Yahoo Finance Trump’s wealth surges by $5.5bn as Truth Social starts trading in New York
Donald Trump has entered the ranks of the world’s 500 richest people after shares in his social media company surged on their Wall Street debut.
Shares in Trump Media and Technology Group (TMTG), the entity behind Mr Trump’s Twitter rival Truth Social, rose by more than 50pc at one point after it arrived on the Nasdaq exchange through a merger with a listed cash shell.
This values Mr Trump’s majority stake in the company at more than $5.5bn (£4.3bn), sending his estimated net worth to more than $8bn.
This would be enough for entry into the list of the world’s 500 richest people according to Bloomberg’s Billionaires Index.
TMTG started trading on Tuesday under the stock ticker “DJT”. Dealing in the company’s shares was so frantic that trading was briefly suspended. Shares later fell back slightly though were still up 33pc on the day.
The deal cleared its final hurdle last Friday when voters in Digital World Acquisition Corp, the listed shell company that TMTG has combined with, approved the merger. It will give TMTG a $300m cash injection.
Mr Trump is likely to be unable to sell shares for six months as a result of restrictions associated with the listing designed to protect smaller shareholders. However, the company’s board may be able to relax the rules.
Mr Trump announced the launch of Truth Social after the former president was kicked off Twitter in the final days of his presidency. The company is run by Devin Nunes, a former Republican Congressman.
The merger to combine the company with Digital World was announced in 2021 and was meant to have been completed the following year but has been delayed by regulatory investigations. Approval of the deal had also been delayed by a dispute between Digital World and its former chief executive Patrick Orlando over how much his investment company would receive as part of the merger.
Mr Trump is expected to own around 58pc of the combined company. He will not have a formal role but its board will include his son Donald Trump Jr as well as three officials who worked in his administration.
TMTG was valued at up to $10bn by the share surge, several times more than the $875m valuation it was ascribed when the merger with Digital World was first mooted.
Shares are believed to have been pushed up by Mr Trump’s supporters, who have bought shares as a way of backing the former president ahead of this year’s election. Trading has been likened to the “meme stock” online investing frenzy that drove the values of companies such as GameStop to stratospheric levels in 2021.
The leap on Tuesday puts TMTG’s value slightly below social media company Reddit, which went public last week, despite having only a fraction of the latter’s user base and revenues.
Truth Social reported revenues of $3.4m in the first nine months of 2023, compared to $554m for Reddit in the same timeframe. Mr Trump’s company lost $49m over the nine-month period.
It also has around 5m monthly active users, according to estimates, which would value the company at around $2,000 for each user. In comparison, Meta is worth slightly more than $400 per user and Snapchat around $24 per user.
The deal is a boost for Mr Trump who has faced mounting legal bills linked to various court battles. He won a reprieve on Monday when a judge reduced a bond payment associated with a New York civil fraud judgement from $454m to $175m.
Mr Trump was known for his prolific usage of Twitter during his presidency and posts on Truth Social several times a day, although his audience of 6.8m followers pales in comparison to his 87m Twitter followers.
Mr Trump’s suspension from Twitter was lifted after Elon Musk bought the social network and renamed it X. However, Mr Trump has only tweeted once, after his arrest last August on racketeering charges, posting his mugshot and a link to his campaign website.
Writing on Truth Social on Tuesday, Mr Trump posted: “I LOVE TRUTH SOCIAL, I LOVE THE TRUTH!”
Read the latest updates below.
06:13 PM GMT
Signing off
That’s all from us! See you first thing in the morning.
06:13 PM GMT
UK paper and packaging company DS Smith confirms takeover talks
UK paper and packaging company DS Smith has confirmed it is in takeover discussions with New York-listed rival International Paper.
Under the terms of the proposal, DS Smith shareholders would receive 0.1285 shares in International Paper for each share they own in DS Smith.
The potential tie-up would result in DS Smith shareholders owning about 33.8pc of the combined International Paper-DS Smith group.
DS Smith said its board acknowledges the “strategic merits” by combining with International Paper.
05:08 PM GMT
Dell cut 13,000 workers last year
Dell Technologies cut 13,000 employees last year, a steeper reduction in headcount than initially announced.
New filings show that the US technology company had 120,000 employees across all its offices as last month, down nearly 10pc on the previous year.
Dell Technologies has been under pressure to cut costs amid weak sales of personal computers.
Last year, Dell executives announced they would cut about 6,650 roles, Bloomberg reported.
The Texas-based computer manufacturer: “Despite these difficult decisions, we continue focused efforts to empower our employees and attract, develop, and retain talent.”
04:40 PM GMT
FTSE 100 closes in the green
The FTSE 100 has closed 0.17pc higher at 7,930.96, while the FTSE 250 has ended the day 0.84pc up at 19,777.64.
Kingfisher, Marks & Spencers and JD Sports are the FTSE 100’s top three risers, while Auto Trader, Beazley and Rio Tinto are the index’s biggest fallers.
04:11 PM GMT
Alibaba scraps IPO plans for logistics arm
Chinese online retail giant Alibaba has scrapped plans to list its logistics unit in Hong Kong amid challenging market conditions.
The e-commerce company, founded by Chinese billionaire Jack Ma, on Tuesday said it will withdraw its initial public offering application for its Cainiao business in Hong Kong.
Alibaba, which is one of the world’s largest retailers, instead proposed to buy all outstanding shares of Cainiao held by investors and employees for $3.75bn.
Alibaba already owns 64pc of Cainiao. The deal now values Cainiao at $10.3bn.
The company also said that current market conditions would “unlikely garner a valuation” that reflects Cainiao’s strategic value to Alibaba’s business.
03:38 PM GMT
Handing over
That’s all from me for today. Adam Mawardi is back in his old slot for today and will keep you updated with the latest goings on into the evening.
I’ll leave you with this shot of the Mercedes-Benz Vision One-Eleven, its 1970s-inspired concept supercar, which goes on show at the 45th Bangkok International Motor Show in Thailand, which starts tomorrow.
03:19 PM GMT
BBC’s plans for adverts are ‘worrying’ says GB News boss
The BBC pushing into the advertising market is a “worrying and very concerning development,” according to the boss of GB News.
The corporation has faced a backlash from publishers and broadcasters over plans to introduce adverts on its radio and podcast output.
The public service broadcaster is exploring proposals to place ads around some of its programmes when they are streamed via platforms such as Spotify and Apple in the UK.
Appearing before the Lords Communications Committee, GB News chief executive Angelos Frangopoulos said:
British broadcast news has got a global reputation. I think there is a really important role for the PSBs (public service broadcasters) but that does not meant that there shouldn’t be other broadcasters that provide public service. Public service is not exclusive to the PSBs.
I think it’s really important that ways be found to make the BBC sustainable and that journalism which they do produce.
I am somewhat alarmed, though, at the idea of the BBC entering the advertising market.
That is a worrying and very concerning development, particularly when it would make it even more difficult for new entrants such as ourselves to operate in the marketplace.
But I do think there is something really important about what the PSBs deliver.
03:12 PM GMT
Maersk to bypass Baltimore port after bridge collapse
Danish shipping company Maersk has said its vessels will omit the Baltimore port for the foreseeable future due to the ship collision that destroyed the Francis Scott Key Bridge and blocked access to the harbour.
The Dali container vessel involved in the incident was chartered by Maersk but none of the company’s crew or personnel were onboard at the time of the incident.
02:59 PM GMT
Ofcom does not allow for ‘ability of the audience to discern,’ says GB News boss
The media regulator Ofcom does not appreciate that audiences are “very discerning” when scrutinises the output of different broadcasters, according to the boss of GB News.
Appearing before the Lords Communications Committee, the channel’s chief executive Angelos Frangopoulos said:
There is a sense of treating the audience like a single common denominator.
Audiences now are very sophisticated. They receive news through multitudes of services.
In broadcast, we compete on the open playing field - on the digital playing field. We believe it is important that we are part of an ecosystem that does reach as many people in the United Kingdom as possible.
We respect the fact that we have been able to launch on broadcast platforms, whether it be television or radio.
But I do think the regulatory environment does not allow for the ability of the audience to discern.
Ofcom has got an obligation to consider various markets that broadcasters address as well.
There is no homogeneous viewpoint that audiences will just sit there and take. I think for a democracy there are different perspectives.
02:42 PM GMT
GB News boss insists channel has ‘very clear delineation’ between news and opinion
The boss of GB News has insisted the channel makes it “absolutely clear” what is the difference between news and opinion with changes in its logo on screen.
Appearing before the Lords Communications Committee, the channel’s chief executive Angelos Frangopoulos said there is a “very clear delineation of how that content sits on our channel”.
He told peers: “We use features that make it very clear for our audience.”
He described the changes from the current affairs discussions to the news bulletin on screen, which is presented and compiled by a separate team.
Describing the end of the news bulletin, Mr Frangopoulos said: “At the same time on our screen, the logo changes from GBN to GBNews to make it absolutely clear that there is a delineation between what’s the news bulletin and what is the current affairs and opinion programme.”
02:36 PM GMT
Cocoa prices surge above $10,000 for the first time after faster rise than bitcoin
The price of cocoa has surpassed $10,000 a ton for the first time as the record rally in the price of the crop eclipsed the recent surge in bitcoin.
Chocolatiers have been scrambling to secure supplies of the bean after disease ravaged harvests in West Africa.
Futures jumped as much as 4.5pc to $10,080 in New York on Tuesday — a level that seemed unthinkable only a few months ago.
Prices are ratcheting up at a frantic pace, having only broken $9,000 for the first time on Monday. Cocoa has risen by 273pc over the past 12 months, a rally which demonstrates the “complete panic” that has gripped the market, according to Ole Hansen, head of commodity strategy at Saxo Bank.
By contrast, bitcoin surged by a mere 163pc over the last year on its way to hitting a new record high of $73,780.07 earlier this month.
Megan Fisher of Capital Economics, said:
It is difficult to say for how long the rally may continue. We suspect that current prices are unsustainable, and that there may be a downward correction by the end this year.
The bigger picture, though, is that cocoa prices are still likely to remain elevated by historical standards for some time, even if the current rally ends.
02:29 PM GMT
Trump Media’s valuation is ‘proxy on the enthusiasm of supporters’
Shares of Donald Trump’s social media company jumped more than 50pc in the first day of trading on the Nasdaq in a sign of the “enthusiasm of supporters” for the former president, according to investors.
Trump Media & Technology Group was acquired on Monday by a blank-check company called Digital World Acquisition Corp.
Trump Media, which runs the social media platform Truth Social, has now taken Digital World’s place on the Nasdaq stock exchange.
Before trading began, Trump Media had a market value of about $6.8bn, a figure that will rise significantly if the early gains in the shares hold.
The shares are trading under the ticker symbol “DJT.” Trump holds a nearly 60pc ownership stake in the company.
Thomas Hayes, chairman of Great Hill Capital, said:
The valuation of the business is rich relative to its underlying fundamentals, but I would not get in front of it in the near term.
This valuation may be more of a proxy on the enthusiasm of supporters for Trump than a reasonable estimate of underlying business prospects.
01:57 PM GMT
Trump’s media company surges in Nasdaq debut
Shares of Trump Media & Technology Group have surged 37pc in their debut on the Nasdaq that comes more than two years since its merger with a blank-cheque firm was announced.
The company’s market capitalisation hit $9.1bn (£7.2bn) on an undiluted basis as trading in the shares was briefly halted for volatility just after the opening bell.
Trump’s majority stake in TMTG was last valued at $5.3bn, although lock-up restrictions for six months could prevent him from selling or borrowing against his shareholding.
TMTG, which owns social media platform Truth Social, officially merged with blank-check company Digital World Acquisition Corp on Monday.
Shares of Digital World, which is now TMTG and trades under the ticker “DJT”, had surged more than 35pc that day.
Trump, who is facing four criminal trials in his race to US presidency, has been struggling to raise money for his campaign and legal expenses.
It came as Wall Street’s main indexes opened higher on Tuesday as most megacap growth stocks and chipmakers advanced.
The Dow Jones Industrial Average rose 24.68 points, or 0.1pc, at the open, to 39,338.32.
The S&P 500 opened higher by 10.66 points, or 0.2pc, at 5,228.85, while the Nasdaq Composite gained 62.38 points, or 0.4pc, to 16,446.85 at the opening bell.
01:51 PM GMT
PM: I deplore pre-Budget leaks
Rishi Sunak has said he deplores leaks but could not “recall” whether a leak inquiry was launched after the planned national insurance cut was reported in the media before the spring Budget.
Facing a grilling by the Commons Liaison Committee today, the Prime Minister said:
I deplore these leaks, particularly around Budget measures. I suffered from them as chancellor myself.
I can’t recall the specific situation around that leak inquiry...
In general leak inquiries are instituted when there is a leak of sensitive information. Obviously it has historically proved difficult to identify the culprits of those, but... it’s certainly not in the Government’s interest to have sensitive Budget measures leaked in advance.
Watch the committee hearing below and follow it in our politics live blog.
01:41 PM GMT
BBC could make wealthy pay more for licence fee
The BBC is to consider making the wealthy pay more for the licence fee, Tim Davie has said, acknowledging that the current system “needs reform”.
Our arts and entertainment editor Anita Singh has the details:
The corporation will also look at licence fee non-payment and whether criminalisation is the best option.
“There is no doubt that the market has changed hugely since the licence fee was introduced and I think it is right ask fundamental questions about its longevity,” the director-general told the Royal Television Society.
“Given the changes in technology and audience behaviour, we will proactively research how we reform the licence fee post-2028, looking at its definition, whether it can and should be made more progressive, and ensuring that its enforcement is fair and proportionate.”
He added: “The licence fee needs reform, in my view.”
Read what it means for the licence fee.
01:22 PM GMT
Irn-Bru maker’s sales jump by a quarter
Soft drinks company AG Barr revealed robust sales and pointed towards a positive performances for 2024 despite pressure on consumers.
The Irn-Bru and Rubicon maker revealed that sales jumped over a quarter during the past year as it was boosted by acquisitions and resilient consumer demand.
It revealed that revenues grew by 25.9pc to £400m for the year to January 28, compared with a year earlier.
AG Barr said this was supported by “strong” growth across its brand portfolio, with an 8pc rise in like-for-like revenues.
It also benefited from a first full-year of ownership of the Boost energy drink business it bought in December 2022.
The company saw adjusted pre-tax profits rise by 16.1pc to £50.5m for the year, surpassing industry expectations.
Chief executive Roger White, who will step down from the business next month, said he was optimistic about the profit outlook amid steadier costs and reduced price increases for customers.
“The outlook is certainly more settled from a price and cost point of view,” he told PA.
01:00 PM GMT
Global retirement crisis looming, warns world’s largest fund manager
The world is facing a looming “retirement crisis” as people live longer, the head of the world’s largest fund manager warned.
Our reporter Michael Bow has the latest:
Larry Fink, chief executive of BlackRock, said longer lives meant workers may have to retire later in life to ensure their savings pots tide them over until their death.
In his closely watched annual letter, which is distributed to investors and chief executives, Mr Fink said: “No one should have to work longer than they want to. But I do think it’s a bit crazy that our anchor idea for the right retirement age — 65 years old — originates from the time of the Ottoman Empire.
“When people are regularly living past 90, what should the average retirement age be?”
Read why Mr Fink is raising his concerns.
12:37 PM GMT
Wall Street on track to open higher
US stock indexes have bounced back ahead of US inflation figures later this week.
Wall Street ended the previous session slightly lower, with the S&P 500 and the blue-chip Dow easing from their best weekly performances so far this year.
The spotlight remains on a crucial February reading of the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, due on Friday, when stock markets will be shut for the Good Friday holiday.
A high reading for the PCE index can potentially hamper market optimism around early rate cuts.
Traders see an at least 70pc chance the Fed will begin its easing cycle in June, according to the CME FedWatch tool, up from a nearly 59pc chance seen early last week.
Ahead of the opening bell, the Dow Jones Industrial Average was up 0.2pc, the S&P 500 had risen 0.4pc and the Nasdaq 100 was 0.5pc higher.
12:05 PM GMT
Oil prices edge higher amid supply worries
Oil prices has edged higher amid the ongoing tensions in the Middle East and Russia.
Global benchmark Brent traded up 0.2pc towards $87 a barrel after rising 1.6pc on Monday, while West Texas Intermediate gained 0.3pc to more than $82.
Crude has risen almost 13pc so far this quarter amid attacks by Ukraine on Russian oil refineries and as the Opec+ cartel has pledged to reduce production.
However, oil has been held back from further gains by India, which has halted purchases from Opec producer Venezuela ahead of the expiry of a sanctions waiver in the middle of next month.
Yeap Jun Rong, a market strategist at IG Asia, said: “The risks of supply disruptions persist.”
11:52 AM GMT
Wood Group confirms job cuts as it aims to save £47.4m
Wood Group has revealed plans to shave about $60m (£47.4m) off its yearly costs as part of an efficiency drive to boost profitability.
The Aberdeen-headquartered oil and gas engineering business said the “simplification programme” has allowed it to lift its profit outlook for the year.
The plans will involve reducing the number of roles in its central functions, which it said will put greater accountability on individual business units.
About 200 roles could be cut, it was reported last week, representing a small proportion of the group’s roughly 35,000-strong global workforce.
Wood Group did not specify how many roles are likely to be affected.
The programme is also set to simplify the group’s ways of working, and save on IT and property costs.
Its shares were down 3.7pc.
11:32 AM GMT
888 plots name change as it spends heavily on William Hill
Gambling company 888 plans to change its name to evoke plc to reflect its hopes to “make life more interesting by delighting players”, as it also upped the price of a cost-saving programme.
The business has increased the amount it will be spending on integrating with William Hill, which it bought in 2022 for nearly £2bn. The cost is expected to rise to £115m.
The business said its revenue jumped 38pc to £1.7bn in 2023, but that was mainly due to the addition of William Hill to its balance sheet. On a pro-forma basis, revenue dipped 8pc.
The business said it faced costs of £49.3m from the integration and transformation of William Hill. That will bring cost-savings in the long run, it hopes.
It will be asking for approval from shareholders at its annual general meeting to change its name to evoke.
The proposed change of the group’s name to evoke plc was subject to shareholder approval at the 2024 AGM.
Bosses said it would “better reflect the strength of the group’s multi-brand operating model and its vision and mission to make life more interesting by delighting players with world-class betting and gaming experiences”.
It comes after Per Widerstrom, a 17-year veteran of online gaming, took over the reins as chief executive in October last year.
11:22 AM GMT
UK economy ‘turning a corner’, says S&P Global
Britain’s economy is “turning a corner” as high inflation is expected to subside this year, paving the way for interest rate cuts this summer, according to ratings agency S&P Global.
Consumers’ purchasing power is gradually improving amid a resilient jobs market, S&P said, paving the way for a recovery of consumption.
However, growth will “improve more markedly” in 2025 as household spending is boosted further by declining inflation.
S&P said that the economy would expand by 0.3pc this year before rising by 1.4pc next year and then by 1.7pc in 2026 and 2027.
By contrast, the Bank of England forecast in February that Britain’s GDP would rise by a quarter of a percent this year, three quarters of a percent next year and by 1pc in 2026.
In its latest economic outlook, S&P said: “Monetary policy will likely start easing in August as inflation cools, with rate cuts this year and next spurring investment and potentially adding about 2 percentage points to economic activity, albeit most of the impact will come in 2026 and 2027.”
10:52 AM GMT
G&T goes stateside as US becomes largest market for Fever-Tree
Tonic maker Fever-Tree said the US has become its largest market amid a “step change” for ginger beer and sodas.
The US has grown to become its largest revenue-generating region, with strong growth of 22pc to £117m last year. UK revenues were down 1pc to £114.8m.
Adjusted underlying profits were down 23pc to £30.5m but shares rose by 3.6pc as it said it remains on target for 10pc growth in the brand this year.
Co-founder and chief executive Tim Warrillow said:
2023 was a year when the Fever-Tree brand once again grew in breadth and depth, with market share gains across the globe. Perhaps the most significant milestone was establishing the US as our largest region, and with it, extending our market leadership position in both the US tonic water and ginger beer categories.
The G&T of course remains an integral growth driver for the group but 2023 was a year where we saw a step change in our non-tonic portfolio.
Not only have our gingers and sodas continued to see strong growth but the last 12 months have seen the launch of our range of cocktail mixers alongside the roll out of our adult soft drink range in the UK.
Taken alongside softening inflationary pressures, the operational efficiencies we are delivering means I am confident that we are entering 2024 in a very strong position from an operational perspective and have an excellent platform for strong profitable growth going forward.
10:32 AM GMT
Cocoa prices top $10,000 for first time
The price of cocoa has surpassed $10,000 a ton for the first time as the record rally in the price of the crop rumbled on ahead of Easter.
Hershey, Mondelez and other confectionery-makers are promoting more non-chocolate Easter treats like cookies ‘n’ cream bunnies as soaring cocoa prices threaten their profits.
Cocoa prices have tripled over the past 12 months thanks to bean disease in West Africa, which continues to worsen, meaning companies are not expected to get relief anytime soon. Sugar prices are also up some 7pc.
10:24 AM GMT
Bellway hails easing mortgage rates as house building plummets
Bellway insisted that easing mortgage rates would help it deliver “long-term sustainable growth” despite plummeting levels of house building.
The developer revealed revenues slumped nearly 30pc to £1.3bn in the first half of its financial year as it sold 1,603 fewer homes, taking the total to 4,092.
Pre-tax profits slumped 60pc to £134.2m compared to the same period the previous year as the average selling price fell from £316,929 to £309,278.
However, bosses said the easing of mortgage rates had “helped to ease affordability constraints” and reported an improvement in reservation rates in the early weeks of the spring selling season.
Chief executive Jason Honeyman said:
Bellway has delivered another resilient performance in a period of challenging trading conditions.
Although the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates throughout the first half has helped to ease affordability constraints and we have been encouraged by the improvement in reservations since the start of the new calendar year.
The group remains on track to deliver volume output of around 7,500 homes (31 July 2023 - 10,945 homes) in the full financial year and, if market conditions remain stable, we are well-placed to build the order book through the second half which will serve as a platform for a return to growth in financial year 2025.
Overall, the long-term fundamentals of the UK housebuilding industry remain attractive, given the shortage of energy efficient and affordable homes across the country.
10:06 AM GMT
Pound gains as Bank official hints at higher interest rates
The pound has moved higher after a Bank of England policymaker suggested money markets are too optimistic about potential interest rate cuts.
Sterling has gained 0.1pc to $1.26, moving clear of the one-month low reached on Friday.
It has risen as Catherine Mann, who sits on the Monetary Policy Committee which decides interest rates, said that traders are “pricing in too many cuts”.
09:33 AM GMT
Mann dismisses suggestions Bank of England could cut interest rates first
Catherine Mann was dismissive of bets that the Bank of England is more likely to cut interest rates in May than the US or the eurozone.
Money markets indicate that there is a 20pc chance that policymakers in Britain could announce a first interest rate cut since the pandemic in May.
Meanwhile, the chances of such a move by the US Federal Reserve and the European Central Bank (ECB) are put at around 10pc.
Dr Mann told Bloomberg:
When we look at the data, comparing the deceleration in inflation and underlying wages for the US, the UK and the euro area [...] one of the things that comes out of that comparison is that wage dynamics in the UK are stronger and more persistent than the wage dynamics in either the United States or the euro area.
Underlying services dynamics are also stickier, more persistent than either the US or the euro area.
So on that basis, it’s hard to argue that the Bank of England would be ahead of the other two regions, particularly the United States.
09:18 AM GMT
Traders betting on too many interest rate cuts, says Bank policymaker
Traders are pricing in too many interest rate cuts by the Bank of England, according to one of its rate setters.
Dr Catherine Mann raised doubts about the outlook from money markets, which are pricing in three quarter of a point reductions in borrowing costs before the end of the year from their 16-year highs of 5.25pc to 4.5pc.
She said that mortgage lenders are already easing borrowing costs as a result, meaning policymakers at the Bank of England do not need to cut rates as much as currently expected.
Dr Mann voted for a hold in interest rates at the last meeting of the Monetary Policy Committee, switching her stance from voting for rate increases.
She had long pushed for further rises, along with her colleague Jonathan Haskel, and traders took their change in tone as a sign that interest rate cuts could come soon.
She told Bloomberg TV: “I think they are pricing in too many cuts. In some sense I don’t have to cut because the market already is.”
09:03 AM GMT
Ousted WeWork founder launches bid to buy back bankrupt company
WeWork founder Adam Neumann has launched an attempt to regain control of the bankrupt office company with more than $500m (£395m), five years after he was ousted following a botched attempt to take it public.
Our technology editor James Titcomb has the details:
A coalition of bidders led by Mr Neumann’s property company Flow have tabled a bid to buy WeWork, which filed for bankruptcy protection in November saying it could not afford to keep paying for hundreds of office leases.
If he is successful it would be a spectacular return for the 44-year-old, who once described his business as “not just a company [but] a movement”, and attracted a devoted cult of followers before being forced out amid allegations of wild behaviour and alcohol-fuelled partying.
WeWork sought to reshape the world of corporate offices with stylish, modern spaces where businesses could work side by side.
It would rent entire floors or buildings and sublease individual spaces to companies on monthly contracts, in buildings that offered free alcohol and networking events.
Read how it was hit by the pandemic and subsequent rise of home working.
08:49 AM GMT
Co-operative Bank to cut 400 jobs
The Co-operative Bank has said it plans to cut around one in 10 of its workforce, shedding approximately 400 jobs, in a bid to cut costs.
The bank said that it was embarking on a consultation and restructure which will lead to a net reduction of 12pc of its roles across the organisation.
It said:
Today, we have announced a series of changes across the bank which are essential for the delivery of the next phase of the strategic plan.
These include the commencement of a consultation on a proposed operating model restructure which is expected to result in a net reduction of approximately 400 roles (12pc) across the bank.
The decision has not been made lightly, and the bank will continue to work closely with our trade union and to support impacted colleagues.
It comes after a landmark ruling last year that means customers are in line for compensation payouts worth thousands after they were “unfairly” overcharged mortgage interest for more than a decade.
A pivotal case upheld by the Financial Ombudsman Service ruled that between 2009 and 2012 the bank broke customers’ contracts and applied unfair interest rate increases on four separate occasions.
08:37 AM GMT
FTSE 100 falls amid doubts over US interest rate cuts
The FTSE 100 inched lower as mixed messages from US monetary policymakers raised concerns about the Federal Reserve’s interest rate outlook.
The blue-chip FTSE 100 and the domestically-focused FTSE 250 were both down 0.1pc.
Industrial metal miners fell as much as 1.3pc, tracking lower commodity prices.
Fed officials said on Monday they still had faith that US inflation will ease, but also acknowledged an increased sense of caution around the debate, fuelling concerns over the interest rate outlook.
Shares of Ocado Group rose as much as 6.1pc to lead the FTSE 100 after its joint venture with Marks & Spencer reported a 10.6pc increase in revenue in its latest quarter.
Online betting giant Flutter was close behind, rising by 3.2pc as it said it expects its core profit to jump by around 30pc this year.
Bootmaker Dr Martens’ shares dropped 5.7pc to near the bottom of the mid-cap index after Goldman Sachs downgraded the stock to “sell” from “neutral”.
08:24 AM GMT
Papa Johns to close 43 restaurants
Pizza chain Papa Johns is to shut 43 restaurants across the UK.
The takeaway business confirmed plans to axe the “underperforming” locations after launching a review at the start of the year.
It will close the restaurants by mid-May following a consultation process, Papa Johns International said.
The company has not confirmed how many staff will be impacted by closures.
The group had previously said it planned “strategic closures” in order to free up money for investment and improving profitability at its remaining UK sites.
It has now identified 43 restaurants as “underperforming locations that are no longer financially viable”.
08:21 AM GMT
Asos sells off stock built up during pandemic
Asos shares jumped in early trading as the fast-fashion retailer sold off old stock and revealed it had improved its cash flow despite a sharp decline in sales.
The company’s sales dropped by 18pc in the 26 weeks to March 3 but it said it was ahead on its plan to reduce its stocks by £600m by the end of the year.
Shares rose as much as 6pc after it said free cash flow improved by about £240m compared to the first half of its 2023 financial year amid improvements in underlying profitability and the clearance of its warehouses.
It maintained its guidance for its performance over the whole financial year, indicating sales would decline between 5pc and 15pc but that stocks would return to pre-Covid levels and it would make underlying profits.
Chief executive José Antonio Ramos Calamonte said:
Asos is becoming a faster and more agile business, aided by the incredible work of our teams to speed up all of our processes to deliver the fashion, quality and prices that our customers want, when they want it.
I’m excited by the performance of our new collections, while we have also made great progress in monetising inventory that built up over the pandemic and in improving the core profitability of our operations.
08:07 AM GMT
Grocery inflation falls to lowest level in two years
Grocery inflation has fallen to its lowest level in two years, as cost of living pressures on families start to temper.
Our senior economics reporter Eir Nolsøe has the details:
The cost of groceries rose 4.5pc in the year to mid-March, according to data analytics firm Kantar.
This is the slowest increase in supermarket prices since February 2022, when Russia’s invasion of Ukraine pushed up the costs of energy and many food ingredients.
The slowdown is the latest sign of overall prices in the economy turning a corner and cooling significantly, boosting hopes of interest rate cuts within months.
Fraser McKevitt from Kantar said: “Grocery inflation has come down significantly since hitting an eye-watering peak of 17pc in March 2023. However, despite this continued slowdown many British households are still feeling the squeeze.”
Around one in four households still say they are finding it hard to cope with financial pressures, Mr McKevitt noted.
08:06 AM GMT
UK markets open lower
Stock markets have fallen as trading got underway in London as traders await the release of a key US inflation reading.
The FTSE 100 dropped 0.2pc to 7,898.28 while the domestically-focused FTSE 250 was down 0.1pc to 19,595.78.
08:04 AM GMT
Revolution Bars could be put up for sale
Revolution Bars has said that it is talking to investors about raising new cash and could put itself up for sale amid reports that it might be looking at cutting hundreds of jobs.
The chain, which also owns Revolucion de Cuba, said that it is looking at “all the strategic options available” having faced “a period of external challenges”.
In January, the business slashed its annual outlook, saying that its younger customers were being disproportionately hit by the soaring cost of living.
Revolution is considering a plan which could end with the closure of around 20 bars, approximately a quarter of its total, according to Sky News, which could result in “hundreds” of redundancies.
Revolution is reportedly speaking to investors in a plan to raise around £10m. On Monday, the company was valued at £6.6m. Its statement said:
Following a period of external challenges which have impacted the company’s business and trading performance, the board is actively exploring all the strategic options available to it to improve the future prospects of the group,” Revolution said.
These include a restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders.
07:56 AM GMT
Hovis to keep bread prices ‘relatively stable’
Hovis has said it is holding bread prices largely firm this year after hikes of up to 30pc in the aftermath of Russia’s war in Ukraine as wheat and energy costs were sent soaring.
The boss of the bread and bakery brand - which was founded in Stoke-on-Trent, Staffordshire, 138 years ago - said that Hovis prices were now “relatively stable” thanks to easing costs for the group.
Chief executive Jon Jenkins revealed the group hiked prices by 15pc to 30pc in its financial year to September 30, 2023, after seeing a five or six-fold surge in some commodity prices, while energy and distribution costs also rocketed, following the war in Ukraine.
Wheat prices were impacted in particular after Russia’s invasion in February 2022, with Ukraine having been a major global supplier.
Mr Jenkins said Hovis was not expecting a “repeat of what we saw in 2022”, although he said wage costs remain a pressure.
The comments come as the latest set of available accounts for Hovis showed the group narrowed pre-tax losses in the 53 weeks to September 30 last year to £3.6m, against losses of £28.6m in the previous 38 weeks to September 24, 2022.
It returned to an operating profit, at £3.2m against losses of £24.5m in the 38-week prior period.
07:52 AM GMT
Ocado sales grow amid tensions with M&S
Ocado Retail, the troubled grocery delivery partnership with Marks & Spencer, has revealed increasing sales despite the tense relations between the two partners.
The online grocer - which is run as a joint venture between Ocado and M&S - posted retail sales growth of 10.6pc of £645.3m in the 13 weeks to March 2 amid a “strong” start to the year.
Stripping out price growth, sales by volume lifted by 8.1pc in the group’s first quarter. Ocado said its active customer base lifted 6.4pc to 1.02 million.
It comes after Ocado threatened to sue M&S over a multi-million pound payment for their online grocery partnership amid a growing row over performance.
The pair’s £750m joint venture Ocado Retail has failed to meet targets laid out when M&S agreed to set it up in 2019, Ocado said.
This means Ocado will not automatically receive a final instalment of £191m from M&S. The payment is meant to be binary, meaning either Ocado receives the full payment or nothing.
In its latest trading update, the group said price inflation eased back to 2.2pc in the three months, which it said was “significantly” lower than the wider market.
“This has translated to improvements in customer value perception,” according to Ocado.
07:43 AM GMT
American gamblers drive expansion at Paddy Power owner
PaddyPower owner Flutter revealed a sharp increase in revenues and its number of players as it expanded heavily in the US.
The gambling giant’s average monthly players surged 20pc to 12.3m, helping revenues leap by nearly a quarter to $11.8bn (£9.3bn).
Its FanDuel brand has become the leader for so-called iGaming in the US, where revenues increased 40.7pc.
The company, which made an additional listing of shares on the New York Stock Exchange in January, said earnings in America could more than triple this year as it revealed net losses deepened to $1.2bn.
The US became Flutter’s largest market in 2022 as more states legalised sports betting.
Chief executive Peter Jackson said:
The year has started well with very good momentum continuing into the first quarter.
Record Super Bowl engagement contributed to US revenue growth of 55.6pc for the period from January 1, 2024 to March 17, 2024.
07:31 AM GMT
Smiths boss steps down to lead US company
Engineering company Smiths Group has announced the departure of its boss, who is taking up a new role as chief executive of a US public company.
Paul Keel will step down with immediate effect and be replaced by Roland Carter, who has been at the company for more than 30 years and has led its Smiths Detection division since 2018.
It comes as the company announced a new £100m share buyback programme as profits edged up to £111m, with revenues growing 3.9pc organically to £1.5bn.
07:11 AM GMT
Good morning
Thanks for joining me. The Bank of England could begin cutting interest rates before the US and the eurozone in a sharp reversal of previous expectations, according to traders.
Money markets indicate that there is a 20pc chance that policymakers in Britain could announce a first interest rate cut since the pandemic in May.
Meanwhile, the chances of such a move by the US Federal Reserve and the European Central Bank (ECB) are put at around 10pc.
It comes after Govenor Andrew Bailey said last week that cuts to interest rates, which stand at 16-year highs of 5.25pc, are “on the way”.
Citigroup strategist Jamie Searle said Mr Bailey’s comments “perhaps makes May seem like a reasonable time to cut”.
At the start of the year, Britain had been expected to be slower to cut rates than the US and Europe amid persistent inflation.
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What happened overnight
Asian shares were mixed in muted trading as buying in some markets was soon erased by profit-taking.
Japan’s benchmark Nikkei 225, where computer chip-related stocks had interested investors early, ended flat at 40,398.03, while the broader Topix index added 0.1pc, or 3.16 points, to 2,780.80.
Australia’s S&P/ASX 200 fell 0.4pc to 7,780.20. South Korea’s Kospi added 0.7pc to 2,756.52. Hong Kong’s Hang Seng jumped 1.4pc to 16,703.76, while the Shanghai Composite added 0.2pc to 3,031.90.
Analysts have been watching various global uncertainties, including in the Middle East and Russia, that affect energy prices as well as investor sentiments.
In energy trading, benchmark US crude fell 4 cents to $81.91 a barrel. Brent crude, the international standard, shed 6 cents to $86.69 a barrel.
An attack late last week at a concert hall in Moscow was claimed by the Islamic State group. Gaza was in focus with the UN Security Council issuing its first demand for a cease-fire. The UK backed the resolution while the US abstained, angering Israel.
