Stock Market Impact: FTSE 100 slipped 0.4%; sterling fell 0.3% to $1.3418; European indices DAX down 1.2% and CAC 40 down 0.7%.
Listed Companies and Sectors: DiscoverIE posted record adjusted pre‑tax profit of £51.9 m for the year to March 2026, reversing an 18‑month destocking decline; B&M reported a 37.5% collapse in adjusted pre‑tax profit to £284 m, EBITDA down 25.9% to £459 m despite 3.6% revenue growth to £5.78 bn; Debenhams Group returned to sales growth in Q1‑May 2026 with GMV up 0.5% and May trading accelerating to ~8%; Currys appointed Fredrik Tønnesen as Group CEO effective 3 Aug 2026, replacing Alex Baldock; UK CMA ordered Google to give publishers control over AI use of their content and require clear attribution in AI‑generated search results; Howdens shares rose after announcing acquisition of DIY Kitchens, with analysts expecting earnings boost.
Investment Flows: U.S. Trade Representative proposed 12.5% duties on goods from 54 economies—including the UK, China and Japan—with a reduced 10% rate for the EU and Canada; hearings scheduled for 7 July.
Interest Rates, Inflation, and Liquidity: S&P Global UK Services PMI fell to 49.3 in May from 52.7 in April, first contraction since April 2025; Composite PMI dropped to 49.7; input‑cost inflation remained at its highest level since the 2022 energy crisis.
Fiscal or Monetary Policy: No direct fiscal or monetary actions reported; trade policy measures (duties) and geopolitical risk influencing oil markets were highlighted.
Commodity Prices: Brent crude rose 2.3% to $98.24 per barrel and WTI rose 2.6% to $96.15 per barrel.
Geopolitical Events: Iran struck Kuwait International Airport, killing 1 and wounding at least 63; Kuwait defence engaged 13 ballistic missiles and 17 drones, suspending then resuming Kuwait Airways flights from Terminal 4; Bahrain intercepted three Iranian missiles and several drones; U.S. Central Command reported all Iranian attacks on U.S. forces failed and confirmed retaliatory strikes on an Iranian ground‑control station on Qeshm Island; six vessels have been disabled under the U.S. blockade with 122 redirected.
Automotive Sector: UK new car registrations rose 6% YoY in May, with electric vehicles accounting for 27% of all new registrations.
