FTSE 100 drops to three-month low amid global sell-off
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London’s main stock index slid to its lowest closing price for three months this afternoon amid a global sell-off.
Top mining stocks in the City had a particularly poor session, with Anglo American, Glencore and Antofagasta all lower on the back of waning metal prices.
Vodafone and Shell were also notable drags on the FTSE 100.
The index finished 1.2pc lower to end the day at 8,025.77.
Kathleen Brooks, research director at XTB, said: “The stock market rally is on pause ... There have been some chunky losses for European stocks, and even US stocks have seen their gains slow.”
In continental Europe, the main indexes fell back amid concerns over the Chinese economy, with a weak response to its latest fiscal stimulus announcement. Luxury firms, which rely on exports to China, were particularly hit.
France’s Cac 40 ended 2.7pc lower for the day and Germany’s Dax was down 2.1pc.
On Wall Street, the main stock benchmarks opened in the red as their recent rally faded, although tech stocks were broadly positive once again.
Quincy Krosby, chief global strategist for LPL Financial, said: “Given how every single day since the [US] election the market has done so well, it’s not unexpected for us to see a pull-back this week.”
Meanwhile, sterling dropped further after fresh labour market data from the Office for National Statistics showed that wage growth has fallen to its lowest level for more than two years.
The pound was down 1.09pc at $1.273 and down 0.5pc at €1.200.
Read the latest updates below.
06:14 PM GMT
Signing off...
That’s all for the Markets blog today, although I will leave you with the latest article by Matthew Lynn, who believes Cop has become an expensive farce:
It turns out that it wasn’t a practical joke after all. The Cop29 summit really is being held in Azerbaijan, a country where fossil fuels account for 90pc of exports.
Read the full article...
05:51 PM GMT
Inheritance tax raid ‘will deliver fatal blow’ to farming
Rachel Reeves’s inheritance tax raid will deliver a “fatal blow” to farming, the boss of one of Britain’s biggest food producers has warned.
Ranjit Singh Boparan, the tycoon nicknamed the “Chicken King”, blasted the Chancellor’s Budget as a “disaster for business” and said it risked pushing up inflation further for households.
The entrepreneur’s ￡5bn empire includes the UK’s biggest poultry producer, 2 Sisters Food Group, which processes more than 10m birds every week in the UK and Europe. He also owns the restaurants Carluccio’s and Giraffe, and food brands Bernard Matthews and Hollands Pies.
Mr Boparan said Ms Reeves’s tax moves made a “mockery of the Government claiming to want a self-sustaining farming sector that champions British-made food”.
He said: “This Budget was a disaster for business and will deliver a final fatal blow to the thousands of small, family-owned farms we in the food manufacturing sector rely upon day in, day out.
“They provide security of supply. This move will create food inflation and food insecurity. It will mean less people investing in food production in the UK.”
05:36 PM GMT
FTSE 100 drops to three-month low amid a global sell-off
London’s main stock index slid to its lowest closing price for three months this afternoon amid a global sell-off.
Top commodity stocks in the City had a particularly poor session, with Anglo American, Glencore and Antofagasta all lower on the back of waning metal prices.
Vodafone and Shell were also notable drags on the FTSE 100.
The index finished 1.2pc lower to end the day at 8,025.77.
Kathleen Brooks, research director at XTB, said:
The stock market rally is on pause ... There have been some chunky losses for European stocks, and even US stocks have seen their gains slow.
In continental Europe, the main indexes fell back amid concerns over the Chinese economy, with a weak response to its latest fiscal stimulus announcement.
France’s Cac 40 ended 2.7pc lower for the day and Germany’s Dax was down 2.1pc.
Stateside, the main Wall Street stock benchmarks opened in the red as their recent rally faded, although tech stocks were broadly positive once again.
Meanwhile, sterling dropped further after fresh labour market data from the Office for National Statistics showed that wage growth has fallen to its lowest level for more than two years.
The pound was down 1.09pc at $1.273 and down 0.5pc at €1.200.
05:27 PM GMT
Audi says rescue bid for Belgian EV factory withdrawn
German carmaker Audi has revealed that a potential bidder for its manufacturing site in Brussels had pulled out, ending hopes that the plant could be saved from closure.
Audi, a subsidiary of Volkswagen, announced earlier this year that it intended to close the plant, which employs some 3,000 people.
The closure of the factory, which is slated for the end of February, has prompted fierce protests in Belgium and strike action at the plant.
Audi said:
The potential investor from the commercial vehicle sector has withdrawn its expression of interest.
05:10 PM GMT
Euro hits one-year low against dollar
The euro fell to its lowest level against the dollar in a year as the dollar hit a five-month high against major peers this afternoon.
Trump has warned that the euro bloc will “pay a big price” for not buying enough American exports, with cars a particular target. He has threatened China with blanket 60pc tariffs.
Since his election last week, the euro has languished, while the yuan slumped to its lowest in more than three months, with Europe and China both targets of potential Trump tariffs.
The euro is feeling additional pressure from political uncertainty. Germany, the bloc’s biggest economy, is set to hold elections on Feb 23, which will be 11 weeks after the collapse of Chancellor Olaf Scholz’s governing coalition.
The euro sank to $1.0596 today, the lowest since November 2023.
05:05 PM GMT
Britain prepares more electricity imports as dunkelflaute hits wind farms
Britain is to build more subsea connections to the EU’s power grids, helping ward off dunkelflaute power shortages caused by a growing reliance on intermittent renewables.
Ofgem, the energy regulator, has approved controversial plans for the National Grid’s LionLink and Nautilus interconnector cables. This is despite furious local objections over the massive substations and cabling systems that will be built where the interconnectors come ashore.
The undersea cables will connect the UK to Dutch and Belgian windfarms and sit alongside other interconnectors that give the grid access to French nuclear power and Norwegian hydro-electric stations.
Another cable, Tarchon, running 610km (379 miles) between East Anglia and Niederlangen in Lower Saxony, will connect the UK to the German grid. No site for making UK landfall has yet been announced. NeuConnect, another interconnector to Germany, is already being built.
The projects mean Britain’s reliance on European power imports is likely to rise rapidly.
05:04 PM GMT
Trump calls Argentina’s Milei his ‘favourite president’, spokesman says
Donald Trump called Argentine president Javier Milei his “favourite president” during a phone call they held, a spokesman for the South American leader said today.
Mr Trump and Mr Milei have previously expressed their admiration for each other. They are set to meet in person later this week at Mar-a-Lago.
Reuters reported that the Argentina risk index, a measure of the premium investors demand to hold its bonds versus equivalent US debt, dropped to the lowest level in five years in the immediate aftermath of Donald Trump’s election.
04:52 PM GMT
FTSE closes down amid global sell-off
The FTSE 100 closed down 1.3pc today.
Medical technology group ConvaTec was the biggest riser, adding 22.1pc, followed by conglomerate DCC, which rose 14.2pc.
At the other end of the index, Vodafone lost 8.2pc and miner Fresnillo fell 7.8pc.
Meanwhile, the FTSE 250 dropped 1.4pc.
The top riser was software company Kainos, which gained 3.pc, followed by Drax, which added 3.8pc.
North Sea engineering business fell 10.9pc, while promotional productions business 4imprint lost 8.2pc.
04:37 PM GMT
World stock indexes in the red
Investors are selling stocks today, with the MSCI gauge of global stocks down 0.6pc.
Germany’s Dax is down 2.1pc, France’s Cac 40 is down 2.8pc and the FTSE 100 is down 1.3pc.
The US - which has benefited from the re-election of Donald Trump - is also in negative territory today, but not by as much as European counterparts. The Dow Jones is down 0.5pc, the S&P is down 0.2pc and the Nasdaq is down 0.1pc.
US stocks have rallied since the election, with each of Wall Street’s three major indexes closing at record levels yesterday.
04:29 PM GMT
Boeing says it will take weeks to ramp up plane making after strike
Boeing says it will be several weeks before it fully resumes building passenger planes, as factory workers return following a strike that lasted nearly two months.
The Associated Press reported that Boeing has said that the delay in restarting plants in Washington state and Oregon is due to multiple steps needed to resume production.
About 33,000 workers represented by the International Association of Machinists and Aerospace Workers began a strike Sept 13 over wages and pensions. They voted last week to accept a Boeing contract offer, and must return to work by Tuesday.
The strike shut down production of the 737 Max and 777 passenger planes and a cargo-carrying version of the 767 plane. Boeing continued building 787s, which are produced by non-unionised workers in South Carolina.
The Telegraph has invited Boeing to comment.
04:14 PM GMT
Bitcoin falls for first time since Trump election
Bitcoin has fallen today for the first time since the US election, despite predictions the currency would breach the symbolic $90,000 mark.
Investors have been funnelling cash into assets they think will get a boost from Trump’s second four-year term in office, in which he has vowed to raise tariffs on imports from key trading partners, as well as bring in tax cuts and looser regulations.
Bitcoin, the world’s biggest cryptocurrency, was trading just shy of a record $90,000 this morning, having gained 30pc in the week since the election. But this afternoon, it fell to 86,436, with the currency down 2.4pc since this morning.
Chris Weston, head of research at Pepperstone, told clients: “The question for traders not already set is whether there is still room to chase this red-hot play or wait for a slight retracement and for some of the heat to come out of the impulsive trend.”
Meanwhile, the euro and Chinese yuan have come under intense fire, as investors assess the risk of a steep rise in tariffs, as well as the risk of the Chinese economy continuing to struggle even with Beijing’s raft of multi-trillion dollar stimulus measures. The pound is down 0.9pc today against the dollar.
04:06 PM GMT
Sell-off of European stocks
European stocks fell strongly today, with the benchmark Stoxx 600 index down by 1.8pc. The FTSE 100 fell 1.2pc.
Axel Rudolph, senior technical analyst at online trading platform IG, said: “Disappointing German investor morale on top of US tariff concerns triggered a sell-off in European shares.”
On the domestic front, British wage growth excluding bonuses fell in the third quarter to its lowest in over two years, data released earlier in the day showed.
Also denting sentiment, Bank of England chief economist Huw Pill said that the labour market data showed inflation pressures remained too high for the Bank of England’s 2pc target.
03:55 PM GMT
Wall Street dips as some investors take profits
Wall Street’s main indexes are little changed this afternoon following post-election gains over the past few days.
Some of the stocks expected to perform well under president-elect Donald Trump’s leadership gave back gains. Tesla, which has soared nearly 40pc since Nov 5, fell as much as 4.2pc.
The Dow Jones Industrial Average fell 0.3pc, the S&P 500 lost 0.1pc and the Nasdaq was flat.
Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest, said:
I don’t attribute it to much more than a little bit of profit taking after a fabulous week.
The three major indexes closed at record highs on Monday as investors broadly expected Trump’s proposed tax cuts and expectations of easier regulatory policies to help equities.
03:32 PM GMT
Bitcoin trades just shy of $90,000
Bitcoin was trading just shy of a record $90,000 as the rally triggered by Donald Trump’s victory in the US election showed no sign of abating.
The world’s biggest cryptocurrency was last up 2.7pc today to $87,000, having hit a high of $89,968.10.
It has gained 30pc in the week since the election.
I’ll duck out at this point as Alex Singleton steps in to keep you updated on the latest things going on in the markets.
03:13 PM GMT
Activist investor Elliott builds $5bn stake in Honeywell
Activist investor Elliott Investment Management has taken a more than $5bn (￡3.9bn) stake in Honeywell International and is calling for the American conglomerate to split into two separate companies.
In a letter sent to Honeywell’s board, the US hedge fund said that the company needs to simplify its structure as it deals with poor execution, inconsistent financial results and an underperforming stock price.
Elliott is advising Honeywell to separate its automation and aerospace businesses, which it said would result in share-price gains of 51pc to 75pc over the next two years.
Elliott wrote: “As independent entities, Honeywell Aerospace and Honeywell Automation would benefit from simplified strategies, focused management, improved capital allocation, better operational performance, enhanced oversight, and numerous other benefits now enjoyed by dozens of large businesses that have moved on from the conglomerate structure, including former conglomerates General Electric, United Technologies, and many more.”
Shares of Honeywell rose as much as 7.8pc in early trading Tuesday.
03:04 PM GMT
Debt costs rise amid Trump trade war fears
The cost of government borrowing in the US has risen amid concerns that Donald Trump’s proposed tariff policies could push up inflation and the American budget deficit.
The yield on US Treasuries - the return the government offers to buyers of its debt - has risen across the board, with the benchmark 10-year bond coupon up about six basis points to 4.36pc.
The UK’s 10-year gilt yield was up three basis points to 4.45pc as the Bank of England revealed today it will continue to unwind its quantitative easing program.
02:47 PM GMT
Aldi closes in on third-biggest supermarket as Asda sales tumble
Asda is close to losing its position as Britain’s third-largest supermarket to Aldi as its market share slips and the German discounter holds its ground.
New figures from Kantar reveal that the gap between Asda and Aldi has narrowed to around ￡700m in sales.
Asda’s share of the grocery market has tumbled to 12.5pc, from 13.5pc a year ago, with spending in the 12 weeks to Nov 3 down by around ￡250m at ￡4.2bn.
Read how Aldi is poised to catch up in the crucial run-up to Christmas.
02:33 PM GMT
Wall Street mixed ahead of inflation figures
US stock indexes made a lacklustre start to the day ahead of inflation figures this week.
The Dow Jones Industrial Average crept up 0.1pc to 44,341.42 as the rally fuelled by Donald Trump’s impending return to the White House slowed.
The benchmark S&P 500 was little changed at 6,001.26 while the tech-heavy Nasdaq Composite fell 0.2pc to 19,255.75.
02:30 PM GMT
Billionaire real estate magnate loses control of historic UK cinema chain
The US billionaire real estate magnate Charles Cohen has lost control of his upmarket UK cinema chain after an escalating legal battle over unpaid debts.
Curzon, the historic arthouse chain that has 16 venues across the UK, has been snapped up by the US private equity firm Fortress Investment Group.
Terms of the deal were not disclosed, but Fortress reportedly offered $5m (￡3.9m) for the cinema group.
Read how Curzon was put up for auction after Cohen Media Group was ordered by a New York judge to sell off some of its assets.
02:10 PM GMT
Climate groups legal challenge to North Sea oil fields begins
A legal challenge over decisions to approve new oil and gas fields in the North Sea has formally begun at the Court of Session in Edinburgh.
Greenpeace and Uplift have jointly raised a judicial review arguing consent for the Rosebank oil field north-west of Shetland and the Jackdaw oil field off Aberdeen ought to be paused and reassessed.
The former Conservative-led government approved Shell’s proposals to develop the Jackdaw field in 2022 and cleared Equinor and Ithaca Energy’s plans to drill in the Rosebank field last September.
The two environmental groups argue the Government, along with the North Sea Transition Authority (NSTA), failed to consider the full impact of emissions caused by burning oil and gas from the fields.
They also argue their reasons for approving the schemes were not transparent and the development will disrupt a marine protected area.
Ruth Crawford KC, representing Greenpeace UK, told the court that a “substantive error of law” had been made when consent was granted for the two schemes based on limited information on their environmental impact and that the charity was seeking “remedy”.
Shell said Jackdaw is a “vital project for UK energy security” and will provide enough fuel to heat 1.4 UK million homes.
Equinor has similarly said Rosebank is “vital for the UK” in terms of local investment, jobs and energy security.
The case, before Lord Ericht, continues.
01:56 PM GMT
Why the euro is tumbling
The euro has sank to its lowest level against the dollar in seven months amid the threat of tariffs from Donald Trump’s incoming US administration.
The single currency was down as much as 0.5pc against the greenback to $1.0607, the lowest since April.
The euro was 0.2pc higher against the pound at 82.9p after official figures showed weakening wage growth and rising unemployment in Britain.
However it remains close to its weakest point against sterling in two years.
The euro’s weakness is being fuelled by concerns about what Trump’s return will mean for the eurozone economy – and Germany in particular.
Read why experts fear it could get worse.
01:41 PM GMT
Bayer plunges as weedkillers sales wilt
Bayer’s shares plunged to a 20-year low after the German chemicals giant cut its earnings outlook and posted a worse-than-expected loss.
The group vowed to press ahead with its cost-cutting efforts after reporting a loss of €4.2bn (￡3.5bn) in the three months to the end of September, much worse than analysts’ forecasts.
It was weighed down by bad news from its agrochemicals division, including a heavy drop in sales of its glyphosate-based weedkillers, at the centre of long-running legal fights in the United States over claims they cause cancer.
Earnings at the agricultural unit were also hit by a hefty writedown on assets.
Bayer, which also makes pharmaceuticals and consumer health products, saw its shares plunge more than 11pc on the Frankfurt Stock Exchange after reporting its second quarterly loss in a row.
01:14 PM GMT
AstraZeneca puts ￡650m UK investment ‘on hold’ in stand-off with ministers
AstraZeneca has put a ￡650m investment in Britain “on hold” in a stand-off with ministers.
The drugs giant told the Telegraph that proposals to build a new vaccine factory in Liverpool and to upgrade research labs in Cambridge had been paused as it held conversations with the Government about potential “incentives”.
The pharmaceutical giant said ion March that it will spend ￡450m on vaccine production in Speke, Liverpool, building a new green factory which will be powered by renewable energy.
It said it plans to invest a further ￡200m on expanding its presence at its life sciences cluster in Cambridge, with a new facility next to its existing research labs.
However, on Tuesday it confirmed the plans have been delayed.
Asked about the plans by the Telegraph, chief financial officer Aradhana Sarin said: “We’re still in discussions with the government to figure out what type of incentives there may be.
“So we don’t have anything new to report at this time.”
12:53 PM GMT
Germany to hold elections in February as confidence collapses
Olaf Scholz has announced Germany will hold national elections in February as the crisis facing Europe’s largest economy deepens ahead of the impending Donald Trump presidency.
The chancellor announced the snap election a week after the collapse of his coalition government amid pressure from inflation, Russia’s invasion of Ukraine, intensifying competition from China and potential US tariffs.
The ZEW Institute’s investor morale index collapsed today to 7.4 points, down from 13.1 points in October, a much sharper drop than analysts had expected.
ZEW President Achim Wambach said: “The outcome of the US presidential election is likely to be the main reason for this.”
A government with a clear majority would be better able to broach topics like Germany’s debt brake, blamed by many economists for the country’s low investment rate, or to make money available for strategic industries.
Friedrich Merz, leader of the Christian Democrats and favourite under current polls to become chancellor, has so far ruled out scrapping the debt brake.
12:36 PM GMT
Opec expects weaker growth in oil demand next year
The Opec cartel of oil-producing nations has cut its forecast for growth in demand for a fourth straight month after acknowledging a slowdown in China.
The Saudi-led group said oil consumption around the world will increased by 1.8m barrels a day next year, a rise of just under 2pc.
This is 107,000 barrels a day less than previously forecast.
The price of Brent crude, the international benchmark, was marginally higher at about $72 a barrel, having topped $90 in April.
Opec has reduced its demand projections by nearly a fifth since July following the drop in oil prices as the conflicts in the Middle East failed to disrupt supplies and China’s economy has failed to respond to Beijing’s stimulus efforts.
12:09 PM GMT
Interest rate cuts must be ‘gradual’, says Bank of England’s chief economist
High levels of pay growth show that interest rate cuts will likely need to be “gradual”, the Bank of England’s chief economist has warned.
Huw Pill said that relatively strong pay growth, high services prices and low unemployment all suggest “there is still some work to be done” when it comes to the Bank’s job to get inflation to its 2pc target.
The Bank’s Monetary Policy Committee voted to make its second rate cut last week, bringing the Bank Rate to 4.75pc, following a slowdown in inflation from a peak of 11.1pc in October 2022 to 1.7pc in September.
But speaking at a conference hosted by UBS, Mr Pill said: “That does not mean it is job done. From our perspective, there remain some underlying inflationary pressures in the UK economy.”
While the direction of travel is clear for interest rates, cuts are “likely to be a gradual process”, Mr Pill said.
“As we saw in the labour market data that was released this morning, pay growth remains quite sticky at elevated levels, levels that, given the outlook for productivity growth in the UK, are hard to reconcile with the UK inflation target,” Mr Pill said.
Official data on Tuesday also showed that wages (excluding bonuses) rose by 4.8pc in the three months to September.
“And similarly, when you look to services prices, they are stuck at higher rates of inflation than we see in other jurisdictions,” Mr Pill added.
Chancellor Rachel Reeves’ maiden Budget, which raised public spending by ￡70bn, is also a “positive demand shock”, Mr Pill said.
The consumer prices index (CPI) is expected to rise above 2pc in the coming months, particularly as the October energy price cap rise pushes up people’s bills.
11:51 AM GMT
Wall Street poised to dip after Trump rally
US stock indexes fell in premarket trading ahead of inflation data later this week, which could indicate when interest rates will next be cut.
The three major indexes notched record high closes on Monday as investors broadly expect President-elect Donald Trump’s proposed tax cuts and expectations of easier regulatory policies to help stocks.
Some of the companies expected to perform well under Trump’s presidency gave back gains. Tesla, which has soared nearly 40pc since the election night, fell 5pc in premarket trading.
The small-cap Russell 2000 fell 0.8pc in premarket trading after the index closed at a three-year high on Monday. Trump Media & Technology Group lost 6.7pc.
Some crypto stocks eased after gaining in the past few sessions, even as bitcoin neared the $90,000 mark. Coinbase Global fell 7.2pc, and bitcoin miners MARA Holdings and Riot Platforms dipped 6.5pc and 6.8oc, respectively.
Focus will now be on Wednesday’s consumer price inflation data, the first of several releases this week that will provide direction to the US Federal Reserve.
John Velis, Americas macro strategist at BNY, said: “We currently expect the Fed to enact another quarter-point rate reduction in December, this view is subject to decent readings on inflation between now and December 18.”
In premarket trading, the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were all down about 0.1pc.
11:22 AM GMT
Britain employs record 7m foreign-born workers
A record 7m foreign-born workers are employed in Britain, following a surge in migration since the pandemic.
The number of workers born overseas has risen by 1.2m since the pandemic from 5.8m at the end of 2019, figures published on Tuesday by the Office for National Statistics (ONS) showed.
The increase was driven by a rise in the employment of people born outside the EU by just over 1.4m. The number of EU-born workers fell by 231,000 to 2.2m over the same period.
Read how it follows a surge in migration since the pandemic.
11:08 AM GMT
FTSE 100 slump deepens amid Trump fears
The FTSE 100 has fallen further as markets consider the impact of potential tariffs on China under Donald Trump’s impending presidency.
The blue-chip index was down 1pc - with 91 out of its 100 members in the red - while the midcap FTSE 250 fell 0.9pc.
Stocks have been hit by Mr Trump’s likely choice of US Senator Marco Rubio to be his Secretary of State, who is known for his aggressive stance on China.
Steven Leung, an executive director at UOB Kay Hian, said: “The market is now worrying that there will be more rapid negative China policy emerging from the Trump administration with his new cabinet picks.
“Their hawkishness could be more than expected.”
The sell-off has spread across Europe, with the Cac 40 in Paris down 1.3pc and the Dax in Frankfurt falling 0.9pc.
10:42 AM GMT
UK tech darling returns SoftBank to profit
Japanese technology group SoftBank swung back to profitability as it was boosted by royalties from its investment in UK-tech unicorn Arm.
Tokyo-based SoftBank Group, which has stakes in tech companies like Arm and Nvidia - said it made a fiscal second quarter profit of nearly 1.2 trillion yen (￡6bn), compared with a 931bn yen (￡4.7bn) loss in the year-earlier period.
Quarterly sales edged up about 6pc to nearly 1.77 trillion yen ($11.5 billion) in the three months to September as it was boosted by positive results in its Vision Fund investments.
SoftBank credited income from royalties and licensing related to its holdings in Arm, the Cambridge-based computer chip-designing company, whose business spans smartphones, data centres, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
10:22 AM GMT
Metro Bank failed to check ￡51bn worth of transactions for money laundering
Metro Bank failed to correctly check ￡51bn worth of transactions for potential money laundering and financial crime, the City watchdog has said.
The Financial Conduct Authority (FCA) today imposed a ￡16.7m fine on the bank for money-laundering failures. The regulator said Metro failed to have the right anti-money laundering controls in place to monitor more than 60m transactions over a span of four years. The value of the transactions that were not properly monitored totalled ￡51bn, the watchdog said.
Junior staff raised concerns about data not being monitored on two occasions after the system was installed in 2016, according to the FCA. However, the issue was not fully fixed until 2020.
Metro had automated the monitoring of customer transactions for potential financial crime in June 2016, but that the system did not work properly.
A critical error in how data was fed into the system meant transactions taking place on the same day an account was opened – and any further transactions until the account record was updated – were not monitored.
Metro Bank’s fine would have totalled ￡23.8m but it qualified for a 30pc discount after it agreed to resolve the matter.
Therese Chambers, joint executive director of enforcement and market oversight, said: “Metro’s failings risked a gap being left in our defence against the criminal misuse of our financial system. Those failings went on for too long.”
Metro Bank said it had cooperated fully with the FCA and accepted the findings. It added that the company had since resolved transaction monitoring system failings and made enhancements.
10:04 AM GMT
Vodafone faces ￡10m hit from Budget tax raid
Vodafone is facing a ￡10m jump in its wage bill following Rachel Reeves’s Budget tax raid.
The telecoms giant said it expected the increased costs after the Government raised the rate of national insurance contributions and lifted the national minimum wage.
Margherita Della Valle, chief executive of Vodafone, said the tax rise was “not material” given most of the group’s employee base of 90,000 is outside the UK.
Nevertheless, these costs are likely to balloon further following Vodafone’s ￡15bn merger with Three, which will create the UK’s largest mobile network. The companies have said the tie-up will create up to 12,000 jobs and have pledged investment of ￡11bn.
The Competition and Markets Authority (CMA) last week signalled that Vodafone and Three will be given the red light for the merger despite concerns that the deal could push up prices.
Ms Della Valle said she was “absolutely convinced” that the merger was still the right plan despite the Budget tax rises. She added: “The UK has potential, as long as we as telecom operators can have sufficient scale to be effective in the market.”
It came as Vodafone posted a 4.8pc rise in revenues in the first half of the year to €15.1bn, with an ongoing slowdown in Germany offset by growth elsewhere in Europe, in Africa and Turkey.
09:50 AM GMT
Vodafone sends weak signal as TV and rent bundles banned
Vodafone shares dropped as it reported a bigger than expected fall in service revenue in Germany following a change in the law.
The telecoms giant said service revenue rose 1.7pc year-on-year to €15.1bn (￡12.5bn) in the first half of the year despite a slump in its biggest market, where housing associations have been barred from bundling TV with rent.
Vodafone shares fell as much as much as 5.5pc after it said service revenue in Germany fall 6.2pc last quarter following the regulatory change.
Vodafone said it expects to complete its tie up with Three UK early next year, as it waits for a final decision on the deal from the competition regulator on December 7.
The Competition and Markets Authority is investigating the deal, which would create the largest mobile operator in the UK, but has indicated it is likely to get the green light.
“We will continue to constructively engage with the CMA and remain confident that we can work with them to secure approval,” Vodafone said.
The merger forms a part of chief executive Margherita Della Valle’s turnaround plan at the company, which also includes selling businesses in Italy, Spain and other countries.
Vodafone said it reported an operating profit of €2.4bn (￡2bn) in the half ending September, up 28.3pc year-on-year, mainly driven by the profit from setting an 18pc stake in the Indian telecoms firm Indus Towers.
09:30 AM GMT
FTSE 100 falls amid Trump tariff fears
The FTSE 100 has fallen amid broad-based losses across Europe as markets considered the implications of Donald Trump’s policies.
The blue-chip index was down 0.7pc - with 91 out of its 100 members in the red - while the midcap FTSE 250 fell 0.8pc.
Stocks have been hit by Mr Trump’s likely choice of US Senator Marco Rubio to be his Secretary of State.
Mr Rubio is known for his aggressive stance on China, which the President-elect said would face tariffs of 60pc on goods entering the US.
Mexican miner Fresnillo was the biggest faller on the index as it warned of “operational difficulties” at its Sabinas mine.
Gold prices were down another 0.7pc today, having fallen more than 5.5pc since Mr Trump’s victory, while silver dropped 1pc.
Drax Group surged as much as 7.6pc to the top of FTSE 250 after it said it expects profits to be at the top end of estimates.
09:07 AM GMT
AstraZeneca announces $3.5bn investment in US after Chinese executives arrested
Drugmaker AstraZeneca announced a major US investment a week after the detention of senior executives in China cast a cloud over strong demand for its cancer and rare diseases medicines.
The London-listed company lifted its annual sales and profit forecast for the second time this year as its third-quarter results beat analyst estimates.
It doubled down on the United States, announcing $2bn (￡1.6bn) in new spending on research and development and manufacturing plants, bringing the total it will invest to expand its footprint in the country to $3.5bn (￡2.7bn) by the end of 2026.
Some $2bn of that investment, announced for the first time today, will expand manufacturing facilities in Maryland, Texas and in California, it said.
It comes a week after the company said its China president Leon Wang had been detained by Chinese authorities and it did not know why.
It was reported by Chinese state-owned news organisation Yicai that “dozens of senior executives” had been “implicated in an ongoing insurance fraud case”.
Chief executive Pascal Soriot said: “We take the matters in China very seriously.”
Shares rose as much as 3pc in early trading before reversing course. They were last flat. Shares have fallen about 17pc in the past three months, reflecting market unease with the company’s business in China amid multiple investigations by national authorities.
08:41 AM GMT
Drax surges as low winds boost demand for biomass
Drax shares surged to their highest level this year as it revealed it has benefitted from the low winds and cloudy weather that has impacted renewable energy producers.
The power company, which operates a tree-burning power station in the UK, said the retirement of coal power stations and “increased reliance on intermittent renewables” will grow the need for its flexible power services.
Shares rose 7.1pc in early trading to the highest point since February 2023 as it said its flexible generation and biomass businesses are “making good progress” towards its target to deliver underlying profits of more than ￡500m after 2027.
In recent weeks, Britain and Europe have been hit by low winds and foggier weather which has impacted power generation from wind farms and solar panels in a phenomenon known as “dunkelflaute”.
Drax said profits for the full year would be around the top end of analysts’ estimates.
Analysts at Longspur Research said: “Key to this has been recent low wind in the Uk with wind developers we have spoken to seeubg wind output below budget for each of September, October and November to date.
“This has benefited all Drax’s flexible capacity ad both the pumped storage and hydro business but also the biomass generation business.”
Chief executive Will Gardiner said: “We continue to deliver a strong operational performance, supporting the UK energy system with dispatchable, renewable power, keeping the lights on for millions of homes and businesses, while supporting thousands of jobs throughout our supply chain.”
08:20 AM GMT
Pound drops amid rising unemployment
The pound has fallen to a three-month low after official figures showed an increase in unemployment in the run-up to Rachel Reeves’s tax-raising Budget.
Sterling has dropped 0.5pc against the dollar to $1.28, its lowest since August, and was down 0.3pc against the euro, which is worth 83p.
It comes as unemployment rose to 4.3pc in the three months to September, while wages grew at the slowest pace in more than two years.
Paul Dales, chief UK economist at consultancy Capital Economics, said: “The easing in private sector regular pay suggests that the Bank of England will continue to cut interest rates gradually.”
“There is little here to suggest the Bank needs to worry that the loosening in the labour market and the easing in underlying wage growth are coming to an end.”
08:09 AM GMT
UK markets fall amid doubts over Trump impact
The FTSE 100 dropped at the open amid concerns about the impact of Donald Trump on global trade.
The UK’s blue-chip index fell 0.5pc to 8,084.49 while the midcap FTSE 250 was down 0.6pc to 20,602.04.
Mr Trump is expected to appoint Marco Rubio - known for his aggressive stance on China - as US Secretary of State.
08:02 AM GMT
Shell defeats climate activists in landmark court battle over emissions
Shell has won an appeal against a landmark climate ruling in the Netherlands that would have forced the oil and gas giant to radically cut back its greenhouse gas emissions.
The appeals court in The Hague dismissed the entire 2021 ruling on Tuesday, saying Shell was already on its way to meet required targets for its own emissions. The court added that it was unclear if demands for Shell to reduce emissions caused by the use of its products would help the fight against climate change.
The original ruling had ordered Shell to cut its absolute carbon emissions by 45pc by 2030 compared to 2019 levels, including those caused by the use of its products.
The initial judgement was seen as a significant blow to both Shell and the broader oil and gas industry as it was the first time a company had been legally obliged to align its business with the UN’s 2015 Paris climate accords.
Friends of the Earth bought the initial case in 2019 alongside other campaign groups and Dutch citizens.
The appeals court did agree with the climate activists that Shell has an obligation to cut its greenhouse gas emissions to protect people from global warming.
07:54 AM GMT
Firms forced to raise prices and put recruitment on hold, says BCC
Jane Gratton, deputy director of public policy at the British Chambers of Commerce said:
The small uptick in unemployment and decline in payrolled employees suggests some further loosening of the labour market. Businesses will welcome a further fall in the rate of inactivity.
07:37 AM GMT
Pay growth slow in run-up to Budget tax rises
Regular pay excluding bonuses rose at its slowest pace in two years in the three months to September, with real pay flat.
Real pay - which takes into account the impact of inflation - rose 2.7pc over the period, according to the ONS.
This was the same as the three months to August and the joint lowest since March.
07:29 AM GMT
Lowest-paid workers will benefit from rising minimum wage, says Kendall
After the drop in job vacancies and rise in unemployment, Work and Pensions Secretary Liz Kendall said:
2.8 million people - a near record number are locked out of work due to poor health. This is bad for people, bad for businesses and it’s holding our economy back.
07:26 AM GMT
Vacancies have been falling for more than two years, says ONS
ONS director of economic statistics Liz McKeown said:
Growth in pay excluding bonuses eased again this month to its lowest rate in over two years.
07:18 AM GMT
Job vacancies fall to three-year low as bosses brace for tax rises
The number of job vacancies fell to the lowest level in three years, official figures show, as bosses prepared for a tax raid in Rachel Reeves’s Budget.
The estimated number of vacancies in the UK in the three months to October was 831,000, which was a decrease of 35,000 from May to July, according to the Office for National Statistics.
It was the lowest number of vacancies since the three months to May 2021.
It comes as bosses braced for an increase in their costs in the Chancellor’s Budget, which put up taxes by ￡40bn.
The number of foreign-born workers employed in the UK hit 7m for the first time between July and September, the ONS said.
That represents an increase of 183,000 since Labour came to power, and is up by 1.2m, from 5.8m, since the eve of the pandemic.
Wages rose at the slowest pace in more than two years, with regular pay excluding bonuses dropping to 4.8pc in the three months to September.
It was slightly higher than the 4.7pc expected, while total pay including bonuses rose from 3.8pc to 4.3pc.
The rate of UK unemployment rose to 4.3pc in the three months to September, up from 4pc in the three months to August.
07:16 AM GMT
Good morning
Thanks for joining us. The number of job vacancies fell to the lowest level in three years, official figures show, as bosses prepared for a tax raid in Rachel Reeves’s Budget.
Vacancies in Britain fell to an estimated 831,000 in the three months to October, which was the lowest since the three months to May 2021.
5 things to start your day
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Shops and restaurants to cut opening hours after National Insurance raid | Tax rises threaten to turn high streets into ‘ghost towns’ as businesses grapple with higher costs
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Remote staff sleep longer and work less, says ONS | Analysis reveals home workers get extra 24 minutes of rest per day compared to office goers
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Star fund manager Terry Smith takes pay cut as profits slide | Stockpicker pins underperformance on decision against investing in all major tech companies
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Charities threatened by botched National Lottery upgrade | Fundraising forecasts in doubt as Allwyn struggles to deliver critical technology upgrade
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Council services to decline under Labour despite public sector spending blitz | Extra cash for local authorities to be ‘swallowed’ by minimum wage and National Insurance increases
What happened overnight
Asian shares slumped after unexpectedly weak loan demand in China in October.
Japan’s benchmark Nikkei 225 gained 0.6pc in morning trading to reach 39,774.43, but then slumped 0.4pc to 39,394.62.
South Korea’s Kospi declined 1.9pc to 2,483.66 and Australia’s S&P/ASX 200 lost 0.1pc to 8,255.60.
Meanwhile, Hong Kong’s Hang Seng dropped 3.1pc to 19,795.60. The Shanghai Composite dropped 2pc to 3,402.56.
Chinese banks extended 500 billion yuan (￡53.9bn) in new loans last month, falling sharply from September and trailing analysts’ expectations, according to data released after the close of market hours on Monday.
“Weak loan growth for both households and corporates continues to underscore fragile domestic demand,” analysts at Bank of America said in a note.
US stock markets closed at record highs amid the clamour for so-called “Trump trades”.
On Wall Street, the Dow Jones Industrial Average rose 0.7pc, to 44,293, the S&P 500 rose 0.1pc, to 6,001, and the Nasdaq Composite was little changed at 19,298.
In the bond market, the yield on benchmark 10-year US Treasury notes was 4.310pc last night, down from 4.333pc late on Friday.