The UK’s competition watchdog appears to have scored a victory against Ryanair. over the airline’s policy of charging parents to sit with their children on flights.
Ryanair has announced a “minor policy tweak” means “free parent seats” will be available in the rear of its aircraft for future bookings.
The move comes two weeks after the Competition. Markets Authority (CMA) announced it was investigating the £8 mandatory fee Ryanair charges a parent to sit with their children.
The CMA said the Irish carrier’s terms. conditions require at least one parent to sit with their children, including those with disabilities, and bills them about £8 a flight to book a seat. Its investigation would examine whether this was a breach of consumer law. if passengers weren’t being shown the total price of their flight upfront.
Ryanair had previously criticised the “bogus investigation”, saying it looked forward to disproving the CMA’s “false” claims”.
The airline said that “like all adults who select a reserved seat, adults travelling with children pay one reserved seat fee,. can select reserved seats beside them for up to four children on the same booking FREE OF CHARGE”.
The oil price is on the rise again. following a report that Iran is pushing to make billions of dollars from tolls for access to the strait of Hormuz.
The Wall Street Journal are reporting. Tehran is positioning itself to manage the global oil artery it severed at the start of the war.
double quotation mark The Islamic Republic estimates that charging for security, safety. environmental services in the strait would bring in $40 billion a year in revenue for states involved, according to officials familiar with the matter. The idea, if implemented, would bring Tehran cash flow and control that it didn’t command before the war.
The regime is looking to models around the world, including the Dardanelles, the officials said, where Turkey charges ships a tax known as the gold franc for passage to. from the Aegean Sea through the international waterway.
To get buy-in, Tehran is pitching the idea to the wider Middle East. as far afield as Beijing, according to Iranian officials. It wants its Persian Gulf neighbors to be part of the agreement and share the revenue, they said.
That might irk Donald Trump. who has previously warned that tolls on ships sailing in the Strait of Hormuz would be a red line issue for the US in negotiations with Iran.
Brent crude, which fell as low as $72.06 a barrel. earlier today (below its level at the start of the war) has now risen to $74.63 a barrel.
The RAC are hoping that the recent drop in the oil price should lead to lower fuel prices for motorists.
However, prices aren’t expected to hit pre-Iran war levels soon.
RAC head of policy Simon Williams says:
double quotation mark “On the back of the lowest oil price since before the Iran war started. drivers should see the average price of petrol fall below 150p in the next week or so. If this happens, unleaded will be at its lowest price since 26 March.
“Diesel. having dropped below 170p today for the first time since 22 March as shown in the Government’s Fuel Finder data, ought to go back under 160p. We urge retailers to pass on the savings they’re benefitting on the wholesale market to drivers straightaway.
“Before the war began we had an oil price of $70 which translated to an average petrol price of 132p. 141p for diesel.”
The race to succeed Jamie Dimon at the head of JP Morgan has taken a twist.
Dimon has elevated two senior executives at the bank, Doug Petno. Troy Rohrbaugh, to become co-presidents of JPMorgan Chase, while a leading female succession candidate is leaving the company.
They were previously co-CEOs of the Commercial & Investment Bank (CIB); now, Petno will become sole CEO of the CIB,. Rohrbaugh will become CEO of Consumer and Community Banking (“CCB”).
double quotation mark “The changes announced today mark an important step in our Board’s thoughtful process around succession planning. development of our top leaders.
We are fortunate to have in place an exceptional group of senior leaders, not only at our Operating Committee level but across our organization,. I’ve never been more excited about the future of JPMorganChase.”
CCB. which is JP Morgan’s consumer division, had been run by Marianne Lake, who JP Morgan says “has decided to retire from the company after more than 25 years of outstanding service”
double quotation mark “Marianne Lake has served our company with distinction for more than 25 years as head of CCB, Chief Financial Officer, a member of the Operating Committee. other key roles. She has been an outstanding partner. friend and has dedicated her career to championing our people and customers, building world-class businesses and delivering results, always with unquestioned integrity. We will miss her and wish her all the best in the future.”
European markets are also rallying, pushing the pan-European Stoxx 600 index to a new intraday record high.
The Stoxx 600 is up just over 1% today to 641.74 points.
The Dow Jones Industrial Average has just a record high, despite the drag from Apple’s falling share price.
The DJIA is up 1.5% or around 800 points to 52,649 points this morning in New York.
Construction equipment maker Caterpillar is the top riser. up 5.5%, followed by conglomerate Honeywell International (+3.8%), as the fall in the oil price in recent days cheers investors.
Shares in Apple have fallen in early trading on Wall Street. after it announced price hikes due to the rising price of chips.
The tech giant is lifting the price of Macs. iPads, passing on the cost jump in memory chips and storage to consumers.
Reuters has the details:
double quotation mark The company is increasing prices of the MacBook Neo, MacBook Pro, MacBook Air, iPad Air. iPad Pro, according to changes posted to its online retail store. The starting price of the MacBook Neo. its latest laptop, is rising to $699 from $599, while the MacBook Air is increasing to $1,299 from $1,099.
The entry-level 14-inch MacBook Pro is moving to $1,999 from $1,699. while the 11-inch iPad Pro is increasing to $1,199 from $999. The iPad Air, a mid-tier tablet, is now priced at $749, up from $599.
Apple’s shares have dropped almost 5%.
The governor of the Bank of England has welcomed the easing tensions in the Middle East. have pulled down oil price to pre-Iran war levels.
Speaking to The Shetland Times, on a trip to the Scottish islands, Andrew Bailey said:
double quotation mark “There were comments from the US. it would be over any day soon - they were going on for a month almost.
But it does look like a truce has broken out. And what’s interesting is that, particularly this week, there’s quite a sharp fall in energy prices.”
Back at the BCC’s annual conference in London. Nick Thomas-Symonds, minister for European relations, has said the government was working hard to forge closer relations with the EU.
However. Thomas-Symonds, who is a close ally of Keir Starmer, was told by US manufacturer 3M that speed was needed to prevent jobs being put at risk in the UK.
Becky Wirth. head of government relations at 3M UK, said the firm had three manufacturing sites in the UK, among them a factory making safety masks in the north east, which would be badly affected by the failure to secure a closer agreement with the EU Commission.
She said it was “a real shame” the UK-EU summit had been delayed, explaining:
double quotation mark “It’s understandable but it comes at a time when we really need to move things along faster”.
Much of the production from the factory in the north east is exported to the EU. so the “made in EU” concept will be a blow, she said.
The EU is stockpiling masks for a future pandemic but 3M products made in the UK are excluded, she said.
double quotation mark “We are big supporters of both sides working together so the UK can become a trusted partner.”
“There are lots of opportunities for the UK and EU to work more closely together.
The deal that’s done with the EU will have a real impact on us. on jobs and economic progress in the north east.”
Madelaine Tuininga, the EU Commission’s head of trade and sustainable development. said the EC had been “engaging in an accelerating way in securing trade agreements with other countries.”
She said there was extremely close cooperation between the UK and the 27 member trading bloc, especially on security issues.
But high level cooperation appears to mask a disconnect at the company level.
“There are limitations on either side,” she said.
The CMA has noted Ryanair’s changes to its seating policy, but isn’t abandoning its investigation.
A CMA spokesperson said:
double quotation mark “Ryanair claims its seating policy now complies with the law, and we’ll test that thoroughly.
“If true, it’s a win for families – who will no longer have to pay to sit with their children –. it shows the impact our new powers are having.
“But it doesn’t change the fact families have been paying for ‘mandatory family seats’. Our investigation remains ongoing.”
Here’s Heather Long. chief economist at Navy Federal Credit Union, on the rise in US PCE inflation to a three-year high:
double quotation mark “Inflation is at a 3-year high due to the war in Iran. it’s painful for middle-class and moderate-income Americans. People are spending more on gas, along with healthcare and utilities. New Fed Chair Kevin Warsh has made his commitment clear to bring inflation down. The key will be how much relief happens by September.
A key measure of US inflation has hit its highest level since April 2023. as US consumers are hit by a cost of living squeeze.
The PCE price index increased by 4.1% year-on-year in May, up from 3.8% in April.
Nic Puckrin, a former Goldman Sachs analyst, explains why this could encourage the Federal Reserve to lift US interest rates:
double quotation mark “The Fed’s preferred inflation gauge is flashing red. At 4.1%, it’s the hottest reading in over two years. That’s an uncomfortable number for anyone with a mortgage or credit card balance. because it reduces the chances the newly hawkish Fed will backtrack from its intentions to raise rates this year rather than cut them.
There is one reason not to panic, though. Today’s figure doesn’t yet capture the recent fall in oil prices, which was a big driver of inflation coming back. If next month’s reading drops sharply, the pressure to lift rates could ease as quickly as it built. New Fed chair Kevin Warsh is also looking at faster. real-time ways of tracking inflation, some of which suggest prices may be cooling more than the official figures show.
For households, the message for now is to plan as though borrowing is about to get more expensive. But it’s worth watching next month’s inflation data closely, because the picture could still change fast.”
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