Summary

  • FTSE 100 falls 0.25% but FTSE 250 ends higher

  • Pound jumps against dollar and euro

  • Bank of England holds interest rates at 0.5%

  • Theresa May shakes up Business Department

Live Reporting

Dan Macadam

  1. Onward and upward?

    Chris Johnston
    Business reporter

    Boris JohnsonGetty Images

    New Foreign Secretary Boris Johnson said that although Britain had voted to leave the European Union, it could play an even greater role in Europe - a view he said was shared by the United States. 

    "There's a massive difference between leaving the EU and our relations with Europe, which if anything I think are going to be intensified," he said. 

    "I was very pleased to receive a phone call from Secretary [John] Kerry of the United States, who totally agreed with that analysis. His view was that post-Brexit and after the negotiations what he really wants to see ... was more Britain abroad, a greater global profile." 

  2. Game over

    A word of warning from police as the Pokemon Go craze hits the UK...

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  3. US Treasury Secretary meets Chancellor Hammond

    Philip Hammond meets Jack Lew outside Number 11 Downing StreetEPA

    US Treasury Secretary Jacob Lew has met with new Chancellor Philip Hammond in Downing Street.

    Mr Lew noted it's "an important period of change" for Britain, and said the US remained fully committed to maintaining strong, historic ties both with the UK and the EU, according to a statement. 

    He also repeated the message he gave to EU ministers earlier this week that both sides should aim for "smooth, pragmatic, and transparent" separation talks.

  4. Gauke promoted to Chief Treasury Secretary

    David GaukeGetty Images

    David Gauke, a Treasury minister, has been promoted to Chief Secretary to the Treasury.

    The role is often seen as the number 2 to the Chancellor of the Exchequer. He replaces Greg Hands who tweeted congratulations to his former colleague.

  5. Bayer raises offer for agriculture giant Monsanto

    Monsanto company signGetty Images

    German chemicals behemoth Bayer has raised its offer to take over US seeds and pesticides maker Monsanto. 

    Monsanto rejected a $62bn bid from Bayer in May. Bayer is now offering $125 per share, up from $122, and a $1.5bn fee if the deal breaks down.

  6. FTSE 100 ends lower after rates decision
    Breaking

    FTSE 100 Index

    The FTSE 100 finished the day lower after the Bank of England's decision to hold interest rates.

    The blue-chip index hit a buoyant 6,743.42 points in morning trade before dropping sharply when the Bank's decision was released at midday.

    After making back some ground, it then dropped again in the final half hour to close 0.2%, or 16 points, lower at 6,654 points.

  7. Energy abolition 'raises urgent questions'

    Cottam Power StationGetty Images

    However, not everyone is happy to see energy policy being rolled into the Business Department.

    Angus MacNeil, chairman of the energy committee in parliament, said he was "astonished" at the Prime Minister's decision to abolish the standalone Department for Energy and Climate Change (DECC). He said...

    DECC’s disappearance raises urgent questions. To whom falls the central statutory obligation, contained in the Climate Change Act 2008, to reduce the UK’s carbon emissions by 80% from their 1990 baseline? Which Department will take responsibility for the energy and climate aspects of negotiations to leave the EU? Who will champion decarbonisation in Cabinet? Who will drive innovation in the energy sector?"

  8. Clark embraces new-look Business Department

    Greg Clark leaves 10 Downing StreetReuters

    I am thrilled to have been appointed to lead this new department charged with delivering a comprehensive industrial strategy, leading Government’s relationship with business, furthering our world-class science base, delivering affordable, clean energy and tackling climate change.”

    Greg Clark, Secretary of State for Business, Energy and Industrial Strategy

  9. ECB will 'buy some time'

    European Central BankReuters

    Analysts at ING have tipped the European Central Bank to take a similar approach to the Bank of England and "keep its powder dry" at a key meeting next week.

    There has been some speculation the ECB will pump more money into the eurozone to help support the economy in the wake of the UK's referendum vote. 

    Obviously, next week’s ECB meeting will be dominated by the Brexit vote. However, as the meeting comes too late for any imminent ECB action to calm markets but also too early to have a real view on the short-term economic damage, we believe the ECB will simply try to buy some time by sounding dovish. Any real action will likely not happen before September."

    Carsten Brzeski, ING economist

  10. Qatar buys stake in Italian airline

    Akbar Al Baker (left) and Marco RigottiQatar Airways

    Cash-rich Qatar Airways continues to expand its network of airline investments across the world. Qatar, one of the Middle East's biggest carriers, has announced a deal to buy 49% of Italy's second largest operator, Meridiana.

    Qatar's chief executive Akbar Al Baker (left) sealed the deal today at the Farnborough Airshow with Marco Rigotti, chairman of Meridiana's parent company Alisarda.

    On Tuesday, Qatar announced it was buying 10% of South America's largest airline, Latam. The Middle East carrier already holds 15.24% of IAG, which owns British Airways and Spain's Iberia.

  11. The cabinet reshuffle in memes

    Theresa May GIF

    Here's how the reshuffle is panning out in the land of online banter.

    The cabinet reshuffle in memes

    Here's how the reshuffle is panning out in the land of online banter.

    Read More

  12. Manufacturers back Biz change

    EEF, the manufacturers' organisation, has supported Theresa May's decision to roll Business, Energy and Industrial Strategy together into a new-look department.

    This is a welcome move and demonstrates a new, serious purpose to this Government reflective of the times. Now that energy and business policy are merged, we have the makings of an industrial strategy that will focus on UK competitiveness and will provide support to our sector as it seeks to overcome the challenges and seize opportunities from the decision to leave the EU.

    Terry Scuoler, EEF chief executive

  13. Rate cut 'a matter of time'

    Pile of pound coinsGetty Images

    Meanwhile, analysts at French bank BNP Paribas think the Bank's decision simply delays an interest rate cut, or some fresh quantitative easing, until the next meeting on 4 August.

    "We do not expect sterling to rally much further following the BoE’s decision to leave rates unchanged," Sam Lynton-Brown at BNP Paribas says. 

    "We continue to think that the BoE easing is only a matter of time."

    BNP believes the Bank's moves will see the pound fall back to $1.28.

    A short while ago, sterling was 1.5% higher against the dollar at $1.3342.

  14. 'Wise' Carney

    Some wisdom from Connor Campbell, financial analyst at Spreadex, on the Bank of England's decision to hold rates.

    Given that Theresa May is still without a fully-appointed cabinet, and the fact that the actual referendum happened barely three weeks ago ... the Bank of England’s decision not to set the cat among the already flustered pigeons was probably wise. Some may criticise Mark Carney for teasing action in the aftermath of the referendum only to once again go back on his pseudo-promises ... but there seems to be a relative consensus in the City that a lack of rash, relatively uninformed decision-making was wise."

  15. Coach collapse costs 300 jobs

    GHA CoachesGHA Coaches

    Back in the real world for a moment, more than 300 people in Wales risk losing their jobs after a bus company went into administration.

    Ruabon-based GHA Coaches employed 320 people and operated 230 vehicles on school and bus routes across north Wales, Cheshire and Shropshire.

    Its closure has caused major disruption for passengers.

    Jason Bell of administrators Grant Thornton said: "We will explore all options in terms of bringing any part of the business back to life."

    The company recently received a winding-up petition from HMRC in respect of unpaid taxes.

    Read more here.

  16. Bradley gets Culture Sec

    Karen BradleyGetty Images

    Karen Bradley, a former Home Office minister, has been appointed Secretary of State for Culture, Media and Sport, Downing Street said.  

    John Whittingdale was sacked from the position this morning.

  17. BIS becomes BEIS

    At the start of the day there were rumours flying around that the Department for Business, Skills and Innovation (BIS) was for the scrapheap. The speculation only got stronger when the "Skills" bit was moved to the Education Department.

    However, the new Prime Minister has kept the Business department, and instead added "Energy" (which used to be its own ministry) along with the idea of "Industrial Strategy", giving us BEIS.

    The Guardian's Graham Ruddick tweets:  

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  18. Greg Clark becomes Business Secretary
    Breaking

    Greg ClarkGetty Images

    Greg Clark is the new Secretary of State for Business, Energy and Industrial Strategy.

    He's swapping with Sajid Javid, who goes the other way to the department for Communities and Local Government.

    Reports had suggested the Business Department would be axed, along with Energy; but the new Prime Minister has bundled them together instead.

  19. US market update

    A quick check on the US markets - which have been pretty cheery in the opening hour or so. Gains in banking stocks are seeing them add to already record-high levels. 

    The Dow Jones has gained 0.8% to 18,516.65.

    The S&P 500 is up 0.7% to 2,167.86.

    The Nasdaq is 0.8% higher at 5,037.96.

  20. Javid sidelined
    Breaking

    Sajid JavidGetty Images

    Sajid Javid has been demoted from business secretary to take a less prominent role as Secretary of State for Communities and Local Government.