Hurricane Energy’s shares rose nearly 30pc after a court rejected its proposed restructuring plan.

The Aim-listed North Sea oil driller announced in April a controversial proposed debt-for-equity restructuring that would hand 95pc of the company to its bondholders.

At the time, it said that failing to get the plan through would likely lead to a “controlled wind-down [...] followed by insolvent liquidation”.

However, Justice Zacaroli at the High Court said there was “a reasonable possibility” that the company might be able to take steps such as refinancing to meet bond payments.

Hurricane, whose financial troubles stem from underperformance at its Lancaster field, said it was considering an appeal, warning there remained a “significant risk of no value being returned to shareholders.”

None the less, the stocks rose to 2.8p. The small-cap company has a strong following of retail shareholders who bought into the vision of former chief executive Robert Trice, a geologist who developed techniques to recover oil from fractures in brittle rock.

Elsewhere, the FTSE 100 shed 63 points to finish the day at 7072.97, following a session where travel stocks and Burberry weighed on the index.

Burberry shares dropped to as low as £20.27 before recovering slightly to £20.55 - still 195p lower than Friday’s close.

The fashion brand’s shares plunged after chief executive Marco Gobbetti announced he was leaving to take the top job at Italian luxury goods maker Salvatore Ferragamo in his native Italy.

Airline stocks also suffered heavy losses as European holiday destinations introduced tighter restrictions for British tourists amid rising concern about the coronavirus Delta variant.

At the prospect of another lost summer, British Airways owner IAG shed 11p from its share price, falling to 176p. Tui also dropped 21p to 384p, Wizz Air fell 273p to £47.45 and easyJet fell 55p to 900p.

Michael Hewson, chief market analyst at CMC Markets, said: “European markets have got off to a poor start to the week, as rising virus cases threaten to undermine sentiment as we come to the end of the month, the end of the quarter and the first half of 2021, with the energy sector, along with travel and leisure leading the losses.

“It’s been another difficult day for the travel and leisure sector today with the likes of IAG, easyJet, Ryanair and Tui all lower along with Air France-KLM and Lufthansa.”

Oil stocks also felt the impact of these concerns, with fears of a dip in demand from the travel sector weighing on the likes of BP and Shell.

Mr Hewson added: “Oil prices are slipping back ahead of this week’s Opec+ meeting as well as concerns that a rise in global cases, and new restrictions will act as a brake on the pace of global reopening.”

Brent crude decreased by 1.55pc to $75 per barrel.

05:23 PM

Wrapping up

That is all from us today - here are some of our top stories:

• HS2 forced to settle with Spanish train maker after bungling £2.8bn contract

• Nissan to unveil plans for Britain's first electric car battery gigafactory

• Burberry chief Marco Gobbetti quits

• Greensill auditor under investigation by accounting watchdog

• 800,000 workers at risk of leaving central London in Covid exodus

Thank you for following! Keep up to date with all Covid-related news via our live blog here.

05:19 PM

Nasdaq nears all-time high

Across the pond in the US, the Nasdaq is trading near all-time highs with tech companies outperforming.

Stay-at-home winners like Microsoft, Apple, Amazon and Nvidia were among the biggest boosts of the day, as the reflation strategy took a breather.

Reopening sectors, however, dropped sharply, including financials, energy and airlines. Cruise operators and airlines were hit by governments imposing new limits on travel from Britain. All major S&P sectors fell, except technology and utilities.

On Friday, the S&P 500 logged its best weekly performance in 20 following the agreement on a $1.2 trillion infrastructure spending deal and waning concerns about a sooner -than-expected policy tightening from the Fed. The benchmark is struggling to find direction today.

04:43 PM

McAfee autopsy shows suicide

The official autopsy on the body of John McAfee has shown he committed suicide in the Spanish prison cell where he was awaiting extradition to the US, according to El Pais newspaper who cited sources close to the proceedings.

Sofware mogul Mr McAfee was found hanged in his cell last Wednesday by prison wardens in what appeared to be a suicide, his lawyer said last week.

His lawyer Javier Villalba said on Friday that McAfee's widow Janice had asked him to request a second, independent autopsy once the results of the first were released.

04:14 PM

EU starts handing out Covid recovery grants

The European Union has given out the first cash from its coronavirus recovery fund today, known as NextGenerationEU, in the form of grants to create jobs and support businesses.

All of the EU's 27 countries are due to get money from an €800bn fund (£954bn) in grants and loans, financed by debt raised by the European Commission. Countries can also use it to reimburse projects dating back to February 2020.

Some €800m in grants to 16 EU countries was handed out today, including to France, Germany, Denmark, Estonia and the Czech Republic.

To qualify for the recovery money, each government had to set out how it would spend its share, with a caveat that at least 37pc must go towards fighting climate change and at least 20pc to making the economy fit for the digital age.

03:57 PM

Lawyer tells court ENRC conspiracy allegations are "bonkers"

Neil Gerrard, a former top Dechert lawyer, has dismissed as "bonkers" allegations he had conspired not to tell his former client, mining company ENRC, that the UK Serious Fraud Office (SFO) wanted to compel a senior employee to attend an interview.

Reuters has more:

03:39 PM

NatWest sells Irish commercial lending unit to AIB

NatWest has agreed to sell a majority stake in its commercial lending unit in Ireland to Allied Irish Banks (AIB) for around €4.2 (£3.6bn) as part of plans to end its operations in the country.

AIB will take over most of the commercial lending business, and associated undrawn exposure of around €2.8bn from Natwest's Ulster Bank (UBIDAC).

As part of the deal, around 280 workers will transfer from UBIDAC to AIB, which is one of Ireland's largest banks. The final number will be confirmed once completed.

03:01 PM

AstraZeneca shares rise 2pc

Vaccine maker AstraZeneca is leading the FTSE 100 for gains this afternoon, after its Forxiga drug for the treatment of chronic kidney disease received approval to be used in the EU.

A study by the University of Oxford also found that immune responses to the company's Covid-19 vaccine improve if the gap between doses is extended to around 10 months. The study also said a third shot can boost antibody levels even further.

The drugmaker's shares were up 2.16pc just before 4pm.

02:49 PM

Cineworld shares claw back losses on demand hopes for latest Fast and Furious film

Cineworld shares rose above four month lows reached earlier in the day, after cinemas in the US and Canada reported the latest Fast and Furious film made an estimated $70m (£50m) during its first weekend - making it the most successful film to be released since the pandemic.

Michael Hewson, chief market analyst at CMC Markets UK, commented:

02:24 PM

FTSE falls 0.8pc

The FTSE 100 has dropped deeper into the red this afternoon, as travel stocks and Burberry continue to weigh on the index.

The London benchmark has now shed 0.8pc or 57 points to fall to 7,078.

01:47 PM

US stocks reach new records

The S&P 500 and the Nasdaq hit record levels shortly after opening on Monday as tech-related growth stocks edged up, while investors wait for Friday's jobs report and Wednesday's eurozone data on consumer prices.

The S&P 500 rose 4.2 points, or 0.10pc, to 4284.9​, while the Nasdaq Composite rose 57.4 points, or 0.40pc, to 14417.811.

However the Dow Jones Industrial Average fell 5.7 points, or 0.02pc at the open to 34428.1.

01:40 PM

More on Greggs' results

Greggs is bouncing back from the pandemic as customers have returned to its shops in higher-than-expected numbers after Covid restrictions were eased, reports my colleague Julia Bradshaw.

The food-to-go outlet had expected sales to slow somewhat over the past month as more cafes and restaurants opened up and competition increased.

But like-for-like sales growth, which is an industry-wide measure of performance, remained at 1pc to 3pc, compared with the same period in 2019, before the pandemic hit.

“This level of sustained sales recovery is stronger than we had anticipated and, if it were to continue, would have a materially positive impact on the expected financial result for the year,” said Roger Whiteside, Greggs' chief executive.

Analysts widely expect consumer demand will remain high throughout the rest of the year and have upgraded Greggs’ profit forecasts by as much as 26pc. Analysts at Edison have also more than doubled their dividend forecast.

“It may not seem a big difference between -2pc and 2pc like-for-like sales growth, but if the current rate of form persists, then there will be an extra £40mish of sales to play with here and with profit drop through up to 50pc, that is a material upgrade,” said Jonathan Pritchard, a retail analyst at Peel Hunt.

“Our view is that certainly in the near term, the consumer is likely to stay on the front foot, and we do not believe that Greggs is at all ahead of itself or trends in upgrading guidance.”

It’ll also put Greggs on track to open 100 net new stores this year and make good on its promise to launch new product ranges, including new coffees, vegan alternatives and healthier meals.

Shares in the company were up just over 3pc in afternoon trading to £26.42.

01:17 PM

Shopper numbers in London lag behind regional centres

The recovery of shopper numbers in the capital is trailing behind the rest of the country, with footfall in Central London 53pc below 2019 levels while market and coastal towns are down 25pc and 28pc.

Retail analytics company Springboard also said the data suggested that, in the capital city, proportionately fewer workers are returning to their offices with the impact compounded by a lack of overseas tourists.

Springboard found that footfall across all UK retail destinations remained static last week with a marginal drop of -0.2pc.

Footfall in retail parks dropped by 2pc while high streets and shopping centres footfall rose by 0.2pc and 0.6pc respectively.

12:53 PM

JD Sports buys Spanish retailer in £120m deal

JD Sports has made a £120m swoop for a smaller rival in Spain that sells cycling, running and outdoor equipment, reports Laura Onita.

The deal for Deporvillage - a Catalonian-based online retailer - is the latest in a string of recent acquisitions for the company in the United States and Europe.

The FTSE 100 firm is buying 80pc of the firm, with its current management team retaining the rest. The move is designed to help JD Sports grow key sports categories and complement its existing Sprinter and Sport Zone offering.

Deporvillage made sales of €117.8m and pre-tax profit of €7.7m for the year to the end of December.

Peter Cowgill, executive chairman of JD Sports, said there was scope to expand internationally.

The executive was forced to say in recent weeks that intended to stay in charge amid growing speculation that the firm was stepping up succession planning after pressure from investors to do so.

He was appointed executive chairman in 2004. The share price has jumped 311pc in the last five years alone to 951p.

JD Sports is facing an investor rebellion on Thursday at its annual meeting with shareholders after handing Mr Cowgill a £4.3m bonus despite the company’s use of Government support during the pandemic.

He has defended the payout, saying he had only received one long-term incentive payout in eight years.

The firm’s share price rose to a record high last week after Nike - one of its key suppliers - reported better-than-expected fourth quarter results.

In February, it paid £360m for a Baltimore-based sportswear chain following its £243m takeover of West Coast trainer retailer Shoe Palace.

12:36 PM

Nissan to announce UK gigafactory this week

Japanese car giant Nissan is expected to confirm plans for a battery gigafactory in the UK this week.

Since May, the Japanese company has been negotiating with ministers to secure support for the plan, which would make the site Nissan’s biggest electrified car operation outside the company's home country.

If the gigafactory is confirmed, it would be a major vote of confidence in UK manufacturing after years of warnings that the country's exit from the European Union could trigger an exodus of international companies.

Ready more on this story here.

12:28 PM

European Commission confident of 'sausage war' resolution in 48 hours

European Commission Vice-President Maros Sefcovic said on Monday said he was confident that an agreement could be reached within the European Union in the next 48 hours to avoid a ban on chilled meat product exports from Britain to Northern Ireland.

Britain has asked the EU to allow a three-month extension to the current post-Brexit grace period waiving checks on British-made sausages and other chilled meats moving to Northern Ireland, which is due to end on June 30.

"In the past few days I have been in intensive contact with the European Parliament and EU member states on this request," Sefcovic told lawmakers in Northern Ireland's regional parliament.

"And while I cannot today announce the EU's formal agreement to the UK government's request, through all the internal contacts I have had, I remain confident that we can find a solution in the next 48 hours to address both sides' needs and concerns," he said.

Under post-Brexit trade rules agreed last year, Northern Ireland is effectively treated as part of the EU for customs purposes to avoid politically sensitive border checks with the Republic of Ireland.

12:13 PM

Jersey extends licences for EU fishing boats

The government on the Channel Island Jersey said today that it will extend a transitional fishing agreement with the European Union that would allow EU fishing boats to continue operating in its waters for three months.

"The EU has recently requested an extension to the transitional arrangements, which had been due to come to an end on 30 June," a statement from the Jersey government said, adding that "Jersey Ministers have agreed to that request."

12:02 PM

US futures stall near all time highs

US futures tracking the S&P 500 index stalled at an all-time high on Monday as investors refrained from making big bets ahead of data on the health of a US labour market recovery and corporate earnings later in the week.

Both the S&P 500 and the Nasdaq hit record levels last week. On Friday, the S&P 500 recorded its best weekly performance in 20 weeks following an agreement on President Joe Biden's $1.2 trillion infrastructure spending deal and waning concerns about a sooner-than-expected policy tightening from the Federal Reserve.

Dow e-minis are currently down 39 points, or 0.11pc and S&P 500 e-minis were up 1.5 points or 0.04pc.

Nasdaq 100 e-minis were up 42 points, or 0.29pc as megacap companies including Microsoft Corp, Amazon.com Inc and Facebook Inc inched upwards in premarket trading.

11:50 AM

Expert reaction: Binance ban

Laith Khalaf, financial analyst at AJ Bell, calls the UK's Binance ban "part of a growing trend of regulatory intervention in crypto markets".

He says that regulators are worried about three main risks emanating from the crypto market: the potential for consumer harm; systemic risks crypto markets pose to financial markets and money laundering.

He adds:

11:27 AM

Hong Kong bans passenger flights from Britain

Hong Kong will ban all passenger flights from Britain starting from Thursday, as it puts the UK on its “extremely high risk” Covid-19 category.

“From 0.00am on July 1 (Hong Kong time), all passenger flights from the U.K. will be prohibited from landing,” the government said in a statement Monday.

The UK was on Hong Kong’s extremely high-risk category between December and May, before it was lowered to very high risk as the pandemic eased.

The decision to change the rating back was made “in view of the recent rebound of the epidemic situation in the UK and the widespread Delta variant virus strain there, coupled with a number of cases with L452R mutant virus strains detected by tests from people arriving from the UK,” the territory's government said.

11:17 AM

UBS is latest bank to offer hybrid working permanently

UBS Group has become the latest bank to allow staff to adopt hybrid working permanently, as European banks adopt a more flexible approach compared to American banks which are keen to get staff back into the office.

“We are committed to offering our employees the flexibility for hybrid working where role, tasks and location allow,” UBS said.

“Hybrid work options will be introduced on a country-by-country basis, with timing dependent on the local pandemic situation.”

By contrast, JPMorgan Chase & Co and Goldman Sachs have begun bringing employees back to their US offices.

Morgan Stanley is also attempting to get workers back by September. The chief executive, James Gorman, told staff earlier this month: “If you can go to a restaurant in New York city, you can come into the office.”

11:01 AM

FTSE 250 facing first monthly drop since January

The FTSE 250 is set for its first monthly drop since January following the UK's delay in lifting restrictions on concerns over a spike in Covid-19 infections.

Trailing the index is gambling software company Playtech (down 5.2pc), defence company Ultra Electronics (down 4.5pc) and coach company National Express (down 4pc).

Airlines Wizz Air and TUI also both shed more than 3pc from their share prices.

10:42 AM

More on Glencore taking full control of Colombian coal mine

Mining giant Anglo-American has ditched its final thermal coal asset three years earlier than planned as it races to slash its carbon footprint, reports Rachel Millard.

The FTSE 100 company is selling its 33.3pc stake in Columbian mine Cerrejon for $294m [£211m] to rival miner Glencore, which today defended its decision to invest in thermal coal amid heightened concern about climate change.

Anglo-American has just spun-off its South African thermal coal mines into a new listed company, Thungela Resources, which started trading on the London Stock Exchange this month.

Mark Cutifani, chief executive, said: "We have sought to balance the expectations of our wide range of different stakeholders as we have divested our portfolio of thermal coal operations, in each case choosing the exit option most appropriate for the asset and its distinct local and broader circumstances."

Thermal coal is used to generate power but is carbon-intensive and many countries are trying to use gas or renewable power instead. Anglo-American said in February that it planned to sell its shareholding in Cerrejon by 2024.

The exit will be welcomed by its climate-conscious investors. However, the fact it is being bought by another miner will raise questions about whether there is any overall benefit for global carbon emissions.

Glencore is also buying rival miner BHP's 33.3pc stake in the mine, meaning it will take full control for a total $588m.

Glencore said the purchase was in line with its plans to cut its own coal portfolio, with the concession due to end in 2034 and production to decline "materially" from 2030.

"The alternative is one or more new partners acquiring these shares and compromising the sustainable operating philosophy of Cerrejón, and extending production beyond the current mining concessions." it said.

10:33 AM

New EU holiday restrictions weigh on travel stocks

Travel stocks continue to slide today as European holiday destinations introduce tighter restrictions for British tourists.

Spain will demand a negative COVID-19 test or proof of vaccination from British tourists who want to enter Mallorca, Ibiza and other Balearic Islands, Prime Minister Pedro Sanchez said on Monday.

Portugal has imposed quarantine restrictions on unvaccinated British travellers and Malta has banned all non-vaccinated Britons from entering the country, with the rule coming into effect on Wednesday.

As a result, British Airways owner IAG shed 4pc from its share price. TUI was down 1.6pc, Wizz Air dropped 2.7pc and Easyjet fell 2.6pc.

10:25 AM

Leon to open 'first of many' drive-through restaurants

Healthy fast food brand Leon is to launch its first drive-through restaurant in West Yorkshire this autumn, after being snapped up by forecourt giant EG Group.

It added that the site will be the "first of many" drive-through locations planned for the year as EG pushes forward with its plans to expand the brand further across the UK.

The company, which runs more than 70 restaurants, was bought by the Blackburn billionaire brothers, Mohsin Issa and Zuber Issa, behind EG in April in a deal reported be worth about £100m.

The Issa brothers said the move would also be the first of "many, new strategic openings" for Leon now it has secured EG's financial backing.

In a joint statement, Mohsin and Zuber Issa, said: "Our investment in Leon, together with our unparalleled operational experience of drive-throughs and access to high-quality roadside locations through our forecourts, creates new opportunities for the company and a strong platform to deliver significant growth."

10:09 AM

Pound on track for worst month since September

Sterling has risen 0.3pc against the dollar today but the currency is still on track for its worst month versus the dollar since September.

This month, sterling dropped for the first time since April below $1.38 against a strengthening dollar after the US Federal Reserve surprised markets by signalling it would raise interest rates and end emergency bond-buying sooner than expected.

Sterling was one of the worst performing G-10 currencies last week after the Bank of England kept the size of its stimulus programme unchanged and said inflation would surpass 3pc as Britain's economy reopens, adding it expected climbs further above its 2pc target to be temporary.

UK-EU politics is expected to influence the currency this week, with investors watching the dispute over post-Brexit trade in Northern Ireland.

The current grace period waiving checks on British-made sausages and other chilled meats moving to Northern Ireland is due to end on June 30. Britain has yet to receive a formal response from the EU over its proposal to further extend the grace period.

09:49 AM

Hiscox agrees settlement over Covid-19 business losses

Hiscox has agreed an arbitration settlement with a group of policyholders over losses their suffered by their businesses as a result of government coronavirus restrictions last year, the insurance provider said today.

Britain's highest court said policyholders had a right to payouts from insurers who had argued many business interruption policies did not cover widespread disruption after government efforts to curb the virus from last March.

The judgment did not detail the size of the payments which insurers needed to make.

Hiscox said its settlement with the Hiscox Action Group of policyholders was "in line with the Supreme Court Judgment and the proceedings have now been resolved to the mutual satisfaction of all parties". The terms of the settlement were confidential, it added.

The judgment affects dozens of insurers with similar policy wordings.

Hiscox was one of eight insurers to participate in the industry to participate in a test case brought on behalf of policymakers by the Financial Conduct Authority.

09:35 AM

Oil holds steady near three-year highs

The price of oil is holding near its highest level since 2018, with an OPEC+ meeting this week expected to bring supply increases that won’t keep pace with the global demand recovery.

Futures in New York traded near $74 a barrel after rising 1pc on Friday. The Organisation of Petroleum Exporting Countries and its allies will meet Thursday following a 50pc gain in prices this year. Producers may decide to boost output by 550,000 barrels a day in August, a Bloomberg survey shows, but that’s barely a quarter of the global deficit that OPEC+ anticipates during the month.

Saudi Arabia, OPEC’s top producer, has so far proceeded cautiously, with the persistence of Covid-19 and the potential restoration of Iranian supply clouding the market outlook.

In a possible complication to talks on the Iranian nuclear deal, US forces conducted air strikes Sunday against Iran-backed militias blamed for attacking American facilities in Iraq, the Defense Department said.

“Crude oil trades steady, with market participants expecting OPEC+ will keep supplies tight enough to support current levels,” Ole Hansen, head of commodity strategy at Saxo Bank A/S, told Bloomberg.

“With virus uncertainties due to the highly contagious delta strain and questions about an Iran nuclear deal hanging over the market, the group may opt for caution,” hence current price strength.

09:24 AM

Expert reaction: Airline stocks dip

Joshua Mahony, senior market analyst at IG, commented on the drop of airline stocks this morning:

09:19 AM

Crosfill & Archer Claims fined £110,000 for unsolicited sales calls

City watchdog, the FCA, has fined Crosfill and Archer Claims Limited £110,000 for making unsolicited telemarketing calls to people who registered not to receive this type of sales call.

Mark Steward, executive director of enforcement and market oversight at the FCA, said:

09:10 AM

Watchdog opens dual investigation into Greensill and Gupta audits

The UK accounting watchdog has launched a dual investigation into the audits of Greensill Capital and Sanjeev Gupta’s bank Wyelands, reports my colleague Simon Foy.

The Financial Reporting Council said it has opened probes into PwC’s audit of Wyelands Bank for the year ended 31 December 2019 and Saffery Champness for its audit of Greensill during the same period.

Wyelands is owned by Mr Gupta and has close links to now defunct Greensill, but is currently on the verge of collapse after the steel tycoon said he was pulling funding from the bank having handed it a £75m loan last year.

The move by the FRC represents the latest front in the Greensill saga which exploded into a political and financial scandal earlier this year.

In March, the Bank of England ordered Wyelands to repay all depositors £210m due to concerns over how it was funding Mr Gupta's GFG Alliance.

The lender’s board said it expects the bank will be "wound up on a solvent basis" if it fails to secure a sale to new backers.

A spokesman for PwC said:

Saffery Champness said it would cooperate fully with the FRC, adding:

09:01 AM

Money round-up

Here's the daily round-up from The Telegraph's Money team:

• Money Makeover: 'Is £400k enough for me to come home from Africa and retire?' Andy Dixon has been working for the Americans but needs a new income on home soil

• Borrowers turn to interest-only mortgages – how to invest and pay off your loan: Investing the monthly savings could see a homeowner pay off the debt five years early

• Dangerous e-scooters have become the scourge of our streets: What are your rights if you are involved in a collision?

For more personal finance advice, sign up to the Money Newsletter here.

08:36 AM

Glencore takes over coal mine from BHP and Anglo American

Glencore Plc will buy out two rivals in a giant Colombian coal mine, expanding its production of the most-polluting fuel as prices soar, despite continued global efforts to reduce usage.

Bloomberg has the details:

08:27 AM

Serco wins contract to run Covid-19 test sites for another year

Outsourcing giant Serco has won a new £300m contract with the Department of Health and Social Care (DHSC) to run coronavirus testing sites for another year.

The company said today they signed a new deal with to operate regional, local and mobile testing centres in England and Northern Ireland following a tendering process.

The value of the new 12-month contract, with the option of a six-month extension, could be worth up to £322m but could also change significantly due to its flexibility to levels of demand in coming months, Serco added.

It means the company will continue operating around 20pc of sites across England and Northern Ireland, including drive-through and walk-in test centres, alongside mobile sites.

Serco chief executive Rupert Soames said: "We are proud of the part we have played in building and operating the UK's highly successful Covid-19 testing infrastructure.

"From a standing start in March 2020, NHS Test & Trace has grown a network of regional, local and mobile sites which have delivered over 18.5 million individual tests, an average of 51,000 tests a day.

"We are delighted that the DHSC has selected us to continue to support them in providing these services for at least the next 12 months."

08:19 AM

UK lenders tumble down global rankings as China soars

European banks have tumbled down the world rankings following a bruising encounter with the pandemic, as Chinese lenders continue to rise, reports Ben Woods.

He writes:

Read Ben's full story here.

08:04 AM

Greggs rises as baker reports stronger-than-expected sales

Greggs shares have lifted 1pc this morning, after the high street bakery giant revealed sales were surging faster than expected and the reopening of cafes and restaurants did not dent Britons' enthusiasm for the chain's sausage rolls and steak bakes.

The company said: "We had expected to see increased competition as cafes and restaurants were allowed to compete more effectively with our largely take-out offer.

"In recent weeks the impact of pent-up demand for retail has reduced but, nonetheless, like-for-like sales growth in company-managed shops has remained in positive territory ranging between 1pc and 3pc when measured against the same period in 2019.

"This level of sustained sales recovery is stronger than we had anticipated and, if it were to continue, would have a materially positive impact on the expected financial result for the year."

The chain first indicated in May that it could return to pre-pandemic profit levels later this year.

In the eight weeks to May 8, sales dropped 3.9pc, compared with a 23.3pc fall in the 10 weeks to March 13.

Total sales in the 18 weeks to May 8 were £352m, up from £280m last year during the pandemic but down from £373m in 2019.

07:49 AM

Airline stocks tumble amid fears EU will block British tourists

Airline stocks are falling as they react to reports that Germany and France are pushing for blanket quarantine restrictions to be imposed on British tourists entering the EU.

British Airways owner IAG, Wizz Air, Ryanair Holdings and Easyjet fell between 0.9pc and 1.8pc after German Chancellor Angela Merkel, who has been calling for stricter restrictions for both vaccinated and unvaccinated Britons entering the EU to prevent the spread of the delta coronavirus variant which is dominant in the UK, won the backing of her French counterpart Emmanuel Macron.

EU health officials predicted last week that the delta variant will make up 90 per cent of all cases across the bloc by the end of August.

My colleague Tim Wallace has more on this story here: Merkel and Macron's bid to block British tourists puts 'Club Med' economies in peril

07:38 AM

Burberry shares drop 6pc

Burberry shares are dragging down the FTSE 100 index this morning, which is down 14 points or 0.2pc.

The fashion brand has tumbled 6pc today, after the company's chief executive Marco Gobbetti announced he was leaving to take the top job at Italian luxury goods maker Salvatore Ferragamo.

During his time at the luxury fashion brand, Gobbetti has attempted to push more full price items and rely less on discounts and sales.

He also led a strategy to target richer, young customers.

Burberry said the board will now begin the search for a successor, with Gobbetti staying in post until the end of the year to enable an orderly transition.

07:27 AM

Bitcoin shrugs off Britain's Binance ban

Bitcoin has risen overnight to above $34,700, despite a ban on one of the world’s largest Bitcoin exchanges from operating in Britain.

The Financial Conduct Authority ordered Binance Markets Limited to remove all advertising and financial promotions by Wednesday and told the firm it must not carry out any regulated activities in Britain without prior consent.

However the cryptocurrency shrugged off the news to rise 6.6pc this morning, approaching $35,000.

The broad crypto space also gained, with the market cap of the ecosystem up about 8pc to $1.43 trillion, according to CoinGecko pricing.

“We’re seeing the $30,000 level on Bitcoin being defended quite well with a number of tests at that level over the past month,” Vijay Ayyar, head of Asia-Pacific at crypto exchange Luno Pte told Bloomberg.

“We saw a lot of downward pressure on prices being defended, so this looks quite bullish at this point.”

Read more about the Binance ban here.

07:06 AM

FTSE 100 drops on opening

The FTSE 100 index has dropped 0.27pc or 18 points on opening, following a cautious session on Asia's main markets.

The FTSE 250 also dipped 0.21pc or 47 points.

06:37 AM

Cautious start

Good morning. The FTSE is set to open flat after Asian markets made a cautious start to the week.

5 things to start your day

1) Bitcoin exchange Binance banned from UK as crypto frauds double: The City watchdog has ordered the company to remove all advertising and financial promotions by Wednesday

2) Cabinet split over bid to protect British steel makers from imports: Liz Truss and Kwasi Kwarteng are at loggerheads over retaining industry safeguards

3) Bin day to get more complicated to curb CO2 emissions: Householders will have to spend more time sorting out food waste in attempt to improve recycling rates

4) Farmyard lozenge ‘can ease allergies’: Allergy Therapeutics is beginning UK trials of an over-the-counter supplement that it claims helps calm the immune system

5) Dozens of ‘cowboy’ Covid testing labs on approved providers list: Test providers currently do not need to be accredited to operate, but they must make a written application

What happened overnight

Asian shares started the week in a cautious mood on Monday, as a spike in coronavirus cases across the region over the weekend hurt investor sentiment while oil hovered around 2-1/2 year highs.

MSCI's broadest index of Asia-Pacific shares outside Japan was last a shade weaker at 702.57. Japan's Nikkei slipped 0.2pc, with South Korea's benchmark KOSPI down about the same amount.

Investors were concerned about a spike in coronavirus infections in Asia, with Australia's most populous city of Sydney plunging into a lockdown after a cluster of cases involving the highly contagious Delta strain ballooned.

Indonesia is battling record high cases while a lockdown in Malaysia is set to be extended. Thailand too announced new restrictions in Bangkok and other provinces.

Chinese shares were a touch higher with the CSI300 index up 0.2pc.

Coming up today

• Corporate: Petrofac (trading update)

• Economics: Industrial confidence, economic and services sentiment, business climate indicator (EU)