The price of oil hit a new high on Monday, with the benchmark surpassing $70 a barrel. Oil prices rallied to a high that has not seen since 2014, primarily driven by troubles in Venezuela and concerns over the US reimposing sanctions in Iran. Donald Trump’s decision over whether the US will withdraw from a 2015 international agreement with Iran is due May 12. The US President has not confirmed what he will decide by May 12 but has suggested plans to withdraw, saying that the accord is “a horrible agreement for the United States.” “That doesn’t mean I wouldn’t negotiate a new agreement,” he added. The head of research for the Middle East and North Africa region at MUFG bank, Ehsan Khoman, said: “There is some scope for profit-taking now that prices are at 42-month highs but that is been overshadowed by the potential re-imposition of sanctions on Iran.” Ole Hansen, head of the commodity strategy at Saxo Bank A/S in Copenhagen, said: “The market at this stage is pricing in the US stepping away from the nuclear deal, so it’s allowed the risk premium to build even further. If Trump should decide either to postpone or go for a surprise renegotiation of the deal, the oil price could slump by $5 quite easily.” Iran’s President, Hassan Rouhani, said that if the US is to leave the agreement it will “entail historic regret”. “We have plans to resist any decision by Trump on the nuclear accord,” the President said. “Orders have been issued to our atomic energy organisation … and to the economic sector to confront America’s plots against our country. America is making a mistake if it leaves the nuclear accord. If America leaves the nuclear accord, this will entail historic regret for it.” In the lead up to Trump’s decision, Boris Johnson has travelled to the US to urge the President to not scrap the deal. Brent Crude was 1.14 percent and reached $75.64 per barrel – the highest level since November 2014. U.S. West Texas Intermediate (WTI) crude futures increased by 85 cents to $70.57.  

John Lewis Partnership has denied speculation that Amazon approached the group last year in a bid to takeover Waitrose. According to reports over the weekend, a senior Amazon (NASDAQ: AMZN) executive had made contact with John Lewis (LON: JLH) over a potential deal but talks had been blocked by the board. Since Amazon’s online delivery service, Amazon Fresh, was launched in the UK two years ago analysts have suggested the internet giant could be interested in buying up a UK supermarket chain. John Lewis Partnership chairman, Sir Charlie Mayfield, denied any approach from Amazon. “These times are ripe for speculation but there has been no approach to the Partnership by Amazon regarding Waitrose and nor would I expect there to be,” he said. Amazon said that it did not comment on speculation. Amazon has been rumoured to make a grocery acquisition in the UK after its $13.7 billion (£10.12 billion) purchase of Whole Foods Markets in the US. John Lewis has vehemently denied the approach from Amazon. Because the group is owned by its employees, a potential sale would have been very controversial. Amazon’s growing strength as a retailer has been considered a threat to the market. The proposed £15 billion merger between Sainsbury’s (LON: SBRY) and Walmart-owned Asda (NYSE: WMT) is understood to be an attempt to create and new grocery superpower and fight off Amazon’s growing strength. According to Terry Hunter, the managing director of digital commerce group Astound, the proposed Sainsbury-Asda merger “shows that the two chains feel they will be stronger together as they reposition themselves to combat the growing threat from the low-cost German supermarkets and Amazon.”    

Nestle (VTX: NESN) will pay Starbucks $7.2 billion (£5.2 billion) in cash to sell the company’s coffee around the world. The Swiss-based food giant will own the rights to market Starbucks coffee (NASDAQ: SBUX) in a “significant step” for the group. “This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle,” said Kevin Johnson, Starbucks chief executive. Mark Schneider, Nestle’s chief executive, announced the group’s third biggest acquisition with plans to boost the company’s profits through expansion. Schneider described the deal as “a great day for coffee lovers around the world”. The Nescafe and Nespresso owner said that 500 Starbucks employees will transfer over to Nestle business but will remain located in Seattle. Matthew Barry, an analyst at Euromonitor, said the deal was important for Nestle who is attempting to reinforce its position as the world’s biggest coffee company. “Nestle is far and away the largest hot drinks company globally, with more in sales than the next five largest hot drinks companies combined.” “However, Nestle’s leadership position is less secure than it once was,” he said. Despite the deal between the coffee giants, a Nestle source revealed that the Nestle name will not appear on Starbucks products in order to avoid consumers “to perceive that Starbucks is now part of a bigger family.” Nestle expects the deal to contribute positively to its earnings per share and growth targets in 2019. Previous deals with Nestle include the 68 percent stake it purchased in Blue Bottle Coffee for $425 million last year. The group also sold its US sweets and chocolate business to Ferrero Group for 2.7 billion Swiss francs (£1.9 billion). Nestle shares rose 0.5 percent in early trading.  

BT (LON: BT.A) is set to announce plans to 6,000 jobs worldwide in a new £500 million cost cuttings drive. The telecoms giant is expected to reveal the news next Thursday alongside their annual financial results. First revealed by the Financial Times, the company is attempting to rebuild confidence among investors following the Italian accounting scandal. Chief executive Gavin Patterson will announce the group’s plans to cut around six percent of the company’s 98,000 global workforce. The additional cuts will result in 10,000 jobs cut in the last year. If the plans take place, it will be the largest round of redundancies in almost a decade. The group announced plans to cut 4,000 roles last May in order to save £300 million over the next two years. The jobs affected are likely to be managerial and back-office personnel. The most recent cost-cutting drive is in order to make up for the Italian accounting scandal, which cost the group £530 million to resolve. Last month, boss Graham Sutherland stepped down allowing wholesale head Gerry McQuade to take control. “I’d like to thank Graham [Sutherland] for all he has done for BT over the past 12 years. During his time as CEO of the businesses in Ireland and MD of BT Business, he materially improved the profitability and performance of those divisions,” said Patterson. “Most recently as CEO of BT business and public sector he has successfully led the integration of EE business into BT and the turnaround of our public sector division. I wish him all the very best for the future.”