The FTSE 100 ended last week on a flat note after a mixed week which saw UK inflation higher than expected, retail sales come in significantly lower for May and the Bank of England opt to hold interest rates at 4.25 per cent. All that came amid a backdrop of wider uncertainty over rising oil prices and the US’ involvement in an escalating Israel-Iran situation.
That came to a head across the weekend as President Trump launched multiple bunker-buster strikes on Iran’s nuclear facilities, with a key decision now over whether the nation closes the Strait of Hormuz, a key shipping route for oil.
In terms of financials domestically, the likes of Kingfisher, Saga, Halfords and Moonpig Group will all be on the radar as they report earnings or hold AGMs, while investors will also be watching the price of oil and gold in particular after they drifted in different directions toward the end of last week.
Follow The Independent’s live coverage of the latest stock market and business news here:
Business news LIVE - Monday 23 June
- Energy bills could be cut for thousands of UK businesses
- FTSE 100 opens lower following US strikes on Iran - but oil firms rise
- Mixed responses to UK's Industrial Strategy
- How will rising oil prices affect UK household costs?
- Spectris shares rise 15% after accepting £3.8bn bid
FTSE 100 and European markets finish down
16:40
,
Karl Matchett
At the close of play today, the FTSE 100 has closed in the red, 0.17 per cent down.
That’s less than some of the European indices, with the DAX 0.3 per cent down and France’s CAC 40 stood at -0.65 per cent.
By contrast, US stocks are rising at the start of the day, with the S&P 500 up 0.37 per cent.
Perhaps that positive sentiment will filter through to Europe tomorrow...depending on what happens overnight, of course.
That’s it for our rolling business coverage today - we’ll be back at 7am on Tuesday to bring you plenty more. See you then.
Gold prices rising again
16:19
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Karl Matchett
Lots of focus on oil, but don’t forget the key bellweather commodity - gold.
Having dipped somewhat recently after reaching record levels, gold is back on the rise over the past few days and is up 0.47 per cent today.
The price of $3401 is some way of mid-June’s $3460-plus level, but it’s worth keeping an eye on.
Investment into UK renewables drops
16:04
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Karl Matchett
An investigation by EY has found that investment into projects in the green energy and utilities sector in the UK dropped sharply last year.
UK had previously been Europe’s leader in that regard, but France overtook the UK following a 57 per cent drop.
While a big surge in 2023 investment partly contributed to that, it will still be seen as a blow as the government tries to push for investment into projects which serve the decarbonisation agenda.
Trump wants oil prices kept low
15:44
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Karl Matchett
US President Donald Trump has demanded oil prices be kept low.
Not so much an official statement or request imploring markets maintain stability, more Mr Trump’s usual method of capital letters and exclamation marks via social media:
“EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!”
You’ve had your orders.
Oil prices latest: Brent start to drop
15:10
,
Karl Matchett
Earlier, Brent Oil had risen several percent before giving back those gains. Fast forward to this afternoon and Brent’s price is at -0.1 per cent for the day, down to just below $77.
Markets just starting perhaps to feel the chances of a full Strait of Hormuz closure might not be the outcome?
Tesla shares rise 5% on robotaxi launch
14:53
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Karl Matchett
A low-key and smaller rollout than initially anticipated of the Tesla robotaxi has started in Texas, with shares in the company up 5 per cent on opening today.
It makes the EV maker the highest riser in the Nasdaq 100, with a market cap edging back towards $1.1trn.
Oil price would need to be "over $100" to impact global growth
14:25
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Karl Matchett
Tom Stevenson, investment director at Fidelity International, believes it would need a severe spike in oil price from this level to significantly impact global growth.
“Financial markets have responded with measured calm to geopolitical developments in the Middle East. While the developments over the weekend marked a significant geopolitical moment, investor reactions across asset classes suggest a belief that the broader economic and market impact may remain limited - at least for now.
“The oil price was unsurprisingly the main story, with an initial spike of nearly 6% in the cost of Brent crude, quickly being pared back to a gain of less than 1%.
“Stock markets have so far taken the events in their stride. The MSCI Asia Pacific index fell nearly 1% while the Stoxx Europe was 0.2% down, as was the FTSE 100. US market futures were little changed.
“While the market’s calm might seem strange given the geo-political backdrop, it reflects the reality that even an ongoing conflict in the Middle East may have only limited impact on global growth. The global economy is much less energy-intensive than it was in the 1970s when the Arab oil embargo had such a devastating stagflationary impact on western economies.
“In addition, the oil market is well supplied currently, with Opec+ countries able to deploy considerable spare capacity. Demand is relatively subdued in the world’s two biggest economies, the US and China, and supply is abundant. It would take a spike in the oil price to over $100 a barrel to have a serious impact on economic growth and current expectations are significantly lower than that.”
Up 15% in one day: London Stock Exchange set for another £3.8bn loss as Spectris accepts huge bid
13:49
,
Karl Matchett
Yet another firm looks set to end its London Stock Exchange listing, with specialist equipment business Spectris recommending to shareholders to accept a £3.8bn takeover bid.
A cash offer from a private equity firm, Advent International, is for £37.63 per share.
Spectris’ share price at the close of Friday’s session was around £33.48, sparking an immediate jump of 15 per cent when markets reopened on Monday morning - by far the FTSE All-Share’s biggest riser on the day.
Even so, the price could yet move even higher.
Full details on why here:
Chancellor says 'de-escalation' in Middle East right for region and for rest of the world
13:33
,
Karl Matchett
Rachel Reeves has spoken to reporters over oil prices, per the Guardian:
“We want de-escalation because it’s the right thing for the Middle East, but we also want de-escalation because of the ramifications of conflict in the Middle East for the rest of the world including the UK.
“We have seen increases in oil prices in recent days and weeks, which of course will have an impact on the UK economy. We recognise the challenge that businesses and families face with energy costs.
“Of course, higher oil prices will have implications for the UK economy. One of the reasons we want de-escalation is to ensure that oil continues to flow and to ensure that that key route, both for oil and for wider trade – the Strait of Hormuz – continues to be open.”
British Business Bank invests in entrepreneurs in £6.6bn funding commitment
13:15
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PA
The British Business Bank is to hand major investment to UK entrepreneurs as part of a £6.6 billion commitment to support innovation and industry.
The UK Government’s development bank has revealed the investment plans as part of Sir Keir Starmer’s 10-year industrial strategy announcement.
On Monday, the Prime Minister said he will cut electricity costs for thousands of businesses as part of the strategy, in a bid to help accelerate economic growth.
The British Business Bank has seen its total financial capacity grow to £25.6 billion since the most recent spending review.
It has said its latest £6.6 billion investment commitment will particularly help the rapid growth of small business across the UK.
How will your household costs be affected by conflict in the Middle East?
12:42
,
Karl Matchett
Donald Trump’s decision for the US to bomb Iran has seen fears of a crisis in the Middle East deepen, with the world braced for a counter attack from Tehran.
In one retaliatory move, the country has already voted to shut down a key shipping route, the Strait of Hormuz, prompting warnings of another spike in oil prices.
The price of oil has been on the rise over the past three weeks – amid Israel strikes on Iran’s nuclear sites – but there are concerns it could rocket even further, with one expert warning of a possible 40 per cent increase.
Here’s how it all could impact you:
Oil prices soar after US attacks on Iran nuclear sites – why they could go higher
12:20
,
Karl Matchett
Oil prices have surged to their highest level in nearly six months, driven by escalating fears over global supply following joint US and Israeli military actions against Iran's nuclear facilities.
Brent crude briefly climbed above 78 US dollars (£58.06) a barrel in early Monday trading before paring back slightly to stand at 77.6 dollars (£57.76).
This significant increase comes in the wake of recent Israeli strikes on Iranian nuclear sites, compounded by a weekend aerial bombing campaign by the United States targeting three facilities within Iran.
Investors are concerned about potential retaliatory actions from Tehran. Iran can disrupt oil shipments through the strategically vital Strait of Hormuz, a move which analysts fear could trigger a dramatic surge in crude prices and significantly impact global energy markets.
More details here:
FTSE 100 latest updates - live
12:14
,
Karl Matchett
A quick look at the markets and how they are faring heading into lunch.
The FTSE 100 is flat, regaining those earlier losses but not pushing into outright positive territory.
It’s sat at 0.03 per cent down at midday - the oil giants among those effectively giving ballast compared to European stocks which sees France and Germany’s markets down 0.4 and 0.3 per cent respectively.
The biggest riser is Convatec Group, up 3.5 per cent, while JD Sports is the biggest faller, down 3.4 per cent.
'Clarity' received on Industrial Strategy but it 'ignores 70%' of the economy
11:38
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Karl Matchett
Mixed responses to the Industrial Strategy, then...
Harry Quilter-Pinner, executive director at IPPR, said: “The UK has had 11 economic strategies in 13 years. That chop-and-change approach wasn’t fit for purpose. Today’s industrial strategy finally turns a page, offering much-needed consistency, clarity and certainty for business.
“No industrial strategy pleases everyone. But this government’s clear focus on clean energy, defence and advanced manufacturing shows it’s serious about going green to boost the economy and create good jobs outside of London. IPPR has worked closely with government to identify the sectors where Britain can lead, from heat pumps to wind energy. The UK’s future prosperity now depends on tapping into these growing global markets.
“The test now is whether this 10-year strategy moves from PDF to process. It must drive decisions across government—from scaling green supply chains to training skilled engineers—and be backed with funding beyond the current spending review. It can’t just sit on a shelf as a job well done.”
Kate Nicholls, chief executive of UKHospitality, said: “This is not an industrial strategy that will deliver growth equally across the UK. In fact, by ignoring 70% of the economy it is at odds with the Government’s ambition to create jobs and help people into work.
“Once again, growth will be distributed unevenly and centred around small industrial clusters that have high barriers to access – hardly a recipe for driving social mobility.”
Michelle Ovens CBE, founder of Small Business Britain, said: “The UK’s 5.45 million small businesses make an incredibly powerful contribution to our economy, society and communities, setting the UK apart on the world stage and representing huge future growth potential. To unlock this phenomenal opportunity, we need to be as ambitious about supporting the UK’s entrepreneurs, as entrepreneurs are themselves in driving growth, creativity and innovation.
“The Government’s new Industrial Strategy represents an important step forward to drive long-term investment and bring down some of the barriers faced by small businesses, particularly with initiatives to boost access to finance and accelerate technology adoption and digital skills development.”
UK's Industrial Strategy sees mixed responses
11:35
,
Karl Matchett
We haven’t really touched on the newly announced Industrial Strategy yet - let’s do so now.
Lower energy costs, spending £1.2bn on skills, reducing planning times and spending more than £22bn a year on driving innovation are among the key focuses, with the government focusing on eight sectors of growth.
Those are: Advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences, and professional and business services.
The response has been decidedly mixed, depending on where your business or sector sits, as we’ll see in the next post...
‘Sluggish’ UK business activity picks up as tariff threat eases
11:25
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PA
Activity across the UK’s private sector has grown this month as some easing of US tariff policy helped lift business sentiment, new survey data shows.
The strengthening service industry helped offset a persistent slump in manufacturing in June.
The S&P Global flash UK composite purchasing managers’ index (PMI) reported a reading of 50.7 in June, up from 50.3 in May.
The flash figures are based on preliminary data. Any score above 50.0 indicates that activity is growing while any score below means it is contracting.
The volume of new business returned to growth in June, ending a six-month period of contraction, the survey found.
This was primarily driven by the service sector – the largest part of the UK’s economy, spanning industries including hospitality, entertainment and culture, finance and real estate.
A further slight expansion of activity in the sector was contrasted by another drop in production for manufacturers, led by a decline in overseas export orders.
The Strait of Hormuz: Why is it so important and how does it affect oil prices?
10:20
,
Karl Matchett
Iran has threatened to close a major oil shipping route in retaliation for “devastating” US strikes on three of its nuclear sites - a move that could have a sharp impact on the global economy.
Tehran’s lawmakers voted to cut off the Strait of Hormuz, a trade route that sees one-fifth of the world’s oil and gas pass through it. The move has rattled investors, sending oil futures soaring by around 10 per cent since the US launched strikes on Iran.
It comes after seven US stealth bombers dropped 14 30,000-pound bunker-busting bombs on Iran’s nuclear facilities early on Sunday morning in an operation called ‘Midnight Hammer’.
Here’s all you need to know:
10:00
,
Karl Matchett
A little stock market analysis to begin the week with, courtesy of AJ Bell investment director Russ Mould:
“The markets are not yet reacting with any degree of panic to the US airstrike on Iran’s nuclear facilities as they await to see how Tehran responds,” said Mr Mould.
“The promised two-week hiatus as the US weighed its decision didn’t materialise as the Trump administration acted on Saturday. After briefly spiking above $80 per barrel when the market opened in Asia on Monday, Brent oil pared those gains to trade modestly higher.
“If Iran decided to block the Strait of Hormuz, through which a large proportion of the world’s oil and liquefied natural gas passes, then energy prices could move substantially higher. That could hurt consumers and businesses around the world as it would push up the cost of energy, transport and raw materials.
“The double-digit energy price gains seen since Israel’s first missile strike on Iran 10 days ago will have already had some inflationary impact.
“Thanks to the significant weighting for BP and Shell – which are direct beneficiaries of higher oil prices and which combined represent around 10% of the FTSE 100 index – the UK market was spared heavier losses seen in other European markets. However, it was still on the back foot as airlines chalked up losses as flights to destinations in the Middle East were cancelled.
“US futures point to modest losses on Wall Street when trading begins later today.”
European stocks bounce to flat after opening drop
09:40
,
Karl Matchett
France’s CAC 40 and Germany’s DAX both opened in the red today along with London’s FTSE 100 - but all three are now looking rather healthier after clawing back some ground.
Indeed, the FTSE 100 has inched over the line into positive territory... 0.02 per cent up for the day. Well, up is up.
The DAX is 0.07 per cent down, and it’s just 0.02pc in the red for the CAC 40.
We’ll keep an eye on further changes as the morning progresses - though it’s maybe once the US wakes up and any new news emerges that there might be more of a reaction today.
UK keen for South Korea to use Rolls Royce for new jets
09:31
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Karl Matchett
The UK is lobbying hard for South Korea to switch from GE Aerospace to Rolls Royce when it builds out a new fleet of fighter jets, the FT report.
Rolls Royce, a listed FTSE 100 firm, last week were celebrating winning a UK government contract regarding nuclear reactor plans and the defence firm could claim another key win here if talks pay off.
“Rolls-Royce’s involvement would de-risk the project and accelerate the timeline,” said a British official. “This is not about simply selling engines to South Korea. It is about developing a new engine together and seeing that relationship through to the end of the engine’s life.”
The FT carried a quote from South Korea’s defence agency saying: “No decision has been made yet on whether we will co-develop the engines with foreign engine makers or with which foreign company to partner with.”
Oil prices soar and Asian markets sink as Trump joins Israel’s war on Iran
08:46
,
Karl Matchett
Oil prices surged to a five-month high and Asian share markets tumbled as global trading resumed for the first time since the US joined Israel in striking Iranian nuclear facilities, jolting investors and raising fears of wider regional instability.
Investors were waiting to see how Iran would respond after Tehran vowed that the American attack would have “everlasting consequences” and declared that it was keeping all options open.
The attack targeted three Iranian nuclear facilities early on Sunday morning.
Global crude oil benchmark Brent jumped 2 per cent after rallying as much as 5.7 per cent when the market opened on Monday. The price reached $81.40 per barrel, the highest in five months, before giving up some of the gains.
Another FTSE firm to leave after £3.8bn bid
08:35
,
Karl Matchett
Another firm could be set to leave the London Stock Exchange, after Spectris agreed a £3.8bn bid to buy them out by private equity firm Advent.
Another firm, Kohlberg Kravis Roberts, are also in discussions but they are again a private firm so either way, a removal from the FTSE 250 would be the outcome.
Spectris, which makes high precision instruments and software, has seen its shares rise 14 per cent this morning on news of the bid.
FTSE 100 opens lower
08:19
,
Karl Matchett
As expected, it’s a red tide for the FTSE 100 early on, down 0.34 per cent immediately after opening, with the FTSE 250 down 0.25 per cent too and AIM mostly flat.
Within the biggest 100 companies, the largest falls come for airline stocks predictably; Easyjet is down 2.47 per cent and British Airways owner IAG down 1.82 per cent.
Only six companies have opened in the green, with BP and Shell predictably the top two within those, 1.92pc and 1.21pc up respectively.
Energy bills could be cut by up to 25% for thousands of UK businesses
08:00
,
Karl Matchett
Electricity costs for thousands of businesses will be cut by scrapping green levies to help them compete with foreign rivals.
The plan, which could cut bills by up to 25 per cent, forms a key part of Sir Keir Starmer's 10-year industrial strategy which he hopes will address stuttering economic growth and transform the business landscape.
The prime minister said the plan marks a "turning point for Britain's economy" by supporting key industries where there is potential for growth.
Manufacturers have warned "crippling" power costs are far higher for UK businesses than competitors overseas.
More details:
Asian stocks mixed, FTSE 100 set to open lower
07:54
,
Karl Matchett
UK shares face a mix of factors heading into the new week but are poised to open slightly lower this morning.
That’s no doubt down to the weekend events with the US’ strikes on Iran, though that could have impacts in both directions as far as the FTSE 100 goes.
Uncertainty isn’t good for stock markets and we don’t yet know Iran’s response, but higher oil prices - as an example - will benefit a couple of big hitters such as BP and Shell.
Overnight in Asia, stocks are down in the Nikkei 225 by 0.15 per cent, but up in the Hang Seng by 0.6 per cent.
Business news LIVE
07:05
,
Karl Matchett
Here’s a quick recap of the biggest news from the end of last week:
- Brother and sister found guilty of £1m insider trading while working from home during lockdown
- Homebuilder Berkeley Group reshuffle management as CEO takes over as executive chair
- River Island set to close at least 33 stores with hundreds of jobs in doubt
Business news LIVE
06:58
,
Karl Matchett
Good morning and welcome to another week in the business world with The Independent.
We’ll keep you up to date with all the incoming business news and latest movements in the stock market across Monday, as well as what you might have missed from over the weekend.
