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Eurozone inflation surges to record high in fresh blow to Lagarde



Good morning. 

The owner of British Airways has swung back to a profit even as delays and cancellations sparked misery for British holidaymakers.

IAG posted an operating profit of €293m (£245m) in the three months to the end of June, up from a loss of almost €1bn in the same period last year and ahead of expectations.

The group has benefited from a rebound in demand after the pandemic, as well as higher ticket prices. But it’s also scrapped flights for thousands of passengers, who’ve often faced lengthy delays at airports due to understaffing.

IAG said a cap on passenger numbers at Heathrow would limit capacity to 80pc of pre-Covid levels over the summer and 85pc in the fourth quarter – a reduction of 5pc compared to previous guidance.

5 things to start your day 

1) Defence companies re-energised by war in Ukraine  BAE Systems is expecting a flood of new orders from countries preparing for the return of industrial war 

2) Chinese fleet of ‘dark’ oil tankers takes on Russian crude at sea  Ships are reportedly turning off their tracking signals to transfer Russian oil in the mid-Atlantic 

3) Amazon warns of hiring slowdown after second consecutive loss  Jeff Bezos’s fortune rises by $14bn as shares jump 

4) No new homes in West London as electricity grid runs out of capacity  Housebuilders have been told it could take until 2035 to get new developments hooked up to the electricity network

5) Lord Cruddas’ wealth drops by £100m as CMC crashes 20pc  The company says a weak pound and unfavourable exchange rates are to blame

What happened overnight 

Asian stocks took their cue from a late rally on Wall Street, as markets focused on a possible slowdown in the pace of rate hikes rather than a US recession after data showed its economy shrinking for a second straight quarter.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4pc. Japan’s Nikkei share average opened up 0.4pc, while the Seoul index and Australia’s index opened up 0.75pc and 0.76pc respectively.

China did not mention its full-year GDP growth target after a high-level Communist Party meeting and said instead it will try hard to achieve the best possible results for the economy this year.

Coming up today

  • Corporate: AstraZeneca, Croda International, IMI, IAG, Intertek, Jupiter Fund Management, Morgan Advanced Materials, NatWest, Rightmove, Standard Chartered (interims); Glencore (trading update)
  • Economics: GDP (EU), inflation (EU), core personal consumption expenditures (US), Chicago PMI (US), Michigan consumer sentiment (US), Nationwide house price index (UK)





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