In This Article:
Germany has been forced to sell off some of its stake in package deliverer DHL as it struggles to improve the country’s rail network amid a budget crisis.
The KfW bank, which holds the government’s remaining stakes in previously state-held companies, said it has sold 50 million shares of Deutsche Post, the name under which it still trades on the stock exchange.
The €2.2bn (£1.9bn) sale, at €43.45 each, cuts the German state’s share in the company by 4pc to 16.5pc.
Germany’s finance ministry said the money would be used to strengthen the capital of Germany’s main railway operator, the state-owned Deutsche Bahn, and to improve railway infrastructure.
The government has been forced to turn to share sales to help finance improvements to the rail network after a court ruling forced it to plug a big hole in this year’s budget and reconsider its wider financial plans.
In November, Germany’s highest court annulled a decision made by the government in 2022 to repurpose €60bn originally meant to cushion the fallout from the pandemic for measures to help combat climate change and modernise the country.
Read the latest updates below.
06:09 PM GMT
Signing off
Thanks for joining us today. My colleague Chris Price will be back in the morning, reporting on the latest company news as the London markets open.
05:53 PM GMT
Blow to City as Brussels forces traders to funnel deals through EU
Brussels has waved through new rules that will force derivative traders to clear deals through the European Union, dealing the latest blow to the City. Our reporter Adam Mawardi has the details:
London could lose control of its lucrative clearing market after EU officials backed proposals to shift more business activity to operators across the bloc.
05:49 PM GMT
McLaren shareholder looks to Chinese as potential new investors
The sovereign wealth fund behind McLaren is seeking to bring in new investors to help fund the British carmaker’s growth, according to a report.
McLaren’s controlling shareholder, Mumtalakat of Bahrain, is looking to raise additional investment to develop McLaren’s technology and enter new markets. Bloomberg reports that they have approached Chinese carmakers, according to sources. Discussions are said to be at an early stage.
The Telegraph approached Mumtalakat for comment. McLaren declined to comment.
05:39 PM GMT
Ryanair 'concerned' about Boeing quality as it warns regulators will slow production
Ryanair is concerned by shortcomings identified by US regulators in a report into the Alaska Airlines 737 Max 9 accident, the airline’s chief Michael O’Leary said on Wednesday.
A door plug that flew off an Alaska Airlines MAX 9 jet mid-flight on Jan 5 appeared to be missing four key bolts, according to a preliminary report by the US National Transportation Safety Board released on Tuesday.
Michael O’Leary said today:
I think we’re concerned because it highlights, you know, poor production quality with Boeing. .. but we don’t think it affects our Boeing 737 fleet or the Max 8 that we operate.
Ryanair, which is Europe’s largest airline by passenger numbers and one of Boeing’s main customers, has ordered over 350 Max jets in recent years, but has no Max 9 aircraft.
He said the last 12 aircraft Ryanair received in October-December showed quality improvements from earlier in the year, “but Boeing have clearly more to do”.
He added:
There’s no doubt that the increased supervision by the FAA (Federal Aviation Administration) in Seattle will slow things down. We’re just not sure yet whether it will affect our deliveries between now and the end of June.
Boeing told The Telegraph:
Ryanair is a valued customer and we are working closely with them to address their concerns. We are taking action on a comprehensive plan to improve our quality and delivery performance and will support our customers every step of the way.
05:25 PM GMT
OBR chief says government should cut the benefits bill to bring down debt
Rishi Sunak must slash Britain’s benefits bill instead of relying on immigration if he wants to get the country’s debts under control, according to an official at the UK’s budget watchdog. Szu Ping Chan reports:
Rishi Sunak must slash Britain’s benefits bill instead of relying on immigration if he wants to get the country’s debts under control, according to an official at the UK’s budget watchdog.
04:56 PM GMT
Blow for Farfetch as it is ditched by partner
Luxury online store Farfetch has been dealt a fresh blow as the owner of Bergdorf Goodman moved to end a partnership deal struck two years ago.
The Telegraph understands that Neiman Marcus Group is pulling a tie-up with the British fashion retailer, which last month collapsed and was rescued by South Korea’s Coupang.
Under the deal which was agreed in early 2022, Farfetch and Neiman Marcus had been working on improving the Bergdorf Goodman website and mobile app. Bergdorf Goodman is a well-known luxury US department store which has featured in shows including Gossip Girl.
Farfetch also agreed to take a minority stake in Neiman Marcus under the 2022 agreement, investing $200m (£158m) into the business. It is understood to still hold this position.
The end of the partnership comes in the wake of Coupang’s swoop on Farfetch, which saw the South Korean company buy the British fashion firm in a rescue deal after its value collapsed 99pc.
The deal wiped out shareholders and many of the company’s bondholders.
Bondholders have since demanded an investigation into the conduct of José Neves, the co-founder and chief executive of Farfetch.
A spokesman for Neiman Marcus said the group had “decided to end its commercial partnership with Farfetch”.
They added: “The Bergdorf Goodman website and app will continue to serve as the luxury ecommerce destination for its customers and will no longer be re-platforming onto Farfetch Platform Solutions... We appreciate Farfetch, which continues to be a minority investor in NMG.”
A spokesperson for Farfetch said: “We continue to partner closely with thousands of brands and boutiques around the world to provide an elevated online luxury experience for millions of customers.”
04:54 PM GMT
Footsie closes down
The FTSE 100 closed down 0.68pc. The biggest riser was corrugated packaging company Smurfit Kappa, up 3.55pc, while rival DS Smith was just behind, rising by 2.97pc. The biggest faller was Sainsbury’s, down 6.06pc, followed by housebuilder Barratt Developments, down 5.47pc.
Meanwhile, the FTSE 250 fell 0.31pc. Housebuilder Redrow was the biggest riser, up 14.75pc, followed by cyber security firm Darktrace, up 4.82pc. Carex owner PZ Cussons was the biggest faller, down 16.41pc, followed by defence company Babcock, down 8.93pc
04:40 PM GMT
Telegraph readers on the economic malaise in Germany
John Condon writes:
China used to make cheap knock offs. No longer: their products are now typically on a par with German quality but at significantly lower prices. I remember being in Chongqing [in southwestern China] where the Germans built the first line on the metro system - trains, track escalators etc etc. There are now over 10 lines all built with no German input - but to the same standard. This isn’t new. It is exactly what the Japanese and South Koreans did.
Mike Doe says:
It remains an unfathomable mystery why Europe, and in particular Germany, has chosen to sacrifice its automotive industry and its associated jobs on the altar of net zero to benefit the Chinese Communist Party.
Robert Young writes:
So Germany forced into fire sale of state assets to fund its crumbling railway and road infrastructure! The glory days of the German economy are now well and truly over as it collapses into deep recession and gloom.
Rob Houghton comments on the high price of German exports:
German products, and especially cars, are now hugely expensive to buy. I suspect the Chinese are going to fill the gap.
Joshua Tamworth says:
Isn’t it strange that the elite always forecast the German economy more positively than actuals, and the UK more negatively than actuals.
04:33 PM GMT
Italian government to give tax breaks to farmers amid protests
Italy’s government will offer targeted tax breaks to help farmers facing hardship, a minister told the Italian parliament on Wednesday, amid a wave of protests across continental Europe.
Farmers have staged demonstrations to express their anger about low prices for produce, rising costs, cheap imports and burdens imposed by the EU’s climate change policies.
The protests have eased in France and Germany for now but appear to be growing in intensity in countries such as Spain and Italy, where groups of farmers have congregated outside Rome with their tractors.
The Italian government appears set to partially restore an income tax break which had been dropped in the budget law for 2024, accepting one of the farmers’ key requests.
“A measure aimed at providing tax exemption for those agricultural entrepreneurs who need effective support ... is being studied,” Italian minister Luca Ciriani said.
“It is clear that the main priority for this government in managing public resources is to use them to support the weakest,” added Mr Ciriani, a member of Giorgia Meloni’s Brothers of Italy party.
He said the tax breaks could be included in a government decree currently being examined in parliament.
04:27 PM GMT
Ford to launch cheap electric cars in battle with Chinese rivals
The US carmaker is moving away from expensive models to lure mainstream drivers, writes Melissa Lawford:
Ford is to launch a range of cheap electric vehicles as it seeks to compete with Chinese manufacturers and Tesla.
Read on to find out what Ford management is “ruthlessly focused” on...
04:22 PM GMT
Arm to report results amid artificial intelligence boom
Britain’s top technology firm, Arm Holdings, is issuing its quarterly results this evening - the second since it floated in New York.
The chip designer makes money by licensing designs that others manufacture, and its technology is used in electronics from companies including Apple and Samsung.
The company is expected to do well from demand for artificial intelligence services, with companies such as Microsoft attracted to the energy efficiency offered by Arm processors.
Sara Russo, an analyst at brokers Sanford C. Bernstein, said:
We expect positive long-term value commentary around Arm-based servers and laptops, but continue to believe we will have to wait for full-year 2025 for any significant recovery in royalty rates.
Arm shares are up 2.1pc in trading today.
04:02 PM GMT
America imports more from Mexico than China for first time in two decades
The US trade deficit narrowed in 2023 to the smallest in three years, American government data showed Wednesday, while the country imported more goods from Mexico than China for the first time in about two decades.
The latest figures add to a series of positive economic news for President Joe Biden, who has been working to boost sentiment on his handling of the economy as his November reelection campaign picks up pace.
For all of 2023, the overall trade gap was $773.4bn, down 18.7 percent from the $951.2bn figure in the prior year, US Commerce Department figures showed.
In 2022, the country saw the biggest deficit in government data dating back to 1960.
But the latest numbers showed a fall in the goods deficit last year, with imports of products dropping more than exports.
Purchases of supplies like crude oil and fuel oil fell, while Americans bought less consumer goods like clothing and cell phones as well.
This was partly due to the unravelling of consumption patterns during the Covid-19 pandemic, during which people cooped up at home spent on items including electronics as they worked remotely.
Meanwhile, exports of services increased last year, particularly in the travel sector, and the services surplus widened.
Surprisingly resilient consumption last year has helped to support the US economy, but analysts expect higher interest rates to slow consumer spending and add pressure on imports.
03:57 PM GMT
Snap founder loses $950m in stock market plunge
Shares in Snap, the company behind the social media app Snapchat, have plunged 34pc today after it released disappointing results and gave an uninspiring forecast for 2024.
The stock market reaction wiped $958m off chief executive Evan Spiegel’s stake in the firm.
In the final quarter of 2023, revenue rose 5pc to $1.36bn in the fourth quarter of 2023, missing the $1.38bn average of analysts’ estimates and disappointing investors after strong results for the quarter from Facebook owner Meta.
The company continued to lose money, posting a loss of $1.3bn, although this was at a slightly lower level than in 2023.
The company is continuing to forecast losses this year, with revenue growing by 11pc to 15pc.
The company pre-empted the results by announcing on Monday that it would lay off about 10pc of its workforce, amounting to about 500 employees.
Mr Spiegel said: “2023 was a pivotal year for Snap, as we transformed our advertising business and continued to expand our global community, reaching 414 million daily active users.
“Snapchat enhances relationships with friends, family, and the world, and this unique value proposition has provided a strong foundation to build our business for long-term growth.”
03:37 PM GMT
Handing over
That’s all from me today. My colleague Alex Singleton will keep you furnished with the latest essential updates.
03:19 PM GMT
Sainsbury's boss refuses to rule out job losses in £1bn cost cutting plan
The boss of Sainsbury’s has refused to rule out job losses under plans to slash costs by £1bn as the chain revealed it will cut general merchandise and clothing space and expand its food offering.
The UK’s second biggest supermarket unveiled a strategy update that will see it boost food space across all its near-600 supermarkets, while focusing expansion efforts on 180 of its “highest potential” sites, which will see about 10pc more space dedicated to food.
But it will also cut its general merchandise and clothing offering across many shops, with between 20pc to 30pc less store space for non-food ranges in the 180 shops.
The retailer suggested jobs may be in the firing line, as it said it would cut costs by £1bn over the next three years, while investing in technology and artificial intelligence (AI).
Chief executive Simon Roberts refused to rule out job losses as the group plans to use AI to increase automation.
He said the group would look to “protect jobs as much as possible” by being flexible and to “re-skill” and “re-deploy where we can”.
Our retail editor Hannah Boland has the details.
03:09 PM GMT
Germany forced to slash DHL stake by €2.2bn to fix railways - live updates
Germany has been forced to sell off some of its stake in package deliverer DHL as it struggles to improve the country’s rail network amid a budget crisis.
The KfW bank, which holds the government’s remaining stakes in previously state-held companies, said it has sold 50 million shares of Deutsche Post, the name under which it still trades on the stock exchange.
The €2.2bn (£1.9bn) sale, at €43.45 each, cuts the German state’s share in the company by 4pc to 16.5pc.
Germany’s finance ministry said the money would be used to strengthen the capital of Germany’s main railway operator, the state-owned Deutsche Bahn, and to improve railway infrastructure.
The government has been forced to turn to share sales to help finance improvements to the rail network after a court ruling forced it to plug a big hole in this year’s budget and reconsider its wider financial plans.
In November, Germany’s highest court annulled a decision made by the government in 2022 to repurpose €60bn originally meant to cushion the fallout from the pandemic for measures to help combat climate change and modernise the country.
02:56 PM GMT
Javid in running to be chairman of Standard Chartered
Sir Sajid Javid is among the potential candidates to become the next chairman of Standard Chartered.
Our reporter Adam Mawardi has the latest:
The former Chancellor has reportedly been approached about leading the London-listed bank when its chairman José Viñals steps down.
It comes as Asia-focused Standard Chartered grapples with a hit from China’s property crisis.
02:41 PM GMT
S&P 500 hits fresh record high
The S&P 500 hit a fresh record high as stock markets across Wall Street were boosted by megacap and chip stocks.
The benchmark US stock market opened higher by 18.82 points, or 0.4pc, at 4,973.05, while the Dow Jones Industrial Average rose 92.53 points, or 0.2pc, at the open to 38,613.89.
The tech-heavy Nasdaq Composite gained 81.36 points, or 0.5pc, to 15,690.35 at the opening bell.
02:33 PM GMT
EU in fresh push to move financial trading away from London
EU officials moved a step closer to wrenching control over euro clearing back from London today after reaching a key political agreement on new clearing rules.
Our reporter Michael Bow has the latest:
Officials from the EU Council and the EU Parliament backed a package of measures from the European Commission forcing banks clearing euro-derivatives trading to send a minimum portion of trades through EU-based institutions.
02:22 PM GMT
Carlsberg hit by £4.7bn loss after Putin seizes Russian business
Carlsberg has plunged to a £4.7bn loss after the Kremlin commandeered its Russian business.
Our senior business reporter Daniel Woolfson has the details:
Carlsberg’s Russian business unit, Baltika Breweries, was seized by Russian authorities last year after the Danish brewer tried to sell it and exit the country.
Read how the seizure of Carlsberg’s Russian business comes amid a clampdown on Western-owned assets in Russia by Vladimir Putin.
01:58 PM GMT
Alibaba boosts share buybacks by $25bn
Chinese e-commerce giant Alibaba added another $25bn (£19.8bn) to its share buyback program as it tried to reassure investors amid lower-than-expected sales revenue for the last quarter of 2023.
Alibaba posted a 5pc increase in sales to 260.3bn yuan (£29bn) for the three months to December, slightly missing analyst estimates.
Net income sank to 14.4bn yuan (£1.6bn), down 77pc compared to the same time last year.
The Hangzhou-based business attributed the drastic drop in net income to the decrease in value of its equity investments and a decrease in income from operations due to that.
Alibaba’s New York-listed stock price fell about 4pc in premarket trading following the report.
Alibaba chief executive Eddie Wu said: “Our top priority is to reignite the growth of our core businesses, e-commerce and cloud computing.”
01:43 PM GMT
Electric cars are not ‘zero emission’, says advertising watchdog
Electric cars cannot be advertised as completely “zero emission” because of the carbon dioxide that is generated when they are made and charged, the advertising watchdog has declared.
Our industry editor Matt Oliver has the details:
In a ruling that will change how electric vehicles (EVs) are promoted, the Advertising Standards Authority has banned carmakers from referring to them as zero emission unless they make clear this is only while driving.
The ruling comes as demand for electric cars has waned.
12:57 PM GMT
Breakaway bar axed amid declining sales
When was the last time you had a Breakaway bar? For many of you, the answer is “I have no idea” or “a very long time ago” and that is the way it is likely to stay forever.
The Breakaway and Yorkie biscuit bars are to disappear from shelves following a decline in sales, maker Nestle has announced.
The Yorkie Biscuit is not to be confused with Yorkie chocolate bars, which Nestle said are “staying for good”.
Nestle said the chocolate-covered Breakaway will no longer be produced from March, to make way for new products.
Breakaway fans can still buy the bar throughout February and March at Sainsbury’s while stocks last.
The Breakaway, made with wholemeal, oat and coconut flours, was launched in 1970 by Rowntree Mackintosh before being acquired by Nestle in 1988.
It follows Nestle blaming falling sales on its decision in November to discontinue the Caramac bar after 64 years.
12:42 PM GMT
Wall Street mixed amid interest rate doubts
US stock indexes were subdued in premarket trading as investors grapple with uncertainty about the outlook for interest rate cuts.
Ford jumped 6pc in premarket trading after the car maker increased its first-quarter dividend and decided to scale back investments in new capacity for loss-making electric vehicles. General Motors also added 1.4pc.
On the flip side, Snap slumped 32.3pc after missing quarterly revenue estimates, as the Snapchat-owner struggled to compete for advertising dollars against heavyweights such as Meta and Alphabet. Peer Pinterest shed 3.8pc.
Uber announced its first full-year operating profit and forecast quarterly core profit and gross bookings above estimates. However, its shares were last down 1.7pc ahead of the opening bell.
Wall Street has been relatively quiet this week following a stellar performance in the months before which saw the benchmark S&P 500 hit record highs.
In premarket trading, the Dow Jones Industrial Average was down 0.1pc, the S&P 500 was flat and the Nasdaq 100 was up 0.1pc.
12:14 PM GMT
Uber records first operating profit as bookings surge in 'standout year'
Uber secured its first full-year operating profit as its number of bookings jumped in the run-up to Christmas in what its boss said was a “standout quarter to cap off a standout year”.
Operating income swung from a loss of $1.8bn (£1.4bn) to a profit of $1.1bn (£870m).
Gross bookings - which includes deliver orders, ride hailing and driver earnings - grew 22pc to $37.6bn (£29.8bn) in the final three months of 2023.
The number of trips and monthly active platform consumers grew 24pc and 15pc, respectively, compared to the same period the previous year.
Chief executive Dara Khosrowshahi said:
2023 was an inflection point for Uber, proving that we can continue to generate strong, profitable growth at scale.
11:59 AM GMT
German economy 'likely' to shrink again this quarter, say analysts
The German economy is already threatened by recession after output shrank 0.3pc in the final three months of last year.
Our economics editor Szu Ping Chan analyses the backdrop for Europe’s largest economy:
Analysts believe the German economy could shrink again in the current quarter as ailing manufacturers struggle to adapt to a world without cheap Russian energy after the Kremlin’s invasion of Ukraine.
11:47 AM GMT
Oil prices edge higher as analysts hail 'global revival'
Oil prices have edged higher after a two-day gain amid the geopolitical risk in the Middle East - and some analysts think prices could be about to shift higher.
Brent crude was last up 0.6pc to tip above $79 a barrel after climbing 1.6pc over the previous two sessions, while West Texas Intermediate was up 0.6pc to just under $74.
Houthi rebels said they targeted two ships in the southern Red Sea, the latest in a string of attacks that has forced a major re-routing of global trade. The US has vowed more strikes against Iranian forces and their proxies in the region.
However, the industry-funded American Petroleum Institute has kept a lid on price rises for now after it said US nationwide crude inventories rose 674,000 barrels last week.
Bjarne Schieldrop, chief commodity analyst at Swedish bank SEB, said signs of a revival in the global economy will eventually push prices higher as Saudi Arabia decides against increasing production. He said:
With emerging signs of a global revival, it is very unlikely that Saudi/OPEC+ will cave in and switch from “price over volume” to “volume over price”.
11:25 AM GMT
Meta 'directly incentivised' to fix fraud on platform, manager tells MPs
Philip Milton, public policy manager for fraud at Meta, told the Home Affairs Select Committee that the tech giant took the issue of fraud on the platform “extremely seriously”.
Responding to evidence from the banking sector about large-scale fraud occurring on Facebook Marketplace, Mr Milton said fraud “fundamentally undermines the experience we’re trying to provide for people” and said this, combined with fraudulent advertising impacting trust in the company from advertisers, meant the tech giant was “directly incentivised” to do all it can to prevent criminal activity.
When suggested by the committee that the evidence to MPs from the banks showed Meta was not doing all it could to prevent online fraud, Mr Milton said:
I disagree with that. To give you an idea of the scale that we’re putting in place to tackle this kind of thing, since 2016 we’ve invested 20 billion dollars on safety and security, and that’s not slowing down - five billion of that was in the last year alone.
11:12 AM GMT
Gas prices subdued amid mild weather
A quick look at the energy markets, where wholesale gas prices remain subdued as mild winter weather reduces demand for heating.
Europe’s benchmark contract fell as much as 2.6pc today and was last down 0.2pc to less than €29 per megawatt hour.
Prices have fallen more than 30pc since October as temperatures remained above usual levels, keeping already extra-full storage sites well stocked.
The UK equivalent contract was down 0.7pc, having fallen as much as 3.2pc in early trading.
10:46 AM GMT
Pound gains as house prices rise sharply
The pound has risen against the dollar as the latest figures showed house prices in Britain rose at their fastest annual pace in a year - supporting bets that the Bank of England is unlikely to cut interest rates soon.
Sterling was up 0.3pc to $1.26 as property values jumped for the fourth month in a row, according to Halifax.
The pound was also up 0.2pc against the euro, which is worth 85p, as Bank of England policymaker Sarah Breeden said the next few months were “incredibly important” in assessing the impact of wages on inflation.
10:30 AM GMT
Next few months 'incredibly important' for interest rates, says Bank of England policymaker
Tumbling inflation and slowing pay growth could open the way to lower interest rates in the coming months, the Bank of England’s newest monetary policymaker has hinted.
Our deputy economics editor Tim Wallace has the latest:
Sarah Breeden, who joined the Monetary Policy Committee in November, said last year’s worries over the persistence of inflation have started to fade.
10:14 AM GMT
Eight in 10 of most common frauds start on social media, says bank chief
Eight in 10 of the most commons financial frauds faced by consumers begin on social media, MPs have been told.
Paul Davis, financial crime prevention director at TSB, told the Home Affairs Committee:
The three main types of fraud that impact our customers are purchase scams, they’re the most common, although they tend to be lower value; investment scams, which are a bit less common but tend to be very high value; and impersonation scams.
He added: “For purchase scams, we find Facebook Marketplace is the main place where those scams originate.”
09:53 AM GMT
Imperial Leather maker's shares slump by fifth amid hit from Nigerian economy
Shares in Imperial Leather maker PZ Cussons have plunged after the consumer goods giant revealed it had swung to a loss, as it continues to be rocked by volatility in the Nigerian economy.
The Manchester-based maker of household brands including Imperial Leather, Carex and St.Tropez said “we have clearly had our challenges” as it unveiled its half-year results.
The company showed it swung to a statutory pre-tax loss of £94.2m in the six months to December, down from a profit of £40.5m the previous year.
Revenues fell by nearly 18pc over the same period, from £336.9m to £277.1m.
The business has a major market in Nigeria, which represents more than a third of its total sales, and has regularly stressed a prolonged slump in the value of the naira, the country’s currency, has wiped money from its sales.
It said the currency is about 70pc weaker than a year ago, which represents the biggest drop in value in its history. Inflation in the region is also at a 30-year high of nearly 30pc.
PZ Cussons said this led to foreign exchange losses of about £88m, dragging on its profits and sales.
Shares in PZ Cussons were down as much as 20.1pc to take it to the bottom of the FTSE 250.
09:35 AM GMT
Wind turbine maker Siemens Energy back in profit after quality issues
Siemens Energy swung to a €1.6bn (£1.3bn) net profit thanks to a one-off gain from the sale of a subsidiary to its parent company.
Our energy editor Jonathan Leake has the latest:
The troubled German-based company, which makes wind turbines used in many UK wind farms, is recovering from a financial crisis caused partly by quality issues in some of its onshore models and partly by industry-wide inflation and supply problems.
09:29 AM GMT
Pandora charms investors with share buyback
Pandora, the world’s biggest jewellery maker, said its performance since the start of the year has been “healthy” with high single-digit sales growth, as it announced a share buyback programme after a strong run.
Pandora, which sells charm bracelets, has been a rare bright spot among retailers and brands targeting aspirational consumers with affordable luxury items.
The company aims for organic revenue growth of 6pc-9pc in 2024, after reporting strong sales of its silver charms and bracelets which have helped its share price to more than double since the start of last year.
Soren Lontoft Hansen, senior analyst at Sydbank, said: “Despite the worldwide macroeconomic uncertainties… the company is manoeuvring strongly and better than the market.”
The growth target is in line with a goal set in October for a 7-9pc compound annual growth rate from 2023 to 2026.
Pandora also announced a share buyback programme of up to 4 billion Danish krona (£457.1m), and a dividend of 18 Danish crowns per share. Its shares rose 0.5pc at the open.
09:13 AM GMT
FTSE 100 falls as Barratt shareholders turn sour on takeover
UK shares have edged downwards in early trading amid a a sell-off in precious mining stocks and uncertainty over interest rate cuts.
The blue-chip FTSE 100 was down 0.2pc, while the mid-cap FTSE 250 index was flat.
It was a good start for housebuilders after house prices rose at their the strongest annual rate in a year last month, adding to tentative signs of momentum in the property market.
Developers across the FTSE 100 and 250 gained as much as 1.7pc before settling at gains of 0.1pc as a merger between Barratt and Redrow was also announced.
Barratt Developments shares dropped as much as 8.9pc to the bottom of the FTSE 100 while Redrow shares climbed as much as 16.7pc to the peak of the FTSE 250.
However, markets were dragged down by precious metal miners, which shed as much as 1.2pc on lower gold prices, ahead of speeches by Federal Reserve officials through the week.
Soap maker PZ Cussons forecast a lower annual profit and slashed its interim dividend, sending its shares as much as 16.6pc lower to the bottom of FTSE 250.
09:05 AM GMT
'Limited downside' for Barratt in Redrow deal, says analyst
Analysts have been bashing away at their keyboards to make sense of Barratt’s takeover of rival housebuilder Redrow.
Quilter Cheviot property fund research analyst Oli Creasey said:
By some measures, Barratt is already the largest public housebuilder in the UK. It isn’t the most valuable company by market cap, but the volume of houses built in the past year is ahead of any of its peers.
08:56 AM GMT
German industrial recession turns 'ugly' in latest plunge
German industrial production fell for a seventh straight month, official data showed, marking its longest series of declines since the period after reunification in the early 1990s.
Output plunged by 1.6pc in December compared to the previous month, federal statistics agency Destatis said, following a revised 0.2pc fall in November.
The drop was far worse than the 0.35pc decline predicted by analysts at FactSet and caps the longest run of falls since 1993.
Melanie Debono at Pantheon Macroeconomics described the figures as “ugly”, adding: “The recession in industry will continue this quarter.”
The sharper-than-expected decline was driven by steep falls in the chemical industry and the construction sector. The car industry meanwhile saw a 4pc rise in production.
For the whole of 2023, industrial output was 1.5pc lower than a year earlier, Destatis said, and still below pre-pandemic levels.
Germany’s crucial industrial sector, which used to be heavily reliant on cheap Russian gas imports, has been reeling ever since Moscow’s invasion of Ukraine pushed energy costs higher.
Higher interest rates and weaker export demand have added to the economic headwinds, as its economy shrank by 0.3pc last year.
Capital Economics economist Franziska Palmas said that industry “remains a significant drag on growth”.
She added: “We expect this to continue throughout 2024.”
08:39 AM GMT
Orsted cuts jobs and scales back offshore wind projects amid spiralling costs
Orsted, one of the UK’s major wind farm builders and operators, has been forced to halt dividend payments and pull out of several global markets as it deals with a cash crisis.
Our energy editor Jonathan Leake has the details:
The company, which operates 12 UK windfarms, is also pulling of of several international markets, including Norway, spain and Portugal and cutting back its US operations.
08:32 AM GMT
TotalEnergies reports record profits - but still misses market expectations
TotalEnergies has reported the highest profit in its history - but still missed analyst expectations despite outperforming peers like Shell and BP.
The French company said profit came in at $21.4bn (£17bn) in 2023, an increase of 4pc on the previous year but below predictions of $23.7bn.
Its bottom line put the French energy conglomerate ahead of Shell, BP, Exxon-Mobil and Chevron, which all reported lower earnings in the face of weaker energy prices.
However, TotalEnergies’s 2022 net profit had been weighed down by a huge exceptional charge - $15bn - from its withdrawal from Russia following the invasion of Ukraine.
Once non-recurring items were stripped out, profits suffered a sharp downturn last year, with adjusted net profit falling 36pc to $23.2bn.
Oil and gas prices dropped some 10pc on average last year from 2022 when spiking oil prices had boosted earnings at energy companies worldwide.
Chairman Patrick Pouyanne called the results “robust”, saying in a statement they had been achieved in “an uncertain environment”. Hydrocarbons had performed well, he said.
08:12 AM GMT
Barratt and Redrow shares mixed after mega merger
It has been a mixed story for the shares of Barratt and Redrow after the announcement of their merger.
Barratt shares have slipped 3.7pc - perhaps as shareholders bulk at the idea of holding 67.2pc of a combined company.
Meanwhile, Redrow shares have surged by as much as 17pc after recommending the takeover, which values the business at £2.5bn.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said:
The economic winds have not been kind to the housebuilders and Barratt Developments and Redrow clearly believe they’ll be stronger together, giving the new combined company much bigger clout to capitalise on the structural need for housing in the UK.
08:04 AM GMT
UK markets open higher
The FTSE 100 opened higher following large gains on Wall Street and after Chinese regulators issued another set of market-enhancing policies.
The UK’s blue chip index began the day up 0.1pc to 7,688.72 while the midcap FTSE 250 rose 0.2pc to 19,208.63.
07:51 AM GMT
Sainsbury's to slash clothing aisles as it seeks to save £1bn a year
Sainsbury’s has unveiled plans to overhaul its supermarkets with a focus on creating more food space and revealed aims to slash costs by £1bn over the next three years.
The UK’s second biggest supermarket chain said it would cut its general merchandise offering and clothing offering across many sites to create more space for food and ensure it is offering full grocery ranges in more stores.
In its strategy update, the group said it will also “tighten the focus” of its non-food ranges, while adding there would be more changes for its Argos store estate, having already shut a raft of sites to bring many within supermarkets since it bought the retailer.
The new plan - called Next Level Sainsbury’s - will see it cut costs by £1bn over the next three years, focusing on technology investments to deliver automation and savings.
07:40 AM GMT
House prices will rise 3pc this year, say economists
The increase in house prices for a fourth month in a row puts Britain about halfway towards a 3pc increase in house prices this year already, according to economists.
Andrew Wishart, senior property economist at Capital Economics, said:
The Halifax index has a track record of being quick to respond to changes in mortgage rates, so the large increases of 1.1pc in December and 1.3pc in January reflect the swift drop in the average quoted mortgage rate from 5pc in November to about 4.5pc in January.
He added: “While we doubt that will continue (prices would rise by over 10pc this year if it did), our non-consensus call that house prices will rise this year looks like the right one.”
07:36 AM GMT
Barratt takeover will leave Redrow in 'much better position' says boss
The tie-up between Barratt and Redrow is expected to eventually lead to savings of at least £90m a year, the companies said.
It comes as British housebuilders recover from the worst downturn since the financial crisis as high property prices and mortgage rates triggered a slump in sales last year.
Last summer house price falls in July were more widespread than at any point since 2009, according to Rics’ UK residential market survey of estate agents.
Redrow chief executive Matthew Pratt said:
Redrow and Barratt combined creates a leading UK homebuilder.
He added: “The Redrow brand, with its premium, characterful homes, has an excellent reputation and will remain a key part of the Combined Group. As with Barratt, Redrow’s fifty-year success story is based on its people, products and supply chain partners. Both businesses are a great fit and there are many exciting opportunities to innovate and share knowledge across a range of different areas.”
07:25 AM GMT
Housebuilding giant Barratt strikes £2.5bn merger deal with Redrow
House builder Barratt will merge with its rival developer Redrow as the sector consolidates after the downturn caused by high interest rates.
Barratt said it will buy the entire issued and to be issued share capital of its rival as part of the deal, creating a combined group which will be renamed as Barratt Redrow.
The merger deal will offer Redrow shareholders 1.44 of new Barratt shares at a premium of 27.2pc, valuing the developer at £2.5bn.
Once the takeover is complete, Redrow shareholders will hold approximately 32.8pc of the combined group and Barratt shareholders will hold approximately 67.2pc.
Barratt chief executive David Thomas said the combined businesses “would leverage the respective strengths of both Barratt and Redrow, delivering significant benefits to our people, our supply chains, and - most importantly - our customers”.
Redrow founder Steve Morgan added that Barratt is a home builder he has “long admired,” while chief executive Matthew Pratt said the combined companies “creates a leading UK homebuilder”
07:11 AM GMT
House prices enjoy strongest gains in a year
House prices rose last month as falling mortgage rates increased the number of potential buyers, according to an industry survey.
Property values increased by 1.3pc in January compared to the previous month, according to the Halifax house price index.
It was the fourth monthly gain in a row after six consecutive falls before that.
The survey found that average house prices increased to £291,029, which was £3,900 more than last month.
Compared to the same month last year, property prices grew by 2.5pc, which was the highest annual growth since January 2023.
Halifax Mortgages director Kim Kinnaird said:
The recent reduction of mortgage rates from lenders as competition picks up, alongside fading inflationary pressures and a still-resilient labour market has contributed to increased confidence among buyers and sellers. This has resulted in a positive start to 2024’s housing market.
07:07 AM GMT
Good morning
Thanks for joining me. House prices increased for a fourth month in a row following the recent reduction in mortgage rates from lenders, according to the latest Halifax house price index.
Average house prices increased to £291,029, which was £3,900 more than last month.
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What happened overnight
Asian stocks firmed on Wednesday as investors waited to see if Beijing’s increasingly frantic efforts to prop up its sagging share markets would actually work, while bonds enjoyed a reprieve from recent selling.
In recent days, China’s regulators have announced further curbs on short selling and state investors said they were expanding their stock buying plans.
Bloomberg News also reported President Xi Jinping would discuss the stock market with financial regulators, though there was no confirmation this had happened or what was discussed.
However, the jury is very much out on how effective all this will prove and the blue chip index inched up 0.4% in choppy early trade, while Shanghai stocks added 0.9%.
Tokyo’s blue-chip Nikkei shares drifted lower as investors digested corporate earnings.
The benchmark Nikkei 225 index eased 0.1pc, or 40.74 points, to end at 36,119.92, while the broader Topix index added 0.4pc, or 10.70 points, at 2,549.95.
Wall Street drifted higher during a quiet Tuesday as the bond market calmed down following some sharp swings.
The S&P 500 rose 0.2pc, to 4,954.23, and nearly returned to its all-time high set at the end of last week. The Dow Jones Industrial Average of 30 leading American companies gained 0.4pc, to 38,521.36, and the Nasdaq Composite index edged up by 0.1pc, to 15,609.00.
In the bond market, the yield on the 10-year Treasury bonds relaxed following its slingshot ride higher in recent days. It eased to 4.09pc from 4.17pc late on Monday.