Good morning! Here’s what you need to know.
1. Sterling surged to its highest in a week against the euro on Thursday after three members of the Bank of England’s monetary policy committee surprised financial markets by voting for a rise in interest rates. The pound also leapt a full cent to $US1.2795 after it emerged that Ian McCafferty and Michael Saunders had voted with existing policy hawk Kristin Forbes for higher rates.
2. A technological failure which stranded tens of thousands of British Airways passengers in May will cost the company around £80 million ($US102.19 million), Willie Walsh, the company’s chief executive, said. The figure was an initial estimate, Walsh told at the company’s annual shareholders meeting in Madrid.
3. Anglo American’s diamond unit De Beers launched the world’s largest diamond exploration vessel off the coast of Namibia as it looks to maintain high production levels until 2035. The 12,000-tonne, 113-metre-long SS Nujoma was built at a cost of $US157 million and is named after Sam Nujoma, Namibia’s founding president.
4. A few large Asian, European and US banks are providing funds to help to keep Qatari banks running smoothly after a diplomatic rift has strangled financing from the Gulf states, Reuters reported. The foreign banks’ support is critical for Qatari banks, whose reliance on international funding has grown sharply over the years to about $US50 billion as of April.
5. Britain and the European Union will get Brexit negotiations underway on Monday as initially planned, the government has confirmed. The UK government’s Brexit Secretary David Davis and the EU’s chief Brexit negotiator, Michel Barnier, agreed on Thursday that official divorce talks will begin Monday, June 19.
6. The UK will stop providing politicians and officials early access to its data releases after fears arose that sensitive information is being leaked to the market ahead of its official publication. Previously, the ONS gave out data on inflation, unemployment, wages, and retail sales to a handful of Britain’s most important decision makers 21 hours before the data’s official release.
7. Majestic Wine said on its underlying full-year revenue rose 11.4% as sales expanded by more than a quarter at its US-focused Naked Wines unit. Full-year sales at Naked Wines, which was acquired in April 2015, surged 26.3% to 142.2 million pounds ($US181.25 million).
8. The number of Americans filing for unemployment benefits fell more than expected last week, pointing to shrinking labour market slack that could allow the Federal Reserve to raise interest rates again this year. Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 237,000 for the week ended June 10, the Labour Department said.
9. Goldman Sachs has collected more than $US7 billion for a fund which purchases secondhand stakes in private equity funds, far exceeding its initial target, Reuters reported. The fund, called Vintage VII, is run out of the bank’s asset management division and had initially sought to raise $US5 billion in capital.
10. Sweden’s largest national pension fund, AP7, has sold its investments in six companies it accuses of breaching the Paris climate agreement, in a decision environmentalists believe is the first of its kind. AP7, which provides pensions to 3.5 million Swedes, said it had sold out of ExxonMobil, Gazprom, TransCanada Corp, Westar, Entergy and Southern Corp.