Amazon has plummeted at the opening bell, dropping 7.8pc after its $113bn (£81bn) of sales were not enough to satisfy investors' high expectations, as Wall Street sank despite data showing a robust rise in consumer spending last month.
The retail and tech giant warned sales will slow over the next few quarters as customers venture out more with restrictions relaxed or non-existent now. Other tech stocks also slipped, with Facebook falling 0.56pc and Google owner Alphabet losing 0.76pc.
US markets all sank at the open, with the tech-heavy Nasdaq dropping 0.87pc and the S&P 500 0.47pc lower. The Dow was mostly flat.
"Expectations across the board were quite high for corporate earnings and the reason we are seeing some of the shares drop despite positive results is because people expect exponential growth, which to be honest is too high to expect," said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
Amazon's share price plunge came as it also revealed a €746m (£635m) data protection fine levied by the European Commission, easily the highest penalty issued under General Data Protection Regulation rules so far.
"We believe the CNPD's decision to be without merit and intend to defend ourselves vigorously in this matter," Amazon said in the filing.
01:26 PM
Insolvencies rise as experts warn of more to come
One of the peculiarities of the pandemic has been the low number of insolvencies compared to other recessions, down almost solely to the extraordinary amounts of government support to keep firms' heads above water.
That is starting to change now Covid restrictions are over, as my colleague Louis Ashworth writes below:
Business insolvencies ticked up during the second quarter of the year, in what restructuring experts said was a “sign of more to come”.
However, rates remain depressed by pre-virus standards, suggesting high levels of job support are continuing to suppress company collapses.
There were 3,116 registered company insolvencies between April and June – the highest level since the start of lockdown last year, but about a quarter below pre-pandemic levels.
The Insolvency Service, which gathered the data, said relatively low overall numbers were likely to be partly driven by the extensive pandemic support on offer to businesses. The agency does not record where insolvencies are directly related to the pandemic.
The quarterly rise was driven by an increase in creditors’ voluntary liquidations, in which shareholders decide to liquidate an insolvent business.
Colin Haig, president of insolvency and restructuring trade body R3, said: “It’s hard to say what’s driving this increase in CVLs, but it could be that directors of a number of companies have decided they can no longer go on trading as a result of the pandemic, and are opting to close down their businesses… before the situation deteriorates further.”
Construction, hospitality and retail businesses saw the most insolvencies, in line with pre-Covid trends.
The Insolvency Service’s Becca Wedge-Roberts said: “The [sector-specific numbers] are likely to be driven by the number of active companies in a given category rather than the relative likelihood of companies in each industry entering insolvency.”
The liquidation rate also flattened out, rising slightly on the previous quarter to mark the first increase since the start of the pandemic.
Samantha Keen, a turnaround and restructuring partner at EY-Parthenon, said many companies face a “challenging recovery” even as the economy reopens.
“With most Government support schemes having come to an end or beginning to taper at the start of Q3 2021, some companies’ cash positions will now be more exposed than previously,” she said.
“Many companies are also facing additional challenges in the form of increased raw material prices, supply shortages and delays, and labour shortages – exacerbated in some cases by the impact of Brexit and ongoing pandemic-related disruption.”
01:16 PM
Watchdog has no plans to probe Morrisons takeover, say bidders
Morrisons is the subject of a £6.3bn private equity bid - TOLGA AKMEN/Getty Images
The would-be buyers of UK supermarket chain Morrisons say they do not need approval from the UK competition regulator if shareholders back its takeover.
My colleague Laura Onita has the details:
The US consortium bidding for Morrisons said that it will not need the green light from the UK’s competition regulator if its £6.3bn offer for the chain is voted through.
Softbank-backed Fortress said in a regulatory statement that the Competition and Markets Authority has not opened a probe, nor has it indicated that it intended to do so.
The update comes days after the boss of the CMA wrote to the business select committee saying it was unlikely to investigate the deal because it did not fall within its statutory remit.
The Fortress-led consortium added that the regulator had no further questions in relation to its 254p-a-share offer for the grocer, which has been recommended by the board of Morrisons to shareholders.
Fortress owns Majestic Wine in the UK and petrol stations in the US, among others.
The new owners of Asda recently agreed to dispose of several petrol stations to get the thumbs up from the CMA. The Issa brothers' EG Group owns hundreds of petrol stations, some of which were too close to Asda's forecourts.
Fortress’ statement comes after mounting resistance from top Morrisons investors this week to back the deal, saying the offer was too low.
The takeover must be supported by 75pc of shareholders in a meeting on Aug 16 if it is to go ahead. No investor has gone on the record in support.
A CMA spokesperson said: “The CMA cannot speculate about which cases it may or may not investigate and does not comment on briefing papers received by the CMA.”
Fortress warned in a circular for Morrisons' investors this month that it could pause the deal if the competition regulator or the Government seeks to block it.
Bosses at Fortress have signed up Singapore's sovereign wealth fund GIC to join their takeover consortium and the firm is on the brink of agreeing a similar deal with rival buyout titan Apollo Global Management, in a move likely to fuel speculation that it will increase its offer.
Rival US firm CD&R, which is understood to be lining up former Tesco boss Sir Terry Leahy to become Morrisons chairman, is in talks with lenders for a counterbid. The firm has until Aug 9 to make its intentions clear under City takeover rules.
12:56 PM
US inflation gain largest since 1991
The 3.5pc gain in an inflation indicator used by the Federal Reserve as a guide was ahead of the 3.4pc May increase and represents the biggest move since July 1991.
However economists had predicted a 3.7pc rise.
“Inflation has increased notably and will likely remain elevated in coming months before moderating,” Fed Chair Jerome Powell said on Wednesday.
“As the reopening continues, bottlenecks, hiring difficulties, and other constraints could continue to limit how quickly supply can adjust, raising the possibility that inflation could turn out to be higher and more persistent than we expect.”
12:42 PM
US spending jumps above forecasts
US consumer spending rose more than expected in June as vaccinations against COVID-19 boosted demand for travel-related services and recreation, but part of the increase reflected higher prices, with annual inflation accelerating further above the Federal Reserve's 2pc target.
Reuters has the details:
Consumer spending, which accounts for more than two-thirds of US economic activity, rebounded 1.0pc last month after dipping 0.1pc in May, the Commerce Department said on Friday.
Nearly half of the population has been vaccinated against COVID-19, allowing Americans to travel, frequent restaurants, visit casinos and attend sporting events among services-related activities that were curbed early in the pandemic.
While spending on goods remains strong, the pace has slowed amid shortages of motor vehicles and some household appliances, whose production has been hampered by tight supplies of semiconductors across the globe.
The data was included in the second quarter gross domestic product report published on Thursday. Consumer spending grew at a robust 11.8pc annualized rate last quarter, accounting for much of the economy's 6.5pc growth pace, which lifted the level of GDP above its peak in the fourth quarter of 2019.
With demand outpacing supply, inflation is heating up.
The personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, rose 0.4pc in June after advancing 0.5pc in May. In the 12 months through June, the so-called core PCE price index shot up 3.5pc. The core PCE price index increased 3.4pc year-on-year in May.
Economists polled by Reuters had forecast consumer spending increasing 0.7pc and the core PCE price index surging 3.7pc year-on-year. The core PCE price index is the Federal Reserve's preferred inflation measure for its flexible 2pc target.
12:33 PM
FTSE 100 down 0.8pc
12:22 PM
Blow to Merkel as German economy struggles to bounce back
German Chancellor Angela Merkel is seen through a window as she gives her annual summer press conference - STEFANIE LOOS /AFP
German industry struggled to recover in the three months to June, dealing a fresh blow to the outgoing Chancellor, Angela Merkel, reports my colleague Tim Wallace.
He writes:
The eurozone’s largest economy grew by 1.5pc in the second quarter, missing expectations of a 2pc jump.
It failed to overcome the drop in the first quarter that proved to be bigger than previously thought. GDP dropped by 2.1pc in the opening three months of the year, rather than the 1.8pc initially estimated, according to the Federal Statistics Office.
Economist Bert Colijn at ING said that Germany “was plagued by supply chain problems more than other countries given the size of its car industry, which has been particularly hard hit”.
US oil and gas giant ExxonMobil reported better-than-expected quarterly profits Friday on higher commodity prices, pointing to rising petroleum demand as economies recover from Covid-19.
The oil and gas giant reported profits of $4.7bn (£3.4bn) in the second quarter, compared with a loss of $1.1bn (£788m) in the same period a year-ago when pandemic restrictions devastated energy demand.
That translated into $1.10 per share, compared with the 97 cents projected by analysts.
11:55 AM
SEC stops processing IPOs made by Chinese companies, says Reuters
The US Securities and Exchange Commission has stopped processing registrations IPOs made by Chinese companies, according to Reuters.
The agency is reportedly paused registrations of IPOs and other sales of securities until it has crafted new investor guidance about the risks related to Beijing's current regulatory crackdown by Beijing.
Adding to a widening reining in of the country's internet industry, China today said it would increase oversight of ride-hailing companies and regulators also ordered more than two dozen technology firms to carry out internal inspections as part of a campaign to root out illegal online activity.
11:32 AM
Johansson sues Walt Disney
US actress Scarlett Johansson arrives for the 92nd Oscars at the Dolby Theatre in Hollywood, California - ROBYN BECK /AFP
Scarlett Johansson has sued Walt Disney for releasing her latest film Black Widow on Disney+, indicating that actors could present a significant hurdle to the streaming industry's efforts to lure new films to release straight to their paid-for platforms.
Johansson, whose contract with Marvel guaranteed her a share of the box office receipts, is claiming the biggest entertainment company in the world broke its promise to release her latest film Black Widow only in movie theatres when it made it available for streaming on the Disney+ video service.
Disney wanted to draw audiences away from movie theaters to its own streaming service to generate revenue and grow subscribers, the actress said in a complaint filed Thursday in Los Angeles Superior Court.
A Marvel fan holds the Guinness World Record for the most times seeing a film in a theater, having watched Endgame 191 times, Johansson said. But with Premier Access, there are no repeat ticket sales, she said.
“It is tantamount to handing each moviegoer a free DVD on their way out of the theatre,” Johansson said in the complaint.
Disney is yet to comment.
11:08 AM
US stock futures inch lower
US stock futures fell this morning, as investors worried about slowing growth at big technology companies and the ongoing technology crackdown in China.
Futures tied to the Nasdaq 100 dropped over 1pc and Amazon fell in premarket trading after its missed expectations with its sales outlook. Facebook and Apple also issued cautious forecasts this week.
S&P 500 futures also fell 0.5pc and Dow Futures inched 0.1pc lower.
11:00 AM
More on Eurozone growth
10:55 AM
Eurostar chief demands airline tax to help save rail link to France
The boss of Eurostar is calling for an airline tax to subsidise rail services to the Continent in a move that would help Boris Johnson meet his climate change commitments, reports Oliver Gill.
He writes:
Jacques Damas urged the Prime Minister to encourage more Britons to use Eurostar instead of flying to northern Europe.
“If the UK Government wants to commit to its objective for carbon emissions reduction … then they have to activate the right levers," he said. “This high speed [railway] in the world has a lot of remaining capacity.”
The French President, Emmanuel Macron, is cracking down on domestic flights with a ban on services that can be travelled by direct train in less than two-and-a-half hours.
Markets in London are slumped today. After briefly recovering, the FTSE 100 is down 0.9pc while the FTSE 250 fell 0.8pc.
A major contributor to those losses are travel stocks, after BA owner IAG said it suffered a loss after tax of €2bn (£1.7bn) in the six months to the end of June and Italy extended its quarantine rules for UK travellers for another month.
IAG is down 6.9pc and among the mid-caps, Easyjet is down 4.9pc and Tui fell 5.1pc.
10:17 AM
Money-round-up
Here's a round-up of today's stories from The Telegraph's Money team:
China targets ride-hailing in latest instalment of internet crackdown
China said today it will increase oversight of its ride-hailing and on-demand trucking companies, adding to a widening tech crackdown by Beijing and adding to problems for beleaguered ride-hailing giant Didi.
Some firms in the industry are currently operating irregularly and disrupting fair competition, the transport ministry said in a statement Friday that didn’t mention specific companies. The sector must protect driver rights, root out illegal cars and drivers and strengthen data security, it added.
The statement is the latest in a series of pronouncements by Beijing on the tech industry. In the past week, the internet industry regulator, antitrust watchdog as well as the State Council have issued statements or new regulations concerning everything from after-school tutoring to illegal internet activity and food delivery.
09:55 AM
Arla warns of 'summer of disruption' amid driver shortage
The boss of the UK's biggest dairy supplier said the company was not able to deliver milk to 600 stores last Saturday due to a shortage of drivers.
Ash Amirahmadi, managing director of Arla Foods UK, said the company has struggled to deliver to around 10pc of stores in recent weeks.
He told BBC Radio's Today programme: "We are trying to avoid a summer of disruption. We are experiencing the problem getting worse and that's why our assessment is that we are in a driver shortage crisis and therefore we are asking for the industry and Government to work together to recognise we are in a crisis and address the issue."
Mr Amirahmadi said there needed to be a "structural solution" from Government, including improvements to testing and temporary visa changes, to resolve the shortage in the short-term.
"There is a backlog of tests for HGV drivers - we predict about 30,000 drivers are waiting to be tested," he added.
"We want Government to work with us to accelerate that and secondly we believe that driving should be recognised as a skilled shortage and therefore they should open up temporary visas for the industry to be able to bring European drivers back into the country."
Arla said its third-party hauliers have raised wages to entice drivers while it has also offered a £2,000 signing-on bonus.
09:44 AM
Crypto exchange Binance to wind down derivatives in Europe
The world's largest cryptocurrency exchange Binance is planning to wind down its futures and derivatives products offerings across Europe, as the company faces a slew of global regulatory probes amid a worldwide crackdown on cryptocurrencies.
The announcement will take immediate effect in Germany, Italy and the Netherlands, Binance said. Users from these countries will have 90 days to close their open positions.
Read more about Binance recent regulatory headaches here:
Here's details about how individual countries within the euro-area performed:
The German economy dissapointed with just 1.5pc growth in the second quarter, falling short of economist predictions for a 2pc increase.
Italian GDP rose 2.7pc from the previous quarter, showing the economy is bouncing back from one of the euro-area’s deepest recessions in 2020.
The economy in France grew 2pc in the second quarter, with finance minister Bruno Le Maire saying the figures put the country on track to meet the government’s 6pc growth forecast for 2021.
Spain's economy grew by 2.8pc in the second quarter compared to the first, buoyed by a robust rebound in household consumption and a recovery in the services sector.
09:22 AM
UK burns coal to compensate for low wind
Black Law wind farm near Carluke in Scotland, UK - Hulton Archive /Construction Photography/Avalon
The UK has been burning coal for the past 34 days to meet power demand, as power generated by wind turbines fell to unusual lows.
“Unusually low wind output over July this year has meant fossil fuel generation – including some coal – making up a little more of the mix than during the same period last year,” a National Grid Plc spokesman said by email.
Wind was 11pc of the mix compared with over 20pc in July last year. The average amount of coal in the electricity mix was 2.1pc from June 25 to July 28 compared with an average of 1.6pc in 2020, according to National Grid data.
It’s unusual to need coal in summer when demand is lower. Use of the fuel is getting less frequent as Britain moves toward phasing it out by 2024. When Electricite de France SA shuts its last UK coal plant at the end of September next year, that will leave just one station.
09:09 AM
Eurozone economy grows 2pc
The Eurozone economy grew 2pc in the second quarter, exceeding economists' expectations of 1.5pc, as coronavirus restrictions were lifted across the 19-country bloc.
Year on year, the economy grew 13.7pc, according to statistics agency Eurostat. Economists had expected growth of around 13.2pc.
Inflation in the eurozone rose 2.2pc in July, driven by energy prices (up 14.1pc), food (up 1.6pc) and services (up 0.9pc).
A film trailer for the 25th instalment in the James Bond series entitled "No Time to Die" is displayed at Piccadilly Circus in London - Lisi Niesner /Reuters
Cineworld has secured $200m (£143.3m) in new loans to bolster its finances ahead of an "unprecedented slate of films" in the second half of the year, including delayed titles such as the latest James Bond and Top Gun films.
The cinema chain, which also operates the Picturehouse chain in the UK and Regal cinemas in the US, also amended covenants on existing debt facilities to improve its financial position following a heavy impact from the pandemic.
The business said the move will provide it with the "financial and operational flexibility and resilience to execute on its business strategy as it resumes its operations".
Chief executive Mooky Greidinger said:
The additional liquidity announced today provides the Group with significant operating flexibility now that cinemas have opened across the world.
We are monitoring the evolution of the virus and its potential impact on our business, but we are very excited about the potential of the unprecedented slate of films in the second half of 2021 (mainly in the fourth quarter).
We remain confident in the prospects for our business and continue to look forward to welcoming our customers back to the best place to watch a movie.
Cineworld shares were 1.5pc lower in early trading on Friday.
08:43 AM
FTSE pares losses
The FTSE 100 is now paring back this morning's losses, down 0.5pc compared to yesterday's close.
Pearson shares have made a U-turn. After falling 1.6pc earlier, they are now up 1.3pc as investors digest its latest results.
The education company said it swung to profit in the six months to the end of June, after a strong demand for virtual schools.
08:32 AM
Rightmove almost doubles half year profits
Property website Rightmove almost doubled its pre-tax profit to nearly £115m in the first six months of this year, after the company received a boost from the stamp duty tax break and a homebuyer rush to secure more space.
The company said today the number of visits to the site rose by around 56pc to 1.4bn.
However the business is still around 15pc behind pre-pandemic 2019 profits. Shares lifted 0.3pc in early trading.
The business paid out no interim dividend last year. It has now promised shareholders 3p per share, up from 2.8p two years ago.
"The first half of 2021 brought further lockdowns, instilling in many a desire or motivation to move home, and the nation relied on us to help them to find their new life, with a record 10.4bn minutes spent searching and researching on Rightmove," said chief executive Peter Brooks-Johnson.
The board said that it is confident that it can meet expectations "in the full year and beyond".
08:26 AM
Deliveroo to leave Spain
Food delivery app Deliveroo has announced plans to quit Spain, four months after the country announced that riders must be considered employees, rather than self-employed.
The company said today that continuing to operate in the country would require a "disproportionate level of investment".
Hadi Moussa, international chief business officer at Deliveroo said:
The decision to propose ending our operations in Spain is not one we have taken lightly. We want to thank all of the restaurants who work with Deliveroo in Spain, as well as our fantastic customers. Particular thanks goes to the thousands of brilliant, hard-working riders who chose to work with Deliveroo, as well as our talented and committed employees. They will be supported throughout the consultation period.
08:22 AM
What happened overnight in the US?
Amazon's Andy Jassy speaks at the WSJD Live conference in Laguna Beach - Mike Blake /REUTERS
Here's a round-up of what happened in the US overnight:
Amazon shares plunge more than 7pc after disappointing sales results: The online shopping giant said revenues had climbed by 27pc in the three months to the end of June to $113bn (£81bn), the third successive quarter revenues had surpassed $100bn. However, shares dropped by more than 7pc in after-hours trading, with the sales figures missing analysts’ expectations and towards the lower end of Amazon’s own guidance. Read more about that story by my colleague Io Dodds here.
Robinhood ended its first day on the Nasdaq down 8.4pc from its offering price: It was the worst-ever performance for a US debut of its size. The company broke with convention to offer between 20pc and 25pc of its offering to individual investors according to reports, building on its company motto of democratising finance. But apparently even the app's own users weren't convinced about the company's long term growth prospects and its strategy to avoid looming threats from regulators.
Major stock indexes rose despite GDP data suggesting the economic rebound was starting to slow: US markets shrugged off data that showed gross domestic product grew by 6.5pc, below expectations, The Dow rose 0.4pc or 153.6 points to 35084.53; the S&P 500 gained 0.4pc or 18.51 points to 4419.15; the Nasdaq lifted 0.1pc or 15.68 points to 14778.26.
08:09 AM
Sterling reaches one month high against the dollar
While the FTSE is falling, Sterling has reached a one-month high versus the dollar and is heading for its best week since December ahead of a Bank of England meeting next week.
"Markets appear to be rebuilding some GBP long positions ahead of next week’s Bank of England meeting, with sentiment on the currency that has recently been buoyed by a contraction in COVID-19 cases in the UK despite most restrictions having now been lifted," ING analysts said in a research note.
In a meeting on Thursday, the Bank of England is expected to continue supporting the economy with stimulus even as the discussion about the need to begin tapering its bond-buying programme gains momentum.
Broad dollar weakness, which was exacerbated by a dovish Federal Reserve meeting this week, has also helped the currency.
Sterling has added around 3pc in less than a fortnight to waver just below $1.40. It is currently trading at $1.3967.
07:59 AM
Consortium says UK regulator 'has no further questions' about Morrisons deal
Customers move through a Morrisons supermarket - Chris Ratcliffe /Bloomberg
The private equity-backed consortium seeking to buy Morrisons said today that Britain's competition regulator has not raised any issues regarding its £6.3bn takeover deal and "has no further questions" regarding the offer.
The consortium, which is led by Majestic Wine owner Fortress, said the Competition and Markets Authority has "not opened an inquiry or indicated in writing that it is still investigating whether to open an inquiry".
The Morrisons bidder said that it does not expect any delay in proceeding with the agreed takeover, which will go to a shareholder vote in August.
The supermarket group agreed to the takeover days after it rebuffed an initial £5.5bn approach from rival private equity firm Clayton, Dubilier & Rice (CD&R).
UK takeover regulators have given CD&R a deadline of August 9 to either place its own firm bid for the chain or walk away.
However, a number of major Morrisons shareholders, including its largest investor Silchester International, have criticised the agreed deal. Shares in the company are currently valued at over 264p per share, suggesting that shareholders believe there is still strong potential for a rival bid above the 254p per share offer made by the consortium.
Shares of FTSE 250 listed Babcock have plunged 10pc after the defence giant reported its operating loss widened to £1.64bn in the year ending March 31 from £75.6m a year earlier.
The company suffered a £2bn hit in impairment charges after a review of its contracts and balance sheet. It said, over the next 12 months it will attempt to dispose of £400m worth of contracts, while trying to save £40m.
"We have a plan in place to strengthen the group without the need for an equity issue," chief executive David Lockwood said.
COVID-19 has damaged the business due to weaknesses in civil aviation, while social distancing rules have had an impact on productivity and margins because many of its jobs involve working in close proximity on ships and in submarines for example.
07:31 AM
FTSE drops 1pc
The FTSE 100 has dropped 1pc as investors express their disappointment with results reported this morning.
There are only two stocks making gains on the index this morning - Diageo (up 0.1pc) and BT Group (up 1.3pc).
Companies which have reported results are leading the losses. Assurance and product testing group Intertek is down 7.3pc and BA owner IAG is down 3.2pc.
Pearson also fell 1.6pc even after reporting a better-than-expected rebound in first-half profit.
Miners Anglo American, Glencore, Antofagasta and Evraz are close behind, all down between 2.4pc and 2.9pc.
07:25 AM
BA owner suffers €2bn loss
IAG, the owner of British Airways and Iberia, said today that it suffered a loss after tax of €2bn (£1.7bn) in the six months to the end of June.
Revenues remain severely depressed by the pandemic, down 60pc at €2.2bn .
The airline giant said it "continues to be adversely affected by the Covid-19 pandemic together with government restrictions and quarantine requirements".
Passenger capacity in the second quarter was only 22pc of its pre-pandemic 2019 level.
As reported earlier, IAG however said that it planned to ramp up services this summer, once international travel curbs are fully lifted.
07:11 AM
Pearson swings to profits after strong demand for virtual schools
Pearson has swung to profit as the educational publisher pinned its digital transformation on the launch of a direct-to-student app in the United States, reports my colleague Ben Woods.
The FTSE 100 company rebounded from the pandemic to record a £127m operating profit for the six months to June, up from a £23m loss last year.
Revenues also rose 17pc to £1.6bn, driven by a sales jump of 12pc and 21pc respectively across its online learning and assessment business.
Shares rose 1pc to 855p, as the better-than-expected performance and "confidence in its outlook" prompted Pearson to increase interim payment to investors by 5pc to 6.3p.
The update came as chief executive Andy Bird unveiled Pearson+, a student subscription app designed to hasten the company's shift from printed text book to online-first publishing.
The new app will offer 1,500 titles for $14.99 a month in a shift towards forging relationships directly with students as opposed to colleges and universities.
Mr Bird has vowed to transform the 177-year-old company into a digital business after false dawns under previous management led to six profit warnings in seven years.
Pearson has suffered from the escalating cost of college textbooks, forcing the company to cede market share to the second-hand books market where students can pick up academic titles more cheaply.
The former Disney executive said the app provides an experience for students that "looks and feels like the rich media experiences they use to consume news, music and movies".
07:02 AM
FTSE drops
FTSE 100 has dropped quite substantially on opening, falling 0.7pc or 51 points to 7,022.44.
The FTSE 250 has also edged lower, down 0.4pc or 96 points to 22,957.55.
06:57 AM
British Airways to increase flights
Signage is unveiled at London's Heathrow Airport to celebrate the safe reopening of international travel - David Parry /PA
British Airways is planning to ramp up its flight schedules this summer, betting on a late summer travel rebound, according to parent company IAG.
The airline is planning to operate 45pc of passenger capacity compared to 2019 levels between July and September. Over the past three months, it has been flying at 22pc of 2019 levels.
IAG warned that plans to increase flight numbers "remain uncertain and subject to ongoing review".
It added that it "continues to be adversely affected by the Covid-19 pandemic together with government restrictions and quarantine requirements".
Chief executive Luis Gallego said:
In the short term, our focus is on ensuring our operational readiness, so we have the flexibility to capitalise on an environment where there's evidence of widespread pent-up demand when travel restrictions are lifted.
We know that recovery will be uneven, but we're ready to take advantage of a surge in air travel demand in line with increasing vaccination rates.
We welcome the recent announcement that fully-vaccinated travellers from amber countries in the EU and the US will no longer have to quarantine upon arrival in the UK.
We see this as an important first step in fully reopening the transatlantic travel corridor.
06:51 AM
Glencore upgrades profit forecast
Open pit copper mines at Mutanda Mining Sarl on July 6, 2016 in Kolwezi, DRC - Per-Anders Pettersson
Glencore has raised expectations for its trading division amid a surge in demand for commodities which is triggering bumper dividends across the mining industry, reports Rachel Millard.
The FTSE 100 mining and trader expects profit from its trading division, which sources, processes and delivers commodities around the world, to reach the top end of its forecast range between $2.2bn and $3.2bn [£2.3bn].
However, the company cut expectations for the amount of nickel and coal it expects to produce, citing maintenance at its Prodeco coal mine in Columbia and operating issues at its Koniambo nickel mine in New Caledonia.
Market conditions in Australia have also contributed to the 16pc fall in coal production, from 58.1m tonnes during the first half of 2020 to 48.7m tonnes during the same period this year. Nickel production fell 14pc to 47,700 tonnes.
Its own production of copper and cobalt rose slightly to 598,000 tonnes and 14,800 tonnes, it added in the production report published yesterday (Friday).
Gary Nagle, former head of Glencore's coal division who took over as chief executive at the start of this month, said: "Our industrial operating assets continued to manage responsibly and effectively amid the health and logistical challenges presented by Covid-19, while, from a market perspective, we remain disciplined in a recovering, yet somewhat uncertain, global economic picture.
"Our marketing business has again performed well, with constructive market conditions allowing us to raise our full year expectations."
06:24 AM
Natwest swings back to profit
Good morning. Natwest swung back into profit as it released cash it had been holding to protect itself from bad loans during the pandemic. The lender smashed expectations of £1.8bn to record £2.5bn of operating profit in its latest half-year. That compares to a loss of £770m the previous year after it released £707m it had been holding to cover unpaid loans from customers during the worst of the pandemic.
NatWest said that it was releasing the money after its economic outlook improved, and outlined plans for a £750m share buyback in the second half of the year. The bank will also pay a 3p dividend for the first-half of the financial year, totalling £347m, £150m of which will go to its majority shareholder, the Government.
Chief executive Alison Rose said: "These results have been driven by good operating performances across the group, underpinned by a robust loan book and a strong capital position."
Elsewhere, the FTSE 100 is slump when markets open, driven lower by China's continued crackdown on the private sector. Despite US markets notching up new record highs amid a strong earnings calendar, a spike in delta variant cases and China's measures against companies in education, tech and property have spooked investors.
Michael Hewson, of CMC Markets, said: "The reality is that the recent crackdown by China has let the genie out of the bottle, and confidence appears to have shifted. Ultimately no-one will risk putting money back into markets until regulators in China put some meat on the bones, and for the moment that’s all that they have."
Asian shares slipped on Friday, with a gauge of regional equities set for its biggest monthly drop since the height of global pandemic lockdowns last March, while the dollar lagged near one-month lows on expectations of continued Fed stimulus.
But the stock market losses were moderate compared with sharp falls earlier in the week that had been sparked by investor fears over the impact of regulatory actions in China against the education, property and tech sectors.
Reassurances from Chinese regulators and official media have helped to soothe investors' nerves, as have statements from the US Federal Reserve that its bond-buying programme will remain unchanged for now. The US posted strong second-quarter growth helped by rising vaccinations and government aid, but the expansion fell short of expectations.
On Friday, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.84pc, taking its losses for the week to more than 6.5pc. Japan's Nikkei dipped 1.71pc, set for an 11th straight month of falls on the last trading day in the month.
Chinese blue-chips fell 0.96pc, and Hong Kong's Hang Seng fell 1.27pc, with tech stocks once again dragging. The Hang Seng Tech index deepened its losses for the week to more than 17pc. Seoul's Kospi was last down 0.94pc on the day.
Finance expert Suze Orman has voiced concerns about the impact of climate change on property insurance costs, asserting it could threaten the American dream of homeownership. Orman, 72, faced a $28,000 annual insurance quote for her Florida oceanside condo, leading her to forego coverage entirely. She highlights a troubling trend where soaring insurance costs driven by frequent and severe weather events may deter Americans from buying homes. Don't Miss: For many first-time buyers, a house is abo
Six teams managing nearly $15 billion in total assets quit JPMorgan Chase’s brokerage unit to join competitors last Friday. Here’s what may have triggered their departures.
(Bloomberg) -- Seven property insurers in Florida went bankrupt in 2021 and 2022. The bankruptcies left thousands of homeowners scrambling to get new coverage, which often came with a big increase in cost. Worse, many had outstanding claims for hurricane damage that had not been addressed.Most Read from BloombergTaylor Swift Is Proof That How We Critique Music Is BrokenBiden’s Gains Against Trump Vanish on Deep Economic Pessimism, Poll ShowsBiden’s New Chopper Is Demoted After Scorching White Ho
A Russian court has ordered the seizure of funds in JPMorgan Chase bank accounts in Russia, court filings showed on Wednesday, in a lawsuit filed by state-owned bank VTB as it seeks to regain funds blocked abroad. JP Morgan Chase last week sued VTB in New York to halt its efforts to recover $439.5 million from an account that was blocked after Russia despatched its army to Ukraine in 2022 and VTB was hit with sanctions.
After Congress approved billions of extra funding for tax compliance, the Internal Revenue Service pledged it would get tougher on rich taxpayers and corporations while avoiding extra scrutiny of middle-class households.
