FTSE 100 was trading flat at 9,282.54 in early afternoon trading, with equity futures pointing to the Wall Street indices opening higher.
J Sainsbury continued to be the biggest riser, up 5.08 per cent, after it decided against the sale of Argos to China’s JD.com.
The British Gas owner Centrica was buoyed by news of an agreement with the US nuclear company, X-energy, to build a fleet of 12 advanced modular reactors in Hartlepool, where it already operates a nuclear plant. The shares are up 3.09 per cent.
BT Group was the biggest faller after the Indian billionaire Sunil Bharti Mittal and Gopal Vittal, the vice chairman and managing director of Bharti Airtel, joined the board as “non-independent, non-executive directors”. Bharti Airtel owns a 24.5 per cent stake in the British telecoms group. The shares fell 2.43 per cent.
AstraZeneca, which on Friday paused a planned £200 million investment in its Cambridge research site, dealing the latest blow to the government’s life sciences strategy, fell 2.37 per cent.
Musk buys shares in response to $1 trillion pay deal
Elon Musk responded to the Tesla board’s proposed $1 trillion pay deal by buying about $1 billion worth of shares in the electric carmaker.
The billionaire acquired the shares indirectly through a revocable trust on Friday, according to a regulatory filing released today.
Earlier this month, Tesla’s board proposed a new compensation deal for Musk valued at about $1 trillion, the largest in corporate history. Pope Leo condemned the huge wages earned by top chief executives, citing Elon Musk’s possible rise to trillionaire status as a concern in his first interview since being elected in May.
Tesla shares rose as much as 7 per cent in premarket trading.
Aldi UK chief warns new taxes will cause food costs to rise
The UK chief executive of Aldi, the German discounter, has become the latest retail boss to warn the government over introducing new taxes which will “find their way” onto supermarket shelves.
Giles Hurley said inflationary pressures affecting shoppers were “persistent and urgent”. He added the retail industry “has been really clear that we would strongly advise that any policies and measures that are adopted don’t add costs to business operations because of the risk that they can find their way through to the food sector”.
Hurley’s intervention follows warnings from a string of large retailers that rising costs — mainly employer national insurance contributions and new packaging taxes — are fuelling inflation.
Figures showed Aldi’s operating profits in the UK and Ireland fell by about a fifth to £436 million from £553 million the year earlier, despite a slight rise in total sales to £18 billion.
Tolerate inflation to offset tariff damage, Fed urged
The US Federal Reserve could mitigate the economic damage caused by tariffs by not raising interest rates in response to higher inflation, the Bank for International Settlements (BIS) has suggested.
The bank, known as the central bank of central banks, noted that the current US tariffs, the highest since the 1930s, are expected to increase inflation by 3 per cent and reduce economic growth by 1 per cent over the next year.
However, if the Federal Reserve tolerates the inflationary impact, the economic loss over three years could be reduced significantly, from 1.6 per cent of GDP to just 0.1 per cent of GDP.
• Read the full story: Fed should tolerate high inflation to ease tariff effects, says BIS
Furlough scheme keeps bus maker in Scotland
An employee works on the chassis of an Enviro400 bus in a workshop owned by Alexander Dennis in Scarborough
PAUL THOMAS/GETTY IMAGES
Alexander Dennis will continue to build buses and coaches in Scotland after the government pledged £4 million towards a furlough scheme.
The scheme, the first of its kind to receive Scottish government backing, will avoid Alexander Dennis pulling out of the country and consolidating its operations at a single site in Yorkshire with the loss of 400 jobs.
John Swinney, the first minister, said the furlough scheme will kick in when the company signs a new order and will act as a “bridge to the future”, supporting staff between the signing of a deal and the beginning of work.
Under the agreement, 80 per cent of wages will be covered by the Scottish government, while the company will pay the remainder, with the scheme funded for up to six months.
US and China manoeuvre as trade talks resume
The US-China TikTok agreement could hinge on Chinese demands for trade concessions
CFOTO/FUTURE PUBLISHING VIA GETTY IMAGES
The United States and China are close to reaching an agreement on the social media app TikTok, but a deal could hinge on Chinese demands for trade concessions, Scott Bessent, the US Treasury secretary, said ahead of a second day of trade talks in Madrid.
The latest round of negotiations — the fourth in four months — is taking place at the baroque Palacio de Santa Cruz, home to Spain’s foreign ministry. The first day on Sunday concluded after about six hours with no indication of a breakthrough.
China’s market regulator said a preliminary investigation had found that the American AI chipmaker Nvidia had violated the country’s anti-monopoly law. The State Administration for Market Regulation did not elaborate.
Rheinmetall to buy Lürssen warship division
A Panther KF51 main battle tank at the Rheinmetall artillery munitions factory in Unterluess, Germany
MORRIS MACMATZEN/GETTY IMAGES
The German defence group, Rheinmetall, is buying rival Lürssen Group’s warship division, NVL, to expand its activities in Europe as governments ramp up military spending.
NVL, which employs about 2,100 staff globally, is a privately owned group with four shipyards in northern Germany as well as international locations.
The companies agreed not to disclose the purchase price for NVL, it said, adding they aim to complete the transaction early next year, subject to regulator approval. Analysts at Jefferies said that NVL was generating double-digit margins, suggesting a takeover price of €1.5 to €2 billion.
Rheinmetall has benefited from higher defence spending as European countries have invested in defence capabilities since Russia’s 2022 full-scale invasion of Ukraine. Germany alone is expected to spend about €31 billion on naval vessels by 2035, Rheinmetall said.
Its shares rose 1.9 per cent to the top of Frankfurt’s DAX index.
BT shares fall as tycoon joins board
The appointment of the Indian billionaire Sunil Bharti Mittal and Gopal Vittal, the vice chairman and managing director of Bharti Airtel, to BT’s board as “non-independent, non-executive directors” is weighing on the telecoms group’s shares.
BT shares are down 3.8 per cent, or 7.8p, to 197.90p in morning trade.
The move will give him greater oversight over the telecommunications group’s daily operations.
When the Indian tycoon agreed to buy almost a quarter of Britain’s biggest telecoms group from Patrick Drahi last year, he urged BT management to be “bolder”. At the time, Mittal said he had no intention of making an offer to acquire BT under the City takeover code. He also said he backed BT’s strategy and management and had not asked for a board seat.
Orsted prices rights issue at 67% discount
The sea turbines on Burbo wind farm, owned by Orsted, off the UK coast
PETER TITMUSS/GETTY IMAGES
The world’s biggest offshore wind farm developer has priced its $9.4 billion rights issue at a 66.7 per cent discount to the closing share price on Friday.
Orsted said it was raising the funds at 66.6 Danish krone (£7.7) a share as it published its prospectus today. The company, which currently has 420 million shares outstanding, plans to add 901 million new shares in the rights issue. It said: “We intend to raise capital to cover the additional funding requirement related to Sunrise Wind and create a robust financial foundation for Orsted to realise the potential of our business.”
Two thirds of the new capital is earmarked for Sunrise Wind. Orsted has blamed the Trump administration for its decision to raise the funds. It said the “unprecedented” move by the US administration to halt construction of Equinor’s Empire Wind project off the coast of New York in April had spooked would-be investors in its own neighbouring Sunrise Wind project.
The shares, which closed at DKr200.25 (£23.18) at the end of last week, fell 2 per cent, to DKr196.20 (£22.72) today. The shares have more than halved over the past year.
IG chairman Mike McTighe to step down
The online trading platform said its chairman, Mike McTighe, plans to step down by the end of 2025 after five years in the role.
McTighe, 71, who took up the role in February 2020, will stand for re-election at the annual general meeting on September 17. The process for appointing a successor is under way.
“With solid foundations laid for stronger growth, I am confident that under Breon Corcoran’s leadership, IG will go from strength to strength,” McTighe said. IG shares edged up 1p, or 0.09 per cent, to £11.58.
S4 Capital shares fall as tech clients spend on AI
S4 Capital shares have fallen more than 10 per cent this morning after Sir Martin Sorrell’s digital marketing group cut its annual forecast for the second time this year.
The shares fell 2½p to 20½p after the company said volatile global macroeconomic conditions, along with the unsettling effect of tariff negotiations, had left clients cautious. It added that “technology clients, which account for almost half our revenue, in particular, are continuing to prioritise capital expenditure on expanding AI capacity”.
The S4 board said it would consider approving an enhanced final dividend for 2025, if the improved second-half performance and liquidity targets are delivered.
FTSE 100 flat in early trading
London’s leading share index is trading flat this morning with little corporate news and investors focused on an expected US Federal Reserve interest rate cut on Wednesday.
The FTSE 100 has dipped 3.58 points, or 0.05 per cent, to 9,278.99, having traded sideways after hitting a closing high of 9,321.40 on August 22. The FTSE 250 was up 36 points, or 0.17 per cent, to 21,665.21.
The pound is up 0.2 per cent against the dollar at $1.3580 while the yield on the benchmark ten-year UK government bond edged 1 basis point lower to 4.66 per cent.
J Sainsbury was the biggest riser, up 3.45 per cent, after it rejected an offer from China’s JD.com for Argos.
BT Group was the biggest faller, down 2.42 per cent, after the telecommunications company said the Indian billionaire Sunil Bharti Mittal and Gopal Vittal, the vice chairman and managing director of Bharti Airtel, are to join its board as “non-independent, non-executive directors”. Bharti Airtel owns a 24.5 per cent stake in BT.
Fall in Aldi operating profits
Aldi plans to invest a further £1,6 billion in its supermarket expansion and open 80 new stores over the next two years
JASON ALDEN/GETTY IMAGES
The privately owned German discounter reported that operating profit at its UK division fell to £435.5 million in 2024, down from £552.9 million a year earlier. Aldi partly attributed the fall to its spending on lowering prices for customers and raising pay for staff.
Revenue over the period increased to £18.1 billion, up from £17.9 billion.
Giles Hurley, Aldi’s UK and Ireland chief executive, said that shoppers were “still finding things difficult”. The chain announced plans to invest a further £1.6 billion in its UK supermarket expansion. It plans to open 80 new stores over the next two years.
AO World raises full-year profit forecast
The electricals retailer has nudged up its full-year profit forecasts for the current year ahead of its annual general meeting today and unveiled plans for its first-ever share buyback.
It now expects full-year profits of between £45 million and £50 million against previous guidance for between £40 million and £50 million. This compares with profits of £45 million for 2024-25, excluding the contribution from its recently acquired musicMagpie business.
AO World plans to buy back shares worth £10 million.
Indian billionaire joins BT board
Sunil Bharti Mittal, the billionaire founder and chairman of Bharti Enterprises
NATHAN LAINE/GETTY IMAGES
The Indian billionaire Sunil Bharti Mittal and Gopal Vittal, the vice chairman and managing director of Bharti Airtel, are to join the board of the FTSE 100 telecoms company as non-independent non-executive directors.
Bharti Global, the international investment arm of Bharti Enterprises, acquired 24.5 per cent of BT shares from Patrick Drahi, the debt-laden media investor, in August last year, making it the largest shareholder in the FTSE 100 company.
Adam Crozier, the BT chairman, said: “We’re delighted to welcome Sunil and Gopal to the board of BT. They bring significant experience and global perspectives in the telecoms industry, and we look forward to their contribution to the board and to the future success of BT.”
Losses widen at Sorrel’s S4 Capital
Sir Martin Sorrell’s digitally focused marketing group S4 Capital warned that full-year revenue would be lower than expected as it announced widening pre-tax losses in the first half of the year.
The company expects annual like-for-like net revenue to be down by mid-single digits from an earlier forecast of low-single-digit decline. Pre-tax losses widened to £25.1 million in the six months to the end of June, from £17.2 million over the same period last year. Revenue over the period fell to £360.4 million, down from £422.5 million.
“Trading in the first half of the year reflects the continuing impact of volatile global macroeconomic conditions,” said S4 Capital, adding that technology clients continued to prioritise capital expenditure on expanding AI capacity.
Beauty Tech Group confirms intention to float
The Beauty Tech Group makes beauty equipment for use at home such as helmets using red light therapy to promote hair growth
BEAUTY TECH GROUP
The maker of LED face masks worn by the likes of Kim Kardashian and Serena Williams has confirmed plans to float in London’s main market.
The business is expected to be valued at up to £350 million, giving the founders, Laurence Newman and Andrew Showman, stakes worth more than £20 million. The pair launched the Beauty Tech Group more than 15 years ago.
The company, initially known as CurrentBody.com, makes beauty equipment for use at home — from red LED masks to reduce wrinkles, to lasers to remove hair and electrical currents to zap spots — and hopes to “take the business to the next level” with the initial public offering (IPO).
US and UK to sign small nuclear power reactor deal
Hartlepool nuclear power station
ALAMY
Ministers are to set out plans to fast-track a new generation of small nuclear power stations in a drive to make the UK a world leader in the technology.
Under a deal to be signed as part of President Trump’s state visit, the UK and US will agree to recognise each other’s safety assessments of the reactors, cutting regulatory approval times in half.
Alongside the deal Centrica, one of Britain’s largest power suppliers, announced an agreement with the US nuclear company, X-energy, to build a fleet of 12 advanced modular reactors in Hartlepool, where it already operates a nuclear plant.
• Read in full: Ministers to fast-track new generation of small nuclear power stations
Stock markets subdued ahead of rate decisions
The Bank of England cut interest rates to 4 per cent in August
PETER DAZELEY/GETTY IMAGES
Asian shares steadied near four-year highs on Monday ahead of interest rate decisions in the United States, Britain, Canada and Japan.
While the Nikkei was shut for a holiday, China’s SSE Composite dipped 0.1 per cent, Hong Kong’s Hang Seng rose 0.2 per cent, and South Korea’s Kospi gained 0.4 per cent to hit another record high after the government scrapped a plan to raise taxes on stock investment.
US and Chinese officials concluded a first day of talks in Madrid on Sunday over their strained trade ties, and will resume them later on Monday.
The FTSE 100 is forecast to open 4 points higher when trading begins shortly. The index fell on Friday after data showed the UK economy posted zero growth in July.
Sainsbury’s in focus after Argos bid rejected
Sainsbury’s said the terms for the offer on the table were “not in the best interest” of stakeholders
NEIL HALL/REUTERS
Shares in Sainsbury’s will be in focus today after the FTSE 100 retailer rejected a revised bid for its Argos business from JD.com, one of China’s biggest retailers, just 24 hours after talks were revealed.
The supermarket chain confirmed on Saturday that it was in late-stage discussions to sell Argos, after a report in The Telegraph. On Sunday, Sainsbury’s said JD.com was not willing to keep negotiating based on the offer on the table and would only continue “on a materially revised set of terms and commitments”. The company ended the talks, saying the terms were “not in the best interest” of stakeholders.
• Read in full: Sainsbury’s ends talks with Chinese suitor JD.com to sell Argos
China’s factory output misses expectations
Industrial output in China grew at the slowest pace in a year in August
GETTY IMAGES
China’s factory output and retail sales growth in August were the weakest in a year, with slowing momentum keeping pressure on Beijing for more stimulus in the world’s second-largest economy.
Industrial output grew 5.2 per cent year-on-year, official figures from the National Bureau of Statistics data showed, the lowest reading since August 2024 and weaker than a 5.7 per cent rise in July. Economists had forecast growth of 5.7 per cent.
Retail sales, a gauge of consumer spending, expanded 3.4 per cent in August, the slowest pace since November 2024, and cooling from a 3.7 per cent rise in last month and forecast of a 3.9 per cent gain.
New home prices also fell in August from the previous month, official data showed , as demand remained, indicating that the housing market remained a drag on growth. The 0.3 per cent fall matched July’s month-on-month decline and extended a weak trend that has persisted since May 2023.