Electric car battery maker to slash jobs and scale back operations
Europe’s leading battery maker is to slash jobs and scale back its commitments as the “challenging” market for electric vehicles bites manufacturers.
Northvolt, the Swedish company which raised £10bn to challenge China’s dominance of batteries, today pledged to refocus efforts on improving its struggling factory in Skellefteå and cutting costs.
This will involve “a re-scope of operations and appropriate resizing of our workforce”, an announcement said.
The company, which counts German car giants BMW and Volkswagen among its backers, also said it would sell or seek investment from outside partners in its energy storage business.
It is the latest business to scale back its investment plans as a slowdown in EV sales spooks the automotive industry.
Last week, Volkswagen warned that it could be forced to close a factory in Germany for the first time and make large cost savings as it manages the transition away from petrol cars.
Read the latest updates below.
06:18 PM BST
Apple launches new iPhone 16
Thanks for joining us today on the Markets blog.
We will be back in the morning but you might like to read our live coverage of Apple's latest announcements here.
06:17 PM BST
European shares rebound from dour week with central banks in focus
European stock indexes rose on Monday, recovering from steep declines the previous week as focus shifted to an anticipated interest rate cut from the European Central Bank on Thursday.
The pan-European Stoxx 600 index closed 0.8pc higher after falling 3.5pc the week prior, its worst week since March 2023.
Major national stock markets advanced between 0.7pc and 1pc on Monday, with French stocks leading gains.
Highlighting the persistent economic worries on the Continent, data on Monday showed investor morale in the euro zone fell for a third consecutive month in September, dropping to its lowest level since January.
Taking centre stage is the European Central Bank's rate decision on Thursday. Markets broadly anticipate the central bank will ease policy by a quarter point. Traders will be watching for any signals from ECB President Christine Lagarde on the possibility of further cuts this year.
France's Cac 40 rose 1pc, while Germany's Dax rose 0.8pc.
05:14 PM BST
Britain spends record £250m a month on electricity imports
Britain is importing record amounts of electricity from abroad at a cost of £250m a month following the closure of coal-fired and nuclear power stations, new analysis shows. Industry editor Matt Oliver reports:
Some 20pc of the grid’s power needs were met through interconnectors with neighbouring countries during the second quarter of this year, according to energy company Drax.
The amount of power imported from abroad was double the volume generated by wind and solar farms, at about 12.2 terawatt hours. It was also about four times the amount of power exported.
Drax said the gross cost of importing power currently amounted to more than £250m per month – equivalent to about £3bn if sustained over a year.
The company said the rising use of interconnectors followed the closure of many of Britain’s ageing coal and nuclear power stations.
Coal generation is on track to end completely as part of efforts to reach net zero carbon emissions, while no new nuclear power plants have come online since Sizewell B in 1995.
05:00 PM BST
Stocks and the dollar recover from US jobs disappointment
European and US stock markets bounced higher and the dollar recovered today after big pre-weekend falls over concerns about the health of the US economy.
Global stocks markets slumped Friday following data showing weaker than expected US jobs growth, which raised concerns about the economy.
Following Friday's sharp losses - which followed drops earlier in the week - a rebound attempt is no surprise, said Briefing.com analyst Patrick O'Hare.
In a note to clients, he said:
It is simply the start of something after big losses, which makes it reflexive in nature.
Frankly, how the market starts today is irrelevant to how it finishes.
The S&P 500 is up 1.1pc, while the Dow Jones Industrial Average is up 1.4pc. The tech-heavy Nasdaq has risen 1pc.
The US Dollar Index - a measure of the American currency against a basket of trade parners' currencies - is up 0.4pc.
04:53 PM BST
FTSE 100 closes up 1.1pc
It has been a strong day for the FTSE 100, with the blue-chip index closing up by 1.1pc.
The top riser was gambling giant Entain, up 5.3pc, followed by aerospace manufacturer Melrose Industries, up 4.2pc.
At the other end of the index, Burberry lost 4.9pc, while housebuilder Berkeley fell 3.7pc.
Meanwhile, the mid-cap FTSE 250 rose by 0.8pc.
The top riser was animal genetics company Genus, up 6pc, followed by food manufacturer Bakkavor, up 5.2pc.
Computercenter fell the most, by 6.9pc, followed by Ithaca Energy, down 2.4pc.
04:41 PM BST
Euro zone bond yields mixed as markets mull rate cut bets
Euro zone bond yields are painting an uncertain picture this afternoon, as markets ponder the likely scale of European Central Bank and Federal Reserve rate cuts.
German government bonds rose this morning, before losing ground this afternoon.
Germany's 10-year bond yield, which is the benchmark for the euro zone bloc, is currently 2.175pc, down from 2.178pc on Friday. It reached 2.239pc earlier today.
The benchmark yield fell last week as data showed the US labour market was cooling. This week, investors are looking to US inflation data due on Wednesday and a European Central Bank interest rate decision on Thursday.
Markets are still digesting Friday's US employment report, which showed growth in non-farm payrolls was lower than expected in August while the unemployment rate fell to 4.2pc from 4.3pc.
Kit Juckes, chief FX strategist at Societe Generale, said:
Rates traders are pushing back against the idea of a [half a percentage point] Fed cut this month.
There's no doubt the U.S. economy is slowing, but by the same token, no reason to label it a hard landing yet.
04:21 PM BST
Investors ‘snapping up bargains’ on the US stock market
US stocks moved higher this afternoon, following their UK and European counterparts, as markets looked ahead to key data and actions from central banks.
It follows a dismal time for the US stock markets last week.
Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York, said:
Corrections or profit-taking tend to be followed by stronger markets and I think that’s what we’re seeing today. It’s somewhat of an oversold market, and not on a lot of news.
Buyers are coming in and snapping up bargains.
Last week a mixed bag of data, particularly an August employment report, caused investors to dial back expectations that the US Federal Reserve could issue an buger half a percentage point rate cut when it convenes for its policy meeting next week.
On Wednesday, the US Labor Department’s consumer price index is expected to show underlying inflation remains on its meandering path back down toward the central bank’s 2pc goal.
Mr Ghriskey said:
The Fed is seemingly ready to lower interest rates, and I think it’ll be at a measured pace. Speculation of a [half a percentage point] cut is probably excessive, but it’s an overhanging positive event that market is quick to discount.”
04:16 PM BST
Traders ‘getting ahead of themselves’ on rate cuts, suggests economist
The bond markets are betting too strongly on US interest rate cuts, the chief economist of an global accounting giant has suggested.
George Lagarias, chief economist at Forvis Mazars, said:
As is often the case in this cycle, we think bond markets (from which expectations are implied) are probably getting ahead of themselves [because the US economy] does not paint a distressing picture ...
The US economy might be slowing, but it is still performing well, so we see the Fed taking its time to lower rates. Currently, we expect one cut in September and one more by the end of the year.
Ultimately, the Fed’s choices will make a big difference to the Bank of England and the ECB, both of which are keen to reduce rates earlier, as they have to contend with similar inflation but much lower growth.
04:08 PM BST
Traders show ‘calmer attitude’ on global markets today
Global stocks are in positive territory this afternoon, a big contrast with the pessimism that prevailed on Friday.
The MSCI World index is up 0.4pc.
Chris Beauchamp, chief market analyst at online trading platform IG, said:
Friday’s selloff has seen countered by a wave of buying from investors, while the Vix [a measure of the US stock market's expectation of volatility] has dropped back sharply.
The drop in the chances of a [half a percentage point] rate hike [by the US Federal Reserve] suggests that a calmer attitude prevails among investors, despite the slew of weaker jobs data from the US.
04:01 PM BST
Musk endorses scathing report on the EU economy
Elon Musk has endorsed key findings of a report which criticises the EU as being “stuck in a static industrial structure”.
The report, by Mario Draghi, the former prime minister of Italy and head of the European Central Bank, says that regulation, a lack of innovation, and a failure to create fast-growing companies is holding the Continent back.
Mr Draghi said:
Europe must profoundly refocus its collective efforts on closing the innovation gap with the US and China, especially in advanced technologies.
Europe is stuck in a static industrial structure with few new companies rising up to disrupt existing industries or develop new growth engines. In fact, there is no EU company with a market capitalisation over €100bn that has been set up from scratch in the last fifty years, while all six US companies with a valuation above €1 trillion have been created in this period.
This lack of dynamism is self-fulfilling ...
Regulatory barriers to scaling up are particularly onerous in the tech sector, especially for young companies ... The net effect of this burden of regulation is that only larger companies – which are often non-EU based – have the financial capacity and incentive to bear the costs of complying. Young innovative tech companies may choose not to operate in the EU at all.
Mario Draghi's critique is accurate.
A thorough review of EU regulations to eliminate unnecessary rules and streamline activity in Europe would revitalize growth and strengthen competitiveness.
Things should be default legal, rather than default illegal. https://t.co/NQQom5OYIS— Elon Musk (@elonmusk) September 9, 2024
03:42 PM BST
World Trade Organisation warns over tariffs
Import tariffs tend to disproportionately hit low-income households, the World Trade Organisation (WTO) warned in a report released today, countering what it sees as backlash against open markets and rising protectionism.
Ngozi Okonjo-Iweala, director general of the WTO, said the report reaffirmed trade's role in reducing poverty and sharing prosperity "contrary to the currently fashionable notion" that trade was creating a more unequal world.
The United States is poised to hike tariffs on a range of Chinese imports, including a quadrupling of the rate for electric vehicles, while Canada has matched the US EV rate and the European Union had introduced its own EV duties.
China has responded with investigations into EU dairy, pork and brandy imports and rapeseed oil from Canada.
US presidential candidate Donald Trump has proposed a 10pc tariff on all imports and a higher rate for those from China.
The WTO report said that low-income households typically faced a greater burden from higher tariffs.
In the United States, consumer goods from China that are now exempt from import tariffs are predominantly shipped to low-income regions, benefiting poorer households.
Richer households consume a greater share of imports from high-income economies, the report said.
03:34 PM BST
Wall Street rises as investors hope for a soft landing
Wall Street's benchmark indexes rose this afternoon, rebounding from a week of heavy losses as investors remained optimistic about a so-called "soft landing" for the US economy ahead of a crucial inflation report later in the week.
The S&P 500 is up 0.9pc, the Nasdaq by 0.8pc and the Dow Jones Industrial Average of 30 leading companies by about 1pc.
Stocks rose after falling sharply last week, with Tesla adding more than 3pc and Nvidia up 2pc.
Major chip stocks, which also saw heavy selling last week, regained some ground with the Philadelphia Semiconductor index up 1.2pc after tumbling more than 4pc on Friday.
Global markets were rattled last week amid uncertainty over the US economy's health, adding fuel to an already volatile period that has investors grappling with a shift in the Federal Reserve's policy and worries over stretched stock market valuations.
Friday's weaker-than-expected August jobs data spurred worries on economic growth, driving the Nasdaq Composite to its worst week since January 2022, while the S&P 500 saw its biggest weekly drop since March 2023.
03:33 PM BST
Oil prices turn negative after brief rebound
The rebound in oil prices did not last long following predictions that prices will keep falling after a bruising past week.
Brent crude was down by as much as 0.6pc to less than $71 a barrel after commodity traders at Trafigura predicted its could fall "into the $60s some time relatively soon".
With that, I am heading off for the day and I will leave you in the capable hands of Alex Singleton.
annnnnnddd crude once again negative 💀 pic.twitter.com/mMwm6TLa1m
— Rory Johnston (@Rory_Johnston) September 9, 2024
03:12 PM BST
Jumbo interest rate cut could hurt stocks, warns Wall Street bank
US stocks could fall if the Federal Reserve announces a larger-than-expected cut in interest rates next week, a Wall Street bank has warned.
Shares could be hit by a further unwinding of the so-called “carry trade” on the yen, according to Morgan Stanley.
Global stocks plunged last month as investors were forced to reduce their exposure to the investment strategy, in which they borrow in the yen, which has lower interest rates than the US, and then reinvest those proceeds into higher-yielding assets like stocks.
Money markets indicate there is a 28pc chance that the Federal Reserve will cut interest rates by half a percentage point next week in a bid to avoid a severe slowdown in the American economy.
Morgan Stanley strategist Michael Wilson said:
The yen carry-trade unwind may still be a risk factor behind the scenes.
A quick drop in US front-end rates could cause the yen to strenghten further, thus eliciting an adverse reaction in US risk assets.
02:49 PM BST
Elon Musk on track to be world’s first trillionaire
Elon Musk is on track to quadruple his wealth and become the world’s first dollar trillionaire in just three years, new research suggests.
Our foreign breaking news reporter Kieran Kelly has the details:
The South African-born entrepreneur, 53, who owns companies ranging from Tesla to X, formerly known as Twitter, is already ranked as the richest person in the world.
The SpaceX founder has a net worth of $251bn (£191bn), according to Bloomberg’s Billionaires Index, which is growing at a rate of 110pc a year.
If his wealth continues to grow at the same rate, Mr Musk will be the world’s first US dollar trillionaire by 2027, according to data from research company Informa Connect Academy.
Read how he has built his wealth.
02:34 PM BST
Wall Street rebounds ahead of inflation figures
US stock markets began the day higher amid renewed optimism on Wall Street ahead of inflation figures later this week.
The Dow Jones Industrial Average rose 209.7 points, or 0.5pc, at the open to 40,555.11.
The S&P 500 rose 33.6 points, or 0.6pc, at the open to 5,442.07​, while the Nasdaq Composite rose 144.8 points, or 0.9pc, to 16,835.674.
02:25 PM BST
Gas prices rise ahead of first autumn cold snap
Gas prices have moved higher as the first cold weather of the autumn descended on Europe.
Dutch front-month futures, the benchmark for the continent, gained as much as 2.8pc to more than €37 per megawatt hour as overnight temperatures are forecast to drop as low as 6C by Friday in London.
Meanwhile, there are increasing supply concerns as gas producers on the US Gulf coast face potential disruption from a storm and a major Australian facility has reduced its capacity for safety inspections.
02:05 PM BST
Electric car battery champion to cut jobs amid ‘challenging’ market
Europe’s leading battery maker is to slash jobs and scale back its commitments as the “challenging” market for electric vehicles bites manufacturers.
Our industry editor Matt Oliver has the details:
Northvolt, the Swedish company which raised £10bn to challenge China’s dominance of batteries, today pledged to refocus efforts on improving its struggling factory in Skellefteå and cutting costs.
This will involve “a re-scope of operations and appropriate resizing of our workforce”, an announcement said.
The company, which counts German car giants BMW and Volkswagen among its backers, also said it would sell or seek investment from outside partners in its energy storage business.
It is the latest business to scale back its investment plans as a slowdown in EV sales spooks the automotive industry.
Last week, Volkswagen warned that it could be forced to close a factory in Germany for the first time and make large cost savings as it manages the transition away from petrol cars.
02:00 PM BST
EV battery maker mothballs jobs and scales back operations
Electric car battery maker Northvolt has said it will cut jobs and scale back its operations to focus on its main gigafactory in Sweden.
Several problems with its first gigafactory in Sweden prompted it to launch a strategic review after the promising start-up was plagued by a series of unexplained accidents, with five employees dying since November last year.
The battery maker has struggled financially amid pushing against obstacles to ramp up its production on a larger scale at its first factory.
The company said:
The cost-saving mechanisms necessary for Northvolt to meet its core objective of focussing on large-scale cell manufacturing will regrettably include some difficult decisions on the size of our workforce to match the needs of a reduced scale of operations.
No final decisions have been made on the precise nature of any resizing. We remain in constructive discussions with the unions, and will ensure that every effort is made to minimize the need for redundancies.
Chief executive Peter Carlsson said: “As difficult as this will be, focussing on what is our core business paves the way for us to build a strong long-term foundation for growth that contributes to the Western ambitions to establish a homegrown battery industry.”
01:48 PM BST
Gucci owner hits seven-year low amid fears for luxury market
Shares in French fashion designer Kering plunged amid fears about the slowdown in China, which has hampered growth in the luxury goods market.
The Gucci owner's stock valuation dropped as much as 4.3pc to the lowest level since 2017 as analysts at Barclays cut their rating of the stock from "equalweight" to "underweight", meaning investors should have limited exposure.
Barclays analyst Carole Madjo said: "Gucci appears particularly hard hit by the Chinese slowdown."
Kering's share price has tumbled 43pc so far this year, putting it on track for its worst performance since the global financial crisis.
01:32 PM BST
HSBC considers combining commercial and investment bank
HSBC is considering combining its commercial and investment bank as new chief executive Georges Elhedery tries to cut costs, it has been reported.
It would mean HSBC’s global banking and markets business - which includes its trading divisions - would combine with its services offered to small enterprises up to large multinationals, according to Bloomberg News.
The bank's shares jumped 2.6pc after the cost-cutting news, which made it the biggest force behind the FTSE 100's 0.7pc gain so far today.
HSBC named Mr Elhedery as its first Mandarin-speaking chief executive in July amid investor pressure to shift its headquarters to China.
Europe’s biggest bank promoted Mr Elhedery from finance chief to replace Noel Quinn, who unexpectedly stepped down this year to pursue a better work-life balance.
01:14 PM BST
Oil outlook ‘weakest since 2011’
Trader expectations for the oil market have reached the weakest level in 12 years amid worries about demand.
The "new long position" among traders in oil - meaning the balance of traders expecting prices to rise - has fallen to its lowest level since 2011, according to the ICE Exchange.
Saxo’s head of commodity strategy Ole Hansen said:
A near 7pc slump in crude through technical support levels triggered a combination of long liquidation and fresh short selling, which overall left the combined net long in WTI and Brent at the lowest level in 12 years.
Recent and persistent weakness across the refined fuel market helped drive an increase in the net short position in the London and New York diesel futures.
Combining the five major crude and fuel contracts, the net long of these fell to the lowest level since 2011, when the ICE Exchange started to collect Brent and gas oil data.
12:44 PM BST
Oil growth ‘will come from India, Africa and Latin America’
Not all analysts think the price of oil is heading downwards from the present level of just under $72 a barrel.
Jeff Currie, chief strategy officer of Carlyle Group’s Energy Pathways, said at the APPEC industry conference in Singapore that prices could rise thanks to interest-rate cuts from the Federal Reserve and a likely recovery in financial positioning, Bloomberg reported. He said:
I’m not going to be jumping up and down for strong demand growth out of China.
The growth going forward for oil and energy is going to come out of places like India, Africa and parts of Latin America.
12:13 PM BST
Oil prices poised to plunge as global economy faces slowdown
Oil prices will plunge in the near future, analysts predict, amid doubts over demand from China.
Wall Street bank Morgan Stanley and commodities traders at Trafigura have warned that Brent crude, the global benchmark, will continue a drop that saw oil lose nearly 10pc of its value last week.
Brent has rebounded today after dropping to its lowest level since 2021, nearing $72 a barrel.
However, Trafigura’s head of oil Ben Luckock said the price is “probably going to go into the $60s some time relatively soon,” down from as high as $91.17 in April.
Morgan Stanley has cut its price forecasts for the benchmark for a second time in a matter of weeks, but there are concerns the fall in prices may not benefit drivers.
Figures from the AA last week showed the price of petrol fell to its lowest level in three years but the motoring group warned any further drops could be wiped out if the Government decides to scrap the 5p fuel duty cut in the Budget next month.
Oil prices have fallen since early July amid concerns about demand from the world’s two largest economies in the US and China, while the Opec+ cartel of nations has said it is sticking with a long-term objective to boost production into next year.
11:59 AM BST
Wall Street on track to rise amid hopes US will avoid recession
US stock indexes were higher in premarket trading as investors remained optimistic about soft landing prospects for the American economy.
All megacap stocks rose ahead of the opening bell, with Tesla leading the gains after a 2pc jump.
Global markets were rattled last week as uncertainty over the US economy's health rippled across stocks.
Seema Shah, chief global strategist at Principal Asset Management, said:
Today, the markets remain cautiously optimistic, reflecting hopes that rate cuts will avoid a downturn.
Yet, if economic conditions worsen sharply, fears of a recession could outweigh the benefits of rate cuts.
History shows that rate cuts themselves are not the enemy —it's the economic context in which they occur that investors should be paying close attention to.
In premarket trading, the Dow Jones Industrial Average was up 0.6pc, the S&P 500 had gained 0.7pc and the Nasdaq 100 was up 0.8pc.
11:28 AM BST
Pound falls ahead of employment figures
The pound has slipped ahead of official employment figures out this week as a survey indicated the jobs market suffered its worst month since 2013.
Sterling was down 0.4pc against the dollar to $1.308 as the prospect of a weakening labour market increases the likelihood of interest rate cuts to boost growth.
The pound was down fractionally against the euro, which is worth 84.4p.
10:58 AM BST
Designer behind Princess of Wales’ wedding dress joins Givenchy
A longtime-Alexander McQueen designer behind the Princess of Wales' 2011 wedding dress has been named the new creative director for Givenchy.
British designer Sarah Burton joins the brand owned by LVMH after nearly three decades at rival Kering under the Alexander McQueen label.
Her predecessor, Matthew M Williams, left Givenchy in December after three years.
Ms Burton is known for flattering, deconstructed styles at McQueen, where she carried on the legacy of the label's founder, Lee McQueen following his death in 2010.
Her appointment at the French fashion house, founded in 1952 by Hubert de Givenchy, comes as the fashion industry grapples with a global downturn in spending by luxury shoppers, particularly in China, where a property crisis has dampened appetite for high-end goods.
Givenchy is known for sparking the idea of the perfect "little black dress" as a wardrobe staple, after designing a gown worn by Audrey Hepburn in the 1961 film "Breakfast at Tiffany's."
10:41 AM BST
Meloni’s Italy urges Brussels to delay 2035 petrol car ban
Italy has called for a review of the European Union’s 2035 petrol car ban amid fears it risked triggering the industry’s “collapse”.
Our industry editor Matt Oliver has the details:
Ministers from Giorgia Meloni’s government claimed the “absurd” policy was ideologically driven and required change to reflect the realities of the market.
There has been growing unease across the Continent about a slowdown in demand for electric vehicles (EVs).
There are also concerns that Europe’s car industry is falling increasingly behind manufacturers in China and the US, which have benefitted from a flood of government subsidies.
Thinking about buying an electric car? Read on for what you need to know.
10:26 AM BST
Hostmore shares plummet as TGI Fridays deal collapses
Hostmore has said it has dropped plans to buy TGI Fridays in the US for £177m, leading its shares to plummet by more than 90pc.
The deal was set to see Hostmore, which runs 87 restaurants in the UK, merge with US-based TGI Fridays Inc, to create a larger company that will remain listed in London.
It described the two businesses as a "natural fit" and which had been combined until 2014.
But today, Hostmore said it was no longer pursuing a takeover following a management change which means it would no longer be able to collect royalties from the TGI Fridays brand.
This could impact the future revenue of the business, with the royalty stream being the main attractive feature for Hostmore in pursuing the deal, it said.
While it is no longer actively pursuing an acquisition, the two company said they were "open to re-engaging discussions" in the right circumstances.
Meanwhile, Hostmore is in the process of selling its UK restaurants to new owners, as it looks to become a fully franchise-operated model.
The process, which is expected to complete by the end of the month, is predicted to result in Hostmore being wound up and delisted from the London Stock Exchange. The restaurants remain open as normal.
10:10 AM BST
Barratt agrees deal to build tens of thousands of homes
Barratt Developments aims to build tens of thousands of houses across the UK as part of a new joint venture with Lloyds Banking Group and Government body Homes England.
The tie-up - called Made Partnership - will focus on large sites, including so-called brownfield developments, as well as new garden village-style communities.
It will look to develop these sites to deliver from 1,000 to over 10,000 homes, as well as community facilities and employment uses.
The partnership sees Barratt - one of the UK's biggest housebuilders - team up with the Government body responsible for housebuilding and regeneration in England, as well as lending giant Lloyds.
Shares in Barratt rose 1.2pc as it said the long-term joint venture will be initially backed by up to £150m of combined equity funding, equally split by the partners.
Labour has said it wants to build 1.5m homes between now and 2029, a target which would need the sector to significantly boost its output if it is to be met.
Chancellor Rachel Reeves has already said she will reform the planning system to help meet the target, while the Government said it will restore mandatory housebuilding targets for local authorities as part of the drive.
Housing and planning minister Matthew Pennycook said: "A failure to ensure the development system is working properly has held back the delivery of tens of thousands of new homes over recent years and this Government will work in partnership with all those who are focused on turning things around."
09:55 AM BST
China’s property crisis will deepen, says Standard Chartered boss
China's property crisis has yet to reach its worst point, the boss of Standard Chartered has said, as official figures showed spending remained sluggish in the world's second largest economy.
Bill Winters said the investing environment in China is “difficult” with consumer and investor confidence relatively low.
It comes as inflation in August came in below expectations, raising pressure on Beijing to boost domestic activity amid property sector woes and trade frictions.
The consumer price index (CPI) rose 0.6pc in August, which was up slightly from 0.5pc in July but lower than economists' forecasts of 0.7pc.
Mr Winters told CNBC:
We know that the underlying source of a lot of the confidence questions is the property market, and the property market has not yet completely bottomed out, so it’s been a slow grind down.
There are some signs from time to time that we’re seeing an increase in activity, but at the same time, it doesn’t feel like we’ve really found a true bottom in terms of price.
09:37 AM BST
Oil rebounds from three-year lows
Oil has risen from its lowest close since 2021 ahead of reports this week that may clarify the demand outlook.
Brent climbed 1.3pc towards $72 a barrel after losing almost 10pc last week, while West Texas Intermediate was up 1.3pc above $68.
Oil’s recent losses have been driven by signs of slowdowns in the US and China, endangering demand at a time of abundant supply.
Traders will this week look at forecasts from the Opec cartel, the Energy Information Administration and the International Energy Agency.
A storm in the Gulf of Mexico is forecast to strengthen into a hurricane early this week, risking supplies.
09:21 AM BST
Musk among star-studded crowd for US Open final
Tesla chief executive Elon Musk posed for selfies as he joined a host of celebrities in the Arthur Ashe Stadium at Flushing Meadows to watch the final of the US Open.
The SpaceX boss and owner of social media site X, formerly known as Twitter, watched World No1 Jannik Sinner outclass American pretender Taylor Fritz in a straight-sets victory.
08:58 AM BST
UK markets rebound ahead of jobs figures
The FTSE 100 rebounded from six sessions of declines as investors await official UK jobs market data this week.
The blue-chip index and the FTSE 250 were both up 0.5pc. The FTSE 100 last week posted its worst weekly performance since October 2023.
Travel and leisure stocks led sectoral gains as Entain jumped 7.9pc after the gambling group said its online revenue growth in the second half of this financial year was ahead of its expectations.
Industrial metal miners and energy shares rose as much as 1.5pc and 0.8pc, respectively, while heavyweight banks advanced as much as 1.3pc.
It comes as a survey of recruiters showed that Britain's jobs market suffered its worst month since 2013, which could bolster the case for interest rate cuts from the Bank of England.
By contrast, Burberry that lost 3.3pc to take it to the bottom of the FTSE 100 after Barclays downgraded the stock to "underweight" from "equal-weight".
British restaurant operator Hostmore plummeted by more than 90pc after it dropped plans to buy pub chain TGI Fridays.
Investors are focused on employment figures and UK GDP data out this week.
08:50 AM BST
Former Patisserie Valerie boss named Revolution Bars chairman
Revolution Bars has named former Patisserie Valerie boss Luke Johnson as its new chairman as it tries to move past a restructure that saw its close a dozen venues.
Mr Johnson, who has also been chairman of PizzaExpress, holds 20pc stake in the chain of bars, known as Vodka Revs to its customers.
The serial leisure entrepreneur said he was tricked by a fake picture of Patisserie Valerie’s finances during his time as executive chairman of the company.
Patisserie Valerie crashed into administration in January 2019 after the discovery of a £94m black hole in its accounts.
Mr Johnson takes over from Keith Edelman who is retiring after holding the role at Revolution Bars since 2015.
Revolution chief executive Rob Pitcher said: “We are excited to be working with Luke who is vastly experienced in the hospitality sector and brings a wealth of knowledge to enable the next phase of the Group’s development.”
08:29 AM BST
European stocks rebound ahead of expected ECB rate cut
European stock markets climbed at the open, recovering slightly from heavy pre-weekend falls amid fears about the US economy.
In the eurozone, the Paris Cac 40 index gained 0.4pc to 7,380.88 points and Frankfurt's Dax rose 0.4pc to 18,368.13 as investors await an expected interest-rate cut from the European Central Bank later this week.
08:18 AM BST
American candy shops drive £1bn surge in small business tax evasion
American candy shops and illicit online retailers have driven a £1bn boom in small business tax evasion since the pandemic, the National Audit Office (NAO) has warned.
Our deputy economics editor Tim Wallace has the details:
Evasion cost the Exchequer £5.5bn in 2022-23, the watchdog said. Of that, £4.4bn was driven by small businesses, up from £3.1bn before Covid, an increase of £1.3bn.
The NAO said HM Revenue and Customs has launched campaigns at “some high risk retailers including takeaways and candy shops” but worries are still growing.
It said: “Stakeholders and correspondents have raised concerns with us about new and evolving evasion risks in the retail sector, both on the high street (including souvenir and sweet shops) and by overseas retailers selling goods online.
“Examples include fraudulent company registrations, overseas sellers evading VAT through online marketplaces, and businesses understating sales figures or companies artificially declaring themselves insolvent and setting up a new company (known as “phoenixism”).”
It criticised HMRC for potentially giving too little priority to evasion through electronic sales suppression - in which companies use software which records artificially low sales volumes - and phoenixism.
“Weaknesses in company registration requirements and tax processes have left the UK too open to tax evasion,” the NAO said, warning that recent steps to tighten the rules “will take time to implement”.
08:03 AM BST
UK markets open higher as oil rebounds
The FTSE 100 bucked the trend in global markets to begin the week higher amid a rebound in oil prices.
The UK's blue-chip index was up 0.6pc to 8,227.11 while the midcap FTSE 250 rose 0.5pc to 20,602.26.
07:53 AM BST
Ladbrokes owner expects NFL season to drive new app
Ladbrokes and Coral owner Entain said online gaming sales have risen faster than expected in recent months, as it is set to benefit from the start of the American football season.
The company, which is one of the world's biggest sports betting and gaming firms, said it was making further progress in the US through its BetMGM sports betting app, which was launched ahead of the kick off of the new NFL season.
It said sales momentum had continued into the second half of the year, with online net gaming revenues - meaning the total amount of cash pocketed after paying out winnings to punters - growing ahead of its own expectations.
The business had previously expected online gaming revenues to decline this year, but upgraded this outlook after a stronger first-half.
07:39 AM BST
O’Leary calls for air traffic control boss to quit
Ryanair boss Michael O'Leary has issued fresh calls for the resignation of the chief executive of air traffic control (ATC) provider Nats.
Mr O'Leary urged Martin Rolfe to step down and "allow someone competent" to take over after flights were disrupted at Gatwick Airport on Sunday due to "Nats staff shortages".
Staff shortages at Gatwick’s control tower led to at least 100 flight cancellations on Sunday, according to Travel Weekly.
Ryanair's chief executive has repeatedly criticised Mr Rolfe, particularly over the widespread disruption at UK airports during last year's August Bank Holiday Monday, which was caused by a Nats technical failure.
Nats previously said it is "working in line" with a staffing plan agreed with Gatwick bosses when it took over the provision of ATC services at the airport in October 2022, which includes training further controllers.
Mr O'Leary said:
This is the latest in a long line of cock-ups by UK Nats, which has yet again disrupted multiple flights and thousands of passengers at Gatwick. Airlines and passengers deserve better.
Ryanair again calls on UK Nats chief executive Martin Rolfe to step down and allow someone competent to run an efficient UK ATC service, which airlines and passengers are entitled to expect.
If he won't go, then (new Transport Secretary) Louise Haigh should sack him.
07:35 AM BST
Aldi profits up fourfold as it cuts costs
Supermarket chain Aldi unveiled its £800m plan to ramp up expansion across the UK as it reported surging annual sales and profits.
The discount grocer said it notched up record UK and Ireland sales of £17.9bn for 2023, up 15.4pc on £15.5bn the previous year.
Pre-tax profits jumped to £536.7m from £152.6m in 2022, which Aldi said was also down to cost savings across the business.
07:23 AM BST
Aldi to open 23 new stores by end of the year
Aldi has announced plans to open 23 new stores by the end of the year as part of an £800m investment in its British estate.
The German discounter will open sites including Muswell Hill in London and Caterham in Surrey as part of its push to expand its number of supermarkets from more than 1,000 to 1,500.
Aldi said it has invested almost £100m in over 300 price cuts in the last three months, and earlier this year it sealed a £750m deal with the family-owned, Kent-based fruit farming business AC Goatham & Son – which will include the first ever ‘Aldi Orchard’ on a 200-acre plot on New Green Farm near Gravesend.
It said it would also refurbish 100 existing stores and expand its distribution centres under a two-year £1.4bn investment plan.
Aldi UK and Ireland chief executive Giles Hurley said:
British shoppers are voting with their feet and choosing Aldi as their first-choice supermarket. We’re responding with our biggest ever annual investment in Britain.
For every £1 of profit generated last year, we’re investing £2 this year – opening more stores and building the supply infrastructure to bring high-quality, affordable groceries to millions more families the length and breadth of Britain.
We’re also investing at record levels to cut prices, reward our amazing colleagues and support more causes in our local communities. All while creating thousands more jobs and even more opportunities for our growing base of British suppliers and farmers.
07:10 AM BST
Summer tourism pushes services activity to two-year high
BDO found that output across the services sector rose to a two-year high in August with a reading of 99.03.
Growth was driven by an increase in new contracts, and summer tourism spurring more consumer and business spending, the report found.
Kaley Crossthwaite, a partner at BDO, said that services continued to be the "cornerstone of economic growth".
She added:
The coming months will be crucial in determining whether the UK can maintain its recovery momentum and fight back against these headwinds.
No doubt all eyes will be on the autumn Budget and the Government's plans for helping business tackle persistent unemployment levels and the skills gap.
07:08 AM BST
Jobs market suffers worst month in more than a decade
The jobs market has suffered its worst month in more than a decade, according to new analysis that will add to pressure for a further interest rate cut.
A report by accountant BDO found that the strength of the jobs market declined for the 14th consecutive month in August, with a reading of 95.89.
Anything over 95 signals growth, meaning recruitment is still just expanding, but this was the lowest score since January 2013.
The jobs market has faced a declining number of vacancies, with many businesses slowing or freezing hiring as they weather tougher economic conditions.
It suggests higher interest rates are starting to bite. The BDO index - a “poll of polls”, made up of data from the UK’s most influential business surveys - is likely to be among data considered by Bank of England policymakers as they weigh up whether to cut borrowing costs again later this month.
There were also more people claiming unemployment-related benefits in August, at the highest level since December 2021, according to figures from the Office for National Statistics.
06:49 AM BST
Good morning
Thanks for joining me. We begin the week with data on the UK jobs market, which has suffered its worst month in more than a decade, raising pressure on the Bank of England to cut interest rates.
Recruitment expanded at its slowest pace since 2013 in August, according to a report by accountant BDO.
5 things to start your day
1) Why electric cars are forcing Britain to confront a pay-per-mile future | Rachel Reeves risks a driver revolt if she uses road pricing to fill a £22bn black hole
2) Reeves urged to charge capital gains tax on inherited second homes and businesses | Scrapping ‘bad tax relief’ would raise £2bn a year and drive economic growth, says IFS
3) Challenger bank backed by Lord Mandelson hit with winding up petition | Tax office takes legal action against Bank of London Group over allegedly unpaid bills
4) Thames Water debt emergency seized on by US hedge funds | Elliott Management to play central role in future of utilities giant after scooping up cut-price loans
5) TalkTalk faces fresh debt squeeze after founder’s £400m bailout | Struggling broadband provider hit with punishing borrowing costs following emergency rescue deal
What happened overnight
Asian stocks fell after another rout hit Wall Street on Friday, as highly anticipated jobs market figures came in weak enough to add to worries about the economy.
The Nikkei 225 index was hovering around its lowest level in almost a month, as it slipped 2.1pc in morning trading to 35,613.32.
Japan’s gross domestic product grew by 2.9pc in the second quarter compared to the previous three months, according to revised data from the Cabinet Office, which was below expectations.
Stocks in Chinese markets also racked up losses after worse-than-expected inflation data disappointed investors.
Data from the National Bureau of Statistics on Monday showed deflationary pressure continues to loom large, as the consumer price index grew by 0.6pc in the year to August.
Hong Kong’s Hang Seng index declined 1.8pc to 17,123.90 and the Shanghai Composite index was down 0.9pc, at 2,740.71.
Australia’s S&P/ASX 200 dipped 0.6pc to 7,967.10. South Korea’s Kospi lost 0.8pc to 2,523.86.
US stocks tumbled on Friday after new data showed weaker than expected US jobs growth, reviving fears that months of elevated borrowing costs are putting pressure on the economy.
The S&P 500 fell 94.99 points, or 1.7pc, to 5,408.42. The Dow Jones Industrial Average fell 410.34 points, or 1pc, to 40,345.41. The Nasdaq composite fell 436.83 points, or 2.6pc to 16,690.83.
