Borrowing overshoots forecasts by £2.9bn as Labour plots nationalisation spree
Borrowing has overshot forecasts by £2.9bn, as Labour is plotting a nationalisation spree.
The UK borrowed £14.5bn in June, well higher than the £11.6bn predicted by the Office for Budget Responsibility.
Meanwhile, the debt burden remains at its highest level since the early 1960s at 99.5pc of gross domestic product, threatening to eclipse the total size of the economy.
The figures underline the challenges facing new Chancellor Rachel Reeves, who has pledged to have national debt falling within five years.
It comes as Labour has vowed to renationalise the rail network within five years.
While there would not necessarily be any upfront costs in taking on rail franchise contracts when they run out, the British taxpayer would be on the hook for operators’ debts, leases and liabilities, including pension fund pots.
Rail bosses have warned that costs would likely rise in the long term without the commercial focus of private firms.
04:44 PM BST
Zuckerberg: Trump was ‘badass’ and inspiring after being shot
The boss of Facebook owner Meta has declined to endorse either Donald Trump or Joe Biden and said he does not plan to be involved in the upcoming US presidential election, Bloomberg reported.
Mark Zuckerberg’s comments come as several influential figures in Silicon Valley, including Tesla boss Elon Musk and venture capitalists Marc Andreessen and Ben Horowitz, back Trump for president.
The billionaire tech executive said former President Trump’s immediate reaction after being shot was “badass” and inspiring, and helps explain his appeal to voters.
He said:
Seeing Donald Trump get up after getting shot in the face and pump his fist in the air with the American flag is one of the most badass things I’ve ever seen in my life.
On some level as an American, it’s like hard to not get kind of emotional about that spirit and that fight, and I think that that’s why a lot of people like the guy.
Thanks for joining us today. We’ll be back on Monday with the latest from the markets - and do join us over on our blog covering the global IT chaos today: CrowdStrike boss apologises for airport chaos on busiest day of the year.
04:35 PM BST
Copper prices fall amid China worries
Copper prices have dropped 7pc since Monday and are on track for their worst week in two years. It comes after a meeting of the Chinese Communist Party failed to set out an expected economic stimulus that could prop up demand.
Analysts at Australian bank ANZ said:
A lack of major policy shift in China weighed on sentiment. That left investors disappointed that there wasn’t greater focus on tackling structural issues in the economy, such as the beleaguered property sector.
04:26 PM BST
Euro zone bond yields rise as questions hang over ECB policy meeting
German government bond yields rose on Friday but headed for a second weekly decline, as economic data and the European Central Bank’s policy meeting supported expectations for a rate cut in September.
The ECB left rates unchanged on Thursday and did not provide any guidance for the future, with its president Christine Lagarde saying that a move in September was “wide open.”
Some ECB’s hawkish policymakers are reportedly open to a cut in September, provided incoming data confirm that disinflation is continuing.
Citi analysts said that Ms Lagarde’s communication “carefully struck a balance between hawkish and dovish pieces of information that have come to light recently, with the evident intention of not arbitrating between the two and of avoiding steering expectations either way”.
Data showed early this week that German investor morale deteriorated more than expected in July, registering its first fall in a year and suggesting the recovery in the euro zone’s largest economy will be bumpy.
Germany’s 10-year government bond yield, the euro area’s benchmark, was up at 2.468pc, from 2.432pc yesterday.
French 10-year yields were up at 3.130pc, compared to 3.073 yesterday, in line with the broader market.
04:10 PM BST
Dollar set for weekly rise as cyber outage unsettles investors
The dollar climbed in trading on Friday and was poised to snap a two-week streak of declines as a worldwide cyber outage that affected banks, airlines and broadcasters unnerved investors, although volatility in the currency markets remained in check.
A software update by global cybersecurity firm CrowdStrike crippled industries from travel to finance before services started coming back online after hours of disruption, highlighting the risks of a global shift towards digital, interconnected technologies.
The dollar index was on track for its second straight daily advance, putting the greenback on pace for its first weekly gain in three, bouncing back on recent US economic data and concerns about the technology outage.
Michael Brown, market analyst at Pepperstone in London, said:
It’s perhaps a result of the selling pressure earlier in the week, and at the tail end of last week, seeming rather over-done, particularly when one considers that US economic growth remains firm, and that while the Fed are set to cut in September, easing will still be relatively synchronised across G10 central banks.
Of course, the earlier tech issues may have sparked a bit of a flight to safety too, causing some knee-jerk dollar buying earlier in the day, with that strength then continuing into the afternoon session.
The dollar index, which measures the greenback against a basket of currencies, gained 0.16pc at 104.31 and was up 0.25pc on the week.
Sterling weakened 0.17pc at $1.2919, retreating further from a one-year high hit earlier this week, after data showed UK retail sales fell more than expected in June, as cooler weather deterred shoppers. For the week, the pound is off nearly 0.6pc and set to snap a three-week streak of gains.
04:07 PM BST
Oil tankers on fire after colliding close to Singapore
Two large oil tankers were on fire today after colliding near Singapore, the world’s biggest refuelling port, with two crew members airlifted to hospital and others rescued from life rafts, authorities and one of the tanker owners said.
Singapore is Asia’s biggest oil trading hub and the world’s largest bunkering port. Its surrounding waters are vital trade waterways between Asia and Europe and the Middle East and among the busiest global sea lanes.
The Singapore-flagged tanker Hafnia Nile and the Sao Tome and Principe-flagged tanker Ceres I were about 34 miles northeast of the Singaporean island of Pedra Branca on the eastern approach to the Singapore Straits, the Maritime and Port Authority of Singapore (MPA) said.
04:03 PM BST
Shoppers to receive £4m in refunds as regulator clamps down on misleading claims
Over £4m is to be refunded to 870,000 customers of the “deal of the day” website Wowcher after an investigation by the Competition and Markets Authority (CMA). The regulator said that Wowcher’s sales techniques risked giving a “misleading impression”.
The website’s use of countdown timers and the words “Running out!”, could create a false sense of urgency, the CMA said.
The CMA said that the vast majority of products on Wowcher’s site continued to be available at a similar price once the countdown timers had ended.
Sarah Cardell, chief executive of the CMA, said:
Pressure selling tactics – such as countdown timers and urgency claims that may create a false impression people must ‘Buy now!’ or miss out – can push shoppers into making snap decisions or spending more than they planned.
Our action will make a real difference for the millions of people who use Wowcher. Consumers who shop on the site can now have more confidence in the claims they see before parting with their hard-earned cash – and hundreds of thousands will soon see refunds, totalling a hefty £4 million.
We encourage all Wowcher customers to check their emails and texts from the company to keep an eye out for a credit alert – which they can exchange to cash should they wish.
Wowcher, which is owned by private equity giant Exponent, said:
We have voluntarily reached an agreement with the CMA following engagement around our marketing practices. We are pleased that our marketing claims were proven to be factually accurate and supported by real-time data, but are happy to take on the CMA’s feedback to further improve the clarity of our promotions and to enhance our customers’ experience.
03:59 PM BST
European stocks drop as investors become risk-averse
Today’s global IT outage led to “risk off sentiment with European stocks ending the week in negative territory”, according to a leading market analyst.
Risk-off is a finance term for when investors are more risk-averse and sell assets.
Axel Rudolph, senior market analyst at online trading platform IG, said:
Worse-than-expected UK retail sales and a global Microsoft Windows outage ... led to another negative session in global stock markets.
The FTSE 100 saw a second straight day of losses and the German DAX 40 index its fifth, both ending the week in the red as the European central bank kept rates on hold. Next week US earnings, especially in the recently battered tech sector, will be watched closely ahead of Friday’s Fed preferred PCE [personal consumption expenditures] inflation gauge.
03:39 PM BST
EU to impose tariffs on Chinese biodiesel in anti-dumping probe
The European Union is set to impose duties on Chinese biodiesel after finding it is being sold at unfairly low prices, in the latest in a string of trade cases against China.
The European Commission has proposed setting provisional tariffs of between 12.8pc and 36.4pc, according to a document published on Friday. They are due to be imposed in mid-August.
The investigation is due to continue until February, when definitive duties for five years could be set.
The EU has already set provisional duties for electric vehicles made in China over what it sees as unfair subsidies in its most high-profile case.
The European Biodiesel Board (EBB), which lodged the complaint, said earlier this month that a flood of biodiesel from China was having a devastating effect on EU production.
Chevron Renewable Energy Group had furloughed German workers, Shell had paused construction of a Dutch plant, BP was pausing a project in Germany and Argent Energy had closed a biorefinery, EBB said.
03:30 PM BST
Wall Street extends rout and CrowdStrike slumps on global tech outage
Wall Street’s main indexes fell on Friday, deepening a sell-off driven by tech stocks and mixed earnings, while investors assessed the impact of a global cyber outage that knocked down CrowdStrike’s shares to an over two-month low.
Cybersecurity firm CrowdStrike slumped 11.2pc after an update to one of its products appeared to trigger an outage that affected customers using Microsoft’s Windows Operating System, disrupting businesses across sectors.
Major US airlines ordered ground stops citing communication issues, with the Euronext exchange and London Stock Exchange Group’s Workspace news and data platform also facing issues. LSEG later said its data and services were back online.
Microsoft slipped 0.7pc to an over one-month low, on track for a four-day decline, driven by a rout in tech stocks.
Phil Blancato, of Ladenburg Thalmann Asset Management, said:
Any hint of bad news, because they (tech stocks) are so priced to perfection is going to hurt these stocks, both [CrowdStrike and Microsoft] are excellent companies and are worthwhile long-term holds.
The disruption comes after two grueling sessions for Wall Street, as investors assessed second-quarter earnings and a move away from megacaps that have primarily driven the equity rally in 2024.
Megacaps were largely mixed, with Nvidia and Amazon.com losing 1pc and 0.5pc, while Apple and Alphabet gained 1pc each.
Chip stocks also struggled for direction. US-listed shares of Taiwan Semiconductor Manufacturing were down nearly 1.5pc, while Arm Holdings jumped 3pc.
03:27 PM BST
Starmer appoints top consultant to manage relationships with the City
Sir Keir Starmer has appointed one of Britain’s best connected corporate advisers to deepen ties with business, the FT has report.
Varun Chandra, the managing partner of City consultancy Hakluyt will reportedly become Sir Keir’s special adviser on business and investment.
The report said that he has resigned from Hakluyt and will take a significant pay cut to take up the Downing Street role.
Mr Chandra received £2.1mn in the 12 months to June 2023 according to published accounts.
03:16 PM BST
UK to discuss fighter programme with Italy and Japan next week
Britain’s new defence secretary will meet with counterparts from Japan and Italy next week to discuss a joint fighter jet programme, as the new Labour government stressed its importance even as it declined to commit to it ahead of a defence review.
The three countries in December signed an international treaty to set up the Global Combat Air Programme (GCAP) - the first major defence industry collaboration merging the separate next-generation fighter efforts of the countries.
Defence giant BAE Systems is the UK’s industry lead on the programme.
There has been speculation that Britain’s Labour Party might not recommit to the programme in light of a review it announced this week into its armed forces, which will report back in the first half of 2025.
Luke Pollard, a junior defence minister, on Thursday said GCAP was “really important” but declined to commit it, saying he wanted George Robertson, the former Nato secretary general who is leading the review, to be free to consider all options without being pressured towards certain programmes.
BAE Systems is down 0.7pc in trading this afternoon during broader downward pressure in the FTSE 100, which is down 0.5pc.
03:09 PM BST
Trump vows to axe Biden’s electric car mandate on ‘day one’
Donald Trump has vowed to unwind government support for electric cars from “day one” if he regains control of the White House. Matt Oliver reports:
Ahead of November’s presidential election, the Republican nominee said he would scrap rules that will gradually outlaw petrol, diesel and hybrid vehicles, while also describing electric car subsidies as an “incredible waste”.
Mr Trump has previously threatened to gut President Biden’s Inflation Reduction Act, which provides subsidies of $7,500 per electric car, and has been a vocal critic of emission rules designed to phase out combustion engines over the next decade or so.
Speaking at his party’s national convention, he told supporters: “I will end the electric vehicle mandate on day one, thereby saving the US auto industry from complete obliteration which is happening right now and saving US customers thousands and thousands of dollars per car.”
03:00 PM BST
Small caps down today after hopes of major rally
Small cap indexes in the US and UK are down today as investors try to make sense of potential interest rate cuts and what they mean for stocks.
The Russell 2000 index of small-cap US businesses is down 1.9pc today - despite being up 9pc over the past month. Meanwhile, Britiain’s Alternative Investment Market All-Share index has fallen 0.44pc today, but is up 0.9pc over the past month.
Tech stocks were being sold in favour of recent laggards in the small-cap space earlier in the week.
Chris Beauchamp, chief market analyst at online trading platform IG, said:
The Fed has been keen to pour cold water on overeager expectations on rate cuts, the NY Fed’s Williams being out and about [on Wednesday] saying that July was too early for a rate cut, but he left the door firmly open for a September move.
02:50 PM BST
Aerospace giants return to Farnborough hobbled by factory woes
A humbled aerospace industry will hold its annual festival next week, while struggling to meet demand.
For decades a venue for planemakers led by Airbus and Boeing to boast about billions of dollars of orders, the July Farnborough Airshow is likely to be overshadowed by growing airline frustration over plane shortages and delays.
Carriers like Japan Airlines are said to be close to firming up recent tentative orders, and Qatar Airways, Korean Air and Turkish Airlines have all said they are shopping for jets.
But, despite some deals, concerns about supply chains and factory performance are set to eclipse the usual triumphalism.
Boeing in particular is expected to adopt a muted tone as it wrestles with a corporate crisis following the mid-air blowout in January of a door plug blamed on missing bolts.
After widespread quality snags such as poorly tightened bolts, some say the appetite is for more torque and less talk.
Planemakers do have something to celebrate, with Boeing’s delayed 777X starting certification test flights and Airbus winning approval for its A321XLR.
But competitors like China’s Comac, Brazil’s Embraer and the futuristic curved Jet Zero are alert for opportunities.
02:45 PM BST
Markets subdued as investors mull future direction
Global markets are down mostly today. France’s Cac 40 is down 0.6pc while Germany’s Dax is down 0.7pc. The FTSE 100 is down 0.5pc.
In the US, investors are said to be mulling whether to continue betting on Big Tech winners and whether the US stock market rally will now broaden out as interest rates are cut.
The S&P 500 is, however, up 0.2pc after opening slightly in negative territory, while the Dow Jones is down 0.3pc. The Nasdaq Composite, which opened down, is currently up 0.1pc.
02:22 PM BST
New boss for Harland & Wolff as its races to secure funding
Troubled Belfast shipbuilder Harland & Wolff has told investors that it plans to appoint Russell Downs as its new interim executive chairman as races to refinance the business.
Mr Downs is described as having a “30-year career in a traditional big four accountancy practice”.
The company also revealed that the Department for Business and Trade “has notified the Company that HM Government will not be proceeding with the Company’s application for the [Export Development Guarantee] facility at this time.
“The company has therefore expedited discussions with Riverstone Credit Management ... in order to secure alternative new debt facilities to support the near-term working capital needs of the business following its recent significant revenue growth. These alternative financing arrangements are expected to close within the next few days.”
02:13 PM BST
Biden administration claims anti-woke Florida banking law is a national security risk
The Biden administration is warning that laws being formed by US states that restrict banks from considering environmental, social and governance (ESG) factors could harm efforts to address money laundering and terrorism financing.
Conservative Republicans such as Ron DeSantis, the Florida governor, have sought to block environmental and socially conscious standards for investing, saying that such initiatives can lead to unfair discrimination based on political beliefs and harm legitimate businesses.
They say that considering environmental, social and corporate-governance issues, or ESG, before deciding whether to invest is woke behavior gone amok.
The US Treasury Department sent a letter to lawmakers, seen by the Associated Press, which said that the Florida law could undermine the work of federal agencies, heightening “the risk that international drug traffickers, transnational organised criminals, terrorists, and corrupt foreign officials will use the US financial system to launder money, evade sanctions, and threaten our national security.”
02:00 PM BST
Interest rates and inflation propel bankrupcies higher
England and Wales recorded the second-highest number of company insolvencies since 2009 last month, government figures showed, reflecting high interest rates and increased costs caused by rapid inflation in 2022 and 2023.
June saw 2,361 company insolvencies on a seasonally adjusted basis, the Insolvency Service agency said, 17pc more than a year earlier and the most since May 2023.
The high total partly reflects an increase in the overall number of companies. The percentage of companies declaring insolvency was slightly higher earlier in 2024 and is well below rates in the years after the 2008-09 global financial crisis.
Construction, hospitality and retail were among the hardest-hit sectors, accountants said.
Insolvencies fell sharply during the Covid pandemic itself, due to £79bn of government-backed loans to businesses and a halt to court insolvency cases which ended in April 2022.
David Hudson, a restructuring partner at FRP Advisory, said:
Insolvency levels are climbing again as historic cost pressures continue to feed through and businesses contend with what are still challenging conditions, marked by persistently high interest rates.
Tom Russell, of insolvency and restructuring trade body R3, said:
The monthly and yearly increase in corporate insolvencies is driven by an increase in creditors’ voluntary liquidations – a process usually used by smaller businesses, and which is often driven by cashflow problems or difficulties with access to finance.
Compulsory liquidation numbers have also risen to their second-highest level since January 2021 and suggests that creditors are taking a much tougher stance this financial year.
But there are some positive signs in today’s figures – company voluntary arrangement and administration numbers have increased compared to last month, and administration numbers are higher than this time last year and in June 2019.
The profession will always try to rescue businesses wherever it possibly can, and this trend suggests that there are an increasing number of businesses for whom this is an option and whose secured creditors are willing to support rescue proposals.
Scotland and Northern Ireland - which have different insolvency laws to England and Wales - reported a 4pc annual fall and a 13pc annual rise in insolvencies respectively in June.
01:54 PM BST
Drinkers turn their backs on Champagne as they tighten their belts
France’s champagne producers on Friday called for a cut in the number of grapes harvested this year after sales of the wine fell more than 15pc in the first half of the year as customers tightened their belts due to an uncertain economy.
Champagne shipments in the first half of 2024 reached 106.7m bottles, down 15.2pc from a particularly high level recorded over the same period of 2023 and closer to the level in 2019.
David Chatillon, chairman of the Champagne Houses lobby, said:
The gloomy global geopolitical and economic situation, as well as generalised inflation, is weighing on household consumption. Champagne also continues to suffer the consequences of overstocking by retailers in 2021 and 2022.
A statement from the Comité Champagne trade association said that this year’s harvest in Champagne had suffered from poor weather since the start of the year, including frosts and wet weather which increased mildew fungus attacks in its vineyards.
It set a maximum yield of grapes that can be harvested at 10,000 kg per hectare, down from 11,400 kg/ha in 2023.
As opposed to other wine production, most champagne bottles are a mix between several vintages, using stocks from previous years. These stocks are replenished during good years and can compensate for poor harvests.
It is not the first time that the region has suffered severe losses due to a combination of frosts and mildew damages. In 2021, the yield had shed 25pc compared to the five-year average with the harvest falling to a 35-year low.
01:49 PM BST
London’s FTSE 100 drops as commodity prices and retail sales hit the index
London stocks tumbled on Friday as investors assessed a fall in domestic retail sales in June, while a downtick in commodity prices further dampened sentiment.
The blue-chip FTSE 100 index is down 0.5pc, set to end the week lower. The mid-cap FTSE 250 has fallen 0.7pc.
Precious metal miners weighed heavily on the index. Fresnillo has slipped 3.8pc, while Anglo American is down 2.1pc, in sync with spot gold prices that declined more than 1pc.
Industrial metal miners fell after copper prices hit an over three-month low in the absence of Chinese stimulus measures.
Investors saw domestic retail sales data that showed a 1.2pc drop in June against an estimated 0.4c fall.
The numbers follow recent data that indicated slowing wage growth in Britain and inflation at the Bank of England’s 2pc target.
Sam North, analyst at investment platform eToro, said:
UK retail sales showed a significant decline, due to factors such as election uncertainty, adverse weather, and reduced footfall.
All sub-sectors experienced declines, particularly department stores, clothing and footwear retailers, and furniture stores.
01:35 PM BST
Titanic shipbuilder confirms CEO exit
Harland & Wolff has confirmed that its chief executive John Wood is stepping down with immediate effect, amid a scramble for cash.
The company behind the Titanic said Mr Woof “will be taking a leave of absence from his role as CEO with immediate effect”.
It also confirmed that the Government had confirmed it was not approving a partial bailout. Harland & Wolff said it had sped up discussions with Riverstone Credit Management to try to secure new debt facilities.
It follows a row over the plans for a £200m loan guarantee, which Rachel Reeves had been warned would put the UK on a collision course with Brussels and risked falling foul of EU state aid rules.
12:51 PM BST
AmEx buoyed by more affluent customers
Credit card giant American Express has upped its forecasts for the full year as its richer customers shielded it from any spending downturn.
AmEx said it was now expecting to post earnings per share of between $13.30 and $13.80 compared to earlier forecasts for between $12.65 and $13.15.
Chief executive Stephen Squeri said: “Increased scale, combined with our premium, high credit quality customers, our well-controlled expense base and our successful investments... fuels the earnings power of the core business.”
Despite this, AmEx said it would be spending more on marketing in the coming months versus last year to avoid any slowdown.
Its marketing expenses are expected to be around 15pc higher this year.
12:05 PM BST
Net debt hits highest level since 1962
The Office for National Statistics figures, released this morning, made for somber reading for the new Labour government, with analysts saying the new chancellor now “faces the daunting task of funding the new government’s agenda, while maintaining public finances on a sustainable footing”.
According to the figures, the UK’s national debt as a percentage of GDP hit its highest level since 1962, even surpassing that seen during the coronavirus pandemic. The ONS estimated that net debt was worth around 99.5pc of GDP in June.
Public sector net debt excluding public sector banks was £2,740.0 billion at the end of June 2024, provisionally estimated to be around 99.5% of the UK's annual gross domestic product. pic.twitter.com/lUa5Pl7tOP
— Office for National Statistics (ONS) (@ONS) July 19, 2024
11:33 AM BST
‘This government has inherited the worst economic circumstances since the second world war’
On the borrowing figures out earlier this morning, Darren Jones, chief secretary to the Treasury, has been giving his view.
He said: “Today’s figures are a clear reminder that this government has inherited the worst economic circumstances since the second world war, but we’re wasting no time to fix it.
“Fixing the economy’s foundations and restoring stability is the only way we can create growth and put more money back into people’s pockets across the country. That’s why we’ve introduced our budget responsibility bill, which will ensure that no future government can play fast and loose with the public finances.”
11:17 AM BST
Hargreaves Lansdown pushes back takeover deadline
Hargreaves Lansdown has pushed back the deadline for a takeover bid for a second time amid “ongoing” talks with private equity firms.
The retail investment platform said the deadline on the takeover discussions would now come next month.
A group of private equity firms, which includes buyout giant CVC as well as Nordic Capital and Abu Dhabi Investment Authority subsidiary Platinum Ivy, made a £5.4bn approach last month.
Hargreaves Lansdown’s board said it was willing to recommend the proposal.
Talks are, however, still ongoing over how the deal will be structured. The deadline has already been pushed back once before.
10:58 AM BST
Baby Reindeer and Bridgerton help Netflix to record revenues
Netflix last night released its latest trading figures, showing British black comedy Baby Reindeer and the new series of Bridgerton helped drive record revenues of $9.6bn (£7.4bn).
As Matthew Field writes:
Profits for the three months ending in June climbed by 44pc to $2.1bn compared to the previous year, while the US technology business added more than 8m new subscribers, beating Wall Street expectations with a total of 277.6m paying viewers.
Executives at Netflix hailed the surprise success of Baby Reindeer, which has racked up more than 88m views since it was released in April.The subscription boost comes after Netflix cracked down on so-called “password sharing”, blocking subscribers from lending their accounts to friends and family.
10:26 AM BST
Harland & Wolff boss resigns, according to reports
The boss of Titanic maker Harland & Wolff has reportedly stepped down as the Belfast-based shipbuilder holds talks over government support.
According to the Financial Times, John Wood has resigned from the company, amid concerns that it would not receive a taxpayer bailout.
Earlier this week, it emerged that Rachel Reeves had been warned againat rescruing the struggling shipyard. She had been weighing up whether to approve support for Harland & Wolff, which otherwise risks being unable to deliver a £1.6bn Navy contract.
Harland & Wolff did not immediately respond to requests for comment.
10:13 AM BST
Ofcom bans surprise price rises on mobile phone and TV bills
Ofcom is banning mobile phone and pay TV providers from pushing through surprise price rises in the middle of contracts.
The regulator said it was stamping out the practice, forcing companies to tell customers if they would be increasing the price mid-contract at the point of sale.
The change will come into force for new deals from January 17.
Cristina Luna-Esteban, Ofcom’s telecoms policy director, said: “People need to have certainty about their monthly outgoings. But that’s impossible if you’re tied into a contract where the price could change based on something as hard to predict as future inflation.
“We’re stepping in on behalf of phone, broadband and pay TV customers to stamp out this practice, so people can be certain of the price they will pay, compare deals more easily and take advantage of the competitive market we have in the UK.”
08:01 AM BST
Good morning
Public sector borrowing has shot past official forecasts in a blow to Sir Keir Starmer’s hopes to get the nation’s finances under control.
5 things to start your day
1) Starmer told to let tens of thousands of pensioners foot bill for social care | Prime Minister urged to delay care cost reforms as councils face £30bn funding blackhole
2) Slash stamp duty for pensioners to boost housing market, Reeves urged | Exempting ‘last-time buyers’ would spark market activity and encourage downsizing, say economists
3) Britain to create EV battery material to power faster charging and longer range | UK opens first factory able to create ‘breakthrough’ LFP cathode powder
4) Baby Reindeer and Bridgerton help Netflix to record revenues | The streaming giant adds more than 8m new subscribers after cracking down on so-called ‘password sharing’
5) Ambrose Evans-Pritchard on Trump trades: short Europe, short oil, short humanity – and brace for a deflationary bust | The steep price of a Republican victory will fall particularly heavily upon Ukraine and Taiwan
What happened overnight
The major American stock indexes fell yesterday. The S&P 500 lost 0.8pc, closing at 5,544.59. The Dow Jones Industrial Average of 30 leading US companies fell 1.3pc, closing at at 40,665.02. Meanwhile, the Nasdaq Composite index, which contains main leading tech firms, lost 0.7pc, closing at 17,871.22.
Meanwhile, the yield on benchmark10-year US Treasury bonds rose to 4.19pc from 4.16pc late on Wednesday.
Asian equities and currencies declined as economic and geopolitical risks overwhelmed the market’s optimism surrounding interest-rate cuts.
The MSCI Asia Pacific Index was set for its biggest weekly drop in three months as benchmarks in South Korea and Hong Kong slumped more than 1pc.
Chinese stocks fluctuated as the Third Plenum failed to convince investors about the economy’s new growth impetus. US futures edged higher after the S&P 500 fell 0.8pc Thursday.