Netflix has added another 5m subscribers as viewers continued to flock to the streaming giant for hits such as Emily in Paris.

The US tech company saw its subscriber base grow to almost 283m in the third quarter as it shrugged off the impact of last year’s Hollywood actors’ and writers’ strikes.

Revenues were up 15pc to $9.8bn, while profits rose to $2.4bn as the company continues to benefit from its crackdown on password sharing.

In a letter to shareholders, Netflix said it was focused on profitability as it ramps up its advertising offering.

It said: “We have much more work to do improving our offering for advertisers, which will be a priority over the next few years.”

The latest figures were more muted than the surge in profits posted in the second quarter, when Netflix cashed in on new releases including Baby Reindeer and the latest series of Bridgerton.

But the company still pulled in viewers for new releases such as Emily in Paris and The Perfect Couple.

Netflix said it expected revenue growth of 15pc in the final three months of the year, boosted by releases such as the second series of Squid Game, while it expects revenues to rise to as much as $44bn next year thanks to a combination of subscriber growth and price increases.

Read the latest updates below.

09:35 PM BST

Join us in the morning for the latest markets news

Thanks for joining us this evening for the Netflix results.

Chris Price will be back in the morning to cover the opening of London’s markets. Do join us then.

09:13 PM BST

Dow Jones closes higher

The Dow Jones Industrial Average closed higher this evening, its fourth record close in the last five days of trading.

It came as stronger-than-expected monthly retail sales indicated a robust US consumer and chip stocks were buoyed by an upbeat forecast by TSMC.

The other main Wall Street benchmarks, the S&P 500 and the Nasdaq Composite, finished largely unchanged.

The Dow Jones Industrial Average rose 0.4, to close at 43,241.71.

Josh Jamner, investment strategy analyst at ClearBridge Investments, said investors have been revising economic and earnings growth expectations as robust data eased worries about a recession. He said:

09:06 PM BST

Netflix predicts 15pc growth next quarter

Netflix has told investors that it will deliver 14.7pc revenue growth in the final quarter of 2024, up from a growth rate of 12.5pc for the same period last year.

The streaming business said:

Netflix shares are currently up 1.6pc in after-hours trading.

09:03 PM BST

Netflix beat predictions by adding more than 5m subscribers

Netflix results have just been issued and the streaming giant has revealed that it added more than 5m customers in the past quarter.

That beats analyst estimates of 4.5m.

Revenues surged 15pc to $9.8bn.

Shares are fluctuating in after-hours trading.

09:00 PM BST

Netflix stock ‘very expensive’, says analyst

Netflix stock has risen 93.5pc over the past year, so some analysts are wondering if it is overprice.

Matthew Maley, chief market strategist at Miller Tabak + Co, told Bloomberg:

08:45 PM BST

Netflix shares drop ahead of quarterly results

Netflix shares are down 1.8pc today, ahead of its quarterly results out after 9pm tonight.

The streaming giant likely added 4m subscribers in the July-September period, according to analysts’ estimates compiled by LSEG.

But some investors are worried about the pace of growth at Netflix as gains from a password-sharing crackdown ease.

06:28 PM BST

Signing off...

Thanks for joining us today. We will be back with the Netflix financial results after 9pm and again tomorrow morning.

In the meantime, you can follow all the latest business news and comment here.

05:47 PM BST

Wall Street touches record highs

Wall Street rose this afternoon, with the S&P 500 and the Dow briefly reaching record highs, as chip stocks surged and figures for retail sales were stronger than expected.

Taiwan Semiconductor Manufacturing Company soared 12.2pc during trading, while AI-trade favourite and TSMC customer Nvidia gained 3pc, touching a record high.

The optimism spread to other chip stocks, sending the broader Philadelphia Semiconductor index 2.4pc higher.

Bret Kenwell, eToro US investment analyst, said:

The S&P 500 is currently up 0.5pc, the Dow up 0.4pc and the tech-heavy Nasdaq up 0.6pc.

05:22 PM BST

Reeves’ budget could be inflationary, say economists

Rachel Reeves’ budget could push up inflation, leading economists have said.

Robert Wood and Elliott Jordan-Doak, at Pantheon Macroeconomics, told clients:

However, they concluded that bond markets “will be unruffled” by the Budget. They wrote:

05:10 PM BST

FTSE’s ‘missing link’ is better profits, says Coutts

British stocks are need to deliver better earnings in order to fuel faster stock market growth, a leading private bank has said.

Lilian Chovin, head of asset allocation at Coutts, said:

It came as the FTSE 100 closed at near a five-month high, as pest control group Rentokil announced an overhaul of its struggling North America business, while investors continued to bet on further rate cuts by the Bank of England (BoE).

The blue-chip index rose 0.7pc to close at its strongest level since late May, while the domestically focused FTSE 250 index climbed 0.6pc to close at a more than two-week high.

04:58 PM BST

Quarter of city bus services ‘at risk’ from Reeves’s Budget cuts

One in four bus services in towns and cities face closure if specialist funding is withdrawn in Rachel Reeves’s Budget as feared.

The Bus Service Improvement Plan (BSIP), introduced in 2022, is understood to be in the Chancellor’s sights as she seeks savings to fill a claimed £22bn “black hole” in public finances.

Launched under Boris Johnson’s “bus back better” plan to encourage people back onto public transport after Covid, the BSIP has become integral to the survival of many services, according to the Urban Transport Group, which campaigns on behalf of transport authorities in England.

Steve Warrener, the chairman, urged Ms Reeves to extend the BSIP, which is scheduled to expire in April, until a long-term plan to safeguard services can be developed as part of the Government’s spending review.

BSIP will provide £1.08bn of funding by the time it expires and the money is particularly vital in supporting early morning and late night services, which play a crucial role in helping city dwellers get to work but wouldn’t otherwise be viable without support.

Sunday buses would also face cutbacks, while almost two thirds of “socially necessary” routes that are fully funded by local authorities through BSIP grants could also cease, Urban Transport warned. These are routes that would not be commercially viable without support.

Read the full story...

04:53 PM BST

FTSE closes up

The FTSE 100 closed up this afternoon by 0.7pc.

The top riser was Rentokil Initial, up 8.8pc, followed by aerospace manufacturer Melrose Industries, up 4pc.

At the other end of the index, cardboard giant Mondi fell 7.5pc, followed by United Utilities, down 1.9pc.

Meanwhile, the mid-cap FTSE 250 rose 0.6pc.

The top riser was Hochschild Mining, up 9.4pc, followed by Burberry, up 5pc.

The biggest faller was Tate & Lyle, down 3.6pc, followed by recruiter Hays, down 3.5pc.

04:45 PM BST

Buy-now, pay-later (BNPL) brought under FCA regulation

Millions of buy-now, pay-later (BNPL) shoppers will receive enhanced protections as Labour launches a long-delayed crackdown on the alternative to credit cards.

The lenders, whose products typically split purchases into three or more chunks, will be required to carry out strict affordability checks on consumers and will come under the supervision of the Financial Conduct Authority.

Companies such as Sweden’s Klarna and the UK’s Zilch already conduct credit checks on consumers, although they do so voluntarily as they are not currently mandatory.

Lenders will also have to ensure shoppers get clear information about their borrowing and upfront information about any late fees or other hidden costs. Shoppers will also get greater protections for returning faulty or damaged items they buy.

The BNPL industry has boomed in popularity as consumers choose to split their purchases, rather than relying on more traditional credit cards. BNPL companies argue their products are often interest free, saving consumers money.

The government has launched a six-week consultation on its proposals, with plans to bring in a new law early next year that will be in force from 2026.

Proposals to regulate the BNPL sector have been repeatedly delayed, despite its rapid growth and concerns consumers could find themselves in mounting debt.

Tulip Siddiq, Economic Secretary to the Treasury, said:

04:27 PM BST

ECB might ‘get on with’ half point rate cuts

European rate-setters could supersize their rate cuts and deliver a half a percentage point cut in future, a euro zone economist has said.

Jack Allen-Reynolds, deputy chief euro zone economist at Capital Economics, said:

04:22 PM BST

Wall Street shows ‘schizophrenic behaviour’ towards chip stocks

Wall Street remains positive this afternoon, with the S&P 500 up 0.1pc, while the tech-heavy Nasdaq is up 0.3pc.

Technology shares, particularly chips, are providing much of the upside muscle today after Taiwan Semiconductor Manufacturing Company (TSMC) beat earnings estimates and forecast a jump in fourth-quarter revenue, helping to ease fears of softening demand in the sector.

Chuck Carlson, chief executive at Horizon Investment Services in Indiana, said:

04:15 PM BST

Denmark cuts interest rates

Denmark has cut interest rates by a quarter point as it mirrors the European Central Bank.

The Danish central bank has cut its interest rate to 2.85pc from 3.1pc in a widely anticipated move.

It said:

04:06 PM BST

Euro falls against the pound and dollar

The euro has fallen against the pound and the dollar as the European Central Bank cut interest rates.

Axel Rudolph, senior technical analyst at online trading platform IG, said:

04:02 PM BST

European stocks show ‘cautious optimism’ after rate cut

European stocks have risen 0.9pc today, but most of the rise took place before today’s European Central Bank interest rate announcement.

Sam North, market analyst at investment platform eToro, said:

03:49 PM BST

Euro zone yields mixed after ECB decision

Euro zone government bond yields are mixed this afternoon after the European Central Bank delivered a widely expected quarter of a percentage point rate cut, with investors betting on the slight chance of a half point cut in December.

The ECB reduced interest rates for the third time this year, pointing out that inflation in the euro zone is now increasingly under control and the economic outlook has worsened.

Germany’s 10-year bond yield, the benchmark for the euro zone bloc, rose to 2.224pc from 2.188pc last night.

Holger Schmieding, chief economist at merchant bank Berenberg, said:

03:44 PM BST

Wall Street pushed upwards by tech stocks and strong retail sales

Wall Street rose  this afternoon, with the S&P 500 up 0.3pc. The Dow Jones Industrial Average of 30 leading American businesses rose by a similar amount and the tech-heavy Nasdaq gained 0.4pc.

The rise has been driven by an upbeat forecast by Taiwan Semiconductor Manufacturing Company (TSMC) and a bigger-than-expected rise in monthly retail sales indicating that US consumers are still upbeat.

Profit at TSMC, the world’s largest contract chipmaker, beat market estimates and the company forecast a jump in fourth-quarter revenue, driven by demand for artificial intelligence chips.

The chipmaker’s US-listed shares soared 10pc, while AI-trade favourite Nvidia gained 2.6pc.

The optimism spread to other chip stocks, with Broadcom adding 3.5pc and Intel gaining 0.8pc.

Meanwhile, US retail sales increased 0.4pc in September, slightly than expected, supporting the view that the economy maintained a strong pace of growth in the third quarter.

03:39 PM BST

Lagarde says ECB is ‘breaking the neck’ of inflation

The European Central Bank is in the process of “breaking the neck” of inflation, its president Christine Lagarde said this afternoon.

Ms Lagarde told a press conference that the ECB had not achieved “complete victory” over inflation but declining price pressures were a positive sign.

“Have we broken the neck of inflation? Not yet. Are we in the process of breaking that neck? Yes,” she said.

According to Ms Lagarde, the information received by ECB rate-setters since their previous meeting was “all heading in the same direction: downwards”.

The comments came after the ECB cut interest rates, upping the tempo at which it is lowering borrowing costs as inflation in the eurozone cools faster than expected and the economy loses steam.

The Frankfurt-based institution reduced rates by a quarter point, following a cut of the same size at its last meeting in September.

03:33 PM BST

Gold hits fresh record amid falling inflation

Gold prices have hit record highs as central banks race to cut interest rates amid falling inflation.

Bullion climbed as much as 0.7pc to hit $2,691.79 an ounce, overtaking its last peak reached last month.

The precious metal is up 1.1pc this week as investors turn to the safe haven asset ahead of the US election.

Its price is also surging higher in euros after the European Central Bank said the “disinflationary process is well on track” as it cut interest rates for the third time this year.

Thanks for following the live updates so far today. I’ll hand you over now to Alex Singleton, who is poised to deliver an avalanche of fresh news.

03:19 PM BST

ECB will make ‘faster’ interest rate cuts, say economists

The European Central Bank is poised to accelerate the pace of interest rate cuts as it faces weakening growth, economists have suggested.

Deutsche Bank’s chief European economist Mark Wall said: “today’s decision represents a pivot point into a faster normalisation of monetary policy”.

Capital Economics said policymakers might opt to cut rates by a half a percentage point as they continue to reduce borrowing costs over the “next few meetings”.

Deputy chief eurozone economist Jack Allen-Reynolds said: “All told, we wouldn’t be surprised if the ECB accelerated its rate cutting cycle at some point, and if the deposit rate ends up lower than 2.5pc.”

The ECB has been cutting interest rates since June, down from a record high of 4pc to 3.25pc today, including reductions at back-to-back meetings.

GianLuigi Mandruzzato, senior economist at EFG Asset Management, added: “The weak growth outlook for the euroarea economy is likely the main factor behind the acceleration in the pace of rate cuts compared to the soft guidance President Lagarde gave after the September meeting.

“Although the ECB did not pre-commit to any specific rate path, we believe that downside risks to growth in a context of easing inflationary pressure will lead to more rate cuts starting in December and continuing in 2025 until interest rates are back around a neutral level, that the ECB itself estimates around 2pc.”

03:00 PM BST

Families will feel poorer from now on, says IMF boss

Families will feel poorer from now on despite the impending end of the inflation crisis which sent prices surging around the world, the head of the International Monetary Fund has warned.

Kristalina Georgieva, managing director of the IMF, said the “global inflation wave is in retreat” after central banks raised interest rates to combat surging prices.

Inflation in Britain peaked at 11.1pc in October 2022 as prices across the globe were pushed higher following Vladimir Putin’s invasion of Ukraine, which raised energy costs and disrupted supply chains already in turmoil after the pandemic.

In her speech opening the IMF and World Bank’s annual meeting in Washington DC, Ms Georgieva said there would not “be any victory parties” over declining inflation, which fell to 1.7pc in both the UK and the eurozone in September.

She said: “For one thing, inflation rates may be falling, but the higher price level that we feel in our wallets is here to stay.

“Families are hurting, people are angry. Advanced economies saw inflation rates at once-in-a generation highs. So too did many emerging market economies.

“But look how bad the situation was for the low income countries.

“At the country level and at the level of individuals, inflation always hits the poor the hardest.”

02:39 PM BST

S&P 500 hits record high amid retail sales boost

The S&P 500 surged to a fresh record high as trading began on Wall Street after as an upbeat forecast from chip maker TSMC boosted semiconductor stocks.

The S&P 500 rose 33.1 points, or 0.6pc, at the open to 5,875.62 as it was also boosted by a bigger-than-expected rise in September retail sales, which indicated the US consumer remains strong.

The Dow Jones Industrial Average rose 165.37 points, or 0.4pc, to 43,243.07​, while the Nasdaq Composite rose 170.1 points, or 0.9pc, to 18,537.21.

02:24 PM BST

Middle East conflict a ‘big concern’, says Lagarde

European Central Bank chief Christine Lagarde told reporters in Ljubljana that she is concerned about the economic consequences of the “horrifying” major conflict in the Middle East.

Ms Lagarde said: “We are looking at the economic consequences, and we are looking in particular at the impact that this conflict could have on trade.

“That part of the world is very much open to trade and the passing of ships of all sorts. We are also very attentive to the price of oil that can be impacted.”

02:15 PM BST

Trump would risk eurozone economy, warns Lagarde

Christine Largarde has warned that a second Donald Trump’s presidency would be a risk to the eurozone economy as the ECB cut interest rates for the third time this year.

The President of the European Central Bank was asked how she thought a return of Donald Trump to the White House and his plan to impose tariffs would alter the outlook for growth and inflation in the euro area.

She said: “Trade is obviously an important element and as part of the drivers of activity going forward we obviously have consumption and investment but we also have trade.

“Any restriction, any uncertainty, any obstacles to trade matters for an economy like the European economy, which is very open.

“Trade trades within itself, of course, but also trades with the rest of the world.

“Any hardening of the barriers, the tariffs, the additional obstacles on that possibility to trade with the rest of the world is obviously a downside.”

01:58 PM BST

Lagarde says there are ‘downside’ risks to eurozone economy

Christine Lagarde said that inflation is expected to rise in the coming months but would then decline to the 2pc target “in the course of next year”.

However, she said the “risks to economic growth remain tilted to the downside”.

“This could be amplified by geopolitical risks”, she said, pointing to Russia’s “unjustified” war in Ukraine and the conflict in the Middle East.

Growth could also be lower if the impact of record high interest rates used to combat inflation turns out to be stronger than expected.

01:54 PM BST

Lagarde: Eurozone economy ‘weaker than expected’

Christine Lagarde has begun her press conference in Ljubljana, Slovenia, by saying that the eurozone economy “has been somewhat weaker than expected”.

She said the ECB had cut interest rates as manufacturing “has continued to contract”.

Services show uptick in August by the latest data “point to more sluggish growth”.

Housing investment “continues to fall”, she added.

01:43 PM BST

US retail sales rise more than expected

Meanwhile, across the Pond, US stock indexes have extended gains in premarket trading after a larger-than-expected rise in monthly retail sales pointed to a healthy US consumer.

Retail sales rose 0.4pc in September on a monthly basis, compared with an estimate of 0.3pc, according to economists. Retail sales excluding automobiles rose 0.5pc, versus the 0.1pc forecast.

Separately, data showed the number of Americans filing new applications for unemployment benefits was 241,000 for the week ended October 12, compared with an estimate of 260,000.

In premarket trading, the Dow Jones Industrial Average was up 70 points, or 0.2pc, the S&P 500 was up 27.25 points, or 0.5pc and the Nasdaq 100 had risen 170 points, or 0.8pc.

01:39 PM BST

Low eurozone growth emerging as bigger worry than inflation, signals ECB

The European Central Bank has signalled that sluggish growth is becoming a greater concern after inflation fell to 1.7pc last month.

The central bank opted for a small 0.25 percentage cut to 3.25pc but said in a statement: “The incoming information on inflation shows that the disinflationary process is well on track.

“The inflation outlook is also affected by recent downside surprises in indicators of economic activity. Meanwhile, financing conditions remain restrictive.”

01:38 PM BST

ECB ‘much more concerned’ about weakening growth, say economists

The decision to make successive interest rate cuts shows the ECB has become concerned about a lack of growth in the eurozone economy.

Carsten Brzeski, global head of macro at ING, said:

He added: “The fact is that the ECB looks much more concerned about (the lack of) growth and inflation undershooting than five weeks ago and it’s hard to see how today’s rate cut cannot be seen as a signal that the ECB is now in a hurry to bring interest rates down to a more neutral level.”

01:31 PM BST

ECB to keep cutting interest rates amid economic downturn, say economists

Economic shocks and declining inflation mean the European Central Bank (ECB) will keep cutting interest rate for “the next few meetings”, according to economists.

The eurozone has been hit by some “recent downside surprises” in economic activity, the ECB admitted, as it cut interest rates from 3.5pc to 3.25pc.

Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics, said this indicated that it will make quarter of a percentage point interest rate cuts “at each of the next few meetings, at the very least”.

01:24 PM BST

ECB warns inflation ‘is expected to rise in the coming months’

The Governing Council of the European Central Bank said it aims to bring inflation back to its 2pc target “in a timely manner” and will keep interest rates “sufficiently restrictive for as long as necessary”.

It reiterated its “data-dependent and meeting-by-meeting approach” to whether to keep cutting borrowing costs.

It said the “disinflationary process is well on track” but warned that inflation “is expected to rise in the coming months, before declining to target in the course of next year”.

It said: “In particular, its interest rate decisions will be based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation and the strength of monetary policy transmission.

“The Governing Council is not pre-committing to a particular rate path.”

01:15 PM BST

European Central Bank cuts interest rates

The European Central Bank (ECB) has cut interest rates for the third time this year as it tries to revive growth on the Continent.

Policymakers reduced the deposit rate from 3.5pc to 3.25pc amid predictions that its largest economy, Germany, faces its first two-year recession in two decades.

It comes as official data showed that eurozone inflation fell more than initially estimated to 1.7pc in September.

The ECB began cutting rates from the record high of 4pc in June and has now reduced borrowing costs in back-to-back meetings.

12:57 PM BST

Turkey holds interest rates at 50pc

Turkey’s central bank has announced it will hold interest rates steady at 50pc despite inflation falling below the policy rate for the first time in three years.

Inflation dipped to 49.4pc in September, although this was still stronger than expected.

Nicholas Farr, emerging Europe economist at Capital Economics, said the consultancy thinks interest rate cuts won’t begin until 2025.

He said: “Overall, it seems clear that the CBRT – like us – doesn’t think the conditions are in place for a monetary easing cycle to start very soon.

“While headline inflation should continue to fall this year as unfavourable base effects continue to unwind, we think the process will be slow and bumpy.”

12:41 PM BST

Wall Street poised to open higher amid AI boost

US stock indexes were higher in premarket trading after an upbeat forecast from Taiwanese chipmaker TSMC boosted semiconductor stocks.

Profit at Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker, beat market estimates and the company forecast a jump in fourth-quarter revenue, driven by demand for artificial intelligence chips.

The chipmaker’s US-listed shares soared 8pc in premarket trading, while AI-trade favourite Nvidia gained 2.6pc.

Other chip stocks such as Broadcom rose 2.7pc, Intel gained 1.3pc and Arm Holdings was 3.6pc higher.

Stocks had advanced on Wednesday, with the Dow Jones Industrial Average notching up its third record close in four sessions, as declines in megacap tech stocks were offset by a rally in small-cap and financial shares.

Wall Street is now waiting to see the data on September retail sales and industrial production, as well as weekly jobless claims data before the opening bell.

In premarket trading, the Dow Jones Industrial Average rose 0.2pc, the S&P 500 gained 0.4pc and the Nasdaq 100 was up 0.8pc.

12:30 PM BST

Elon Musk is a ‘promoter of evil’, says EU official

One of the EU’s most senior politicians has branded Elon Musk a “promoter of evil” in a major escalation of the war of words between Brussels and the outspoken tech billionaire.

Věra Jourová, a Czech politician who is in charge of the commission’s work on online misinformation and hate speech, said Mr Musk is “not able to recognise good and evil” and called X – formerly known as Twitter – “the main hub for spreading antisemitism”.

Ms Jourová is leaving Brussels after a five-year stint as the EU’s vice president for values and transparency. She was EU commissioner for justice from 2014 to 2019.

Read why she said the social media site X is a “hub for spreading antisemitism”.

11:58 AM BST

Oil muted despite China stimulus efforts

Oil prices were little changed after another China economic briefing left investors underwhelmed.

Brent crude, the international benchmark, edged slightly down but remained above $74 a barrel after losing almost 7pc over the previous four trading days.

US-produced West Texas Intermediate was hovering above $70 despite China saying today it would boost credit available for unfinished housing projects to more than $500bn in an effort to kick start the world’s second largest economy.

Oil has fallen after it was reported that Israel would not strike Iranian crude or nuclear facilities.

Meanwhile, China’s efforts to stimulate demand in its economy have largely failed so far, with the IEA predicting the world faces a “sizeable surplus” in supplies in the early part of next year.

However, UBS strategist Giovanni Staunovo geopolitical risks “are unlikely to fade in the near term and will likely result in ongoing high volatility” in prices.

11:39 AM BST

Russian oil and gas ‘shadow fleet’ hit with sanctions

The Government has imposed sanctions on 18 Russian oil tankers and four liquefied natural gas vessels as part of its crackdown on Vladimir Putin’s “shadow fleet” of vessels.

The ships will be banned from UK ports and unable to access British maritime services, bringing the total number of oil tankers sanctioned to 43.

It comes as the US and Canada today joined 44 European countries plus the EU in joint efforts to tackle the shadow fleet.

Foreign Secretary David Lammy said:

11:14 AM BST

IFS director to step down after 14 years

The head of the Institute for Fiscal Studies (IFS) will step down next summer to take charge of Queen’s College at the University of Oxford, the influential think tank has announced.

Paul Johnson, a prominent figure for his commentary in the media on the UK economy, has been director of the organisation since January 2021.

He described his decision to step down as a “bittersweet moment”, having joined the think tank as a graduate in 1988, before leaving in 1998 and returning as boss 13 years later.

He said: “The IFS has been an incredibly important part of my life. I love it, what it does and what stands for, and all my amazing colleagues.

“But after 14 years at the helm, it feels like the right time to move on and start a new chapter in my life. I am incredibly excited to be moving to The Queen’s College, a wonderful institution in one of the world’s very best universities, and look forward to working with a new set of colleagues and brilliant young people.”

Paul follows in the footsteps of his two immediate predecessors as IFS director, Sir Andrew Dilnot and Sir Robert Chote, to run an Oxford college.

The IFS said it has begun the process of hiring a new director.

IFS research director Imran Rasul said Mr Johnson has been a “truly outstanding director of the IFS”, adding: “He is not only a skilled communicator but an excellent economist.”

11:02 AM BST

Eurozone inflation falls to 1.7pc ahead of interest rate decision

European Central Bank policymakers meet today to decide whether to cut interest rates after official figures showed inflation fell further than first thought in September.

A late downwards revision to last month’s inflation data may have made the decision even easier for the members of the ECB’s rate-setting governing council.

Consumer prices in the eurozone rose by 1.7pc, according to Eurostat, which was 0.1 percentage points less than the initial estimate.

Before the change, September’s reading already was the first time in three years that inflation in the eurozone had dipped below the ECB’s 2pc target.

The lower-than-expected figure has added to the sense among policymakers that consumer prices are back under control after they soared in the wake of the coronavirus pandemic and the Russian invasion of Ukraine.

“Victory against inflation is in sight,” French central bank governor and ECB rate-setter Francois Villeroy de Galhau said last week.

Money markets indicate there is a 97pc chance that policymakers will announce a third reduction in borrowing costs since the summer, which would reduce the deposit rate from 3.5pc to 3.25pc.

10:54 AM BST

Trump will fuel inflation and harm businesses, says Janet Yellen

Donald Trump’s plans for the US economy will fuel inflation and harm businesses, the US Treasury Secretary Janet Yellen is expected to warn in a speech.

The most senior financial figure in the federal government is poised to take aim at the former president’s plans to impose tariffs on non-American goods, according to the New York Times.

Although former Federal Reserve chair Ms Yellen is not expected to mention Mr Trump by name, she will argue that the broad tariffs would damage the US economy, it was reported.

“Calls for walling America off with high tariffs on friends and competitors alike or by treating even our closest allies as transactional partners are deeply misguided,” Ms Yellen plans to say in her speech, which was obtained by The New York Times.

“Sweeping, untargeted tariffs would raise prices for American families and make our businesses less competitive.”

10:28 AM BST

Pound edges down amid lower inflation

The value of the pound has continued to fall after lower than expected inflation increased bets that the Bank of England will cut interest rates next month.

Sterling dropped by 0.1pc against the dollar to $1.298 after inflation dropped to 1.7pc in September, a sharp fall from 2.2pc over the previous two months.

The pound was flat against the euro, which is worth 83.6p, ahead of the European Central Bank’s next interest rate decision, which will be announced this afternoon.

10:12 AM BST

Meta staff sacked for using $25 meal vouchers to buy wine glasses

Mark Zuckerberg’s Meta has sacked a number of staff after they abused the company’s $25 (£19) meal scheme to order household goods such as toothpaste and washing powder.

Almost 30 staff in the company’s Los Angeles office were dismissed after they were found to be routinely using takeaway credits to order groceries and cosmetics, employees said.

The sackings included high-paid engineers earning six-figure salaries, according to posts on the anonymous chat app Blind.

Read about the perks Meta, which is currently worth $1.5 trillion, provides staff.

09:52 AM BST

Customers taking pension lump sum surges 32pc in a month

AJ Bell said the number of customers accessing their tax-free cash in September was 32pc higher than the average for the past year.

Meanwhile, customer contributions to its pensions were up 59pc in September compared to the same month last year, as savers prepare for the tax-raising Budget.

AJ Bell chief executive Michael Summersgill said:

09:27 AM BST

Nestle expects weaker profits despite efforts to limit price rises

KitKat maker Nestle has cut its sales outlook once again despite efforts to slow price rises to help woo back cost-conscious consumers.

The Swiss group, which makes a raft of well-known household brands also including Nescafe coffee and Cheerios, reported a weaker-than-expected 2pc rise in underlying sales for the nine months of 2024 so far.

It said it now expects underlying sales to rise by around 2pc over the full year, below previous guidance for at least 3pc growth.

The consumer goods giant had already trimmed its sales outlook in July, down from its previous estimate of around 4pc.

The sales woes come despite Nestle slowing price rises amid signs that high prices in recent years have sent consumers looking for cheaper non-branded alternatives.

New chief executive Laurent Freixe said: “Consumer demand has weakened in recent months, and we expect the demand environment to remain soft.”

The group also trimmed its profitability forecast for underlying trading operating profit margin to around 17pc in 2024, against previous guidance for a slight improvement on last year’s 17.3pc.

Nestle is still increasing prices, but by a slower pace of 1.6pc on average globally, down from 2pc in the first half, following “unprecedented increases in the prior two years” as it grappled with soaring inflation.

09:07 AM BST

UK shares flat ahead of interest rate decision

Stock markets in London were little changed despite a slew of company results as traders wait to see the outcome of the European Central Bank’s (ECB’s) interest rate meeting.

The FTSE 100 and FTSE 250 were both little changed as traders wait to see if the ECB cuts borrowing costs as expected.

It would be the third interest rate cut since the summer and would take its deposit rate to 3.25pc.

Meanwhile, both UK stock indexes were held back by a number of companies trading without entitlement to the latest dividend payout.

Smiths Group was down 2.1pc, Persimmon fell 2.3pc and Howden Joinery dropped 1.5pc as they traded “ex-dividend”.

Mondi lost 7.3pc to fall to the bottom of the FTSE 100 after the packaging company reported a lower core profit compared with the previous three-month period.

Entain rose as much as 4.1pc after the gambling group raised its 2024 net gaming revenue outlook.

Rentokil Initial jumped 8pc to led the FTSE 100 after the pest control company gave its latest trading update.

08:42 AM BST

Deliveroo orders rise faster than Just Eat

Deliveroo shares gained after it increased orders at a faster pace than rival Just Eat.

The food deliverer’s shares gained 4.6pc after it said orders in the UK and Ireland were up 2pc in the third quarter compared to last year.

By contrast, Just Eat said orders in the two countries fell 1pc over the same period. Its shares dropped a further 1.7pc.

Its gross transaction value was up 6pc overall and up 7pc in the UK and Ireland.

Deliveroo chief executive Will Shu said: “UKI growth remains healthy, with improving order trends and overall we are pleased with the underlying growth in international, driven by the UAE and Italy.

“There are many exciting opportunities ahead for the on-demand delivery industry.”

08:22 AM BST

iPhone chipmaker TSMC reveals surging profits amid AI demand

Taiwanese chip giant TSMC has announced a bigger-than-expected increase in profits for the third quarter as the excitement around AI showed no signs of abating.

The company raised its growth forecasts for the year as a result of “extremely robust” demand for AI technology.

Taiwan Semiconductor Manufacturing Company controls more than half the world’s output of chips used in everything from Apple’s iPhones to Nvidia’s cutting-edge artificial intelligence hardware.

Tech stocks took a hit this week as Dutch powerhouse ASML, which supplies chip-making machines to the semiconductor industry, unveiled a cut to its 2025 guidance and a disappointing slump in sales bookings.

Fuelling the falls were reports that US President Joe Biden’s administration was considering a cap on exports of advanced AI chips to some countries.

TSMC - which is listed in Taipei and New York - said net profit in the three months to September hit NT$325.3bn (£7.8bn), up 54.2pc from the same period last year.

TSMC chairman CC Wei said: “Our business in the third quarter was supported by strong smartphone and AI-related demand for our industry-leading three nanometre and five nanometre technologies,”told an analyst briefing.

“Moving into fourth quarter, we expect our business to continue to be supported by strong demand for our leading-edge process technologies.”

08:04 AM BST

UK markets edge up ahead of ECB rate decision

The FTSE 100 inched higher ahead of an expected interest rate cut by the European Central Bank later today.

The UK’s blue-chip stock index was fractionally higher at 8,331.36 after trading began, while the midcap FTSE 250 rose 0.1pc to 20,994.55.

08:00 AM BST

Tax petrol cars more to boost EVs, says Resolution Foundation

Ministers should consider raising taxes on petrol and diesel cars to reduce the “premium” associated with electric vehicle (EV) purchases, an economic think tank said.

A report by the Resolution Foundation recommended that this action is taken if “concerns” persist over the number of EVs being bought.

The research also called for the Government to scrap “arbitrary” EV tax breaks, as the schemes’ “unfairness” means they generally favour drivers on higher incomes.

Benefit-in-kind incentives are limited to people whose employers provide company cars - which are often those earning larger wages - while salary sacrifice is pegged to an employee’s tax rate, meaning higher earners receive a bigger incentive.

The report said: “The withdrawal of these tax incentives should be pre-announced, which would bring forward demand for EVs as motorists look to take advantage of them before they expire.

“If, though, sales concerns persist, then ministers should look to increase taxes on new non-electric cars to reduce the premium associated with purchasing a new EV, rather than subsidise EVs any more.”

07:49 AM BST

Entain boosts profit outlook amid online gaming growth

Betting giant Entain has improved its guidance after stronger-than-expected trading in the latest quarter.

The Ladbrokes and Coral owner said it was boosted by a recovery in its UK and Ireland business, which returned to year-on-year growth “sooner than expected”.

Entain told shareholders it now has “increased confidence” for the rest of 2024 and now expects mid single-digit growth in its online net gaming revenues for the year.

It also said underlying profits, known as ebitda, is set to be towards the “top end” of its £1.04bn to £1.09bn guidance.

Gavin Isaacs, chief executive of Entain, said: “My first few weeks as chief executive of Entain have reaffirmed my view that this is a very good business operating in a highly attractive global industry.

“Entain has great brands, an enviably diverse global portfolio and is bursting with talent, ambition and opportunities.

“Entain is already on a path of strategic and operational improvement, with the strong Q3 performance demonstrating the progress achieved so far.

“We are at the beginning of the journey and I’m looking forward to accelerating our progress, leading the business in our next growth chapter and capturing the many exciting opportunities ahead.”

07:39 AM BST

Simply Be owner agrees £191m takeover

Simply Be and JD Williams fashion retailer N Brown has agreed a £191m takeover by shareholder and director Joshua Alliance, who has been backed by retail tycoon Mike Ashley.

Mr Alliance will pay 40p in cash for each share of N Brown for the stock not already owned by himself and his family.

Mr Alliance, who is a non-executive director of N Brown, already owns 6.6pc of N Brown while the others member of the Alliance family - including former executive chairman Lord David Alliance, who built N Brown up since the 1960s - own a controlling 53.4pc stake.

Mike Ashley’s Frasers Group, which owns 20.3pc of N Brown, has said it will vote in favour of the deal, N Brown said.

Mr Alliance said: “My family have been supporters of N Brown for over half a century, providing capital and having been involved in the strategic leadership of the business. I am delighted to continue that history.

“This transaction will support N Brown in accelerating its long-term growth potential and provide, where needed, access to additional capital, expertise and resource to accelerate the longer-term potential of the business.

“In the business’s current cycle of evolution, we will be able to achieve this growth potential more successfully away from the public markets.”

07:35 AM BST

AJ Bell assets under management surges to record £86.5bn

Investment platform AJ Bell boosted its assets under management to record levels as more customers sought to protect their money.

The London-listed stockbroker revealed it increased its number of customers by 66,000 in the year to September to 542,000.

The company said the 14pc increase helped it hit a record for its assets under administration, which rose 22pc to £86.5bn.

Chief executive Michael Summersgill said it had “lowered the cost of investing for our customers whilst maintaining our industry-leading service levels”.

He added: “Whilst the upcoming Budget has introduced unhelpful uncertainty, we remain positive about the outlook for AJ Bell and the platform market more broadly.”

07:34 AM BST

Savers ‘pulling cash from pensions ahead of Budget’

Britons are pulling more cash from their pensions as they fear tax rises in the Budget, according to the boss of one of Britain’s largest investment platforms.

AJ Bell chief executive Michael Summersgill said savers were increasing their tax-free cash withdrawals from their pensions ahead of the Chancellor’s speech on October 30.

Rachel Reeves is poised to launch the biggest Budget tax raid in history which will involve as much as £35bn of tax rises – the most on record in cash terms – as she protects her commitment to ending “austerity” and attempts to ensure departments avoid real-terms cuts in spending.

Under present rules, savers can usually take up to 25pc of the amount built up in any pension as a tax-free lump sum, up to a limit of £268,275.

Mr Summersgill said: “Pensions are the primary retirement savings vehicle in the UK and customers are unsurprisingly sensitive to changes in their tax treatment.

“Amidst increased press coverage ahead of the upcoming Budget, we have seen a noticeable change in both customer contributions to pensions and tax-free cash withdrawals.”

07:26 AM BST

Good morning

Thanks for joining us. We begin the day with a look at pensions, which savers are raiding for their tax-free lump sum ahead of the Budget, according to investment platform AJ Bell.

Chief executive Michael Summersgill said the company had seen a “noticeable change” in tax-free cash withdrawals, as well as contributions.

5 things to start your day

1) Ryanair threatens to axe hundreds of UK flights if Reeves raises taxes | Michael O’Leary fires warning shot over fears of higher air passenger duty in Budget

2) London-listed Splenda maker surges on talk of £2.8bn takeover | Tate & Lyle threatens to become the latest big business to quit the London stock market

3) How the drop in inflation ‘caught the Bank of England off guard’ | Back-to-back rate cuts on the table as CPI falls below 2pc target

4) Most companies are hiring rapists and abusers, claims minister | Jess Phillips says employers can play a bigger role than the Government in tackling domestic violence

5) Amazon to power electric vans with mini-nuclear reactors | Retail giant says SMR technology will also provide energy for artificial intelligence and data centres

What happened overnight

Asian markets rose Thursday as Chinese investors were buoyed by a Beijing briefing that promised a boost for the ailing housing sector.

Chinese markets gained after officials in Beijing announced the government was expanding financing for housing projects to try to turn around a slump in the property market triggered by a crackdown on excessive borrowing by developers.

In Hong Kong, the Hang Seng index gained 0.9pc to 20,460.86, while the Shanghai Composite index was up 0.1pc at 3,205.95.

China is due to announce its economic growth data for the third quarter on Friday. Economists are forecasting annual growth at about 4.5pc, short of the government’s target of about 5pc.

In Tokyo, the Nikkei 225 index lost 0.6pc to 38,950.18 after the government reported Japan’s exports fell 1.7pc from a year earlier in September, widening the country’s trade deficit.

Elsewhere in Asia, South Korea’s Kospi slipped 0.2pc to 2,606.23 and in Australia the S&P/ASX 200 added 0.6pc to 8,337.60.

Taiwan’s Taiex gained 0.3pc and India’s Sensex was down 0.3pc. In Thailand, the SET gained 0.7pc a day after the central bank cut its key interest rate by a quarter of a percentage point, to 2.25pc.

Wall Street stocks surged after better-than-expected profit reports from Morgan Stanley and United Airlines offset a retreat in tech stocks.

The S&P 500 closed up 0.47pc to 5,842.47 points. The Nasdaq Composite rose or 0.28pc to 18,367.08. The Dow Jones Industrial Average advanced 0.79pc to a record high of 43,077.70.