Good morning. Today we're talking about stubborn inflation, Ukraine’s rebuild plans and retail boss gives up ‘golden share’.

Big Stories

Inflation remains stubborn

Inflation for May came in stronger than expected, with the headline rate of 8.7% - unchanged from the April reading and ahead of the 8.4% forecast by analysts. Worse still, the reading was driven by a 0.4% surprise to the upside in core inflation – which strips out volatile components like food and fuel – that rose to a 31 year high of 7.1% from 6.8% in April. The news adds further pressure on the Bank of England to maintain its interest rate-hike policy. Investors are confident that, later today, the Bank will raise rates by at least another 0.25% to a 15-year high of 4.75%. Markets are now pricing in a peak for interest rates in the UK of nearly 6.0% early next year. UK inflation is proving more stubborn than in the US and Europe, thanks to a distinct combination of labour shortages and surging energy and food prices.

UK backs Ukraine rebuild

The UK will guarantee $3bn of loans to Ukraine over three years to bolster its economic stability. The news came as international business and political leaders gathered in London for a conference to fundraise for the reconstruction of Ukraine following the Russian invasion in 2022. Last year Ukraine’s economy shrank 29% and it’s estimated that it will cost $400bn to rebuild the country. In the immediate term Ukraine needs $14bn from international donors to get through this year. Politicians from Europe and the US vowed that Russia would one day be made to pay for the destruction, though officials acknowledged that day is some way off.

Retail boss loses ‘golden share’

THG founder and CEO Matt Moulding has given up his ‘golden share’ rights which gives him the power to block hostile takeover bids. The group behind retail sites including LookFantastic, Myprotein and Glossybox has lost 90% of its market value since listing in 2020. Moulding’s ‘golden share’ has been unpopular with investors and the company had originally said it would be cancelled during 2022, ‘in furtherance of good corporate governance’. THG’s falling share price made it the subject of a takeover bid by private equity firm Apollo. However talks ended last month after THG said the offer provided ‘inadequate valuations’.

Elsewhere...

Not paying up: WHSmith, M&S and Argos are among the retailers 'named and shamed' by the government for breaking the law on the minimum wage.

Out of fashion: Fashion designer Christopher Kane’s company is on the brink of collapse after it filed a notice to appoint administrators.

Mortgage pain: Rising interest rates could see 1.4m mortgage holders lose more than 20% of their disposable incomes, a think tank has warned.

Prime position: The US has accused Amazon of tricking customers into signing up for automatically renewing Prime subscriptions and making it difficult to cancel.

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  Number Of The Day

100.1%

The UK’s national debt as a percentage of GDP, the highest level since 1961.

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