As it happened: Stocks shrug off stalling Iran peace talks; OBR warns Reeves June 2, 2026 Good morning and welcome back to the City AM liveblog. Markets were rocked yesterday after reports emerged from Iranian state media that Tehran was pulling out of peace talks with the US. A proposal that included a 60-day cessation of violence and a play to re-open the Strait of Hormuz has hung in the balance [...]
Replace Reeves if Starmer goes, voters tell Labour June 2, 2026 Rachel Reeves should be replaced as Chancellor if Sir Keir Starmer is ousted in a Labour leadership contest, the majority of voters believe. Reeves’ team had told newspapers that she should stay on in order to maintain some stability if Starmer were defeated by Wes Streeting, Andy Burnham or another Labour leader contender in a [...]
Brits back Blair’s growth calls – yet are squeamish over welfare cuts June 1, 2026 Most Britons back Tony Blair’s demands to prioritise cheaper energy over net zero and support the private sector to boost growth, yet are squeamish over slashing disability payments and reforming the triple lock pension, polling has shown. Following up on Tony Blair’s rallying call for potential Labour leadership contenders to focus on growth, City AM/Freshwater [...]
UK manufacturing survives Iran war impact June 1, 2026 The UK’s manufacturing sector appeared to survive the immediate impact of the Iran war in May, new data has suggested, as researchers suggested that production rose to a four-year high. S&P Global’s purchasing managers’ index (PMI) for the sector hit 53.9 in May, well above the neutrality figure of 50 and higher than April’s recording [...]
As it happened: FTSE 100 plunges as Iran pulls out of US peace talks; Mandelson files released June 1, 2026 Good morning and welcome back to the City AM liveblog. Oil has nudged a touch higher to $93 per barrel this morning as uncertainty continues to cloud any prospect of a peace deal in the Middle East. The latest peace proposal between the US and Iran was said last week to be awaiting on the [...]
Bank of England’s Bailey: Interest rates hike may not be needed May 29, 2026 The Bank of England may not raise interest rates in response to the Iran war and has already effectively tightened monetary policy by taking the prospect of future rate cuts off the table, governor Andrew Bailey has said. In a speech in Iceland, the central banking chief said that inflation is “likely to go higher” [...]
Reeves’ savings package to have minimal impact on inflation rise May 29, 2026 A discount campaign launched by Chancellor Rachel Reeves will “shave off” an expected rise in inflation, analysis has suggested, as economists have raised concern over Britons’ inflation expectations. Reeves’ move to delay a hike in fuel duty beyond September and offer VAT relief for businesses giving families reduced prices could strip 0.2 percentage points off [...]
Natwest and Barclays sweeten mortgage costs as Iran peace hopes ease interest rate fears May 29, 2026 Natwest and Barclays have become the latest lenders to sweeten up their mortgage deals, as hopes remain high that a peace deal will be reached in the Middle East that would bring calm to the interest rate environment. Both lenders have unveiled reductions in mortgage rates, with Barclays cutting its rates across the board by [...]
Top banks urge Rachel Reeves to expand small business lending scheme May 29, 2026 Top UK banks are lobbying Rachel Reeves to beef up the government’s small business lending scheme in a bid to unlock more capital to be lent to firms. A letter penned by UK Finance – the banking industry body that represents the likes of Barclays, Lloyds and Natwest – has called for the Chancellor to [...]
As it happened: Stocks rise on Iran peace hopes; Asda and Ocado deal May 29, 2026 Good morning and welcome back to the City AM liveblog. After investors kicked into sell-off mode on Thursday amidst spiking tensions as the US and Iran exchanged strikes, attention is quickly turning back to hopes of a peace deal this morning. US and Iranian negotiators are reported to have reached an agreement on a 60-day [...]