Seven days in the Square Mile

A combination of political uncertainty and weaker than expected inflation figures caused the pound to whipsaw. It fell to $1.30 on Wednesday, the lowest since September 2017. But given the extent of the uncertainty, some traders thought the volatility could have been worse. UK inflation came in lower than expected in June: sinking by 0.1% when it had been expected to rise by 0.3%, and prompting debate about the chances of an interest rate rise next month. Official figures showed that average UK house prices increased by 3% in the year to May – the lowest annual growth rate since 2013. Prices in London fell for the fourth consecutive month. In a strong rebuttal of White House protectionism, the European Union and Japan signed a major trade deal in Tokyo aimed at eliminating 99% of tariffs. It marks the largest trade deal ever negotiated by the EU. Google was fined a record s4.3bn by EU antitrust enforcers for illegally using its mobile operating system, Android, to “cement its dominant position in search”. The firm’s parent, Alphabet, says it will appeal. Amazon‘ s founder, Jeff Bezos, briefly became the richest person in modern history with a net worth topping $150bn. His elevation coincided with strikes at Amazon warehouses in Germany, Spain and Poland over poor labour conditions. The bidding escalated in the battle for broadcaster Sky, with Comcast trumping 21st Century Fox to offer £26bn.