Rolling live coverage of business, economics and financial markets as investors anticipate new approach to inflation
- Stock markets move lower ahead of Jackson Hole speech
- Rolls-Royce loses record £5.4bn in first half, seeks £2bn sales
- TikTok chief executive steps down after Trump ban threat
9.59am BST
The pandemic caused a surge in online shopping in many major markets, and particularly for groceries that had seemed (oddly) resistant to the trend before then.
But Delivery Hero – a German rival to Anglo-Dutch Just Eat Takeaway, the UK’s Deliveroo and the US’s Uber Eats – clearly thinks it will be a growth area: it announced a $360m (£270m) deal for InstaShop, a grocery delivery company.
.@InstaShopUAE, the Greece-headquartered on-demand grocery is acquired by Delivery Hero for $360M Great news for the team, investors @VentureF_VC & the Greek ecosystem overall, as we’re talking about the country’s biggest tech exit yet according to TC.https://t.co/xSShYi4YQj
9.51am BST
One of the big business news stories from earlier this morning was the resignation of the boss of TikTok, the Chinese social network that has found itself at the middle of a geopolitical struggle.
Related: TikTok chief executive Kevin Mayer resigns after Trump call to sell US assets
9.41am BST
There’s more from WPP, the world’s biggest advertising agency, which announced a big writedown on the value of previous acquisitions, and a big loss, but still beat market expectations.
Chief executive Mark Read was speaking to reporters this morning. Asked if the multi-billion pound write-down was the fault of Sorrell, who has always had a penchant for making the big deal, Read said:
I don’t think we are saying that. It relates primarily to Y&R Group, before my time, which was acquired in 2000 at the height of the market in a stock transaction when both Y&R and WPP group’s stock were also high.
9.18am BST
The mid-cap FTSE 250 index is mostly flat this morning, but one stock is flying: mortgage specialist OneSavings Bank is up 18%.
The bank said it was “encouraged by the recovery in application volumes for our products since the housing market reopened”, running at about 60% of pre-lockdown levels on tighter lending criteria and higher pricing.
We expect to deliver double digit underlying net loan book growth for the full year.
While we are more cautious than consensus on impairments, we still see upside in the name given return on tangible equity delivery and the very strong capital position […] Clearly, OSB has considerable headroom to cope with any negative shocks in an asset quality context as furlough schemes are tapered. We remain positive on the name.
9.00am BST
Another data point for investors and central bankers to add to the mix from earlier: an apparently strong rebound from Chinese industry.
China was of course by all indications the source of the coronavirus outbreak, but a very strict lockdown relatively early on has meant that much of its industry has reopened.
Profits at China’s industrial firms grew for a third straight month in July and at the fastest pace since June 2018, marking a bright spot in the economy as the manufacturing sector slowly recovers from its coronavirus slump.
Profits at China’s industrial firms grew 19.6% on-year to 589.5 billion yuan ($85.58 billion), the statistics bureau said on Thursday, following an 11.5% increase seen in June, the National Bureau of Statistics (NBS) data showed on Thursday.
8.56am BST
The eyes of the oil industry are on the US east coast at the moment to see what will happen with Hurricane Laura and its effect on production, but in the UK there has been another reminder of the chaos in the industry as prices have plunged.
British oil well drilling tools company Hunting has revealed that it has cut 624 jobs during the first half of the year with the closure of multiple sites in the US.
8.45am BST
WPP has reported a £2.6bn loss in the first half after the impact of the pandemic prompted the company to wipe billions off the value of expensive advertising acquisitions made by founder and former chief executive sir Martin Sorrell.
Assuming there is no second wave nor major lockdowns, the second quarter is expected to be the toughest period of the year, although we remain cautious on the speed of the recovery.
8.31am BST
Stock markets have also retreated across Europe after an initial flurry of positivity (in Germany and France at least).
The Euro Stoxx 600 index, which tracks most of the biggest European companies, is down by 0.2%. Germany’s Dax is down by 0.1%, France’s Cac 40 has lost 0.3% and Italy’s FTSE MIB has lost 0.7% in early trading.
8.25am BST
Jet engine manufacturer Rolls-Royce is the biggest faller on the FTSE 100 after revealing a £5.4bn loss and a plan to sell assets to shore up its creaking balance sheet.
8.04am BST
Good morning, and welcome to our live coverage of business, economics and financial markets.
It is the day investors have been looking forward to throughout August: US Federal Reserve chair Jerome Powell will make a much anticipated speech in which he is expected to address the central bank’s future approach to monetary policy.
There is an element of caution among investors as the Fed chairman, Jerome Powell, will deliver a speech on a monetary policy framework later today. Dow Jones and the S&P 500 futures are likely to experience higher volatility on the back of this. The future of the coronavirus stock market rally is highly dependent on the Fed’s monetary policy stance.
Hurricane #Laura Advisory 29A: Extremely Dangerous Category 4 Hurricane Laura Makes Landfall Near Cameron Louisiana. Catastrophic Storm Surge, Extreme Winds, and Flash Flooding Occurring in Portions of Louisiana. https://t.co/VqHn0u1vgc
Continue reading…Rolling live coverage of business, economics and financial markets as investors anticipate new approach to inflationStock markets move lower ahead of Jackson Hole speechRolls-Royce loses record £5.4bn in first half, seeks £2bn salesTikTok chief executive steps down after Trump ban threat 9.59am BSTThe pandemic caused a surge in online shopping in many major markets, and particularly for groceries that had seemed (oddly) resistant to the trend before then.But Delivery Hero – a German rival to Anglo-Dutch Just Eat Takeaway, the UK’s Deliveroo and the US’s Uber Eats – clearly thinks it will be a growth area: it announced a $360m (£270m) deal for InstaShop, a grocery delivery company..@InstaShopUAE, the Greece-headquartered on-demand grocery is acquired by Delivery Hero for $360M Great news for the team, investors @VentureF_VC & the Greek ecosystem overall, as we’re talking about the country’s biggest tech exit yet according to TC.https://t.co/xSShYi4YQj 9.51am BSTOne of the big business news stories from earlier this morning was the resignation of the boss of TikTok, the Chinese social network that has found itself at the middle of a geopolitical struggle. Related: TikTok chief executive Kevin Mayer resigns after Trump call to sell US assets 9.41am BSTThere’s more from WPP, the world’s biggest advertising agency, which announced a big writedown on the value of previous acquisitions, and a big loss, but still beat market expectations.Chief executive Mark Read was speaking to reporters this morning. Asked if the multi-billion pound write-down was the fault of Sorrell, who has always had a penchant for making the big deal, Read said:I don’t think we are saying that. It relates primarily to Y&R Group, before my time, which was acquired in 2000 at the height of the market in a stock transaction when both Y&R and WPP group’s stock were also high. 9.18am BSTThe mid-cap FTSE 250 index is mostly flat this morning, but one stock is flying: mortgage specialist OneSavings Bank is up 18%. The bank said it was “encouraged by the recovery in application volumes for our products since the housing market reopened”, running at about 60% of pre-lockdown levels on tighter lending criteria and higher pricing.We expect to deliver double digit underlying net loan book growth for the full year. While we are more cautious than consensus on impairments, we still see upside in the name given return on tangible equity delivery and the very strong capital position […] Clearly, OSB has considerable headroom to cope with any negative shocks in an asset quality context as furlough schemes are tapered. We remain positive on the name. 9.00am BSTAnother data point for investors and central bankers to add to the mix from earlier: an apparently strong rebound from Chinese industry.China was of course by all indications the source of the coronavirus outbreak, but a very strict lockdown relatively early on has meant that much of its industry has reopened.Profits at China’s industrial firms grew for a third straight month in July and at the fastest pace since June 2018, marking a bright spot in the economy as the manufacturing sector slowly recovers from its coronavirus slump.Profits at China’s industrial firms grew 19.6% on-year to 589.5 billion yuan ($85.58 billion), the statistics bureau said on Thursday, following an 11.5% increase seen in June, the National Bureau of Statistics (NBS) data showed on Thursday. 8.56am BSTThe eyes of the oil industry are on the US east coast at the moment to see what will happen with Hurricane Laura and its effect on production, but in the UK there has been another reminder of the chaos in the industry as prices have plunged.British oil well drilling tools company Hunting has revealed that it has cut 624 jobs during the first half of the year with the closure of multiple sites in the US. 8.45am BSTWPP has reported a £2.6bn loss in the first half after the impact of the pandemic prompted the company to wipe billions off the value of expensive advertising acquisitions made by founder and former chief executive sir Martin Sorrell.Assuming there is no second wave nor major lockdowns, the second quarter is expected to be the toughest period of the year, although we remain cautious on the speed of the recovery. 8.31am BSTStock markets have also retreated across Europe after an initial flurry of positivity (in Germany and France at least).The Euro Stoxx 600 index, which tracks most of the biggest European companies, is down by 0.2%. Germany’s Dax is down by 0.1%, France’s Cac 40 has lost 0.3% and Italy’s FTSE MIB has lost 0.7% in early trading. 8.25am BSTJet engine manufacturer Rolls-Royce is the biggest faller on the FTSE 100 after revealing a £5.4bn loss and a plan to sell assets to shore up its creaking balance sheet. 8.04am BSTGood morning, and welcome to our live coverage of business, economics and financial markets.It is the day investors have been looking forward to throughout August: US Federal Reserve chair Jerome Powell will make a much anticipated speech in which he is expected to address the central bank’s future approach to monetary policy. There is an element of caution among investors as the Fed chairman, Jerome Powell, will deliver a speech on a monetary policy framework later today. Dow Jones and the S&P 500 futures are likely to experience higher volatility on the back of this. The future of the coronavirus stock market rally is highly dependent on the Fed’s monetary policy stance. Hurricane #Laura Advisory 29A: Extremely Dangerous Category 4 Hurricane Laura Makes Landfall Near Cameron Louisiana. Catastrophic Storm Surge, Extreme Winds, and Flash Flooding Occurring in Portions of Louisiana. https://t.co/VqHn0u1vgc Continue reading…
