Head over to our US site for more market moving news.

Here's the latest, following Rachel Reeves' speech in parliament.

From our US colleagues:

Starbucks (SBUX) investors are cautious ahead of its Tuesday earnings report.

Its shares are down nearly 28% compared to a year ago, when the coffee giant painted a picture of a resilient consumer with a 10% sales growth, Now, different expectations are on tap.

Q3 revenue is expected to grow 0.37% to $9.20 billion, per Bloomberg consensus estimates. Adjusted earnings per share is expected to be $0.92, compared to $1.00 a year ago.

Same-store sales are expected to decline for the second quarter in a row, down 2.71%, while overall foot traffic is expected to drop 4.27%.

The size of the average check is estimated to be up 1.98%, as menu prices increase. This may also be boosted by new items launched during the quarter like popping boba-like pearls, and iced energy drinks. It launched a limited-time “pairing menu," which allows customers to get a small iced or hot coffee with a butter croissant or breakfast sandwich for $5 or $6.

Bitcoin surged to its highest level in six weeks, trading close to the $70,000 mark on Monday, following former US president Donald Trump’s renewed endorsement of cryptocurrency over the weekend.

The world’s largest cryptocurrency was valued at $69,495 (£54,254) at the time of writing, a 2.9% increase in the session.

Trump was the keynote speaker at the Bitcoin 2024 conference on Saturday, a gathering of industry heavyweights in Nashville, Tennessee. The Republican presidential candidate used the event to court voters and encourage campaign donations from the tech community.

Trump declared his intention to make the US the "cryptocurrency capital of the world" if re-elected. He assured the crowd that he would retain 100% of the bitcoin that the US government currently holds or acquires, proposing the creation of a “national bitcoin stockpile.”

Additionally, Trump announced plans to "immediately appoint a bitcoin and crypto presidential advisory council," further solidifying his support for the industry. He also vowed to fire SEC chair Gary Gensler if elected.

"I think you're just in your infancy," Trump told the meeting of crypto industry leaders. "I can see it happening. In just 15 years, bitcoin has gone from merely an idea posted anonymously on an internet message board to being the ninth most valuable asset anywhere in the world."

Trump’s recent statements mark a significant shift from his 2021 comments, when he labelled bitcoin a “scam” detrimental to the value of the US dollar.

Here's our full take

The top faller in the FTSE on Monday is consumer group Reckitt Benckiser, which dipped following a ruling against Abbott Laboratories in the US on Friday as investors looked to the potential knock-on impact.

Abbott will pay $495m after allegedly obscuring the risks of its premature infant formula feed. The litigation alleged that the formula causes a potential fatal bowel disease.

Stock dipped more than 9% in morning trade.

Again, from Pedro Goncalves:

Heineken shares tumbled on Monday morning after the brewing giant missed profit growth expectations for its performance in the first half of the year.

The company swung to a first-half net loss of €95m (£80.3m, $103.1m) from a €1.16bn profit a year earlier, after writing down the value of its stake in Chinese brewer China Resources Beer (0291.HK), resulting in a hefty impairment.

Heineken announced a one-off impairment charge of €874m (£737.5m) after devaluing its stake in China’s largest brewer.

The Dutch beer company attributed the writedown to concerns about demand levels in mainland China. This significant impairment has led Heineken, the world’s second-largest brewer, to narrow its forecast for full-year operating profit to a range of 4% to 8%.

Operating profit showed organic growth of 12.5%, below a company-compiled consensus forecast of 13.2%. Beer sales, which were expected to grow at 3.4%, rose by just 2.1%.

“Heineken gathered momentum following optimistic comments at a recent conference leading the market (and ourselves) to improve estimates,” Barclays analysts said in a Monday note.

“However, these results missed forecasts, suggesting there was a gap between the company’s messaging and analyst expectations. This needs to close.”

READ MORE

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners said:

Here are the top lines from the Bank of England's latest mortgage data:

• Individuals borrowed, on net, £2.7bn of mortgage debt in June, up from £1.3bn in May.

• Net mortgage approvals for house purchases remained broadly stable at 60,000 in June, while approvals for remortgaging decreased from 29,300 to 27,500 over the same period.

• Net consumer credit borrowing dipped slightly in June to £1.2bn, from £1.5bn in May.

• Private non-financial corporations (PNFCs) raised, on net, £6.7bn of finance in June, an increase from £4.2bn in May. This was driven by £4bn of net bond issuance and £3.6bn of loans by banks and building societies.

A dispatch from our reporter Pedro Goncalves:

Educational publisher Pearson has reported a dip in sales for the past six months but announced plans to leverage advances in artificial intelligence (AI) to drive future growth.

The FTSE 100 (^FTSE) company informed shareholders of a slight increase in profits for the period, citing a “solid” performance in the first half of 2024 and “operational progress” across its business segments.

Pearson reported that sales fell to £1.75bn for the half-year ending June 30, down from £1.88bn in the same period the previous year. However, the company’s assessment and qualifications division saw a 2% increase in sales for the half-year. In contrast, its virtual schools business experienced a 1% drop due to contract losses, and higher education sales declined by 2%. On a positive note, Pearson benefited from an 11% increase in English Language learning sales.

The firm also revealed that adjusted operating profits grew by 4% to £250m for the period.

Despite the sales decline, Pearson maintained its sales and profit guidance for the year

Chief executive Omar Abbosh said: “Significant demographic shifts and rapid advances in AI will be important drivers of growth in education and work over the coming years, and this plays to Pearson’s strengths as a trusted provider of learning and assessment services.

“We are implementing plans across all of our businesses that will see us deliver better products and services with greater efficiency. We’re also focusing on opportunities to progressively build our presence in materially larger and higher growth markets in which we are well positioned to succeed, with a particular focus on early careers and enterprise skilling.”

Shares in gambling empire Entain were among the top fallers in the FTSE 100 on Monday morning following a trading update which showed its 50% owned joint-venture BetMGM will continue making losses for a while yet.

The losses come despite revenues in the first half which hit $1bn — a 6% increase year-on-year.

When it comes down to the reason for the losses in H2, Entain cited "greater than planned" investment in iGaming. First-half losses hit $123m.

Stock was down 2.8% by mid-morning.

Last week, retail conglomerate John Lewis received the green light to build 353 rental flats above an existing Waitrose shop in Bromley.

The 24-storey block will act as a new revenue stream for the business and is set to include a mix of one to three bedroom units.

Although the permission for the build specifically states that one tenth will be "affordable", campaigners have said this isn't the case. John Lewis already rowed back on a promise that 35% would be affordable in line with Bromley Council targets.

An update from our US team on Friday:

US stocks closed a volatile week with a flash of optimism as investors mounted a comeback off promising inflation data and hardening expectations of coming interest-rate cuts.

The Dow Jones Industrial Average (^DJI) added 1.6%, or more than 650 points. The S&P 500 (^GSPC) rose about 1.1%, while the Nasdaq Composite (^IXIC) put on 1% although both indexes were in the red for the week.

Stocks turned positive after a turbulent series of sessions. The Nasdaq and the S&P 500 have taken a bruising as Big Tech earnings undermined confidence in the AI trade, spurring the ongoing exodus from megacaps into small cap stocks.

The Nasdaq shed 2% over the week, while the S&P lost about 1%. Only the Dow emerged with a win, gaining roughly 1%.

Stock indexes across Asia were higher in Monday's session, mirroring bullish sentiment in the US on Friday. Investors are looking to central bank meetings in Japan and the US later in the week.

The Hang Seng (^HSI) in Hong Kong rose 1.5%, while Japan's Nikkei (^N225) rose 2.1% and the Kospi (^KS11) in Korea jumped 1.2%.

Market watchers in Japan are anticipating the central bank will raise its key interest rate from near-zero levels.

Hello from London. Lucy Harley-McKeown here bringing you the latest markets news as we start the week.

Today we have UK consumer credit and mortgage approval data from the Bank of England. Tomorrow it's GDP from a host of European nations as well as the EU.

The FTSE 100 is set for a higher open this morning — let's get to it.