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Summary

  1. Pound rises above $1.29 against US dollar
  2. FTSE 100 hits 11-month high; S&P 500 rises to record level
  3. Farnborough Airshow closes early amid heavy rainfall
  4. Burberry hires new chief executive
  5. Boeing in £3bn UK plane sale

Live Reporting

By Dan Macadam

All times stated are UK

Get involved

Good night!

That's all from the BBC Business Live page for today. Join us again on Tuesday for Mark Carney's appearance before MPs, where he'll be discussing the Bank's financial stability report and its plans to steady the UK economy.

Pound holds its ground

Pound coins and notes
PA

One final look at the currency markets shows that the pound is still slightly higher against the dollar after Theresa May was confirmed as the next Prime Minister.

Sterling was 0.3% higher against the dollar a short while ago at $1.2992, with analysts saying markets had reacted positively to Mrs May's swift coronation. 

However, it hasn't been able to stay above $1.30 as traders brace for a possible cut in interest rates from the Bank of England on Thursday. 

Against the euro, the pound was up 0.2% to €1.1743.

BreakingS&P finishes at record high

Wall Street bull
BBC

The S&P 500 has surged to a record high - finishing 7 points higher at 2,137.16 - as Wall Street brushed aside worries about the global economy. 

The tech-focused Nasdaq gained 0.8% to close at 4,988.64 - having briefly touched 5,000 points for the first time this year.

The Dow Jones Industrial Average, meanwhile, rose 80 points to 18,226.93.

May 'can't prevent Brexit recession'

Theresa May
AP

The Centre for European Reform, a pro-EU think tank, argues that Theresa May is unlikely to be able to avoid a recession as Prime Minister.

"Sterling has rallied at news that May will be PM. But Brexit will still lead to a recession," Christian Odendahl and John Springford say.

That's because investment will fall due to trade barriers with the EU and higher uncertainty, they say. 

The Conservatives would then need to make a "spectacular policy U-turn" if they wanted to boost public spending to counteract the decline in investment and consumption.

Fun and games

Technology reporter Dave Lee tweets...

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Tesla heads higher after 'top secret plan' hint

Tesla car
Getty Images

Tesla shares are on course for 4% gains as we head towards close of trading on Wall Street after its founder hinted at a new "top secret masterplan".

It would update the "masterplan" announced by Elon Musk in 2006 when he promised "an electric car without compromises".

In recent weeks the carmaker has come under pressure as US authorities investigate two crashes involving Tesla cars.

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Taylor Swift tops celebrity pay charts

Taylor Swift
BBC

Singer Taylor Swift was the highest earning celebrity over the past year with $170m (£130m), according to the Forbes Celebrity 100.

It's largely due to her massive 1989 World Tour, apparently, and sponsorship deals with Diet Coke and Apple. 

For those closely following the US pop star's career, she also came in ahead of two former flames. Boy band One Direction, which includes Harry Styles (who she dated in 2013), came in second with $110m; and her more recent ex, Calvin Harris, claimed the No. 21 spot with $63m. 

Firms back Women in Finance Charter

Woman at her trading desk
AFP/Getty Images

A pledge to promote gender diversity in financial jobs has been backed by 72 firms. Major UK banks such as Barclays, HSBC and Lloyds are among those which signed up to the government's Women in Finance Charter.

The charter commits companies to:

  • a senior executive who is accountable for gender diversity and inclusion; 
  • internal targets for gender diversity; 
  • publishing progress annually against these targets; 
  • an intention to link the pay of the senior executive team to delivering the targets.  

Droning on at Farnborough

Theo Leggett

BBC Business News Reporter

Cybersecurity is one of the big issues under scrutiny at the Farnborough Airshow - the biggest gathering of the year for the global aerospace and defence industry, which began on Monday.   

Cybersecurity is one of the big issues under scrutiny at the Farnborough airshow.

'Gaming tourism'

World Business Report

Dozens of people dressed up as Pokemon character Pikachu
Getty Images

The success of Pokemon Go - which has sent Nintendo shares soaring 20% - could see other businesses benefit from "gaming tourism", according to World Business Report.

The augmented-reality version of the classic Japanese game, which launched last week in the US, connects a player's real-world location to the game as they try to catch on-screen characters.

Wish list

Jason Hollands, managing director of wealth manager Tilney Bestinvest, lists what he'd like to see from the incoming Prime Minister.

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Growth forecasts cut

The European Commission has cut its forecasts for growth in the eurozone and the UK after the Brexit vote in early estimates announced on Monday. The fall in UK GDP will be about 1% to 2.5% by 2017, compared with a previous forecast of 1.8% to 1.9% growth for 2016 and 2017 respectively.

Eurozone growth is likely to fall between 0.2% and 0.5% by 2017 because of the referendum vote. 

On Friday, the IMF also cut its growth forecasts for the eurozone to 1.6% from 1.7% in 2016 and to 1.4% from 1.7% next year. 

May warning

Times economics editor Phil Aldrick tweets:

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Poison berries...

Speaking of Burberry, Telegraph retail correspondent Ashley Armstrong tweets:

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Unfortunate timing?

Christopher Bailey
Getty Images

Anusha Couttigane, senior analyst at Kantar Retail, comments on the reshuffle at Burberry:

While Christopher Bailey is still highly respected for his creative talents, these have been difficult challenges to face for someone with little experience leading a business in its totality. In many ways, Bailey has been the victim of unfortunate timing, taking on a dual role just when the market was beginning to encounter resistance on several fronts – a trial for which he was underprepared. Although he has had successes in new areas like the Beauty division, grappling with failures in Burberry’s core segments has left Bailey thinly spread, perhaps distracting him from the creative responsibilities at which he naturally excels."

Farm life

BBC business presenter Victoria Fritz is off to the Great Yorkshire Show to discuss the farming industry's plans for Brexit.

British farmers have called on the government to ensure they receive the same level of funding outside the EU.  

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Reality check

Adam Parsons puts the FTSE's rise to an 11-month high into context...

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Miners lead FTSE 100 gains

Iron ore mine
Reuters

Laith Khalaf, analyst at Hargreaves Lansdown, says the positive mood on the FTSE was helped by the emergence of Theresa May as Conservative party leader, as well as the expectation of a rate cut from the Bank of England on Thursday.

The role played by commodity stocks shouldn't be underestimated either, he says. 

The bounce has been led by a big recovery in mining stocks, and a boost from the falling pound which has augmented the Sterling value of the overseas earnings streams generated by many of the big blue chips. In terms of the miners, BHP Billiton and Rio Tinto are trading around 50% up on their February price, with Glencore doubling in price since 11th February."

18 days later...

Political editor Laura Kuenssberg tweets:

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Theresa May elected Conservative leader

Theresa May
Reuters

Theresa May has been elected as Conservative leader "with immediate effect" after the party's board officially agreed on the appointment.

David Cameron has said Mrs May will take over as Prime Minister on Wednesday evening.

The swift conclusion of the Conservative leadership contest - following the decision of Mrs May's rival Andrea Leadsom to step aside - has buoyed the markets and pushed the FTSE and sterling higher.

BreakingFTSE 100 closes at 11-month high

The FTSE 100 has risen 1.4% to finish the day on 6,682.86 - its highest level in 11 months. The blue-chip index topped highs last seen on August 11, 2015 - when it closed at 6,664.50 points.

Mining stocks and housebuilders were among the big winners. Shares in Anglo American led the way, rising 8.6%, while construction firms Travis Perkins, Barratt Developments, Persimmon and Taylor Wimpey all jumped more than 7%. 

What did you expect?

Financial Times economics editor Chris Giles despairs at the FSB's latest press release:

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Farnborough Airshow washout

Farnborough Airshow evacuation
PA

Paul Everitt, chief executive of ADS, which owns the Farnborough Airshow, says the site is now back under control after the event was closed early due to heavy rainfall.

"We've obviously had a difficult afternoon but our priority is the safety of exhibitors and visitors," Mr Everitt told the BBC.

The downpour in such a short space of time meant it was "unwise" to keep the show open, he said. Visitors were evacuated (pictured) and power was switched off in the exhibition halls as flooding led to safety risks.

"Tomorrow's another day and I'm sure we'll have a great day," he said.

Another one bites the dust...

Business Insider reporter Oscar Williams-Grut tweets:

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'Decent bounce'

The FTSE 250 is up more than 3% at 16,727 as we head towards the closing bell, hitting its highest levels since the EU referendum. 

Michael Hewson of CMC Markets writes...

Much has been made in recent days of how the FTSE 250 has underperformed the FTSE 100 which managed to leave its pre referendum peaks behind it within a week of the vote, but it also ignores that fact that since its all-time highs of 18,393 over a year ago the FTSE 250 is still only down less than 10%, a fairly decent performance given all the uncertainty about the UK’s economic future."

David Cameron to stand down on Wednesday

David Cameron
PA

Speaking outside Number 10, David Cameron has said he will leave Downing Street on Wednesday and that his successor as PM - Theresa May -  will have his full support. 

Political editor Laura Kuenssberg adds...

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'Plenty of headwinds' for sterling

BBC News Channel

Jeremy Stretch
BBC

Sterling shot up 1% against the dollar at one point following the news that the UK will not have a prolonged Prime Minister contest.   

But Jeremy Stretch, of G10 FX Strategy, says the pound hasn't been able to push on aggressively higher since that rebound.

Markets are still concerned about the underlying economic data, a possible interest rate cut, and the EU-UK negotiation process, he tells BBC News. "Still plenty of headwinds for sterling to push through," he says.

Grounded

Exhibition planes at the Farnborough Airshow
AFP/Getty Images

Rain has stopped play at the Farnborough Airshow. 

The event - which got underway this morning under some less threatening clouds (pictured) - has closed several hours early due to torrential downpours. 

The flying display was cancelled and exhibition halls were evacuated due to safety concerns over power and flooding, the BBC's Theo Leggett reports.

Calling first time buyers ...

BBC Business tweets

Pound rally runs out of steam

Bank of England mosaic floor with pound symbols
Reuters

The boost to the pound after Andrea Leadsom quit the Conservative leadership race - the "Leadsom leap" if you will - seems to have run out of momentum.

Sterling is now only 0.16% higher against the dollar at $1.2975, having earlier made back all its losses for the day and gone above $1.30.

Against the euro, it's up a touch at €1.1723. 

Nigel Green, chief executive of financial consultants deVere, said the markets have been weighed down by many unanswered questions since the Brexit vote.

"With Leadsom pulling out there is one less question mark," he said, as it clears the way for Theresa May to take over as Prime Minister. 

Swift coronation in 'everyone's interest'

George Osborne is in New York meeting with major investors in the first leg of a trade trip that will also take in Singapore and China in coming weeks.

He's been speaking to business correspondent Michelle Fleury about how quickly Theresa May should be confirmed as Prime Minister.

The Home Secretary was left as the only candidate after Andrea Leadsom withdrew earlier from the Conservative leadership contest. 

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S&P hits record high

New York Stock Exchange trader
Reuters

The S&P 500 has shot to its highest ever level as trading on Wall Street got off to a buoyant start.

Shortly after the opening bell, the S&P was at 2,138.79, about four points above the record set more than a year ago. 

The Dow Jones increased 0.5% to 18,244.43, while the tech-rich Nasdaq climbed 0.7% to 4,991.57. 

Analysts pointed to the election victory for Japanese Prime Minister Shinzo Abe and the after-effects of stronger-than-expected US jobs data from Friday.

China will 'always be the UK's friend'

From trenchcoats to aerospace - let's look back in at the Farnborough Airshow. Russell Hotten writes:

C919 aircraft
EPA

China has its biggest ever presence at the airshow. According to the organisers, Chinese companies have doubled the amount of space they've taken on the last event in 2014.

Maybe all that schmoozing done by Chancellor George Osborne over the last couple of years is about to pay off for the UK's aerospace and defence industry.

Despite Brexit, the UK will always have a friend in Beijing, says Xu Jin, a minister at China's embassy in London. "The British should not worry about China not being your friend after Brexit," he tells a conference.

So, they won't desert us when we leave the EU? "Never. This is never going to happen. China is always going to be your friend."

China's aerospace ambitions are huge, with plans for a rapid growth of manufacturing, airline expansion, and proposals to build 300 airports over the next two years. 

Last year, the state-run aircraft manufacture Comac unveiled its C919 airliner (pictured) as part of a strategy to challenge the Boeing-Airbus duopoly.

Bailey 'experiment' finished at Burberry

New York Times fashion critic Vanessa Friedman reflects on Burberry's decision to replace Christopher Bailey as chief executive, ending the two year strategy of having him both lead the company and serve as chief creative officer.

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Burberry shares, which have fallen 22% in the past 12 months, jumped more than 6% following the announcement.

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Burberry boss Bailey 'excited' about move

Christopher Bailey and Naomi Campbell
Getty Images

Christopher Bailey, who took a 75% pay cut last year amid Burberry's tumbling share price and profits, says he's "very excited" about working with new chief executive Marco Gobbetti.

Mr Bailey, who will move from chief executive to president, says he is looking forward to working with Mr Gobbetti as a "partner".

"On a personal level, I know that we are going to enjoy a wonderfully collaborative partnership that makes me very excited for our future at Burberry," said Mr Bailey, who has been at Burberry for 15 years and chief executive for two of those.

BreakingBurberry appoints new boss

Burberry store
Reuters

British fashion house Burberry has hired Marco Gobbetti from French luxury brand Céline to take over as chief executive.

Current Burberry boss Christopher Bailey will move to the role of president and keep his chief creative officer position.

Burberry shares jumped 6.4% on the news. 

FTSE 250 jumps

It's not only the pound which has done well today. The FTSE 250 index - which is a better barometer of UK businesses than the more international FTSE 100 - is 2.7% higher at 16,613 points.

Property stocks are leading the way. Property investment firms St Modwen and F&C Commercial Property Trust have gained 10% and 8% respectively.

Shares in house builders Crest Nicholson and McCarthy & Stone are also up more than 7%.

It follows heavy losses for property stocks last week as £18bn in real estate funds was frozen by fund managers.

Investor guru Justin Urquhart Stewart thinks there might also be a boost from Andrea Leadsom quitting the Prime Minister race in there too...

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May's economic medicine

Kamal Ahmed

Economics editor

In her speech this morning - which has now taken on far more weight given that she is just about ready to measure the curtains for Number 10 - Theresa May laid out a set of policies that bring together two strands of thinking and two personalities who would not have been overly comfortable in each other's company - Ed Miliband and Margaret Thatcher.  

Read more of Kamal's blog here.

Theresa May PM prospect 'brings clarity'

Theresa May
PA

Danny Cox, analyst at Hargreaves Lansdown, reflects on why the pound got a boost from Andrea Leadsom pulling out of the race for Conservative leader and Prime Minister, leaving Home Secretary Theresa May as the only candidate.

Markets will be hopeful that the prospect of Theresa May becoming Prime Minister will soon bring some clarity to the UK political landscape as well as a more conciliatory approach towards Europe. The pound has also overturned its losses against the US dollar despite expectations the Bank of England could lower interest rates as soon as Thursday.”

Rail services cut

Southern train on track
Getty Images

Hundreds of Southern rail services have been axed under an amended timetable in response to months of disruption.

Parent firm Govia Thameslink (GTR) said the "more reliable" timetable, with 341 fewer daily services, would operate on week days "for the foreseeable future".

The new schedule faced early disruption when power cable issues caused cancellations or delays between East Croydon and London Victoria.

A passenger demonstration will take place at Victoria Station later.

Alex Prosser-Snelling, one of the organisers of the demonstration, said: "We aren't people who protest normally, but everyone's fed up of the service." Read more here