Good morning. Today we're talking about Labour’s energy strategy, Next’s warm weather bonus and AstraZeneca’s Chinese decision.

Big Stories

Labour’s new energy

The Labour leader Keir Starmer has laid out his party’s green energy plan which he pledges will lower bills, create more jobs and ensure UK energy security. The strategy includes ending new North Sea oil and gas exploration and reversing the ban on new onshore wind farms. Starmer also promised to create a state-owned energy company focused solely on green projects. The so-called Great British Energy would be located in Scotland and could provide up to £600m to local councils to invest in green infrastructure and a further £400m in low interest loans for community projects. Labour estimates that the plans would take up to £1,400 off household bills and £53bn off energy bills for businesses by 2030 as well as create 50,000 jobs.

Next stays in fashion

Shares in Next jumped 5% yesterday after the high street retailer raised profit expectations for this year. The news came as the company reported a strong performance in recent weeks due to warmer weather, resilient consumer spending and an uplift in household real income from annual salary increases in April. The FTSE 100 firm, which operates around 500 stores, is seen as a bellwether for consumer confidence and said trading has been “materially better” than the guidance it gave shareholders last month. Next warned the impact of recent pay rises and the arrival of warmer weather would fade over time, as inflation remains elevated, eroding the effect of higher salaries. It said it did not expect its current performance to continue at the same level in the coming months.

Pharma giant mulls China exit

According to reports AstraZeneca is drafting a plan to spin off its China business, amid growing tensions between Beijing and Western allies. Sources say that the British pharmaceutical firm, valued at £180bn, could list its Chinese division on a stock market in Asia while retaining control of the business. China accounts for 13% of AstraZeneca's total sales, and the company is China's biggest drugmaker. The plan could shield AstraZeneca from any potential crackdown on overseas businesses by Chinese authorities. A spokesperson said: “AstraZeneca does not comment on rumours or speculations around future strategy or mergers and acquisitions.”

Elsewhere...

Mortgage woes: A typical two-year fixed mortgage deal now has an interest rate of more than 6% for the first time since December.

Cutting prices: Morrisons and M&S became the latest supermarkets to cut food prices, adding to signs that a surge in inflation is set to abate.

Jumbo order: India’s largest airline Indigo has placed the largest aircraft order in the history of commercial aviation ordering up to 500 of Airbus’s A320 jets.

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