The FTSE 100 suffered its worst day in over a month as the blue chip index slipped 0.8pc following steady gains last week.
European indexes opened the week in the red. France’s CAC 40 in Paris dropped 0.85pc while the Dax in Frankfurt fell by 1pc.
Markets across the world have wobbled amid concerns interest rates will stay higher for longer than expected.
The City’s blue chip index fell by as much as 1.3pc in Monday afternoon, before recovering slightly in a late rally to 7,623.99. It marks its worst one-day performance since Aug 15.
Shares in Ladbrokes-owner Entain fell by more than 12pc as it cut its sales outlook, leading the sell-off among the FTSE 100. Tobacco giant Imperial Brands dropped by 5.6pc while Ocado shares dropped by 4.8pc.
It comes as bond markets slumped as the Bank of England, US Federal Reserve and European Central Bank all indicated last week that interest rates could remain high for some time.
The yield on 10-year US Treasuries has nudged past 4.5pc for the first time since October 2007, while the coupon on 10-year German bunds climbed past 2.8pc to hit its highest level since 2011.
Meanwhile, the MSCI index of global stocks was down 0.5pc, reflecting weak outlook across worldwide shares. The FTSE 250 dipped by 1pc.
Stocks tend to fall when the yield on bonds rises as investors switch to the less risky assets.
Read the latest updates below.
06:13 PM BST
That's all from me today
After several upbeat weeks the FTSE 100 begins with a correction as global markets trended downwards amid concerns high interest rates could be sticking around for longer.
The blue chip index fell by 0.8pc to 7,623.99. France’s CAC 40 in Paris dropped 0.85pc while the Dax in Frankfurt fell by 1pc. US markets are bucking the trend - the S&P 500 has started up 0.3pc so far in New York.
Join us again tomorrow morning for the latest market updates.
05:41 PM BST
Bank of England in ‘unconscious bias’ crackdown
The Bank of England has launched a review and a set of new rules that regulators hope will crack down on “unconscious bias” in the finance industry, Simon Foy reports:
The Bank’s Prudential Regulation Authority (PRA) and the City watchdog have proposed a raft of new rules that would require large banks and insurers to report diversity and inclusion data to regulators and set new targets to address “under-representation”.
Under the plans, companies in the City would be mandated to develop a diversity and inclusion strategy and collect, report and disclose data on characteristics such as disability and ethnicity of staff.
Companies can also choose to go further by reporting data on gender identity and socio-economic background of staff, the regulators said.
You can read the full story here: Bank of England launches hunt for ‘unconscious bias’ in finance industry
05:15 PM BST
FTSE 100 closes down 0.8pc
Britain’s blue chip index closed down at 7,623.99, its worst day in a month after steady gains last week. It was down over 1.3pc before a late rally recovered some of the morning’s losses. The day’s biggest fallers included Entain, which slipped more than 12pc after it warned over lower revenues.
05:06 PM BST
GameStop blockbuster to feature stock trading warning
Viewers of the upcoming film adaption of the GameStop saga will be forced to sit through a minute-long advert from Britain’s financial regulator warning against market hysteria. Tom Haynes has more:
Cinemas have been asked to display banners warning of the risks of investment hype ahead of the screening of Dumb Money. The new film, starring Hollywood A-listers including Seth Rogan, will be released internationally at the end of this week.
Viewers will also be made to sit through a minute-long trailer-style warning. This is the first time the regulator, the Financial Conduct Authority, has invested in a cinema advert campaign targeted at a specific film.
The blockbuster follows the stock market frenzy that unfolded during the pandemic. It occurred after an army of small investors collaborated in Reddit forums to push up the share price of GameStop, a video game retailer, in opposition to a group of hedge funds who had bet against the company.
The “short squeeze” drove the share price up by as much as 1,500pc.
You can read more here: GameStop blockbuster Dumb Money to come with stock market hysteria warnings
04:32 PM BST
ChatGPT can now speak and listen to you
The digital chatbot that took the world by storm late last year, ChatGPT, has a few new tricks up its robotic sleeve. OpenAI’s bot can now speak, hear and “see” the world around it, as the Silicon Valley start-up races to take on Amazon’s Alexa and Apple’s Siri.
OpenAI will now be able to take spoken questions with a kind of “push to talk” function to have back-and-forth conversations with the AI bot.
Users will also be able to take a photograph and ask ChatGPT questions about the image.
Here is how the company describes the new tools:
Voice and image give you more ways to use ChatGPT in your life. Snap a picture of a landmark while traveling and have a live conversation about what’s interesting about it. When you’re home, snap pictures of your fridge and pantry to figure out what’s for dinner (and ask follow up questions for a step by step recipe). After dinner, help your child with a math problem by taking a photo, circling the problem set, and having it share hints with both of you.
However, OpenAI, perhaps ready for any backlash or outrageous remarks its chatbot might make, has limited the ability of its bot to see and comment on individuals.
We’ve also taken technical measures to significantly limit ChatGPT’s ability to analyze and make direct statements about people since ChatGPT is not always accurate and these systems should respect individuals’ privacy.
04:03 PM BST
London Stock Exchange news service goes down
The London Stock Exchange Group’s Refinitiv news service suffered a temporary outage on Monday after its data and information tool Eikon briefly went down.
Reuters reported that customers received an email admitting its service had gone down.
“At this time, the exact cause of the issue remains unknown. We are working diligently to identify the problem and resolve it as soon as possible,” the email to customers said.
The bourse acquired Eikon in 2021 as part of its $27bn takeover of Refinitiv. Shortly after the deal closed, customers - made up of traders, fund managers and financial analysts - endured a series of outages, which were labelled by chief executive David Schwimmer as “unacceptable”.
The LSEG said it was working to resolve the issue.
03:53 PM BST
Booking.com takeover blocked on competition concerns
European regulators have blocked a €1.6bn takeover by Booking.com of a Swedish rival amid concerns the deal would have pushed up hotel prices for consumers.
Last year, Booking.com agreed a deal to acquire eTraveli, a Swedish booking site, a major provider of flight bookings on the continent. The European Commission said the merger would have harmed competition and led to higher prices for hotels, which would have been passed onto consumers.
By integrating its service into eTraveli’s flight booking technology, the company would have secured more hotel bookings, the regulator said.
Booking.com had proposed mitigations that would have displayed various hotel options from around the web on eTraveli’s flight booking site, but Brussels rejected the proposals as not going far enough.
Didier Reynders, European Commissioner for Justice, said:“Our decision to block the merger means that European hotels and travellers will not be further limited in the options available to offer their services and book their trips. This also means that the drive for competitive prices and innovation will be preserved in this important part of the travel industry.”
03:30 PM BST
With that, I’ll head off for the day and place you under the guidance of Matthew Field, who will keep you informed from here.
I will leave you with this great picture of some of the 125,000 pumpkins at Spilman’s Pumpkin Farm in Sessay, near Thirsk, North Yorkshire, ahead of the opening of Pumpkin Fest 2023 on Saturday.
03:24 PM BST
Pound slump deepens as Goldman Sachs cuts forecast
The pound has fallen 0.3pc against the dollar taking it close to $1.22 this afternoon.
It comes as Goldman Sachs cut its forecast for sterling after the Bank of England held interest rates at 5.25pc last week.
The investment bank said it expects the pound to hit $1.18 in three months, compared to a previous expectation of $1.24.
Analyst Kamakshya Trivedi said:
A combination of weaker growth, high inflation, and lower real rates is a negative mix for the currency.
If the incoming activity data reflect a more negative domestic growth picture than we expect, the currency would come under even more pressure.
Against the euro, the pound has gained 0.2pc to remain below 87p.
02:59 PM BST
US bond yields move higher
US Treasuries extended their decline, driving the yield on 10- and 30-year bonds to their highest levels in several years amid expectations that the Federal Reserve will hold interest rates high.
The 10-year yield rose as much as 10 basis points to 4.53pc, the highest since October 2007. The 30-year rose as much as 12 basis points to 4.64pc, a level not seen since April 2011.
Bond yields have been rising since the Fed last week signalled that it may raise rates once more this year and reduced expectations for rate cuts in 2024, indicating it is likely to keep monetary policy tight well into next year to tame inflation.
Gregory Faranello, head of US rates trading and strategy for AmeriVet Securities, said: “The structural pain trade is higher from here and the Fed is no longer your friend.”
The 10-year yield just hit a fresh 16-year high 👀👀👀
One of the biggest stories in markets b/c it's
😬a proxy for the economy (good)
😬but a hurdle rate for longer-term investments (bad) pic.twitter.com/IjmgopFGiO
— Callie Cox (@callieabost) September 25, 2023
02:34 PM BST
Wall Street slumps at the opening bell
US markets have fallen to start the week as worries over interest rates staying higher for longer push the 10-year Treasury yield higher.
The Dow Jones Industrial Average fell 56.25 points, or 0.2pc, at the open to 33,907.59.
The S&P 500 opened lower by 9.44 points, or 0.2pc, at 4,310.62, while the Nasdaq Composite dropped 39.27 points, or 0.3pc, to 13,172.54 at the opening bell.
02:31 PM BST
Lagarde: Rates must be 'sufficiently restrictive levels for as long as necessary'
European Central Bank president Christine Lagarde reiterated that borrowing costs will remain elevated for as long as is needed to tame inflation — even as the economy struggles.
She told the European Parliament:
Our future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary.
We remain determined to ensure that inflation returns to our 2pc medium-term target in a timely manner.
Lagarde: Headline inflation continued its decline and stood at 5.2% in August, while most measures of underlying inflation continued to moderate.
Our latest projections show that inflationary pressures are expected to ease and inflation is set to reach our target by end-2025. pic.twitter.com/fcD5tu7R5x
— European Central Bank (@ecb) September 25, 2023
02:23 PM BST
China 'hopes EU will lift restrictions on high-tech products'
China hopes the European Union will lift restrictions on high-tech products to the country, Chinese Vice Premier He Lifeng has said after a high-level economic and trade meeting in Beijing.
Both sides agreed to work together to stabilise supply chains, he said after meeting with EU Trade Commissioner Valdis Dombrovskis.
In a speech earlier, Mr Dombrovskis accused China of carrying out a “weaponisation of trade and investment” and urged the world’s second largest economy to “address the lack of reciprocity in our economic relationship”.
02:11 PM BST
Germany's borrowing costs highest in 12 years as economy struggles
The German government faces its highest borrowing costs in 12 years amid a slump in business confidence and surging interest rates.
Business morale in Europe’s largest economy deteriorated for the fifth month in a row, a survey by the Ifo institute showed.
Ifo president Clemens Fuest said the Germany economy “is treading water”, after the decline in its business climate index to 85.7 from 85.8 in August.
It comes as companies adjust to record interest rates, which the European Central Bank raised to 4pc last week.
The yield on 10-year German bunds has jumped to its highest level since 2011, rising nearly six basis points to 2.79pc, as markets prepare for rates to stay higher for longer.
ING’s global head of macro Carsten Brzeski said: “German businesses, as well as politicians and the entire economy, are gradually getting used to the idea that the economy is in for a longer period of subdued growth.”
German chancellor Olaf Scholz said the European Central Bank was right to raise interest rates on Thursday but that such moves were also inhibiting housing construction amid a major slump in the sector.
01:59 PM BST
Cutting HS2 route would be 'stupid decision,' say industry figures
Downscaling HS2 would create “a commercial and operational mess”, industry experts have warned.
Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are reported to be meeting to discuss the future of the high-speed rail project in the coming days.
There is speculation the leg from Birmingham to Manchester will be cancelled or delayed while Euston will be axed, both in response to soaring costs.
Under existing plans, HS2 trains will run on high-speed lines between London and Manchester, as well as running on existing lines to destinations such as Glasgow, Liverpool and North Wales.
William Barter, a railway consultant whose recent clients include the Department for Transport, told the PA news agency this would result in “80pc of the costs and 20pc of the benefits”, while rail engineer and writer Gareth Dennis claimed it would be a “stupid decision”.
01:39 PM BST
Aviva buys AIG arm in £460m deal
Insurance giant Aviva has agreed to buy the UK protection arm of American International Group (AIG) for £460m, marking the largest acquisition by the FTSE 100 insurer under boss Amanda Blanc.
The deal to snap up AIG Life UK will add 1.3m individual protection customers and 1.4m group members.
Aviva chief executive Amanda Blanc said:
This acquisition brings significant strategic and financial benefits to Aviva.
It strengthens our prospects in the highly attractive UK protection market and continues our progress in repositioning the group towards capital-light growth.
The deal is expected to complete in the first half of 2024.
01:23 PM BST
Nissan to go all-electric in Britain by 2030 despite Sunak net zero delay
Nissan has vowed to go all-electric in Europe by 2030 as the Japanese car giant’s chief executive said “there is no going back now”.
Our senior technology reporter Gareth Corfield has the latest:
Nissan’s commitment to the 2030 deadline comes less than a week after Prime Minister Rishi Sunak pushed back a ban on the sale of petrol and diesel cars to 2035.
Makoto Uchida reiterated Nissan’s EV timeframe at an announcement in London on Monday, where he unveiled the manufacturer’s latest battery-powered car design.
Nissan employs more than 7,000 staff across the UK at three sites, including its flagship factory in Sunderland, which accounts for 6,000 employees.
Mr Uchida said: “Nissan will make the switch to full electric by 2030 in Europe – we believe it is the right thing to do for our business, our customers and for the planet.”
01:11 PM BST
Biden wants wealthiest to start 'paying fair share'
Joe Biden has said it is time “the wealthiest started paying their fair share” as Americans prepare for a period of higher interest rates for longer:
Let me break down the key difference between Bidenomics and MAGAnomics.
House Republicans think massive corporations and the wealthiest Americans need a tax break.
I think it's time working people saw some relief. And the wealthiest started paying their fair share.
— President Biden (@POTUS) September 25, 2023
12:57 PM BST
Artificial intelligence could run out of control and create bioweapons, ministers warn
Artificial intelligence could be used to create bioweapons if humans lose control of the systems they have created, ministers have warned.
Our technology editor James Titcomb has the latest:
Michelle Donelan, the science and technology secretary, said a global summit on November 1 will focus on preventing “loss of control risks” from advanced systems and stopping criminals from using AI systems to create bioweapons and cyber attacks.
Mr Sunak will host world leaders and Silicon Valley bosses at the two-day summit at Bletchley Park in a bid to work towards an international consensus on mitigating AI’s harms.
Ministers said the summit would target “frontier AI” – systems such as advanced chatbots that display a wide range of skills.
12:28 PM BST
US markets poised to drop at the open
Wall Street markets are on course to fall at the opening bell amid concerns over interest rates staying higher for longer.
The S&P 500 and the Nasdaq registered their largest weekly percentage drop since March on Friday as the 10-year Treasury yield rose to a 16-year high while investors digested the outlook from the Federal Reserve, which did not rule out further rate rises.
Just a few days after the Fed’s decision to leave interest rates at a range of 5.25pc to 5.5pc, some policymakers warned of further increases as they doubt if the inflation battle is over.
Apple, Microsoft, Tesla and Meta Platforms remained under pressure in premarket trading, losing between 0.2pc and 0.4pc.
Traders’ bets on the benchmark rate remaining unchanged in November and December stood at 74pc and 59pc, respectively, according to CME’s FedWatch tool.
Investors also assessed other risks including high oil prices, a resumption of student loan payments in October and a government shutdown that is set to begin if Congress is unable to pass a budget by September 30.
The Dow Jones Industrial Average, S&P 500 and Nasdaq 100 are all on track to open down about 0.1pc.
The Russell 2000 index of smaller companies is poised for a steeper fall of 0.3pc:
Small caps are almost negative YTD, even though the S&P 500 is up 13%
Not good, especially when you consider how strong US economic data/the dollar have been pic.twitter.com/8e3BjrqdW1
— Callie Cox (@callieabost) September 22, 2023
12:10 PM BST
Brussels accuses China of 'weaponisation of trade'
China has weaponised trade and investment against the EU, a top official has warned, undermining business confidence in the world’s second largest economy.
Valdis Dombrovskis, the European Commissioner for Trade, said that Beijing “could do a lot” to help reduce the perception of risk associated with the country.
He added that China and the bloc could “drift apart” over the country’s position on Russia in the wake of Vladimir Putin’s war in Ukraine.
In a speech at Tsinghua University in Beijing, Mr Dombrovskis warned: “The EU cannot allow itself to be unprotected when our openness is abused or when our national security is at stake. And ‘national security’ is a very well and narrowly defined concept in Europe.
“China could do a lot to help reduce our perception of risk. There are several cases where the weaponisation of trade and investment is unhelpful.
“In a wider sense, we urge China to address the lack of reciprocity in our economic relationship. The figures speak for themselves. The current trade deficit stands at €396bn in China’s favour.”
11:46 AM BST
SEC collects Wall Street's private messages
US regulators have reportedly collected thousands of staff messages from more than a dozen major investment companies as they escalate an investigation into Wall Street’s use of private messaging apps.
The Securities and Exchange Commission (SEC) has been carrying out a two-year crackdown on potential breaches of record-keeping rules initially targeted broker dealers, netting more than $2bn (£1.6bn) in fines.
It had asked companies to internally review the messages in its investigation of Wall Street’s use of WhatsApp, Signal and other unapproved messaging apps to discuss work.
However, it has not decided to review thousands of staff messages in an escalation of the investigation, according to Reuters.
11:19 AM BST
Oil climbs as supply cuts continue
Oil has resumed its price rally as hedge funds bet on supplies tightening.
Brent crude, the international benchmark, has climbed 0.4pc back toward $94 a barrel, while US-produced West Texas Intermediate is 0.3pc higher at more than $90.
Oil has added about a quarter since the end of June, with prices set for the biggest quarterly gain since the launch of Russia’s war in Ukraine amid supply cuts by Moscow and Saudi Arabia.
Arne Lohmann Rasmussen, head of research at A/S Global Risk Management, said:
We have long been advocating for a tight oil-market balance.
Given the fundamental picture, we believe the probability of a significant new setback in prices has decreased. Hence, we believe that the current level is a buying opportunity.
10:59 AM BST
Bond yields climb ahead of eurozone inflation data
Germany’s 10-year bund yield has hit its highest since 2011 as investors look towards inflation data later this week which will influence European Central Bank decision-making.
Eurozone bond yields have extended their rise slightly after data showed German business morale was slightly stronger than expected in September, even though it fell marginally compared to August.
Germany’s 10-year bond yield was last up six basis points at 2.8pc after hitting its highest level since July 2011 at 2.783pc.
The ECB raised interest rates to a record high of 4pc on September 14. It signalled that it was likely done with tightening monetary policy but said another increase was possible should inflation come in stronger than expected.
The Federal Reserve held interest rates at 5.25pc to 5.5pc on Wednesday, followed by the Bank of England holding rates at 5.25pc on Thursday.
The yield on 10-year UK gilts has climbed nearly six basis points to 4.3pc.
10:37 AM BST
M&S to sell Adidas and Sweaty Betty online
Marks & Spencer will begin selling Adidas and Sweaty Betty outfits as it adds to its mix of women’s sportswear.
The high-street stalwart will make the items available on its Sports Edit online platform as part of an expansion of its brands strategy.
M&S launched a dedicated sportswear platform on its website last year as searches for sportswear increased by 39pc during the Women’s World Cup.
The sportswear market is estimated to be worth more than £4bn and is expected to continue to grow by 6pc between 2023 and 2028.
M&S director of third-party brands Nishi Mahajan said: “This is just one of the way’s we’re continuing to become more relevant to our customers lifestyles.”
10:20 AM BST
Sunak 'committed to levelling up' amid HS2 speculation
Rishi Sunak has insisted he is committed to levelling up despite declining to back building HS2 to the North in the face of warnings by senior Tories not to axe the rail project.
The Prime Minister is considering scrapping or delaying the leg of HS2 from Birmingham to Manchester in response to soaring costs.
Grant Shapps, recently promoted to Defence Secretary from his transport role, said it would be “crazy” not to reconsider the project in considering the UK’s economic situation.
But Tory former chancellor George Osborne and ex-Conservative deputy prime minister Lord Heseltine were among senior figures warning that axing the Manchester route would be a “gross act of vandalism” which would mean “abandoning” the North and Midlands.
Visiting a community centre in Hertfordshire, which is receiving money from a community ownership fund, the Prime Minister faced questions over how he could be committed to levelling up while considering rowing back on the rail project.
He said: “I’m not going to comment on that type of speculation. But what I would say is we’re absolutely committed to levelling up and spreading opportunity around the country, not just in the North but in the Midlands, in all other regions of our fantastic country.”
10:05 AM BST
Pound falls in wake of interest rate pause
The pound has fallen against the dollar as markets readjust to the idea that the Bank of England may stop raising interest rates.
Sterling lost more than 1pc last week after rates were held at 5.25pc, ending a sequence of 14 consecutive rises.
The pound has dropped 0.2pc against the greenback toward $1.22 and is flat against the euro, which is worth just under 87p.
09:37 AM BST
Brighton Pier's sales sink after train strikes
Brighton Pier Group has said trade in recent months has been “unusually difficult” after events such as weekend train strikes and wet weather affected the firm.
It came as the boss of the leisure group, which owns Brighton Pier and a number of bars and mini-golf sites, also highlighted that “persistent high inflation” and “cautious spending” from consumers led to a loss and weaker-than-expected sales in the first half of the year.
Shares in the company have dropped 11.6pc in early trading.
Bosses told shareholders sales and earnings were “lower than expected” over in recent months.
The company blamed “the weekend train strikes, exacerbated by exceptionally poor weather in July and August, and the temporary restriction of access following a fire at a major hotel opposite the entrance to the pier towards the end of July” for recent weakness.
Sales declined to £12.3m for the 12 weeks to September 17 from £12.6m over the same period last year as a result.
Chief executive Anne Ackford said: “The regular weekend train strikes in particular have reduced visitor numbers on the pier by 18pc versus comparable weeks in 2022.”
09:17 AM BST
Business confidence slumps in Germany
German business morale deteriorated in September, falling for the fifth month in a row, a survey showed.
The Ifo institute said its business climate index stood at 85.7, declining from a revised 85.8 in August.
Ifo president Clemens Fuest said: “The German economy is treading water.”
Companies were less satisfied than in the previous month with their current business situation. However, their pessimism regarding the coming months dissipated slightly.
— TRADING ECONOMICS (@tEconomics) September 25, 2023
09:07 AM BST
Gas prices poised to ease over winter
European gas prices for the winter months are easing as the market readjusts to large storage levels on the continent.
Gas contracts for November are flat and futures for December have fallen by more than 2pc.
It comes despite the contract for next month gaining nearly 20pc in September as a result of risks to supply from maintenance in Norway and the threat of strikes in Australia - which have now been called off.
Weak industrial demand and forecasts for mild weather are also keeping a lid on future prices.
Dutch front-month futures, Europe’s benchmark, were last up 6.6pc to more than €42 per megawatt hour. Prices have jumped nearly 14pc over the last three days.
08:45 AM BST
Amazon steps up AI-race with £3.3bn investment in Anthropic
Amazon has said it will invest up to $4bn (£3.3bn) in cash in the high-profile start-up Anthropic in its effort to compete with growing cloud rivals on artificial intelligence.
Amazon’s employees and cloud customers will gain early access to technology from Anthropic as part of the deal, which they can infuse into their businesses.
The San Francisco-based start-up also committed to rely primarily on Amazon’s cloud services, including training its future AI models on large quantities of proprietary chips it would buy from the online retailing and computing giant.
In a joint interview, the chief executives of Amazon’s cloud division and Anthropic said the immediate investment will be $1.25bn (£1bn), with either party having the authority to trigger another $2.75bn in funding by Amazon.
They declined to state how much Amazon now would own of Anthropic or the start-up’s updated valuation, last estimated at more than $4bn.
Amazon said it would not gain a board seat and that its stake amounted to a minority position.
It comes as Amazon tries to address challenges from Microsoft and Google, which are smaller cloud rivals that have marketed or developed powerful AI this year.
08:36 AM BST
Entain biggest faller in poor start for FTSE 100
Stock markets have opened lower in London in a grim start to the last week of the quarter.
Ladbrokes owner Entain tumbled to over a year’s low after issuing a warning about its online gaming sales.
Entain slipped 5.2pc to the bottom of the FTSE 100 after saying it expects third-quarter online net gaming revenue to be down by “high single digit percent” on a pro-forma basis due to softer-than-anticipated growth in Australia and Italy.
The travel and leisure index housing the gambling firm dropped 1.9pc.
More broadly, the exporter focussed FTSE 100 has dropped 0.1pc and the mid-cap FTSE 250 has fallen 0.4pc as worries of tighter monetary conditions for longer continue to weigh on sentiment.
Among other movers, Aviva fell 0.7pc after the life insurance company said it agreed to acquire the UK protection business of AIG for £460m.
The life insurance sector housing the business was off as much as 1.2pc.
08:30 AM BST
What are 'rules of origin'?
Car makers face £3.7bn of tariffs on sales of electric vehicles over the next three years under “rules of origin” regulations coming into force in January.
The standard “rules of origin” for vehicles is either 40pc or 45pc of content coming from outside the EU, with the UK (temporarily) exempt from this rule.
All batteries made in Europe qualify for European origin under this arrangement, which applies until the end of this year. The compliance rate is around 99pc.
However, the rules will change from January, meaning all battery parts and certain battery materials will need to have come from within the EU and the UK.
Only about 10pc of electric vehicles made within Britain and the EU will comply with this new measure, meaning manufacturers selling between the EU and the UK will need to pay a 10pc tariff, impacting an industry which generates more than 7pc of the EU’s GDP.
08:12 AM BST
Slowing UK economy has cost families £1,400 a year
Britain’s slowing economy has cost families £1,400 a year, the Resolution Foundation has said.
Eir Nolsøe and Tim Wallace have the details:
The think tank said households have borne the brunt of Britain’s economic decline over the past 15 years, which has been fuelled by shocks such as the financial crisis and the Covid-19 pandemic.
Its latest report has found that the UK economy’s slowdown has led to it being 4pc smaller than it could have been after stumbling “from one major crisis to the next”.
The Resolution Foundation said the rate of economic change, where underperforming industries are left behind by more innovative sectors, has fallen to its lowest level in 90 years.
Greg Thwaites from the Resolution Foundation said: “Britain needs more, not less, economic change. We need successful firms to grow, and struggling ones to shrink.”
08:06 AM BST
UK markets open lower
The FTSE 100 has begun the week on the backfoot, following most Asian markets lower as investors get used to the idea of interest rates remaining higher for longer.
The UK’s blue chip index has fallen 0.4pc to 7,656.84 while the midcap FTSE 250 slumped 0.3pc to 18,546.19.
07:40 AM BST
Ladbrokes owner hit by online gaming slump
Coral and Ladbrokes owner Entain has slashed its full-year outlook for online gaming revenues after worse-than-expected recent trading and said it was ramping up overhaul efforts.
The group said online net gaming revenues have been softer than it had predicted since the summer and it is now expecting a “high single digit” per cent fall over the third quarter on a pro forma basis.
Over the year as a whole, it expects group online net gaming revenues to be down by a “low single digit per cent”, though it kept its outlook for underlying earnings in the range of £1bn to £1.05bn.
Entain said it was now speeding up its transformation plans, including a review of its markets and move to simplify the group structure and operations to cut costs.
It will give further details on the plans alongside its trading update on November 3.
07:35 AM BST
Aldi hits sales record as households 'under real pressure'
The boss of Aldi has said “households are still under real pressure from higher living costs” as the discount supermarket revealed record sales for last year.
The German company’s UK business has reported annual sales of £15.5bn for 2022, jumping from £13.6bn in the previous year.
It added that more recent sales data, compiled by Kantar earlier this month, showed the business saw 17.1pc growth year-on-year as shoppers seek to reduce the cost of their weekly shop.
Giles Hurley, chief executive officer for Aldi UK and Ireland, said:
Although inflation is easing, households are still under real pressure from higher living costs.
As a result, Britain is shopping very differently to how it did 18 months ago - fewer trips, more own label products, and switching supermarkets in search of better value.
What we’re seeing is a new generation of savvy shoppers who’ve turned their back on traditional, full-price supermarkets in favour of transparent, low prices, which is what we’re famous for.
That’s why we’re still welcoming more and more customers through our doors - people who come to us for our low prices but stay for the award-winning quality of our exclusive brands.
07:28 AM BST
Electric vehicle manufacturers face a £3.7bn bill over the next three years unless the EU drops the introduction of tariffs on trade between the bloc and Britain, industry bosses have said.
Factories may reduce production by up to 480,000 vehicles during that time unless the so-called “rules of origin” regulations are abandoned, according to the European Automobile Manufacturers’ Association (ACEA).
The rules, which are due to come into force in January, were designed to force car companies to build vehicles using parts sourced from within the UK or the EU - or face a 10pc tariff.
However, manufacturers rely on components from markets like China and ACEA has warned that complying with the EU rules will be “practically impossible”.
ACEA president and Renault Group chief executive Luca de Meo said: “Driving up consumer prices of European electric vehicles, at the very time when we need to fight for market share in the face of fierce international competition, is not the right move – neither from a business nor an environmental perspective.
“We will effectively be handing a chunk of the market to global manufacturers.
“Europe should be supporting its industry in the net-zero transition as other regions do – not hindering it.”
5 things to start your day
1) Britain’s slowing economy has cost families £1,400 – Britain is stumbling ‘from one major crisis to the next’, says Resolution Foundation
2) BT to cut rural jobs in diversity push – Cost-cutting move is a significant factor in prioritising investment in city centres
3) Wealthy savers in line for tens of thousands of pounds in Isa overhaul – Jeremy Hunt considers reforming the current savings system to boost investment
4) Car dealer Pendragon accused of fraud over software business – £260m lawsuit comes at a turbulent time for Britain’s automotive industry
5) Irish start-up plans UK’s first drone takeaway service – Manna’s launch is expected to kick off an air delivery race among tech companies
What happened overnight
Shares in Asia were mostly lower, with Tokyo the only major regional market to advance, after Wall Street suffered more losses with its worst week in six months.
Worries over China’s property sector, a US government shutdown and the continued strike by American autoworkers were weighing on investor sentiment.
Troubled property developer China Evergrande sank 18.2pc after announcing it was unable to raise further debt, a predicament that might imperil plans for restructuring its more than $300 billion in debt.
Hong Kong’s Hang Seng lost 1.5pc to 17,794.49, while the Shanghai Composite index declined 0.5pc to 3,116.17.
Tokyo stocks ended higher in bargain-hunting following sharp falls last week. The benchmark Nikkei 225 index added 0.9pc, or 276.21 points, to 32,678.62, while the broader Topix index rose 0.4pc, or 9.23 points, to 2,385.50.
In Seoul, the Kospi lost 0.5pc to 2,496.65, while Australia’s S&P/ASX 200 shed 0.1pc to 7,064.30.