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Towering bids for City landmark: The imposing Heron Tower skyscraper in the City of London that is part-owned by Gerald Ronson, the property tycoon, could come under new ownership after potential buyers came in with unsolicated approaches.

UK construction PMI advanced in June In June, the construction PMI registered a rise to 58.10 in the UK, compared to market expectations of an advance to a level of 56.50. The construction PMI had registered a reading of 55.90 in the previous month.

UK house prices dropped in June On a monthly basis, the seasonally adjusted house prices eased 0.20% in June, in the UK. In the prior month, house prices had risen by a revised 0.20%. UK house prices advanced less than expected in June In June, the non-seasonally adjusted house prices climbed 3.30% on a YoY basis in the UK, lower than market expectations for an advance of 4.50%. House prices had advanced 4.60% in the previous month.

At 0330GMT today, Brent crude oil one month futures contract is trading 0.14% or $0.09 lower at $61.98 per barrel. Yesterday, the contract climbed 0.1% or $0.06, to settle at $62.07 per barrel and pared its earlier gains after data on US oil rigs showed that US oil producers added 12 rigs last week, the first increase in 29 straight weeks, increasing concerns of a large supply surplus into an already oversupplied oil market.

Glencore holds oil talks in Iran Trader poised to help Tehran rejoin international fold if western sanctions are lifted

BP settles Deepwater spill for $18.7bn Payments spread over 18 years under deal with US authorities

Housebuilder Persimmon said first-half revenues increased by 12% thanks to higher selling prices and higher volumes of new home sales, aided by an increasingly competitive mortgage market. Volumes increased 7% thanks to improved confidence post-general election and the average selling price for the group increased by 4% to roughly £195,000.

Iran's oil investment rush Tehran is finalising a contract system to secure $100bn of new oil and gas deals with western companies if sanctions are lifted, marking a major shift for a regime traditionally wary of the presence of foreign groups in its energy sector

AA plans India roadside unit: India’s iconic tuk-tuks will not be covered by AA’s roadside assistance joint venture planned for the sub-continent, it announced.

Knight Frank warns that homeowners will be hit: The proposed scheme for paying back hundreds of homeowners who would be forced out of their homes by runway expansion at Heathrow airport is “seriously lacking,” according to Knight Frank.

North Sea specialist Independent Oil & Gas updates on funding position: North Sea-focused Independent Oil & Gas has hit a complication with its fund-raising efforts but still expects to have a key financing arrangement in place next month

Caithness harbour cashes in on Shetland oil and gas boom: Scrabster Harbour in Caithness has achieved record turnover after capitalising on the boom in oil and gas activity off Shetland.

% dividend on offer in U.K.s biggest company: Shares in Royal Dutch Shell, the U.K.’s largest listed oil company, have slumped to a five-year low. For the long-term investor the stock offers a 6.6% dividend yield; but for the more adventurous shareholder, there is the opportunity of a near-8% yield through buying shares in BG Group - Shell’s takeover target. The deal, the biggest of its kind in the oil and gas sector for more than a decade, will see Shell paying about 30% in cash and 70% through issuing 1.5 billion new shares to give to BG investors. Shell has historically been a low-risk, dividend-paying share. That is why it has attracted investors and outperformed during times of trouble. The dividend is the amount of cash paid to investors every year for taking the risk of buying the shares. The payout is maintained or increased when profits rise and there is more cash left over at the end of the year to give back to investors. Despite profits falling, Shell is still making lots of cash. The company is expected to earn about $32 billion in cash from its core business of selling oil and gas in the current financial year. The more adventurous investor could buy BG shares at £10.64. Investors holding BG shares at the time the deal closes will receive £3.83 in cash and 0.4454 Shell B shares for each of their BG shares. So, at a net spend on 681p they could receive their 0.4454 share of the 120p Shell dividend, or a prospective yield of 7.9%. Royal Dutch Shell ‘B’ at £18.19+12.5p. Questor says “Buy.”

Deirdre drives off: Gleneagles could be about to get a makeover. Investment group Ennismore has bought the s****y Scottish golf hotel from Diageo. Its other assets include the trendy Hoxton Hotel in Shoreditch, a district that was infested with hipsters until their presence pushed up rents. Diageo North America is also set for a makeover. The Boss rather than the Owner will change here. Deirdre Mahlan, finance Director of the FTSE 100 drinks group, will take over as President when Larry Schwartz retires. It will be up to the impressive Ms Mahlan to fix the problem. If she is successful, the task would round out the American for a Chief Executive’s role. Would that be at Diageo, or somewhere else? Ivan Menezes, the low-key replacement for Paul Walsh, has been hampered by tough markets. Ensuring Ms Mahlan gets some operational grit under her fingernails is just good succession planning by Chairman Franz Humer.

Petrobras: not well: Petrobras is at the bottom of a financial hole, dug by over-investment and a weak oil price. Debt is high. Negative free cash flow will persist for years. Brazil’s government has a deep deficit; federal help is not on the way. A new bill sponsored by Senator Jose Serra addresses some issues. If Brasília agrees to modify the rules, Petrobras could raise more funds without dilution or debt. Meanwhile the country would benefit from greater oil investment, which Petrobras simply cannot afford to complete itself.

Buy-to-let poses potential threat to financial stability, says Bank of England Governor Mark Carney: The rapid growth of the buy-to-let mortgage market is considered one of the “main risks” facing the U.K.’s financial system, the Bank of England has warned.

U.S. shale has been stymied by Saudi Arabia, says Shell CEO: Saudi Arabia’s move to abandon its role as the balancing force in world oil markets has put the brakes on America’s energy boom, with Riyadh successfully pressuring U.S. shale producers, according to the head of Royal Dutch Shell

Resolution Property to aid China’s march into London: Fosun has become the latest Chinese investor to move on the U.K.’s skyline, teaming up with a British property company as it gears up to begin its shopping spree.

At 0330GMT today, Brent crude oil one month futures contract is trading 0.35% or $0.22 higher at $62.23 per barrel. Yesterday, the contract declined 2.48% or $1.58, to settle at $62.01 per barrel, as concerns of a growing oil supply glut were renewed after the Energy Information Administration reported an unexpected increase of 2.4 million barrels in US crude oil inventories for the week ended 26 June.

Growth in British manufacturing activity unexpectedly slowed to its lowest level in 26 months in June, data from Markit and the CIPS showed on Wednesday. The closely-followed UK manufacturing purchasing managers' index (PMI) declined to 51.4 last month, down from a revised reading of 51.9 in May (first published as 52.0). While still growing - indicated by any figure over the 50 mark - economists were expecting an increase to 52.5. This was the weakest rate of expansion since April 2013, and was a result of moderating growth in production and new orders. "The UK manufacturing sector had a disappointing second quarter overall," said Rob Dobson, senior economist at Markit. "Growth trends in output and new orders were the weakest since the opening quarter of 2013, as a strong sterling exchange rate and subdued demand from mainland Europe offset the continued solidity of the domestic market." He said that export trade was likely to remain a drag on the economy, given the uncertainty surrounding the Greek debt crisis. "This makes it difficult to gauge fully any possible knock-on effects for the UK's trade with the euro area particularly in relation to impact from the euro-sterling exchange rate," Dobson said.