Key events
Up to 150 former WH Smith stores to close as high court approves restructure
Up to 150 former WH Smith high street stores are to close after the high court approved a swingeing restructure that could affect thousands of jobs.
The retailer, which has 450 stores and employs about 5,000 staff, was bought last year by the private equity firm Modella Capital, which also owns Hobbycraft, and rebranded as TG Jones.
It had warned it could have to call in administrators if the restructuring plan, which involves writing off debts to suppliers and cutting rent for many landlords, was not approved.
WH Smith’s bookstall at Waterloo Station, Lambeth, London, 1960. Photograph: Heritage Images/Getty Images
On Wednesday Alex Willson, the chief executive of TG Jones, said: “We welcome the court’s approval of our restructuring plan. This decision allows us to move ahead with our turnaround strategy.
double quotation markThe plan protects the substantial core of the store estate and makes TG Jones a stronger, more sustainable business. We are incredibly grateful to all the colleagues, partners and stakeholders who engaged constructively throughout the process, and to Modella Capital for its continued financial commitment.
The high court judge Mr Justice Hildyard approved the restructure, despite criticising the short amount of time given for the court to consider the matter.
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Halifax to disappear from UK high street as Lloyds axes bank brand after 173 years
Lloyds Banking Group has announced it is axing the Halifax brand, meaning the 173-year-old former building society’s name will disappear from UK high streets.
The group will stop opening new accounts under the Halifax brand, and kickstart a process of shifting existing accounts to Lloyds branding over the coming days.
The bank will begin removing Halifax signs from 190 of the group’s 531 branches in early 2027. No branches will be closed as a result of the changeover.
A Halifax branch in the town centre at Halifax, West Yorkshire. Photograph: Christopher Thomond/The Guardian
The decision, first reported in May, has proved controversial among loyal customers and Halifax residents, and follows a review of Lloyds’ branding strategy.
The group has operated under three brands – Lloyds, Halifax and Bank of Scotland – since January 2009, when the financial crisis and a series of bad business decisions brought the combined Halifax-Bank of Scotland group to its knees.
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Oil prices fall 1% as US-Iran talks continue
Oil prices have fallen, as negotiations for a final peace agreement between the US and Iran continued at a technical level.
Brent crude fell 1.6% to as low as $71.62 a barrel, and is now trading at $72.25, down nearly 1%, close to levels seen before the war started.
Technical talks betweeen the two sides are under way in Doha, with Qatar and Pakistan acting as mediators, Reuters reported, citing a soure.
Donald Trump and his son-in-law Jared Kushner and envoy Steve Witkoff arrived in Doha for what the White House described as “high level” talks on Tuesday. But Tehran and host Qatar said they would meet with mediators, rather than directly with the Iranian representatives.
Brent crude fell by around $45 a barrel between April and June, its biggest quarterly loss since the global financial crisis in 2008, amid relief over a ceasefire and the negotiations for a permanent deal to end the four-month war, started by US-Israeli missile attacks on Tehran on 28 February.
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UK competition watchdog launches investigation into Nexfibre-Netomnia deal
Mark Sweney
The competition watchdog has launched an in-depth investigation into the £2bn proposed deal by the owners of Virgin Media O2 to buy the UK’s fourth largest broadband operator.
The Competition and Markets Authority (CMA) said today that it has accepted a request from Nexfibre – which is owned by VMO2 shareholders Liberty Global and Telefonica as well as InfraVia Capital – to fast-track its investigation into the deal to buy Netomnia.
The Nexfibre joint venture aims to build scale by buying so-called “alt-nets”, smaller challengers competing in the market to provide broadband services, to create a challenger to BT’s Openreach. Rajiv Datta, chief executive of Nexfibre, said:
double quotation markWe requested a fast-track to phase 2 to get to the right answer faster, ensuring due process, while recognising urgency,” said “This deal would create the scale, sustainable alternative to the BT Openreach monopoly, something the UK market still lacks.
The deal to buy Substantial, the parent company of Netomnia, would create a business with an 8m fibre network.
The CMA investigation is being closely watched by the industry as consolidation comes to the around 100 alt-net companies which have run up more than £9bn in net debt, having raised more than £31bn in funding, according to Enders Analysis.
Goldman Sachs-backed CityFibre, the largest of the UK’s alt-nets, has publicly called for the deal to be blocked arguing that a high degree of overlap between VMO2’s broadband network and Netomnia would materially reduce competition.
Simon Holden, chief executive of CityFibre, said:
double quotation markVMO2/Nexfibre’s planned acquisition of Netomnia would remove a successful challenger and reduce choice for consumers,” said . “The deal raises significant questions and the CMA is right to take an in-depth look at its impact on UK digital infrastructure and the competition that policymakers, regulators and the altnets are working so hard to establish.
The CMA said that its in-depth investigation will conclude in December. A spokesperson said:
double quotation markWe have accepted nexfibre and Substantial’s request to fast-track their merger to an in-depth phase 2 inquiry. This decision is not a finding of any competition issues, and it allows the independent inquiry group leading this investigation to make a decision faster than under the usual timetable.
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Paramount has formally submitted commitments to European regulators to win clearance of its $110bn takeover of Warner Bros Discovery (WBD).
The European Commission revealed the move in an update to the competition case examining the mega-deal on its website on Wednesday. No details were provided about what remedies Paramount has submitted to allay regulatory fears.
The offer by Paramount is reportedly expected to win approval in Europe paving the way for the creation of one of the world’s largest media and entertainment groups. The deal gained approval from the US Department of Justice earlier this month.
The deal will create a media powerhouse controlling assets including the Paramount and HBO Max streaming services, Channel 5 and TNT Sports, which broadcasts Champions League, Premier League and the Olympics, the Hollywood studios behind franchises including Superman, Batman and Top Gun, as well as HBO, home to shows including Game of Thrones, The White Lotus and Succession.
However, on Tuesday the UK culture secretary said she intends to ask Britain’s media and competition watchdogs to investigate public interest and competition concerns relating to the deal.
Lisa Nandy said that she is “minded” to task the communications regulator Ofcom and the Competition and Markets Authority (CMA) to investigate the deal on media plurality and competition grounds.
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Topps Tiles warns of lower profits after hit from heatwave
Topps Tiles warned its annual profit could drop by 29%, triggering a 10% slump in its share price, as customers shifted to cheaper products and the heatwave forced builders to down tools.
Britain’s biggest tiles specialist, which has about 300 stores, has been cutting costs and closing underperforming shops, as stretched household budgets and a subdued housing market hold back demand.
Topps Tiles said that extreme heat led to temporary stoppages among housebuilders and tradespeople, and while it expects a catch-up, this is unlikely to come back fully before the end of its financial year in September.
Alex Jensen, the chief executive, said:
double quotation markTopps continues to outperform the wider market despite weaker consumer sentiment and an increased focus on lower priced products. We’re making significant strategic progress across our priorities and the self-help actions we are taking to support profitability are working and will position the business for long-term sustainable growth.
Topps Tiles in Highgate, London. Photograph: Anna Gordon/Reuters
The tile company expects adjusted pretax profit to come in above £6.5m, down from £9.2m last year, as margins come under pressure.
double quotation markWe have seen some margin pressure as ongoing uncertainty in the macroeconomic environment has led to a current greater demand for lower priced products… The macro-economic environment has continued to be challenging, with lower consumer spend and commercial areas such as housebuilding coming under further pressure.
Shares in Topps Tiles were among the biggest fallers in London and were 7.5% lower at 33p in early trading.
The gloomy update also weighed on rivals, including kitchen supplier Howden Joinery and building materials supplier Travis Perkins, which fell 1.5% and 2%, respectively.
Analysts at Peel Hunt said:
double quotation markWhile weather is arguably a one-off hit, the weaker consumer sentiment and increased participation of lower priced product is unlikely to change in the short term and so we have reduced our sales and margin assumptions for the outer years as well.
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Updated at 06.11 EDT
Primark owner ABF expects lower profit because of sugar business
Primark owner Associated British Foods still expects annual profits to come in below last year’s, with its sugar business making losses and trading worsening, and Primark also struggling.
ABF shares fell 2.3% and were among the biggest fallers on the FTSE 100 index, which dipped just under 30 points, or 0.26%.
The group, which unveiled plans in April to spin off the budget clothing chain from its food businesses before the end of 2026, said group revenue on a constant currency basis was flat in its third quarter.
Primark’s revenue increased 3%, but like-for-like sales (at outlets open more than a year) were down 2.2%, reflecting a “challenging” retail environment in most markets.
The company said a strong start to its spring-summer trading in March was followed by weaker trading in April and May, largely due to the impact of the Middle East war on consumer sentiment and unseasonal weather. Improved weather in June, i.e. the heatwave, contributed to stronger trading.
Shoppers pass by a branch of Primark during a heatwave in Manchester, on 25 June. Photograph: Katy Blackwood/NurPhoto/Shutterstock
Sales in ABF’s grocery business, which includes well-known brands such as Ovaltine, Ryvita and Twinings, rose 1%. Revenue in the sugar business dropped 4%, reflecting lower average selling prices in Europe, volume declines in Tanzania and the impact of higher imports in South Africa.
ABF said the duration and severity of the Middle East war has increased gas price expectations for next year, which has impacted its European profit outlook for its sugar business.
It now expects an adjusted operating loss for sugar of £25m to £60m in the current financial year and “a further deterioration” in 2026-27. Aside from sugar, its full-year outlook remains unchanged, with group profits seen below the £1.73bn made last year.
The company saide turning around the sugar business is a priority for management, signalling further cost cuts.
double quotation markWe expect to take further action to lower our cost base going forward, particularly in Europe.
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Eurozone inflation slows more than expected to 2.8% in June
Inflation in the eurozone slowed more than exected last month, easing pressure on the European Central Bank to raise interest rates again this month.
Overall inflation in the 21 nations sharing the euro currency slowed to 2.8% in June from 3.2% in May, below analysts’ forecasts of a 3% reading, as prices for food, energy and services all rose at a slower pace.
Core inflation, which strips out volatile food and fuel prices, slowed to 2.4% from 2.6%, as services inflation dropped to 3.2% from 3.5%.
Although the June figure is still well above the ECB’s 2% inflation target, the recent decline in oil prices triggered by US-Iran peace negotiations and ceasefire has raised hopes that price pressures willl ease.
Several policymakers have said that there is no rush for the bank to follow up June’s quarter-point rate hike with another move this month. However, Joachim Nagel, president of the Bundesbank and an ECB policymaker, said today that inflation is still too high, according to Germany’s Frankfurter Allgemeine Zeitung.
The ECB is worried that the initial energy shock will feed through into prices for other goods and services, eventually lifting wages as well. But such second-round price effects have yet to materialise and so far wage growth has not picked up.
Most economists and investors think that the ECB will raise rates again in September or October, if it pauses in July.
There are worries that the shortage of fertiliser from the Middle East coupled with the European heatwave could reduce crop yields and push up food prices in the months ahead, lifting inflation just as energy costs are easing.
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UK manufacturing activity cools in June
UK manufacturing activity cooled in June despite a boost from companies stockpiling ahead of price increases and supply chain problems stemming from the Middle East conflict, according to closely watched industry survey.
The final reading of S&P Global’s purchasing managers’ index for June fell to 52.5, below a preliminary estimate of 53.1, and May’s reading of 53.9. Readings above 50 indicate an expansion in activity.
The survey’s output index was the highest since September 2024, at 52.6, up from 52.2 in May. However, growth in new orders slowed sharply. Supplier delivery times lengthened by the smallest amount since February.
New export business increased for the sixth month in a row, although at the slowest pace during that period. Firms flagged new work intakes from mainland China, the EU and the US, while growth opportunities in the Middle East stalled as a result of the Iran war.
Rob Dobson, director at S&P Global Market Intelligence, said:
double quotation markThe UK manufacturing sector ended the second quarter of the year on a positive note.
Sustaining the upturn is becoming a bigger concern. Manufacturers are currently benefiting from client strategic stockpiling, as they safeguard against supply chain disruptions and expected price rises. A drop in the rate of growth of new work intakes suggests this boost is already starting to fade.
Manufacturers’ raw material and other costs rose at the slowest pace since March (the Iran war began on 28 February with US and Israeli missile strikes on Tehran).
The Bank of England, which held interest rates steady last month, is monitoring how higher energy prices caused by the closure of the strait of Hormuz, a key shipping passage, feed into inflation and the wider economy.
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Eurozone factory output in best quarter since 2022 as cost pressures ease
Factory production in the eurozone ended its best quarter in nearly four years last month with easing cost pressures as the US and Iran negotiated a ceasefire, even though sluggish export demand is still weighing on activity, according to a closely-watched survey.
The monthly purchasing managers’ index from S&P Global – a measure of the overall health of the eurozone manufacturing sector – slipped to 51.4 in June from May’s 51.6 but remained above the 50 mark that separates growth from contraction. This final reading was a tad above the flash estimate of 51.3.
The output sub-index rose to 51.7 from May’s 51.3, marking a two-month high. After stagnating in May, the latest survey data signalled a rise in new orders received by eurozone manufacturers. The increase was only marginal, however. Export demand remained a drag, falling for the second month in a row.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said:
double quotation markA further rise in manufacturing output in June adds to signs of encouraging resilience in the eurozone economy. June’s expansion in fact rounds off the strongest calendar quarter for euro area manufacturing production since the opening months of 2022, and will offset the recent decline that’s been recorded in the services economy.
This sustained growth was accompanied by a welcome cooling of cost pressures, largely reflecting the sharp drop in oil prices seen during the month, alongside an easing of supply worries.
However, whether the better news out of the Middle East leads to a further improvement in the near-term performance of the manufacturing economy is not clear cut.
On one hand, lower energy prices and improved supply conditions are very positive, not only reducing firms costs and alleviating potential supply disruptions but also helping boost consumer demand via lower inflation. On the other hand, producers have benefited in recent months from precautionary stockpiling, which is already starting to fade and could start to act as a drag on growth in the coming months.
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Yen hits 40-year low against dollar
The yen has hit a 40-year low against the dollar, as a sharp rise in US government bond yields boosted the US currency ahead of key jobs data that could bolster the case for a Federal Reserve rate hike this month.
The dollar rose as high as 162.84 yen, well above levels that prompted Japanese authorities to intervene a few weeks ago to support the struggling currency, and later settled at 162.71 yen, up 0.1% on the day.
Referring to the likelihood of another intervention, Chidu Narayanan, head of macro strategy for APAC at Wells Fargo, said:
double quotation markWe believe we are close to potential action.
We are at crucial levels, not necessarily in terms of a target spot level, but levels where the Ministry of Finance might need to intervene to retain its credibility.
Traders see Friday’s US public holiday as a potential window for Tokyo to step in to buy yen, with thinner liquidity likely to amplify the impact of any intervention.
Japan’s top currency diplomat said the authorities’ intervention two months ago to support the yen had been effective, and that some US officials had been “supportive” of the move, according to Bloomberg News.
However, Joey Chew, head of Asia FX at HSBC, said Japan’s ministry of finance appeared more tolerant of yen weakness than in the past.
The dollar has strengthened against other major currencies and oil prices have fallen sharply to $72.74 a barrel for Brent crude amid US-Iran peace talks, which have eased pressure on the Bank of Japan to curb inflation.
The euro dipped 0.1% to $1.1404, while sterling eased 0.1% to $1.3245. Against a basket of currencies, the dollar was up 0.1%.
A selloff in US Treasuries (as government bonds are known) on Tuesday pushed the benchmark 10-year yield up as much as 9 basis points before easing back. By Wednesday, yields were rising again, up 4 bps at 4.465%, a bigger move than in eurozone bond yields.
Ahead of Thursday’s non-farm payrolls report, data overnight showed US job openings rose to a two-year high in May, though sluggish hiring weighed on consumers’ perceptions of the labour market.
Traders now see a 67% chance of a Fed rate hike in September, up from 20.5% a month ago, according to the CME FedWatch tool.
This afternoon, Fed chair Kevin Warsh and other central bank chiefs including the Bank of England governor Andrew Bailey and European Central Bank president Christine Lagarde will be speaking at a panel discussion at the ECB’s forum on central banking in Sintra in Portugal.
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UK government bond yields rise amid fears over US-Iran peace talks
In financial markets, yields on UK government bonds are rising after oil prices edged up, on concerns that peace talks between the US and Iran to end the four-month war have stalled.
The yield, or interest rate, on 10-year gilts rose as much as 6 basis points to 4.818%. The 30-year gilt also clilmbed 6bps to 5.539%. Both are at their highest levels since 22 June.
Investors see an 85% chance of a quarter-point rate hike from the Bank of England by the end of the year.
Brent crude, the global oil benchmark, rose slightly to $73.53 a barrel earlier, and is now trading at $72.77 a barrel, down 0.25% on the day.
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Shares in some of Britain’s biggest housebuilders are down again for a second day, after analysts at Kepler Cheuvreux downgraded some target prices, and a class action lawsuit against seven companies over alleged price collusion was filed on Tuesday.
On the FTSE 100 index, Barratt Redrow has fallen 1.5% while on the FTSE 250, Berkeley Group dropped 1.9%.
UK house price growth stalled for a second consecutive month in June, according to Nationwide Building Society, as rising mortgage rates triggered by the war in Iran deterred home buyers and estate agents warned of a summer slump.
Amy Reynolds, the head of sales at the London estate agency Antony Roberts, said:
double quotation markThere is the familiar pre-summer push from families wanting to be settled before the new school year, but the mood is steady and selective rather than booming or stalling. We expect a quieter, price-sensitive summer, with activity firming again in the autumn once buyers have more clarity on rates and the geopolitical noise has died down.
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‘Housing market remains weak, but falling mortgage rates pave way for recovery’
Ashley Webb, senior UK economist at Capital Economics, noted that the three-month growth rate eased from 1.3% in May to 0.7% in June. Prices were flat in June versus the month before but he reckons they will rise again in the coming months as mortgage rates ease – with large house price falls “not on the cards”.
double quotation markThe stagnation in the Nationwide measure of house prices in June shows that the rise in mortgage rates triggered by the Iran war continues to weigh on the housing market. But if the recent fall back in swap rates, and therefore mortgage rates, is sustained, we expect house price growth to pick up again later this year.
We suspect house prices will do little more than flatline over the next few months, or perhaps even fall a bit, as the drag on housing demand from the previous jump in mortgage rates triggered by the Iran war continues to be felt.
But house prices will probably start to rise again later this year as mortgage rates continue to fall back. The two-year quoted mortgage rate fell from 5.1% in April to 4.9% in May and the recent decline in the 2-year swap rate suggests it will fall to around 4.5% in June.
The risk, though, is that the improvement in prices we expect doesn’t happen in time to meet our forecast that prices will rise by 1.5% in the year to the fourth quarter of 2026. Indeed, May’s slump in mortgage approvals is consistent with the annual growth rate of house prices slowing to just above 1.0% in six months’ time. Either way, the coming falls in mortgage rates make us more confident in our view that big outright falls in nominal house prices are not on the cards.
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Back to house prices. Jonathan Hopper, chief executive of Garrington Property Finders, said:
double quotation markThe dust is settling but that doesn’t mean it’s back to business as usual. Nationwide’s data shows that at a national level, prices flatlined between May and June.
The regional data reveals which areas have got back into their stride and which have not.
Northern England, Scotland and Wales all saw their annual pace of growth improve during the last three months. The West Midlands saw the biggest turnaround in fortunes between the first and second quarters of the year, with annual price growth leaping from zero to 3.2%.
The North-South divide continues to grow and could be turbocharged by a prime minister Burnham. A huge injection of government spending into the north could create a Burnham bounce that accelerates northern price growth further.
Meanwhile Nationwide’s data offers some modest good news for central London, where the prolonged slide in average prices is over. Nevertheless the capital’s malaise has now spread to outer boroughs and the south-east commuter belt, where a glut of supply is holding down prices and allowing buyers to be choosy.
As a result, even in highly desirable areas buyers are often able to demand – and get – significant price reductions; while those who are not convinced that a home is 100% right for them won’t hesitate to walk away.
This is due to three factors – elevated interest rates, buyer caution and buyers’ sense that they have time and choice on their side.
While house price growth in the north is faster than in London and the south, property values in absolute terms are still much higher in the capital and southern England. At nearly £541,000, the average price in London is more than double those in the north west (£231,415) and the north (£173,756).
In the south west, the average house price is £310,429 and in the south east, £341,175.
Turning to mortgage rates, Hopper said:
double quotation markWhile mortgage interest rates have eased in recent weeks, and there are encouraging signs that they may tick down further in coming months, the extra cost of borrowing is still a barrier for mortgage-dependent buyers.
The abundance of choice and lower purchase prices is finally tempting cautious buyers back to the market, but the road back to normality will be long and the prospect of major property tax changes under Britain’s latest prime minister is a dark cloud for a market still craving clarity and confidence.
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Updated at 03.41 EDT
Call to suspend new EU border system in peak holiday period as planes leave half full
Mark Sweney
Airlines and airports have called for the new EU biometric border check system to be suspended during the peak summer holiday period, warning that some flights are leaving half full and passengers are struggling in queues of up to five hours.
In a letter to Ursula von der Leyen, the president of the European Commission, airlines and airports asked for an option to suspend checks under the system over fears the situation will get much worse during the busy summer.
The summer will bring a “significant worsening of an already very difficult situation for passengers,” said industry groups ACI Europe, which represents airports, and Airlines 4 Europe and IATA, which represents airlines. The letter said:
double quotation markPassengers have already been forced to queue for extended periods outside terminal buildings and on exposed aprons because border control facilities cannot process arrivals quickly enough. Airlines face half-empty planes at gate closing time, while passengers are stuck in border control queues.”
Some planes have had to delay take off while waiting for passengers, while others have had to leave passengers behind.
The groups called on the EC to allow airports to “completely suspend” checks “whenever passenger volumes exceed the operational capacity of border control facilities” during July and August.
A passenger airplane, operated by British Airways, comes in to land at London Heathrow Airport in London in 2025. Photograph: Bloomberg/Getty ImagesShare
“The UK housing market is proving to be a study in resilience rather than exuberance,” said Anthony Codling, housing analyst at RBC Capital Markets. The average price of a home dipped £540 in June from May but rose almost £6,000 year on year.
double quotation markThe average UK home now costs £277,484, a market that is moving sideways more than it is marching forward. The headline number tells one story, but the regional picture tells a more interesting one: Northern Ireland is doing its own thing entirely, running nearly four times hotter than the national average, while much of southern England is essentially flatlining.
Mortgage rates remain the stubborn gatekeeper to a more meaningful recovery, with affordability still stretched by historical standards, and the Bank of England’s cautious approach to rate cuts keeping buyers in a holding pattern.
The good news is that all 13 regions are now in positive annual growth territory, which is no small feat. The bad news is that for housebuilders hoping for a demand surge to justify a bullish volume outlook, this is a market that remains more tortoise than hare.
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Introduction: UK house prices flat in June, says Nationwide; higher energy bills cap kicks in
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
House prices in the UK were flat last month, as the market weakened amid the Iran war which sapped people’s confidence.
The average price of a home was little changed at £277,484 in June, versus £278,024 in May, according to Nationwide Building Society’s monthly survey. The zero change reading, which had been expected by economists, came after May’s 0.6% monthly dip.
Compared with June last year, property values were 2.2% higher, up from 1.7% in May.
Robert Gardner, Nationwide’s chief economist, said:
double quotation markIt is not surprising that the market has softened a little in recent months, given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates. Indeed, consumer confidence and measures of housing sentiment have weakened, and mortgage approvals fell noticeably in May.
Nationwide also published regional figures for the second quarter.
House prices rose fastest in Northern Ireland between April and June, although the annual rate slipped to 8.6% from 9.5%, taking the average price to £226,699. The annual pace was 3.9% in north west and northern England, and 3.5% in Scotland and Wales.
In London, prices rose at an annual rate of 1.6%, down from May’s 1.7%, to an average property value of £540,903.
Gardner said the mortgage payment on a typical first-time buyer property in Northern Ireland is now equivalent to 31% of an average earner’s take home pay, up from 24% in the second quarter of 2022 – although this is still lower than the UK average of 33%. Moreover, the price of a typical home in Northern Ireland is now roughly 80% of the average UK price, up from 70% in early 2024, but still well below the peak of 125% recorded in 2007.
Gardner added:
double quotation markWhile geopolitical tensions remain high, the signing of a memorandum of understanding between Iran and the US helped push oil prices back towards the levels prevailing before the conflict began.
If the energy shock continues to subside, the Bank of England may not need to raise interest rates, or at least by less than had previously been anticipated – a view reinforced by the fact that UK inflation has also been lower than expected in recent months.
In recent weeks a shift in market expectations for the future path of Bank Rate has helped to bring down the market interest rates which underpin fixed-rate mortgage pricing.
If maintained, these trends will help to restore household confidence and ease affordability constraints, paving the way for a recovery in housing market activity in the coming quarters, providing that domestic political uncertainty does not adversely impact sentiment.
The government’s new energy price cap comes into effect today. There are warnings that millions of households in Great Britain will be pushed into fuel poverty after months of volatility on the global gas markets, as energy bills rise by more than £220 a year, writes our energy correspondent Jillian Ambrose.
As the cap on gas and electricity rates rises to the equivalent of £1,862 a year, the number of households forced to spend more than 10% of their income on energy bills will increase to 13.5m from almost 11.3m in April, according to fuel poverty campaigners.
Using new calculations, which assume lower energy consumption, the regulator believes the average UK household will spend £1,663 a year from July.
The End Fuel Poverty Coalition warned that the steepest summer rise in energy charges in four years would leave almost 5.5m homes facing energy bills of about 20% of their income, up sharply from 4.3m in April this year. The charity calculated the figures based on research by the University of York.
The Agenda
10am BST: Eurozone inflation for June (flash)
2pm BST: Bank of England governor Andrew Bailey, ECB president Christine Lagarde and US Federal Reserve chief Kevin Warsh, Bank of Canada governor Tiff Macklem speak at ECB panel in Sintra, Portugal
3pm BST: US ISM manufacturing PMI for June
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Updated at 05.00 EDT
