Yahoo Finance New wave of rail strikes announced by RMT
Rail workers will strike next month after a continued deadlock over a paydeal.
The Rail, Maritime and Transport workers union (RMT) has announced further strike action that will include 24-hour walkouts and overtime bans, after rejecting the train operators' final offer last week.
Union members from 14 train operators will strike on 16, 18 and 30 March, and 1 April, while those at Network Rail will strike on 16 March.
RMT members at Network Rail will also begin an overtime ban disrupting operations and maintenance, during seven day periods between 17 to 23 March, 31 March to 6 April, and 14 April to 20 April.
The union, which represents 40,000 workers across Network Rail and 14 train operators, rejected offers from employers last week after failing to meet their demands on pay, job security or working conditions.
The offer inluded at least a 9pc increase over two years, rising to over 14pc for the lowest paid workers.
Mick Lynch, RMT general secretary said: "Rail employers are not being given a fresh mandate by the government to offer our members a new deal on pay, conditions and job security.
"Therefore, our members will now take sustained and targeted industrial action over the next few months.
"The government can settle this dispute easily by unshackling the rail companies.
"However, its stubborn refusal to do so will now mean more strike action across the railway network and a very disruptive overtime ban.
"Ministers cannot continue to sit on their hands hoping this dispute will go away as our members are fully prepared to fight tooth and nail for a negotiated settlement in the months ahead."
07:38 PM
Good night
Right then, I'm off. See you tomorrow morning!
07:17 PM
Tesla recalls over 360,000 self-driving vehicles
Tesla is recalling 362,758 vechicles after reports that its self-driving software poses a crash risk.
The electric automaker's full self-driving beta system could allow vehicles to act unsafe around intersections and even drive through traffic lights as yellow signal turns red, according to US authorities.
Tesla is expected to fix the problem through a software update by 15 April. Its price is down 0.71pc today.
Chief executive Elon Musk has since described the term 'recall' as "anachronistic":
Definitely. The word “recall” for an over-the-air software update is anachronistic and just flat wrong!
— Elon Musk (@elonmusk) February 16, 2023
06:34 PM
There's "no more money to offer", says Network Rail chief negotiator
Rail union RMT has chosen "politics over people" despite thousands of employees apparently wanting the improved offer already tabled by Network Rail, according to the train company's top negotiator.
Tim Shoveller, Network Rail chief negotiator, said:
The RMT's leadership has shown its true colours by choosing politics over people. During months of talks we have made multiple concessions, compromises and offers in our determination to secure a deal.
Thousands of employees are telling us they want the improved offer that we have tabled, an offer worth at least 9% over two years - rising to over 14% for the lowest paid, provides job security with no compulsory redundancies and 75% discounted rail travel.
But instead of offering members a democratic vote with a referendum, the RMT leadership is hiding behind a sham 'consultation'.
Further strikes will disrupt passengers and cost employees money - while changing nothing as our package of very modest reforms continues.
The RMT is well aware of the precarious position of the railway's finances, with no more money to offer more.
Their action is condemning us all to a long and drawn-out dispute with no obvious end in sight, and is only harming the very industry and people it claims to be here to protect.
06:22 PM
Rail strikes coincide with Easter school holidays
For many the 24-hour rail strikes - which take place on 16, 18 and 30th March and April 1st - will coincide with the start of Easter school holidays.
The industrial action will also impact football fans, including those attending Brighton and Crystal Palace's rearranged match on the 16th March.
RMT strike on the day of the rearranged Brighton vs Palace match, which was postponed due to, errr, rail strikes #CPFC https://t.co/W1LvlmqE2J
— Matt Woosnam (@MattWoosie) February 16, 2023
06:10 PM
Transport Secretary: new rail strikes will "drive more passengers away"
The new wave of rail strikes will "drive more passengers away" and damage the financially unsustainable industry even further, says Transport Secretary Mark Harper. He said:
Just days after denying its members a say on their own future, the RMT leadership is now trying to make them lose multiple days' wages through yet more strikes.
Passengers want this dispute to end. We have facilitated fair and reasonable offers on pay and reform, with a pay rise worth 5% last year and 4% this year, but, sadly, the RMT leadership is not interested.
Our railways are not currently financially sustainable and these best and final offers would have given workers what they want and, crucially, the passengers what they need.
All more strikes will do is damage the rail industry even further and drive more passengers away.
05:53 PM
New rail strikes announced
Rail workers will strike next month after a continued deadlock over a paydeal, union RMT has announced.
🚨 | BREAKING@RMTunion announces further strikes and overtime ban in national rail dispute
Rail union RMT, will take nationwide strike action across the railways on 16 March after employers refused to put any new offers on the table.— RMT (@RMTunion) February 16, 2023
05:47 PM
Bank of England: Inflation remains "unacceptably high"
Inflation remains "unacceptably high" and the Bank of England must be ready to raise interest rates again to keep a lid on price rises, its chief economist has warned.
Economics editor Szu Ping Chan has more:
Huw Pill said it was important to "see the job through" in order to bring inflation back to the Bank's 2pc target,even though policymakers had already raised interest rates ten times to their current level of 4pc.
Mr Pill welcomed the recent slowdown in inflation, with the rate of price growth down from 11.1pc in October to 10.1pc in January.
However, in a departure from previous comments that the Bank should "guard against doing too much", he added that it should be also wary of doing "too little".
"While we have seen some easing in the past couple of months as the impact of past energy price rises starts to recede, UK CPI inflation is still in double digits. That is unacceptably high," he said in a speech at Warwick University.
Mr Pill added that while there were tentative signs that the jobs market was cooling, the labour market "remains tight in an absolute sense relative to historical experience".
He said: "Given my assessment of the data as they stand and recognising the substantial policy tightening already implemented, in my view the MPC’s current priority must be to ensure we see the job through, so as to return inflation to target on a sustainable and lasting basis. It remains premature to declare victory over the unacceptably higher rates of inflation we have seen recently."
Continuing to raise rates at the pace and magnitude seen over the past year would eventually – and perhaps soon – imply that monetary policy had cumulatively been tightened too much. Nevertheless, given where we stand, I still choose to emphasise the MPC’s need to be watchful for signs of greater-than-expected persistence in inflationary pressure. And I would flag the need for the Committee to maintain a readiness to act to address any such persistence should it emerge."
05:21 PM
The Kinks guitarist urges Elon Musk to remove Twitter ‘sensitive content’ warning
The lead guitarist of the rock band The Kinks has pleaded with billionaire Elon Musk to stop censoring the band’s name after Twitter automatically hid its posts.
My colleague Matthew Field has the story:
Videos shared by band members have been hidden behind warnings that they include “potentially sensitive content”, as Twitter’s technology appeared to take exception to the band’s name.
Videos shared by band members have been hidden behind warnings that they include “potentially sensitive content”, as Twitter’s technology appeared to take exception to the band’s name.
Social media users are forced to bypass a warning banner that is posted over videos from YouTube or TikTok.
Dave Davies, the 76-year-old guitarist on tracks such as Waterloo Sunset, posted a message to Twitter’s billionaire owner on Twitter, saying: “Dear Elon Musk, would Twitter please stop putting warnings over everything from ‘the Kinks’. We are just trying to promote our Kinks music.”
The social network’s technology censored multiple posts from the band, apparently confusing the Rock and Roll Hall of Fame band with websites related to fetishism or unusual sexual preferences.
The Kinks are a brand name. We have been called the Kinks since 1963 https://t.co/bKk1PJURfv
— Dave Davies (@davedavieskinks) February 15, 2023
04:58 PM
FTSE closes above 8,000 for the first time
The FTSE 100 has closed above 8,000 points for the first time ever.
Britain's blue-chip index finished up 0.18pc at 8,012.53, the fourth consecutive end-of-trading record set this week.
The internationally-focused index surged to 8,047.06 - a new intraday high - earlier today following upbeat corporate earnings from Centrica and Standard Chartered.
It also recovered from dipping below 8,000 this afternoon after new wholesale prices data indicated that that inflation pressures continue to underlie the US economy.
Meanwhile, the domestic-focused FTSE 250 grew by 0.04pc to 20,181.45, a slightly recovery from choppy trading that saw it plunge to 20,059.83.
04:23 PM
Royal Mail workers vote for further strikes
Thousands of Royal Mail workers have voted for new strike action, warning that walkouts will continue until demands for pay rises to offset inflation are resolved.
Over 95pc of participants in the latest national ballot have voted for further strikes, according to the Communication Workers Union, which represents over 110,000 postal workers.
The result comes after the Communication Workers Union were forced to call off a two-day walkout earlier this month after discovering their mandate was about to expire.
The latest ballot gives the union a new six-month mandate for industrial action which ends mid-August.
Last October, Royal Mail said it could cut 10,000 jobs under plans to reform outdated working practices.
🚨BREAKING: POSTAL WORKERS HAVE MADE HISTORY
CWU members in Royal Mail Group have delivered the biggest ever return in a major national strike ballot.
YES 95.9%
TURNOUT 77.3%
Simply stunning. #WeAreStillHere pic.twitter.com/QNaESTEZ2A— The CWU (@CWUnews) February 16, 2023
03:59 PM
Streaming giant Paramount raises prices as shares plunge
Paramount Global is increasing subscription prices for its streaming platform across the US and selected international markets in hopes of boosting profitability.
The American entertainment company said monthly charges will rise for the Paramount+ premium package by $2 (£1.66) to $11.99, while its basic subscription wile increase $1 to $5.99.
In the UK, viewers can access Paramount+ for £6.99 a month.
Bob Bakish, chief executive, told investors: “We are going to be a profitable, scaled player in the streaming game.”
The announcement follows Paramount’s fourth quarter earnings earlier today, which missed analysts’s profit and revenue estimates. Its share price has fallen 1.43pc today.
03:36 PM
Handing over
Right, that's all from me today. My colleague Adam Mawardi will take things from here.
03:27 PM
Aldi launches hiring spree as shoppers switch from Waitrose and Morrisons
Aldi will hire more than 6,000 extra staff across the UK this year as it continues to tempt shoppers away from rivals such as Waitrose and Morrisons.
The German discounter, which currently has 990 British stores and employs 40,000 staff, is planning to open around 40 new shops in cities including Norwich and Newcastle.
The new locations are part of plans to have 1,200 stores in Britain by the end of 2025.
Aldi has experienced ballooning sales in recent months as rapidly climbing food prices prompt people to look for cheaper alternatives.
The German discounter recently leapfrogged Morrisons to become Britain's fourth largest supermarket and its market share has grown by almost 27pc over the last year. Growth across the supermarket sector has averaged just 6pc over the same time.
92p of every £10 spent on groceries in Britain now goes to Aldi.
Giles Hurley, chief executive of Aldi UK, said demand had "never been higher", as shoppers continue to seek out cheaper groceries in the midst of the cost-of-living crunch. Aldi has consistently been ranked the cheapest supermarket in surveys by consumer group Which?.
Customer switching has triggered a fierce price war across the supermarket sector as British rivals try to win back customers.
03:15 PM
New Look cutting 500 warehouse jobs
More than 500 warehouse jobs are being cut at fashion chain New Look under plans to axe the night shift at its site in Staffordshire.
The move to switch to a day shift only will impact 503 of its 1,200 workers at the group's warehouse in Lymedale Business Park site, Newcastle-under-Lyme.
But New Look is hoping to be able to re-employ some of those employees affected as it hires an extra 300 staff on the expanded day shift.
It marks the latest in a raft of job losses across the retail sector, with it emerging on Wednesday that discount chain Wilko is axing jobs, with more than 400 roles reportedly facing the axe, including assistant store managers, retail supervisors, head office managers and call centre workers.
Supermarkets Tesco and Asda have also been among those cutting jobs as a sector-wide cull picks up pace in the face of soaring costs.
02:58 PM
Bitcoin hits six-month high
Markets may be headed downwards right now but Bitcoin touched a six-month high earlier after the surge in optimism about the world economy.
The world's largest cryptocurrency reached $24,895 (£20,779), its highest since August 2022, after jumping 9.5pc on Wednesday. It has since been trading around $24,400 (£20,366).
Bitcoin has risen nearly 50pc so far this year from around $16,500, where it languished in early January bruised by the collapse of major crypto exchange FTX and a sell-off in many assets caused by global central banks raising interest rates aggressively.
02:34 PM
US markets drop at the open
Markets on Wall Street took a steep tumble after US wholesale prices data showed inflation persisting.
The Dow Jones Industrial Average has fallen 0.8pc to 33,841.15 at the open while the broad-based S&P 500 slumped 1.1pc to 4,100.74.
The tech-heavy Nasdaq Composite has dropped 1.3pc to 11,913.34 after the opening bell.
02:14 PM
FTSE 100 wipes out gains amid nerves over US inflation
The FTSE 100 has lost its earlier gains and fallen below 8,000 after wholesale prices in the United States surged 6pc in January from a year earlier.
Although this showed prices decelerating for a seventh straight month, on a month-to-month basis prices picked up the pace again in January, indicating that inflation pressures continue to underlie the US economy.
The Labor Department report showed that monthly producer prices rose 0.7pc after a 0.2pc fall in the previous month. Economists had expected a 0.4pc increase in January.
Wall Street is expected to open lower, while the FTSE 100 has now dropped nearly 0.1pc on the day to 7,993.98.
02:03 PM
Boom in switchers boosts Moneysupermarket
A boom in consumers shopping around for better savings accounts has boosted sales for comparison site Moneysupermarket.
The platform profited from people hunting down better deals throughout last year and saw revenues across its money division, which compares current and savings accounts, credit cards, and loans, jump by 37pc.
The company said this was because of attractive promotional products, especially savings accounts, being available throughout the year.
There was also strong demand for loan products for most of the year, but noted that it weakened in the final quarter following September's mini-budget, which saw lenders hike up interest rates on mortgage products.
It made mortgages less attractive for consumers at that time and dragged on its revenues over the final three months of the year, the firm said.
Moneysupermarket also saw revenues jump by 8pc across insurance over the year, which is its biggest division and includes car, home, travel and pet insurance.
01:42 PM
Pound falls as data shows inflation persisting in US
The pound has taken a tumble against the dollar after data just out from the US showed producer prices increased by 0.7pc in January, ahead of analyst estimates of 0.4pc.
The producer price index was up 6pc compared to a year earlier, according to the Bureau of Labor Statistics, which was also ahead of forecasts of 5.4pc.
It means traders have increased bets that the US Federal Reserve will keep rate rises higher for longer - and weakens speculation about a cut in rates by the end of the year.
After a rally earlier, the pound is now down 0.1pc against the dollar and heading back towards $1.20.
Dollar and yields are rally on the 🔥🔥HOT🔥🔥 #PPI report - here's $DXY back in positive territory on the day. pic.twitter.com/5s43fyT6sT
— Matt Weller CFA, CMT (@MWellerFX) February 16, 2023
01:32 PM
Activist investor calls for overhaul at Wagamama owner
Wagamama owner The Restaurant Group has shown "little hope for the future" and is in need of a strategy overhaul, an activist shareholder has urged.
Oasis Management, a hedge fund which holds a 6.5pc stake in the company, called on the hospitality firm to "re-align its priorities" and take immediate steps to restore market confidence.
Shares in The Restaurant Group, which also owns Frankie & Benny's, have declined by almost two-thirds over the past year.
The group recovered to profitability in the latest half-year but is among restaurant and pub operators to have come under heavy pressure from rocketing energy and food inflation.
The hedge fund has said in an open letter that it privately approached the business with suggestions but has opted to go public after it was rebuffed.
"Oasis maintains that this decline - which began before the pandemic - is due to group level decision-making and failure of oversight by a board that has lost focus on long-term value creation and its alignment with the shareholder perspective," the investor said.
01:20 PM
UK wargames fallout if China invades Taiwan
Britain has no economic contingency plans for what would happen if China stormed Taiwan, according to a senior Tory MP, amid reports that the Government has been wargaming what to do if the world's supply of cheap semiconductors was cut off.
The security of supplies from Taiwan Semiconductor Manufacturing Co, which makes 92pc of the world's most advanced semiconductors, has come into focus amid growing tensions between the independent nation and Beijing, which claims the island as its own.
This week Warren Buffett's Berkshire Hathaway disclosed that it had sold most of its holdings in the chip giant, sending its shares falling 4pc.
Shortages of chips were blamed for contributing to Honda's closure of its Swindon factory and the collapse of electric battery start-up Britishvolt.
As a result, Britain is preparing contingency exercises across multiple departments, according to Bloomberg.
Tory MP Tobias Ellwood, chairman of the Defense Select Committee, said: "We have no resilience and no contingency plans, unlike the US building a microchip factory in Arizona.
"We need a Plan B and to start that we need an urgent stock check."
It comes after a 2021 paper by the International Monetary Fund modelled a controlled "technological decoupling" of China from the US and Europe. It found the most open economies including the UK suffer economic losses of 5pc of gross domestic product within a few years.
A similar 2022 exercise by the Office for Budget Responsibility on the impact of a "plausible rise in trade barriers" in the event of a Chinese invasion of Taiwan would drive borrowing up £20bn in the first year.
01:11 PM
Oil trading flat
Oil prices are flat after fluctuating earlier as investors assessed whether higher energy demand in China outweighs a large build-up of US stockpiles.
Brent crude, the international benchmark, has been trading around $85 a barrel, while US-produced West Texas Intermediate turned higher after earlier shedding 0.7pc in a session that lacked meaningful price direction.
Passenger loads at China's top three airlines are rebounding as travel picks up again, adding to signs of increased mobility and energy consumption after refiners stepped up crude purchases and raised run rates.
That was overshadowed by a bumper build in US oil inventories on Wednesday.
12:58 PM
Wall Street poised to open lower
US stock markets edged lower in pre-market trading ahead of monthly producer prices data that could offer clues on how long the Federal Reserve will have to keep raising interest rates to tame stubbornly high inflation.
Producer prices are expected to have climbed by 0.4pc in January, on a month-on-month basis, according to a Reuters poll of economists, following a 0.4pc fall in the previous month.
However, the numbers are expected to have cooled to 5.4pc on an annual basis, after a 6.2pc increase in December.
After a torrid 2022, the main stock indexes have climbed this year on the back of upbeat earnings and expectations that the US central bank will switch to smaller rate hikes, pushing investors to scoop up beaten-down growth stocks.
However, signs of a resilient economy and an acceleration in January consumer prices have recently raised concerns among traders that the central bank may not hit pause on its hawkish policies anytime soon.
Contracts on the Dow Jones Industrial Average were down 0.1pc while the broad-based S&P 500 were of by 0.2pc. Nasdaq 100 futures had fallen by 0.2pc.
12:43 PM
Putin's Russia to return to growth next year despite sanctions
Russia's economy will return to growth next year as Vladimir Putin's regime finds ways to avoid Western sanctions.
The country's economy contracted less than expected last year, in part as a result of high energy prices mitigating the impact of sanctions.
Its gross domestic product (GDP) is expected to contract by 3pc in 2023 due to declining oil prices and the impact of sanctions but to bounce back with 1pc growth in 2024, according to the European Bank for Reconstruction and Development (EBRD).
The US and the European Union have slapped trade limits on nearly every sector of the Russian economy, blocking it from imports of everything from luxury goods to computer chips and raw materials that can be used to build weapons and fuel Putin's war machine.
German exports to Russia fell to 38pc from May to July last year from the average of the same period between 2017 and 2019.
However, they almost doubled to Armenia and more than tripled to Kyrgyzstan — a trend also seen in trade flows to the Caucasus and central Asia from the US, the UK, and other EU states.
Armenia, Kyrgyzstan and Kazakhstan are all in a customs union with Russia and Belarus as members of the Eurasian Economic Union, a Moscow-led rival to the EU. There are no barriers for goods exported to these countries to be moved on to Russia by traders.
Meanwhile, the EBRD forecasts a rise in Ukraine's GDP of 1pc this year, although this is down from the 8pc forecast last September.
Ukraine's economy will then grow by 3pc next year, way ahead of Russia.
12:07 PM
ECB board member calls for 'small steps' on rate rises
A European Central Bank chief has said it is "unwise to move very fast" on interest rates a day after its president Christine Lagarde insisted that the institution intends to raise borrowing costs by another half-point next month.
ECB executive board member Fabio Panetta said taking "small steps" was important as the continent's central bank tries to tame inflation without overtightening and causing a recession.
The ECB raised interest rates by 50 basis points this month while saying it intends to take an identical step at the next meeting. However, subsequent moves are up for debate.
Following a speech in London, Mr Panetta said: "To move in small steps is not to move less. We face so much uncertainty in both directions, I would consider it unwise to move very fast."
He added that "we now need to take into account the risk of overtightening alongside the risk of doing too little," particularly as the energy shock caused by Russia's war in Ukraine eases and the inflation outlook becomes more balanced.
11:50 AM
WeWork posts bigger-than-expected losses
WeWork missed analysts' expectations for profit in the fourth quarter, but showed a glimmer of potential for future profitability.
The co-working company said it had positive adjusted earnings before interest, taxes and other charges for the month of December.
This was a notable change from its famously cash-burning history, especially under former chief executive Adam Neumann.
After a failed attempt at an initial public offering in 2019 and a gut punch from the global pandemic, chief executive Sandeep Mathrani has been cutting expenses and inching toward turning a profit, although it remains far off.
New York-based WeWork lost $527m in the fourth quarter, a greater loss than the $328m analysts had predicted, according to data compiled by Bloomberg.
The company reported revenue of $848m for the quarter, less than analyst estimates of $859m.
11:27 AM
France's CAC-40 stock index touches record high
France's benchmark CAC-40 stock market index has touched a record intraday high, buoyed by solid results at some of the country's biggest companies and echoing similar record highs reached on the FTSE 100.
The CAC-40 at one point rose by 1.2pc to 7,387.29 points, beating a lifetime high of 7,384.86 points reached on January 5 last year.
The index then pared some of those gains to stand 0.9pc higher at 7,365.81.
The FTSE 100 remains above 8,000 points after hitting a fresh record high of 8,047.06 this morning.
11:13 AM
Pound rallies against the dollar
The pound has clawed back some momentum against the dollar after brutal day on Wednesday.
Sterling tumbled 1.5pc against the greenback - starting the day above $1.21 but ending below $1.20 - as it was hit by the double whammy of easing inflation in Britain and surging retail sales in the US.
This meant traders bet that the Bank of England was less likely to increase the pace of interest rates, while sentiment grew that the US Federal Reserve would have to keep rates higher for longer to keep prices in check.
Today, the pound has risen 0.2pc against the dollar today taking it back above $1.20.
10:59 AM
Upper Crust owner hit by rail strikes
Upper Crust owner SSP has seen the recovery in its UK business hampered by repeated waves of strike action across railway networks.
The company, which runs food outlets at airports and railway stations, revealed the performance of its UK and Ireland business lagged behind other regions globally amid walkouts in December and January.
SSP said that across the group, revenues jumped by 103pc to £871m in the four months to January 31 versus pre-Covid levels in 2019 thanks to a bounce back in travel demand and workers returning to offices.
But in the UK and Ireland, growth was far more muted, at 83pc, with revenues standing at £215m.
Rail networks were brought to a standstill by strike action in the days leading up to Christmas and again in January, with further disruption earlier this month. SSP said:
In the UK, the overall sales performance reflected both the seasonally higher weighting of rail within the business and the impact of an increased frequency of industrial action across the rail network during December and January.
However, the UK air business maintained its strong momentum.
10:43 AM
'Market failure' behind Centrica's record profits, say campaigners
Centrica's record profits are a result of "market failure" in the energy sector, campaigners have said.
The owner of British Gas said its profits more than tripled in 2022 to £3.3bn, from £948m in 2021.
Its announcement comes soon after energy regulator Ofgem opened an urgent inquiry into the company force-fitting prepayment meters in the homes of vulnerable customers unable to pay their bills.
Andrew Simms of the Rapid Transition Alliance said:
Given energy markets are mature, from an economic point of view profits on this scale only occur as a result of market failure.
The profits do not result from any great business skill, but are a virtually untaxed windfall, a type of profiteering from global events, and because fossil fuel companies are not paying for the environmental and health damage caused by their product.
Shell and BP have also reported record profits this year stoked by the sharp rise in gas prices since the Russian invasion of Ukraine.
10:29 AM
UK fintech investment plummeted 60pc last year
Britain's fintech sector saw investment drop $22bn to $17bn (£14bn) last year, as higher interest rates, inflation, and declines in valuations hit investor appetite.
A total of 593 UK fintech deals were completed in 2022, down from 724 in 2021, according to KPMG's Pulse of Fintech report published Wednesday, which values the worth of the deals in US dollars. The dataset includes mergers and acquisitions, private equity, and venture capital.
Funding for the sector in 2022 was a tale of two halves according to Karim Haji, a partner at accountancy firm KPMG.
The first half of the year saw significantly more investment and deals than the second half.
He said: "The variance highlights the shift in investor sentiment in the face of increasing geopolitical challenges leading to the lack of IPO exits, the downward pressure on valuations, and market turbulence."
UK payment firms drew $3.6bn (£3bn) of investment in 2022, the most among the various fintech subsectors.
Global investment in crypto and blockchain firms fell from $30bn in 2021 to $23.1bn (£19.2bn) in 2022, amid greater scrutiny following the bankruptcy of FTX which caused chaos in the market.
10:29 AM
UK fintech investment plummeted 60pc last year
Britain's fintech sector saw investment drop $22bn to $17bn (£14bn) last year, as higher interest rates, inflation, and declines in valuations hit investor appetite.
A total of 593 UK fintech deals were completed in 2022, down from 724 in 2021, according to KPMG's Pulse of Fintech report published Wednesday, which values the worth of the deals in US dollars. The dataset includes mergers and acquisitions, private equity, and venture capital.
Funding for the sector in 2022 was a tale of two halves according to Karim Haji, a partner at accountancy firm KPMG.
The first half of the year saw significantly more investment and deals than the second half.
He said: "The variance highlights the shift in investor sentiment in the face of increasing geopolitical challenges leading to the lack of IPO exits, the downward pressure on valuations, and market turbulence."
UK payment firms drew $3.6bn (£3bn) of investment in 2022, the most among the various fintech subsectors.
Global investment in crypto and blockchain firms fell from $30bn in 2021 to $23.1bn (£19.2bn) in 2022, amid greater scrutiny following the bankruptcy of FTX which caused chaos in the market.
10:13 AM
Nestle plans to increase prices after costs eat into profits
The world's biggest food group Nestle will raise prices further this year, its boss said, after more expensive ingredients contributed to full-year net profit missing analyst expectations.
Chief executive Mark Schneider declined to comment on the planned level of price increases, which he said were necessary to offset the damage caused by commodity price rises.
For consumers, whose spending power has already been cut by surging inflation, they are likely to add to concerns about strained household budgets and weakened economies.
The maker of Nescafe instant coffee and KitKat chocolate bars raised prices by 8.2pc last year, but that did not fully offset the impact of increased costs for ingredients on margins.
Mr Schneider said: "Our gross margin is down about 260 basis points - that is massive. That is after all the pricing we have done in 2022.
"We have some markets, like the US and UK, where we see strong continued inflation, and other markets like China and like here in Europe… where inflation is more muted."
10:01 AM
Airbus to slow production of best-selling A320 short haul jet
Airbus plans to scale back production of its best selling A320 aircraft as supply-chain disruptions continue to ripple through the industry.
However, the European plane maker has projected higher deliveries for this year and will accelerate output of its largest models as long-haul travel rebounds.
For 2023, the planemaker plans to hand over 720 aircraft, in line with its original 2022 projection, which ended up coming in short, at 661 planes.
For the monthly output of its A320-family model, Airbus wants to build 65 units by the end of 2024, and go to 75 in 2026. Both goals are a year later than Airbus's previous projections.
Chief executive Guillaume Faury said: "This is a very disruptive environment, coming from different sources, that's making us inefficient.
"When will we be back to 2018 levels of productivity, I don't know."
The planemaker expects adjusted earnings before interest and tax of €6bn (£5.3bn) this year, compared with €5.6 billion in 2022.
The stock gained as much as 2.4pc to €122.20 at the open. The shares have gained about 9.6pc this year.
09:47 AM
Renault boosts profitability but Russia exit pushes it into loss
French automaker Renault boosted manufacturing profitability in 2022 but revealed that the sale of its operations in Russia pushed the company into a net loss.
Renault expanded its operating profit margin to 5.6pc of sales last year and aims to increase it to at least 6pc in 2023.
Meanwhile sales rose by 11.4pc to €46.4bn (£41.2bn). Chief executive Luca de Meo said:
2022 has more than kept its promises: with results above our initial objectives and market expectations.
This performance reflects the energy and hard work of the Renault Group's teams even as we have faced strong headwinds related to the disposal of our operations in Russia, the semiconductor crisis and cost inflation.
Last May, Renault handed over its 68pc stake in AvtoVAZ, the largest carmaker in Russia along with top brand Lada, to the Moscow government as it joined an exodus of firms fleeing the country after the military intervention in Ukraine.
That created a €2.3bn (£2bn) hole in the balance sheet and pushed Renault into a net loss of €338m (£300m) for the year.
09:37 AM
Ex-Barclays boss Jes Staley discussed Disney princesses with Epstein, lawsuit alleges
The former chief executive of Barclays allegedly engaged in a conversation with Jeffrey Epstein about "Disney princesses" who the late paedophile financier was trying to pursue, according to a lawsuit.
Banking & financial services correspondent Simon Foy has the details:
The US Virgin Islands unsealed documents on Wednesday in its case against Jes Staley's former employer JP Morgan.
The lawsuit said that Mr Staley emailed Epstein in July 2010, saying: "That was fun. Say hi to Snow White."
Epstein allegedly replied: "[W]hat character would you like next?"
Mr Staley then wrote "Beauty and the Beast", to which Epstein answered, "well one side is available".
09:26 AM
Boohoo aims to overhaul bonus scheme after shares decline
Boohoo wants to revamp its management bonus plan which could see its boss handed £50m after the fast fashion retailer's share price fell 88pc in two and a half years.
The bonus payments would depend on Boohoo's market capitalisation - with payouts triggered at five levels ranging from £1.2bn to £5bn.
Boohoo is valued at £610m, down from a high of £6.6bn in June 2020.
If the top level is achieved, it would result in a payout of £175m and a share dilution of about 6pc for existing shareholders.
Shares have risen 4.6pc so far today.
09:06 AM
Pernod boss warns to expects more price increases
The head of French distiller Pernod Ricard expects further price increases in the second half of its fiscal year as inflation pressures persist and demand for its spirits including Jameson Irish whiskey normalises in the US and China after the pandemic.
Pernod increased global prices by about 10pc on average during the six months through to December, chief executive Alexandre Ricard said.
He expects the maker of Absolut vodka and Chivas Regal to have raised prices by a "high single digit" percentage for the full year to counter inflation as sales in its most important markets return to normal following pandemic disruptions.
Mr Ricard said of the price hikes: "We have maintained our margins."
Pernod today said first half sales rose 12pc on an organic basis to €7.1bn (£6.3bn) in the second half of last year. Analysts expected €6.9bn.
The shares rose as much as 4.5pc in early Paris trading, the biggest intraday gain since November.
08:43 AM
FTSE 100 reaches new record high
The FTSE 100 posted a fresh record high boosted by upbeat corporate earnings from Centrica and Standard Chartered, while miners were lifted by higher commodity prices.
The blue-chip FTSE 100 gained as much as 0.5pc, above the 8,000 points mark it breached in the previous session, moving as high as 8,047.06.
British gas owner Centrica jumped to the top of the FTSE 100, gaining 4.6pc after its annual profit more than tripled and the company announced it was extending its share buyback programme.
British bank Standard Chartered rose 2.9pc after reporting a 28pc rise in annual pre-tax profit.
European information provider Relx gained 3.8pc after reporting a better-than-expected 10pc rise in full-year adjusted earnings per share.
The more domestically-focussed FTSE 250 midcaps rose as much as 0.4pc, although gains were capped by losses in pharmaceutical company Indivior, which fell 14.4pc after reporting its full-year results.
08:25 AM
Tesla sacked staff after union plan announced, workers say
Tesla has been accused of sacking dozens of staff at its plant in Buffalo, New York, a day after workers announced plans to form a union.
The Workers United union has accused the electric carmaker of illegally firing the employees "in retaliation for union activity and to discourage union activity," a filing with the US National Labor Relations Board said.
The union asked for the board to seek a federal court injunction "to prevent irreparable destruction of employee rights resulting from Tesla's unlawful conduct".
Tesla did not respond to requests for comment. it disbanded its press-relations team in 2020.
08:08 AM
Disability charity takes aim at Centrica profits
Tom Marsland, policy manager at disability charity Scope, said:
It's obscene that energy companies continue to make massive profits as disabled people face devastating situations because they can't afford enough energy.
Life costs a lot more when you're disabled. We're being inundated with heart-breaking calls from disabled people who haven't eaten for days, who can't afford energy to charge wheelchairs and stairlifts, but are still racking up huge energy debts.
As we've seen, many have been forced onto prepayment meters as a result, putting lives and health in danger.
Energy companies need to start putting disabled customers first.
We need a social energy tariff - a discounted rate - for disabled people, to put an end to sky-high energy bills.
08:02 AM
FTSE 100 opens at new record high
The FTSE 100 has begun the day at a new record high of 8,032.00 - a rise of 0.4pc.
The midcap FTSE 250 was also given a huge boost at the open, rising 1.4pc to 20,301.26.
07:57 AM
Centrica 'extremely disappointed' by pre-payment meter allegations
In its annual results, Centrica said it was "extremely disappointed" by allegations that it sent debt agents to break into homes and install pre-payment meters.
It added: "We immediately took action to address this and are completing a thorough independent investigation."
Centrica's results showed it made operating profits of £72m at its British Gas retail division, British Gas Energy, but this was down 39pc on the year before.
07:55 AM
Centrica profits 'a betrayal for British Gas customers,' says Davey
Centrica said it paid nearly £1bn in tax relating to its record 2022 profits.
But it also revealed it handed out bumper returns to shareholders, with plans to boost its share buyback programme by another £300m and paying out a full-year dividend of 3p a share.
Liberal Democrat leader Sir Ed Davey said:
This is a betrayal for British Gas customers across the country who are struggling to keep their heating on.
Once again the Government's failure to implement a proper windfall tax is allowing oil and gas businesses to make billions off the back of hardworking families.
What makes this worse is that thousands of British Gas families have had their homes broken into and prepayments forcibly installed because they could no longer afford to pay their sky high bills.
This cannot continue. Liberal Democrats are calling for the Conservatives to finally bring in a proper windfall tax and the cancellation of Government plans to increase energy bills by £500 in April.
07:50 AM
Labour reiterates call for windfall tax after Centrica profits
Shadow climate secretary Ed Miliband hit out at the Government as he promised that Labour would introduce a "proper" windfall tax on energy companies.
It comes as British Gas owner Centrica reported annual underlying operating profits soaring to £2.8bn from £392m in 2021 after its sale of its Spirit Energy business was stripped out.
Mr Miliband tweeted:
It cannot be right that, as oil and gas giants rake in the windfalls of war, Rishi Sunak's Conservatives refuse to implement a proper windfall tax that would make them pay their fair share.
Labour would use a real windfall tax to stop the energy price cap going up in April. https://t.co/RyJrki0EYs— Ed Miliband (@Ed_Miliband) February 16, 2023
07:44 AM
TUC calls for energy company nationalisation
Responding to the latest Centrica profits, TUC general secretary Paul Nowak said that the British energy market is "broken". He said:
While millions of families struggle to heat their homes, firms like Centrica are raking in monster profits.
It is time to bring energy retail companies into public ownership.
Privatisation has been a disaster for hard-pressed households. The only real winners have been shareholders who have creamed off hundreds of millions in dividends.
That's why the TUC is calling for the government to set up a public energy company to lower bills.
07:41 AM
Standard Chartered profits rise as it hails China reopening
Global bank Standard Chartered has revealed its statutory pre-tax profits jumped by 28pc to $4.3bn (£3.6bn) in 2022 and said the reopening of China after the pandemic is giving grounds for optimism this year.
The bank announced it is "imminently" launching a new £1bn (£830m) share buy-back programme and a final dividend payout worth $405m (£336m).
Standard Chartered, which has 83,000 staff around the world, said it expects its income to grow by up to a 10th in the next two years as it benefits from rising interest rates.
It added that economic growth in Asian economies and China ending its Covid restrictions will be "pivotal" to global recovery.
07:39 AM
Inflation takes a bite out of Nestle's margins
Swiss food giant Nestle said sales rose last year but inflation ate at its margins, while net profits plunged due to asset sales in 2021.
Sales rose by 8.4pc to 94.4bn Swiss francs (£85bn), but net profits fell by 45pc to 9.3bn francs (£8.4bn) in 2022 when the sale of shares in L'Oreal boosted 2021 earnings.
07:32 AM
Centrica 'coining it from our massive energy bills'
Unite union general secretary Sharon Graham said:
British Gas owner Centrica has been coining it in from our massive energy bills while sending bailiffs to prey on vulnerable consumers the length and breadth of the country.
These energy companies are showing us everything that is wrong with the UK's broken economy.
Rishi Sunak should get a grip - pull the plug on rampaging energy profiteering, impose a meaningful, tough windfall tax and give the NHS a pay rise with the proceeds.
07:31 AM
British Gas owner Centrica posts record profit as energy bills soar
British Gas owner Centrica made record profits of £3.3bn as household bills surged during the energy crisis triggered by Vladimir Putin's war in Ukraine.
The figure is more than treble last year's adjusted operating profit of £949m, while a different measure of profit - earnings per share - increased eightfold.
Centrica has also rewarded shareholders with a full-year dividend of 3p a share, three years after cancelling the pay-out due to the pandemic.
It comes as the company faces growing pressure over its treatment of customers, who have seen energy bills soar during the cost of living crisis.
Analysis by the Telegraph of calculations by Octopus Energy showed that British Gas customers were being billed £482m a year more simply because they have not set up a direct debit.
Britain's biggest household energy supplier has also come under fire over revelations in the Times that it sent debt agents to break into the homes of vulnerable customers to install prepayment meters as bills hit record highs.
Average household energy bills are due to rise by another £500 in April when the Government raises its cap to £3,000 from its present £2,500.
TUC general secretary Paul Nowak said: "While millions of families struggle to heat their homes, firms like Centrica are raking in monster profits."
Centrica profits increased eightfold on an earnings per share basis, with adjusted EPS hitting 34.9p, up from 4.1p in 2021.
The energy giant made an adjusted operating profit of £2.8bn last year if you exclude the company's £485m sale of Spirit Energy's Norwegian assets in May for £485m.
The business expects to pay £2.8bn in windfall taxes by 2028.
However, British Gas Energy suffered a 39pc decline in its adjusted operating profit compared to 2021, coming in at £72m.
This was despite increasing its residential energy customers by 4pc to 7.5m.
British Gas Services made an adjusted operating loss of £9m, down from a profit of £121m in 2021.
07:10 AM
Good morning
British Gas owner Centrica made record profits last year, with its adjusted operating profit of £3.3bn well ahead of analyst estimates.
The company is also rewarding its shareholders with a dividend of 2p a share and plans to extend its £250m share buyback programme by an additional £300m.
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2) Revolut poised for Treasury crackdown on unregulated crypto trades | Banking app’s ‘staking’ service could face new controls from City watchdog
3) Salmon price crisis for middle-class shoppers | Fish will get pricier because of ‘devastating’ Norwegian tax
4) New York Times accused by own writers of anti-trans bigotry | Newspaper faces backlash over claims it promotes 'pseudoscience'
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What happened overnight
Stocks in Asia rose adding fuel to a global equity rally that appeared to shrug off the prospect of higher interest rates following strong economic data from the US.
Equities in Australia, South Korea, Japan and China gained ground, pushing a gauge of the region's stocks toward its best day in a month.
The advance for Hong Kong shares snapped a four-day run of declines as JD.com, Tencent and Alibaba rose.
Tokyo stocks ended higher, with investors encouraged by rallies on Wall Street and a weaker yen against the dollar.
The benchmark Nikkei 225 index closed up 0.7pc at 27,696.44, while the broader Topix index added 0.7pc to 2,001.09.
Wall Street's main indexes closed higher as investors bet that the US Federal Reserve is unlikely to cut rates by the end of the year, but will instead keep the dollar stronger for longer to help fight inflation.
The Dow Jones Industrial Average closed up 0.1pc at 34,128.05. The broad-based S&P 500 finished 0.3pc higher at 4,147.6, while the tech-rich Nasdaq Composite climbed 0.1pc to 12,070.59.
The dollar also surged against the pound, while yields climbed 3.8pc for 10-year Treasury bonds to 3.799pc.
