In This Article:
The pound has surged to its highest level against the euro in two-and-a-half years as policymakers prepare to cut interest rates to support the struggling European economy.
Sterling has strengthened amid expectations that the Bank of England will leave interest rates unchanged at its meeting next week, even as borrowing costs remain higher than the eurozone.
The single currency has dropped to be worth just 82.5p, its weakest level since April 2022, as the European Central Bank (ECB) is expected to lower borrowing costs on Thursday.
It comes as the eurozone braces for potential trade tariffs from Donald Trump’s impending administration, while the governments in both France and Germany have collapsed.
Money markets expect the ECB will cut interest rates by 152 basis points by the end of next year - equivalent to six quarter of a percentage point cuts - from 3.25pc now to about 1.75pc.
However, traders think the Bank of England will cut interest rates just three times over the same period, from 4.75pc now to 4pc.
Elias Haddad, senior markets strategist at Brown Brothers Harriman, said: “Stubbornly high UK services inflation argues for a cautious BOE easing cycle.
“In contrast, political paralysis in France and Germany means the ECB will have to do the heavy lifting to support the euro zone economy.”
The pound was up 0.1pc against the dollar to $1.276.
Read the latest updates below.
06:40 PM GMT
DJ Sol: Trump will be good for Goldman Sachs
Donald Trump’s upcoming presidency will be good for Goldman Sachs - at least according to the Wall Street banking giant’s boss.
“I am quite optimistic that this administration is going to run a very very pro-growth agenda,” David Solomon said on Tuesday.
That will be “good for Goldman Sachs”, said the chief executive, who performs as disk jockey “DJ Sol” in his spare time.
Businesses expect the incoming president to slash regulation, Solomon explained, boosting asset prices and deal-making activity - the key ingredients for turbo-charging the lender’s business.
Meanwhile, Trump has hedge fund manager Scott Bessent will be Treasury Secretary and Howard Lutnick, chief executive of financial services giant Cantor Fitzgerald, to run the Commerce Department.
“I know Scott, and I know Scott has great insight into markets and capital flows,” Solomon added. “We are very, very excited to work with the new economic team.”
05:27 PM GMT
Worst day for FTSE in a month
The FTSE 100 finished 0.9pc lower on Tuesday, the worst day for the blue-chip index since November 12.
Meanwhile, the midcap FTSE 250 was also down 0.4pc in its worst session for two weeks.
Shares of mining giants Glencore, Antofagasta and Anglo American were among those that fell, amid falling copper prices, a slowdown in Chinese export growth and a strong dollar.
05:20 PM GMT
Al Qaeda offshoot “promises free market in Syria”
Syria’s new government has reportedly told business leaders it will adopt a free-market model and integrate the country into the global economy, according to news agency Reuters.
Such a change would mark a major shift from decades of strict state control and corruption under the Assad regime, the report says.
It comes as businesses are looking for clues as to how rebel forces now in control of Syria, including Islamist group and former l Qaeda offshoot Hayat Tahrir al-Sham, will run the country after ending the Assad family’s 54-year autocracy.
“It will be a free-market system based on competition,” said Bassel Hamwi, head of the Damascus Chambers of Commerce, which took part in a meeting with interim economy minister, Bassel Abdul Aziz.
One Beirut-based Syrian businessman, who asked to remain anonymous, added: “People are still waiting to see if it will be an open society or an Islamic state.”
04:55 PM GMT
Google parent surges on quantum computing breakthrough
Shares in Google parent Alphabet have surged following the company’s breakthrough in quantum computing.
The stock has gained 6pc and is trading at the highest level since July, after Google unveiled a revolutionary new computer chip called Willow.
According to the tech giant, the chip can complete calculations that would take a conventional supercomputer 10 septillion years in just five minutes.
One septillion is equal to one trillion trillion.
Colin Sebastian, an analyst at Baird, said the breakthrough “reinforces Google’s technology leadership” in the quantum computing space.
03:14 PM GMT
Britvic boss lands biggest pay packet in ten years
Britvic boss Simon Litherland has been handed his biggest pay packet in ten years as the Robinsons maker prepares for a takeover by Carlsberg.
Mr Litherland took home £4.69m in total remuneration last year, up from £2.86m a year earlier.
The company said its executive pay-out plans marked “a fair reflection of company and individual performance and align with the broader stakeholder experience”.
It is the biggest payout for the Britvic boss since he took over at the helm of the company in 2014. The package comes ahead of a takeover by Carlsberg, which agreed to pay £3.3bn for Britvic over the summer.
Britvic had rejected two initial approaches, but agreed to a deal in July. It will see Carlsberg pay 1,290p in cash for each Britvic share and Britvic shareholders a special dividend of 25p.
02:42 PM GMT
Wall Street mixed ahead of crucial inflation report
Wall Street has been mixed on Tuesday as investors brace for a key inflation report later this week.
The Dow Jones fell by 0.25pc at the open, while the S&P 500 was up 0.08pc and the Nasdaq rose 0.3pc.
It comes as traders look ahead to US CPI inflation figures out tomorrow, which are likely to feed in to interest rate decisions by the Federal Reserve.
02:21 PM GMT
How the newspaper baron known as ‘Rommel’ came under fire
When newspaper executive David Montgomery crashed back into the UK local media industry in 2012, he proudly declared a “fightback” for regional titles.
Since buying up a stable of local newspapers from Daily Mail owner Lord Rothermere, the tycoon has expanded his newspaper empire to include titles such as The Scotsman and The Yorkshire Post.
But despite his best efforts, local journalism has continued its inexorable decline, and National World remains a minnow.
Now Montgomery, nicknamed “Monty” and “Rommel”, has been defeated in a power struggle with his largest shareholder, who is poised to take control of the company in a £62m deal.
So is this the end of the road for one of Britain’s most notorious proprietors?
02:07 PM GMT
Begbies Traynor expects more companies to come under strain
Insolvency specialist Begbies Traynor has said it expects more companies to struggle over the coming months after the Chancellor pushed up costs for businesses in her Budget.
The company said insolvencies in the UK were at “elevated levels”, with high-profile names including Typhoo Tea having collapsed in recent weeks.
Begbies Traynor said: “We anticipate continuing growth in business recovery, our largest service line, as businesses face continuing demand pressures and cost challenges, including the recent rise in costs following the Budget and the prospect of higher-for-longer interest rates.”
It comes after weeks of criticism from business chiefs over the Budget. UKHospitality, the trade group for pubs and restaurants, warned the higher costs from National Insurance changes and minimum wage increases, would cause small business closures.
Typhoo Tea last month collapsed into administration after two weeks of efforts to pay back debts.
Vape maker Supreme bought the business. It said it was planning to relaunch the 121-year-old company as an iced tea maker.
01:47 PM GMT
Financial watchdog accused of failing to help thousands of customers
Britain’s financial watchdog has been accused of failing to help thousands of people who were excluded from a bank redress scheme.
Lawyers representing Britain’s All-Party Parliamentary Group on Fair Business Banking have claimed the Financial Conduct Authority acted in an “unfair” manner.
In a High Court case which kicked off today, they claimed the watchdog had shut out some small businesses from compensation after they were mis-sold interest rate hedges. They argue thousands of customers were left out because of a “sophistication test”.
An independent review into the case previously found that those sales were excluded “without proper justification”. However, the FCA did not take any further action at the time.
The FCA has argued that it is entitled to disagree with findings from an independent review and said, in this case, the review did not call for the watchdog to seek further redress from the banks.
The FCA’s lawyers have claimed that the watchdog opted for a voluntary redress scheme as it would likely lead to “fair and faster redress than customers might otherwise receive”.
01:34 PM GMT
FTSE 100 falls as miners hit by copper slump
The FTSE 100 was still down after a fall in mining shares.
The blue-chip index fell 0.6pc, while the midcap FTSE 250 was down 0.3pc.
Shares of miners Glencore, Antofagasta and Anglo American fell between 1.8pc and 2.3pc as copper prices slipped against a strengthening US dollar.
Dismal trade numbers from China also hit the red metal.
Ashtead dropped 12.3pc after it warned of lower-than-expected annual profit and proposed to move its primary listing to New York from London.
NCC Group dropped 17.5pc to the bottom of the FTSE 250 after the cyber security company swung to an annual operating loss.
FirstGroup was a bright spot, rising 3.7pc, after the public transport operator agreed to acquire RATP London.
With that, let me thank you for following the blog so far and I will hand you over to the one and only Hannah Boland, who will keep you updated from here.
01:12 PM GMT
Household energy bills could rise again in April, analysts warn
Households could be in for yet another rise in energy costs from April as market “turbulence” and price cap reforms feed through to bills, analysts say.
The latest forecast from Cornwall Insight suggests that the energy price cap could rise to £1,762 a year for a typical dual fuel consumer, a 1pc increase from the cap of £1,738 that comes into effect on January 1.
Cornwall Insight said the forecast reflected the economic and geopolitical factors influencing wholesale prices.
It warned that continued uncertainty regarding the future of the Russia-Ukraine conflict and its implications for gas supplies to Europe was now playing out against the second Donald Trump presidency and its impact on gas exports from America.
Meanwhile, new energy network charges and other costs was also compounding an increase in the underlying costs of electricity and gas.
There was also the prospect of reforms adding extra costs to the cap, which could add at least another £20 to annual bills, Cornwall said.
Factoring in the proposed reforms, forecasts suggested the cap could rise to around £1,782, or a 2.5pc increase from January. Prices are still expected to fall in July next year.
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “Energy bills in 2025 are shaping up to reflect a perfect storm of regulatory changes and market turbulence, in addition to any broader sector reforms put forward by the new Government.”
12:57 PM GMT
Euston caves and puts train times on infamous billboard after commuter anger
London Euston will display train times on its infamous giant billboard following a backlash from commuters.
The giant screen had displayed adverts since the start of the year but was switched off in October after complaints it was taking priority over train time information.
Network Rail bosses said the 200ft screen will be turned back on from Wednesday “in response to feedback from passengers wanting to see a return of a large focal point on the concourse for travel information”.
It comes after the rail body faced severe criticism over train delays at Euston.
12:30 PM GMT
Moonpig suffers loss as shoppers seek cheaper gifts
Moonpig has swung to a loss over the first half of its financial year, as it revealed consumers are opting for cheaper experience gifts like bar vouchers or meal subscriptions.
Shares in the online greeting cards retailer tumbled by more than 12pc as it reported a loss before tax of £33.3m for the six months to the end of October, compared with a profit of £18.9m generated a year ago.
Total revenues for the group, which includes Dutch brand Greetz, nonetheless grew 3.8pc year-on-year to £158m.
This was driven by a higher volume of orders for Moonpig, which saw sales jump by a tenth.
It also saw a bigger proportion of spending on customising cards, including audio messages, artificial intelligence (AI)-generated text suggestions, stickers and photos.
But Moonpig said a more challenging economic environment was affecting its experience gifts business, which saw revenues tumble by more than a fifth year-on-year.
The experiences, which range from spa days and helicopter tours to afternoon tea and cinema tickets, are more costly and rely on discretionary spending, which has been squeezed during the cost-of-living crisis, Moonpig said.
Consumers have instead been opting for more affordable experiential gifting options, with the retailer reporting a good response to new casual dining vouchers with brands like Slug and Lettuce and BrewDog.
12:14 PM GMT
Wall Street muted ahead of inflation figures
US stock indexes were subdued in premarket trading in the lead up to crucial inflation figures which could influence the Federal Reserve’s next decision on interest rates.
The November consumer prices index is expected to show a slight increase in inflation last month, with the Fed holding its next monetary policy meeting from December 17 to 18.
Traders are betting there is an 86pc chance that the Fed will deliver another quarter of a percentage point interest rate cut next week.
Bets had jumped after Friday’s employment report that showed a surge in job growth but also marked an uptick in unemployment.
Wall Street’s main indexes closed lower on Monday after a decline in technology stocks led by Nvidia.
The Chinese market regulator launched a competition investigation into the AI chip giant on Monday. Its shares were down 0.9pc in premarket trading.
Ahead of the opening bell, the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were all down less than 0.1pc.
11:58 AM GMT
Couple behind PinkNews accused of slapping employee on bottom and kissing drunk staff
A married couple who run the world’s largest LGBTQ+ media company have been accused of sexual misconduct by former and current staff members.
Benjamin Cohen, the founder and chief executive of PinkNews, and his husband, Dr Anthony James, the chief operating officer, are alleged to have behaved inappropriately towards younger male employees.
More than 30 current and former members of staff have claimed that a heavy drinking culture at the company was behind some of their behaviour, the BBC has reported.
Read what witnesses have claimed.
11:51 AM GMT
Pound surges against euro as European economy struggles
The pound has surged to its highest level against the euro in two-and-a-half years as policymakers prepare to cut interest rates to support the struggling European economy.
Sterling has strengthened amid expectations that the Bank of England will leave interest rates unchanged at its meeting next week, even as borrowing costs remain higher than the eurozone.
The single currency has dropped to be worth just 82.5p, its weakest level since April 2022, as the European Central Bank (ECB) is expected to lower borrowing costs on Thursday.
It comes as the eurozone braces for potential trade tariffs from Donald Trump’s impending administration, while the governments in both France and Germany have collapsed.
Money markets expect the ECB will cut interest rates by 152 basis points by the end of next year - equivalent to six quarter of a percentage point cuts - from 3.25pc now to about 1.75pc.
However, traders think the Bank of England will cut interest rates just three times over the same period, from 4.75pc now to 4pc.
Elias Haddad, senior markets strategist at Brown Brothers Harriman, said: “Stubbornly high UK services inflation argues for a cautious BOE easing cycle.
“In contrast, political paralysis in France and Germany means the ECB will have to do the heavy lifting to support the euro zone economy.”
The pound was up 0.1pc against the dollar to $1.276.
11:33 AM GMT
Oil slips after China’s imports slump
Oil prices have edged downwards amid concerns that China’s economy is performing worse than feared.
Brent crude, the international benchmark, slipped 0.5pc towards $71 a barrel after imports to the world’s second largest economy unexpectedly fell last month, raising doubts about demand in the world’s second-largest economy.
It had risen 1.4pc on Monday after China’s decision-making Politburo said it would embrace “moderately loose” monetary policy, raising hopes of lower interest rates to help kickstart growth.
11:08 AM GMT
Tesco secures largest market share in seven years
Britain’s largest grocer Tesco achieved its highest market share since December 2017, according to the Kantar figures.
Tesco’s sales rose 5.2pc in the 12 weeks to December to give it a reach of 28.1pc, up from 27.4pc in 2023.
Sainsbury’s share increased by 0.3 percentage points to 15.9pc, and spending through its tills was 4.7pc higher than last year.
Lidl was the fastest growing bricks-and-mortar grocer, with sales up by 6.6pc, while spending at Morrisons rose by 2pc to reach 8.6pc of the market.
Waitrose grew slightly ahead of the market, with spending increasing by 2.6pc to maintain a 4.4pc share, and spending at Aldi grew by 2.1pc to give the discounter 10.3pc of the market.
Although Asda was the only big supermarket to suffer a fall in sales, Co-op also suffered a dip in sales, down 1.1pc to give it a 5.5pc share of the market.
10:55 AM GMT
Asda suffers fresh sales slump as former boss takes control
Asda was the only one of Britain’s largest supermarkets to suffer a drop in sales last month as its former boss returns to turn around the struggling retailer.
Sales shrank by 5.6pc in the three months to December 1, compared to the same period a year earlier, leaving it with a market share of 12.3pc, according to figures from Kantar.
It leaves the company just fractionally ahead of Aldi as the country’s third largest supermarket.
It comes as Asda has sought to recapture its former glory by hiring ex-boss Allan Leighton as its new chairman.
Mr Leighton has been drafted to replace Lord Rose, the former Marks & Spencer chief executive who has been at the helm since 2021.
Lord Rose, 75, was recently tasked with kickstarting Asda’s revival after co-owner Mohsin Issa stepped down from running the business in September.
Mr Leighton, 71, who rejoined last month, spent five years running the retailer between 1996 and 2001, during which he oversaw the company’s sale to Walmart in 1999.
10:30 AM GMT
Public spending on childhood autism and ADHD ‘will trigger widespread council bankruptcies’
Britain faces a looming £8bn black hole in the public finances as spending to support children with autism and ADHD threatens to trigger “widespread bankruptcies” across local councils.
The Institute for Fiscal Studies (IFS) said a “rapid rise” in children being formally assessed as having special educational needs and disabilities (Send) over the past decade meant one in 20 of all school pupils now fell into this category.
Half of all school funding since 2015 has gone towards special educational needs, the think-tank noted, as it warned that “absurd” deficits were mounting despite a £1bn funding increase in the Chancellor’s recent Budget.
Read how it creates a funding dilemma for Rachel Reeves.
10:14 AM GMT
Thames Water boss defends bonuses despite surging pollution and mounting debt pile
Thames Water’s chief executive has defended bosses getting £770,000 in bonuses despite regulators saying it was not justified, as he called for steep hikes to consumer bills to be approved next week.
Chris Weston said: “We need to attract talent to this company... If we don’t offer competitive packages, people will not come and work at Thames.”
“I completely understand that there are customers out there who struggle with their bills,” he added, pointing to bills support offered to about 377,000 customers in the last year.
Heavily indebted Thames Water is England’s biggest water company, with about 16 million customers.
Mr Weston took on the job in January and was awarded a £195,000 bonus for his first three months at the companmy, which is in about £18bn of debt, and is trying to secure another £3bn to keep it running beyond mid-next year.
The demand came as the heavily indebted water company reported a 40pc rise in sewage pollution to 359 incidents in the six months to September.
Mr Weston blamed a particularly wet spring and summer period, and said that problems with Thames Water’s infrastructure were “decades in the making”.
“The infrastructure was designed to operate in the way that it operates.
“It is going to require decades to fix it, to change the way that it operates, and a significant amount of money.”
09:57 AM GMT
Pound rises as eurozone braces for Trump tariffs
The pound rose towards its highest level against the euro in more than two-and-a-half years as investors expect the European Central Bank (ECB) to cut interest rates in the face of looming tariffs from Donald Trump’s administration.
Money markets expect the ECB to reduce its deposit rate by a quarter of a percentage point on Thursday and to deliver more than one percentage points of cuts by July next year.
Analysts expect US tariffs to hurt the eurozone’s economy and the single currency, while elections in Germany and the collapse of the French government have created political turmoil.
However, the impact of tariffs on the UK is expected to be less severe. The Bank of England is expected to keep interest rates on hold at its next meeting later this month.
Sterling rose 0.2pc against the euro, which is worth 82.6p. It hit 82.5p on November 11, its highest level since mid-April 2022.
Jane Foley, senior forex strategist at Rabobank, said: “This raises the question as to whether sterling can achieve pre-Brexit referendum levels versus the euro in the foreseeable future.
“We anticipate that the euro will be under pressure next year, which is likely to allow EUR/GBP to remain on its slow downside trajectory. This suggests that pre-Brexit levels may creep into the sights.”
Sterling was flat against the dollar at $1.275.
09:40 AM GMT
FTSE 100 slumps after £27bn blow
The FTSE 100 slumped after one of its largest companies announced it was switching its main listing from London to New York.
The UK’s blue-chip stock index was down 0.5pc after equipment rental giant Ashtead confirmed the shift, sending its shares down 10pc.
With a value of £27bn, Ashtead’s planned departure marks one of the biggest to hit the Square Mile in the past year, coming days after Just Eat Takeaway said it would drop its secondary London listing.
Stock markets had already been rocked by weaker than expected trade data from China, raising concerns about demand in the world’s second largest economy.
Investors will now shift their focus to US inflation data, due on Wednesday, that may cement bets for another interest rate cut later this month.
Money markets currently see an 85pc chance of a quarter of a percentage point interest rate cut by the Federal Reserve on December 18, with the equivalent of at least another three cuts of the same size expected next year.
The midcap FTSE 250 was down 0.3pc.
09:25 AM GMT
Vauxhall owner announces plans for £3.4bn battery factory
European car giant Stellantis and Chinese manufacturer CATL have announced plans to build a €4.1bn (£3.4bn) factory to make electric car batteries in Spain.
They aim to start production by the end of 2026 at the site in the northern city of Zaragoza.
They said it “could reach up to 50 GWh capacity, subject to the evolution of the electrical market in Europe and continued support from authorities in Spain and the European Union”.
It comes weeks after Vauxhall owner Stellantis announced the closure of its Luton van factory as it struggles with the transition to electric vehicles.
09:01 AM GMT
Turkey pushes up cost of Christmas dinner
The cost of an average Christmas dinner for four is up 6.5pc on last year to £32.57 as the price of turkey and vegetables rise, latest supermarket figures show.
The increase is significantly higher than overall grocery inflation of 2.6pc, which is up again on November’s 2.3%, according to analysts Kantar.
Despite the rising prices, sales across the supermarkets are expected to exceed £13bn over the four weeks of December for the first time ever.
Sales of assorted sweet biscuits and biscuits for cheese both doubled in November compared with the month before, while 8pc of shoppers bought a Christmas pudding.
The proportion of spending on premium own-label products reached 5pc over the latest four weeks, and is expected to climb to almost 7pc in December, Kantar said.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Monday December 23 is likely to be the single busiest day for the supermarkets this year, although there are clear signs that shoppers are already stocking up their cupboards.
“Many of us take the chance to treat ourselves at this time of year and retailers are rolling out seasonal product lines to help us celebrate in style.”
Meanwhile, sales on promotion reached 30pc in November, the highest since Christmas last year and driven by deals accessed through supermarket loyalty cards, as shoppers traded up to festive treats including Champagne, wine and spirits.
08:38 AM GMT
Renewable electricity generation overtakes fossil fuels in ‘historic first’ for Britain
Renewable energy sources will provide Britain with more electricity than fossil fuels for the first full year ever in 2024, new analysis shows.
Wind, solar and hydropower are expected to generate 37pc of the UK’s electricity this year, overtaking fossil fuels for the first time, which produced 35pc, according to think tank Ember.
Just three years ago, fossil fuels generated 46pc of UK electricity, while renewables generated 27pc.
It comes in the same year Britain closed its last coal-fired power station at Ratcliffe-on-Soar in Nottinghamshire in October.
Ember’s senior UK analyst Frankie Mayo said: “The renewables future is here.
“This long-awaited milestone is a testament to how much progress the UK has made.”
The analysis by Ember also found that 2024 will see gas power fall to the lowest level since 1996, with the third-largest annual change in UK gas power in over a decade.
“With the phase-out of coal power completed this year, reducing gas use is the next big opportunity for the country.
“It’s time to seize the moment, to cut reliance on expensive gas with new renewables, storage, and grid upgrades.”
08:23 AM GMT
China suffers sharpest drop in trade in nine months
China’s exports and imports were both weaker than expected last month as Xi Jinping sounded a warning about the impact of a trade war with the US.
Exports grew by 6.7pc in the year to November, down from 12.7pc the previous month and below forecasts of more than 8pc.
Meanwhile, imports fell 3.9pc, reflecting weak demand from industries and consumers, and the sharpest fall in nine months and dashing expectations for a 0.3pc increase.
It comes as Chinese leader Xi said there would be “no winners” in a trade war with the US.
Zichun Huang of Capital Economics said: “We expect exports to accelerate again in the coming months, supported by gains in export competitiveness and exporters front-running tariffs.
“Import volumes declined last month, but they are likely to recover in the short run as accelerated fiscal spending boosts demand for industrial commodities.”
08:09 AM GMT
UK markets fall after Ashtead blow
The FTSE 100 fell at the open after it emerged Ashtead will switch its primary listing from London’s flagship stock market to New York.
The UK’s blue-chip index fell 0.5pc to 8,313.48 while the midcap FTSE 250 fell 0.5pc to 20,948.18.
08:00 AM GMT
Xi warns ‘no winners’ in trade war with US after Trump tariff threats
Xi Jinping has warned that there would be “no winners” in a trade war with the United States after Donald Trump threatened to impose more tariffs on the world’s second largest economy.
The president-elect - who returns to the White House next month - unleashed a gruelling trade war with China during his first term in office, lambasting alleged intellectual property theft and other “unfair” practices.
He has pledged to impose even higher tariffs on China after taking office on January 20, as Beijing is grappling with a shaky post-pandemic economic recovery.
State broadcaster CCTV reported that Xi said: “Tariff wars, trade wars, and technology wars go against historical trends and economic rules, and there will be no winners.
“China is willing to maintain dialogue with the US government, expand cooperation, manage differences and promote the development of China-US relations in a stable, healthy and sustainable direction.”
Beijing is targeting annual growth this year of around five percent, despite sluggish domestic consumption, high unemployment and a prolonged crisis in the vast property sector.
Xi also said during Tuesday’s meeting that China had “full confidence” in achieving its 2024 growth goal, state media reported.
07:47 AM GMT
UK equipment giant to switch main listing to New York in blow to City
One of Britain’s leading blue-chip companies will switch its main listing to New York in one of the biggest blows yet to the London Stock Exchange.
Ashtead, the FTSE 100 plant hire giant, has confirmed it will move its primary listing to the US markets after concluding the move “is in the best interests of the business and its stakeholders”.
Bosses said 98pc of the company’s operating profit comes from North America, which is also “the core growth market for the business”.
The move, which was first reported by the Telegraph, comes as UK corporates with large American operations increasingly look to abandon the City, in the hope that a move to Wall Street will provide a sharp boost in value.
Among those that have either departed entirely, or sought a secondary listing in the US, are betting company Flutter, cement-maker CRH and plumbing business Ferguson.
Ashtead - which rents out heavy machinery and equipment, such as cranes, excavators and scaffolding, to the construction industry - aims to shift its primary listing to the US over the next 12 to 18 months, but keep a UK listing in the international companies segment.
Ashtead said it will discuss the plans with investors in the coming weeks before putting them to its wider shareholder base for approval at a general meeting “in due course”.
Details of the listing plan came as it also warned that annual profits would be lower than expected due to “local commercial construction market dynamics in the US”, which is set to affect rental sales growth.
07:33 AM GMT
Thames Water says funding plan ‘progressing’ after £3bn lifeline
Thames Water said its plan to raise funding was progressing under the next stage of its rescue plan after it secured a £3bn lifeline to help it survive into the new year.
Britain’s biggest water supplier, which has close to £18bn of debt, is fast running out of cash after its current owners refused to stump up new money earlier in the year, putting the Government on standby for nationalisation.
Chief executive Chris Weston said the company was making progress with its turnaround plan as it posted an improvement in profits.
However, its half-year results showed its environmental performance was worse, with a 40pc rise in spills which it blamed record rainfall.
Mr Weston said: “We’ve reached key milestones in establishing a more stable financial platform, agreeing a liquidity extension transaction proposal and progressing our equity raise process.”
While the £3bn pound lifeline offered to Thames by a group of creditors in October will temporarily stabilise its finances, its long-term future depends on it securing new equity and restructuring its debt.
A competitive process is underway aimed at raising the £3.25bn of equity Thames Water needs to fund investments to 2030. British financial investor Covalis Capital and France’s Suez Group are amongst the bidders.
For the six months to the end of September, Thames Water increased underlying earnings by 14pc to £715m, partly as a result of better cost discipline.
07:31 AM GMT
Trump triggers ‘deal mania’ on Wall Street
Donald Trump is behind the surge in major takeover deals across Wall Street as bosses expect a bonfire of red tape in the US, a City tycoon has said.
The president-elect has triggered a surge in “animal spirits” across American markets which has led to a string of major tie-ups in recent weeks, according to Sir Martin Sorrell.
Mr Trump will return to the White House in January after an election campaign where he promised tax cuts, deregulation and tariffs on non-American goods.
On Monday, it emerged that Omnicom and IPG were in talks over a merger that would create the world’s largest advertising agency.
It was also announced that Cadbury-owner Mondelez is exploring an acquisition of Hershey, in a move that would create one of the biggest confectioners in the world.
Sir Martin Sorrell, who is executive chairman of S4 Capital and was founder of advertising group WPP, told BBC Radio 4’s Today programme: “In the second Trump era, what we’re seeing is a huge increase in what I call ‘animal spirits’ in America.
“I’ve never seen it quite so strong on the cusp of the second Trump presidency. The deregulation feeling that Trump is generating means that deals and the North American market are big and strong.”
“The most important thing about Omnicom and IPG is their focus on the North American market which I think is going to be very strong.
07:13 AM GMT
Good morning
Thanks for joining me. Donald Trump is the force behind “deal mania” that is gripping the US after a series of major merger announcements, according to Sir Martin Sorrell.
The S4 Capital boss said the president-elect had triggered “animal spirits” on Wall Street that had led to potential mega mergers between Omnicom and IPG, as well as confectionery giants Mondelez and Hershey.
5 things to start your day
1. Rupert Murdoch loses Succession-style legal battle over family trust | Media mogul fails in bid to hand control of NewsCorp empire to eldest son Lachlan
2. Thousands of jobs in doubt over military helicopter contract | Nearly 3,000 roles at a factory in Somerset may be at risk if ministers do not press ahead with procurement plans
3. Two million young people have self-diagnosed mental health problems | Waiting lists for therapy mean many rely sites like TikTok for medical advice
4. Why struggling China has hit the panic button | Anaemic consumption and a prolonged property crisis are undermining Beijing’s plans
5. HSBC accused of funding deforestation in South America | Bank indirectly fuels cattle farming that destroys Paraguay’s Gran Chaco forest, claims human rights group
What happened overnight
Shares in Asia were mostly higher as Chinese shares were buoyed by an apparent shift in Beijing toward easier credit and other forms of stimulus for the sluggish economy.
Shares in market superstar Nvidia fell 0.6pc in afterhours trading extending a 2.6pc loss after China said it’s investigating the company over suspected violations of Chinese anti-monopoly laws.
The Shanghai Composite index surged 1.6pc to 3,456.12 while Hong Kong’s Hang Seng was up 1pc, at 20,618.18.
At a meeting announced late Monday, Chinese leaders agreed on a “moderately loose” monetary policy for the world’s second-largest economy.
That is the first move in 10 years away from a more cautious, “prudent” stance. A major planning meeting expected Wednesday could also bring more stimulus for the Chinese economy.
Tokyo’s Nikkei 225 gained 0.5pc to 39,335.74 while the Kospi in South Korea jumped 2.3pc, recovering some of its recent losses as the country’s recent political turmoil simmered on.
Overnight, South Korean prosecutors were seeking to formally arrest the former defence minister alleged to have colluded with President Yoon Suk Yeol in imposing martial law last week, as both men are being investigated on rebellion and other charges.
Taiwan’s Taiex shed 0.8pc as the government said China’s military appeared to be preparing for widely anticipated drills in response to a recent visit by its president, Lai Ching-te’s visits to Hawaii and Guam. Taiwan’s defense ministry said Monday that it has detected Chinese naval and coast guard ships entering the Taiwan Strait and the western Pacific and that China had restricted airspace along its southeast coast through Wednesday.
The moves ratchet up tensions after US president-elect Donald Trump said he would not commit to defending Taiwan if China were to invade during his presidency.
Elsewhere in the region, Australia’s S&P/ASX 200 slipped 0.4pc to 8,389.30. Markets in Thailand were closed for a holiday.
US shares fell as traders wait on key inflation data that will play an important role in the Federal Reserve’s next decision on whether to lower interest rates.
The S&P 500 fell by 0.4pc, retreating from all-time highs, while the Dow Jones Industrial Average dropped by 0.3pc. The Nasdaq 100 lost 0.7pc.
Oil prices rose after China signalled it would take bolder steps to stimulate its economy in 2025, with the price of Brent crude climbing from $71.22 per barrel to $71.92.