No interest rate cut till 2025, predicts City bank
In This Article:
The Bank of England will not cut interest rates next year, City economists have predicted, as inflation is expected to remain persistently high.
Policymakers will not be able to reduce rates from their 15-year highs of 5.25pc until 2025, according to forecasters at Bank of America.
Money markets think that the Bank of England will begin cutting interest rates by June next year after inflation fell by more than expected to 4.6pc in October.
The Bank’s chief economist Huw Pill said earlier this month that investors would not be “unreasonable” to expect cuts by the summer, while investment bank Goldman Sachs said last week that the first cuts could come as soon as February.
The decline in the pace of price rises has emboldened Rishi Sunak today to say that he Government is now in a position to start cutting taxes.
However, Bank of America thinks mortgage holders will have to wait until February 2025 for a first reduction in borrowing costs, with rates to come down by a full percentage point to 4.25pc during the year.
However in a note to clients, Agne Stengeryte rates strategist Agne Stengeryte warned: “We see a tougher UK inflation outlook then the Bank of England and forecast the first cut in February 2025.”
Read the latest updates below.
06:02 PM GMT
Wrapping up
Thanks for joining us today. My colleague Chris Price will be back in the morning with the latest from the markets and the world of business. I’ll leave you with a couple of the latest business articles from The Telegraph today:
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Javier Milei isn’t ‘hard Right’. He could be Argentina’s free market saviour
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North Sea oil spill risk as companies leave hundreds of old wells unplugged
05:28 PM GMT
Copper rises as commodity markets gain greater optimism
The price of copper rose 2pc, to 8,432.00 a ton, on the London Metal Exchange today, as commodities markets reflected the expectations that interest rates have peaked and that demand from China’s construction industry would rebound.
The movement follows copper rising 2.9pc last week. The commodity is now at its highest level for 10 weeks.
05:02 PM GMT
FTSE 100 down, FTSE 250 up at market close
FTSE 100 close down 0.11pc at 7,496.36, while the FTSE 250 rose 0.17pc to 18,599.05.
The biggest stock rise was Diploma, which rose 11.19pc. Diploma sells equipment, consumables and instrumentation for hospitals and other industries. The shares rose after the firm reported “strong organic growth” of 8pc.
The biggest decline was seen in the shares of the international equipment rental company Ashtead Group, which cut its profit guidance, saying that there was lower demand for its emergency response products. It also reported that its film and television production division has been affected adversely by strikes in north America. It closed 10.49pc down.
04:38 PM GMT
Big Four account firm EY plans to ditch London HQ
EY look set to move out of its headquarters, as demand for office space in London plunges in response to working from home. Adam Mawardi and Riya Makwana have the story:
EY is in talks to abandon its London headquarters in the latest sign of an accelerating office slump as working from home transforms professional life.
04:24 PM GMT
Britain’s competition regulation plans tweaks
The competition regulator wants to improve how it interacts with companies planning mergers, according to reports.
The Competition and Markets Authority was criticised after blocking a deal between Microsoft and Activision Blizzard - before then giving it the green light after Microsoft agreed some remedies.
At the time the deal was blocked, Microsoft president Brad Smith said:
The CMA’s decision rejects a pragmatic path to address competition concerns and discourages technology innovation and investment in the United Kingdom.
According to Reuters, Martin Coleman, Panel Chair of the CMA, said merging parties would in future have an opportunity to make representations after seeing an interim CMA report:
The hearing will give the group members an opportunity to question the merger partners as now, but it will also allow more time for the parties to make submissions and for the adoption of a more discursive approach.”
04:13 PM GMT
The UK Treasury extends investment zone programme until 2031
The government is doubling-down on policy pioneered by the Thatcher administration which is aimed at winning inward investment.
Its investment zones programme will now be extended until 2031 and will offer a range of tax benefits in areas needing redeveliopment. These will include lower business rates, national insurance contributions and tax relief on capital expenditure and the purchase of commercial property.
The 12 areas to benefit will include places in South Yorkshire, where aircraft manufacturer Boeing is based and Liverpool.
The Thatcher administration introduced enterprise zones, which saw the revival of depressed areas such as London Docklands, and the policy was revived in recent times during David Cameron’s premiership.
03:58 PM GMT
Marks & Spencer given green light to challenge Michael Gove in court
M&S has won a first step in overturning the “senseless” decision to reject its Marble Arch store plans, writes Hannah Boland:
Marks & Spencer has been given the green light to take Michael Gove to court over his decision to block a multimillion-pound redevelopment of its flagship Marble Arch store.
03:54 PM GMT
Argentinian stocks rise after Javier Milei wins election
Argentinian stocks listed on in the US rose today, after Javier Milei won the presidential election. Mr Milei, whose leadership has been endorsed by Donald Trump, is seen as a free-marketeer and has pledged to introduce the US dollar as a way of combatting runaway inflation.
Energy company YPF rose a striking 35pc, while a wider indication of the market can be seen from the Global X MSCI Argentina exchange traded fund. It jumped as much as 13pc today, the biggest same-day increase on record.
03:36 PM GMT
Handing over
I’ll bid you adieu at this point and leave you in the capable hands of my colleague Alex Singleton for the rest of the day.
Here is that letter from OpenAI staff to the board urging them to resign if they do not reinstate Sam Altman, which is bizarrely signed by Ilya Sutskever, who was one of the ringleaders of the boardroom coup that ousted the company’s co-founder:
03:27 PM GMT
Microsoft shares hit record high after hiring Sam Altman
Microsoft shares have advanced 1.4pc to hit a record high after the tech giant hired former OpenAI boss Sam Altman days after his shock sacking by the company’s board.
The tech giant’s shares hit an unprecedented $377.10 after chief executive Satya Nadella said Mr Altman will join the company to lead a new advanced AI research team.
Other megacap stocks were mixed on Wall Street in early trading, with Amazon edging 0.7pc higher, while Alphabet slipped 0.4pc.
The three main U.S. stock indexes have staged a stellar rebound in November, posting gains for the third week in a row on Friday amid evidence of easing US inflation.
The Dow Jones Industrial Average was last up 0.1pc, the S&P 500 has gained 0.3pc and the Nasdaq Composite was up 0.4pc.
03:21 PM GMT
Gas prices calm down after hijack-caused spike
This morning we mentioned that European gas prices jumped as much as 6.9pc after an Israeli-linked cargo vessel was seized by Iran-backed rebels in the Red Sea.
The market has now calmed down, with prices up just 1pc since the start of trading today.
Meanwhile, UK natural gas contracts, which rose as much as 5.6pc, are now up 1.6pc on the opening price.
03:15 PM GMT
'Dullness dividend' means Sunak can pledge tax cuts, says top economist
Rishi Sunak is benefiting from a “dullness dividend” which means he can promise tax cuts that will not derail the economy in the same way as Liz Truss’s mini-Budget, according to a prominent economist.
Simon French, chief economist at investment bank Panmure Gordon, said the difference between the two prime ministers’ tax cutting pledges was “timing and conduct”.
It comes after Rishi Sunak said today that the Government is now in a position to start cutting taxes.
Liz Truss’s unfunded tax cutting pledges in her mini-Budget led to a crisis in the pensions and gilts markets which ultimately led to her downfall and replacement by Mr Sunak.
Mr French said:
03:09 PM GMT
British Airways says Britain is being left behind on greener fuel production
The Government is letting other countries get ahead in producing greener jet fuel, according to the boss of British Airways.
Sean Doyle, the airline’s chief executive, told an industry conference in Westminster today:
We’re struggling to really just get the ball rolling and getting plants built.
The Government has previously pledged to have at least five sustainable aviation fuel plants in construction in the UK by 2025. These planned facilities will produce lower-emission fuel to support its decision that at least 10pc of the fuel used by airlines in the UK must be made from sustainable sources such as agricultural waste and used cooking oil by 2030.
The comments come amid concerns that Britain has not done enough to address its energy security. Mark Harper, the Transport Secretary, told the Airlines 2023 conference:
Recent years have shown the dangers of over-reliance on energy imports, holding us hostage to the whims of foreign tyrants.
He said that Britain had invested “significant amounts of public money” into developing sustainable aviation fuel. Last week the Department for Transport awarded ￡53 million overall to nine projects involved in developing the greener fuel.
03:04 PM GMT
Tax burden is high because of low growth, says Reynolds
Shadow business secretary Jonathan Reynolds told bosses that the UK has hit the highest tax burden in 17 years because of “low growth”.
Speaking at the CBI’s annual conference, Mr Reynolds said he would not speculate on possible tax cuts being announced by the Chancellor in the Autumn Statement on Wednesday.
He said:
We’ve had low growth, that is the fundamental reason for that.
02:57 PM GMT
Axing HS2 was 'national embarrassment', says shadow business secretary
The shadow business secretary has called the axing of the HS2 project a “national embarrassment”, as he said boosting investment into Britain is a top priority for the Labour Party.
Jonathan Reynolds, speaking at the Confederation for British Industry’s (CBI) conference, said:
In the last 13 years, we’ve had eleven different growth strategies, and it looks like you’re getting the 12th one this afternoon.
The UK needs a “long-term plan for national renewal” rather than “headlines”, Mr Reynolds said ahead of the Chancellor’s autumn statement on Wednesday.
02:51 PM GMT
Citigroup 'cutting more than 300 jobs'
Wall Street giant Citigroup is cutting more than 300 senior management jobs as part of efforts to simplify the business, it has been reported.
The company began announcing the cuts today, amounting to roughly 10pc of staff at the management grade two levels below chief executive Jane Fraser, according to Bloomberg News.
The restructuring, aimed at speeding up decision making at the investment bank, is expected to be New York-based Citigroup’s biggest in two decades.
Citigroup said in a statement:
Today we shared with our colleagues the next layer of changes across many of our businesses and functions as we continue to align Citi’s organisational structure with our new, simplified operating model.
02:35 PM GMT
Wall Street edges higher after opening bell
US markets have crept higher to start the week in relatively thin trading ahead of the Thanksgiving holidays.
The Dow Jones Industrial Average was less than 0.1pc higher at 34,962.56 while the benchmark S&P 500 was little changed at 4,515.83.
The tech-heavy Nasdaq Composite rose 0.3pc to 14,171.12.
Microsoft gained 1.1pc shortly after markets opened to $373.85 following the hiring of former OpenAI chief executive Sam Altman.
02:16 PM GMT
OpenAI staff threaten to quit unless board resigns
Nearly 500 staff at OpenAI are reported to have signed a letter telling bosses at the ChatGPT maker that they will quit the business unless the board resigns over the sacking of co-founder Sam Altman.
The scathing letter accused the board of being “incapable of overseeing” the company following the botched dismissal of Mr Altman on Friday, who has now joined Microsoft to develop a new AI division, according to Wired.
The letter threatens the board with mass resignations of staff unless Mr Altman and his OpenAI co-founder Greg Brockman are reinstated.
Strikingly, its signatories reportedly include Ilya Sutskever, who was one of the ringleaders of a boardroom coup at ousted the company’s co-founder.
The letter reportedly states:
We, the undersigned, may choose to resign from OpenAI and join the newly announced Microsoft subsidiary run by Sam Altman and Greg Brockman.
02:05 PM GMT
Musk denies 'bogus' stories that he is antisemitic
Elon Musk has denied being an antisemite and has blamed the media for “bogus” stories about him as he tried to stem an exodus of advertising revenue from his X social media platform.
The Tesla and SpaceX chief executive delivered his strongest response so far to the crisis triggered by his endorsement of antisemitic content that led to advertisers like Apple and IBM pausing their spending on the social network formerly known as Twitter.
The backlash came after he agreed with a post that said Jewish people hold a “dialectical hatred” of white people.
Here is Mr Musk’s tweet:
01:52 PM GMT
IMF boss welcomes Argentina’s president-elect Milei
IMF managing director Kristalina Georgieva has congratulated Argentina’s president-elect Javier Milei and said she looked forward to working with him as his country struggles with a deep economic crisis.
Argentina is dealing with a severe economic crisis, with inflation soaring above 100pc and poverty levels climbing up to 40pc.
In 2018 it reached a $44bn loan agreement with the IMF, under which Argentina pledged to reduce its fiscal deficit to 0.9pc of GDP in 2024.
Mr Milei, a hard-right libertarian who has drawn comparisons with Donald Trump, has pledged to slash spending among other bold moves and says the 0.9pc goal is not ambitious enough.
Ms Georgieva tweeted:
01:34 PM GMT
OpenAI board member 'regrets' ousting of Sam Altman
One of the ringleaders of a boardroom coup at Silicon Valley start-up OpenAI has said he “regrets” the ousting of its founder Sam Altman.
Our senior technology reporter Matthew Field has the latest:
Ilya Sutskever, the chief scientists at OpenAI and seen as one of the architects of the dismissal, said today he hoped it was still possible to “reunite” the company.
01:20 PM GMT
Interest rates will stay at 5.25pc for whole of next year, says Bank of America
Interest rates will stay on hold throughout next year, Bank of America has warned, as it forecast inflation to remain higher than expected.
Economists at the investment bank think that there will eventually be four quarter point interest rate cuts in 2025.
This contrasts with market pricing of nearly three cuts priced in by the market in 2024 and nearly two in 2025, Bank of America said.
FX strategist Kamal Sharma said “high for longer UK rates” are “likely to exacerbate the downside risks to an already weak economy”.
12:51 PM GMT
Javier Milei: How Trump-loving president elect will shake-up Argentina’s economy
The planned shock therapy policies of Agentina’s president-elect Javier Milei have already sent investors fleeing.
Our economics editor Szu Ping Chan and deputy economics editor Tim Wallace outline what is in store after the right-wing politician’s historic victory:
Milton Friedman was not renowned for being soft and cuddly. The father of monetarist economics inspired tough central bank crackdowns on inflation that triggered recessions and provided the intellectual ballast for Margaret Thatcher, the Iron Lady.
Read how Milei, himself an economist, plans to tackle hyperinflation and get public finances back under control.
12:30 PM GMT
Pound gains as US expected to cut rates
The pound has gained today as traders expected interest rates to fall in the first half of next year in the US.
Sterling has risen 0.1pc to well above $1.24 as the dollar remains on course for its largest monthly drop in a year.
The pound was down 0.1pc against the euro, which is worth 87p.
11:56 AM GMT
Microsoft poised to make gains on Wall Street after Altman hiring
US stock indexes have ticked higher in premarket trading, with Microsoft outpacing megacap peers after hiring former OpenAI head Sam Altman.
Microsoft’s shares advanced as much as 2.4pc before the bell after chief executive Satya Nadella said Mr Altman is set to join the tech giant to lead a new advanced AI research team.
Other megacap stocks were mixed, with Nvidia edging 0.6pc higher, while Alphabet slipped 1.1pc.
The three main US stock indexes have staged a stellar rebound in November, posting gains for the third week in a row on Friday as evidence of easing US inflation supported bets that the Federal Reserve was done raising interest rates.
The benchmark S&P 500 is now only 2pc away from its highest level this year reached in July.
Traders have nearly fully priced in the likelihood that the Fed will keep interest rates unchanged in December, with odds of an at least 25 basis point rate cut in May standing at about 60pc, according to the CME Group’s FedWatch tool.
In premarket trading, the Dow Jones Industrial Average and S&P 500 were flat, while the Nasdaq 100 was up 0.1pc.
11:41 AM GMT
Oil rises as markets expect more Saudi production cuts
Oil rose above $81 a barrel as traders wait to see whether the Opec cartel and its allies will try to bolster prices.
Brent crude gained 1.3pc after rallying 4.1pc on Friday amid reports that Saudi Arabia could deepen production cuts when they gather next weekend.
Crude has fallen down this year following a run of four weekly losses, as concerns fade about any disruptions to supply from the Israel-Hamas war.
With stock levels swelling in the US, hedge funds have slashed their bets on oil to the lowest levels in 20 weeks.
Warren Patterson, head of commodities strategy for ING Group, said:
We continue to expect that Saudi Arabia and Russia will roll over their additional voluntary cuts into early 2024.
11:27 AM GMT
Top OpenAI staff tweet company 'nothing without its people'
Large number of OpenAI staff have been tweeting the message “OpenAI is nothing without its people” following the abrupt sacking of former boss Sam Altman.
The tweeters include chief technology officer Mira Murati, who was briefly installed by the board as interim chief executive on Friday afternoon after Mr Altman’s departure.
Poignantly, no public message was made by Ms Murati before the company announced ex-Twitch boss Emmett Shear had been hired as interim boss on Sunday night.
11:11 AM GMT
Tax cuts are coming, says Sunak
Rishi Sunak said tax cuts can now be considered as he set the scene for the Autumn Statement on Wednesday.
Our politics live blog editor Jack Maidment has the latest:
Delivering a major speech on the economy in London this morning, the Prime Minister said delivering on his goal of halving inflation last week meant “we can begin the next phase and turn our attention to cutting tax”.
Follow the latest on the Prime Minister’ speech here.
11:06 AM GMT
ChatGPT triggered surge in investment into AI tools
OpenAI is the developer of ChatGPT, the AI-powered chatbot that surged in popularity late last year, writes Matthew Field.
The app triggered a race for new AI tools and a debate over the potential risks posed by the technology.
Microsoft had pledged to invest up to $10bn into OpenAI, under Mr Altman’s leadership, who has emerged as a figurehead of a new wave of Silicon Valley companies evangelising the power of AI.
However, his sudden ousting came as other directors at OpenAI, which is set up as a non-profit intended with a focus on AI safety, said Mr Altman was “not consistently candid” with the board.
10:49 AM GMT
Altman will build something 'incredible' at Microsoft, says OpenAI co-founder
Greg Brockman, who co-founded OpenAI with Sam Altman, has issued a warning to his former employers days after he quit over the abrupt sacking of its boss.
Mr Brockman, who was president of the ChatGPT developer, said he and Mr Altman are “going to build something new & it will be incredible” at Microsoft.
Similarly to Mr Altman, he has also begun posting heart emojis on messages saying that OpenAI is “nothing without its people”.
10:35 AM GMT
Altman tweets ominous message to OpenAI
It is 2.33am in California but Sam Altman is still up and tweeting after one of the most dramatic days of his career.
His latest posts could be seen as ominous messages to OpenAI after his switch to Microsoft.
A reminder that Microsoft chief executive Satya Nadella announced Mr Altman would be joining the company along with a number of his colleagues:
10:18 AM GMT
New OpenAI boss insists Altman was not sacked over 'safety' disagreements
OpenAI’s new interim chief executive has spoken about his “respect” for ousted boss Sam Altman and insisted he was not sacked by the board over concerns about AI safety.
Twitch founder Emmett Shear said OpenAI’s staff “are extremely impressive” and said he had taken the job as he felt he “had a duty to help if I could”.
Mr Altman’s sacking from OpenAI has been reported as the result of disagreements with chief scientist Ilya Sutskever over his increasingly commercial plans for the company, in contrast with its not-for-profit ethos.
Mr Shear tweeted:
I have nothing but respect for what Sam and the entire OpenAI team have built. It’s not just an incredible research project and software product, but an incredible company.
He added: “The board did *not* remove Sam over any specific disagreement on safety, their reasoning was completely different from that. “
Here is the full (lengthy) tweet:
10:03 AM GMT
Microsoft 'will fund' Altman ideas, say tech analysts
There has been a lot of excitement from the tech world to Sam Altman’s hiring by Microsoft:
09:39 AM GMT
Microsoft shares higher in premarket trading after Altman hiring
Microsoft is on track to open more than 2pc higher after its chief executive announced the tech giant has hired OpenAI co-founders Sam Altman and Greg Brockman.
09:31 AM GMT
Capita secures ￡239m civil service pension contract
Outsourcing company Capita shares have climbed 4.1pc after it secured a new contract to manage the Civil Service Pension Scheme.
The professional services business will take on the management of the scheme for the Government from September 2025 in a deal with ￡239m over 10 years.
09:08 AM GMT
Gas prices rise after Israeli-linked cargo ship seized
European gas prices have jumped after an Israeli-linked cargo vessel was seized by Iran-backed rebels in the Red Sea.
Benchmark contracts rose by as much as 6.9pc, ending a sequence of four days of declines, after Yemen’s Houthi rebels took the shipping vessel off the coast of the country on Sunday, in revenge for what they said were Israeli war crimes in Gaza.
Militants used a helicopter to hover above the Galaxy Leader, before rappelling down to the deck while armed, US officials told NBC.
UK natural gas contracts rose as much as 5.6pc to more than 120p per therm in early trading.
Gas prices had been falling amid signs that the Israel-Hamas war was not developing into a wider conflict in the Middle East.
08:49 AM GMT
Ashtead slump drags down FTSE 100
The FTSE 100 began the week on a negative footing as shares of equipment rental firm Ashtead Group plunged nearly 15pc on downbeat annual profit outlook.
The commodity-heavy FTSE 100 fell as much as 0.4pc in early trading, while the mid-cap index was up 0.1pc.
Last week, both the FTSE indexes had posted steep gains on expectations that the interest rates have peaked.
Shares of Ashtead Group dropped by 14.5pc after it said earnings are expected to miss previous guidance after it was impacted by fewer natural disasters and the Hollywood writers’ strike.
It told shareholders that a slowdown in revenue growth meant its earnings for the current full year are set to be between 2pc to 3pc below market expectations.
Lower emergency response activity dragged its US business down and the company expects to take a more than $2bn (￡1.6bn) depreciation charge for the year.
Limiting losses in the benchmark index, energy stocks climbed as much as 0.9pc, tracking oil prices.
Shares of refurbished consumer technology firm musicMagpie surged 28pc after the company said it was in early-stage talks with BT and Aurelius Group regarding a possible offer to buy the British online retailer of used smartphones and electronic products.
08:37 AM GMT
Sam Altman to join Microsoft - how it happened
Sam Altman, the ousted boss and founder of OpenAI, will join Microsoft in the latest dramatic twist in an explosive three days on Silicon Valley.
Microsoft chief executive Satya Nadella announced hours after it emerged that Chat-GPT maker OpenAI had hired Twitch founder Emmett Shear to be its interim chief executive.
In a post on social media platform X, Mr Nadella said: “We’re extremely excited to share the news that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team.”
Microsoft, which reportedly owns 49pc of the Chat-GPT, added that Microsoft remained “committed to our partnership with OpenAI”.
Mr Altman’s sudden ousting by the OpenAI board on Friday is understood to have sparked a mass exodus of staff.
Mr Altman was at the OpenAI offices for talks on Sunday, tweeting a picture of himself wearing a guest lanyard and office pass captioned: “First and last time I ever wear one of these.”
Here is the tweet from Mr Nadella announcing that the tech giant has hired OpenAI co-founders Mr Altman and Greg Brockman:
This story has been incredibly fast-paced, so here is a round-up. Mr Altman was ousted by the Open AI board on Friday:
OpenAI co-founder Greg Brockman announced his departure shortly afterwards:
Mr Altman was at the OpenAI offices for talks on Sunday:
Those talks appeared to end in failure for Mr Altman, with OpenAI hiring Twitch co-founder Emmett Shear as interim chief executive.
Then we had the news this morning from Microsoft boss Mr Nadella, and this tweet from Mr Altman:
08:28 AM GMT
Twitter boss Linda Yaccarino resists pressure from advertisers to quit
The chief executive of X - the social media platform formerly known as Twitter - is resisting pressure from advertisers to step down as more major brands pause their spending amid concerns about its owner Elon Musk and antisemitic content.
Linda Yaccarino has been privately urged by friends and executives to resign to save her reputation, according to the Financial Times.
It comes as Twitter is reeling from a growing corporate boycott after Mr Musk appeared to personally endorse an anti-Semitic post on the service last week.
He replied to a post accusing Jewish people of pushing “hatred against whites”, calling it “the actual truth”. Mr Musk’s comments led the White House to accuse him of “abhorrent promotion of anti-Semitic and racist hate”.
The UK Government stopped advertising on X as it faces an exodus of major brands.
08:09 AM GMT
UK markets subdued at the open
The FTSE 100 fell slightly as markets remain cautious ahead of the Chancellor’s Autumn Statement this week.
The UK’s blue-chip index was down 0.3pc to 7,480.72 while the midcap FTSE 250 was flat at 18,565.07.
07:58 AM GMT
ChatGPT creator hires new chief as founder’s comeback fails
ChatGPT maker OpenAI has hired a new chief executive in a bid to draw a line under the surprise sacking of founder Sam Altman.
Our technology editor James Titcomb has the latest:
The hiring of ex-Twitch boss Emmett Shear effectively ends speculation over whether Mr Altman, who three days ago was sacked in a row over the tech giant’s future, could return to OpenAI.
Read how the drama unfolded overnight in Silicon Valley.
07:56 AM GMT
BT in talks to acquire musicMagpie
Refurbished electronics retailer musicMagpie has confirmed talks over a possible sale to BT and private equity investor Aurelius.
MusicMagpie said the discussions were at a “very early stage”.
The takeover talks come after musicMagpie saw its shares slump since a stock market flotation just over two years ago that valued the group at more than ￡200m.
It is now worth just ￡20m and is understood to have recently called in consultants at Deloitte to review its options, including a sale.
07:53 AM GMT
Caterer Compass boosted by higher food prices
Catering giant Compass Group has revealed a jump in revenues and profit for the past year as it was supported by new business and higher food prices.
The firm, which provides food service for offices, universities and sports venues, told shareholders that revenues grew by 21.6pc to ￡31bn in the year to September 30, compared with the previous year.
Meanwhile, operating profit rose by 26.1pc to ￡1.9bn despite pressure from inflation.
It told investors it is targeting 13pc underlying profit growth in the current financial year, with high single-digit organic revenue growth.
Chief executive Dominic Blakemore said:
The business is in great shape operationally and financially and well positioned for a more focused growth phase.
07:46 AM GMT
Lowering taxes not at expense of 'sound money', says minister
Gareth Davies, exchequer secretary to the Treasury, said ambitions in Government to lower the overall tax burden “won’t come at the expense of sound money”.
Speaking to the Times Radio, the Conservative MP said he “can’t speculate on individual taxes” after being asked whether he would prefer to see the basic rate or higher rate of tax cut during the autumn statement.
He continued:
We’ve always been clear that our number one target is getting inflation down, that is the tax that is impacting families and businesses throughout the country.
07:39 AM GMT
Good morning
Thanks for joining me. The tech sector is in focus today as pressure grows on X chief executive Linda Yaccarino to resign over concerns about its founder Elon Musk and antisemitic content.
As friends and executives reportedly urge her to leave to save her own reputation, elsewhere in Silicon Valley there is drama at ChatGPT developer OpenAi.
Sam Altman will not make a dramatic return to the business he co-founded following his dramatic ousing on Friday, after the board if OpenAi hired Twitch co-founder Emmett Shear as interim chief executive.
5 things to start your day
1) ChatGPT creator hires new chief after Sam Altman sacking | Sam Altman, the founder of ChatGPT-maker OpenAI, will reportedly not return to the company as chief executive.
2) Brexit has boosted UK wages, say economists | Drop in EU immigration has given British workers better bargaining power
3) Hunt to launch ‘moonshot’ quantum supercomputing programme in Autumn Statement | The groundbreaking technology can break encryption systems used by armed forces and banks
4) Fund backed by Abu Dhabi in line to own The Telegraph within weeks | Senior Tories have called for the Government to intervene over public interest and national security concerns
5) Starmer turns to City spinner with links to Gordon Brown to broker pre-election FTSE summit | The public relations company hosted a similar meeting with Boris Johnson in 2019
What happened overnight
OpenAI has reportedly hired the co-founder of video streaming service Twitch as its interim-chief executive days after the dramatic sacking of billionaire boss Sam Altman.
Emmett Shear was the second appointment to the role in three days after chief technology officer Mira Murati was initially appointed on Friday afternoon.
Mr Shear’s hiring, reported by the Financial Times, followed the surprise ousting of OpenAi’s co-founder Mr Altman, which triggered a flood of support from investors and employees for the man who set up the company in 2015 and has led it 2019.
Meanwhile, Asian shares were higher after Wall Street closed its third straight winning week with a tiny gain.
Japan’s Nikkei 225 index broke its September peak, hitting a 33-year high, and then fell to 33,388.03, shedding 0.6pc.
The Hang Seng in Hong Kong added 1.5pc to 17,719.07, and the Shanghai Composite index advanced 0.4pc to 3,066.85.
China announced on Monday that it would keep its benchmark lending rates unchanged as expected due to a weaker yuan and the need to assess the impact of recent stimulus measures on the economy.
In South Korea, the Kospi was 1pc higher, at 2,495.60. Australia’s S&P/ASX 200 edged 0.1pc higher to 7,058.40. Taiwan’s Taiex was little changed. The SET in Bangkok gained 0.2pc as the state planning agency announced Monday that Thailand’s economy grew slower than expected in the last quarter due to weakness in exports and agriculture, despite strong consumer spending and a recovery in tourism.
On Friday, the S&P 500 edged up 0.1pc to 4,514.02 and is near its highest level in three months. The Dow Jones Industrial Average inched up less than 0.1pc to 34,947.28 and the Nasdaq composite gained 0.1pc to 14,125.48.