6 hours ago
ECB expected to raise liking rates shortly
The eurozone is bracing for its first liking complaint emergence since 2023, arsenic nan European Central Bank prepares to group borrowing costs crossed nan azygous rate region.
The ECB is expected to summation eurozone liking rates by a 4th of 1 percent constituent today, to combat inflationary pressures from nan Iran war.
Eurozone ostentation roseate to 3.2% past month, further supra nan ECB’s target of 2%, putting unit connected policymakers to tighten argumentation – moreover though costs are being driven up by outer factors beyond nan EBC’s control.
Kathleen Brooks, research head at XTB, explains:
double quotation markThe fearfulness is that nan ECB could make nan aforesaid correction arsenic it did successful 2011, erstwhile it hiked rates correct earlier nan sovereign indebtedness crisis. Today’s hike could exacerbate nan maturation issues successful nan rate bloc, and that could measurement connected nan ECB’s credibility, thing that [ECB president Christine] Lagarde and co will want to avoid.
There is simply a increasing chorus that this complaint hike won’t bring down inflation, which is caused by an world power proviso crunch. Due to this, Lagarde whitethorn want to present arsenic neutral a connection arsenic imaginable later today, and nan barroom is precocious for Lagarde to present a hawkish surprise.
The ECB’s determination is owed astatine 2.15pm successful Frankfurt, aliases 1.15pm UK time, followed by a property convention 30 minutes later.
Key events
Back successful nan hose sector, Wizz Air has reported a slump successful profits aft nan Iran warfare deed its earnings.
Wizz’s operating profits shrank by 16.6% to $139.7bn successful nan twelvemonth to 31 March, pinch nett profits shrinking by complete 99%, contempt transporting 10% much passengers than a twelvemonth before.
Wizz told shareholders it had faced a number of “one-off headwinds” successful nan past year,including nan forced cancellation of Tel Aviv and different Middle East routes during nan 2025 highest summertime play arsenic good arsenic nan cancellation of Middle East and Cyprus routes successful March 2026.
The Iran conflict successful March 2026 knocked €50m disconnected its earnings, but this was “largely mitigated by substance hedges put successful spot anterior to nan conflict”, it says.
Wizz declined to springiness immoderate forecasts for nan existent year, citing nan deficiency of visibility astir really events will develop, uncertainty related to nan ongoing conflict successful Iran and nan closure of nan strait of Hormuz. Shares are up 6.7% this morning, though.
FTSE 100 up and lipid down contempt latest Middle East strikes
The financial markets are amazingly calm this morning, arsenic conflict erupts again successful nan Middle East.
European banal markets are mostly higher this morning, while nan lipid value is now slipping back.
Today, nan US has launched a 2nd information of airstrikes connected Iran, prompting Tehran to respond by targeting Bahrain, Kuwait and Jordan.
Brent crude lipid did jump overnight to arsenic precocious arsenic $95.50 a barrel, but it’s now slipped backmost to $92.25, down almost 1% today.
And Britain’s FTSE 100 stock scale is now up 0.55%, aliases 56 points, astatine 10,311 points.
AJ Bell finance director Russ Mould, explains:
double quotation mark“As has often been nan lawsuit during nan Iran conflict, nan UK’s flagship scale has recovered support from its postulation of power companies and much traditionally protect names. Miners and different China-linked stocks were lifted by information suggesting nan state is investing heavy successful AI and consuming earthy materials astatine a patient rate.
“Selling successful AI-related stocks, of which London has very few, put shares connected Wall Street nether unit yesterday and that’s extended to Asia today.
“Oil prices remained dependable contempt nan evident unravelling of nan US-Iran ceasefire. That is partially helped by sluggish request from China pinch imports falling arsenic nan state relies connected its ain stockpiles and expands its usage of replacement energy.
Over successful Frankfurt, shares successful Hugo Boss person jumped by complete 7% aft UK unit magnate Mike Ashley launched a takeover bid.
Ashley’s Frasers Group, which owns 26% of Hugo Boss, said past nighttime it is offering to salary astir €1.98bn (£1.73bn) for nan remainder of nan business to return afloat control.
Victoria Scholar, Head of Investment astatine interactive investor, says:
double quotation markThe connection of 38 euros a share, is balanced to a 4.3% premium to yesterday’s closing price. Hugo Boss shares person jumped complete 6% to a premium to nan connection value astatine astir 38.8 euros, suggesting that investors judge an improved connection aliases a rival bid could look pinch nan erstwhile of nan 2 looking much likely.
Frasers Group has a agelong history of building up stakes successful struggling retailers complete time, pinch respective UK acquisitions bought retired of administration. Hugo Boss’s stock value has declined successful caller years, down almost 50% from its 2023 highs, suffering since nan post-pandemic boom. However nan quality this clip is that Hugo Boss is simply a German brand, pinch a beardown world estimation that has been delivering improved results lately acknowledgment to a fruitful turnaround plan, though income and profits still fell successful nan first 4th highlighting really location is still a batch of activity to do.
UK imaginable redundancies up 59%
Elsewhere this morning, nan number of workers facing redundancy has jumped.
New information from nan Insolvency Service shows that nan number of imaginable redundancies reported successful nan past week of May was 59% higher than a twelvemonth ago.
However, it did besides alteration by 12% compared pinch nan erstwhile week.
In Jingye’s statement, it besides hopes nan UK authorities will afloat safeguard nan morganatic authorities and interests of Jingye and different Chinese companies arsenic good arsenic world investors.
China’s Jingye Steel asks UK for compensation for British Steel takeover
China’s Jingye Steel is seeking compensation from nan UK authorities complete nan takeover, and early nationalisation, of British Steel.
Jingye Steel wants Britain to compensate it for nan nonaccomplishment incurred done its finance successful British Steel, which nan UK authorities took operational power of successful April 2025.
In a connection connected WeChat, nan institution says:
double quotation mark“Jingye has precocious initiated consultation procedures nether nan bilateral finance pact pinch nan UK government.”
Last month’s King’s Speech included plans for a Steel Industry (Nationalisation) Bill, to safeguard nan home accumulation of steel.
Jingye bought British Steel retired of receivership successful 2020, but successful 2025 it announced it would unopen nan steelworks astatine Scunthorpe, prompting Starmer to measurement successful to prehend control.
Jingye past began trying to retrieve hundreds of millions of pounds of loans it had made to nan company, arsenic good arsenic compensation for nan costs of upgrading British Steel’s equipment.
Elsewhere successful nan recreation world, Heathrow has reported a driblet successful passengers successful May arsenic nan Middle East situation hits demand.
May rider numbers astatine Heathrow were down by 1.2% year-on-year past month, pinch much than 7.1 cardinal group travelling done nan airport. That includes a 1.9% driblet successful UK rider numbers.
Ryanair blasts 'bogus' investigation
Ryanair has responded to nan CMA’s investigation into its child/adult seating policy, calling it ‘false’ and ‘bogus’.
The hose points retired that it doesn’t complaint children to beryllium pinch their parents and insisting it is complying pinch nan law.
Here’s nan statement:
Ryanair’s family seating argumentation afloat complies pinch each applicable laws and regulations and saves families money erstwhile travelling connected nan UK’s lowest fare airline.
Ryanair DOES NOT complaint immoderate interest for children to beryllium beside their genitor aliases accompanying adult. Like each adults who prime a reserved seat, adults travelling pinch children salary 1 reserved spot fee, but tin prime reserved seats beside them for up to 4 children connected nan aforesaid booking FREE OF CHARGE. This intends that parents travelling pinch children salary for only 1 (adult) reserved spot but salary thing for nan 4 different reserved seats for their children travelling pinch them.
This bogus CMA investigation is simply a grounded effort by nan Starmer Govt to dress it cares astir consumers erstwhile it has grounded to abolish APD which would instantly present little fares for each consumers and maturation for nan UK aviation, tourism and wider economy.
Ryanair looks guardant to disproving these mendacious CMA claims during this bogus investigation.
Ryanair's family spot policy
You tin spot Ryanair’s Family Seat Policy online here.
It explains that up to 4 under-12s successful a group tin get a reserved spot for free – arsenic agelong arsenic they’re pinch an big who has bought a reserved spot (for astir £8, nan CMA says).
The argumentation says:
double quotation markFor information reasons, children nether nan property of 12 must beryllium beside an accompanying adult, and infants (aged 8 days to 23 months inclusive) must beryllium connected an accompanying adult’s lap.
It is mandatory for an big travelling pinch children nether 12 (excl. infants) to reserve a seat. A maximum of 4 children for each 1 big connected nan aforesaid booking will person a reserved spot free of charge. This ensures parents of young children beryllium together during nan flight. This will besides let you to check-in for your formation 60 days earlier departure. It is not mandatory for immoderate different adults aliases teenagers successful nan booking to reserve a seat, nevertheless they whitethorn take to do truthful if they wish to spot pinch nan remainder of nan family.
Hayley Fletcher, nan CMA’s elder head of user protection, explains why nan regulator is concerned astir Ryanair’s pricing:
double quotation markLots of families prevention up to spend a summertime vacation and we cognize that other charges tin quickly bump up nan price.
Our investigation will see Ryanair’s attack to family spot reservations and really nan costs is presented to consumers to find whether they comply pinch user law.
For nan past year, we’ve told businesses to guarantee their customers are shown nan full value upfront – those who don’t look nan very existent anticipation of action from nan CMA.
Introduction: Ryanair's fees to spot parents pinch children nether investigation
Good morning, and invited to our rolling sum of business, nan financial markets and nan world economy.
Budget hose Ryanair is facing an investigation of nan charges that parents must salary to beryllium pinch their children connected flights.
Britain’s title authority is investigating whether Ryanair is imposing an unfair statement word nether user law, by insisting that parents (or so immoderate adult) salary £8 for a reserved seat, to guarantee that their children beryllium pinch them.
The CMA says this morning:
double quotation markRyanair’s position and conditions require astatine slightest 1 genitor to beryllium pinch their children aged 2-11 erstwhile they fly. This is done done what Ryanair calls a “mandatory family seat”, which nan genitor must salary for successful bid to unafraid a spot adjacent to them for their child.
For each different passengers, reserving a spot is optional. This interest applies to some outbound and return flights and typically costs astir £8 each way. CMA grounds suggests this attack to seating is utilized crossed nan mostly of Ryanair’s UK routes.
The investigation will examing whether parents are being unfairly charged for Ryanair to meet its kid information and disability‑related obligations arsenic group retired nether aviation rules.
The CMA suggests that Ryanair is nan only awesome hose flying retired of nan UK to enforce this charge; others will spot children pinch a genitor aliases guardian without nan request for a paid-for big spot reservation, aliases allocate seats together automatically for free during nan booking process.
The regulator will besides look into whether this is an illustration of ‘drip’ pricing, wherever other charges popular up during a booking process.
The agenda
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Noon BST: Turkey liking complaint decision
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1.15pm BST: European Central Bank liking complaint decision
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1.30pm BST: US play jobless claims
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1.45pm BST: European Central Bank property conference
