Shares in Babcock, BAE Systems and QinetiQ have risen after former defence secretary John Healey was appointed chancellor. Investors expect him to support faster military investment, but funding a move towards 3% of GDP could require around £10 billion of additional annual spending.
Prologis has challenged the forecasts used by SEGRO to reject its £13.5 billion takeover proposal. The US bidder must make a firm offer, withdraw or secure an extension by 5pm on Wednesday as major shareholders divide over SEGRO’s warehouse and data-centre value.
UK businesses face political change, rising mortgage rates and renewed market volatility as Andy Burnham prepares to become prime minister. China has condemned the nationalisation of British Steel, while Burberry reported improving sales despite disruption from the Middle East conflict.
Renewed Middle East tensions have pushed up oil prices, UK borrowing costs and expectations of further interest-rate rises. However, stronger consumer spending, improving retail results and proposals to unlock billions of pounds in new lending provide some positive news for British businesses.
il prices fell and global stock markets rose after reports of progress in US-Iran peace talks, easing fears of a prolonged energy shock. But disruption around the Strait of Hormuz remains a major risk for shipping, inflation and business confidence.
The FTSE 100 edged higher as investors weighed hopes of a US-Iran agreement against uncertainty over oil supplies, inflation and central bank policy. Falling crude prices have eased fears of another energy shock, but markets remain cautious as traders await more detail on the deal, the Bank of England’s next move and the wider impact on UK businesses.
