FTSE 100 Live: New record high hit after Rolls and BAE upgrades, BoE holds rates

FTSE 100 up 50 points to 10,958 Results from Shell, Rolls, Lloyds, LSE, BAE Systems, BAT and more Bank of England decision at midday

US inflation softened last month, on the PCE measure. Core PCE prices rose 0.1% month-on-month, down from 0.3%. The core PCE deflator increased at a 3.4% annualised rate in Q2, marginally above the consensus forecast of 3.3%. US Q2 GDP rose 1.5%, down from 2.1% in the first quarter and much slower than the 2.0% expected. Real consumption jumped 3.2%, also above the consensus, 2.3%.

Barclays economist Pooja Sriram says PCE price inflation "decelerated as widely expected". "At the headline level, energy prices led the bulk of the drag, as we had forecast." All of the deceleration in core PCE prices came from core services, where weakness was relatively broad​-​based, with categories such as accommodation, recreation and non​-​profits serving households posting outright deflation, whereas the trajectory of price increases slowed for most of the other categories, the most notable one being financial services.

On GDP, Oliver Allen at Pantheon says "big drags from net trade and inventories obscure solid growth in private demand in Q2, but we doubt this strength will be sustained". "Consumption rose by 3.2%, with more than half of that increase due to a jump in spending on goods, probably driven...