London's FTSE 100 pulls back from record close as Middle East tensions escalate
The benchmark FTSE 100 (.FTSE), opens new tab was down 0.5% as of 0905 GMT, less than 1% away from an intraday record high. It is set for a fifth consecutive week of gains.
Israel launched large-scale strikes against Iran on Friday, targeting nuclear facilities and ballistic missile factories, to prevent Tehran from building an atomic weapon. Iran retaliated by launching 100 drones.
The development adds to caution in the global financial markets, which have been grappling with the impact of U.S. President Donald Trump's erratic tariff policy moves.
The heightened tensions in the oil-rich Middle East sent prices of crude soaring, last up 7% and weighing heavily on travel and leisure stocks (.FTNMX405010), opens new tab.
British Airways owner ICAG (ICAG.L), opens new tab fell 4.3%, EasyJet dropped (EZJ.L), opens new tab 3.2%, while Wizz Air (WIZZ.L), opens new tab was down 1.7%. Global airlines cleared out of airspace in the Middle East, diverting flights.
London-listed shares of cruise operator Carnival (CCL.L), opens new tab were down 4%.
However, gains in commodity-linked stocks capped declines on the blue-chip index, with energy shares (.FTNMX601010), opens new tab up 1.7%, boosted by gains in giants Shell (SHEL.L), opens new tab and BP (BP.L), opens new tab.
As investors flocked to safe havens amid the heightened tensions, gold prices rose to over 1%, helping precious metal miners (.FTNMX551030), opens new tab up 1.3%.
Mid-caps in London (.FTMC), opens new tab slid 1.2%, on track for their steepest single-day fall in more than two months.
Gas producer Energean (ENOG.L), opens new tab bottomed the FTSE 250 after it said it had temporarily suspended the production and activities of its power floating production storage and offloading (FPSO) located offshore Northern Israel.
Markets will be looking ahead to the Bank of England's monetary policy meeting next week, where it is expected to keep interest rates on hold.
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The Independent
19 minutes ago
- The Independent
US President Donald Trump arrives in Scotland
US President Donald Trump has landed in Scotland ahead of a four-day visit. Air Force One – the presidential plane – touched down at Prestwick Airport in Ayrshire on Friday just before 8.30pm. The president was met by Scottish Secretary Ian Murray as he disembarked, before heading to the waiting presidential helicopter Marine One, bound for his nearby Turnberry golf course. During his time in the country, the president will meet Prime Minister Sir Keir Starmer and Scottish First Minister John Swinney, as well as European Commission president Ursula von der Trump and Sir Keir are expected to discuss potential changes to the UK-US trade deal which came into force last month. Mr Swinney has pledged to 'essentially speak out for Scotland'. Speaking as he boarded Air Force One, the president said he would be having dinner with the Prime Minister at Turnberry, before 'going to go to the oil capital of Europe, which is Aberdeen'. He said: 'We're going to have a good time. I think the Prime Minister and I get along very well.' He added: 'We're going to be talking about the trade deal that we made and maybe even approve it.' He also told journalists he was 'looking forward' to meeting with the 'Scottish leader' Mr Swinney, describing him as a 'good man'. During his time in Scotland, the president is also likely to spark a number of protests, with concerns being raised about how such demonstrations are policed. Police Scotland has called in support from other forces in the UK to help bolster officer numbers, though senior officers and the organisation which represents the rank-and-file, have accepted Mr Trump's visit will have an impact.
Reuters
20 minutes ago
- Reuters
US dollar rises, but on track for weekly drop ahead of Fed, BOJ
NEW YORK, July 25 (Reuters) - The U.S. dollar advanced on Friday, bolstered by solid economic data that suggested the Federal Reserve could take its time in resuming interest rate cuts, while tariff negotiations showed more clarity that eased some uncertainty in the market. The U.S. currency showed little reaction to data showing new orders for key U.S.-manufactured capital goods unexpectedly fell in June while shipments of those products increased moderately. That suggested business spending on equipment slowed considerably in the second quarter. "The dollar regained some ground the past two days, after being on the defensive earlier in the week ... supported mostly by an encouraging set of U.S. economic data that argues for continued patience at the Fed," said Elias Haddad, senior markets strategist at Brown Brothers Harriman in London. The greenback was set for its biggest weekly drop in a month, ahead of more tariff dialogue and central bank meetings next week, while sterling dipped after softer-than-expected British retail sales data. Both the Fed and the Bank of Japan are expected to hold rates steady at next week's policy meetings, but traders are focusing on the subsequent comments to gauge the timing of the next moves. "We see some room for optimism at the (Fed) meeting," wrote BNP Paribas in a research note. "Economic uncertainty associated with trade policy, while not entirely resolved, has declined markedly." Politics is a factor for both central banks, most dramatically in the U.S., where President Donald Trump once again pressed for lower interest rates on Thursday as he locked horns with Fed Chair Jerome Powell. Brown Brothers' Haddad said the Fed's monetary policy is being "overshadowed by the political pressure to lower interest rates. That's one of the reasons why I think the dollar's upside is limited." The dollar managed to recover a touch against the euro late on Thursday, however, after Trump said he did not intend to fire Powell, as he has frequently suggested he could. "The market relief was based on the fact that Trump refrained from calling for Powell to go, although that was based on Trump's view that Powell would 'do the right thing'," said Derek Halpenny, head of EMEA research at MUFG. He added, however, that "the theme of Fed independence being undermined by the White House will unlikely go away and remains a downside risk for the dollar." Falls against the euro and yen leave the dollar index , which measures the dollar against six other currencies, at 97.45, on track for a drop of 0.8% this week, its weakest performance in a month, though it bounced back 0.2% to 97.663 on Friday. Meanwhile, in Japan, though the trade deal signed with the U.S. this week could make it easier for the BOJ to continue rate hikes, the bruising loss for Prime Minister Shigeru Ishiba's coalition in upper house elections on Sunday complicates life for the BOJ. The yen was softer, thanks in part to below-expectations Tokyo inflation data, with the dollar last up 0.4% at 147.59 yen, though on course for a weekly 0.9% fall , the lowest since June 23. The euro was flat at $1.1741 , but set for a weekly gain of nearly 1%, its best showing in a month. The common currency took some support Thursday from the European Central Bank meeting. Policymakers left the policy rate at 2%, as expected, but the bank's relatively upbeat assessment of the economic outlook and signs that an EU-U.S. trade deal is near caused investors to reassess previous assumptions of one more rate cut this year. In contrast, soft British data is supporting expectations of more Bank of England rate cuts, and causing euro zone bond yields to rise faster than British ones, supporting the euro against the pound. The euro rose to 87.43 pence versus sterling on Friday, its highest since April, building on a 0.44% gain the previous day. . It was last up 0.4% at 87.42 pence. Data on Friday showed British retail sales data for June came in slightly below analysts' expectations, albeit rebounding from a sharp drop in May. Figures on Thursday showed business activity grew only weakly in July and employers cut jobs at the fastest pace in five months. Against the dollar, the pound fell 0.6% to $1.3434 .
The Sun
20 minutes ago
- The Sun
Thames Water are the latest corporate buffoons doing their utmost to bring my pub to its knees – it's time for revenge
YOU might imagine that staff at the near-bankrupt fish-killing enterprise known as Thames Water would be working round the clock. Ideally doing something about the hosepipe ban, rising bills and the torrent of sewage being pumped into the region's rivers every day. 6 6 Apparently not. A couple of weeks ago, two Thames Water inspectors arrived at my pub, with two people from the local council, and I assumed they were there to apologise for the woeful pressure, which is so low we have to harvest water overnight and store it in a 6,000-litre tank, because during the day all we get is a dribble. Nope. They were there to make sure I was complying with all their regulations. That seemed odd to me. I am one of their customers. I buy water from them so why should they be interested in what I'm doing with it. I sell beer to people, but I don't go round to their houses to make sure they're drinking it properly. Anyway, they were very thorough, even doing tests on the dog bowl taps we installed in the garden. And now I've received a massive eight-page list of changes they want us to make. It's stupid, petty stuff. Apart from one change they want making to our Rational steam ovens. Which, according to our plumber, would be impossible. Honestly, this is exactly the sort of corporate bullying that pubs really don't need right now. Menacing instruction Debt-ridden Thames Water hit with multi-million pound fine for polluting rivers as firm 'pushed to brink of collapse' One hostelry is closing every single day thanks to problems with mad Net Zero taxes, food allergy enthusiasts, staff shortages and the NI issues caused by Rachel Reeves 's idiotic Budget. And if they're now going to be hectored by water companies to change the flow rate of their taps, there won't be any pubs left at all. And it's not like we can just put the Thames Water missive in the bin because, naturally, it comes with a menacing instruction that everything must be sorted out within 21 days. Or else. Fine. Two can play at that game so here goes: Thames Water. You have 21 days to do the following. Or else. Upgrade the infrastructure so that you're able to supply your customers with a decent round-the-clock supply. Mend all the leaks in the region so the hosepipe ban can be lifted. Stop pumping faeces into our rivers. Undertake to cut bills to consumers by not paying your useless bosses massive bonuses. And know this. While you're getting on with that, we have started work on a bore hole. We're digging a 120ft-deep hole in the pub's garden so that we can pump our water from the massive underground lake down there. Unlike most of the water round these parts, there's no human s**t in it. You can drink it safely with no treatment at all. Also, we can pump it through our taps at whatever rate takes our fancy. And it'll cost us nothing at all. LATEST LECCY SHOCK THE Government recently announced a new scheme, which would give a £3,750 grant to anyone who bought an affordable electric car. They said it would only cost the taxpayer £650million and I'm afraid at that point I burst out laughing. Because I spent about ten seconds with a calculator and worked out that it would, in fact, cost billions. Turns out I was wrong. Because this idea was dreamed up by the Labourites, it doesn't really work. No one knows what cars are eligible for the discount and which ones aren't. Yes, it may have an electric motor, but unless it was built in a factory made from leaves and kale, it doesn't qualify. Salesmen in showrooms are saying the paperwork is ridiculous. It may well be then that no one can access the scheme, which means it'll actually cost the taxpayer nothing at all. ISLE SAY! SO the United Nations has decided that small countries should be allowed to sue bigger countries if they are causing too much global warming. Excellent. Because how hilarious would it be if one of those islands that only exist as an answer on Pointless sues Ed Miliband for not doing enough to save them. Can you imagine his silly little face. He'd be crestfallen. SEE THE LIGHT IN WALES I WATCHED a fascinating primetime BBC1 show this week called Guardian Of The Night. It was about the UK's taxpayer-funded 'dark sky officer' and her mission to turn off all the lights in huge chunks of Wales. Mostly this meant addressing a room full of parish councillor types and Liberal Democrats. Who were onside anyway. Her arguments were certainly amazing. She said that light pollution causes cancer and diabetes. Which is bad news if you live in, I dunno, a town or a city. But then she went on to explain that we need to be able to see the night sky so that we can spot an incoming asteroid. Er. I think if we are relying for our survival on a man called Geoff who uses a home-made observatory in Wales, we've probably had it. But don't worry, we aren't. So if you are reading this in Cardiff, don't worry. You can turn your lights on this evening. It'll make no difference. PHEW! IT'S JEZ 6 JEREMY CORBYN has announced that his new f ar-Left political party doesn't yet have a name. But he says suggestions are coming in from members of the public at the rate of 500 every minute. I bet they are. I bet they are. I must say, however, that I wish him every success. Because he will undoubtedly split the left's vote, thus ensuring that neither he nor that fool Starmer will win the next election. Maybe it should be called the 'Phew' party. HOW MY GREEDY LABS COULD COST ME DEER 6 6 TO try to train guide dogs not to tear off after every rabbit they see, boffins have strapped a toy squirrel to a radio-controlled car. Confused? I was too. But the idea seems sound. You take the trainee dog for a walk and have someone 'drive' the car back and forth so that, eventually, Rover gets used to it and won't yank the blind person's arm off as it sets off at 200mph in pursuit. I may try it with my dogs. They've learned not to chase the farm animals and will even sit quietly when our little army of guinea fowl clucks its way into the garden. But there is nothing I can do to stop them chasing deer. I spend half my life giving it the full 'Fenton' as they whizz about in a hopeless quest to catch something that's way faster than they are. So I shall buy a toy deer and strap it to a radio-controlled car. And see what happens. My only worry is that they're labradors. So if they catch it, they'd eat the toy. And the car as well.
