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(AWP Alliance News) - The FTSE 100 closed lower on Monday amid reports Iran has suspended peace talks with the US. The FTSE 100 closed down 70.33 points, 0.7%, at 10,338.95. The FTSE 250 ended down 179.99 points, 0.8%, at 23,245.78, while the AIM All-Share fell 2.01 points, 0.2%, to 819.24. The Cboe UK 100 ended down 0.8% at 1,026.80, the Cboe UK 250 was 1.6% lower at 19,980.82, but the Cboe Small Companies Index ended up 0.4% at 18,876.49. Iranian news agency Tasnim reported Monday that Tehran had suspended dialogue with mediators in protest against Israel's expanding Lebanon offensive. The move came hours after Iran again exchanged strikes with US forces despite a weeks-long ceasefire. Tasnim reported that 'the Iranian negotiating team is suspending dialogues and exchange of texts through mediators', blaming Israel's actions in Lebanon. Any resumption in talks was dependent on Israel ending its military operations in Gaza and Lebanon and 'complete withdrawal from the areas occupied by the Zionists in Lebanon', Tasnim said. The report said Iran would continue to block the Strait of Hormuz and 'activate other fronts, including the Bab al-Mandab Strait' at the entrance of the Red Sea. Brent crude for August delivery traded higher at USD97.22 a barrel on Monday, up from USD91.62 at the time of the equities close in London on Friday. In European equity markets on Monday, the CAC 40 in Paris ended down 0.5%, and the DAX 40 in Frankfurt closed 0.4% lower. In New York, the Dow Jones Industrial Average was down 0.3%, the S&P 500 was flat, and the Nasdaq Composite firmed 0.2%. Back in the UK, fresh survey data offered some support. S&P Global said UK manufacturing activity expanded at its fastest pace in four years in May, though firms continued to face mounting cost pressures and supply chain disruptions linked to conflict in the Middle East. The S&P Global UK manufacturing purchasing managers' index rose to 53.9 points in May from 53.7 in April, reaching its highest level since 2022 and remaining comfortably above the 50-point threshold that signals growth. The reading was also above the flash estimate of 53.7 published on May 21. The PMI figure came above the flash reading of 53.7 points published on May 21. The pound traded at USD1.3447 on Monday afternoon, down from USD1.3479 on Friday. Against the euro, sterling firmed to EUR1.1570 from EUR1.1543 on Friday. The yield on the US 10-year Treasury widened to 4.51% on Monday from 4.43% on Friday. The yield on the US 30-year Treasury stretched to 5.01% from 4.97%. The euro traded lower against the greenback, at USD1.1624 on Monday against USD1.1680 on Friday. Against the yen, the dollar was trading at JPY159.64, higher than JPY159.15. Gold traded at USD4,472.82 an ounce on Monday, down from USD4,584.74 on Friday. On the FTSE 100, the oil price gains boosted shares in BP and Shell, up 2.7% and 2.5% respectively. On the FTSE 250, Bluefield Solar Income Fund jumped 16% as it agreed a GBP548 million cash offer from Drax, which implies an enterprise value of GBP1.08 billion. Drax's offer sees Bluefield investors receiving 92.57p in cash for each share held, in addition to keeping the second interim dividend of 2.25p per share, which is payable on or around June 15. Applied Nutrition climbed 12% as it raised full-year guidance, announced a tie-up with Mondelez International and an acquisition in the US. The Merseyside, England-based wellness brand now expects revenue for the financial year ending July 31, excluding Nutrablend Group, of around GBP148 million, ahead of market expectations of GBP140.3 million, and up 38% from GBP107.1 million the year prior. In addition, the firm said it is paying USD16 million cash for US-based manufacturer Nutrablend. The acquisition includes a manufacturing and warehousing facility in Buffalo, New York, with the capacity to support up to USD300 million in annual revenue. easyJet rose 10% after Minneapolis-based asset manager Castlelake confirmed that it was considering a possible offer for the Luton, Bedfordshire airline. Castlelake, which holds a 2.1% stake in the FTSE 250-listed company, said if it were to make an offer, it would be at no less than 403.23 pence per share. Responding to the approach, easyJet on Monday said it has 'not had any discussions with, nor received any approach or proposal from Castlelake.' JPMorgan analyst Harry Gowers said Castlelake's interest is 'credible' given it has a history in the European airline sector and a specialism in asset-based investing - including aviation. It has also provided financing to Virgin Atlantic, he noted. But easyJet called the timing of the approach 'highly opportunistic' given the share price is 'temporarily depressed'. The airline also highlighted the 'considerable' regulatory, financial and other execution challenges associated with a potential takeover. ME Group International plunged 27% as it said it is taking a 'more cautious' view of the full-year outlook amid softer trading, particularly in its French photobooth and laundry businesses. The Epsom, England-based service equipment provider attributed the softening in revenue to a shift in consumer spending patterns driven by lower consumer confidence due to the Middle East war. ME Group now expects full-year 2026 pretax profit to be in the range of GBP69 million to GBP74 million compared to GBP78.2 million in the financial year to October 2025. ME Group's broker Peel Hunt lowered its pretax profit forecast to GBP70.0 million for financial 2026 from GBP80.0 million before. For the following financial year, the broker projects pretax profit of GBP80.0 million, down from GBP88.0 million previously. The biggest risers on the FTSE 100 were Sage Group, up 65.20p at 907.60p, Entain, up 29.00p at 560.60p, Experian, up 103.00p at 2,676.00p, Relx, up 93.00p at 2,543.00p and Glencore, up 20.30p at 588.10p. The biggest fallers on the FTSE 100 were Persimmon, down 60.00p at 1,053.50p, BAE Systems, down 102.00p at 1,921.00p, Rolls Royce, down 64.60p at 1,272.80p, Babcock International, down 50.50p at 1,046.00p and 3i, down 96.00p at 2,179.00p. Tuesday's global economic calendar has eurozone inflation figures and UK money supply data. Tuesday's local corporate calendar has a trading update from Dunhill and Lucky Strike owner British American Tobacco and full-year results from water utility Pennon. By Jeremy Cutler, Alliance News reporter Comments and questions to newsroom@alliancenews.com Copyright 2026 Alliance News Ltd. All Rights Reserved.

(AWP Alliance News) - The US Institute for Supply Management reported on Monday that the overall economy remained in growth territory for the 19th consecutive month. The ISM manufacturing PMI posted 54% in May, its highest reading since the same month in 2022, and up from 52.7 in April. May's reading was above the 53% forecast according to FXStreet-cited consensus. 'The overall economy continued in expansion for the 19th month in a row,' noted Susan Spence, chair of the ISM Manufacturing Business Survey Committee. ' (A manufacturing PMI above 47.5%, over a period of time, generally indicates an expansion of the overall economy.)' The ISM prices paid reading decreased to 82.1% in May from 84.6% in April, despite consensus forecasting a rise to 85.5%. The new orders index expanded for the fifth consecutive month to 56.8% from 54.1%. The employment index expanded to 48.6% from 46.4%. 'In May, 25% of the comments were positive and 69% negative, with a 1-to-2.7 ratio of positive to negative sentiment,' Spence said. 'Among comments, the Iran war was mentioned in 42% and tariffs in 18%; 57% of the panellists mentioned pricing volatility as an issue for their companies.' By Emma Curzon, Alliance News reporter Comments and questions to newsroom@alliancenews.com Copyright 2026 Alliance News Ltd. All Rights Reserved.

(AWP Alliance News) - Negotiations to end the Mideast war appeared in deep trouble on Monday, as Iranian news agency Tasnim reported Tehran had suspended dialogue with mediators in protest against Israel's expanding Lebanon offensive.  Iran's move came hours after it again exchanged strikes with US forces despite a weeks-long ceasefire. Weeks of indirect talks marked by stark threats and several waves of air strikes have so far failed to agree an end to the war or the reopening of the Strait of Hormuz, the key shipping channel for Gulf oil and gas. The latest exchange of fire coincided with Israel expanding its offensive into Lebanon, with Prime Minister Benjamin Netanyahu vowing to push deeper into the country and instructing the military to strike 'terror targets' in a southern district of Beirut. Israel's Arabic-language spokesman posted on X that residents of Dahiyeh should evacuate 'to preserve their safety'. The US has backed its ally's operations in Lebanon against the Iran-backed group Hezbollah, while still trying to come to an agreement with Iran to end the war it launched in late February with strikes on Tehran, and to reopen Hormuz and impose controls on Iran's nuclear programme. But Iran again said Monday it had not yet reopened any nuclear negotiations and insisted that Israel must halt its offensive in Lebanon before any wider deal to end the war can be agreed. The US naval blockade on Iran's ports and the escalation in Lebanon were 'clear evidence of US non-compliance with the ceasefire', Iran's chief negotiator Mohammad Bagher Ghalibaf posted on X. Late Monday afternoon, Tasnim reported that 'the Iranian negotiating team is suspending dialogues and exchange of texts through mediators', blaming Israel's actions in Lebanon. Tasnim said any resumption in talks was dependent on Israel ending its military operations in Gaza and Lebanon and 'complete withdrawal from the areas occupied by the Zionists in Lebanon'. The report said Iran would continue to block the Strait of Hormuz and 'activate other fronts, including the Bab al-Mandab Strait' at the entrance of the Red Sea. 'We know when it is necessary to act on nuclear matters,' foreign ministry spokesman Esmaeil Baqaei told a weekly news briefing. 'No negotiations have taken place on the details of the nuclear file. At this stage, our priority is ending the war.'  'We insist that a ceasefire in Lebanon is an essential condition for any deal aimed at ending the war,' Baqaei said, adding: 'The US is also violating the ceasefire, including this morning.' The US military said it had carried out 'self-defence strikes' on Iranian radar and drone control sites over the weekend - its third such wave in just over a week - after a US MQ-1 drone was downed. Shortly afterwards, Iran's Revolutionary Guards told state media they had targeted an airbase used by the US military from which the attack originated. The Guards did not identify the country said to be hosting the base, but the Kuwaiti military said its air defence had intercepted 'hostile missile and drone attacks'. Iran was already in talks with the US about its nuclear programme in February, when the US and Israel launched air and missile strikes that wiped out much of the Islamic republic's senior leadership and plunged the Middle East into war. While Tehran has long insisted that its nuclear programme is for purely civilian ends, the US and its Western allies suspect it aims to develop an atomic weapon. Late Sunday, Trump posted on social media that the deal under discussion 'states, very clearly, that Iran will not have a Nuclear Weapon'. Iran has said it needs the release of USD12 billion in frozen assets before engaging in substantive talks on its nuclear programme, and dismissed earlier Trump comments suggesting that its stockpile of enriched uranium would be destroyed. A truce in Lebanon between Israel and Hezbollah formally began on April 17 but has never been observed, with both sides accusing each other of violating it.  Israel has pursued a ground offensive into southern Lebanon, raising its flag over a medieval castle that served as a base during its two-decade occupation of the country in the 1980s and 1990s. Netanyahu called the retaking of the Beaufort stronghold 'a dramatic shift' and vowed to continue the fight against Hezbollah, with strikes and incursions ever deeper into Lebanon.  The UN Security Council will hold an emergency meeting on Monday on the widening Israeli offensive, diplomatic sources told AFP. By AFP teams in Tehran, Washington, Beirut, Jerusalem source: AFP Copyright 2026 Alliance News Ltd. All Rights Reserved.