Business news live: Easyjet rises 6% to lead FTSE 100 higher, oil prices drop on ceasefire announcement

Ahead of the US markets opening later this afternoon, the main indices are up.

It’s the Nasdaq which leads the way, 0.93 per cent in the green although a little lower than earlier morning, reflecting the drop-off we’ve seen since Israel’s claim that the ceasefire was broken.

The S&P 500 is set to open 0.74 per cent up, with the Dow 0.67 per cent in the green.

Bank of England interest rate-setter Megan Greene, who voted to hold at 4.25 per cent last week, has detailed her unease at the economic situation facing the UK – and doesn’t expect the muddy waters to clear soon.

Speaking at the National Institute of Economic and Social Research, Ms Greene pointed to the surprising inflation levels in food prices and said it’s an “uncomfortable” period in the balancing act.

“I worry about the near-term profile for inflation this year, which in my view now resembles more of a ‘plateau’ than a ‘hump’,” Ms Greene said.

“I continue to think the risks remain two-sided but skewed to the downside on growth and to the upside on inflation.

“This is an uncomfortable place to be for a central banker.”

On a wider lens, Ms Greene also pointed out the geopolitical factors which are impacting or could impact on UK inflation.

“On the global front, there are a number of key events playing out between now and our next meeting, including the deadline for the pause on so-called ‘reciprocal tariffs’ from the US, the potential passage of a budget in the US and the unfolding of events in the Middle East,” she said.

“It’s unlikely that the uncertainty from these events – and subsequent developments – will be resolved any time soon.”

Spanish banks Sabadell and BBVA have had their shares suspended from dealing, ahead of a decision over a hostile takeover.

BBVA announced in May the intent to complete a bid for its smaller rival.

The process is standard ahead of a decision by Spanish government over whether to impose conditions on the takeover bid.

A quarter of a percent rise for the main index so far today, while the smaller companies are slightly better off.

AIM is 0.34 per cent to the good, the FTSE 100 is 0.25 per cent and the FTSE 250 at 0.84 per cent in the green.

Among the highest risers of the top tier firms remain the airlines, with Easyjet leading the way with a 6.28 per cent climb.

BA owner IAG is next, 5.31 per cent up, while JD Sports, Barclays and Anglo American are all more than 3 per cent up today.

Endeavour Mining is the only FTSE 100 company down 3 per cent or more other than BP, which is still 4.5 per cent down.

Grocery prices are now 4.7% more expensive than a year ago as supermarket inflation hit its highest level since last March, figures show.

The figure is up from 4.1% last month, which was a rise from 3.8% in April, according to data from analysts Kantar.

Price rises did not stop British consumers from making 490 million trips to the supermarket over the last month, averaging almost 17 per household and the highest recorded by Kantar since March 2020.

The increase in visits saw take-home grocery sales over the four weeks to June 15 grow by 4.1% compared with the same period last year.

However, the rise in the frequency of visits was balanced out by a drop in average amount spent per trip, which fell by 3p to £23.89.

Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Supermarkets and grocery brands are entering new territory as weight loss drugs become more popular, with four in 100 households in Great Britain now including at least one GLP-1 user.

“That’s almost twice as many as last year, so while it’s still pretty low, it’s definitely a trend that the industry should keep an eye on as these drugs have the potential to steer choices at the till.

“Four in five of the users we surveyed say they plan to eat fewer chocolates and crisps, and nearly three quarters intend to cut back on biscuits.”

Meanwhile, consumer concerns over price are continuing, with sales of own label ranges growing 4.2% this month ahead of branded lines as shoppers looked to balance their budgets.

Brent Crude Oil, seen as a global benchmark of prices, has dropped 4.95 per cent, sitting back under $68 a barrel having been $77-78 for much of Monday and as high as high as $80 over the weekend.

The drop back to March price levels is a notable falloff, not just in actual price but in fears of further escalation, with some analysts estimating this week that oil prices could have soared beyond $100 in the event of Iran partially or temporarily closing off the Strait of Hormuz.

Oil is still steady at just under $69, so no immediate off-the-charts reaction to Israel’s suggestion the ceasefire has been breached.

Even so, markets will remain cautious – but as always, they are forward-looking too, as AJ Bell’s investment director Russ Mould reminds us.

What next, is always the question?

“The markets will be watching closely to see if the cessation in hostilities is maintained and for Iran’s next move – amid noises from that side that no such ceasefire has been agreed.” Mr Mould said.

“Defensive stocks, oil producers and precious metals miners were all under pressure in early trading. Gold slipped back as its safe-haven attributes were less in demand. This rather clipped the wings of the FTSE 100 given its relatively heavy weightings in these areas and saw the index underperform its European counterparts.”

“On the flipside, travel stocks moved higher, both on the implications for fuel costs but also as the potential hit to foreign travel appetite that might have resulted from any further escalation of Middle East tensions seems to have been swerved.

“Attention may switch from geopolitical concerns to the outlook for interest rates as the individuals heading up the US Federal Reserve and Bank of England are set to speak before politicians in their respective countries, with observers alive to any hints about the future trajectory of rates.”

NS&I are reducing the Premium Bonds prize fund rate to 3.6 per cent from August, lowered from 3.8 per cent.

They say the odds of winning remain unchanged at 22,000 to 1.

That’s a direct result of a “changing landscape for savings”, NS&I say.

That’s in spite of the interest rate not changing last week, when the Bank of England opted to hold at 4.25 per cent.

Here’s our roundup for the best rates in savings accounts and cash ISAs, if you’re looking for a new home for your money or if your bank offers you a less-impressive savings rate. (And a guaranteed rate, unlike Premium Bonds.)

Amazon is set to create thousands of new jobs across the UK as part of a substantial £40 billion investment over the next three years, signalling a major expansion of its logistics network.

The technology giant confirmed that a new fulfilment centre in Hull will open this year, generating some 2,000 roles.

Another 2,000 jobs are earmarked for a site in Northampton, scheduled to open in 2026.

Beyond these confirmed locations, Amazon also announced plans for two additional warehouses in the East Midlands, slated for a 2027 opening.

While the precise sites remain undisclosed, these facilities are expected to lead to the recruitment of thousands more positions.