UK News
Real Madrid v Bayern Munich: Champions League quarter-final first leg – live | Champions League
Key events
28 min: Great chance for Gnabry!
Lunin plays a short pass to Pitarch, who tries to give it back to Lunin but instead sets up Gnabry six yards out. His instinctive flick hits Lunin and dribbles wide of the far post.
Real have lost possession in and around the penalty area at least five times already.
26 min Vinicius’s deflected cross from the left threatens to sneak into the net and is well stopped by the backpedalling Neuer. He then throws the ball straight to Alexander-Arnold, whose fierce shot from the edge of the area is blocked.
25 min Possession percentage: Real 42-56 Bayern. Five shots apiece.
24 min Olise slips Carreras with ease, then tries to go past Guler, who gets a toe to the ball and concedes a corner. Guler had to make that or it would have been a penalty.
This time Olise’s corner is poor, straight into the hands of Lunin.
23 min Bayern have just toyed with Real in and around the area for a good 30 seconds. They couldn’t create a shooting opportunity, but they are playing some beautiful football.
21 min Olise looks like he has the beating of the Real left-back Carreras. On the other side, Alexander-Arnold has started well against his old teammate Luis Diaz.
18 min Gnabry’s shot on the turn is blocked after a mistake by Vinicius Jr. Real break and Vinicius Jr. flashes a curler from the edge of the area that is pushed away by Neuer, diving low to his left.
That’s a decent save from Neuer, and this is a belter of a game.
16 min: Good save by Neuer!
Real have come to life. First Tah makes a vital interception on the stretch; then Guler, in the inside-left channel, slides a teasing pass into the area for Mbappe. He runs off Upamecano and screws a left-foot shot that is excellently blocked by the outrushing Neuer.
16 min Mbappe is fouled on the right wing by Laimer, which allows Real to set up camp on the edge of the Bayern area. Alexander-Arnold curls an extremely inviting ball that is a yard or two in front of Huijsen among others.
12 min Bayern continue to dominate possession – and, crucially, to cut off Real’s counter-attacks at source. That won’t always be the case, not against Mbappe and Vinicius, so they’ll want to strike while they’re on top.
10 min In Upamecano’s defence, the ball from Kane was fractionally behind him and bounced slightly higher than he would have liked. Even so, I’d have scored that with Spandex trousers on he should have scored.
9 min: Off the line by Carreras!
Upamecano has missed a sitter! Kimmich, 30 yards from goal in the inside-left channel, curled a brilliant ball that cleared the Real defence and reached Kane beyond the far post. He could have gone for goal but instead cushioned a volley back across goal to give Upamecano an easier chance from five yards. Upamecano didn’t connect properly with his shot, hitting the ball into the ground, and Carreras had time to get back and clear off the line.
8 min Kimmich’s inswinging corner is fingertipped over the bar by Lunin. He might have been trying to score there.
The next corner is curled beyond the far post, with Lunin again flailing at fresh air, and eventually leads to a mishit overhead kick by Gnabry that is blocked.
Bayern have started superbly.
7 min Olise’s free-kick clips a Real head in the wall and flies just over the bar with Lunin diving across goal. Lunin comes for the resulting corner, gets nowhere near it and is grateful to see Huijsen head it out of play on the far side.
6 min Olise is tripped just outside the area by Huijsen, an ill-judged and probably nervous challenge. This is a chance for Bayern…
3 min Vinicius Jr. pulls out to the left to receive possession, then surges into life and runs at Upamecano just inside the area. Upamecano goes to ground to make a meaty and fair challenge.
1 min An early half chance for Bayern, with the left-back Laimer sweeping over the bar from the edge of the area.
1 min Peep peep! Bayern kick off from right to left as we watch.
The players line up for the Champions League music, most with their gamefaces firmly applied. The atmosphere is spectacular, and that’s just in the Guardian liveblog bunker.
“I spent the first three years of my life in Europe in Hunedoara, where Mircea Lucescu was a household name,” writes Krishnamoorthy V. “He was as well known as the Corvin Castle. Another yesteryear great goes away.”
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Ah, g’wan.
Harry Paterson’s preview
Bayern Munich visit the Spanish capital with wind in their sails: they have lost only twice in 43 matches this season, are on an unbeaten run of 13 games, and have won nine of their 10 games in the Champions League. Their 10-2 demolition of Atalanta in the last 16 served as a timely reminder of their attacking firepower.
They rested a few important players in their 3-2 win at Freiberg at the weekend and, with the Bundesliga title all but secured and a place in the DFB-Pokal semi-finals booked, their attention is fixed on the task ahead at the Bernabéu. Yet, for all of their domestic dominance, Bayern have failed to beat Real in their last nine attempts. The good news is that, even though Harry Kane missed England’s defeat to Japan last week, he trained with the squad on Monday and has travelled to Madrid.
Real Madrid will relish the prospect of hosting Bayern, not least because they have gone on to lift the trophy the past four times they have eliminated the German side from the competition. Their recent domestic form does give reason to temper expectations, though; their 2-1 defeat to Real Mallorca on Saturday allowed Barcelona to move seven points clear at the top of La Liga. If anything, that setback will only sharpen their focus with the Champions League.
Real lost three matches in the league phase, forcing them to overcome Benfica in the playoffs, but they are a different force in the knockouts – as shown by their 5-1 aggregate win against Manchester City in the last 16. They knocked Bayern out in the semi-finals in 2023-24, 2017-18 and 2013-14, as well as in the quarter-finals in 2016-17, so have history on their side.
Thibaut Courtois is still missing after picking up an injury against Manchester City last month, so Madrid will rely on Andriy Lunin. Rodrygo, Ferland Mendy and Dani Ceballos may also miss out but Kylian Mbappé – the top scorer in the competition this season with 13 goals – is fit. Prediction: Bayern to progress after a draw in the first leg.
“Football is just not as exciting as it once was,” weeps Justin Kavanagh. “If a 26-year-old waiter were to run on to the field tonight and clock both Harry Kane and the referee, you can be sure he’d be doing it off balance and with little power because he’d be busy taking a selfie with his non-swinging arm.”
The game’s gone.
At the end of tonight’s game, a Real Madrid fan will charge onto the pitch, chin Harry Kane and flatten the referee Michael Oliver.
No, of course they won’t. But that is essentially what happened at the end of the first ever meeting between Real and Bayern. The footage is kinda bonkers: watch for the affronted gentleman who sprints into view from behind the goal.
Bayern will hope to get over what has become an awkward hurdle. In five of the six seasons since they last won the Champions League, they’ve gone out in the quarter-finals.
Sporting v Arsenal is the night’s other Champions League game. You can follow that with Yara El-Shaboury.
Some very sad breaking news: Romanian legend Mircea Lucescu, who coached the team in the World Cup playoffs less than a fortnight ago, has died at the age of 80.
The second leg is in Munich a week tomorrow. The winners will meet Paris Saint-Germain or Liverpool in another heavyweight contest.
Real Madrid v Bayern Munich: a short history
There is footage of a notorious incident at the final whistle, when an affronted Madrid fan hared on to the pitch, chinned Gerd Müller as he ran past and then floored the referee, Erich Linemayr, with one punch. A dazed Müller was carried from the field. Real were banned from European competition for a year; the newspaper Marca said: “Uefa has assassinated its own father.” Uefa brought him back to life when they lifted the ban a few weeks later. But Madrid were so irked that they hired a team of private detectives to track down the assailant. A 26-year-old waiter from Madrid was eventually identified.
The players on a yellow card
There are a few, including some big hitters.
Real Madrid Huijsen, Carreras, Tchouameni, Vinicius Jr, Mbappe, Bellingham.
Bayern Munich Laimer, Upamecano.
Team news
Real Madrid make three changes to the side that won 2-1 at the Etihad in their last Champions League game: Andriy Lunin, Alvaro Carreras and Kylian Mbappe replace Thibaut Courtois, Fran Garcia and Brahim Diaz. That means Jude Bellingham, who has only recently returned from injury, stays on the bench.
Bayern’s team is as expected, with two changesfrom the first leg of their 10-2 aggregate victory over Atalanta. (They picked a number of second-string players for the second leg and frankly there’s no point listing them all as they were never likely to start tonight and most of them are on the bench anyway.) Manuel Neuer and Harry Kane replace Jonas Urbig and Nicolas Jackson.
One battle to look out for: Trent Alexander-Arnold is up against his old Liverpool teammate Luis Diaz.
Real Madrid (4-2-2-2) Lunin; Alexander-Arnold, Rudiger, Huijsen, Carreras; Tchouameni, Pitarch; Valverde, Guler; Mbappe, Vinicius Jr.
Subs: Gonzalez, Carvajal, Eder Militao, Alaba, Bellingham, Camavinga, Gonzalo Garcia, Asencio, Ceballos, Francisco Garcia, Diaz, Mastantuono.
Bayern Munich (4-2-3-1) Neuer; Stanisic, Upamecano, Tah, Laimer; Kimmich, Pavlovic; Olise, Gnabry, Diaz; Kane.
Subs: Urbig, Kim, Goretzka, Musiala, Jackson, Davies, Bischof, Ito, Guerreiro, Osmani, Karl.
Referee Michael Oliver.
Kane starts for Bayern
Harry Kane, who was doubtful for the game, is in the Bayern XI. We’ll have the full team news in a second.
Preamble
Hello, buenas noches, guten abend, and welcome to live coverage of Real Madrid v Bayern Munich in the Champions League quarter-finals. Just as everybody needs a bosom for a pillow, so every football competition needs a clásico: an impossible-to-overhype-but-let’s-bloody-well-try contest between two giant teams. Hell, last weekend there were four clásicos on Hackney Marshes alone!*
With apologies to AC Milan, Joseph Bloggs and others, Real v Bayern is the clásico of European football. This is their 29th meeting and 14th two-legged tie, both Uefa records, and all have taken place in the European Cup or Champions League. In eight of the previous 13 ties, the winner went all the way that season.
It would be unwise to make such an assumption about this year’s tie, given the quality elsewhere in the competition, but whoever emerges from this heavyweight contest will understandably have the whiff of destiny in their nostrils.
Most people have Bayern as favourites: they finished second in the league phase, seven places ahead of Real, and are gallivanting to another Bundesliga title. Real, by contrast, lost to Mallorca at the weekend and are seven points behind Barcelona in La Liga.
Form, logic, reason, sanity: they rarely get a look-in when Real Madrid play in the Champions League. Anything could happen, which is just the way we like it ahead of a clásico.
Kick off 8pm.
* We may and indeed have made this up
UK News
European stock markets hit record high and oil price falls to three-month low after US-Iran peace deal – business live | Business
European stock markets hit record high
European stock markets have hit a record high at the start of trading, as relief over the US-Iran peace deal ripples across global markets.
The pan-European Stoxx 600 index has jumped by 0.9% to 639 points, over the previous record high set just before the Iran war started, with shares rising in London, Frankfurt, Paris, Madrid and Milan.
Mining and travel companies are driving the rally, while oil company shares are sliding.
That follows sharp gains in Asia-Pacific markets overnight, where Japan’s Nikkei surged by 5% on hopes that the strait of Hormuz will reopen within days.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, says global equity markets are starting the week firmly on the front foot after President Trump announced that a deal with Iran had been reached, adding:
The move has given investors a clear reason to dial back some of the geopolitical risk premium that has hung over markets, especially as the Strait of Hormuz is expected to reopen and oil prices move sharply lower.
Energy prices have been one of the clearest transmission channels from Middle East tensions into inflation, bond yields and equity sentiment, and there is likely to be a concerted effort to get prices down even further once this deal is finalised.
There are still details to be ironed out before markets can fully trust the agreement, but for now the direction of travel is clear: lower oil, calmer nerves and a renewed appetite for risk.
Key events
Peace deal should keep mortgage rates down
Mortgage borrowers can breathe a sigh of relief at the news of a peace deal in Iran, says Adam French, head of consumer finance at Moneyfactscompare.co.uk.
While we are far from being out of the woods yet, a lasting peace deal should dramatically reduce the risk of the Bank of England’s worst-case scenario for inflation and interest rates becoming a reality.
“Under that scenario, Base Rate could have risen to 5.25%, potentially pushing typical rates on new mortgages towards 6.75%. Instead, today’s news means mortgages rates, which have already been slowly falling for several weeks, have likely already passed their peak – at least until the next unwelcome crisis.
“Borrowers can be optimistic but with a word of caution, as inflation and economic data will continue to influence the outlook. However, a lasting peace should remove one of the biggest risks to mortgage costs and may help restore a more stable environment for hard-pressed remortgage borrowers and prospective buyers.”
Even before this morning’s drop in UK bond yields (see earlier post), average mortgage rates have dipped slightly.
Moneyfacts reports:
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The average 2-year fixed residential mortgage rate today is 5.61%. This is down from 5.62% the previous working day.
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The average 5-year fixed residential mortgage rate today is 5.58%. This is down from 5.59% the previous working day.
Why it may take months for oil flows to return to normal
Donald Trump excitedly declared: “Ships of the World, start your engines. Let the oil flow!” last night, but the reality is that it will take some time for oil flows through the strait of Hormuz to return to pre-war levels.
One reason is that many oil tankers are simply in the wrong place, after the long closure of the strait.
Another is that some production and refining facilities have been damaged by the conflict, while others were mothballed after storate facilities filled up to the brim.
A third factor is that insurers could still be wary of the conflict reigniting, and price their cover accordingly.
Neil Shearing, group chief economist at Capital Economics, explains:
Even if ships now have safe passage, tankers are in the wrong place, oil production/refining facilities need to get up to full capacity, and questions over the cost and availability of insurance for ships traversing the Strait will remain.
Our current working assumption is that ~80% of energy flows will resume by the end of Q3. Natural gas flows will be slower to return, following the damage to Qatari facilities earlier in the conflict, which according to local officials has put 17% of production offline for two to three years.
US crude drops below $80
US crude oil has dropped to its lowest level since the second week of the Iran war.
The cost of a barrel of West Texas Intermediate (WTI) light sweet crude has dropped by 6% today to $79.72 per barrel, the first time since 10 March that it has been under $80/barrel.
That could help to pull down US gasoline prices, which climbed after the conflict began, hitting consumer confidence.
UK bond yields fall
Today’s relief rally is also driving up government bond prices, pushing down the cost of borrowing.
The yield (or interest rate) on 10-year UK government debt has dropped by 6.5 basis points (0.065 of a percentage point) to 4.775%.
Two-year bond yields are down 8bps to 4.16%.
Lower bond yields indicate that that the cost of issuing new government debt has fallen, which will be a relief for the UK Treasury after the Iran war drove up borrowing costs.
Copper mining company Antofagasta is now the top riser on the FTSE 100, up almost 8%.
Trader will be concluding that an end to the Iran war will boost the world economy, leading to more demand for raw materials such as copper.
European stock markets hit record high
European stock markets have hit a record high at the start of trading, as relief over the US-Iran peace deal ripples across global markets.
The pan-European Stoxx 600 index has jumped by 0.9% to 639 points, over the previous record high set just before the Iran war started, with shares rising in London, Frankfurt, Paris, Madrid and Milan.
Mining and travel companies are driving the rally, while oil company shares are sliding.
That follows sharp gains in Asia-Pacific markets overnight, where Japan’s Nikkei surged by 5% on hopes that the strait of Hormuz will reopen within days.
Matt Britzman, senior equity analyst at Hargreaves Lansdown, says global equity markets are starting the week firmly on the front foot after President Trump announced that a deal with Iran had been reached, adding:
The move has given investors a clear reason to dial back some of the geopolitical risk premium that has hung over markets, especially as the Strait of Hormuz is expected to reopen and oil prices move sharply lower.
Energy prices have been one of the clearest transmission channels from Middle East tensions into inflation, bond yields and equity sentiment, and there is likely to be a concerted effort to get prices down even further once this deal is finalised.
There are still details to be ironed out before markets can fully trust the agreement, but for now the direction of travel is clear: lower oil, calmer nerves and a renewed appetite for risk.
BP and Shell’s shares slide
Shares in oil companies are falling, though – BP and Shell are both down 3.7%, as investors anticipate an end to their earnngs boost from the Iran war.
FTSE 100 index hits eight-week high
Boom! Britain’s stock market has hit a near-two month high at the start of trading, as investors welcome the breakthrough between the US and Iran to end the Middle East conflict.
The FTSE 100 blue-chip share index has jumped by 99 points, or almost 1%, at the start of trading to 10,570 points, its highest level since 21 April.
Engineering firm Rolls-Royce, which makes and services jet engines, is the top riser on the FTSE 100, up 5.5%, followed by British Airways parent company IAG, up 4.8%.
UK house prices dip in June

Gwyn Topham
Two bits of good news for Britons who don’t own their homes have been revealed, with data showing a drop in house prices in June as well as fewer tenants facing rent hikes last month.
Figures from Rightmove showed the average price of property coming on the to market fell by 0.6% or £2,113 to £376,191, the biggest June fall in fourteen years, with prices 0.5% below this time in 2025. The biggest drops were seen in southern England and Wales, and in asking prices for flats rather than houses.
The property site said the number of homes for sale was still at historically high levels for summer, making it more of a buyer’s market. Mortgage affordability has also improved slightly this month, with the average two-year fixed rate deal dropping about 0.1 percentage points to 5.07%, it said.
Meanwhile, figures suggest that the introduction of the Renters Right Act may already be seeing results in terms of keeping rents down for tenants.
The new law came into force at the start of May and means landlords can only increase rents for sitting tenants once a year. According to Hamptons monthly lettings index, the number of tenants who saw their rent rise was down 23% from the same month last year. Hamptons said if the rest of the year saw similar change, it would expect only 31% of sitting tenants to face increases, compared to 40%-50% in previous years.
However, the agency warned that rent rises in Scotland, where landlords have been operating under a similar system for longer, exceeded the national average. Sitting tenants who faced rent rises had an average increase of 5.4% in May, but the figure reached 7.7% in Scotland, albeit for a lower absolute rent – £952 – than the Great Britain average of £1375.
Speaking of the ECB, their president Christine Lagarde has been warning that inflation pressures are spreading in the euro area.
In an intervew with broadcaster France Culture, Lagarde warned that high energy prices are starting to feed through to other parts of the economy, saying:
“Indirect effects of inflation, we have absolutely started to see that more or less everywhere in recent weeks.”
The US-Iran agreement is well-timed for the Bank of England, which is due to set UK interest rates on Thursday.
If the strait of Hormuz does reopen, and oil flows return towards pre-war levels, there will be less inflationary pressure – and thus less need for interest rate rises.
The European Central Bank raised its interest rates last week, but this week is the turn of the BoE, the US Federal Reserve and the Bank of Japan.
Kathleen Brooks, research director at XTB, says:
Over the past month, the price of oil is down by more than a fifth, and the Brent crude price is now back at levels from early March. This is good news for inflation, which should start tumbling monthly from June, and it could ease concerns about price pressures as we lead up to some major central bank action this week. The decline in the oil price also raises questions about whether the ECB was too hasty in raising rates last week.
European stock markets are on track to jump when trading begins, in just over 20 minutes.
Germany’s DAX share index is up 1.65% in the futures market, Reuters reports, with the UK’s FTSE 100 0.75% higher.
The US dollar is weakening, as investors shift into riskier currencies.
The pound is its highest in over a week, at $1.3438.
Markets rally across Asia
There are strong gains across Asia-Pacific markets today, as investors welcome the deal between the US and Iran.
Japan’s Nikkei share index has leapt by 5%, as has South Korea’s KOSPI, while China’s CSI300 index is 1.9% higher.
Jim Reid, market strategist at Deutsche Bank, says:
Whilst the deal is very good news for markets it looks like tough conversations will have occur in the 60-day window to ensure the peace is sustainable. As an example, the Senate needs to approve any extensive sanction relief for Iran.
For now the can kicking exercise has been very well received by markets even after a strong US close on Friday where hopes were raised of a weekend signing
Introduction: Oil falls to three-month low
Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.
The peace deal agreed between Iran and the US is sending a wave of relief through the markets today.
Oil has tumbled 4%, and markets across the Asia-Pacific region have jumped, as investors anticipate the reopening of the strait of Hormuz.
Although it is unclear exactly what has been agreed – with the final text of their memorandum of understanding unpublished – Donald Trump’s claim that “oil will flow on both ends again for the region, and the world” is pushing down energy prices – a relief for busineses, consumers, politicians and central bankers alike.
Brent crude has fallen as low as $83.04, its lowest since 10 March, after the prime minister of Pakistan announced the US and Iran will sign a memorandum of understanding in Switzerland on Friday.
That still leaves Brent above its pre-war price of $72.48 a barrel, though.
Trump has indicated that the opening of the strait is contingent upon the signing of the peace deal, scheduled for Friday.
Iran’s Mehr state news, though, reported that the agreed memorandum of understanding calls for the reopening of the strait within 30 days under “Iranian arrangements” – an indication that Tehran hasn’t surrendered its control of the waterway.
Chris Weston of IG points out that there are still obstacles to overcome:
The probable reopening of the Strait of Hormuz later this week would represent a significant positive development. Markets had increasingly questioned how long inventory draws could offset supply disruptions and whether physical dislocations would begin weighing more heavily on risk assets. The focus now shifts towards understanding what normalisation of logistics could realistically look like, and how quickly shipping volumes can return to pre-conflict levels of 120 to 140 commercial vessels transiting eastbound and westbound each day.
There are still obstacles to overcome. Mines may need to be cleared, and there may be structural damage to refineries and export facilities around the region that will take time to repair and come back to pre-conflict capacity.
The agenda
UK News
Roy Hattersley, former Labour deputy leader, dies aged 93
Paying tribute, Sir Keir Starmer said Lord Hattersley “was a giant of the Labour movement”.
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UK News
A £350 swimming pool fee ruined our easyJet holiday | Consumer rights
My partner and I paid £2,150 for a week’s all-inclusive break in Marrakech with easyJet Holidays.
We chose the Jaal Riad Resort Hotel because of its pool and spa. When we arrived, we were told that use of the heated pool cost £24 a person an hour, the Jacuzzi £24 for 20 minutes, and the hammam was £16 for 20 minutes.
Nowhere were these extra fees listed when booking. EasyJet Holidays rejected my complaint and referred me to a line buried at the bottom of the list of facilities that said charges may apply. We were planning on using the pool regularly but could not afford it. If we had known, we would have booked elsewhere.
DP, Cambridgeshire
Hidden charges can hugely inflate the cost of holidays. Resort fees are the most pernicious – some hotels charge up to £50 a person a day for facilities whether or not they are used.
Then there’s the daily tourist tax levied via the accommodation provider during the stay in some countries, and ancillary fees for upgraded wifi for sun loungers.
EasyJet Holidays makes a big deal of the pool – it’s a prominent photo on the webpage for the hotel.
No asterisk refers potential bookers to the crucial caveat that a couple, wishing to avail themselves once a day during a week’s stay, would have to pay almost £350 extra.
Even the eagle-eyed who alighted on the paragraph of small print at the bottom of the page, would be none the wiser.
Only after declaring that the facilities are subject to height and weight restrictions, seasonal availability, opening times, and age and dress code, does it mention that they “may” attract additional charges. These are not listed.
This is potentially unlawful, according to consumer lawyer Gary Rycroft.
“The facilities were prominently marketed as part of the holiday experience, and extra charges were not clearly disclosed before purchase,” he says. “Under the Digital Markets, Competition and Consumers (DMCC) Act 2024, businesses must not omit material information that would influence a consumer’s decision about whether to enter into a contract.”
EasyJet is defensive. “We always strive to make it clear that use of hotel facilities may incur additional charges,” it told me.
The company said then that it was reviewing the description to “further highlight that the use of the spa facilities is chargeable”, although, at the time of writing, three weeks later, the webpage remained unchanged. It has also now offered a £500 goodwill payment.
As the holiday season begins, you need to read the small print to avoid nasty surprises.
We welcome letters but cannot answer individually. Email us at consumer.champions@theguardian.com or write to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU. Please include a daytime phone number. Submission and publication of all letters is subject to our terms and conditions.
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