BMW suffers ￡3.7bn slump over major problems with brakes
In This Article:
BMW will recall about 1.5m vehicles over problems with their brakes, wiping €4.3bn (￡3.7bn) off the value of the German carmaker.
The company, which also makes Rolls-Royce and Mini, said the product recall will have a “negative worldwide sales effect in the second half of the year”.
Shares plunged by as much as 9.6pc as it said it would take a “high three-digit million” euro hit to its finances in the three months to September as a result.
It also cut its profit guidance, with margins this year expected to be between 6pc and 7pc, down from 8pc to 10pc previously.
The luxury vehicle brand has already been grappling with weakening demand from China, which has afflicted the German car industry.
It reported an 8.6pc fall in net profit during the second quarter to €2.7bn, with revenues down 0.7pc to just under €37bn.
It came as Volkswagen told the German metalworkers’ union IG Metall that it would scrap a range of labour agreements including a guarantee of jobs until 2029 at six German plants.
Volkswagen is cancelling the decades-old employment guarantees as part of a cost-cutting drive that has triggered a showdown with workers as Volkswagen struggles to compete against cheaper Asian rivals.
The move follows a threat that it could shut plants on German soil for the first time in its 87-year history, which sent shockwaves through the global autos sector and prompted high-level German government concern.
The head of the company’s works council has vowed fierce resistance against lay-offs and factory closures, blaming management for Volkswagen’s ills.
Volkswagen said that it needed “to reduce costs in Germany to a competitive level, allowing us to invest in new technologies and products independently. Considering the competition and the location in Germany, this is now crucial. We must act decisively and secure a successful future”.
Read the latest updates below.
06:18 PM BST
Signing off...
Thanks for joining us today.
We will be back in the morning but you can follow our latest business news here.
05:41 PM BST
JPMorgan plunges 7pc, pulling down Wall Street indexes
Wall Street's main indexes fell this afternoon as a fall in the shares of big banks weighed on the markets.
JPMorgan Chase was down nearly 7pc - the most in over four years - after the bank's president tempered expectations about its income from interest payments. Meanwhile Goldman Sachs fell 5.3pc following chief executive David Solomon's comments that the lender's trading revenue will probably slip 10pc in the third quarter.
The S&P 500 is down 0.3pc, the Dow Jones is down 0.8pc and the Nasdaq is down 0.1pc.
05:27 PM BST
FTSE 100 hit by oil slump
The FTSE 100 dropped in value today as it was knocked by a slump in oil prices and a weak session for AstraZeneca.
Oil majors Shell and BP both dragged on the index after Brent crude oil prices sank to their lowest level since 2021.
Shell dropped by 1.5pc and BP by 2.1pc.
Brent crude fell significantly after Opec opted to cut its forecast for oil demand in 2024 and 2025, while there was also pressure from concerns over tropical storms in the Gulf of Mexico.
A barrel of Brent crude oil was down by 3.9pc to $68.58 (￡52.49) as markets were closing in London.
Elsewhere, pharmaceutical firm AstraZeneca was among the weakest performers on the FTSE 100.
The drugs giant was a drag after it revealed that one of its lung cancer treatments missed targets in recent trials.
As a result, shares in the company fell by 2.4pc.
London's top index finished 0.8pc lower.
05:17 PM BST
Oil prices tumble on growth worries
Oil's main international benchmark fell below $70 per barrel for the first time since the end of 2021 amid mounting concerns about slowing global growth.
Brent crude slumped more than three percent to below the $70 per barrel level for the since December 2021, while the main US contract, West Texas Intermediate (WTI), tumbled four percent at one point.
Oil analyst Tamas Varga at PVM Oil Associates said the OPEC oil cartel revising its demand estimates lower was one reason for the fall, but not the main one as the changes were minimal. He said:
Chinese economic woes - August crude oil imports fell 7 percent on the year - and the growing belief that the Fed will only cut 0.25 percent next week weigh more heavily in the current sell-off.
Swissquote analyst Ipek Ozkardeskaya said even mitigating factors like impending interest rate cuts and Opec+ holding off on production increases was not enough to stem the downward trend.
"Oil bulls are not willing to swim against such a strong tide - and that also adds to the momentum," she said.
05:09 PM BST
Wizz Air launches ￡135 no-frills flights to the Middle East
Wizz Air is launching ￡135 flights from London to the Middle East as the budget airline aims to attract passengers with a low-cost, no-frills alternative. Christopher Jasper reports:
The carrier has announced details of a new overnight route to Saudi Arabia which will run from March next year, with flights expected to take about seven hours on planes with seats that do not recline.
04:58 PM BST
FTSE 100 closes down
The FTSE 100 closed down by 0.8pc.
The top riser was student accommodation provider Unite Group, up 3.9pc, followed by JD Sports, up 3.4pc.
At the other end of the index, Barclays fell 3.3pc, followed by aerospace manufacturer Melrose Industries, down 2.9pc.
Meanwhile, the mid-cap FTSE 250 rose 0.03pc. The top riser was golder miner Centamin, up 22.9pc, followed real estate company Hammerson, up 2.9pc.
Foreign exchange business Alpha Group fell 11pc, followed by Ithaca Energy, down 4.9pc.
04:37 PM BST
Anglo American starts offloading divsion after rejecting takeover
Anglo American has told investors that it is to start selling shares in Anglo American Platinum (Amplats) in a move that will offload around 5pc of its share capital.
The move is part of plan to focus Anglo on growth and comes just months after the mining giant rejected a takeover offer from BHP.
At the time, Anglo American said the offer “significantly undervalues” the group. It sparked speculation that Anglo could spin-off divisions.
Duncan Wanblad, chief executive of Anglo American, said:
Anglo American Platinum is the world’s leading primary producer of platinum group metals and is well positioned to benefit from its remarkable resource endowment and the attractive structural market dynamics for its metals and their role in emissions reduction and clean energy.
04:13 PM BST
US dollar moves ahead of inflation data
The dollar rose slightly against a basket of major currencies today, consolidating Monday’s gains - but was down against the euro and the pound.
Next week, the Federal Reserve is expected to cut interest rates for the first time in more than four years.
Helen Given, foreign exchange trader at Monex USA, said:
Markets are in a bit of a holding pattern ahead of CPI (consumer price index) tomorrow, but there’s a bit of crackle in the air today from election jitters and Chinese economic sentiment.
Chinese imports increased by just 0.5pc last month, suggesting weak domestic demand. It came as exports grew at their fastest pace in nearly a year and a half, suggesting manufacturers are rushing out orders ahead of tariffs expected from a growing number of trade partners.
The headline US CPI is expected to have risen 0.2pc on a month-on-month basis in August, according to a Reuters poll, unchanged from the previous month. But on a year-on-year basis it is forecast to have gained just 2.6pc, down from 2.9pc in July.
03:56 PM BST
Abrdn and Schoders appoint new chiefs amid falling share prices
Two of Britain’s oldest asset managers, Abrdn and Schroders, have promoted their former finance bosses to chief executive amid periods of turbulence at their respective firms.
Jason Windsor, former chief financial officer at Abrdn, has been given the top job permanently. He has worked as interim chief executive since May, when Stephen Bird stepped down.
Mr Windsor takes the reins following a round of deep cost-cutting at Abrdn, which was founded 199 years ago in Edinburgh.
In January, the firm said it would slash 500 jobs after worse-than-expected outflows - when investors withdraw more cash than they put in - in the second half of 2023.
Abrdn’s shares have fallen nearly 16pc since the start of 2024, as the firm has battled to keep investors on side.
Mr Windsor said today that he sees “significant headroom” across the business and “potential to generate a step-change in performance”.
Schroders, meanwhile, said its current chief financial officer Richard Oldfield will take the top job on Nov 8, following the retirement of current boss Peter Harrison.
03:53 PM BST
Apple shares down as iPhone 16 fails to excite investors
Apple’s new iPhone 16 failed to excite investors with long-expected AI features still in test mode even as an industry-first tri-fold phone from Huawei raised the stakes in a battle to dominate the global smartphone market.
Apple’s shares fell by as much as 1.9pc on Tuesday, a day after the US tech giant unveiled its new iPhones that sport hardware-level integration for applications based on artificial intelligence but with limited changes to the external design.
The phones will use AI features - dubbed Apple Intelligence - to improve the company’s voice assistant Siri as well as enhance the camera.
Laura Martin, an analyst at US investment banking firm Needham, said:
With lots of words like “later this year” and “early next year”, the core Apple message for iPhone 16 was: next year will be better.
Apple did not say when it would move beyond the test phase, nor did it announce a partner in China to help power its AI ambitions.
The lack of AI features in the new iPhones drew scorn in China, where the government has mandated that generative AI-based chatbots need to be vetted before their public release.
The hashtag “iPhone 16 Chinese version doesn’t support AI yet” attracted 11.3m views and over 1,500 comments on Weibo.
03:39 PM BST
Volkswagen scraps decades-old German job security pact, says union
Volkswagen has told the German metalworkers’ union IG Metall it is scrapping a range of labour agreements including a guarantee of jobs until 2029 at six German plants, the union said.
Europe’s top carmaker is cancelling the decades-old employment guarantees as part of a cost-cutting drive that has triggered a showdown with workers as Volkswagen struggles to compete against cheaper Asian rivals.
Volkswagen’s move follows a threat that it could shut plants on German soil for the first time in its 87-year history, which sent shockwaves through the global autos sector and prompted high-level German government concern.
The head of the company’s works council has vowed fierce resistance against lay-offs and factory closures, blaming management for Volkswagen’s ills.
IG Metall had previously said it could consider moving to a four-day week as an alternative to closures - replicating an earlier cost-cutting drive in the 1990s.
Negotiations were due to start in mid- to late October, with strikes possible from the end of November.
Volkswagen’s troubles come at a time of economic uncertainty, with weak growth, higher energy prices and questions over trade ties with the lucrative Chinese market testing Germany’s model for consensual industrial relations.
Gunnar Kilian, Volkswagen board member, said:
We must enable Volkswagen AG to reduce costs in Germany to a competitive level, allowing us to invest in new technologies and products independently. Considering the competition and the location in Germany, this is now crucial. We must act decisively and secure a successful future.
03:35 PM BST
Nasdaq and the S&P gain on megacap boost
The S&P 500 and the Nasdaq rose on Tuesday as most megacap stocks gained, with focus now moving to key inflation data later this week that could provide more clarity on the extent of the Federal Reserve's expected interest rate cut on Sept 18.
The Nasdaq is up 0.5pc and the S&P is up 0.1pc, but the Dow Jones Industrial Average of 30 leading US companies is down 0.5pc.
Apple is down 0.6pc, after revealing a new product range losing its fight against EU competition regulators.
But EV maker Tesla rose 3pc, leading gains among megacaps and growth stocks.
03:30 PM BST
Oil falls below $70 a barrel for first time in three years
The price of oil has dropped below $70 a barrel for first time in three years amid deepening worries about slowdowns in the US and Chinese economies.
Brent crude, the international benchmark, has fallen as much as 2.9pc today to as low as $69.78 as traders were also concerned about high supplies.
Before making gains on Monday, oil prices had declined for six consecutive trading sessions.
Norbert Ruecker, an analyst at Julius Baer, said:
The tone of the oil market remains downbeat.
At this point, let me thank you for following today's markets blog so far. Alex Singleton is taking over and will keep you informed into the evening.
03:13 PM BST
Apple shares drop after it loses legal battle over €13bn Irish taxes
Apple shares fell after the European Court of Justice ruled that the iPhone maker must pay €13bn (￡11bn) in back-taxes to Ireland.
The tech giant dropped as much as 1.9pc after the opening bell, wiping $63.6bn (￡48.7bn) off its value, as Wall Street stocks mostly climbed for a second straight session ahead of the US presidential debate.
The Nasdaq Composite was up 0.6pc and the S&P 500 had gained 0.3pc, although the Dow Jones Industrial Average fell 0.4pc.
LBBW's Karl Haeling said: "There's just seems to be a lot of underlying bullishness among investors."
The first, and perhaps only, debate between Vice President Kamala Harris and former President Donald Trump will take place today night in Philadelphia.
Markets are also looking ahead to Wednesday's release of consumer inflation data. The Fed is expected to lower interest rates later this month.
02:54 PM BST
BMW product recall over braking issues wipes ￡3.7bn off carmaker
BMW will recall about 1.5m vehicles over problems with their brakes, wiping €4.3bn (￡3.7bn) off the value of the German carmaker.
The company, which also makes Rolls-Royce and Mini, said the product recall will have a “negative worldwide sales effect in the second half of the year”.
Shares plunged by as much as 9.6pc as it said it would take a “high three-digit million” euro hit to its finances in the three months to September as a result.
It also cut its profit guidance, with margins this year expected to be between 6pc and 7pc, down from 8pc to 10pc previously.
The luxury vehicle brand has already been grappling with weakening demand from China, which has afflicted the German car industry.
It reported an 8.6pc fall in net profit during the second quarter to €2.7bn, with revenues down 0.7pc to just under €37bn.
Rival carmaker Volkswagen said last week it was considering closing factories in Germany for the first time in its 87-year history.
02:35 PM BST
US stocks rise ahead of inflation data
Wall Street's main indexes opened higher ahead of key inflation data later this week that could cement bets on the size of the interest rate cut that the Federal Reserve is expected to deliver next week.
The Dow Jones Industrial Average rose 86.9 points, or 0.2pc, at the open to 40,916.5.
The S&P 500 rose 19.5 points, or 0.4pc, at the open to 5,490.51​, while the Nasdaq Composite rose 65.0 points, or 0.4pc, to 16,949.641.
02:33 PM BST
Pound flat ahead of GDP figures
Sterling has given up its gains against the dollar and the euro ahead of figures which will show how fast the economy is growing under the Labour government.
Investors will closely watch gross domestic product figures due Wednesday before this month's Bank of England next interest rate-setting meeting.
Sanjay Raja, senior economist at Deutsche Bank, said the UK economy was likely to expand by 0.3pc month-on-month after flatlining in June, as activity would rebound after a pick-up in retail and leisure services.
Sterling was little changed at $1.307, after reaching $1.311 earlier in the session.
The euro was flat at 84.4p.
02:07 PM BST
Relax financial rules to boost growth, says Bank of England official
The Bank of England should consider relaxing financial regulations to boost economic growth, one of its deputy governors has said.
Sarah Breeden's comments come ahead of the announcement of the UK’s plans to implement the latest global bank capital rules.
Many in the industry fear the regulations will put them at a disadvantage to international rivals.
Ms Breeden said: “Policymakers should take seriously any opportunities to increase the system’s contribution to growth if it can be done in a way that doesn’t undermine financial stability.”
She said changes to UK pensions rules could help lift the economy by striking a more “optimal balance between pensioner protection, economic growth and financial stability”.
01:47 PM BST
Man charged with running network of crypto ATMs
The UK's financial watchdog has for the first time charged a man with operating a network of cryptocurrency ATMs.
Olumide Osunkoya, 45, is due to appear at Westminster Magistrates' Court on September 30 on charges of running multiple crypto ATMs without registering them with the regulator.
Crypto ATMs are machines where you can buy and sell cryptocurrencies - which is digital money, such as bitcoin or ethereum - in exchange for cash.
They are legal in the US, where there are thousands of machines offering withdrawals in scores of different crypto tokens, according to tracking website Coin ATM Radar.
But in the UK, they must be registered with the Financial Conduct Authority (FCA). None have currently been given registration.
The FCA accused Mr Osunkoya, a London resident, of running a network of machines which processed ￡2.6m in crypto transactions between December 2021 and September 2023.
The price of one bitcoin has doubled to over ￡43,600 in the last 12 months, up from ￡20,600 this time last year.
01:37 PM BST
Slowing wage growth will smooth path for interest rate cuts, say economists
Slowing UK wage growth should help pave the way for a further interest rate cut by the end of the year as it helps keep inflation in check, according to experts.
Official data today showed that regular average earnings growth eased back to a fresh two-year low of 5.1pc in the three months to July, while total pay growth including bonuses fell to 4pc - the lowest level for nearly four years.
Rate-setters on the Monetary Policy Committee (MPC) at the Bank of England have been closely watching wage data in their quest to cool inflation, and money markets indicate they will cut rates at least once more by the end of the year.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said: "The MPC will be encouraged by slowing private sector pay growth amidst signs that the labour market continues to loosen gradually without collapsing, which gives the green light to another interest rate cut in November."
Monica George Michail, NIESR associate economist, said: "This is positive news for inflation and might provide the Bank of England with increased confidence regarding interest rate cuts."
Jack Kennedy, senior economist at Indeed, added: "The gradual easing in wage growth paves the way for further Bank of England interest rate cuts before the end of the year."
01:22 PM BST
Shopping centre owner’s shares plunge as bidder pulls out
Shopping centre owner Capital & Regional's share price dropped after a property company which had been touted as a potential buyer said it is not interested.
Praxis Group said it has "no intention to make an offer" for Capital & Regional, which runs shopping centres in Edinburgh, Hemel Hempstead, Ilford, Maidstone, Walthamstow and Wood Green.
Praxis had said in July it was interested in an acquisition, and it had been given a September 12 deadline to make a formal offer alongside NewRiver REIT, which had also expressed interest.
Capital & Regional's shares were down 7.5pc after the statement from Praxis.
The shopping centre owner has been looking for a buyer since May, following a period of growing momentum in the number of consumers visiting its properties.
Footfall at Capital & Regional-owned shopping centres rose 1.5pc last year to 44.5m visits, it said.
12:57 PM BST
Russian oil revenues hit seven-month low
Russia's oil revenues have hit their weakest level since February amid declining crude prices.
Russia’s flagship Urals crude has dropped back down towards the $60-a-barrel cap imposed by the G7 after Vladimir Putin's decision to invade Ukraine.
Urals from Russia’s Baltic ports traded at an average $60.12 on Friday, Argus Media data showed.
It comes as the price of Brent crude, the international benchmark, has dropped to its lowest levels in three years amid concerns about demand from the US and China.
In a blow to the Kremlin, Opec's decision to postpone plans to increase production until December means Moscow will actually have to cut production in October and November to make up for pumping above its target earlier this year.
Brent crude was last down 1.3pc below $71 a barrel, while US-produced West Texas Intermediate was 1.4pc lower below $68.
12:33 PM BST
We will abandon the North Sea unless Reeves reverses tax raid, says UK oil boss
A leading UK oil and gas producer says it will abandon investment in the North Sea unless Rachel Reeves reverses her tax raid on the industry.
Our energy editor Jonathan Leake has the details:
Serica Energy, which produces 5pc of the UK’s gas and employs 1,000 people, said new investments would become unviable if the industry is stripped of its allowances, as the Chancellor has pledged.
12:06 PM BST
Bosses do not want to rip up employee rights, Starmer tells TUC Congress
Sir Keir Starmer has insisted bosses are not "knocking on my door saying they want to rip up employee rights" as he defended his plan to tackle bad working practices.
The Prime Minister, who vowed to "rewrite the rules of our economy" and forge a new partnership between government, business and workers, rejected criticism of his plans - which the Tories have dubbed "French-style union laws".
The Institute of Directors (IoD) has warned that business leaders will be less likely to hire new workers as a result of the Government's planned employment rights legislation.
It comes as the latest official figures show the unemployment rate among 18 to 24-year-olds - a key demographic for hospitality and retail businesses - has hit its highest level in three years.
Sir Keir, in the first TUC Congress address by a prime minister since 2009, told unions there was a "mood of change" in the business world. He told trade unionists:
Business leaders are not knocking on my door saying they want to rip up employee rights. They don't tell me the problems they face will be solved by coming for trade unions.
11:52 AM BST
Britain’s most-valuable company loses ￡11bn in value
More than ￡11bn was wiped off the value of Britain’s most valuable company after disappointing results of a drugs trial.
AstraZeneca shares plunged by as much as 5.6pc after detailed study results showed its experimental lung cancer drug did not significantly improve patients' overall survival results.
The pharma giant saw its market valuation drop to ￡188bn as it became the biggest loser on the FTSE 100 today.
Its experimental cancer drug Dato-DXd helped some people in the trial live longer, but the results across all patients were not statistically significant.
Morgan Stanley’s Shinichiro Muraoka told clients the results were “a bit disappointing”, while Hiroshi Wada, an analyst at SMBC Nikko Securities, said the study's outcome was “somewhat negative”.
11:38 AM BST
Wickes says DIY market ‘stabilising’ after tough start to the year
DIY chain Wickes said trading picked up in the third quarter after half-year profits dived by a quarter amid a tough home improvement market.
The retailer saw underlying pre-tax profits slump 24.8pc to ￡23.4m in the six months to June 29 as like-for-like sales of larger design and installation ranges tumbled 18.3pc.
This dragged overall comparable store sales down by 3.9pc, offsetting a 0.6pc increase across retail sales to DIY customers and local trade professionals.
But Wickes said trading had improved so far in the third quarter, with design and installation sales "stabilising", helping shares lift 1.3pc.
It said the group remains on track for full-year pre-tax profit expectations of ￡40.4m.
"Whilst the market outlook remains uncertain, current trading along with the planned action taken to mitigate the impact of inflation underpins management's outlook for adjusted pre-tax profit for full-year 2023-24," Wickes said.
11:21 AM BST
GB News owner Paul Marshall completes ￡100m deal for The Spectator
GB News owner Sir Paul Marshall has sealed his takeover of The Spectator in a deal worth ￡100m.
Our reporter James Warrington has the details:
The hedge fund billionaire will take control of the historic political magazine, which was put up for sale alongside The Telegraph by Abu Dhabi-backed fund RedBird IMI earlier this year.
Read how he made his fortune and his plans.
11:08 AM BST
China stocks near seven-month low amid US trade tensions
Chinese stocks ended slightly higher after its blue-chip index hit a seven-month low in the previous session, as investors assessed the latest trade data and escalating US-China trade tensions.
Artificial intelligence stocks rose 1.9pc to lead the A-share gains.
Hong Kong shares closed up thanks to the jump in Alibaba as it was added to the Stock Connect Scheme, allowing mainland investors to buy the stock.
China's exports grew at their fastest pace since March 2023 in August, while imports missed forecasts amid weak domestic demand.
It suggests manufacturers are rushing out orders ahead of tariffs expected from a growing number of trade partners.
Analysts warn mounting trade barriers are emerging as another major obstacle despite strong August exports.
Zhang Zhiwei, chief economist at Pinpoint Asset Management, said: "The question is how long exports can stay strong given the weakening US economy and the rising trade tension."
10:54 AM BST
Business Secretary ‘really concerned’ by unemployment figures
Business Secretary Jonathan Reynolds said he is "really concerned" after unemployment figures showed an increase in the number of young people out of work.
The rate of unemployment was 4.1pc over the three months to July, dropping from 4.2pc over the previous three months, according to ONS data.
However, the rate of unemployment among 18 to 24-year-olds rose to 13.3pc, its highest rate since the height of Covid lockdowns in the three months to January 2021.
Asked about job vacancies, Mr Reynolds told LBC:
I am really concerned by the state of the labour market, by the rise of people not working after the pandemic... the reason we want to revive the NHS, get people back to work that benefits the economy, the economy produces the revenue to pay for a better NHS.
10:37 AM BST
Wizz Air to launch flights with new extra-long jet from UK to Saudi Arabia
Wizz Air has announced it will launch flights between London Gatwick and Jeddah in Saudi Arabia using a new Airbus A321XLR plane from March next year.
The enhanced fuel capacity of the jets means they will have a maximum range of up to 11 hours flying time and burn up to 30pc less fuel per seat than previous generation aircraft, according to Airbus.
Wizz Air has 47 of the planes on order and expects to begin receiving them from February next year.
10:18 AM BST
Elon Musk’s SpaceX poised to launch billionaire astronaut into space
Elon Musk’s SpaceX is preparing to launch a billionaire astronaut further from Earth than any human has travelled in half a century.
Our senior technology reporter Matthew Field is covering the launch live:
After several delays, the US space company will fire four astronauts, including ultra-wealthy entrepreneur Jared Isaacman, aboard one of its Falcon 9 rockets on a five-day mission into space.
Follow live updates on the launch.
10:12 AM BST
Apple loses court battle over €13bn Irish tax bill
The European Court of Justice has delivered two major victories for Brussels by ruling against Apple and Google in separate legal sagas with billions of euros at play.
The decisions give a boost to the bloc's outgoing competition chief, Margrethe Vestager, who had suffered a series of setbacks in EU courts against her decisions.
Concluding a long-running legal battle, the European Court of Justice, the bloc's highest court, ruled that the iPhone maker must pay €13bn (￡11bn) in back-taxes to Ireland.
"The Court of Justice gives final judgment in the matter and confirms the European Commission's 2016 decision: Ireland granted Apple unlawful aid which Ireland is required to recover," the court said in a statement.
Minutes later, the court also upheld a €2.4bn (￡2bn) fine against Google, one of a string of high-profile EU competition cases targeting the tech giant.
The court dismissed an appeal by Google and its parent company Alphabet against the fine, slapped on the search engine in 2017 for abusing its dominant position by favouring its own comparison shopping service.
09:59 AM BST
Ocado holds place as Britain’s fastest-growing grocer
Ocado was the fastest-growing grocer in Britain for the seventh month in a row, industry data show.
Shares rose as much as 2.5pc as sales soared by 12.9pc, the fastest since May 2021, outpacing the wider online grocery market where sales grew by 4.4pc compared with a year ago.
Discounter Lidl's sales surged by 9.1pc with visitor numbers boosted through digital vouchers for its bakery products.
The lower-cost supermarket has seen its share of the overall market edge up every month since April 2021 and now accounts for 8pc of the market.
Asda, Britain's third-biggest supermarket, lagged behind rivals with sales dipping by 5.6pc and its market share 1.2 percentage points lower than the same period last year.
It comes as shoppers continue to be weighed down by worries about higher prices in supermarkets, after a prolonged period of higher inflation.
Fraser McKevitt, head of retail and consumer insight at Kantar, said this was "their second biggest financial worry, only behind home energy bills".
09:46 AM BST
Sales of ‘lunchbox favourites’ surge as pupils go back to school
Households stocking up on lunchbox essentials helped drive an uptick in grocery spending last month, while price inflation continues to ease across the country, figures show.
Grocery price inflation fell to 1.7pc in August after rising in July for the first time in more than a year, according to data from analysts Kantar.
The back-to-school period saw sales of fromage frais, cereal and fruit bars lift 14pc over the last week of August, compared with a year ago, while chocolate biscuit bars also jumped by 12pc.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: "The demand has picked up once again for lunchbox favourites as summer draws to a close and parents stock up ahead of the new school year."
Take-home sales across grocers rose by 3pc in the four weeks to September 1, compared with last year, Kantar found.
The analysis covers the buying habits of some 30,000 households across Britain and does not include snacks and meals bought to be consumed on the go.
09:34 AM BST
Google loses appeal against €2.4bn EU fine
Google has lost its final legal challenge against a €2.4bn (￡2bn) EU fine for giving its own shopping recommendations an illegal advantage over rivals in search results, ending a long-running competition case.
The European Union’s Court of Justice upheld a lower court’s decision, dismissing the company’s appeal against the penalty from the European Commission
The commission's original decision in 2017 accused the Silicon Valley giant of unfairly directing visitors to its own Google Shopping service to the detriment of competitors.
It was one of three multibillion-euro fines that the commission imposed on Google in the previous decade as Brussels started ramping up its crackdown on the tech industry.
Google made changes to comply with the commission’s decision requiring it to treat competitors equally. The company started holding auctions for shopping search listings that it would bid for alongside other comparison shopping services.
At the same time, the company appealed the decision to the courts. But the EU General Court, the tribunal's lower section, rejected its challenge in 2021 and the Court of Justice’s adviser later recommended rejecting the appeal.
Google is also appealing the other two EU antitrust penalties involving its Android mobile operating system and AdSense advertising platform.
09:23 AM BST
Reeves will raise taxes by ‘at least’ ￡15bn-￡20bn, says Wall Street giant
Rachel Reeves will raise taxes by “at least” an extra ￡15bn to ￡20bn on top of Labour’s manifesto commitments during her Budget next month, a Wall Street bank has warned.
Goldman Sachs said the Chancellor would likely target capital gains tax and inheritance tax relief as ways to raise money when she delivers her speech on October 30.
Analysts said the task for the Treasury has been “complicated” by Labour’s manifesto commitments, in which the Government ruled out increases in income tax, National Insurance, VAT, and corporation tax.
Instead, the bank thinks Ms Reeves will opt for a series of smaller tax-raising measures, which could also alter tax reliefs on pension contributions.
Goldman warned that this risks reducing demand in Britain’s economy “partially offsetting the expansionary effects of the increase in spending”.
Analyst Sven Jari Stehn said: “We expect fiscal policy to remain a modest drag on demand in the coming years.”
09:03 AM BST
Gas prices rise as cold snap arrives
Gas prices have edged up further as the first cold weather of the autumn hits Europe.
Dutch front-month futures, the continent’s benchmark, rose as much as 1.2pc towards €38 per megawatt hour.
It has climbed for three consecutive sessions, leaving prices elevated for the time of year, although stronger wind power generation is keeping the market in check.
Stockpiles are also 93pc full.
08:43 AM BST
FTSE 100 slips as chances of faster interest rate cuts fade
The FTSE 100 inched lower even as lower unemployment failed to increase the chances of faster interest rate cuts by the Bank of England.
The blue-chip index fell 0.64pc after logging its best day in over a month on Monday. The mid-cap FTSE 250 was up 0.2pc.
AstraZeneca, the most-valuable company on the FTSE 100, shed 5.4pc after detailed results from one of the drugmaker's key lung cancer trials on Monday did not significantly improve overall results in patients.
Heavyweight energy shares slipped as much as 0.5pc, tracking lower oil prices.
Official figures showed pay growth cooled in Britain the three months to July to a more than two-year low, while employment levels rose.
Among other stocks, Centamin surged 23.9pc to the top of the FTSE 250 after global miner AngloGold Ashanti said it will buy the gold miner in a $2.5bn (￡1.9bn) deal.
IQE tumbled 14.3pc after the semiconductor wafer maker said it saw its annual performance at the lower end of analysts' expectations.
08:29 AM BST
Huawei unveils triple-folding phone
Chinese tech giant Huawei has unveiled its new smartphone, billed as the world's first triple-folding phone, just hours after US competitor Apple lifted the curtain on its new iPhone built for AI.
The Mate XT was officially launched in a keynote presentation by Huawei executive Richard Yu at the company's headquarters in the southern city of Shenzhen.
It goes on sale on September 20.
08:13 AM BST
Employment rights changes putting companies off hiring staff, say bosses
Businesses are less likely to hire new staff amid fears over the impact of the Government’s employment rights reforms, bosses have said, as youth unemployment hit its highest level in more than three years.
Alexandra Hall-Chen of the Institute of Directors said:
While the number of vacancies has reduced for the 26th consecutive quarter, for those employers looking to hire the decrease in the unemployment rate means that they are still struggling to access the labour and skills they need to grow and thrive.
08:04 AM BST
UK stocks edge lower as jobs market weakens
The FTSE 100 edged lower as trading began after official jobs figures were unlikely to speed up the pace of interest rate cuts.
The UK's blue-chip stock index fell 0.3pc to 8,245.92 while the midcap FTSE 250 fell 0.2pc to 20,617.64.
07:59 AM BST
Robinsons maker’s ￡3.3bn takeover faces competition probe
In corporate news, Carlsberg's ￡3.3bn deal to buy Robinsons squash maker Britvic could face a probe over potential concerns that it will reduce competition across the UK market.
Our reporter James Warrington has the details:
The Competition and Markets Authority (CMA) said it was gathering information before kickstarting a formal investigation into the tie-up.
07:54 AM BST
Jobs market ‘continues to lose steam’, say economists
Yael Selfin, chief economist at KPMG UK, said the latest ONS figures show the jobs market "continues to lose steam”, but is unlikely to speed up the pace of interest rate cuts.
He said:
Slowing labour market activity continues to filter through, with wage growth expected to moderate further over the coming months, despite the recently announced above inflation public sector pay settlement.
07:47 AM BST
Pound rises amid falling unemployment
The pound has edged higher as Britain's overall unemployment rate fell to a six-month low.
Sterling was up 0.2pc against the dollar to just shy of $1.31 as the rate eased to 4.1pc in the three months to July, its lowest since the three months to January.
The pound gained 0.1pc versus to euro, which is worth 84.3p, as the jobs figures dampened hopes for interest rate cuts.
07:43 AM BST
Job vacancies decline to lowest in two years
The number of job vacancies fell for the 26th consecutive period in the three months to August, the ONS said.
The total number of vacancies has declined by an estimated 447,000 since its peak in March to May 2022.
Liz McKeown, director of economic statistics at the Office for National Statistics (ONS), said: "Vacancies have fallen again, this quarter across every industry.
"However the total number still remains a little above its pre-pandemic level."
07:38 AM BST
Pay growth ‘slowed markedly’, says ONS
Liz McKeown, director of economic statistics at the Office for National Statistics (ONS), said:
Growth in total pay has slowed markedly again as one-off payments made to many public sector workers in June and July last year continue to affect the figures.
07:34 AM BST
Wages grow at slowest pace in two years
UK earnings growth has slowed to a two-year low but the unemployment rate edged back in a more encouraging sign for the jobs market, according to official figures.
The Office for National Statistics (ONS) said that regular wage growth fell to 5.1pc year on year over the three months to July, marking the lowest level since the quarter to July 2022.
With inflation taken into account, UK workers saw their pay increase by 3pc, down from 3.2pc in the previous three months.
The ONS also said the rate of unemployment was 4.1pc over the three months to July, dropping from 4.2pc over the previous three months.
The latest labour market figures are seen as being particularly important, as the rise in total earnings is used to determine the "triple lock" guarantee for the state pension.
Read on for details on the triple lock.
07:33 AM BST
Youth unemployment soars to three-year high
Youth unemployment has surged to its highest level in three years, official figures show, dealing a blow to Sir Keir Starmer’s hopes of getting more people back into work.
The unemployment rate for 18 to 24-year-olds rose to 13.3pc in the three months to July, according to the Office for National Statistics.
The rate was the highest since the three months to January 2021, when Britain was at the height of Covid lockdowns.
The Prime Minister in July announced Skills England - one of his flagship projects aimed at getting people back into work.
Across Britain, the rate of UK unemployment fell to 4.1pc, down from 4.2pc in the previous three months.
07:23 AM BST
Good morning
Thanks for joining me. Youth unemployment has hit its highest level since Britain was gripped by Covid lockdowns in a blow to the Government.
The unemployment rate for 18 to 24-year-olds jumped to 13.3pc in the three months to July, its steepest since the period between October 2020 and January 2021.
5 things to start your day
1) Reeves urged to mount ￡9bn tax raid on staff pensions | Left-leaning think tank says scrapping national insurance relief would raise billions
2) Scramble to avoid capital gains raid drives cash into tax-friendly tech scheme | Record sums funnelled into Seed Enterprise Investment as wealthy race to sell assets
3) Deloitte monitor staff logging in from abroad amid crackdown on remote work | Consulting giant accesses employees’ internet activity to enforce home working rules
4) Ben Wright: What a leaky petrol station tells us about the death of accountability | Agencies’ failure to take responsibility for Bramley fuel leak symbolises a wider problem
5) Matthew Lynn: Mario Draghi can’t save the EU’s failing economy | Brussels is yet again relying on more integration, more subsidies, and more protectionism
What happened overnight
Asian shares were trading mostly higher after a rally on Wall Street that regained some of the losses from the market’s worst week in nearly a year and a half.
Japan’s benchmark Nikkei 225 rose nearly 0.5pc in morning trading to 36,384.73.
Australia’s S&P/ASX 200 gained 0.6pc to 8,033.10, while South Korea’s Kospi inched up nearly 0.1pc to 2,537.85.
Hong Kong’s Hang Seng added 0.3pc to 17,248.58. The Shanghai Composite declined 0.5pc to 2,722.01.
On Wall Street, all three major US stock indexes surged 1.2pc. The S&P 500 and the Dow ended a four-day losing streak, bouncing back from their biggest weekly percentage losses since March 2022.
The Dow Jones Industrial Average rose reaching 40,829.69, the S&P 500 closed at 5,471.07, and the Nasdaq Composite closed at 16,884.60.
In the bond market, the yield on benchmark 10-year US Treasury notes rose to 3.70pc, from 3.71pc late on Friday.