The London Rush: Bounceback Barclays

High rates boost revenue in Britain.

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Hi, I'm Leo from Bloomberg UK's breaking news team, catching you up on this morning's business stories. After years of shareholder criticism, Barclays seems to be slowly winning back the markets. Shares have risen over 50% since a crucial strategy update in February. They're up 3% after second-quarter results this morning.  Highlights from today's report include a 44% surge in investment banking fees, a £750 million share buyback, and a raised guidance for UK net interest income. The latter coming off the back of slower-than-expected interest rate reductions by the Bank of England.  The BOE might announce its first rate cut since the pandemic later today (Sam Unsted tells you everything you need to know about that further down). But even if the monetary easing cycle is kicking off eventually, rates are generally expected to stay elevated — which could create a goldilocks scenario for Barclays and its fellow high-street lenders.  What's your take? Ping me on X, LinkedIn or drop me an email at lkehnscherpe@bloomberg.net.  Please note: Our email domain is changing, which means you'll be receiving this newsletter from noreply@news.bloomberg.com. Update your contacts to ensure you continue receiving it — check out the bottom of this email for more details.

What We're Watch

Rolls-Royce shares just hit a record-high after the company boosted its profit guidance and said it will reinstate dividend payments. The maker of aircraft engines is reaping the benefits from cost discipline and demand for large jet turbines. High-street staple Next also raised its guidance for the year after sales from shoppers overseas soared 22%. Shares popped over 6%. Shell's second-quarter earnings topped estimates. Alongside a steady pace of shareholder returns, the company also made progress in strengthening its balance sheet. Finally, LSE Group shares were also trading up, with CEO David Schwimmer flagging an encouraging IPO pipeline.

Global Catch-up

Bill Ackman's IPO dream implodes from $25 billion to zero in weeks. Meta's upbeat quarterly report buys time for AI, Metaverse. And a crackdown on Chinese students raises fears for Britain's tech ambitions.

Markets Today: Knife-Edge Decision

UK assets had a good July. Gilts have rallied, the FTSE 100 is flirting with a record again and the FTSE 250 had its best month of the year so far. A clear election result and view of more political stability has helped. So has a pretty decent earnings season so far, with a couple of exceptions, for stocks that are still super cheap. The BOE's meeting today will provide a test. Broadly, there are two outcomes seen from the knife-edge, coin-toss decision. Either the BOE will cut rates and reiterate a cautious approach to more reductions, or it will hold rates and point to a cut in the near future. The latter would be in line with what the US Federal Reserve said last night. Something outside of those scenarios could rattle UK stocks, bonds and the pound. We'll be covering it in depth at noon, and all London Rush-reading BOE nerds are welcome. — Sam Unsted

What's Next

British Airways-owner IAG is rounding the earnings week tomorrow. The company's deal-making endeavours might overshadow results, now that its Air Europa takeover is on the brink (again). Another focal point will be IAG's progress at attracting more business travellers. Three of the Best: French Restaurants in London You don't need to go to Paris to get a taste of the Olympics. London has a wide range of fantastic French restaurants, many with the je ne sais quoi you thought you could only get in the city of lights — here are three of top restos to feel like you just got off the Eurostar. Casse-Croûte. On a charming corner of Bermondsey Street is this quintessential little bistro with a daily chalkboard menu in loopy script. The owners don't believe in light bites: even in summer, the choices could include pastry shells stuffed with escargot, braised veal shoulder, and a chocolate and pistachio millefeuille for dessert, a meal that would cost a little over £40. Josephine Bouchon. The latest from notable chef Claude Bosi celebrates the cuisine of his hometown, Lyon, in a Chelsea space decorated with tonnes of pictures, antique mirrors and candelabra. The encyclopedic menu checks off the classics including frog legs bathed in garlic butter, a picture-perfect cheese soufflé and fillet de boeuf au poivre. There's a handful of house wines that are served "au mètre" — the bottle is left on the table and you pay for what you drink. Bouchon Racines. A few steps away from Farringdon Station, chef Henry Harris has conjured up a transportive French dining experience above the 300-year-old Three Compasses pub. The menu is written on a body length chalkboard: the famed plump escargot in a sea of butter are a staple, as is well-seasoned steak tartare. — Kate Krader, Food Editor

Pub Quiz

Speaking of excellent cuisine, the White House's executive chef Cristeta Comerford is retiring after serving five presidents over 29 years. Given the time Comerford served, which First Lady must have selected her?  It wasn't Michelle Obama. Photographer: Pool/Getty Images North America [Yesterday's answer: China was, and still is, on top of the Olympics gold-medal table.]

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