FTSE 100 rises 1pc
Germany has suffered its archetypal commercialized shortage successful much than 3 decades arsenic Russia’s warfare successful Ukraine wreaked havoc crossed its export-focused economy.
The shortfall for Europe’s biggest system deed €1bn (£860m) successful May – the archetypal monthly shortage since 1991.
Cross-border income fell unexpectedly by 0.5pc arsenic companies suffered softer request for their products amid a worsening economical outlook.
Imports roseate 2.7pc – overmuch bigger than economists expected – owed to surging vigor costs and proviso concatenation troubles.
The figures bespeak the interaction of the warfare successful Ukraine and China’s zero-Covid strategy, which person driven up prices astir the satellite and thrown proviso chains into chaos.
Rouble slides to two-week low
The rouble slid to a two-week debased against the dollar and euro this morning, extending losses sustained successful the erstwhile league arsenic the marketplace awaited much accusation connected imaginable currency interventions.
Russian banal markets slumped precocious past week aft state elephantine Gazprom cancelled dividend payments for the archetypal clip successful much than 2 decades.
The rouble, having mislaid the enactment of past week's tax-driven dollar and euro sales, dived sharply distant from much than seven-year highs.
The currency was 1.4pc weaker against the dollar astatine 55.27 this greeting aft dropping to its weakest constituent since June 20.
Last week Finance Minister Anton Siluanov said Russia could chopped authorities spending and transmission funds to overseas currency interventions to support a lid connected the rouble's strengthening, which threatens fund revenues.
ECB to artifact banks from involvement complaint windfall
The European Central Bank is exploring ways to forestall banks from earning billions of euros of other nett erstwhile it starts raising involvement rates aboriginal this month.
The ECB provided $2.2 trillion of subsidised loans to banks to assistance avert a recognition crunch erstwhile the pandemic hit. But the planned summation successful rates is expected to supply other net worthy up to $24bn for eurozone lenders.
The ECB's governing assembly volition sermon however it tin artifact this windfall that hundreds of banks volition beryllium capable to gain by simply placing the loans backmost connected deposit astatine the cardinal bank, the Financial Times reports.
Pub numbers clang to lowest connected record
The fig of pubs successful England and Wales has crashed to the lowest level ever recorded.
There were conscionable 39,970 pubs successful June, a autumn of much than 7,000 since 2012, according to existent property consultancy Altus Group.
Thousands of pubs person shuttered implicit the past decennary arsenic they battled with accrued contention from supermarkets and higher taxation burdens.
In 2019 the assemblage expanded for the archetypal clip successful a decade, suggesting pubs could beryllium backmost connected the rise.
But the pandemic enactment paid to that progress, portion Altus warned boozers were present grappling with soaring prices and vigor bills.
According to the research, the West Midlands saw the biggest fig of pub closures successful the archetypal six months of 2022, with 28 shutting.
It was followed by London and the East of England which some mislaid 24.
Turkish ostentation soars to astir 80pc
Inflation successful Turkey surged to its highest since 1998 past period arsenic President Recep Tayyip Erdogan's policies worsen the country's economical crisis.
Annual ostentation roseate to 78.6pc, with devour prices rising 4.95pc connected a monthly basis.
While galore countries are suffering from surging inflation, critics accidental Erdogan's attack is exacerbating the problem.
The Turkish person insists that precocious borrowing costs cause inflation – a presumption that contradicts established economical reasoning – and alternatively advocates lowering involvement rates to boost maturation and exports.
Turkey's cardinal slope had chopped rates by 5 percent points since September to 14pc before pausing the cuts successful January. The Turkish lira mislaid 44pc of its worth against the dollar past year.
Pret a Manger swings backmost to profit
Pret a Manger returned to profitability successful March aft suffering different twelvemonth of hefty losses successful 2021 amid lockdowns and Covid restrictions.
The radical revealed it remained successful the reddish with operating losses of £225.9m past year.
However, this was an betterment connected the £343m nonaccomplishment seen successful 2020 astatine the tallness of the pandemic, acknowledgment to a 17pc rise successful revenues to £461.5m arsenic restrictions lifted and workers returned to offices.
The java concatenation said its betterment has "continued and accelerated" successful 2022, with half-year revenues up 230pc to £357.8m, helping it instrumentality to profitability successful March and becoming currency travel affirmative since May.
The figures travel up of the motorboat of Pret's caller affordable paper scope aboriginal this week successful effect to the cost-of-living crisis.
The steadfast said its betterment came arsenic it boosted its beingness extracurricular London – where commercialized was deed peculiarly hard by the power to moving from location – with income maturation faster extracurricular the capital.
FTSE risers and fallers
The FTSE 100 has staged a beardown commencement to the time arsenic markets regained immoderate composure aft a torrid archetypal fractional of the year.
The blue-chip scale roseate 1pc, boosted by lipid stocks arsenic crude prices pushed higher amid proviso concerns.
BP and Shell rose 3.6pc and 2.9pc respectively, providing the biggest boost to the index. Harbour Energy was the biggest riser, up implicit 4pc.
The FTSE 250 inched up 0.1pc. Grafton Group was the biggest laggard, shedding 6.5pc aft the gathering materials supplier announced the departure of its main executive.
Germany posts archetypal monthly commercialized shortage since 1991
Germany has reported its archetypal monthly commercialized shortage successful 3 decades aft exports fell unexpectedly successful May.
The shortfall of €1bn (£860m) was the archetypal since 1991, with cross-border income declining 0.5pc. At the aforesaid time, imports roseate 2.7pc – overmuch much than anticipated.
The figures item the disruption sparked by Russia's warfare successful Ukraine and China's continued Covid lockdowns.
Germany's system – the largest successful Europe – is heavy focused connected exports.
Budget airlines bask rider boost
Ryanair and Wizz Air person some reported a leap successful rider numbers successful June arsenic holidaymakers flocked backmost to question contempt wide chaos.
Ryanair said the fig of passengers it carried tripled to 15.9m compared to past year, portion its load origin accrued to 95pc.
Meanwhile, Wizz Air carried 4.3m passengers past period – up 180pc twelvemonth connected year.
The numbers travel successful spite of weeks of question chaos astatine airports, with galore airlines forced to slash flights owed to unit shortages.
Rush hr chaos arsenic substance terms protests artifact motorways
Drivers are facing much chaos during this morning’s unreserved hr arsenic campaigners blocked motorways successful a protestation implicit soaring substance prices.
Protesters created a rolling blockade on the M4, heading towards the Prince of Wales bridge. Similar demonstrations are besides expected successful Yorkshire and Essex.
Police warned of “serious disruption passim the day”, with motorists urged to enactment astatine location wherever possible.
It comes amid increasing discontent astir the surging outgo of petrol and diesel connected petrol presumption forecourts, which has been driven higher by Russia’s warfare successful Ukraine.
But motoring groups person complained that pump prices person remained precocious adjacent aft wholesale costs began to autumn back.
Howard Cox, laminitis of the FairFuelUK Campaign, said:
These are not conscionable demonstrations against the grounds excruciatingly precocious petrol and diesel prices that emergence each and each day.
They are besides astir the sickening chronic manipulation of pump prices and the implicit deficiency of scrutiny by our retired of interaction Government, successful allowing unchecked petrol and diesel profiteering to tally rife.
A slow-moving rolling roadblock is underway connected the M4. A fig of vehicles volition caput eastbound implicit the Prince of Wales Bridge and expected to exit the M4 astatine J22 (Pilning). There they program to re-join westbound towards Wales.
A akin protestation from the England broadside is besides expected.
— Avon and Somerset Police (@ASPolice) July 4, 2022
FTSE 100 opens higher
The FTSE 100 has pushed higher astatine the open, providing immoderate much-needed alleviation to stocks aft past week's sell-off.
The blue-chip scale roseate 0.9pc to 7,231 points.
Poorest families 'brutally exposed' to terms rises
Meanwhile, there's a damning study retired this greeting from the Resolution Foundation showing that astir 2 decades of income stagnation has near the poorest British families "brutally exposed" to the existent crisis.
The deliberation vessel said excessively galore families faced the existent situation already struggling with debased incomes, scant savings and ungenerous payment support.
Adjusted for inflation, the disposable income of a emblematic household grew conscionable 0.7pc annually successful the 15 years earlier the Covid pandemic, and the poorest 5th of the colonisation were nary amended disconnected astatine all.
It blamed an abysmal productivity show that has depressed wage levels and entrenched decades of inequality.
A emblematic wage would beryllium £9,200 higher contiguous had wage continued to turn arsenic it did earlier the 2008-09 fiscal crisis.
Britain’s caller past of debased income maturation and precocious inequality has near galore households struggling to cope. Turning this astir requires higher wage and productivity, a stronger information nett and gathering connected our strengths – specified arsenic boosting employment for lower-income households. pic.twitter.com/riWquQgd2w
— Resolution Foundation (@resfoundation) July 4, 2022
BCC: Red lights are flashing
Shevaun Haviland, manager wide of the BCC warns "the reddish lights connected our economical dashboard are starting to flash".
Nearly each azygous indicator has seen a deterioration since our past survey successful March. Business assurance has taken a important deed and fears implicit ostentation and outgo pressures are astatine caller grounds highs.
UK firms to rise prices further
It seems the cost-of-living situation has overmuch further to tally arsenic a grounds fig of UK companies are readying imminent terms increases.
Almost two-thirds of firms expect to rise prices implicit the adjacent 3 months, according to the British Chambers of Commerce. This rises to 80pc successful the retail, operation and manufacturing sectors.
The respondents cited concerns astir higher vigor prices, wage bills, substance and earthy worldly costs, portion the BCC warned the "red lights were starting to flash" connected its economical dashboard.
Meanwhile, a study from the Resolution Foundation recovered the poorest British families had been near “brutally exposed” to the cost-of-living crunch aft astir 2 decades of income stagnation.
Adjusted for inflation, the disposable income of a emblematic household grew conscionable 0.7pc annually successful the 15 years earlier the Covid pandemic, portion the poorest 5th of the colonisation were nary amended disconnected astatine all.
5 things to commencement your day
1) Boris Johnson urged to backmost bid for mill astatine bosom of Britain’s nutrient supply: Last-minute entreaty for Boris Johnson to creaseless way for takeover of fertiliser works earlier August shutdown
2) City banks defy Brussels to out-earn French rivals: British banks person made much nett than French rivals for the archetypal clip since 2015, contempt efforts by EU officials to displacement much jobs retired of London and onto the continent post-Brexit.
3) Tesla loses $440m arsenic Elon Musk's Bitcoin stake sours: carmaker's $1.5bn concern sheds worth amid cryptocurrency plunge
4) RAF's flagship drone squadron has nary drones: The RAF’s flagship drone trials squadron owns nary drones and has carried retired nary in-house trials with the uncrewed trade successful the 2 years of its existence.
What happened overnight
Asian markets were mixed and lipid fell arsenic traders fret implicit a imaginable recession caused by cardinal slope involvement complaint hikes aimed astatine warring soaring inflation.
Hong Kong dropped while Shanghai, Seoul, Taipei and Jakarta were besides down.
However, Tokyo, Sydney, Singapore, Taipei and Wellington rose.
Coming up today
Corporate: No scheduled updates
Economics: Producer terms scale (EU)