FTSE 100 ends at new closing high
And finally…
After a strong day’s trading in London, the FTSE 100 share index has ended the day at a new closing high.
The blue-chip share index has closed up 108.64 points, or 1.23%, at a new end-of-day peak of 8975.66 points.
Earlier in the session, the Footsie pushed its new intraday high record even higher, to 8979 points.
Mining stocks led the rally, with Glencore (+39%), Rio Tinto (+3.9%) and Anglo American (+3.7%) at the top of the list of risers, along with equipment rental firm Ashtead (+3.8%).
“It’s hard to think it was only last year that London’s blue-chip index climbed above the psychologically important 8,000 mark and stayed there. It had managed to briefly scale that peak a year earlier but quickly fell back, so watching the FTSE 100 creep closer and closer to 9,000 feels a little surreal,” says AJ Bell head of financial analysis Danni Hewson.
She adds:
“London based mining stocks have surged today, helping to bolster an index which has been on the front foot for most of the year, if you excuse its post Liberation Day rout. Investors have had a chance to digest Donald Trump’s copper tariffs and the surge in prices has certainly created opportunities, at least in the short term.
“It’s going to take years for the US to increase its copper mining and smelting capacity, and considering how vital it is in manufacturing EVs and mobile phones, not to mention its importance in the power grid, US demand is unlikely to fall back in any measurable way. That means copper importers are stuck between a rock and a hard place, and it will be the US consumer who will ultimately pay the price.
“But the current price surge reflects shifting policy. The sector had been anticipating tariffs on copper – even if they have come in much higher than expected – and stockpiles have been built up, so the price premium is expected to fall back in the near term.
“What is unknown is where prices will settle once they’ve had a bit of time to bed in, and how that will affect global trade, especially if economic growth slows across the world as it’s predicted to because of all the uncertainty.
“Generally, investors seem to have been rather dismissive of Donald Trump’s latest tariff tangos, believing that ultimately the US president will back off if negotiations don’t go his way. The crunch point is likely to be if a US-EU deal can’t get over the line, but even then the assumption seems to be that the new deadline, just like the last, is soft.”
And on that note, goodnight! GW
JPMorgan CEO Dimon warns of complacency in financial markets
JPMorgan Chase CEO Jamie Dimon has warned that markets are complacent, in the wake of U.S. President Donald Trump’s tariff announcements, Reuters reports.
Dimon told an event at Ireland’s foreign ministry:
“Unfortunately I think there is complacency in markets”
Although shares in London have had a strong day, the pound has been weakening.
Sterling has slipped by a third of a cent today to $1.355, with the US dollar strengthening a little following the drop in jobless claims reported today.
Mulberry raises £20m to fund growth drive
Back in the UK, Mulberry has raised £20m from its key shareholders, Challice and Frasers Group, to boost growth amid falling sales and widening losses at the British luxury handbag maker.
The group said it would also raise up to £1.2m from other shareholders after it revealed sales fell 21% to £120.4m in the year to the end of March while underlying losses widened to almost £24m from just under £23m a year before.
It said the new funds would enable it to make “targeted investments to accelerate its future growth and meet its stated medium term financial targets.”
The latest fundraising comes less than a year after Mulberry raise £10.35m, before expenses to strengthen its balance sheet and provide “financial flexibility” amid a slowdown in the global luxury market.
The group also slashed a quarter of staff at its headquarters in Somerset late last year after rejecting an £111m bid from Frasers, Sports Direct founder Mike Ashley’s retail business.
Challice, a group controlled by the Singaporean entrepreneur Christina Ong and her husband, was quick to rebuff the proposal, saying it had no interest in selling its shares. Challice’s 56% stake means it can block any deal.
Updated
Muted open in Wall Street
The New York stock market isn’t matching the sizzling performance in London today.
The S&P 500 share index has dipped by 2.5 points, or -0.04%, to 6,260 points in early trading.
Airline stocks are rising, led by Delta Air (+11%) which told investors today that demand trends have “stabilised”.
US jobless claims drop
Just in: US job losses remain low, new data shows, despite trade war uncertainty.
The number of Americans filing new claims for unemployment support fell by 5,000 last week, to 227,000, the Department of Labor has reported.
Initial jobless claims fell to 227K (-5K), while continuing claims hit 1.97M — the highest since Nov 2021. Unemployment rate steady at 1.3%. Notable claim spikes in NJ, NY, IL from layoffs in education, healthcare & manufacturing. #Unemployment #JobMarket pic.twitter.com/FogjVrmSfK
— Econoday, Inc. (@Econoday) July 10, 2025
Following the four arrests, an M&S spokesperson says:
“We welcome this development and thank the NCA for its diligent work on this incident.”
Four people arrested after cyber-attacks on M&S, Co-op and Harrods
Four young people have been arrested for their suspected involvement in the damaging cyber-attacks against Marks & Spencer, the Co-op and Harrods, PA Media reports.
The National Crime Agency (NCA) said the individuals were arrested early on Thursday morning on suspicion of blackmail, money laundering, offences linked to the Computer Misuse Act and participating in the activities of an organised crime group.
The arrests included a 17-year-old British man from the West Midlands, 19-year-old Latvian man from the West Midlands, 19-year-old British man from London and 20-year-old British woman from Staffordshire.
All four were arrested from their home addresses and remain in custody.
It comes after investigations by NCA into attacks against the three retailers, where hackers sought ransom payments after breaking into their IT systems.
Paul Foster, head of the NCA’s National Cyber Crime Unit, said:
“Since these attacks took place, specialist NCA cybercrime investigators have been working at pace and the investigation remains one of the agency’s highest priorities.
“Today’s arrests are a significant step in that investigation but our work continues, alongside partners in the UK and overseas, to ensure those responsible are identified and brought to justice.”
Earlier this week, the chair of Marks & Spencer claimed two hacks involving “large British companies” had gone unreported in recent months.
M&S’s cyber-attack is expected to knock around £300m hit to profits, as its online ordering system was offline for around six weeks.
Back in the energy sector, a former boss of Virgin Money has been lined up to chair Britain’s fourth-biggest home energy supplier.
Sky News are reporting that Dame Jayne-Anne Gadhia will become independent chair of Ovo as part of a boardroom shake-up at its parent company, succeeding Justin King, the former J Sainsbury chief.
Gadhia’s appointment comes as Ovo holds merger talks with Scottish Power, one of its largest rivals.
Updated
The EU and the US are no closer to announcing a deal after a phone call between EU trade commissioner Maros Sefcovic and the US trade representative Jamieson Greer, my colleague Lisa O’Carroll in Brussels writes.
The agreement in principle is expected to be a three page document outlining headline reductions in tariffs for cars, medical devices and possibly steel, in exchange for a baseline 10% import duty on all imports from the bloc and some simplification of paperwork on food imports.
Sources say the agreement is just waiting for Trump’s sign off and that did not happen last night so the call with Greer could never have delivered the deal.
It could yet come later today but the EU is blind on Trump’s announcement intentions.
The European Commission has the power to accept the deal as it is not legally binding as it is an agreement in principle, meaning there is no need for the type of showbusiness moment granted to UK prime minister Keir Starmer when he took a call from Trump while visiting Jaguar Land Rover’s factory in England.
The FTSE 100 is now up more than 1% at a new record high, up 106 points or +1.1% at 8973 points.
Victoria E Scholar, head of investment at interactive investor, says:
UK indices, from large cap to small are catching a bid alongside European bourses like the CAC 40 and the DAX, which also at an all-time high. Positive sentiment from a strong session on Wall Street with the Nasdaq closing higher by nearly 1% has carried forward to this morning’s European session.
Leading the gains on the UK blue chip index are the miners with Anglo American up over 5%, closely followed by Glencore and Rio Tinto. Commodities are fuelling the gains for the FTSE 100 with copper in the green and gold catching a bid on the back of a weaker US dollar. WPP is also helping drive the index higher as investors cheer the appointment of its new tech-savvy CEO.
Updated
Optimism over the chances of a US-EU trade deal are also cheering markets, reports Susannah Streeter, head of money and markets at Hargreaves Lansdown:
‘’The Footsie is footloose, shrugging off trade worries to dance to an all-time high. Even a fresh volley of tariff letters from President Trump has failed to knock investors sentiment.
The President’s latest moves are seen as posturing, and there is high expectation that there will be plenty of negotiations to head off higher duties in the weeks ahead. Indications that the EU is edging closer to a deal with the US, with an agreement thought to be possible in a few days, has added to the positive vibes.
So, hopes are riding high that the effects on global growth won’t be as onerous as feared.
UK companies among most distressed in Europe, Alvarez & Marsal finds
Less encouragingly, almost 9% of European companies are in financial distress, according to the bi-annual Alvarez & Marsal Distress Alert.
The survey also found that 32% of European companies (more than 2,500 corporates) have “fragile balance” sheets, the highest level since 2021, due to high interest rates and the struggle to generate enough operating cashflow to service debt.
Alvarez & Marsal, the professional services firm, explains:
In the UK, levels of corporate distress have fallen to 8.9% from 9.8% the year before, equating to around 250 companies. However, this remains one of the highest percentages among countries analysed.
In line with the wider European trend, the proportion of UK companies lacking balance sheet robustness has been steadily growing over the last four years, now reaching nearly one in three, or around 870 of companies analysed. This demonstrates the impact of higher interest rates and slower economic growth on companies’ ability to service their debt.
Elsewhere, Germany continues to be the most distressed market, at 11.5%, the highest level since the pandemic. The country has experienced minimal growth in recent years and is more exposed to struggling sectors like the automotive and chemicals industries. France recorded the sharpest increase in distress levels in 2024, to 10.5% from 8.1% the year before, driven by sluggish economic growth and political and fiscal challenges.
Market rally shows investors 'expect Trump to back-track'
Kathleen Brooks, research director at XTB, points out that most markets are rallying today, saying:
Risk sentiment is buoyant on Thursday, with the exception of Brazilian markets, Europe’s main stocks indices are higher, the dollar is lower, and bond markets are clam, with UK Gilts outperforming. The FTSE 100 reached a fresh record high and is now up more than 16% since April’s low. US stock index futures are down slightly on Thursday but have picked up from their lows as risk sentiment gathers momentum.
The FTSE 100 is being led higher by miners, and the materials sector is higher by more than 3% on Thursday. Healthcare stocks are also strong across Europe. This may sound counterintuitive, President Trump has just announced tariffs on copper, and is threatening a 200% levy on pharma imports, so why are these sectors rallying?
The reason is that there has been very little concrete details about how tariffs will be applied, which is why we are seeing these sectors steal the spotlight: investors expect Trump to back-track. Thus, after heavy declines for Brazilian stocks on Wednesday they may also recover later today.
The stock market is not the real economy, of course.
Out in the real world, more people are facing a cost of living squeeze.
New data from the Office for National Statistics shows that in June, 26% of adults reported that they would be unable to afford an unexpected, but necessary expense of £850.
That’s the highest proportion reported since September 2024.
In the week to 6 July 2025 compared with the previous week there were increases in:
— Office for National Statistics (ONS) (@ONS) July 10, 2025
• total Revolut debit card spending (up 2%)
• overall UK retail footfall (up 1%)
In contrast, there were decreases in the number of:
• ship visits to UK ports (down 4%)
• flights (down 3%) pic.twitter.com/gLXgG6CyrW
Initial findings from the latest Opinions and Lifestyle Survey show in June 2025, 26% of adults said they would be unable to afford an unexpected, but necessary expense of £850.
— Office for National Statistics (ONS) (@ONS) July 10, 2025
This is the highest proportion reported since September 2024.
The UK stock market is continues to flex its muscles and show strength, says Dan Coatsworth, investment analyst at AJ Bell, pushing the FTSE 100 to its record highs.
Investors lapped up shares in the mining, oil and pharmaceutical sectors, showing a risk-on mood.
“European markets in general continue to shrug off Donald Trump’s daily tariff updates, perhaps seeing them as noise and not facts. Trump is throwing out numbers left, right and centre, and investors have begun to dismiss anything that isn’t set in stone.
“So many of Trump’s decisions have either been rolled back, forgotten about, or kicked down the road. For investors, that means a shift in focus back to economic data and corporate news flow as key drivers for markets.
Rising stock markets can encourage the US administration to do ‘dumb stuff’, warns Dario Perkins, economist at City consultancy TS Lombard.
US policy reflexivity. Stock market goes up, they start doing dumb stuff again... market can ignore that but eventually it has to affect the economy. This is a path to nowhere
— Dario Perkins (@darioperkins) July 10, 2025
Stock markets might be jolted out of their trade war complacency when the damage starts showing up in economic data.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, says:
Newswires remain hectic. It’s all tariffs, tension, and chaos — but markets have an extraordinary capacity to adapt. Trade developments are quickly becoming the new normal; they no longer hammer sentiment the way they once did.
What could jolt markets is when all this starts showing up in the data — through slower growth or higher inflation. Until then, the music plays on.
The current stock market rally is somewhat surprising, given the uncertainty gripping the global economy.
You might remember that shares tanked in early April after Donald Trump announced sweeping tariffs on US trading partners, only to start recovering once they were delayed for 90 days.
That deadline has now been kicked on to 1 August, a deadline which the president insists won’t slip again (watch this space…), as it reimposes high tariffs on a swathe of countries.
And yet, shares keep rising.
Mohit Kumar of investment bank Jefferies says Trump’s announcements of additional tariffs on some countries was “largely ignored by the markets”.
Jefferies’s prediction is that risky assets (such as shares) will “grind higher”.
Kumar explains:
Our view remains that tariffs do cause volatility and uncertainty but should not have much of a market impact medium term. We see eventual tariffs ending between 10-15% on average. While a negative from a macro perspective, the world can live with 10-15% tariffs.
We also remain of the view that tariff revenue will be used to justify the extension of tax cuts. The negative impact from a tariff perspective, would be balanced to some extent by tax cuts.
Germany's DAX also hits new peak
Germany’s major stock index has also hit a record high this morning!
The DAX, which tracks the 40 largest companies listed in Frankfurt, is up 0.3% at 24,619 points.
The DAX has rallied by a blistering 23% so far this year, lifted by Berlin’s plans to boost government spending on areas such as defence.
US record high, Dax record high, FTSE 100 record high, bitcoin record high. Tariffs? Meh. It's a odd world.
— Chris Beauchamp (@ChrisB_IG) July 10, 2025
Good News! The UK FTSE 100 is up nearly 1% today and has hit a new all-time high of 8953 👍 https://t.co/2EcztTRgmh
— Shaun Richards (@notayesmansecon) July 10, 2025
Chart: FTSE 100 over the last 20 years
The ‘Footsie’ is continuing to hit new highs this morning!
It’s now up almost 1% at 8952 points, up 85 points today. Miners such as Anglo American (+4.6%), Glencore (+3.5%) and Antofagasta (+2.8%) are driving it higher.
WPP appoints Microsoft exec to lead fightback
Boardroom news: Advertising giant WPP has turned to Microsoft executive Cindy Rose to lead its turnaround.
WPP, which disappointed the City with a profit warning yesterday, says Rose will succeed outgoing chief executive Mark Read on 1 September. She is currently MS’s chief operating officer for Global Enterprise.
Shares in WPP have risen 2.5% as investors welcome Rose’s appointment, helping to push the FTSE 100 to a record high this morning.
WPP, which is under pressure from AI-generated campaigns, is touting Rose’s artificial intelligence nous. She’s also sat on the WPP board as a non-executive director since 2019.
Philip Jansen, chair of WPP, says:
“Cindy is an outstanding and inspirational business leader with extensive experience at some of the world’s most recognised companies and a track record of growing large-scale businesses. She has led multi-billion-dollar operations across the UK, EMEA and globally, built enduring client relationships and delivered growth in both enterprise and consumer environments.
“Cindy has supported the digital transformation of large enterprises around the world - including embracing AI to create new customer experiences, business models and revenue streams. Her expertise in this landscape will be hugely valuable to WPP as the industry navigates fundamental changes and macroeconomic uncertainty. Cindy’s appointment follows a thorough selection process that considered both internal and external candidates. As an existing Board member she understands our business and the needs of our clients, and we look forward to working with her in her new role as CEO.
FTSE 100 hits record high as trade war fears ease
Newsflash: Britain’s blue-chip stock index has hit a new alltime high, as investors shrug off the threat of Donald Trump’s trade wars.
Update: The FTSE 100 index has risen by as much as 80 points, or 0.9%, to a fresh record peak of 8947.84 points, over the previous record of 8908.82 set in March.
Mining stocks are leading the rally today, signalling that traders are not worried that Trump’s blizzard of tariffs will cause a global recession, despite new tariffs such as the 50% imposed on US copper imports and on imports from Brazil.
Chris Beauchamp, chief market analyst at IG, says investors are in an “ebullient summer mood”, adding:
Perhaps most notable is the market’s apparent indifference to escalating trade tensions. Trump’s 50 percent tariff on copper imports and threats toward Brazil triggered little reaction. Many now view such announcements as political posturing, summed up by TACO: Trump Always Chickens Out.
So far this year, the FTSE 100 index has surged by over 9%. It has benefitted from a range of factors this year, including the rotation out of US assets as investors have feared that Donald Trump’s trade war would hurt America’s economy.
Relief that the UK struck an early trade deal with the US has also helped make the London market attractive.
Precious metals producer Fresnillo has been the top-performing FTSE 100 stock so far this year; it has more than doubled (+140% since 1 January), as the prices of both gold and silver have risen.
British defence companies Babcock (+117% year-to-date)and BAE Systems (+63% ytd) have also both risen sharply this year, helped by expectations of a surge in defence spending as the Russia-Ukraine war has continued.
Engineering firm Rolls-Royce (+73% ytd) has also had a strong 2025.
Updated
UK drops plans for zonal energy pricing
From post to energy…. and the UK government has confirmed it will not introduce “zonal pricing”, under which southern electricity users would have been charged more than those in Scotland.
The government says it has decided to retain a single national wholesale price (as the Guardian reported earlier this week) and also reform the existing national pricing system rather than split the country into different zones.
Energy Secretary Ed Miliband said:
“Building clean power at pace and scale is the only way to get Britain off the rollercoaster of fossil fuel markets and protect families and businesses for good.
“As we embark on this new era of clean electricity, a reformed system of national pricing is the best way to deliver an electricity system that is fairer, more affordable, and more secure, at less risk to vital investment in clean energy than other alternatives.
“Our package of reforms will protect consumers and secure investment as we drive to deliver our clean power mission through our Plan for Change.”
Zonal pricing has split the energy industry – advocates argued it would encourage heavy energy users to relocate to areas where power is generated, cutting billions of pound off the cost of renewing and updating the electricity grid.
Critics, though, said it would create a ‘postcode lottery’ for energy prices.
Royal Mail: It's good news for customers
Royal Mail has welcomed Ofcom’s decision to relax the universal service obligation (perhaps unsurprising, at it could save the company £425m!).
Martin Seidenberg, group chief executive officer at International Distribution Services, says:
“It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable Universal Service.
“It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today.”
Citizens Advice: Ofcom has missed a major opportunity
Ofcom needs to hold Royal Mail to account to improve postal deliveries, says Tom MacInnes, director of policy at Citizens Advice.
MacInnes explains:
“Royal Mail has a woeful track record of failing to meet delivery targets, all the while ramping up postage costs. Today, Ofcom missed a major opportunity to bring about meaningful change.
“Pushing ahead with plans to slash services and relax delivery targets in the name of savings won’t automatically make letter deliveries more reliable or improve standards.
“While Ofcom says it recognises the importance of affordability and reliability for consumers, we need to see those words backed by action, forcing Royal Mail to do what it should’ve been doing all along - giving paying customers a service that delivers.”
Ofcom to review stamp prices
Ofcom has also launched a review of pricing and affordability of the postal service.
This will look at concerns over stamp prices, which have been steadily climbing.
Natalie Black, Ofcom’s Group Director for Networks and Communications, explains:
“As part of this process, we’ve been listening to concerns about increases in stamp prices. So we’ve launched a review of affordability and plan to publicly consult on this next year.”
Back in April, Royal Mail increased the cost of first- and second-class stamps for the sixth time in just over three years. That raised the price of a first-class stamp by 5p, or 3%, to £1.70. The cost of the second-class service rose by 2p, or 2.4%, to 87p.
This graphic shows how the changes to second-class letter post will affect deliveries across the UK:
Introduction: Royal Mail cleared to scrap second-class post on Saturdays
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Britain’s postal operator is being relieved of the obligation to deliver second-class letters six days a week, as part of reforms to the service that will also relax its delivery targets.
Regulator Ofcom has announced that from 28 July, it will allow Royal Mail to deliver Second Class letters on alternate weekdays, but no longer on Saturdays – but still within three working days of collection.
Ofcom says it is making the change to allow the UK’s universal postal service – guaranteeing delivery to anywhere in the country at a fixed price - “to survive”.
It points out that, since 2011, Royal Mail has been required under the universal service obligation to deliver First and Second Class letters six days a week. But the number of letters sent each year has more than halved over that time.
Natalie Black, Ofcom’s Group Director for Networks and Communications, said:
“These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival.
“But changing Royal Mail’s obligations alone won’t guarantee a better service – the company now has to play its part and implement this effectively. We’ll be making sure Royal Mail is clear with its customers about what’s happening, and passes the benefits of these changes on to them.
Royal Mail is now owned by Czech billionaire Daniel Křetínský, who took over its parent company International Distribution Services (IDS) last December.
Ofcom estimates that changing second-class delivery days could create annual net cost savings of between £250m and £425m, allowing Royal Mail to “invest more in improving its delivery performance.”
It will still be required to deliver First Class letters the next working day, Monday to Saturday, and there will continue to be a cap on the price of a Second Class stamp.
In another fillip for Royal Mail, though, Ofcom is making its delivery targets less demanding. It will now only have to deliver 90% of First Class mail on the next day, down from 93%.
The Second Class mail target is being weakened too, from 98.5% to 95% of letters delivered within three days. Removing Saturday from the roster of delivery days means some letters will take longer to arrive.
Ofcom inists these new targets are high by international standards, pointing out that Germany’s three-day target is 95%, Spain’s is 93%, and Norway’s and Poland’s are 85%.
The old targets have certainly proved tricky for Royal Mail – it has been repeatedly fined for missing them, with almost a quarter of first-class mail arriving late in the year to March.
The agenda
8am BST: ECB board member Piero Cipollone lecture on the digital euro
1.30pm BST: US weekly jobless claims
Updated
