s shares fell after US regulators rejected its banking-licence application.

Iranian Foreign Minister Abbas Araghchi warned that Tehran would respond decisively to any US attack on Iranian infrastructure after Donald Trump threatened to destroy a bridge or power plant for every Iranian attack on shipping in the Strait of Hormuz. Iranian officials said further US action could lead to the expansion of the war, disruption of Gulf oil flows and attacks on regional energy infrastructure. The United States meanwhile conducted another night of strikes on Iranian military sites, while Houthi forces claimed attacks on two Saudi oil tankers, raising concerns about broader disruption to global energy supplies. Oil prices rose above $95 per barrel. Washington also signed a nuclear cooperation agreement with Saudi Arabia that may permit domestic uranium enrichment, prompting scrutiny over nonproliferation safeguards and perceived inconsistency with the war’s stated aims against Iran’s nuclear capabilities. The conflict has also produced civilian casualties, attacks affecting Jordan and shipping, pressure on European governments, and renewed diplomatic efforts involving Israel and Lebanon.

UK inflation fell faster than expected to 2.6% in June, helped by lower fuel prices, while the government promoted measures intended to reduce household costs. Oil prices rose above $95 a barrel as escalating US-Iran tensions and Houthi threats raised fears of disruption around the Strait of Hormuz and Bab el-Mandeb, prompting concerns about renewed inflation and higher interest rates. The business coverage also reported criminal proceedings against former Southern Water employees, uncertainty over easyJet’s potential takeover because of EU ownership rules, Prologis’s £14bn final offer for Segro, sharply higher Equinor profits, and London house prices falling for a ninth consecutive month. In technology and publishing, AMD announced up to a $5bn investment in Anthropic alongside a multibillion-dollar chip-supply deal, OpenAI disclosed an autonomous agent hacking incident, and Bloomsbury said it would receive an estimated share of Anthropic’s $1.5bn copyright settlement.

Oil prices rose above $90 a barrel as US strikes on Iran, Iranian attacks on US sites and Houthi threats against Saudi ports increased concerns about disruptions to Middle Eastern energy supplies. The International Energy Agency warned that risks to the Strait of Hormuz and Bab el-Mandeb were tightening refined-product and gas markets, despite alternative exports and emergency stock releases cushioning crude supplies. In the UK, government borrowing was lower than expected in June, while job vacancies fell and unemployment remained at 4.9%, highlighting a fragile labour market. Prime Minister Andy Burnham’s VAT cut on household electricity bills received cautious support but was criticised as too modest and less useful for households dependent on gas. Defence shares rose after John Healey became chancellor, while Thames Water creditors proposed giving the government a golden share to avert nationalisation. The London Stock Exchange also announced plans for near-continuous weekday trading, and Novo Nordisk sued Eli Lilly over allegedly misleading weight-loss drug advertising.

Defence shares rose after Andy Burnham appointed former defence secretary John Healey as chancellor, with Babcock International up 7%, BAE Systems 3%, Rolls-Royce nearly 2% and QinetiQ nearly 4%. Investors are betting that Healey may support higher military spending or issue defence-focused bonds, although analyst Chris Beauchamp warned that competing spending commitments could limit any immediate increase. UK government bonds were largely stable, while sterling edged higher and the 10-year gilt yield remained above 5%. The government also reported lower-than-expected June borrowing and announced an average £45 annual cut in household electricity bills.

Mitie has agreed to a £3.1bn takeover offer from rival OCS Group, ending its nearly four decades as a London‑listed company. Shareholders are being urged to accept a 221.6p‑per‑share cash bid, representing a substantial premium. The merger would create a large UK‑based facilities management group backed by private equity owner Clayton, Dubilier & Rice. The deal follows a wave of recent takeovers on the London market and comes amid shifting government sentiment on outsourcing. The transaction is expected to close in early 2027, while Mitie continues to address internal investigations into allegations of discrimination among staff in immigration removal centres.

The United States issued a worldwide caution to citizens abroad, warning that Iran and groups aligned with it could target US diplomatic facilities and interests amid escalating regional tensions. Iran claimed attacks on US military installations in Bahrain and Kuwait, while the US said its latest strikes hit Iranian command centers, air defenses, and missile and drone sites. The Strait of Hormuz remained highly volatile, with Iran reporting that two tankers had been stopped after fires and a tanker crew abandoning a vessel following a reported projectile strike, while the US maintained that commercial traffic continued. Yemen’s Houthis announced a possible maritime blockade of Saudi Arabia, raising the prospect of simultaneous disruption in the Hormuz and Red Sea routes and further pressure on oil supplies, shipping, and global energy prices. Nearly 100 US service members were reported injured during the escalation, most with minor concussions, while diplomatic and economic concerns spread beyond the Middle East.

Andy Burnham became UK prime minister and pledged a 10-year economic plan, immediate cost-of-living support, greater devolution, council-house construction and reforms intended to boost employment, while assuring investors that his government would meet its fiscal rules. Ten-year gilt yields rose about three basis points to 4.98%, highlighting market concern over Britain’s debt, inflation and borrowing outlook. Global markets were also affected by escalating US-Iran conflict, threats by the Houthis against Saudi Arabia and fears that disruption could constrain European gas and oil supplies. US technology shares rebounded, while European equities weakened. The EU fined AliExpress a record €550m for failing to prevent illegal and counterfeit goods sales. Ryanair defended aircraft safety after a passenger was nearly pulled through a damaged window, and Segro rejected a sweetened £13.5bn takeover bid.

US strikes hit bridges, a railway station, energy infrastructure, Iranshahr airport and a port facility in southern Iran, killing at least eight people and wounding 20, according to Iranian authorities. Iran retaliated with missile and drone attacks against countries hosting US bases, including Kuwait, Qatar, Jordan and Bahrain; Kuwait reported damage to a power and desalination plant. The Revolutionary Guard threatened further escalation, while UKMTO investigated an incident involving a tanker and military forces off Oman. The attacks also strained Iran’s power grid and pushed oil prices higher amid growing concerns about disruption around the Strait of Hormuz and other regional shipping routes.

Global tech stocks fell sharply as a deepening chip sell-off spread from the US to Asia and Europe, dragging major semiconductor companies lower and sending Japan’s Nikkei toward correction territory. Rising geopolitical tensions in the Middle East pushed mortgage rates higher in both the UK and US, with lenders repricing loans amid expectations of more persistent inflation. Burberry reported first-quarter sales growth across all categories but faced investor disappointment, while China objected strongly to the UK’s nationalisation of British Steel. Travel disruption is expected as Dover prepares for heavy traffic under new EU border controls. Netflix shares dropped following weaker revenue guidance, adding to broader market pessimism over tech valuations and competition for viewer attention.

Iranian media reported US strikes near Qeshm Island as fighting between Washington and Tehran intensified around the Strait of Hormuz. Iran accused the US of attacking a site near a children's cancer hospital in Ahvaz, saying 211 chemotherapy patients were evacuated; Washington had not immediately responded. Kuwait said its air defences were engaging renewed Iranian drone attacks, while reports said a drone struck a ship carrying American-branded vehicles near Iraq's Basra port, suspending crude loading. The Houthi movement threatened Saudi oil facilities if Riyadh escalated its involvement. Separately, Syria said it intercepted weapons allegedly bound for Hezbollah, Lebanon vowed to end Hezbollah's military presence, and India restricted crew deployments through Hormuz. Donald Trump's Gaza recovery initiative has been reduced from a territory-wide reconstruction plan to a small pilot camp in southern Gaza, with little progress expected before Israel's October elections. Oil prices rose as the conflict disrupted regional shipping and energy security.

The UK government has taken British Steel into public ownership to safeguard domestic steel production, protect jobs and stabilise supply chains after warnings from its former Chinese owner, Jingye Group, and rising operational costs. Officials plan to appoint an independent valuer to determine potential compensation. Economic updates show UK GDP grew 0.1% in May despite energy cost pressures linked to the Iran conflict, while businesses and unions highlighted ongoing uncertainty ahead of Andy Burnham assuming Labour leadership. Markets saw a surge in Rotork shares following a £4.1bn takeover by ABB and further takeover activity involving DCC, as analysts pointed to fragile economic conditions, fluctuating global energy prices and cautious business sentiment.

Summer holiday bookings have risen sharply following a fragile Middle East ceasefire, with Jet2 reporting a 7.1% increase compared with last year and higher load factors. Demand had previously been disrupted by the conflict and concerns over jet fuel costs, but recent weeks have seen strong recovery across all destinations, particularly Turkey, Cyprus, the eastern Greek islands, Bulgaria and parts of North Africa. Jet2 shares rose about 10% after the update. Travel delays persist due to new EU biometric border checks, though Jet2 says no passengers have been left behind. UK-based holiday parks and hotels are also experiencing stronger bookings as many travellers opt for short‑haul or domestic trips.

Summer bookings at UK hotels and holiday parks have risen sharply as fears of flight cancellations, rising airfares tied to the conflict in the Middle East, and lengthy delays caused by the EU’s new entry-exit system deter Britons from travelling abroad. Operators such as Lovat Parks and Awaze report significant increases in demand, particularly for destinations near water. Booking.com shows a rise in searches for domestic trips, while Waitrose forecasts record staycation-driven sales at stores in popular holiday areas. Industry analysts note a measurable uptick in staycation plans, with many travellers delaying bookings amid continued reports of disruption and uncertainty.

A UK court ordered the Financial Conduct Authority to suspend parts of its £9.1bn car finance compensation scheme while challenges from three lenders and a consumer group are reviewed, delaying expected payouts for millions of motorists. The pause means lenders will not need to calculate or pay compensation until at least after a hearing scheduled for late 2024 or early 2025. The FCA warned it may have to revert to individual complaint handling if the scheme is overturned, potentially adding years to the process and increasing costs for lenders. Senior FCA officials noted the regulator faces financial strain from the legal fight, while millions of affected drivers may now see compensation pushed back to 2028 or beyond.

OpenAI has been exploring a proposal to give the US government a 5% stake in the company as part of a broader plan for major American AI developers to share financial benefits with the public. The discussions, described as early and conceptual, are aimed at improving relations with the Trump administration and addressing growing political pressure on the AI sector. The plan resembles a sovereign wealth fund model such as the Alaska Permanent Fund and would likely require congressional approval. Other firms including Anthropic, Google and Meta are referenced as possible participants. The talks involve senior administration officials and lawmakers including Donald Trump, Howard Lutnick, Scott Bessent and Bernie Sanders, who has promoted a separate public wealth fund funded by taxes on large AI companies.

BT and Verizon will merge their international operations in a 50/50 joint venture projected to generate $4bn in annual revenue, with Verizon paying BT a $625m equalisation fee to ensure equal voting rights. The move ends BT’s long search for a buyer for its international division as the company refocuses on the UK under chief executive Allison Kirkby, who has led extensive cost‑cutting efforts. Verizon is also reducing costs and sees the venture as a way to create a unified, AI‑ready global platform. The new entity will be headquartered in the UK, led by former Telstra executive Martijn Blanken, and remains subject to regulatory approval. BT’s international business has been progressively divested following past financial and accounting issues, including the BT Italia scandal, with several units sold in recent years.

British American Tobacco plans to cut 5,500 jobs and outsource 3,500 more as part of a transformation strategy aimed at cutting costs and shifting toward AI‑enabled operations. The company faces declining global cigarette demand and increasing pressure to expand its portfolio of smoke‑free products. Recent outsourcing to Accenture supports its push into digital and AI capabilities. BAT continues to shut down conventional cigarette manufacturing, including a major factory in South Africa, while reporting growing revenue in newer product categories such as Vuse vapes and Velo pouches. Shares fell slightly following the announcement.