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Introduction: EU transport chief confirms no jet fuel shortage amid price rise

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

As summer nears, holidaymakers have grown concerned that the Middle East crisis could cause airlines to run short of fuel.

Yet despite limited progress reopening the strait of Hormuz, the European Union transport chief has stated there are no indications of jet fuel shortages in Europe over the next few months.

Transport commissioner Apostolos Tzitzikostas told Reuters:

“There is currently no jet fuel shortage in Europe. We have no signs that we will have a shortage in the coming period.”

Tzitzikostas noted that elevated jet fuel prices have led airlines to drop unprofitable routes, an instance of demand reduction from high energy expenses, saying:

“This is why we see that some airlines are choosing to cancel some of their routes that did not make any economic sense.”

In May, carriers removed two million seats from timetables, equating to under 2 percent of worldwide aviation capacity.

Looking ahead, Tzitzikostas indicated conditions could turn very difficult by year end if Middle Eastern supplies stay disrupted.

“It is critical that the war stops and that the Strait of Hormuz opens and this needs to happen as soon as possible. We should always keep in mind that Europe is prepared. We have the emergency stocks in our member states.”
“For the time being, there is a certain degree of stability.”

Back in April, the head of the International Energy Agency warned Europe had only six weeks of jet fuel remaining before shortages would occur.

Seven weeks later, flights persist, as Tzitzikostas observes, yet airlines have increased fares to cover higher fuel expenses and also to reduce demand.

The agenda

7am BST: Halifax UK house price index for May
8.30am BST: UN FAO Food Price Index
1.30pm BST: US non-farm payroll jobs report for May

Key events

4m ago UN: food prices stable in May
1h ago Raspberry Pi shares hit record high after profit upgrade
2h ago South Korea KOSPI index tumbles 5 percent
2h ago William Hill owner to be taken over
2h ago UK house prices dip for third month running
2h ago UK shoppers return to high street
2h ago Introduction: EU transport chief confirms no jet fuel shortage amid price rise

UN: food prices stable in May

After climbing in recent months, global food commodity prices levelled off in May.

The UN Food and Agriculture Organisation reported its Food Price Index held steady last month, with the cost of a basket of food commodities easing 0.2 percent in May.

Some notable price increases occurred. The Sugar Price Index climbed 7.5 percent in the month, attributed to concerns supplies may tighten soon. Cereal prices rose 2.6 percent, due to expectations of weak harvests in major exporters including the US, plus higher fuel and fertilizer costs.

Meat prices stayed largely unchanged, while vegetable oil and dairy prices declined in the month.

The increase in jet fuel costs has led American Airlines to join carriers temporarily cutting routes.

On Wednesday, American informed CBS News it has adjusted schedules for select routes in August and September because of elevated fuel costs.

The routes affected include flights from Los Angeles to Cleveland, Columbus, Pittsburgh, and Washington Dulles, and from Charlotte to Ontario, and to Sacramento.

Raspberry Pi shares hit record high after profit upgrade

Shares in UK low-cost computer firm Raspberry Pi reached a record high after it raised its profit forecasts this morning.

Raspberry Pi shares climbed 14 percent to 937p, their highest level since the Cambridge-based company listed on the London stock market in 2024.

Raspberry Pi informed the City that trading in the first half of this year has been robust, with profitability materially ahead of the first half of 2025, and that it has been reducing stockpiles of memory chips before prices rose this year.

It told shareholders:

Performance has been supported by continued growth in unit volumes, a favourable product mix, and the ongoing utilisation of low-density DRAM inventory accumulated throughout FY 2025.

It added that earnings this year are on track to be significantly ahead of current market expectations.

Demand for Raspberry Pi computers increased this year after technology experts determined they were suitable to run the OpenClaw AI chatbot.

The oil price is little changed this morning, with Brent crude trading around 95 dollars a barrel.

Susannah Streeter, chief investment strategist at Wealth Club, says:

On the geopolitical front, conflicting messages from both Iran and the US have seen sentiment turn erratic. For now, oil prices are managing to stabilise around 95 dollars a barrel, in the absence of a big reignition in the US military campaign.
But there remain big questions about how negotiations can meaningfully progress, especially with Israel actions in Lebanon such a sticking point. Hezbollah rejected proposals for a ceasefire, and although there are now reports it is seeking fresh talks with the US, this will be a highly complex situation to resolve.
The US military action in Iran has opened a can of worms, with a slippery mix of geopolitical tensions escaping diplomatic attempts at containment, and threatening to unsettle markets further.

South Korea KOSPI index tumbles 5 percent

Sentiment in risk markets across Asia has soured today, as investors worry that the rally in technology stocks may be stalling.

South Korea KOSPI share index has dropped 5 percent today, trimming its gains in 2026 to around 90 percent, as a drop in chip shares on Wall Street yesterday ripples across markets.

Chris Weston, head of research at Pepperstone, says:

Questions are being asked more intently about whether some of the blockbuster trades of 2026 have had their time in the sun and are due for consolidation, and whether this modest pullback could evolve into something more pronounced.

A second takeover battle has ended without success for the pursuer.

US-based Apollo Global Management has said it does not intend to make a firm offer for British thermal processing services company Bodycote, following talks between the two sides.

William Hill owner to be taken over

There is a little takeover drama in the City of London this morning: the company behind bookmaker William Hill is being acquired.

Evoke has agreed to be taken over by US casino operator Ballys Intralot, in a deal which values Evoke at 243.1 million pounds.

Ballys Intralot says the deal will create a global gaming and lottery champion, with significant scale and relevance in Europe largest and most attractive gaming jurisdictions.

The two sides have been talking for weeks, and Ballys Intralot had been given a deadline of 5pm next Monday to reach a deal or walk away.

UK house prices dip for third month running

UK house prices have dipped again, as the jump in borrowing costs since the Middle East conflict began hits demand.

Lender Halifax has reported that house prices edged down 0.1 percent in May, the third monthly drop in a row after a 0.5 percent fall in March, and a 0.1 percent drop in April.

That pulled the average price, on Halifax index, down to 298806 pounds, from 299251 pounds in April.

On an annual basis, prices were 0.5 percent higher than in May 2025.

Amanda Bryden, head of mortgages at Halifax, says:

Property price trends continue to reflect the uncertainty linked to developments in the Middle East. Despite recent cuts to mortgage rates, higher inflation expectations have kept borrowing costs above the level seen at the start of the year, continuing to stretch affordability for many buyers and temper demand.
Even so, overall activity has held up well, reflecting the underlying resilience of the UK housing market. Latest industry figures show transaction levels remain relatively stable, suggesting buyers and sellers are still moving.

UK shoppers return to high street

Phillip Inman

Greater numbers of UK consumers went shopping last month as spring sunshine brought welcome relief to retailers, which have faced a squeeze on spending since the US-Israel war on Iran.

Figures from the British Retail Consortium and a separate survey by the accountancy firm BDO showed a bounce-back in footfall during May, reversing a sharp decline in April.

The recovery coincided with consumer confidence surveys showing a rise in May as shoppers began to get over the sharp rise in petrol and diesel prices linked to the Middle East conflict, which began in late February.