UK retail companies were in for a pleasant surprise this morning, with data from the Office for National Statistics showing a higher than expected rise in the volume of goods sold last month. The boost might not last long though — as consumer confidence figures point toward a potential softening of the economy.

Here’s the key business news from London this morning:

In The City

Retail Sales: Britain’s hottest June on record helped lift retail sales, pushing consumers into department stores and supermarkets to spend on everything from food to furniture. The volume of goods sold in stores and online rose 0.7% last month, economists had forecast a 0.2% month-on-month increase.

• That’s as consumer confidence fell for the first time in six months, interrupting a rapid rebound in sentiment as the reality of soaring prices emerged as a threat to household finances. The reading may signal a softening for the economy in the months ahead.

Glencore Plc: The commodities giant said full-year profit from its trading business will probably be in the range of $3.5 billion to $4 billion, as the Switzerland-based firm heads for another bumper year.

• The industry experienced a blowout year in 2022, as the disruptions caused by Russia’s invasion of Ukraine sent prices and volatility soaring

Close Brothers Group Plc: The merchant bank’s recently hired portfolio managers helped deliver net new money inflows of 9% in the firm’s asset management business. Performance Close Brothers’ securities trading division, meanwhile, remained subdued as retail investors stay cautious.

• The company is currently weighing a potential sale of its wealth-management arm, Bloomberg reported last week

Liontrust Asset Management: The London-based firm said that its offer to buy troubled Swiss asset manager GAM Holding AG is final and won’t be raised, days after a rival investor group led by French billionaire Xavier Niel launched a partial public tender.

In Westminster

Rishi Sunak suffered a dramatic political upset as his ruling Conservative Party lost a key parliamentary election in northern England to Labour, which overturned a huge majority that gives Keir Starmer’s party clear momentum as it gears up for a national vote expected next year.

The prime minister is eyeing holding the UK’s next general election in November 2024 in order to allow the economy as much time as possible to recover before going to the polls, a person familiar with his thinking told Bloomberg on Thursday.

Meanwhile, plans to wrap the cost of research into trading charges aim to boost coverage of small companies, writes Bloomberg Opinion’s Chris Hughes. He argues that a better goal would be the promotion of “unconflicted research.”

In Case You Missed It

The planned initial public offering of Arm, the Cambridge-based chipmaker, may be this years biggest — if the chipmaker can wrap itself in the market’s favourite buzzword: AI.

Average asking rents for new tenants in London shot up to a new record in the second quarter as rampant demand and higher mortgage rates prompted landlords to hike prices.

Finally, here’s a deep dive into the long-running dispute between Terry Smith, a UK money manager beloved by retail investors, and his former partner Teresa de Freitas, who invested in his funds when the two were still a couple.

Looking Ahead

Vodafone Group Plc will kick off the heaviest earnings week of the season on Monday. Performance in Germany will take centre stage, says Bloomberg Intelligence’s Erhan Gurses, adding that it’s a key pillar of the telecom giant’s turnaround efforts.

Other FTSE 100 bellwethers due to give updates later in the week include Unilever Plc, GSK Plc, Shell Plc and the biggest UK banks.

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--With assistance from Gabriela Mello.