That is it for today but do follow our US Finance blog for the latest happening on Wall Street.

Do join us again tomorrow for more insights on what investors need to know.

Thanks,

PHG

Households in Britain are set to face higher energy bills this winter with the regulator expected to increase the price cap after lowering it twice this year.

Experts predict that regulator Ofgem will announce on Friday that the average household energy bill will rise by about 9% in October when the latest change takes effect.

Energy consultants Cornwall Insight said it expects the typical household’s energy bill to rise to £1,714 a year, up from £1,568 currently, on 1 October.

The regulator sets the price limit based on several factors including wholesale energy prices — the amount energy firms pay for gas and electricity before supplying it to households. It is updated every three months.

It means households could be going into the colder months facing higher bills than they have had from April this year, when the price cap was lowered.

Nevertheless, average bills remain considerably lower than during the peak of the energy crisis, which was fuelled by Russia’s invasion of Ukraine in February 2022, driving up costs in an already-turbulent energy market.

The expected £1,714 a year would be £120 less than the price cap in October last year, when it was £1,834.

• The average five-year fixed mortgage rate is now 4.76%, down from 5.69% a year ago

• The average two-year fixed mortgage rate is now 5.12%, down from 6.31% a year ago

• The average 85% LTV five-year fixed mortgage rate is now 4.82%, down from 5.71% a year ago

• The average 60% LTV five-year fixed mortgage rate is now 4.03%, down from 5.31% a year ago

• The average monthly mortgage payment on a typical first-time buyer type property when taking out an average five-year fixed, 85% LTV mortgage, is now £1,109 per month, down from £1,191 per month a year ago

All according to Rightmove’s weekly mortgage tracker.

US stocks resumed gains on Thursday with the S&P 500 (^GSPC) inching closer towards record levels as investors weighed how deeply the Federal Reserve might lower interest rates in September on the eve of a key speech by chair Jerome Powell.

Both the broader market index and the tech-heavy Nasdaq Composite (IXIC) rose roughly 0.2%. The Dow Jones Industrial Average (^DJI) was up 0.1%, after the three indexes closed in the green on Wednesday.

The number of Americans filing for unemployment benefits rose in the latest week, though the overall cooling of the US labour market appears to still be on track.

Initial jobless claims jumped to 232,000 last week, matching expectations, while the prior week's reading was revised up to 228,000. The data was in higher focus given an official revision to payrolls showed the labor market — a key input for policymakers — may have been cooling long before initially thought.

Signs of stress could factor into how deeply the Fed cuts rates, with hopes for a 0.5% reduction in play.

Meanwhile, the Boston Fed president Susan M Collins has said that It will soon be appropriate for the Federal Reserve to begin a rate-cutting cycle.

In a signal that she could support a rate cut in September, Collins told Fox Business:

Travelodge has said strong regional demand for rooms across the UK helped to offset “softer trading” in London so far this year.

The budget hotel group however said that sites in the capital saw soaring trade close to Taylor Swift’s London concerts and major sporting events.

However, it saw weaker trade linked to Wimbledon due to poor weather and fewer midweek leisure visitors in London.

Travelodge boss Jo Boydell said consumer demand has been broadly “resilient” across the UK.

“The UK regions have been really solid this year but London has been impacted by a lower event schedule year-on-year,” she said.

“For the bigger events we have had, such as Taylor Swift and big sporting events, we have performed really well.

“The return of the football season has been really good as well, with that supporting a lot of regional hotels.”

Nevertheless, the group said it was witnessed “encouraging trends” for staycation demand across the UK, with positive trading over July.

It came as the firm reported that revenues grew by 1.7% to £486.7m for the first six months of 2024, compared with the same period a year earlier.

The construction of Tesla's (TSLA) gigafactory near Berlin has led to the felling of approximately 500,000 trees, according to a recent satellite analysis.

The project has been a lightning rod for controversy, sparking significant protests and discussions about the environmental impact of such large-scale industrial developments. The environmental intelligence firm Kayrros revealed that 329 hectares (813 acres) of forest were cleared between March 2020 and May 2023 to make way for the factory, a figure that equates to roughly half a million trees.

The extent to which Tesla has altered the local environment, according to satellite images shared with the Guardian, is likely to reignite controversy surrounding the factory.

Since May, climate activists have increased their protests against the gigafactory's planned expansion, with some occupying tree houses in nearby forests and others attempting to storm the construction site. In March, a group of activists set fire to an electricity pylon, temporarily halting production at the facility.

Elon Musk, Tesla's CEO, has openly criticised local authorities for what he described as leniency towards "leftwing protesters" opposing the factory.

Starbucks’ (SBUX) incoming chief executive, Brian Niccol, is under fire over the company’s offer for him to commute around 1,000 miles (1,600km) by private jet.

Social media users were quick to criticise the world’s biggest coffee shop chain over the move in light of its sustainability efforts elsewhere, such as banning plastic straws.

One wrote on X, formerly Twitter: “How can anyone justify a 1,000-mile #commute by private jet? Makes #Starbucks sustainably policy look like greenwashing.”

Another said: “Seriously? New CEO Brian Niccol to take 1,000-mile private jet commute? In an age where the richest are proven primary contributors to damage to the environment? I imagine you have lost a few customers through this – you’ve certainly lost me.”

A third posted: “The new Starbucks CEO is ‘supercommuting’ 1,000 miles to Seattle on a private jet to work, so don’t be too harsh on that waitress who gave you a plastic straw when you didn’t want one.”

Niccol’s job offer said he will not have to relocate to the company’s headquarters in Seattle, Washington, from his family home in Newport Beach, California, when he takes up his new role on 9 September.

The document states: “You agree to commute from your residence to the company’s headquarters (and engage in other business travel) as is required to perform your duties and responsibilities.”

Starbucks has also offered the incoming boss a “small remote office in Newport Beach” which will be “maintained at the expense of the company”.

The offer letter adds that the 50-year-old will be eligible to use the corporate aircraft for “business related travel”, for “travel between city of residence and the company’s headquarters”, and for “your personal travel” in accordance with company policies, up to $250,000 (£191,500) per year.

A company spokesman told CNBC earlier this week that Niccol will be expected to work from the Seattle office at least three days a week in line with its hybrid work policies.

Critics online accused the firm of hypocrisy, with some calling for a boycott of the chain while others said they will no longer shop at the chain.

Activity across the UK’s private sector grew to a four-month high in August, propped up by a “robust upturn” in new business, according to indicative new data.

The S&P Global flash UK composite purchasing managers’ index (PMI) reported a reading of 53.4 in August, up from 52.8 in July.

It came in ahead of expectations of economists, who had pencilled in a reading of 52.9 for the latest survey.

The flash figures are based on preliminary data. Any score below 50 indicates that activity is contracting, while any score above means it is growing.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said: “August is witnessing a welcome combination of stronger economic growth, improved job creation and lower inflation, according to provisional PMI survey data.”

JD Sports (JD.L) has reported higher global sales after opening 85 new stores this year, but warned that the market remains “volatile”.

The high street retailer said its total sales grew 2.4% over the three months to August, compared with the same period a year ago, and on a like-for-like basis, which strips out the impact of new store openings.

This was driven by growth in North America and Europe, whereas sales in the UK slipped 0.8% year on year, the group said.

It flagged a decline in earnings generated from clothing and online sales, which particularly dragged on the UK.

JD said its stronger performance was driven primarily by the success of its “multi-brand” model, and the fact that sales last year were weaker.

The company is currently the biggest FTSE 100 riser, up more than 5% in early trading

Recruitment firm Hays (HAS.L) has reported a 91% decline in profits, underscoring the impact of a global slowdown in hiring.

The London-listed company revealed that pre-tax profits fell to £14.7m for the year ending in June, marking a sharp 91% drop. Net fees also took a hit, declining 12% to £1.1bn.

On an underlying basis, which excludes exceptional items, Hays' pre-tax profits were halved, coming in at £94.7m. The company acknowledged the "challenging" hiring environment but cautioned that it was "too early to assess trends," noting that September is a critical month for recruitment activity.

In the UK and Ireland, Hays reported that hiring activity has been "relatively subdued" since the general election, with conditions remaining difficult.

Oil prices continue to retreat, with Brent crude (BZ=F) near its lowest level of the year at $75.89 a barrel as investors worry about the global demand outlook.

Oil has now lost all its gains in the year so far as concerns about demand in both the US and China have offset the impact of supply cuts by OPEC.

“The downward pressure on prices makes it increasingly likely that OPEC+ will have to scrap their plans for gradually increasing supply from October. Failing to do so, will likely put further pressure on prices,” ING analysts said in a note.

“Weak global demand and the potential threat on OPEC+ rolling back on their production cuts are weighing on oil,” Phillip Nova analyst Priyanka Sachdeva told Reuters.

Asia-Pacific markets mostly rose on Thursday, as investors digested business activity data from Australia and Japan and processed the Fed minutes.

The Nikkei (^N225) rose 0.7% on the day in Tokyo as gains in the Paper & Pulp, Marine Transport and Gas & Water sectors led shares higher.

Meanwhile the Hang Seng (^HSI) jumped 1.4% in Hong Kong and the Shanghai Composite (000001.SS) was the outlier across Asia-Pacific markets, slipping 0.3%.

US stocks closed higher on Wednesday, resuming a climb after snapping their longest win streak this year. From our US team:

The pound has surged to near its highest level in a year, buoyed by expectations that the US Federal Reserve will soon begin cutting interest rates. Sterling was trading at $1.308 this morning, maintaining the momentum it gained after reaching a 12-month peak on Wednesday.

The rally comes amid increasing speculation that the Federal Reserve will start easing monetary policy in the coming weeks. According to the minutes released by the Fed, the "vast majority" of policymakers believe that a rate cut in September would be appropriate, contingent on forthcoming economic data aligning with expectations.

Market participants have now fully priced in a 25-basis-point cut at the Fed's next meeting, with some even assigning a one-in-three probability to a more aggressive 50-basis-point reduction.

The anticipation of US rate cuts has provided a tailwind for sterling, which has been strengthening against the dollar as investors adjust their expectations for future monetary policy.