The Bank of England will cut interest rates from May, investment bank Morgan Stanley has said, in a boost to mortgage borrowers.
In a note to clients, the Wall Street giant predicted that policymakers will reduce rates to 4.25pc by the end of next year as food and core goods prices ease.
Analysts also predicted that the UK will be in a technical recession by the end of the year, with the economy shrinking by 0.1pc in 2024 before growing by 1pc in 2025.
The prediction of a cut in May comes a week after the Bank of England’s chief economist Huw Pill said investors were not “unreasonable” to predict a rate cut next summer.
The Bank held interest rates at 5.25pc for the second consecutive meeting at the beginning of the month, having raised them 14 consecutive times from 0.1pc in 2021.
This week, Britain will find out the latest inflation figures for October, with the consumer prices index widely expected to fall below 5pc in a boost for Rishi Sunak.
The Prime Minister promised he would halve inflation by the end of the year, meaning it needed to fall below 5.3pc.
Read the latest updates below.
6:20PMSigning off
Thanks for joining the markets live blog today. Chris Price will be back tomorrow morning but I’ll leave you with some further reading from The Telegraph:
5:34PMEmirates ups the stakes with Riyadh Air with 125-plane order
Competition between airlines flying to Africa, the Middle East and Asia is expected to intensify after Emirates placed a £42bn order with Boeing for 125 planes.
The United Arab Emirates flag carrier already serves 148 airports in 79 countries, but UAE Prime Minister, Sheikh Mohammed bin Rashid Al Maktoum, wants the airline to add more cities and create “new economic corridors” for the nation.
The move preempts Saudia Arabia’s new national airline, Riyadh Air, which is seeking to muscle in on Emirates’ lucrative routes. Riyadh, which expects to launch in 2025, has previously ordered 72 Boeing Dreamliners and has put Tony Douglas, former chief executive of Etihad, in charge. Mr Douglas said today that he would “reveal a sizable order” for smaller, single-aisle aircraft in the coming weeks.
5:02PMHigh interest rates wipe £200m off British Land's assets
High interest rates have wiped nearly £200m off the value of British Land’s portfolio of offices, shops and other commercial properties, writes Riya Makwana.
The value of the commercial landlord’s portfolio, which includes the Broadgate office complex and Paddington Central in London, dropped by 2.5pc in six months to September to £8.8bn.
A rapid rise in interest rates has hit values in the commercial property sector hard, with average London office values dropping by 17.1pc since 2022 according to BNP Paribas.
However, Simon Carter, British Land’s chief executive, said rising rents were offsetting the impact of falling profit values.
Across British Land’s entire portfolio, which includes shopping centre Meadowhall in Sheffield and several retail parks, rents have risen by 3pc.
Mr Carter said: “There is strong demand for good office space. Companies are looking for offices with good sustainability credentials, several amenities in close proximity including restaurants and bars and to be near public transport.”
British Land’s half-year profits rose by 3.4pc to £142m. Shares rose 3pc on Monday.
The company’s stock price has slumped 20pc year to date. In May this year the company was relegated from the FTSE 100, ending its 20-year run in the index.
4:55PMFTSE 100 closes up
The FTSE 100 had a positive day, up 0.89pc to 7,425.83.
AstraZeneca and HSBC were the biggest risers. Astra was boosted by positivity around its plans to bring more cost-effective drugs to the emerging set “miracle” weight loss drugs, popularised by Wegovy. HSBC had earlier today announced that it is to sell its retail, business and wealth management businesses in Mauritius to Absa Group, keeping its businesses focused on mid-size and large companies.
Meanwhile, the FTSE 250 was up 0.34pc to 17,913.65.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “The FTSE 100 has found a dose of Monday motivation amid hopes that peak interest rates have been reached, despite warnings about America’s huge debt pile and ongoing geo-political fracture.”
4:26PMHammerson to sell £1bn stake in Bicester Village owner
Hammerson, the FTSE 250 owner of shopping centres including London’s Brent Cross and Birmingham’s Bullring, is in “detailed talks” to sell its share of Value Retail, owner of the Bicester Village outlet centre, according to Sky News.
Reportedly, Hammerson is in talks with several prospective buyers interested in acquiring its 40pc stake in Value Retail, with an expected sale price of around £1bn.
In addition to Bicester Village in Oxfordshire, Value Retail owns another 11 centres, including in Milan, Madrid and Shanghai.
Hammerson told Sky News: “Value Retail is an attractive portfolio but, as we’ve previously stated, it’s not part of our core proposition to have an investment in a platform.
“We are not forced sellers and will look to maximise our options at the right time.”
4:15PMNext hits 52-week high
Next shares have today hit reached a 52-week high at at 7,504p. The high street retailer has exceptionally effective online, turning its website and app into a destination not just for its own products but those of a wide range of other brands using its so-called Total Platform.
3:57PMVodafone spins out services business as Margherita Della Valle shakes up telecoms group
Vodafone is to spin out its services business as boss Margherita Della Valle looks to shake up the ailing telecoms group and boost income, writes James Warrington.
The telecoms group has set out plans to create a new joint venture with Accenture by spinning out its “shares services” unit. Accenture will take a €150m stake in the new business, dubbed Vodafone Intelligent Solutions.
The department being spun-out provides centralised functions such as procurement, analytics and customer service across Vodafone’s different regions. It also provides services to other telecoms companies in partner markets around the world.
Vodafone hopes the deal will help it to generate more revenues from the services business as it seeks to turn its fortunes around.
It is the latest move by Vodafone chief Margherita Della Valle to overhaul the business and return the group to growth after years of decline.
Ms Della Valle has been seeking to exit underperforming markets and focus on areas where she believes Vodafone can grow revenues.
The company last month sold its Spanish operations for €5bn (£4.3bn) and is looking at options in other markets such as Italy.
In May, Vodafone revealed plans to cut 11,000 jobs and it is also gearing up for a £15bn merger with Three in a deal that will create the UK’s largest mobile network.
Ms Della Valle said on Monday: “Today’s announcement is a significant development for Vodafone as we change and simplify the way we work to better serve our customers and drive growth.
“We’re excited about the potential of our new commercial shared services organisation and the potential to serve not only Vodafone’s own markets but our telco partners across the industry.”
However, Karen Egan, head of mobile at Enders Analysis, raised doubts over how much new business the services division would be able to win.
She said the move was primarily a way of financing the large amount of work Accenture will do to reorganise the services business, as well as simplifying the group for any future sales.
Julie Sweet, Accenture chairman and chief executive, said: “We are excited to take our partnership to a new level with this ground-breaking joint venture that will help power Vodafone’s reinvention and create significant value for their operating companies, partner markets and employees.
“This move speaks to their ambition to work in entirely new ways, reduce structural complexity, open avenues for growth, create better experiences for their customers and provide additional career paths for their people.”
3:49PMFormer management consultant appointed Chief Secretary to the Treasury
Britain’s new Chief Secretary to the Treasury is a former management consultant at Booz and Company (now PwC) and a former consultant at Portland, one of London’s top public relations companies. She was Head of Strategic Communications in Downing Street during David Cameron’s administration and has been Parliamentary Under-Secretary of State in the Department for Work and Pensions since October 2022.
3:38PMNHS IT provider hit by healthcare budget squeeze as shares fall by a fifth
A technology supplier to the NHS has warned that an IT budget squeeze at the health service is hitting revenues as its shares fell by a fifth, writes Matthew Field.
Kainos, the FTSE 250 company which helped build the NHS App, reported that its healthcare revenues had slumped by nearly a third in the first half of the year.
The Belfast-headquartered company blamed a slowdown in technology spending following the coronavirus pandemic.
Its health sector revenues fell by 32pc to £20.5m in the six months to the end of September, down from £30.2m the previous year.
The company warned that NHS customers were suffering from “post-pandemic budget constraint” while internal restructuring - with NHS Digital merging with NHS England - had slowed down spending.
Despite the pullback, the company said it did not expect further falls in healthcare sales.
Shares in Kainos, which is valued at more than £1bn, slumped 22pc to 961p. The company’s stock is down by more than a third this year.
The pressure on NHS IT upgrades comes as health service officials face further demands to boost productivity, drafting in consultants from McKinsey to advise.
Jeremy Hunt, the Chancellor, is reportedly demanding an increase in public sector efficiency of 0.5pc per year to create room for tax cuts, according to The Times.
The NHS is already struggling with a record backlog, with 7.8m patients on wait lists for treatments.
Strikes over pay have compounded problems as trusts splash out on costly temporary staff and stand-in consultants to fill gaps.
In its half-year results, Kainos reported a 7pc increase in revenues to £193.2m, while profits before tax rose 11pc to £30.9m. However, overall bookings fell by 9pc.
3:32PMHanding over
I’m heading off now but my colleague Alex Singleton will make sure you stay up to date as you head into the evening.
There’s just time for a quick look at the markets, which have been fairly tepid ahead of inflation figures in the US and UK this week.
The pound remains 0.2pc higher against the dollar at $1.22, and it is up 0.2pc against the euro, which is worth 87p.
Brent crude is still trading just above $82 while the FTSE 100 has gained 0.6pc so far today. The FTSE 250 is up about 0.1pc.
3:23PM‘Zombie’ power projects to be ejected from Grid connection queue within months
The National Grid has been handed new powers to tackle the logjam in grid connections, with “zombie” energy projects set to be ejected from the queue within months.
Our special correspondent Matt Oliver has the details:
The Grid’s electricity system operator (ESO) has confirmed it will scrap the existing “first come, first serve” queue system for connections and warned companies it would be “uncompromising” in rooting out schemes that are holding up others.
The reforms are aimed at speeding up the rollout of green energy projects across Britain, amid mounting concern that many face overly long waits to connect to the electricity grid.
Developers behind wind and solar farms have complained they have been given connection dates in the 2030s, even though they could be ready much sooner.
Read how many projects in the backlog are at “high risk” of not being ready.
3:03PMWall Street banks disagree over path for US interest rates
Two of Wall Street’s biggest banks are at odds over what they think will happen with US interest rates in the near future.
Morgan Stanley researchers think the Federal Reserve will begin cutting interest rates in June next year.
They think the Fed will the cut rates again in September and every meeting from the fourth quarter onward to bring rates down to 2.375pc by the end of 2025.
However, Goldman Sachs believes the first quarter point rate cut in the US will not come until the fourth quarter, with one cut per quarter until mid-2026, taking rates to the target range of 3.5pc to 3.75pc.
The US Federal Reserve has held interest rates steady at 5.25pc to 5.5pc for its last two meetings.
Manchester Airport returns to pre-pandemic passenger numbers
Passenger numbers at Manchester Airport Group (MAG) returned to pre-pandemic levels for the first time in October as passengers made the most of the half-term getaway.
MAG, which owns and operates Manchester, London Stansted and East Midlands Airports, served 5.6m passengers overall across the month.
Manchester Airport itself carried 2.6m passengers during the month - also surpassing pre-pandemic levels for the first time.
London Stansted became the first major airport to exceed 2019 volumes back in July and recorded 2.6m passengers in October, beating its previous record set in 2018.
Wall Street falls at the open
US markets slumped to start a week that includes new data on inflation and how retailers are holding up, as well as a meeting between President Joe Biden and Chinese leader Xi Jinping.
The Dow Jones Industrial Average fell 0.2pc to 34,230.48 while the S&P 500 slipped 0.3pc to 4,402.41.
The tech-heavy Nasdaq Composite was down 0.4pc to 13,740.04.
2:21PMBarclay named Environment Secretary in Cabinet reshuffle
Rishi Sunak is continuing with his Cabinet reshuffle, with Steve Barclays moved from Health Secretary to the role of Environment Secretary, where he will “back our British farmers”.
Follow the latest on the reshuffle here.
2:05PMTata Steel axes 800 jobs in the Netherlands
Steelmaking giant Tata Steel has announced it will scrap 800 jobs at its under-pressure plant in The Netherlands to “improve market conditions and bring down costs.”
The company said:
The steel market has been in dire straits for some time.
In order to remain structurally competitive and profitable now and in the future, Tata Steel Netherlands is taking significant measures, including a reduction of 800 jobs in IJmuiden.
Southern England being prepared for massive solar farm expansion
Farmland equivalent to 40,000 football pitches could be turned into industrial solar farms across southern England under plans by Ofgem to boost green electricity generation close to London.
Our environment editor Jonathan Leake has the details:
Ofgem suggests 20 gigawatts of electricity could be generated by new solar farms across the Home Counties and East Anglia, meaning the installation of up to 60m industrial solar panels.
Another 4-6GW would come from onshore wind farms, comprising 2-3,000 wind turbines, also in the Home Counties and the South.
The total output would roughly equate to 13 nuclear power stations.
The proposal could cut CO2 emissions, reduce bills and boost energy security for the South, but solar farms take up 2,500 acres of land for each gigawatt of power.
Read how the UK could divided into seven pricing zones.
Wall Street titans to fly in for UK investment conference in boost for Sunak
The bosses of some of Wall Street’s biggest financial institutions will jet into London this month for an investment summit hosted by Rishi Sunak.
JP Morgan boss Jamie Dimon, Goldman Sachs chief executive David Solomon and Blackstone head Stephen Schwarzman will join more than 200 business leaders at the Global Investment Summit.
Mr Schwarzman will join the Prime Minister for a keynote panel discussion on the importance of investing in skills and technology as part of the event, which will also be attended by Aviva boss Amanda Blanc, Iberdrola chairman Ignacio Galán and fashion entrepreneur Anya Hindmarch.
The conference is the first investment summit held in Britain since Boris Johnson hosted a gathering in 2021, which the Government claimed raised £9.7bn.
It comes hot on the heels of the AI Safety Summit, to which the star attraction was Tesla and SpaceX chief executive Elon Musk, in a boost to Mr Sunak as he reshuffles his Cabinet.
He has sacked Suella Braverman as Home Secretary, replacing her with James Cleverly, who in turn has been replaced as Foreign Secretary David Cameron in a startling political comeback.
Business and Trade Secretary Kemi Badenoch, who will co-host the investment summit, said: “The UK is a top global investment destination, but we need to pull out all the stops to stay at the front of the pack.”
Morgan Stanley says S&P 500 to break 4,500 this year
Morgan Stanley has said it expects the S&P 500 to end 2024 at 4,500, and predicted earnings recovery through the year.
The target represents a 2pc increase from current levels. The index on Friday closed 1.6pc higher at 4,415.24.
Strategists at the brokerage led by Michael Wilson expect a 7pc uptick in earnings per share (EPS) for index companies next year, along with a 4-5pc revenue growth and “modest” margin expansion amid easing labour costs.
However, near-term earnings headwinds will persist into early next year before a “durable” recovery takes hold, Mr Wilson said.
12:46PMDeals regulator records deficit as takeovers dry up
The body which regulates company acquisitions in the UK has recorded its first financial deficit in several years after a large decline in the number of deals being sealed.
The Takeover Panel, which is funded by a levy on deals, said it had a deficit of £3.8m after interest and tax during the last financial year. It was down from a surplus of £1.7m a year earlier.
The body said that in the second part of the year - the six months to March - there was a “significant decline” in the flow of deals in the UK.
It blamed “a difficult economic environment and challenging debt markets” for the issue.
It said that there had been 48 firm offers in the year as a whole, 12 of which were valued at above £1bn. None of the billion-pound deals were announced in the second half of the year.
Chairman Chris Saul said the start of the year to March 2024 “has shown some increase in activity although it is not yet clear how strong or sustained this will be”.
12:10PMOpec raises predictions for oil demand as it blames falling price on 'speculators'
The Opec cartel of oil producing nations has said crude market fundamentally remains strong and blamed speculators for the recent drop in prices.
In its monthly report, Opec slightly raised its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.
Oil has weakened to just under $82 a barrel for Brent crude from a 2023 high in September near $98.
The weakness in the price has been triggered by concerns about economic growth, despite support from supply cuts by Opec and its allies, as well as conflict in the Middle East.
Opec said the market was healthy despite “exaggerated negative sentiments”, pointing to strong Chinese imports, minor downside risks to economic growth and a robust physical oil market.
It said: “Recent data confirms robust major global growth trends and healthy oil market fundamentals. Oil prices have trended lower in recent weeks, mainly driven by financial market speculators.”
In the report, OPEC nudged up its forecast for world oil demand growth in 2023 to 2.46m barrels per day (bpd), up 20,000 bpd from the previous forecast. In 2024, OPEC sees demand rising by 2.25m bpd, unchanged from last month.
Wall Street shaky ahead of inflation figures
US stock indexes are expected to edge lower at the opening bell as investors await inflation data later this week.
The benchmark S&P 500 and the blue-chip Dow closed at near eight-week highs on Friday, while the tech-heavy Nasdaq Composite hit a two-month peak as megacap stocks rallied on the back of easing Treasury yields.
Investors will focus on swathes of economic data this week as well as speeches from Fed officials for signs on the direction of interest rates.
US inflation data on Tuesday is expected to show headline consumer prices eased to 3.3pc in October from 3.7pc in September. However, core rates are seen unchanged from the previous month.
Moody’s also lowered its outlook on the US credit rating to “negative” from “stable”, pointing to large fiscal deficits and a decline in debt affordability.
The move follows a rating downgrade of the sovereign by another ratings agency, Fitch, this year.
In premarket trading, the Dow Jones Industrial Average was down 0.1pc while the S&P 500 had slumped 0.2pc. Nasdaq 100 futures had fallen 0.3pc.
11:38AM‘Desire for non-stop construction’ threatens historic London
Heritage bodies said London’s skyline is being damaged by developers building too many towers, claiming that London’s history is threatened by its “unsustainable desire for non-stop construction”.
Our reporter Riya Makwana explains why:
Alexandra Palace, the Grade II listed entertainment North London venue, is known for more than hosting rap superstar Jay-Z or Prince William’s Earthshot Prize Awards ceremony.
“Ally Pally”, which first opened on Queen Victoria’s 54th birthday, is one of several locations that has a clear sight of the capital’s silhouette, which by planning laws, is a protected heritage view.
For more than 250 years, London’s skyline was solely defined by St Paul’s Cathedral. The Anglican place of worship has played an integral role in London’s history, having hosted several monumental events including the funeral of Sir Winston Churchill and Margaret Thatcher and Queen Elizabeth II’s 80th and 90th birthday.
It was the tallest building in the capital until 1962, largely due to planning laws which capped the height of buildings to 80 ft high.
However, fast forward to 2023, and the tallest building in the City, 22 Bishopsgate, reaches up to 278 metres, only falling 31 metres short of The Shard in London Bridge.
Read about the towers coming to London by 2030.
11:14AMContinental to cut thousands of jobs
German tyre maker Continental will cut thousands of jobs to reduce costs as the car industry faces severe headwinds.
The company, which makes tyres and supplies components, said it had not decided on the exact number of job losses but it would be in the “mid four-digit range”.
The move is part of plans to make cost savings of €400m (£349m) annually.
German business magazine Manager Magazin previously reported that Continental plans to slash 5,500 jobs worldwide, including 1,000 in Germany.
The group’s motoring unit in particular has been struggling to keep up with rivals, as the industry transitions to electric vehicles.
Continental currently employs around 200,000 people worldwide.
Novo Nordisk rises after Wegovy heart attack study
Novo Nordisk was worth $14.5bn (£11.8bn) more today after a study showed its blockbuster weight-loss drug Wegovy cuts the risk of heart attacks and death in people with obesity and a history of cardiac disease.
Shares in the Danish drugmaker rose as much as 4.3pc in Copenhagen after research showed patients experienced a drop in blood sugar and inflammation after a high dose of the medicine.
Novo Nordisk shares have risen about 52pc this year to make it Europe’s most valuable company. The business is worth more than $347bn (£283bn).
Oil edges higher ahead of Opec report
Oil was little changed after three weeks of declines as traders await industry reports to confirm whether the recent run lower has been overdone.
Brent crude has gained 0.1pc to more than $81 a barrel, after losing about 12pc over the past three weeks on growing concerns over global demand. West Texas Intermediate traded 0.1pc higher at more than $77.
The Opec cartel will publish its monthly market report on Monday, followed this week by the International Energy Agency and two weeks’ worth of US inventory data.
ANZ Group analysts Brian Martin and Daniel Hynes said: The release of several oil market reports this week will be the focus.
Any signs of tightness may shift sentiment that has been weakened by easing geopolitical tensions.
10:10AMGas prices fall as Israel orders restart of production at major field
Gas prices declined after Israel ordered the resumption of production at one of its gas plants and ahead of what is expected to be a week of mild weather.
Europe’s benchmark contract slumped 3.5pc to €45 per megawatt hour while the UK equivalent dropped 3.5pc to below 114p per therm.
Israel told Chevron it should resume production at its Tamar field in the Mediterranean Sea, which was shut following the Hamas attacks on October 7.
Meanwhile, mild weather is forecast, with wind farms producing more than 50pc of the UK’s energy mix so far today.
9:43AMDr Martens shares hit record low
Dr Martens shares have fallen to a record low since the high-fashion bootmaker floated on the London Stock Exchange two years ago.
The company’s shares have slumped 3.6pc to as low as 112.6p after Barclays downgraded its rating of the stock from overweight to equal-weight.
Dr Martens was valued at 370p when it listed in 2021.
Barclays questioned the company’s direct-to-consumer strategy.
9:33AMPound gains as Braverman sacked by Sunak
The pound has moved higher after Suella Braverman was sacked as Home Secretary by Rishi Sunak, as the Prime Minister begins a reshuffle of his Cabinet.
Sterling has gained 0.2pc against the dollar to $1.22 and has lifted 0.1pc against the euro, which is worth 87p.
The Home Secretary’s position had been under pressure since last week when she wrote an unauthorised article in which she criticised the Metropolitan Police for a “double standard” over their handling of protests.
9:26AMSoaring air fares boost staycations, says travel website
British holidaymakers increasingly chose staycations this year amid wildfires across Europe and soaring air fares, with domestic trips proving popular again for 2024, according to accommodation search website Trivago.
The group’s recently appointed chief executive Johannes Thomas said UK hotel bookings in the third and fourth quarters of the year are dominated by domestic destinations.
The rising cost of flights has been a big factor in the increasing popularity of domestic holidays, he told the PA news agency. He said:
The UK is a very domestic market. Part of that is down to airline tickets, which are significantly more expensive.
Overall across the globe, it’s true for the US, Europe and the UK that people are going closer to home.
They’re travelling shorter distances and choosing to stay shorter periods and that’s probably a sign of higher ticket prices.
Mr Thomas’s comments come after Ryanair warned last week of more steep hikes in air fares this winter.
BAE Systems rises as Gaza and Ukraine wars increase military spending
BAE Systems shares have risen as much as 1.1pc as the defence giant said it is on track for a double-digit jump in annual earnings as countries increase military spending amid the conflict in Gaza and Russia’s war in Ukraine.
The group said it has booked around £10bn of orders since the end of June.
It upped its earnings guidance in August after orders soared following Russia’s invasion of Ukraine last year, forecasting earnings per share would grow by 10pc to 12pc in 2023 and that sales would rise by between 5pc and 7pc.
Since then, war has erupted following Hamas’s unprecedented October 7 surprise attack into Israel from the Gaza Strip.
Israel has responded with air strikes on Gaza.
BAE said: “The high order flow reflects continued customer confidence in our ability to deliver important capabilities at a time of heightening geopolitical risk.”
8:58AMWeekly insolvencies on the rise
At least 625 companies filed for insolvencies last week, according to official documents.
There were 605 liquidators appointed in the UK during the week ending November 10, according to notices filed to the Gazette, which was a 6.1pc increase on the same time last year.
The number of insolvencies was up 3.5pc from a year earlier.
8:43AMFTSE 100 boosted by rising copper prices
The FTSE 100 started the week higher, led by a rise in industrial metal mining stocks as prices of copper rose.
The commodity-focused index was up 0.7pc, while the mid-cap index added 0.2pc.
Industrial metal miners climbed as much as 1.1pc, helped by a rise in copper prices on a softer dollar.
Meanwhile, Phoenix Group raised its full-year cash generation forecast after it completed the merger of two of its insurance brands.
The insurer advanced 8.6pc to top the FTSE 100 in early trading, pushing the broader life insurance index up as much as 1.8pc and leading sectoral gains.
Despite deepening losses, property firm British Land estimated its annual rental value growth at the top end of its previous forecast range, taking the shares up 6.2pc to the top of the FTSE 250.
Dr. Martens slipped 3.2pc after Barclays reduced the bootmaker’s price target.
8:25AMAsda owners to buy Tesla's electric charging network
Petrol station giant EG Group has announced it will acquire electric car manufacturer Tesla’s network of ultra-fast chargers.
EG, run by Asda owners Mohsin and Zuber Issa, said the chargers will be branded evpoint and will be available to all electric vehicle drivers.
Zuber Issa said:
Securing this best-in-class equipment from Tesla marks another milestone for evpoint and is hugely exciting for us.
It is the first deal of its kind entered into by Tesla with a third-party charge point operator in Europe and will transform how our customers charge their vehicles and how they interact with EG.
Since installing our first EV charger back in 2012, we have continued to invest in the technology.
This deal will accelerate the delivery of vital charging infrastructure for motorists to help power the transition to net zero.
UK companies more optimistic than European rivals
British businesses are more positive about what will happen to their business over the next year than their rivals in Europe, according to a survey.
UK business confidence fell to its lowest level this year in October, the latest Accenture/S&P Global UK Business Outlook survey found.
Only 37pc of businesses expect activity to increase over the next year, down from 40pc in June and 43pc in February.
However, UK business optimism still remained relatively high compared to averages around the world, with 25pc expecting an increase in activity, and Europe, with 16pc expecting growth.
Those figures fell by 3pc and 9pc respectively.
8:05AMUK markets mixed at open
The FTSE 100 began the week higher ahead of inflation data released this week.
The UK’s blue chip index gained 0.4pc to 7,387.89 while the midcap FTSE 250 began the week down 0.1pc at 17,835.73.
7:48AMBritish Land losses deepen amid higher interest rates
British Land has seen its losses widen and said property values have been further hit by higher borrowing costs.
The commercial landlord said its pre-tax losses more than doubled from £20m to £49m in the six months to the end of September, compared with the same period last year.
It came as values across its property portfolio were down 2.5pc to £8.7bn over the half year, as interest rates have risen and are expected to stay higher for longer.
British Land said it expects its full-year performance to be at the “top end” of previous guidance amid hopes the UK is approaching peak interest rates.
Chief executive Simon Carter said:
Whilst in the past 18 months we have delivered good earnings growth, asset values have been impacted by the increase in interest rates.
The geopolitical and economic landscape remains uncertain; however, with our portfolio yield now over 6pc and an increased likelihood we are approaching the peak in UK base rates we expect the strong occupational fundamentals of our submarkets, together with the differentiated quality of our assets, to reassert themselves as the primary drivers of performance.
Royal Mail fined for missing delivery targets
Royal Mail has been fined £5.6m by regulator Ofcom for a “significant” failure to meet its postal delivery targets in the past financial year.
Ofcom imposed the penalty following an investigation launched in May after Royal Mail fell short of its performance targets across the 2022 to 2023 financial year for first and second class mail deliveries.
Some 73.7pc of first class mail was delivered within one working day across the year, against a target of 93pc, while 90.7pc of second class mail was delivered within three working days, compared with the target of 98.5pc.
And 89.35pc of delivery routes were completed on the required day, well behind the 99.9pc target.
The postal watchdog said that, even after taking into account strike action disruption, extreme weather and the closure of the runway at Stansted Airport, Royal Mail’s first and second class performance was still only 82pc and 95.5pc respectively.
Ofcom said: “This means that Royal Mail breached its obligations by failing to meet its targets by a significant and unexplained margin.
“This caused considerable harm to customers, and Royal Mail took insufficient steps to try and prevent this failure.”
Heathrow fourth busiest airport in the world
Heathrow Airport said it has become the fourth busiest airport in the world.
Some 7m passengers travelled through the west London airport last month.
The figure is up 19pc from 5.9m during the same month last year.
New chief executive Thomas Woldbye said: “I’ve learned a lot about Heathrow in my first few weeks, but one thing that really stands out to me is the passion and drive of colleagues to get people away smoothly on their journeys.”
Heathrow is now behind Hartsfield-Jackson Atlanta International Airport, Dubai and Dallas Fort Worth.
Aukus submarine deal helps keep defence giant BAE Systems on target
BAE Systems reported a “strong year” for orders as projects like the Aukus submarine programme kept it on track for its full-year profit expectations.
The defence giant said it had booked more than £30bn of orders so far this year, including £3.9bn for the next phase of Aukus - the security pact between the UK, US and Australia.
It said underlying pre-tax profits before charges would grow 6pc to 8pc this year, with sales up 5pc to 7pc.
BAE Systems chief executive Charles Woodburn said:
Trading has been in line with the upgraded guidance we issued at the time of our 2023 half-year results. We are delivering another year of good sales and earnings growth, together with strong cash flow generation.
Order flow on new and existing programmes, renewals on incumbent positions and progress with our opportunity pipeline remains strong.
These underpin our confidence and visibility for good top line growth in the coming years, and we continue to reinforce our value compounding model with a sharp focus on operational performance and disciplined capital allocation.
House sellers slash asking prices as interest rates hit property market
Sellers made the biggest cut to asking prices in any November over the last five years this month, as 15-year high interest rates weigh on the housing market.
Vendors have brought down asking prices by around 1.7pc or £6,088 to £362,143, marking the largest average price reduction in November since 2017 according to Rightmove.
The online property portal said prices normally dip in the run up to Christmas, however labelled this drop in asking prices as “larger than usual”.
Figures from Halifax last week showed that home values rose by 1.1pc in October after six months in decline, as people delayed putting their house up for sale and supply tightened.
The bank said sellers were taking a “cautious attitude” rather than offloading at lower prices.
Yet the new numbers from Rightmove suggest that those actively looking to sell are still having to adjust their price expectations amid high borrowing costs.
Tim Bannister, director of property science at Rightmove said: “We’d expect to see a drop in new seller asking prices in the last couple of months of the year, as serious sellers start to separate themselves from discretionary sellers and cut through the Christmas noise with an attractive price to secure a buyer.
“However, the larger than usual drop this month signals that among the usual pricing seasonality, we are starting to see more new sellers heed their agents’ advice and come to market with more enticing prices to stand out from their over-optimistic competition.”
The number of house sales agreed were 10pc below the more ‘normal’ level in 2019, according to Rightmove.
This marks a slight improvement from 15pc the previous month.
Sales agreed for studio, one-bedroom and two-bedroom properties were 7pc lower than in 2019. Meanwhile sales for properties with at least four bedrooms have plunged 14pc on pre-pandemic levels.
High interest rates have caused a slowdown in the property market as affordability has become increasingly constrained for mortgage holders and those trying to get on the housing ladder.
The Bank of England held rates for the second consecutive time at 5.25pc at the start of November, while warning that borrowing costs could still rise further.
Good morning
Thanks for joining us. The average price of a home coming on the market fell by more than £6,000 in November, according to a property website.
Across Britain, average asking prices by new sellers fell by 1.7pc (£6,088) this month to reach £362,143, Rightmove said.
While asking prices do usually record a fall at this time of year, the 1.7pc fall is the biggest percentage drop recorded for the month of November in five years, the report said.
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What happened overnight
Shares edged lower in quiet trading in Asia ahead of a meeting this week between Joe Biden and Chinese leader Xi Jinping.
Tokyo stocks ended flat, with the benchmark Nikkei 225 up less than 0.1pc, or 17 points, to close at 32,585.11, while the broader Topix index was flat, slipping 0.1 points, to 2,336.62.
Biden and Xi are due to meet on the sidelines of the Asia Pacific Economic Cooperation summit this week amid hopes for improved ties between the two biggest economies.
On Friday, Wall Street rose sharply to add to an already strong November, which is on track to be one of the market’s best months of the year.
The Hang Seng in Hong Kong edged 0.1pc higher to 17,227.10.
The Shanghai Composite index slipped 0.1pc to 3,035.95 and the Kospi in Seoul also fell 0.1pc, to 2,408.37.
Australia’s S&P/ASX 200 declined 0.1pc to 6,972.20.
On Wall Street on Friday, the S&P 500 jumped 1.6pc to 4,415.24, the Dow gained 1.2pc to 34,283.10, and the Nasdaq jumped 2pc to 13,798.11.
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