US stock markets are due to reopen on Friday afternoon following Thursday’s closure, but the investing outlook is still clouded by uncertainty after Donald Trump announced a two-week timeline to decide if the US will get involved in a potential brewing war between Israel and Iran.
For the UK, the FTSE traded lower on Thursday as the Bank of England announced a hold on interest rates at 4.25 per cent; while this was expected, higher than expected inflation data earlier in the week and the prospect of higher energy bills due to rising oil prices means there is now much more scrutiny on August’s MPC meeting and whether they will indeed cut interest rates then.
UK retail data shows that in May, sales fell at the largest level since December 2023 in a cutback by shoppers on clothes and food alike.
Follow The Independent’s live coverage of the latest stock market and business news here:
Business and FTSE news on Friday
- UK retail sales fell sharply in May
- Homebuilder Berkeley Group names new executive chair and CEO
- River Island to close 33 shops with hundreds of jobs at risk
- Duo found guilty of £1m insider trading of shares during lockdown
FTSE 100 closes down after late fall
16:46 , Karl MatchettThe FTSE 100 has spent most of the day up a little, but an end-of-week dip means the index finishes down, at -0.18 per cent.
European stocks mostly ended positively, with the German DAX up 1.3 per cent for the day.
Heading into the evening, US stocks are decidedly mixed with the S&P 500 flat, the Nasdaq down 0.3 per cent and the Dow up by about the same amount.
That’s it for us and our coverage this week but we’ll be back on Monday at 7am - have a good weekend all.
Friday's business news and stock markets - live
08:15 , Karl MatchettGood morning and welcome to the final day of the working week - following on from yesterday’s interest rates call, today we’ll see how the markets react as the US stock market reopens and how the several ongoing geopolitical issues affect business confidence.
We start with UK retail data - which wasn’t great last month.
Retail sales fell in May
08:32 , Karl MatchettThe early data out today shows retail data falling sharply in May - with the Office for National Statistics labelling the 2.7 per cent drop as “dismal”.
ONS senior statistician Hannah Finselbach said: “Retail sales fell sharply in May with their largest monthly fall since the end of 2023.
“This was mainly due to a dismal month for food retailers, especially supermarkets, following strong sales in April. Feedback suggested reduced purchases for alcohol and tobacco with customers choosing to make cutbacks.
“The falls were consistent across all sectors with clothing and household goods stores reporting slow trading due to reduced footfall. There was also decreased demand for DIY items as consumers took advantage of the good weather over the previous few months.
“Looking at the wider picture, retail sales are still up across the latest three-months as a whole.”
Homebuilders Berkeley Group announce ‘Rob the Builder’ as new executive chair
08:40 , Karl MatchettBritish homebuilder Berkeley Group Holdings has reported end-of-year pre-tax profits of £528m and announced that their new executive chairman will be Rob Perrins, the veteran CEO known in the industry as “Rob the Builder”, who succeeds Michael Dobson to become executive chairman.
As Dobson steps down in September, Perrins, who has caught the attention of deputy prime minister Angela Rayner in her mission to build 1.5m houses, will steer the company through a new strategic phase.
A statement from Berkeley thanked the outgoing chair, as Perrins prepares to accelerate investment through a new “company 10-year strategy”.
Reporting their end-of-year financials on Friday, the group highlighted more than 4,000 homes being delivered - 92 per cent of which were on brownfield land typically previously used for industrial or commercial purposes.
More here:
Homebuilders Berkeley Group announces new executive chair to lead 10-year strategy
FTSE news live - Shares start day on the rise
08:54 , Karl MatchettThe FTSE is in the green this morning; not enormous rises but welcome ones all the same for investors.
While the benchmark FTSE 100 is up 0.38 per cent, the UK’s smaller businesses are shining slightly brighter today, with the FTSE 250 up 0.51 per cent and the AIM also up 0.21 per cent.
European markets are up too, with Germany’s DAX leading the way with a 0.9 per cent rise in early trading.
Government borrowing jumps despite boost from national insurance hike
09:20 , Karl MatchettGovernment borrowing last month jumped to the highest level for May outside the pandemic era despite a boost to the tax take after the Chancellor’s national insurance hike.
The Office for National Statistics (ONS) said so-called compulsory social contributions, largely made up of national insurance contributions (NICs), jumped by £3.9 billion or 14.7% to a record £30.2 billion in April and May combined.
It followed the move by Rachel Reeves in April to increase NICs for employers, which has seen wage costs soar for firms across the UK as they also faced a rise in the minimum wage in the same month.
In spite of this, borrowing still surged to £17.7 billion last month, the second highest figure on record for May, surpassed only at the height of Covid.
Government borrowing jumps despite boost from national insurance hike
Angela Rayner must learn lessons from housebuilders if she wants to succeed
09:50 , Karl MatchettIn my corner of south-west London, it is impossible to avoid Berkeley Homes. Their boards are everywhere, popping up with new developments of apartments and houses.
For the SW postcodes read right across London, Birmingham and the south-east. Berkeley has got them cornered and as today’s company figures show, it is powering ahead, leading an industry that has been struggling with red tape, rising costs, shortage of suitable sites and an uncertain market.
Chris Blackhurst writes on Berkeley’s new chief and Labour’s 1.5m homes bid:
Angela Rayner must learn lessons from housebuilders if she wants to succeed
Markets recovering after US pauses Israel-Iran involvement
10:19 , Karl MatchettThe FTSE remains firmly in the green this morning but bigger factors still lie ahead.
“Markets recovered some ground as the US appeared to temporarily pull back from the prospect of intervening directly in the Israel-Iran conflict,” says AJ Bell investment analyst Dan Coatsworth.
“Trading in Asia was mixed as China kept interest rates unchanged, while the US market was closed yesterday for the Juneteenth federal holiday. Early on Friday, futures prices implied modest weakness when Wall Street opens later on.
“Airlines, banks and other financials were among the stocks leading the way in London. Among the laggards, housebuilders were weak after Berkeley’s full-year results disappointed, and Shell and BP surrendered some of their recent gains as oil prices eased back from the highs seen earlier this week.
“While the immediate prospect of a US intervention in Iran may have diminished, the fact this is reportedly a two-week hiatus means it will remain a live issue for the markets going into next week. A meeting of European ministers with their Iranian counterparts to try and formulate a deal today could be crucial.”
£2bn Bahrain tie-up announced for UK business
10:40 , Karl MatchettA new partnership between the UK and Bahrain has been signed, which will see £2bn of investment from the Bahrain private sector in industries such as financial services, clean energy and technology.
“This £2bn commitment is yet another major vote of confidence in the UK economy, backing the key growth sectors we’ve identified in our upcoming modern Industrial Strategy,” business minister Jonathan Reynolds said in a statement.
A proposed UK-Gulf Cooperation Council free trade agreement, while a defence cooperation accord was also signed.
Gold price slips but oil remains elevated
11:30 , Karl MatchettThe price of gold has been rising this year reaching new highs, but it’s down a little over 1 per cent today and has dropped from $3450 on Monday to $3373 today. Not exactly a collapse and it’s still up 3 per cent on the month, but perhaps an indication of declining fear in the markets just now.
Brent Crude Oil remains just above $77 however and that’s a key figure to watch over the coming weeks.
How rising inflation impacts your mortgage and savings
11:41 , Karl MatchettInflation shot back up to 3.5 per cent in April, having been on a downward trajectory at the start of 2025, before a marginal decrease to 3.4 per cent in May.
In part as a result of this sticky inflation, the Bank of England (BoE)’s Monetary Policy Committee has voted to maintain interest rates at 4.25 per cent, following a cut in May.
As interest rates are one of the primary ways the BoE looks to control inflation, they are often linked to each other, and each one can have knock-on effects on several areas for people in the UK.
Here’s how it all rolls in together to impact you:
Watchdog investigates Amazon over payment delays
12:07 , Karl MatchettThe UK’s grocery watchdog is investigating Amazon UK over potential delays in payments to suppliers.
Selling groceries through the website and through Fresh stores, the adjudicator said “it has reasonable grounds to suspect” Amazon has not been making payments in a timely manner, the FT report.
Shoppers may have to wait for Mastercard payout
12:25 , Karl MatchettMastercard settled last month on a £200m case which could see shoppers get up to about £70 each for historical overcharges.
However, that amount may yet change and shoppers will have to wait to see when they can get it.
That’s due to a firm called Innsworth, who helped fund the original case, now bringing another claim to ask for a larger cut of the £200m.
If successful, there will be less for consumers to recoup.
FTSE 100 risers and fallers
12:40 , Karl MatchettHere are the biggest risers and fallers for the FTSE 100 so far today:
- Melrose Industries, 3.9 per cent
- Standard Chartered, 2.8pc
- Entain, 2.44pc
- Vodafone, 2.13pc
--
- Berkeley Group, -7.8pc
- Marks and Spencer, -1.15pc
- BP, -0.7pc
- Easyjet, -0.69pc
The FTSE 100 is up 0.49 per cent for the day as a whole.
Consumer confidence up in June amid ‘dark shadow’ of inflation and war
13:00 , PAConsumer confidence improved marginally in June despite the “dark shadow” of inflation and turmoil in the Middle East, figures show.
GfK’s long-running Consumer Confidence Index rose two points but remains firmly in negative territory at minus 18.
Confidence in the general economy over the coming year rose five points, driving the improvement, but still remains at minus 28 – 17 points worse than last June.
The forecast for personal finances over the next 12 months remained unchanged at positive two – two points down on this time last year.
The major purchase index, an indicator of confidence in buying big ticket items, also remained unchanged at minus 16, seven points better than last June.
Consumer confidence up in June amid ‘dark shadow’ of inflation and war
River Island to close 33 shops - 70 more at risk
13:28 , Karl MatchettHigh street shop River Island have announced plans to close 33 shops amid a restructuring, with 70 more shops subject to renewed rent arrangements and a creditor agreement.
The company has not said how many job losses are expected but a statement said it would “regret” any enforced departures.
“The well-documented migration of shoppers from the high street to online has left the business with a large portfolio of stores that is no longer aligned to our customers' needs,” read the statement from CEO Ben Lewis.
“The sharp rise in the cost of doing business over the last few years has only added to the financial burden.
“We have a clear strategy to transform the business to ensure its long-term viability [...] but it is only with a restructuring plan that we will be able to see this strategy through and secure River Island's future as a profitable retail business.
"We regret any job losses as a result of store closures, and we will try to keep these to a minimum.”
Brother and sister guilty of £1m insider trading over Jet2 and Daimler shares
13:40 , Karl MatchettA former research analyst at the investment firm Janus Henderson has been found guilty of insider trading after making around £1m during the Covid lockdown, along with his sister.
Redinel Korfuzi and his sibling Oerta Korfuzi were charged by the Financial Conduct Authority (FCA) with conspiracy to commit insider dealing and money laundering, between January 2019 and March 2021, and were found guilty at Southwark Crown Court after pleading not guilty.
Mr Korfuzi was accused of using confidential information gathered during his work to place a particular type of complex trade, called Contracts for Difference (CFDs), through accounts owned by his sister and two other co-defendants. Prosecutors alleged that he used lockdown as cover for his operation, keeping it “hidden from the supervising eyes and ears of his colleagues” while working from home.
In this manner, Mr Korfuzi made £963,000 in around six months and was “was at the absolute centre” of matters, said the prosecutor.
Full details here:
Brother and sister guilty of £1m insider trading over Jet2 and Daimler shares
Amazon to work with grocery body over investigation
14:20 , Karl MatchettEarlier we noted Amazon are under investigation from the Groceries adjudicator over late payment of suppliers.
A spokesperson for the company said they will work with the body to ensure transparency and improvements.
“Amazon takes the Groceries Supply Code of Practice incredibly seriously and we will co-operate fully with the adjudicator as he carries out his investigation,” said the statement.
“While we are disappointed with this decision, we welcome the opportunity to further demonstrate our ongoing compliance with this particular section of the code.
“We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing falling year-on-year.
US stocks open lower after Thursday's close
15:29 , Karl MatchettUS stocks have opened slightly lower, after markets were closed on Thursday in the States.
The S&P 500 is down, albeit only 0.04 per cent, while the Nasdaq is at -0.11 per cent.
The Dow Industrial is in the green, up 0.2 per cent.
Royal Mail CEO resigns following £3.6bn sale
15:45 , Karl MatchettEmma Gilthorpe, the chief executive of Royal Mail, has left after just over a year in the role.
That follows the sale of the parent company to Czech billionaire Daniel Kretinsky several weeks ago.
Mr Kretinsky bought International Distribution Services for £3.6bn in April.
The Guardian report that chief operating officer Alistair Cochrane will take over on an interim basis.
Metro Bank major shareholder open to sale
15:59 , Karl MatchettReuters are reporting that Metro Bank’s largest shareholder, Jaime Gilinski Bacal, is open to selling his stake.
Reports recently suggested Metro could be in line for a takeover, with TSB another high street name which has attracted attention.
It follows a wave of dealmaking in the financial sector, with Nationwide taking over Virgin Money and Coventry Building Society buying Co-op Bank.
H&M sales expected to edge higher as turnaround continues
16:21 , Karl MatchettH&M investors will be hoping the high street fashion chain shows it is on the road to recovery next week despite caution among many shoppers.
The retailer is expected to report a slight rise in sales for the latest quarter in an update on Thursday June 26 as it continues with its turnaround strategy.
It comes after the Swedish firm reported weaker-than-expected sales for the first quarter of its financial year in its previous update in March.
H&M saw net sales grow 2% to 55.3 billion Swedish krona (£4.24 billion) for the three months to February 28.
