Russia has admitted its economy could be decimated this year after it was hit by a wave of western sanctions following its invasion of Ukraine.
The country’s central bank predicted a fall in GDP of between 8pc and 10pc – a sharp revision of previous forecasts of growth between 2pc and 3pc.
The Kremlin has been forced to step in to prop up the Russian economy as it braces for a deep recession after being effectively cut off from the global financial system. However, it is still pocketing crucial revenues from energy exports.
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The Bank of Russia also slashed interest rates to 14pc – a bigger cut than expected – as it tries to stimulate investment. That’s despite forecasts that inflation could surge as high as 23pc by the end of this year.
Elvira Nabiullina, governor of the central bank, said Russia was in a “zone of colossal uncertainty”.
05:07 PM
Wrapping up
That's all from us for today, we will be back after the long weekend! While you wait, have a look at the latest stories from the business team:
Boris Johnson to meet North Sea oil and gas bosses amid energy crisis
North Sea oil gas
Boris Johnson will meet with key oil and gas producers to discuss the industry’s role in shoring up Britain’s supplies, following up on a new energy security strategy announced by the government earlier this month.
The roundtable discussion was originally scheduled for May 4, but it has been postponed and will now take place in the coming weeks, Bloomberg reported.
New oil and gas projects in the North Sea have dwindled in recent years as investors urged the industry to curb spending and environmental activists pressured it to tackle climate change. In a series of setbacks, Shell’s Jackdaw gas project failed to get environmental approval from the UK regulator and the Cambo field was put on ice amid intense public opposition.
With Russia’s invasion of Ukraine threatening fossil fuel supplies and sending energy prices higher, the government is now turning to the industry for help keeping domestic oil and gas resources flowing. It has introduced measures to spur new field developments in the North Sea, including the promise of a fresh licensing round later this year.
04:46 PM
Airbnb to let staff work remotely without cutting pay
Airbnb has told staff they can work from anywhere forever without their pay being affected. Laura Onita writes:
The holiday bookings app said that the majority of its employees will be able to work from home or the office and move anywhere in the country where they live from June.
“You can move from San Francisco to Nashville, or from Paris to Lyon,” chief executive and co-founder Brian Chesky said in an email to staff.
“You’ll have the flexibility to do what’s best for your life - whether that’s staying put, moving closer to family, or living in a place you’ve always dreamed of.”
Mr Chesky added: “If you move, your compensation won’t change.”
The decision is in contrast to the likes of Google in the US, where staff who work from home may have to take a pay cut.
We also had the most productive two-year period in our company’s history—all while working remotely
The FTSE 100 is on the rise, driven by miners and strong quarterly earnings, with investors now focused on the Bank of England meeting next week amid concerns over the soaring cost of living.
The blue-chip index closed 0.5pc higher at 7,544.
The Ukraine war, China's COVID lockdowns and surging inflation have weighed on the outlook for the global economy, sparking volatility ahead of a widely expected move by the British central bank to raise interest rates for a fourth straight meeting on May 5.
"The coming months will see the Bank of England performing a high wire balancing act between retaining credibility on inflation-targeting on the one hand and nudging the economy towards recession on the other," said Laith Khalaf, head of investment analysis at AJ Bell.
04:03 PM
Chinese developer sells another Nine Elms project for £187m loss
A Chinese developer behind the flagship Nine Elms regeneration has sold its 50pc stake in one of the biggest projects in the area for a massive loss following disappointing demand from tenants. Ben Gartside writes:
R&F Properties, which was developing Thames City with fellow Chinese developer CC Land, has sold its stake to its partner for HK2.66bn (£270m) including a loan after the pair paid £470m for the site in 2017.
The company said it is expected to record a loss of about £187m from the disposal after costs and investment in the project were taken into account.
Shareholders of Generali, one of Europe's largest insurers, have voted to re-elect the current set of leaders as one Italy's most followed boardroom battles draws to a close.
At the AGM, current chief Philippe Donnet gained the support of 56pc of shareholders, against 42pc for the list put forward by construction tycoon Francesco Gaetano Caltagirone, a rebel investor with a 9.95pc stake.
The current board was supported by Italian bank Mediobanca, Generali's majority shareholder with a 12.79pc holding.
Caltagirone was supported by Leonardo Del Vecchio, the founder and chair of the world’s biggest eyewear business Luxottica, who has been holding a grudge against Mediobanca over a rejected hospital donation in 2018.
03:21 PM
Charity trustees can choose planet over profit, court rules
The High Court has backed two charitable trusts who want to put planet ahead of profit in what could prove an important new ruling.
In a decision today, Mr Justice Michael Green approved the investment policies of two trusts that had aligned their targets to combat climate change.
Representatives for the two trusts - both linked to the Sainsbury family - said the decision would allow trustees to focus on avoiding the worst impact of climate change, even if that means excluding large parts of the market.
"The claimants have decided, reasonably in my view, that there needs to be a dramatic shift in investment policies in order to have any appreciable effect on greenhouse gas emissions and for there to be any chance of ensuring that there is no more than a 1.5C rise in pre-industrial temperature," Mr Justice Michael Green said.
The Charity Commission is already working on new guidance for trustees. It welcomed the decision, saying charities "understandably" want to invest ethically.
03:12 PM
Handing over
That's all from me for today – thanks for following! Giulia Bottaro will see you through to the weekend.
02:50 PM
HSBC's top shareholder backs break-up of bank
HSBC Asia Ping An Hong Kong - Budrul Chukrut/SOPA Images/LightRocket via Getty Images
HSBC's largest shareholder is reportedly pushing for a break-up of the bank, arguing that a separate Asia-listed division would create more value for investors.
Ping An, China's largest insurer, has held talks with the lender on the idea of spinning off its Asian operations and listing the business separately in Hong Kong, Bloomberg reports.
Ping An has held a major stake in HSBC since late 2017, and boosted its holding after a plunge in the share price in 2020. It owned 8pc of the bank at the end of last year.
While HSBC is a British bank listed in London, it makes most of its profit in Asia.
02:38 PM
Musk sells $8.5bn of Tesla shares ahead of Twitter takeover
Tesla boss Elon Musk sold $8.5bn (£6.8bn) of Tesla shares in the electric vehicle company as he geared up to splash $44bn buying Twitter.
Musk said in a tweet that there were "no further Tesla sales planned after today". He sold about 9.6m shares this week, equating to 5.6pc of his stake in the company.
Analysts had expected the world's richest man to sell part of his holding in Tesla to help fund his social media takeover.
Musk, whose net worth is estimated at $268bn by Forbes, has said he would provide a $21bn equity commitment for the deal. It's not clear where the remaining $12.5bn will come from.
02:00 PM
AO World shares plunge 20pc as customers cancel warranties
AO World - REUTERS/Carl Recine/File Photo
Shoppers are racing to cancel their repair warranties on electrical goods to save money, amid an escalating cost of living crisis.
Laura Onita has more:
AO World, which sells toasters, televisions and fridges, said that last month there was a spike in cancellations as customers tightened their belts to cope with higher bills and grocery costs.
It comes after almost a quarter of Britons said they were struggling to pay their household bills, according to data this week.
Cash-strapped shoppers have been cancelling subscription services such as Netflix and Disney+ and are buying more own-brand food from supermarkets.
Although the picture had improved since March, the company warned that the trend could have a material impact on profits.
Amazon has crashed 10pc at the opening bell, marking its biggest fall since July 2014.
It comes after the ecommerce giant revealed a loss for the first quarter and its slowest sales growth for two decades.
Apple, which also posted sluggish growth at the start of the year and warned on the impact of supply chain troubles, dropped 1.3pc.
The declines dragged the tech-heavy Nasdaq down 1.3pc, putting the index on track for its worth month since 2008. The S&P 500 fell 0.8pc and the Dow Jones was down 0.4pc.
01:27 PM
Johnson Matthey surges as investor builds stake
Shares in Johnson Matthey have posted their biggest surge on record after the manufacturing firm revealed a US investor has built up a significant stake.
The investment arm of Standard Industries holds cash-settled equity swaps that represent 5.2pc of voting rights in Johnson Matthey, according to a filing. Shares in the London-listed firm jumped as much as 36pc.
Earlier this year Johnson Matthey announced plans to shutter its battery division, instead betting £1bn on the nascent hydrogen sector.
New York-based Standard Industries last year acquired specialty catalyst manufacturer WR Grace & Co for $4.6bn.
01:13 PM
Jim Ratcliffe tables late £4bn bid for Chelsea
Sir Jim Ratcliffe Ineos - VALERY HACHE
Sir Jim Ratcliffe is said to have tabled a last-minute offer of more than £4bn to buy Chelsea FC.
The billionaire owner of chemicals giant Ineos held talks with Chelsea chairman Bruce Buck only yesterday and submitted his bid this morning, the Times reports.
Sir Jim is now taking on a trio of US consortiums vying to wrestle control of the club from sanctioned Russian oligarch Roman Abramovich.
He said the offer would include a pledge of investing £1.75bn in the club over 10 years to develop the stadium, team and infrastructure. This would be on top of meeting the valuation of about £2.5bn for the takeover.
The tycoon said Ineos was in a position to send the money and close the deal this weekend if required, added that he'd discussed the deal with the Government.
12:53 PM
EY hit by £2bn lawsuit over NMC Health collapse
EY NMC Health audit - HAYOUNG JEON/EPA-EFE/Shutterstock
The UK arm of EY is said to be facing a $2.5bn (£2bn) legal claim from administrators to collapsed hospital operator NMC Health.
A lawsuit against the Big Four accounting firm was filed in London this week accusing it of negligence in its work on NMC's accounts over a seven-year period, Sky News reports.
The claim will reportedly seek at least $2.5bn, with that sum potentially rising to $3bn. A successful claim would rank among the largest damages payouts involving the auditor of a major listed company.
NMC Health, a former FTSE 100 firm, collapsed in 2020 following revelations about major fraud that had kept billions of dollars concealed from its balance sheet.
12:40 PM
Treasury 'close' to picking new Bank of England rate-setter
The Treasury is said to be close to naming a new interest rate setter at the Bank of England.
Officials are looking for a replacement for Michael Saunders, one of the Bank's most hawkish policymakers, whop is stepping down in August at the end of his second three-year term.
The recruitment process for the four external members of the nine-strong Monetary Policy Committee is run by the Treasury, which has finished interviewing candidates, Bloomberg reports.
Both the Treasury and BoE are keen to improve the diversity of the MPC, on which there are only two women and no one from an ethnic minority.
CBI chief economist Rain Newton-Smith and Jagjit Chadha, director of NIESR, have both been touted as potential candidates.
It comes at a crucial time for the Bank, which is grappling with the highest inflation in three decades, a looming economic slowdown and the biggest fall in living standards since the 1950s.
12:25 PM
HSBC bets pound will drop to $1.20
HSBC have cut their forecast for the pound, predicting it will drop to $1.20 in the year ahead.
The bank cited worsening global risk appetite given Russia's war in Ukraine and fresh Covid outbreaks in China, noting sterling was "exposed to these developments due to the UK's status as a small, open economy".
Analysts wrote: "The factors driving sterling depreciation are not particularly new. It is just that the issues have become much more challenging, much faster."
They also pointed to the looming threat of an economic slowdown, which is making it harder for the Bank of England to raise interest rates to tackle inflation.
12:03 PM
Shell to buy Indian renewable energy firm for $1.55bn
Shell has agreed to buy Indian renewable energy supplier Sprng Energy Pvt for $1.55bn (£1.23bn) as the oil giant looks to wean itself off fossil fuels.
The company said the deal will triple its operational renewables capacity and help it to shift to net-zero emissions by 2050.
Shell has come under pressure from climate activists and some investors to accelerate its transition to renewable sources of energy.
Wael Sawan at Shell said:
This deal positions Shell as one of the first movers in building a truly integrated energy transition business in India. It will enable Shell to become a leader across the power value chain in a rapidly growing market.
11:19 AM
Jeff Bezos loses $13bn as Amazon shares slump
Jeff Bezos Amazon - PAUL ELLIS/AF
Jeff Bezos has watched $13bn (£10.4bn) of his fortune wiped out in a matter of hours after Amazon's quarterly results left investors disappointed.
Shares in the ecommerce giant slumped more than 9pc in pre-marking trading after it reported a quarterly loss and the slowest sales growth since 2001.
If the losses persist, Bezos' net worth will drop to a paltry $155bn, according to Bloomberg. At its peak last year, he was worth more than $210bn.
The Amazon founder – the world's second richest person after Elon Musk – was already one of the biggest wealth losers this year, with his fortune dropping by $23bn before yesterday's results.
US stocks are set to extend losses at the end of the week after the latest wave of tech results left investors disappointed.
Futures tracking the tech-heavy Nasdaq dropped 1.2pc after both Apple and Amazon delivered lacklustre growth in their latest quarterly figures.
Tesla bucked the trend, rising 4.2pc in pre-market trading after Elon Musk said he doesn't plan on selling any more shares.
The spectre of rising interest rates has taken its toll on tech stocks, dragging the Nasdaq down 9.3pc this month. That's its worst performance since November 2008.
Futures tracking the benchmark S&P 500 fell 0.9pc, while the Dow Jones was down 0.5pc.
11:00 AM
Kremlin mulls pegging rouble rate to gold
The Kremlin has said it's discussing the idea of pegging the rouble rate to gold prices, but did not provide any further details.
Russia has been scrambling to keep its currency propped up after its invasion of Ukraine sparked a huge sell-off.
Moscow has implemented a range of capital controls, as well as restrictions on trading in Russian shares, in an effort to keep the economy running artificially.
10:52 AM
Germany says Russian gas account won't breach sanctions
German energy firm Uniper has insisted it wouldn't be in breach of EU sanctions if it opened a Russian bank account in euros to pay for gas.
A spokesman for the company said: "For us, the account number doesn't matter, or the question of whether one or two accounts are opened in one place.
"For us, it matters whether the payment happens in euros and dollars, as it is laid out in the contracts."
Putin has demanded that buyers set up two accounts with Gazprombank – one in a foreign currency and another in roubles. The Russian lender would then convert payments to local currency.
But there's confusion over whether such a move would breach EU sanctions. While some companies have embraced the move as a workaround, the bloc has warned it would fall foul of rules as it would constitute a loan to Russia's central bank, which is under sanctions.
10:39 AM
Bank of Russia slashes interest rates
Elvira Nabiullina, governor of Russia's central bank - Andrey Rudakov/Bloomberg
Right on cue, the Bank of Russia has slashed interest rates – by even more than expected.
Three weeks after reversing part of its emergency rate hike in the wake of the invasion, the central bank lowered its key rate from 17pc to 14pc. Economists had been predicting a cut to 15pc.
Moscow is trying to prop up Russia's economy as the country braces for a deep, two-year recession after its economy was hammered by western sanctions.
The Bank of Russia, led by governor Elvira Nabiullina, hinted there was room for further rate cuts as it expects inflation to surge as high as 23pc by the end of the year.
The central bank also downgraded its GDP forecasts to a slump of between 8pc and 10pc. It had previously expected between 2pc and 3pc growth.
10:24 AM
Rouble hits two-year high against euro ahead of rate cut
The rouble has climbed to its highest level against the euro in more than two years as traders awaited an expected rate but by Russia's central bank.
The currency rose 1.1pc to trade at 74.55 against the euro, having earlier hit its strongest level since March 2020. Against the dollar it rose 1.6pc to 70.92, having climbed to a six-month high.
Movements on the Russian market are in part artificial, as Putin is propping up the economy with capital controls, as well as a ban on short selling and foreigners withdrawing their investments.
Meanwhile, the Bank of Russia is expected to cut its key interest rate to 15pc as it tries to stimulate more lending in the face of high inflation.
10:15 AM
Oil prices head for longest run of gains since 2018
Oil prices are poised to rack up their fifth consecutive month of gains after another turbulent period of trading amid the war in Ukraine and fresh lockdowns in China.
Benchmark Brent crude rose 2pc to just shy of $110 a barrel this morning, while West Texas Intermediate was trading close to $107.
Prices are up nearly 6pc in April and another month of gains would mark the longest winning streak since January 2018.
Oil has been driven higher since the start of the war amid fears over supply disruption and sanctions. Germany has now said it won't block a ban on Russian oil, though Europe's largest economy remains reluctant over the move.
An outbreak of Covid in China has been another source of volatility, with traders fearing a slump in demand from the world's biggest consumer.
10:04 AM
Slovakia says it hasn't activated Russian gas accounts
Slovakia has said it hasn't it hasn't activated new euro and rouble accounts set up by Gazprombank to pay for Russian gas.
The accounts were opened after Putin's demand that "unfriendly" countries pay in roubles, though the EU has warned doing so would breach sanctions.
Karol Galek, Slovakia's deputy economy minister, said the new accounts hadn't been activating, adding that the EU must take a common approach to payments.
Slovakia relies on Russia for more than 80pc of its natural gas.
09:49 AM
Gas prices fall as EU firms look to swerve sanctions
Natural gas prices have fallen for a second day as European firms look for ways to keep paying for Russian gas without breaching sanctions.
Germany's Uniper, Italian firm Eni and Austrian rival OMV are all said to be preparing rouble accounts at Gazprombank, allowing them to keep paying for supplies.
The firms have argued the move complies with the law, but EU officials have said opening rouble accounts would violate sanctions.
The row shows how the bloc's unity in the face of Russia's aggression is starting to crack.
Benchmark European gas prices slipped as much as 3.9pc, while the UK equivalent lost 3pc.
09:34 AM
UK sickness absences surge to highest since 2010
UK workers called in sick at the highest rate since 2010 last year as Covid restrictions began to ease.
The illness absence rate rose to 2.2pc in 2021 after slumping to a record low of 1.8pc the year before as lockdowns stopped diseases from circulating, according to the ONS.
The figures highlight the labour shortages threaten to hamper the post-pandemic recovery for businesses. In turn, those shortages have forced firms to raise wages to attract staff, driving inflation even higher.
The ONS stats also showed that sickness rates were highest in Wales and lowest in London, while public sector workers report a consistently higher rate of illness than those at private companies.
ONS sickness absence Covid - ONS
09:18 AM
Eurozone inflation holds at record high
Eurozone inflation held at a record high of 7.5pc in April in the latest blow for squeezed consumers.
The consumer price index hit 7.5pc this month, marginally up from 7.4pc in March, driven by a 38pc surge in energy costs.
But even stripping out volatile components such as energy and food, core inflation rose to 3.5pc – a worrying sign that price rises have become entrenched in the economy.
⚠️ Core Eurozone CPI posts record high at 3.5%. Europe now showing the type of inflation breadth seen in the US. 2nd round effects of energy shock clear. If the ECB wants to get to 0% quick... why wait until July to hike. Growing risks they throw in the towel & hike in June $EURpic.twitter.com/OFvvm0Epqw
Collapsed energy supplier Bulb has officially been classed as a public sector body.
The Government was forced to place the company into special administration in November after it was caught out by the huge surge in wholesale gas prices. The administration is being handled by Teneo.
The ONS has concluded that Bulb is subject to public sector control, as it now requires government consent to take out contracts, make appointments and sell and acquire assets.
The OBR estimates that government payments to Bulb will increase the budget deficit by £1.2bn in the last financial year, though the Treasury has set aside an extra £1bn of taxpayer funds to keep the firm afloat.
The boss of Travis Perkins is hoping his company will cash in on a dash for insulation as Britons try to plug gaps in their homes ahead of next winter's painful heating bills.
Nick Roberts said the firm had made a strong start to the year and was expecting a boost from increased demand.
He said: "The group has had an encouraging first quarter and, although the wider economic backdrop remains uncertain, we are well placed to build on this positive start in the coming months.
"The energy efficiency of the UK's built environment remains a key focal point for households and politicians alike and the current cost of energy is likely to prompt further demand for improvement in both new and existing buildings."
However, Travis Perkins warned inflation in raw material costs could be higher than expected in the second half of the year.
08:49 AM
Barclays halts some debt activities after £540m error
Barclays has suspended market-making activities in its own debt securities as it tries to fix a paperwork blunder that saw it mistakenly issue $15bn (£11.9bn) of US securities.
The suspension impacts the securities of both Barclays and its investment banking arm. The lender said it “will continue to evaluate the extent to which it can resume market making in any such individual security”.
Barclays, which has commissioned an external review into the blunder, said this week that the error showed “material weakness” in relation to the group’s internal control environment.
As a result, the bank and its subsidiary are preparing amendments to their annual reports to reflect this.
08:38 AM
Ad watchdog to censure HSBC over greenwashing
Extinction Rebellion protesters at HSBC's Canary Wharf offices last year - REUTERS/John Sibley
The UK advertising watchdog is reportedly preparing to warn HSBC about greenwashing in its adverts in a ruling that could have wider implications for the financial sector.
The Advertising Standards Authority has ruled that the bank misled customers in two adverts by selectively promoting its green initiatives, while omitting information about its financing of firms with large greenhouse gas emissions, according to a draft report seen by the Financial Times.
The adverts, which garnered 45 complaints, were at bus stops in Bristol and London in October last year.
One said the bank would provide $1 trillion (£796m) in financing for clients to transition to net zero, while the other pledged to plant 2m trees to trap 1.25m tonnes of carbon.
But the ASA cited information from HSBC's annual report disclosing that its current financed emissions equated to 35.8m tonnes of carbon dioxide per year for oil and gas projects alone.
The ASA ruled that the effect of the two adverts was to lead customers to believe that HSBC was making “a positive overall environmental contribution as a company”, which could influence their decision about using the bank.
08:23 AM
Pound bounces back
Sterling has rebounded against the dollar, trimming its weekly losses to 2.2pc.
The pound rose 0.8pc to $1.2556, reversing days of losses against the dollar amid rising expectations of Federal Reserve interest rate rises.
Against the euro, the pound rose 0.1pc to 84.23p.
08:16 AM
Germany swerves recession
Germany has narrowly avoided a recession as its economy expanded modestly in the first quarter.
GDP in Europe's largest economy rose 0.2pc in the first three months of the year after dropping 0.3pc at the end of 2021.
Despite swerving a technical recession, statistics agency Destatis warned the war in Ukraine had had a "growing impact" on economic growth.
Meanwhile, Italy's economy contracted 0.2pc in the first quarter.
Pearson shares have pushed higher this morning after the FTSE 100 education group posted 7pc growth in sales over the first quarter.
Analysts at Barclays said the figures were ahead of expectations, signalling a strong start to the year.
Pearson also announced the acquisition of online learning platform Mondly, which it said would boost revenue growth for its English language learning division from 2023.
07:56 AM
Amazon hit by slowest growth in two decades
ICYMI – Amazon has suffered its slowest growth for two decades, knocking $150bn (£120bn) off its value on Thursday, as the pandemic internet shopping boom ground to a halt.
James Titcomb reports:
The online retail giant said revenues rose by 7pc in the first three months of the year to $116.4bn. This was the slowest growth since 2001, in the aftermath of the dotcom bubble.
It also revealed its first loss since 2015, as costs soared and it took a heavy hit on its investment in the electric carmaker Rivian.
Shares fell almost 10pc in after-hours trading as the company issued disappointing forecasts for the next quarter. It said sales could grow by as little as 3pc, well below Wall Street forecasts.
Amazon is grappling with rising cost of fuel and shipping, as well as higher wages and supply constraints due to shutdowns in China. It has warned investors to expect lower profits as it grapples with costs.
The figures come amid questions over the sustainability of the online shopping boom as economies continue to reopen.
Musk sells $4bn of Tesla shares after Twitter deal
Elon Musk Twitter Tesla - Patrick Pleul/Pool via REUTERS/File Photo
Elon Musk sold about $4bn (£3.2bn) worth of Tesla shares after securing a blockbuster $44bn deal to buy Twitter.
The chief executive of the electric car maker offloaded about 4.4m shares on April 26 and April 27, filings showed. Analysts suspected Musk may need to sell some stock to cover the $21bn equity portion of the deal he's personally guaranteed.
The Tesla chief tweeted shortly after the filings were made public that he has "no further Tesla sales planned after today".
Still, Tesla investors may be unsettled by Musk's high-profile efforts to take control of Twitter, which could be seen as a distraction for the world's richest person.
Shares in AO World slumped as much as 23pc after the online retailer cut its forecast for full-year profit.
The company said the downgrade reflected lower sales volumes and higher costs in logistics, as well as driver shortages across the industry.
AO World also racked up higher marketing costs in Germany. It's currently exploring a sale of its business in the country.
Analysts at Jefferies lowered their price target on the stock, saying the retailer had reported a "tough end to the year".
07:33 AM
FTSE risers and fallers
The FTSE 100 looks set to end the week on a high note as investors turn their attention to a string of corporate results.
The blue-chip index gained 0.4pc in early trading, with miners driving momentum. Glencore, Rio Tinto and Anglo American all gained ground.
Smurfit Kappa was the biggest riser, gaining more than 3pc after the packaging firm said its revenues and profits both surged by a third in the first quarter.
Education giant Pearson rose as much as 2.4pc after confirming its forecasts for full-year profit.
Consumer goods giant Reckitt Benckiser has become the latest company to warn on the impact of soaring production costs.
The Dettol and Air Wick maker reported a 2.3pc drop in sales in the first quarter, though on a like-for-like basis – stripping out the selling off of some of its brands – sales were up 5.6pc.
The group's hygiene division suffered the most, dropping 9pc as sales of its Lysol disinfectant products failed to keep pace against a pandemic-driven boom in demand last year.
Reckitt's health division, including Lemsip, Strepsils and its Durex condom range, rose 20.6pc on a like-for-like basis.
The FTSE 100 firm said full-year sales will be at the top end of its guidance, driven by price rises. But it warned of an uncertain outlook as inflation hits consumer spending.
Chief executive Laxman Narasimhan said:
As we look to the balance of the year, the operating environment remains highly unpredictable.
We are well placed to address these market dynamics through the strength of our brands, our favourable product mix, our productivity programme and the responsible pricing initiatives already undertaken, with scope to take further actions.
07:07 AM
AstraZeneca warns of Covid sales slump
AstraZeneca Covid vaccine - Jonathan NACKSTRAND / AFP
AstraZeneca has said it expects revenue from its Covid medicines to drop by more than a fifth this year as demand for its life-saving vaccine begins to wane.
The FTSE 100 pharma giant said declining sale of its jab would be partially offset by Evusheld, a Covid treatment that was last month approved for use in the UK with patients with poor immune responses.
The vaccine recorded $1.15bn (£920m) in sales in the first quarter, while the antibody treatment brought in $469m.
AstraZeneca's overall revenue jumped by 60pc to $11.4bn, beating analyst expectations by almost half a billion dollars. It also stood by its full-year forecasts as it pins its hopes on newer therapies for kidney disease and rare conditions.
Shares fell 0.5pc after the update.
07:01 AM
FTSE 100 opens higher
The FTSE 100 has pushed higher at the open amid another flurry of corporate results.
The blue-chip index rose 0.5pc to 7,546 points.
06:54 AM
French economy grinds to a halt
France's economic growth unexpectedly ground to a halt in the first quarter as consumer spending dropped in the face of soaring energy bills and the war in Ukraine.
There was no change in GDP over the first three months of the year, marking a sharp slowdown from from the 0.8pc growth recorded at the end of 2021.
While a slowdown was expected, the figures were far worse than the 0.3pc growth forecast. Consumer spending – the key driver of French growth – slumped 1.3pc amid waning confidence.
The figures highlight the cost-of-living crisis that will dominate the start of President Emmanuel Macron's new term after he secured victory against far-right leader Marine Le Pen last week.
🇫🇷 GDP stagnated in Q1 2022 (0.0% q-o-q after +0.8%) due to a sharp decline in consumer spending and slower investment. Contributions to GDP growth: Domestic demand ex inventory changes: -0.5 Foreign trade: +0.1 Inventory changes: +0.4https://t.co/udvZwxgz9upic.twitter.com/fIBGOOcTob
NatWest profits hit £1.2bn on rising interest rates
NatWest bank interest rates - Chris Ratcliffe/Bloomberg
NatWest's profits have doubled over the last three months as the bank benefited from higher interest rates and a post-lockdown boost.
The lender posted pre-tax profits of £1.2bn in the first quarter, up from £573m in the final three months of 2021 and ahead of analysts' expectations.
This was driven by strong growth in its mortgage division and favourable movements in the bond market. Retail banking also improved as consumer spending levels recovered following the end of Covid restrictions.
NatWest released £38m from its provisions for failing loans, though it warned the outlook was set to darken as the cost-of-living crisis hits households.
Chief executive Alison Rose said: "The world has changed considerably during the last three months... We are also very aware of the challenges and concerns the cost-of-living crisis is causing for many of our customers up and down the country."
It comes after the Government finally gave up majority control of NatWest for the first time since the financial crisis, selling down its stake to 48pc.
06:39 AM
House prices in longest winning streak since 2016
UK house prices rose for a ninth consecutive month in April as the market continue to shrug off the escalating cost-of-living crisis.
The average price of a home rose 0.3pc to a new record high of £267,620, according to the latest figures from Nationwide.
That's up 12.1pc from a year ago and marks the longest streak of gains since 2016.
A supply shortage is continuing to underpin demand, but Nationwide warned rising interest rates, surging inflation and a huge jump in energy bills were almost certain to bring the boom to an end.
April's growth was behind the 0.8pc expected by economists, while annual growth slowed from the 14.3pc recorded in March.
Robert Gardner, chief economist at Nationwide, said:
We continue to expect the housing market to slow in the quarters ahead. The squeeze on household incomes is set to intensify.
06:28 AM
Germany says it won't block oil ban
Good morning.
After weeks of resistance, Germany appears to have dropped its opposition to sanctions on Russian oil.
Europe's largest economy has long tried to block a ban on the Kremlin's energy, warning such a move would spark recession across the continent.
But Vice Chancellor Robert Habeck has now said Germany "won't stand in the way" of new sanctions. He added that the country had cut its reliance on Moscow, meaning it would no longer experience a "national catastrophe" if an embargo were imposed.
But Mr Habeck still appeared sceptical about the move, and there was no mention of sanctions against Russian gas.
Equity markets in Asia mostly rose Friday following a positive lead from Wall Street but optimism remains at a premium as traders operate under the shadows of war, soaring inflation, US interest rate hikes and China's lockdowns.
Economics: GDP (EU), Nationwide house price index (UK), personal income (US), personal spending (US), Chicago PMI (US), Michigan Consumer Sentiment Index (US)
Maxine Longmuir, 69, was thrilled when she won a £2,500 holiday to Portugal on the ITV quiz show, but claims she was left devastated when she was told she was unable to rebook it
David Jason and Nicholas Lyndhurst will forever be remembered for their roles as Del Boy and Rodney Trotter in Only Fools and Horses, but the pair's relationship off-screen has been far from perfect.
They contain a triple whammy of alpha linolenic acid, fibre and lignans which help protect against heart disease, high blood pressure and high cholesterol
The Queen might have dined on some of the finest food in the world - but she was still partial to the occasional takeaway, and would send a footman to collect it
Prince Harry was left upset by his father's decision to evict him and Meghan from Frogmore Cottage as they were under the impression that the property would always be available to them, according to a royal expert.
The Prince and Princess of Wales released a new portrait of their youngest son, Prince Louis, pictured outside in Windsor, on his actual birthday on 23 April
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