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Tesco (LSE:TSCO) has committed £20 million to Bramble Fund I, a food-focused venture fund established by Leon co-founder Henry Dimbleby and partners to invest in food businesses and related technologies.

The commitment makes Tesco the anchor and largest investor in the fund, which plans to provide between £1 million and £5 million in growth capital to individual companies.

Bramble is targeting UK and European food businesses that have demonstrated the potential for commercial expansion.

Tesco and Bramble Establish Innovation Partnership

Alongside the investment, Tesco and Bramble have agreed a separate partnership that will include the creation of a joint innovation board.

Selected companies backed by the fund will be able to test products and technologies within Tesco’s supply chain.

The arrangement is intended to provide portfolio companies with access to a large-scale retail and supply-chain environment in which to assess their technologies.

The information supplied does not specify how companies will be selected for testing or provide financial terms for the separate partnership.

KluraLabs Becomes Bramble’s First Investment

Bramble’s first investment is KluraLabs, a British technology company developing packaging designed to extend the shelf life of food and reduce the use of artificial additives.

The fund is also considering potential investments in other areas of food technology.

These include technologies intended to reduce agricultural reliance on chemical fertilisers and medical devices designed to monitor digestive health.

The prospective investments remain under consideration and have not been identified as completed transactions in the information provided.

Bramble Targets UK and European Food Businesses

Dimbleby, who authored the UK government’s commissioned National Food Strategy, founded Bramble in 2024 alongside Omar Habbal, Mark Hudson and Chris Mitchell.

The fund’s investment strategy focuses on food-related businesses in the UK and Europe that it assesses as having potential to expand commercially.

Tesco’s £20 million commitment gives the retailer exposure to the fund’s portfolio while its separate partnership with Bramble provides a framework for selected technologies to be tested within Tesco’s operations.

Gold prices extended their decline on Thursday as higher U.S. Treasury yields and changing expectations for Federal Reserve policy remained in focus alongside an increase in oil prices.

Spot gold fell 0.5% to $4,267.43 an ounce by 04:40 ET, while gold futures declined 0.4% to $4,301.17 an ounce.

The moves followed a decline in the previous session as markets increased their expectations for additional Federal Reserve interest rate rises.

Changes in interest rate expectations can affect demand for gold because the precious metal does not generate interest, while higher yields can increase the potential returns available from government bonds and other interest-bearing assets.

Brent Above $100 as Markets Follow U.S.-Iran Developments

Energy prices remained another consideration for investors, with benchmark Brent crude moving back above $100 a barrel.

Markets continued to monitor negotiations involving the United States and Iran and the outlook for shipping through the Strait of Hormuz.

Iranian President Masoud Pezeshkian said Iran would not allow freedom of navigation through the strait while U.S. sanctions and the blockade remained in place.

U.S. President Donald Trump had previously described discussions with Iranian representatives at the United Nations General Assembly as “very good.” He had separately threatened Iran with “annihilation” if hostilities escalated.

The developments left traders assessing the prospects for changes to regional shipping conditions and energy supplies.

Fed Rate Expectations Shift After U.S. Activity Data

U.S. economic data also contributed to changes in interest rate expectations.

Business activity expanded at its fastest rate in more than five years during September, according to the figures cited in the supplied material.

CME FedWatch data provided with the source indicated that markets were pricing a 77.5% probability of an interest rate increase at the Federal Reserve’s October meeting. That compared with 55.4% one week earlier.

Market pricing also indicated a probability above 58% of another increase in December, compared with 41.7% a week earlier.

These probabilities measure market expectations at a particular point in time and can change as economic data and Federal Reserve communications develop. They do not establish the outcome of future policy meetings.

The Federal Reserve raised its benchmark interest rate by 25 basis points at its September meeting.

Treasury Yields Add Pressure to Gold

The shift in rate expectations coincided with higher U.S. government bond yields.

The benchmark 10-year Treasury yield recorded its largest one-day increase since April 2025 during the previous session.

Higher bond yields increase the returns available on interest-bearing securities, which can affect the relative demand for non-yielding assets such as gold.

The outlook for inflation was also being assessed in the context of higher energy prices, with investors considering whether changes in oil costs could influence future Federal Reserve decisions.

Metals Markets Await Trump-Xi Meeting

Trade policy was another factor being monitored ahead of a meeting between Trump and Chinese President Xi Jinping.

Critical-mineral flows are among the issues relevant to metals markets.

Britannia Global Markets analysts said a “broader deal or concessions on critical-mineral flows” could support metals, while “a breakdown would revive tariff risk.”

“Watch the communique for metals-specific language,” the analysts said.

The statements describe Britannia Global Markets’ assessment of possible scenarios surrounding the meeting. They do not indicate that an agreement, concessions or a breakdown in negotiations will occur.

Oil prices extended their advance on Thursday as markets continued to assess negotiations between the United States and Iran and potential changes to energy shipments through the Strait of Hormuz.

Brent crude futures gained 1.1% to $104.19 a barrel by 04:01 ET, while U.S. West Texas Intermediate futures were 0.9% higher at $92.99.

The increases followed gains in the previous session, when Brent settled more than 3% higher and WTI rose almost 2%.

Iranian President Masoud Pezeshkian said during an address to the United Nations General Assembly that Iran would not surrender to U.S. pressure, while also indicating that Tehran remained open to diplomatic negotiations.

His comments followed a warning from U.S. President Donald Trump that he could “annihilate” Iran if hostilities escalated.

Oil Markets Monitor Strait of Hormuz Developments

A senior Iranian official told Reuters that Iran was considering Washington’s response to a proposal from Tehran aimed at ending the conflict, although differences between the two countries remained.

Issues discussed indirectly by the two sides have included reopening the Strait of Hormuz and lifting the U.S. blockade on Iranian ports.

The waterway remains significant for energy markets because of the volume of oil and liquefied natural gas that has historically passed through it. Shipping activity has declined during the conflict, making the outlook for transit through the strait one of the factors being monitored by oil traders.

Supply expectations had also been affected by reports that Saudi Arabia restarted its East-West Pipeline. The route provides an alternative means of transporting crude to the Red Sea without passing through the Strait of Hormuz.

Iraq had also increased oil exports, according to the supplied material.

Oil Rebound Adds to Inflation and Rate Considerations

The recovery in crude prices came alongside U.S. business activity data that exceeded expectations, prompting markets to reconsider the outlook for inflation and interest rates.

The Federal Reserve increased its benchmark rate by 25 basis points at its previous meeting, with energy prices among the economic factors under consideration.

“Higher oil prices play a role in the hawkish repricing of the Fed’s policy path, and last week’s rate hike, at a time when concerns over sticky inflation still linger,” BCA Research analysts said.

The assessment reflects BCA Research’s view of how oil prices are affecting market expectations for Federal Reserve policy. It does not establish the direction of future interest rate decisions.

U.S. Crude Stocks Increase to 426.4 Million Barrels

Domestic petroleum inventory figures provided another factor for oil markets.

U.S. crude inventories increased by 3 million barrels during the week ended September 18, reaching 426.4 million barrels, according to the Energy Information Administration.

Analysts cited in the supplied material had expected inventories to decline by 640,000 barrels.

Gasoline stocks decreased by 1.7 million barrels over the same period. Distillate inventories, including diesel and heating oil, fell by 400,000 barrels.

Separately, the supplied material cited a report that the White House was considering a 90-day restriction on U.S. diesel exports.

U.S. ultra-low-sulphur diesel futures moved lower on Wednesday following the report. The information provided did not indicate that a final decision on the proposed restriction had been made.

U.S. Treasury yields moved higher on Thursday, extending the previous session’s increase as investors assessed stronger business activity data, higher energy prices, Federal Reserve commentary and demand at a government bond auction.

The benchmark 10-year Treasury yield rose to 5.142%, its highest level since July 2007. On Wednesday, the yield had recorded its largest single-session increase since April 2025.

The 30-year Treasury yield increased to 5.443%, its highest level since 2004.

At the shorter end of the curve, the two-year Treasury yield reached 4.908%, its highest level since May 2024, after recording its largest one-day increase since March 2026 during the previous session.

Business Activity and Treasury Auction in Focus

Preliminary Purchasing Managers’ Index data indicated that U.S. business activity accelerated to its highest level in more than five years in September, supported by an increase in new orders.

The figures contributed to a reassessment of the outlook for inflation and Federal Reserve monetary policy.

Treasury markets also reacted to a five-year note auction on Wednesday that attracted lower demand, with primary dealers absorbing a larger share of the issuance.

Oil prices were another factor under consideration as markets monitored developments involving the United States and Iran and their implications for energy supplies and shipping through the Strait of Hormuz.

Iranian President Masoud Pezeshkian said Tehran would “never surrender,” while U.S. President Donald Trump had previously threatened at the United Nations to “annihilate” Iran if hostilities escalated.

The comments added to uncertainty surrounding the timing of any reopening of the Strait of Hormuz.

“We expected the 10-year bond yield to remain in the 4.00%-5.00% range this year. We aren’t giving up on that range just yet; it mirrors the range during the five years before the Great Financial Crisis. Nevertheless, the risks now clearly point to more upside in yields,” Yardeni Research said.

Markets Reassess Federal Reserve Rate Outlook

Federal Reserve officials also commented on the outlook for monetary policy following the economic data and developments in energy markets.

Fed Governor Michael Barr said policymakers would probably need to raise interest rates further to return inflation to target.

Chicago Fed President Austan Goolsbee also discussed the potential inflationary implications of higher energy prices and whether their effects could prove more persistent.

According to the supplied CME FedWatch data, markets were pricing an approximately 70% probability of another quarter-percentage-point rate increase at the Federal Reserve’s October meeting, compared with about 50% before Wednesday’s PMI release.

The figure represents market-implied pricing and does not establish that the Federal Reserve will raise rates at the meeting.

Treasury Continues Bond Buyback Programme

Selling across the Treasury curve continued as the U.S. Treasury proceeded with operations under its secondary-market buyback programme.

The Treasury indicated that it would purchase up to $6 billion of 20-year and 30-year securities during Thursday’s operations, representing its second long-term buyback operation of the month.

“A relief rally in bond prices would probably require a resolution of the war in the Middle East that would lower oil prices. Another possibility is that US Treasury Secretary Scott Bessent will act to bring bond yields down by buying back more Treasury bonds and issuing more Treasury bills,” Yardeni Research said.

These comments represent Yardeni Research’s assessment of potential market scenarios rather than confirmed future actions by the U.S. Treasury.

German Bond Yields Also Rise

Government bond yields also moved higher in the eurozone.

Germany’s 10-year Bund yield increased to 3.549%, following its largest one-day increase in more than two months during Wednesday’s session.

The two-year Schatz yield rose to 3.303%, its highest level since September 2023, after recording its largest daily increase in almost two weeks during the previous session.

Preliminary PMI data showed eurozone business activity expanding at its fastest pace in more than three years.

The figures contributed to increased market expectations that the European Central Bank could maintain restrictive monetary policy for longer or consider further interest rate increases.

Those expectations reflect market assessments and do not represent confirmed future ECB policy decisions.

European and British wholesale natural gas futures rose on Thursday as traders monitored U.S.-Iran negotiations and potential implications for liquefied natural gas shipments through the Strait of Hormuz.

The benchmark Dutch front-month TTF contract increased 1.6% to €74.50 per megawatt-hour, moving higher after recently reaching its lowest level in almost three weeks.

In Britain, the equivalent NBP wholesale gas contract also gained 1.6%, reaching 185.85 pence per therm.

The moves came as U.S. and Iranian officials remained divided over conditions for an agreement, including issues related to the Strait of Hormuz.

U.S.-Iran Negotiations Remain in Focus

U.S. President Donald Trump said at the United Nations that he could “annihilate” Iran if an agreement was not reached, while also referring to negotiations between the two sides.

Iranian President Masoud Pezeshkian subsequently rejected Trump’s threat and said Iran would not surrender, while maintaining that Tehran remained open to diplomacy.

The negotiations have implications for energy markets because the Strait of Hormuz is an important transit route for energy shipments from the Persian Gulf.

Traders are monitoring the potential timing of any reopening of the waterway and the implications for LNG cargoes, including supplies originating in Qatar.

EU Gas Storage Stands at About 70%

European gas inventories also remained in focus ahead of the heating season.

Gas Infrastructure Europe data showed EU underground storage at 70.24% of capacity as of September 23, with approximately 794.84 TWh of gas in storage.

Storage facilities were continuing to receive injections, but inventory levels remained below those recorded at the same stage of the previous year.

The combination of storage levels, LNG supply conditions and geopolitical developments remained among the factors being assessed by European gas traders as the winter heating season approaches.

Euro zone government bond yields moved higher across maturities on Thursday as investors assessed stronger business activity data from Europe and the United States and the implications for monetary policy.

Germany’s 10-year Bund yield, a benchmark for euro zone government debt, rose to 3.549%.

The move followed an increase on Wednesday, when the 10-year yield recorded its largest one-day rise in more than two months.

At the shorter end of the yield curve, Germany’s two-year Schatz yield increased to 3.303%, its highest level since September 2023. The yield had recorded its largest daily increase in almost two weeks during the previous session.

Euro Zone Business Activity Accelerates

Flash Purchasing Managers’ Index data indicated that euro zone business activity expanded at its fastest pace in more than three years.

The figures were stronger than economists had expected and contributed to changes in market expectations for the future path of interest rates.

Separate survey data from the United States also indicated continued activity in the services and manufacturing sectors.

Following the releases, money markets reduced expectations for near-term interest rate cuts.

Markets Reassess ECB Interest Rate Outlook

The economic data also contributed to increased market expectations that the European Central Bank could maintain restrictive monetary policy for longer or consider further increases in interest rates.

Market participants are assessing the potential effect of energy-related input costs on underlying inflation and the implications for future ECB decisions.

These expectations reflect market pricing rather than confirmed future policy decisions by the ECB.

U.S. Treasury Yields Add to European Bond Pressure

European bond-market moves coincided with higher yields in the United States, where investors were also reassessing the outlook for Federal Reserve policy.

According to the supplied futures-market data, markets were pricing an approximately 70% probability of a Federal Reserve rate increase in October.

This represents market-implied pricing and does not establish that the Federal Reserve will raise rates at that meeting.

French Government Bonds Remain in Focus

French government debt also remained under scrutiny as investors monitored the country’s budget discussions and debt-to-GDP projections.

The cost of insuring French sovereign debt through credit default swaps remained near multi-year highs, according to the supplied data.

The yield spread between French 10-year OATs and German Bunds remained elevated, reflecting different market pricing for the two countries’ government debt.

Electric and hybrid vehicles increased their share of the European Union car market during the first eight months of the year, while registrations of petrol and diesel models declined, according to data from the European Automobile Manufacturers’ Association.

New EU car registrations increased 5.3% year to date through August.

Stellantis (BIT:STLAM) shares were down 1.4% at 07:29 GMT following the publication of the data. The figures provided do not establish that the registration report was the sole cause of the share-price movement.

Battery-Electric Market Share Reaches 21.7%

Battery-electric vehicles accounted for 21.7% of the EU car market during the period, compared with 15.8% a year earlier.

A total of 1,641,333 battery-electric vehicles were registered during the first eight months of the year.

Among the markets highlighted in the data, battery-electric registrations increased 74.2% in France, 53.1% in Germany and 40.9% in Denmark.

The three countries together accounted for 64% of battery-electric registrations across the EU.

Hybrids Account for 36.6% of EU Market

Hybrid-electric vehicles represented 36.6% of the EU market, with 2,759,718 registrations during the period.

Registrations increased 21% in Spain and 20.5% in Italy.

Plug-in hybrid vehicles increased their market share to 10% from 8.8% a year earlier, with 758,082 units registered. The data showed increases in plug-in hybrid registrations in markets including Italy, Spain and Germany.

Petrol and Diesel Share Falls to 29%

Petrol registrations declined 18.6%, including a 35.8% decrease in France.

Diesel registrations also fell 18.6%.

Combined, petrol and diesel vehicles accounted for 29% of the EU market, compared with 37.5% a year earlier.

The data also indicated that Chinese automakers increased their presence across markets covering the EU, UK and European Free Trade Association countries.