Yahoo Finance Tube workers announce fresh strike in August - live updates
UK to become shareholder in French company accused of broadcasting Russian propaganda
FTSE 100 flat
Jeremy Warner: Liz Truss attacks our economic institutions at the country's peril
London Undeground workers are set to strike again next month amid a long-running dispute over jobs and pensions.
Members of the Rail, Maritime and Transport union (RMT) will walk out on August 19.
The RMT is also striking on Network Rail and 14 train operators on August 18 and 20, alongside members of the Transport Salaried Staffs Association on the same days at seven rail companies.
It is expected to add to the 'summer of discontent' as workers in various sectors launch industrial action. British Airways pilots are lining up for a ballot after unions secured pay increases for check-in and baggage staff.
The RMT said the new Tube strike has been prompted by Transport for London's "refusal" to share details of a draft Government proposal they received regarding funding of the transport system in the capital.
The union said it is giving TfL until August 2 to give assurances on jobs, pensions and working conditions.
RMT general secretary Mick Lynch said: "Our members will once again take to picket lines in this important dispute over pensions, jobs and conditions.
"They have been messed around by TfL and Mayor Sadiq Khan. And to add insult to injury, they have not seen the detail of this funding letter from Government.
"Unless there can be assurances made about jobs, pensions and detrimental changes to working conditions, then our strike on August 19 will go ahead."
06:10 PM
Wrapping up
That's all from us today, thank you for following! Before you go, have a look at the latest stories from our reporters:
‘Resilient’ Russian economy upgraded despite war and sanctions
Holidaymakers face another summer of disruption, Heathrow chief admits
UK to become shareholder in French company accused of broadcasting Russian propaganda
Covid restrictions making this summer's travel chaos worse, MPs claim
Greenpeace accused of siding with Putin and putting British security at risk
06:09 PM
Adidas warns on profits
Adidas had worse luck as it issued a profit warning. Sales were hit by lockdowns and consumer boycotts in China, offsetting strong momentum in its key western markets.
The German athleisure designer said although its second-quarter results are “somewhat ahead of expectations” with strong growth in Western markets, the recover in Greater China was slower than expected.
Concerns over Covid haven’t gone away in China with lockdowns frequent and mass testing still underway. Retailers have been affected by store closures and even when malls are open people need a 72-hour PCR test to enter.
05:48 PM
Louis Vuitton owner posts jump in sales
LVMH sales jumped in the second quarter as the owner of Louis Vuitton bags and Dom Perignon Champagne continued to thrive despite lockdowns in China and soaring inflation.
Revenue in the French company’s key fashion and leather goods unit soared 19pc, helped by brands such as Louis Vuitton, Fendi, Dior and Celine.
The world’s largest seller of luxury goods followed Richemont and Burberry in posting results that show the appetite for luxury goods remains even as prices increase, the global economic outlook deteriorates, and China continues to pursue its Covid-zero policy.
Consumers in the US and Europe have stepped up spending on luxury items as China remains subdued. LVMH’s update also demonstrates that well-heeled customers are not yet feeling the effects of a global surge in inflation that’s causing shoppers with smaller budgets to rein in spending at more affordable retailers such as Walmart.
05:28 PM
FTSE 100 flattens
The FTSE 100 was subdued today as worries about an energy crisis in the continent and a weakness in British retail and banking stocks offset gains in commodity-linked stocks and an upbeat sales forecast from Unilever.
The blue-chip index was flat at close after rising as much as 0.8pc in early trading, with oil major Shell and miner Glencore among the top boosts as commodity prices climbed on the back of a softening dollar.
Unilever jumped 2.9pc after it raised its full-year sales guidance as it hiked prices to counter soaring costs.
"With the cost of living soaring, consumers are really having to make that choice around where they spend their pound/euro/dollar," said Nicola Morgan-Brownsell, fund manager at Legal & General Investment Management.
"The majority will have to be on maintaining the basics in life."
05:05 PM
Drax on track for carbon capture at Yorkshire plant in five years
Drax is pushing ahead with plans for under sea storage of carbon emissions from its Yorkshire power station as it prepares to phase out its last coal-burning plants. Matt Oliver reports:
Under the proposed carbon capture scheme, up to eight million tonnes of CO2 produced from smokestacks at the plant in Selby will be sequestered away by pipelines to a storage site in the southern North Sea.
On Tuesday, Drax confirmed it remained on course to begin construction on the project in 2024, subject to a final investment decision, and begin capturing emissions from 2027.
By 2030 emissions from two biomass units will be captured, making the site “carbon negative”.
Carbon capture is a nascent technology that eco activists have derided as a risky and unproven “scam”.
However, the Government has said its use is likely to be necessary - along with a raft of other technologies - for the UK to meet its “net zero” climate goals by 2050.
04:45 PM
Lloyds to close 66 bank branches
Lloyds Banking Group will close 66 bank branches between October and January of next year.
Some 48 Lloyds Bank branches and 18 Halifax branches will shut down as part of broad trend which has seen big banks ditch the high street and switch to increased online banking.
The additional closures come just two months after the lending giant unveiled plans to shut 28 branches between August and November this year.
Lloyds said all staff will have the opportunity to move to a different branch or another part of the business and there will be no compulsory or voluntary redundancies.
Visits to the branches due to shut have fallen by 60pc in the last five years on average and by 85pc in some locations.
04:25 PM
Warhammer maker hit by extra Brexit costs
Games Workshop has been hit by more than £3m in extra supply chain costs due to Brexit but still posted higher profits for the past year.
The Warhammer maker said it was struck by £9.2 million in extra freight and transport costs over the year to May, £3.4m of which caused by Brexit. Staffing costs increased by £2.5m.
Profits were still 4pc higher at £150.9m while revenues jumped 12pc to £414.8m. "It's been another astonishing year," said chief executive Kevin Rountree.
04:10 PM
Handing over
That's all from me for today – thanks for following! Handing over to Giulia Bottaro now.
04:03 PM
Central banks distracted by climate change lost focus on inflation
Central banks have been distracted by topics such as climate change and are to blame for soaring inflation after fumbling policy during the pandemic, a top former official has said.
Louis Ashworth reports:
Monetary authorities made “errors of judgement” in response to Covid-19 and have become “distracted by extraneous political objectives”, said Graeme Wheeler, former Governor of the Reserve Bank of New Zealand.
In a report published by the New Zealand Initiative think-tank, Mr Wheeler – who led the RBNZ between 2012 and 2017 – and Bryce Wilkinson, a senior research fellow at the think tank, said central banks moved too slowly to fight inflation because they “took their eye off their core responsibilities and focused on issues that were much less central to their roles”.
“Confident in their ability to maintain low inflation, central banks in recent years began diverting resources to other topics such as climate change and inequality… Such issues bear little if any relationship to the reasons why central banks exist – ensuring price stability and financial stability,” they wrote.
Mr Wheeler said central bankers “need to reflect deeply” on the recent management of policy.
“Central bankers need to learn from their misjudgements because the social, economic, and political consequences of major mistakes run deep and the trust and confidence that the public have in them can be readily depleted,” he wrote.
03:34 PM
UK begins drought planning after heatwave
The UK is enacting the early stages of drought plans following a record-breaking heatwave.
There are so far no plans for curbs on water use but regulators and water companies are working to manage water levels, the Environment Agency said.
This includes operating water transfer schemes to allow rivers to be artificially maintained.
The agency added that farmers in areas facing prolonged dry weather will be given more assistance and water companies will draw up potential drought plans.
Temperatures last week topped 40C for the first time ever, igniting a spate of fires that burnt through grassland and destroyed houses.
The EA said nowhere in England was currently in a drought, and water companies were maintaining good reservoir storage for summer demand.
03:15 PM
McDonald's profits slump amid Russia exit
Profits at McDonald's have nearly halved after it took a heavy financial hit exiting Russia, writes Hannah Boland.
McDonald's posted net income of $1.2bn (£1bn) for the three months to the end of June, compared to $2.2bn a year earlier. It took a $1.2bn charge from the sale of its Russian business during the period, taking the total cost of exiting Russia to $1.3bn.
Alexander Govor, who was McDonald's licensee in the market, recently bought its fast food restaurants in Russia. Terms of the deal were not disclosed.
Mr Govor has rebranded the outlets under the name Vkusno & tochka, which translates as 'Tasty and that's it'. The restaurants reopened last month.
McDonald's is one of many major Western brands to quit the country in response to Russia’s invasion of Ukraine. Its exit was seen as a landmark moment in the collapse of relations between the West and Russia, as the fast food company opened its first restaurant in Moscow shortly before the collapse of the Soviet Union.
McDonald's revenues were down 3pc in the second quarter largely due to unfavourable foreign exchange movements.
02:59 PM
Putin profits from energy crisis as war batters European growth
Vladimir Putin is profiting from the energy crisis as ballooning oil and gas prices prop up Russia’s economy while the war in Ukraine batters European nations.
Tim Wallace has more:
The International Monetary Fund slashed its growth forecasts for almost every country as energy shortages, food costs, higher interest rates and China’s Covid lockdowns sap the economy to leave the world “teetering on the edge of a global recession”.
Britain is still expected to be one of the fastest growing rich countries this year, with GDP expanding by 3.2pc in 2022.
However, it is on course to be the weakest performer in the G7 next year with growth of just 0.5pc in 2023, less than half the 1.2pc expansion which the IMF had predicted back in April, as Britain suffers one of the highest inflation rates of any developed economy, peaking at 10.5pc later this year.
By contrast the IMF upgraded its predictions for Russia’s growth as the warmongering nation capitalises on its control of key energy supplies.
02:43 PM
Wall Street opens lower as Walmart warning rattles market
Wall Street's main indices have opened lower after a profit warning from Walmart heightened fears in the retail sector that consumers are cutting back on discretionary spending in the face of decades-high inflation.
The benchmark S&P 500 fell 0.3pc, while the Dow Jones was down 0.1pc. The tech-heavy Nasdaq fell 0.7pc.
02:22 PM
THG dealt $1.6bn blow as SoftBank investment falls apart
THG has been dealt a $1.6bn blow as a high-profile investment with Softbank fell apart, writes Laura Onita.
The Japanese conglomerate became a major investor in Matthew Moulding’s THG last year and it had the right, but not the obligation, to buy a 20pc stake in Ingenuity, its white label technology business, in exchange for $1.6bn.
THG told investors today that the deal was terminated by mutual agreement, blaming the decision on harsh macroeconomic conditions.
Shares edged down before they recovered in afternoon trading.
Speculation has been mounting for months that Softbank, one of the world’s largest investors, would not exercise the option after a slump in the share price.
The group, which was once valued at more than £8bn and owns Lookfantastic and Myprotein, is now worth £870m.
02:01 PM
EU says gas deal should see it through 'average' winter
A deal agreed by EU countries to curb their gas use should yield enough savings to last through an average winter if Russia turns off the taps, the bloc's energy chief has said.
Kadri Simson told reporters: "Our initial calculations indicate that even if all the exemptions were used in full, we would achieve a demand reduction that would help us safely through an average winter."
01:36 PM
Watchdog takes legal action against Monzo
Digital bank Monzo has been ordered to make urgent changes to its business after “repeatedly” failing customers who were closing their accounts.
Patrick Mulholland has the story:
The Competition and Markets Authority has served Monzo with “legally binding directions enforceable in court”, ordering it to improve the way it handles departing customers.
The app-only lender must ensure that every customer who closes their accounts receives copies of their transaction history. The order comes after the watchdog found over 13,000 departing customers weren’t sent this data between May 2021 and March 2022.
Banks are required to make this information readily available because it can affect customers’ ability to access financial products such as mortgages.
“It’s simply not good enough for a major bank like Monzo to repeatedly fail its customers by not following clear rules,” said Adam Land, senior director at the CMA.
“Having a record of your financial transactions can act as important evidence needed to secure a loan or mortgage – so Monzo’s failure to provide these put an unnecessary obstacle in the way of thousands of customers.”
At present, the CMA cannot impose financial penalties for breaches of this kind, but it has called for the power to do so.
01:14 PM
Strikes force Lufthansa to cancel Frankfurt and Munich flights
Lufthansa will cancel almost all flights from its main hubs in Frankfurt and Munich tomorrow due to a planned strike by ground crew.
Europe's largest airline will cancel more than 1,000 flights in the two cities, warning that the disruption may last until the weekend.
Lufthansa warned that passengers would probably not be able to rebook if their flights are cancelled.
01:04 PM
EasyJet will survive as an independent airline, boss insists
EasyJet will survive as an independent airline, its boss has insisted, as the budget carrier revealed a £133m loss from the recent travel chaos.
Oliver Gill has more:
Chief executive Johan Lundgren attacked Michael O’Leary, his counterpart at Ryanair, over claims easyJet would be bought by a rival.
Mr O’Leary told the Telegraph last October that it was certain easyJet would be bought by either British Airways or Air France, in the weeks that followed a failed takeover bid by Wizz Air.
EasyJet’s share price has halved to a 10-year low since the Irish executive’s comments.
But Mr Lundgren today dismissed his rival’s comments as “nonsense speculation by a competitor”.
Mr Lundgren said that easyJet would seek compensation from airports such as Gatwick for capping flight numbers this summer in a bid to get a grip on travel chaos.
12:17 PM
RMT stands by strike action
The RMT has stuck by its decision to reject a new pay offer. Here's their statement:
We were optimistic about making enough progress to suspend strike action.
However, that evaporated when Network Rail hardened their position on attacking our members conditions of work and even threatening to put compulsory redundancies back on the table.
12:15 PM
More misery as unions shun pay offer
There'll be more misery this week as rail passengers are faced with another wave of strikes. But the chaos could have been avoided, as my colleague Oliver Gill reports:
More than 40,000 workers across Network Rail and 14 train operators will walk out on Wednesday in a dispute over pay and working conditions.
Only one in five services are expected to run and passengers have been urged not to travel unless necessary.
In a “final pay offer” made by Network Rail to unions two weeks ago, the RMT was offered a 4pc pay rise, backdated to the start of 2022.
Next year they were offered a further 2pc pay rise, plus an additional 2pc if staff agree to ditch archaic working practices such as demands for 12 minutes “walking time” to get to work.
Last Friday’s deal is understood to have made the 2023 pay rise of 4pc unconditional.
Drivers union Aslef will go on strike on Saturday, in its first concerted action for more than two decades.
Further strikes by the RMT as well as barrier and ticket office union the TSSA are planned for August 18 and 20.
12:07 PM
Octopus Energy raises another $225m from Canadian fund
Octopus Energy has raised another $225m (£188m) from Canada's top pension fund to help support its move into renewable energy.
The Canada Pension Plan Investment Board made the commitment on top of an initial $300m announced in December.
The new funding closes Octopus' latest round at $500m, including investments from existing backers.
Octopus said it plans to use the money to improve Kraken, its energy tech platform that's licensed by other supplies.
11:57 AM
US futures slip ahead of Fed meeting
US futures were on the back foot this morning amid caution in the market ahead of the Federal Reserve's meeting.
Traders are braced for a widely-expected 75 basis point rate rise tomorrow as the Fed tries to keep a lid on inflation, as well as major results from the likes of Apple and Google owner Alphabet.
They’re also assessing risks including ongoing disruptions to European gas supplies from Russia and China’s Covid curbs and property woes.
Futures tracking the S&P 500, Dow Jones and Nasdaq all fell 0.5pc.
11:42 AM
EU reaches deal on gas cuts
EU nations have reached an agreement to cut their gas use by 15pc through the winter amid rising fears that Putin will turn off the taps completely.
Energy ministers meeting in Brussels gave the green light to a proposal to voluntarily cut their gas usage over the next months.
The plan makes the 15pc target mandatory under an emergency situation – such as a severe disruption to flows from Russia – albeit with certain opt-outs for particularly vulnerable nations or those integral to the bloc’s network as a whole.
Hungary was the only country that voted against the rules, according to Luxembourg’s foreign minister Claude Turmes.
The rapid pace of agreement underscores fears in the bloc about gas supplies this winter.
Flows through the key Nord Stream pipeline are set to drop to around 20pc of capacity from tomorrow after another cut by the Kremlin.
🔋 #TTE Energy | 👏 This was not a Mission Impossible! Ministers have reached a political agreement on gas demand reduction ahead of the upcoming winter.#EU2022CZ pic.twitter.com/XBnKuTs75W
— EU2022_CZ (@EU2022_CZ) July 26, 2022
11:30 AM
Mirror publisher hit by soaring print costs
The publisher behind the Mirror and Express has seen its profits tumble by nearly a third as it warned on soaring newsprint inflation and lower advertising demand.
Profits at Reach fell by 31.5pc in the first half of the year – down from £68.9m to £47.5m. Revenue also dropped 1.6pc, with print revenue down 3.9pc.
Bosses said rising energy prices were fuelling all-time high newsprint costs and said the outlook for the second half of the year was just as bleak.
They also said that a 9.9pc fall in advertising revenue was partly driven by the war in Ukraine, which exacerbated a slowdown in demand for brand advertisements.
Shares plunged by more than 27pc following the results.
Jim Mullen, chief executive of Reach, said:
While the macro-environment is naturally presenting challenges, we're committed to investing in the data and digital capabilities that are shaping the future of our business.
We have acted swiftly to address the headwinds facing the business and expect the further cost efficiencies and cover price increases to mitigate the impact of newsprint inflation and reduced advertiser demand which are affecting the whole sector.
11:13 AM
Gas prices rise further after new Russian supply cut
Natural gas prices have surged to the highest level in more than four months as the region braces for a further reduction in Russian supplies.
Benchmark European prices rose as much as 7.9pc – extending yesterday's 10pc increase.
That came after Gazprom said it will slash supplies through the Nord Stream pipeline to just 20pc of capacity from tomorrow.
Moscow has been steadily reducing flows through the pipeline over the last month citing technical reasons, driving up prices and fuelling fears of shortages this winter.
10:55 AM
JD Sports taps former B&Q executive as new boss
JD Sports is said to have lined up a former executive at B&Q to take over as its new boss.
Britain's biggest sportswear retailer is close to finalising the appointment of Regis Schultz, with the move set to be announced in the coming days, Sky News reports.
If confirmed, Mr Schultz will become the long-term replacement for Peter Cowgill, who stepped down last month in the wake of several controversies, including a clandestine car park meeting with Footasylum's boss.
He will join from Al-Futtaim Group, a Dubai-based conglomerate which operates a substantial retail business spanning the Middle East and Asia.
Prior to this, Mr Schultz held several senior jobs at B&Q – which is owned by FTSE 100 group Kingfisher – and also ran French supermarket chain Monoprix.
10:45 AM
Drax profits jump even as power output declines
Drax Group has beaten expectations for profit in the first half of the year as it cashed in on soaring prices even though it produced less energy.
The electricity generator, which has been spared from a windfall tax, saw its biomass generation drop by almost 20pc compared to the same period last year.
Still, the company reported profits of £225m – well above forecasts.
Shares in Drax rose 1.8pc after an initial drop. The company has jumped 27pc this year thanks to a huge surge in wholesale energy prices.
10:23 AM
UBS misses profit expectations by $300m
UBS' profits for the second quarter fell $300m (£249m) short of expectations as it felt the impact of a global market sell-off.
The Zurich-based bank reported net profit of $2.1bn, compared to analyst estimates of $2.4bn.
The quarter was impacted by lower revenues at the key wealth management business, outflows in asset management and investment banking results that also fell short.
Ralph Hamers, chief executive of UBS, described the quarter as one of the most challenging periods in the last decade, adding that the outlook "remains uncertain".
10:08 AM
Summer picnics boost grocery sales
UK grocery sales have enjoyed a boost over the last month as Brits stocked up on picnic items during heatwave.
Sales rose 4.4pc in the four weeks to July 16, driven by fresh food and beverages as a desire for al fresco eating outweighed surging inflation.
Still, volume sales were down 4.1pc over the period as households tightened the purse strings for their weekly shop.
Discounters Lidl and Aldi were the biggest winners, with sales rising 14.8pc and 5.4pc respectively as more people switched to cheaper stores.
Tesco sales rose 2pc and both Asda and Sainsbury's posted 0.3pc growth, according to Nielsen. Morrisons sales fell 4.8pc, while Ocado dropped 1.2pc.
Mike Watkins at Nielsen said:
The worrying pressure on sales volumes is expected to continue throughout the summer period and exacerbated due to the holidays, with more Brits travelling abroad than last year.
09:52 AM
Heathrow warns travel cap may stay into next year
Heathrow has warned that its cap on flights might stay in place for at least another year as it continues to grapple with flight chaos.
John Holland-Kaye, chief executive of Heathrow, told Bloomberg: "This is not going to be a quick fix.
"It's absolutely possible that we could have another summer with a cap still in place. It's going to take 12 to 18 months, and not just at Heathrow."
The airport introduced a daily passenger limit of 100,000 earlier this month and said at the time it would stay in place for two months.
09:43 AM
Pound edges higher as rate rise fears ease
Sterling has risen to more than two-week highs as traders scaled back their expectations of Bank of England interest rate rises amid a worsening economic outlook.
A poll of economists by Reuters predicted that the Bank of England will shy away from a bigger interest rate rise in August and stick with 25 basis points, though it's a close call.
Market sentiment is also cautious ahead of the Federal Reserve's interest rate decision tomorrow. The US central bank is expected to raise rates by another 75 basis points.
The pound hit its highest level against the dollar since early July at $1.209 as it moved away from its two-year low from earlier this month. Against the euro, it was steady at 84.83p.
09:25 AM
Caterer Compass bounces back
Shares in Compass Group have jumped to a two-year high as the caterer posted "stellar" growth for the third quarter.
The FTSE 100 company raised its forecasts for full-year revenue growth as it continued to rebound from the pandemic with new business.
Analysts at Bernstein said Compass showed "stellar growth" with the underlying drivers of the business "running on all cylinders".
Shares rose 2.4pc to their highest since February 2020.
09:17 AM
Beijing hits back at Liz Truss over TikTok crackdown pledge
Beijing has hit back at a pledge by Tory leadership hopeful Liz Truss to clamp down on Chinese companies such as TikTok, describing it as "irresponsible".
During a head-to-head debate with Rishi Sunak last night, Ms Truss said the Government "absolutely should be cracking down on those types of companies" and limit tech exports to authoritarian regimes.
Zhao Lijian, Chinese foreign ministry spokesman, said: "We regret their remarks related to China and we firmly oppose them.
"I want to make it clear to certain British politicians that making irresponsible remarks about China, including hyping up the so-called China threat, cannot solve one's own problems."
Ms Truss' comments about TikTok build on a back-and-forth between the candidates about how to deal with China.
Mr Sunak previously described China as the "biggest long-term threat to Britain and the world's economic and national security" while promising to limit its influence in the UK.
09:03 AM
'Traffic light' restrictions may not have stopped Covid, says watchdog
ICYMI – here's more on the travel chaos from my colleague Oliver Gill.
Traffic light travel restrictions imposed during the pandemic were in part to blame for travel chaos at airports this summer, an influential Government watchdog has found.
A legacy of “flip-flopping” on travel policies "did not help" aviation chiefs as they prepared for borders to reopen at the end of last year, the head of the Public Accounts Committee has said.
The report by the PAC found that ministers “do not know” whether almost £500m spent on implementing the international travel traffic light system prevented the spread of Covid and whether it was worth the disruption to holidays.
The traffic light system was introduced in early 2021 so that restrictions could be varied depending on a country’s level of assessed risk. Those on the green list meant limited curbs through to red countries where passengers were required to quarantine for up to 10 days on their return.
But the Government sparked derision from passengers and travel companies as the system was blighted by last minute changes and confusion over the requirements to travel.
Ministers changed travel rules at least 10 times between February 2021 and January 2022, the committee found.
08:54 AM
FTSE risers and fallers
The FTSE 100 has started the day on the front foot as some upbeat results overshadowed wider economic gloom and energy crisis fears.
The blue-chip index rose 0.5pc, with oil giants BP and Shell and miners among the biggest boosts as commodity prices rose.
Unilever climbed 2.5pc to its highest level in more than seven months after the Marmite owner raised its sales guidance as it continues to raise prices.
Tesco was the biggest faller, losing 2.6pc even as new figures from Nielsen showed a rise in sales at the supermarket giant over the last 12 weeks.
The domestically-focused FTSE 250 fell 0.4pc, with Travis Perkins tumbling as much as 7.3pc.
08:24 AM
Unilever keeps raising prices as inflation soars
Unilever has said it's still raising prices as it grapples with "truly unprecedented" inflation in many of its key markets.
The maker of Marmite and Dove soap said it's charging shoppers more for products to help offset its own costs.
The consumer goods giant said sales growth will exceed its previous target of between 4.5pc and 6.5pc. It also said profit margin would remain on target at 16pc, suggesting some shoppers were prepared to pay higher prices.
Unilever is facing a tough balancing act of raising prices to cover costs without deterring customers completely. It said volumes were beginning to fall as people switch to cheaper own-brand labels.
Shares in Unilever rose 2.3pc following the update.
08:16 AM
Rolls-Royce names former BP executive as new boss
Rolls-Royce has named oil industry veteran Tufan Erginbilgic as it next chief executive to replace Warren East when he steps down at the end of this year.
Mr Erginbilgic spent 20 years at BP, most recently leading the oil giant's downstream business. He is currently a partner at private equity firm Global Infrastructure Partners.
Rolls-Royce announced in February that Mr East was set to leave at the end of 2022 after more than seven years at the helm, including leading the engine maker through a tough pandemic period.
Mr Erginbilgic will take up his new role on January 1.
Anita Frew, chairman of Rolls-Royce, said Mr Erginbilgic was a "proven leader of winning teams within complex multinational organisations, with an ability to drive a high-performance culture and deliver results for investors".
She added:
He has extensive strategic and operational experience and a firm understanding of safety-critical industries, including aerospace, as well as the challenges and commercial opportunities presented by the drive for low-carbon technologies.
08:12 AM
Heathrow says passenger cap has improved service
Elsewhere in travel, Heathrow has insisted its decision to cap passenger numbers has delivered a marked improvement in punctuality and baggage handling.
The airport capped the number of passenger departures at 100,000 a day earlier this month to limit queues, baggage delays and cancellations, sparking fury among airlines.
In an update this morning, Heathrow said the move had stabilised its operations, but said it was still struggling with a lack of baggage handlers.
The company said the number of people employed in ground handling had fallen sharply during the pandemic, as airlines cut costs.
It estimated that airline ground handlers were at around 70pc of pre-pandemic levels and said there had been no increase since January.
It comes after Ryanair yesterday blamed airports for the travel chaos, saying they had failed to hire enough staff.
Heathrow booked a pre-tax loss of £321m in the first half, though this was down by £466m as a result of higher passenger numbers.
08:06 AM
EasyJet takes £133m hit from travel chaos
EasyJet has booked a £133m hit from travel chaos as staff shortages continue to plague summer getaways.
The budget airline said it took the hit amid widespread delays and cancellations over the three months to the end of June.
But it still operated 95pc of its planned schedule over the period, while capacity in the fourth quarter is expected to be around 90pc of pre-Covid levels.
Revenue for the third quarter came in at £1.76bn, while pre-tax losses were £114m.
EasyJet has been among the hardest hit in the sector after it slashed its workforce during the pandemic and struggled to keep up with the rebound in demand.
Flights from Gatwick have been capped as a result, sparking disquiet among passengers. Shares in easyJet have dropped by almost a third this year.
08:01 AM
FTSE 100 opens higher
The FTSE 100 has pushed higher at the open, with markets looking for direction amid a spate of company results.
The blue-chip index gained 0.4pc to 7,335 points.
07:53 AM
Eutelsat vows to keep working with Russia
The tie-up between OneWeb and Eutelsat is likely to raise some eyebrows due to its political implications.
The French company broadcasts TV channels in Russia and has been accused of enabling Moscow's propaganda.
Yet it's vowed to continue working with Russia. Boss Eva Berkneke told reporters the company remained "committed to neutrality" and will continue pro-Kremlin broadcasts.
What's more, China also holds a 5pc stake in Eutelsat, meaning the Government will be teaming up with a strategic rival. The French state owns 20pc.
07:45 AM
What does the golden share mean?
Central to the takeover is the UK's retention of its golden share in OneWeb, which it secured following a $500m taxpayer-funded bailout back in 2020.
This includes:
A range of national security rights, including over security standards of the OneWeb network and use of the OneWeb network for national security purposes
The UK remaining the preferred location for future OneWeb launches
OneWeb preferring businesses in the UK for future procurement for manufacturing on a commercial basis
07:43 AM
OneWeb falls into French hands
The company’s new board will include Eutelsat's chairman and chief executive, alongside OneWeb’s chief executive, and independent shareholders chosen by both company in an extraordinary general meeting.
The Government will retain its golden share over OneWeb, with ministers due to keep a board seat at the combined business.
The Government added that the deal would be subject to national security approvals, including a possible vetting under the National Security & Investment Act.
The new company will combine Eutelsat’s geostationary earth orbit satellites and OneWeb’s low orbit satellites.
Eva Berneke, chief executive of Eutelsat, said the firm's “initial investment in OneWeb was underpinned by our strong belief that the future growth in connectivity will be driven by both GEO and LEO capacity”.
OneWeb shareholders will receive 230m newly-issued Eutelsat shares representing 50pc of the enlarged share capital.
The combined entity is set to have €1.2bn in revenue and €0.7bn earnings before interest, tax, depreciation and amortisation for the 2022-2023 financial year.
07:39 AM
OneWeb taken over by French rival
Good morning.
OneWeb has confirmed it's being taken over by French rival Eutelsat in a deal that values the British satellite champion at $3.4bn (£2.8bn).
Shareholders in OneWeb, which was bailed out by Boris Johnson in 2020, will hold 50pc of Eutelsat, which will continue to be listed in Paris and will ask to be listed on the London Stock Exchange.
The companies said the tie-up will give Eutelsat a “unique position” on the market and the combined business will generate revenues of €1.5bn.
The takeover marks a setback for Britain's efforts to compete in the space race. However, the Government will retain a golden share over the future of OneWeb, which will remain headquartered in London.
5 things to start your day
1) 'Traffic light" restrictions may not have stopped Covid, says watchdog New report questions whether £500m spent on travel policies was worth disruption to holidays
2) Greenpeace accused of siding with Putin against North Sea gas field Eco activists are putting British security at risk with legal challenge, says Whitehall source
3) Owner of Welsh microchip maker accused of 'misleading' MPs China-backed Nexperia bought Britain's largest semiconductor plant for £63m last year
4) Sunak was 'driving force' behind push for closer China ties Politician sought friendly relations as chancellor despite attacking Beijing in Tory leadership race, senior insider says
5) How infighting and chaos scuppered race to build a UK space champion Paris-listed Eutelsat is on the cusp of seizing control of rival satellite company OneWeb
What happened overnight
Hong Kong stocks opened higher this morning with the Hang Seng Index climbing 0.6pc.
The Shanghai Composite Index rose 0.1pc, while the Shenzhen Composite Index on China's second exchange inched up 0.08pc.
Tokyo's key Nikkei index zigzagged between positive and negative territory at the open.
Coming up today
Corporate: Games Workshop (full-year results); Bridgepoint, Drax Group, Informa, Reach, Tyman, Unilever (interims), Compass Group, EasyJet, Greencore, Mitie (trading update)
Economics: BRC shop price index (UK), house prices index (US), new home sales (US), consumer confidence (US)
