Yahoo Finance Dover’s Port Health Authority threatens legal action over Brexit lorry checks
Health authorities in Dover could bring legal action against the Government if it does not reconsider a plan to move checks on potentially dangerous foods away from the port creating what they say is a biosecurity risk.
Dover’s Port Health Authority is worried about the numbers of cars, vans and lorries carrying large quantities of meat into Britain which could be contaminated, risking illegal foods entering the market and the spread of diseases such as African swine fever and foot and mouth.
Since Brexit, the Government has gradually been bringing in a new border system for checks.
From April, it wants to move spot checks on products of animal origin away from Dover, which handles a third of the UK’s trade in goods, to a site 20 miles inland at Sevington.
But the Port Health Authority and a parliamentary committee say there is no mechanism to ensure that vehicles that are sent for checks will go to the site and there is a risk that vehicles could be unloaded before they arrive there.
The health authority stepped up its opposition to the plan on Friday saying it had engaged legal counsel with a view to possibly taking action.
Lucy Manzano, head of the Dover Port Health Authority, told Reuters: “We can’t see how these changes are in the best interest of GB biosecurity and can be delivered in a way that it doesn’t put us all, as consumers, at risk.”
A Government spokesman said: “We have strict border controls in place to protect our high biosecurity standards – and are confident that existing and new infrastructure will have the capacity and capability to maintain these standards.
“We recognise the strategic importance of the port of Dover and are continuing to work with the port authority on future support options.”
The Port Health Authority’s concerns about biosecurity are shared by the Environment, Food and Rural Affairs Select Committee, whose chair has written to minister Steve Barclay about the issue.
Read the latest updates below.
06:00 PM GMT
Signing off
Thanks for joining us today during a week where the S&P 500 stock market index, which follows corporate America, breached 5,000 for the first time.
We’ll be back in Monday morning with all the latest news from the markets.
05:46 PM GMT
Woodford investors forced to accept large losses in ‘appalling’ compensation scheme
Thousands of investors in Neil Woodford’s fund have been forced to accept an “appalling” compensation scheme after the High Court backed a £230m repayment plan, campaigners say. Michael Bow reports:
Administrators to the fund, Link Fund Solutions (LFS), secured legal backing for a scheme on Friday that will compensate investors who lost out in 2019.
However, campaigners argue that the deal is not good enough because they believe investors deserve more compensation.
Mr Woodford’s fund collapsed after he was hit by a wave of redemptions, forcing the company to block people from taking their money out.
LFS was blamed for mismanaging the liquidity of the funds.
It agreed with UK regulators to pay compensation to around 250,000 of Woodford’s investors but LFS denies any wrongdoing.
More than 90pc of Woodford’s investors voted for the deal when it was proposed last year.
Continue to read the full story...
05:21 PM GMT
Can Piers Morgan follow Tucker Carlson into online superstardom?
To say relations between Piers Morgan and the Royal Family are at a low ebb would be an understatement. James Warrington reports:
After the controversial broadcaster named the so-called “royal racists” on his TalkTV show, Buckingham Palace threatened legal action. Then, Morgan sparked outrage by suggesting he would “dismember and incinerate” Prince Harry over his split with the rest of the Firm.
In a return salvo, the Duke of Sussex on Friday claimed that the former Mirror editor “knew perfectly well what was going on” about phone hacking at the newspaper.
But if the Royals are gearing up for a fresh fight, it is Morgan who has chosen the arena. The broadcaster this week announced he was quitting his show on TalkTV and will forge his own path on YouTube.
Continue to read the full story...
05:09 PM GMT
AI startup backed by Bill Gates makes discovery in Africa
An artificial intelligence startup backed by Bill Gates has discovered what might become the world’s third-largest copper mine.
KoBold Metals of San Francisco uses artificial intelligence to explore for resources needed to expand greener energy, including lithium, cobalt, copper and nickel. Now, according to a Bloomberg report, it has discovered a supply of copper in Zambia that may propel a copper mine there to become the world’s third largest.
Zambian president Hakainde Hichilema said:
It won’t be just the largest mine in Zambia, but it will be one of the largest mines in the world. Maybe one of the top three largest mines in the world. We believe it will produce well over - when it’s fully operational - 500,000 to 600,000 metric tons.
KoBold has reportedly been drilling in Zambia for just over a year. The company says that it spends $100m (£79m( a year in exploration prospects
Bloomberg reported that its investors include Breakthrough Energy Ventures, which is backed by Mr Gates and Amazon founder Jeff Bezos.
04:55 PM GMT
Footsie closes down
The FTSE 100 closed down 0.30pc - and down 0.56pc over the week. The biggest risers were cardboard manufacturer DS Smith, up 2.46pc, followed by gambling giant Entain, up 2.42pc. The biggest faller was Land Securities, down 3.35pc, followed by mining company Fresnillo, down 3.35pc.
Meanwhile, the FTSE 250 dropped 0.21pc. The biggest risers today were Watches of Switzerland, Britain’s biggest seller of Rolexes, up 5.75pc, followed by magazine publisher Future, up 2.99pc. The biggest faller was merchant bank Close Brothers, down 8.59pc, followed by Hochschild Mining, down 4.00pc.
04:34 PM GMT
Hiscox warns of museums hit with losses from selfie-takers
Selfie-takers are damaging valuable art at museums around the world by walking backwards into paintings and objects, according to specialist insurer Hiscox. Our reporter Adam Mawardi has the details:
Robert Read, head of art and private clients at Hiscox, said that venues are being forced to cover mounting costs from selfie-related accidents when objects are damaged or knocked over.
He said that the “pandemic of selfies” was forcing museums and galleries to install protective barriers, and hire enforcers responsible for stopping people about to have an accident.
Mr Read said: “Pre-mobile phones people had a sense of what was acceptable and what wasn’t. Now when people have a phone in their hand, it’s as though they have no inhibitions.
“It sort of neutralises what their normal brain function would be in terms of stepping away from something or not putting themselves in danger.
“But somehow that feeling of getting a picture means whether it’s damaging a painting or damaging yourself, those barriers no longer seem to exist.”
Half of the losses incurred by Hiscox’s art underwriting business are caused by accidental damage, which includes from selfie-takers.
Continue to read the full story...
04:17 PM GMT
Arm shares plateau after 50pc rise
Britain’s most successful technology business, Arm Holdings, is down 2.4pc in trading this afternoon after a spectacular week that saw the company rise more than 50pc.
The chip designer, which now has a market capitalisation of $113.66bn (£89.98bn), started life after its British designers read about a group of postgraduate students at the University of California, Berkeley, who had produced a simple but fast computer processor with small resources.
This inspired the creators of the first Arm chips to focus on designs that were inherently simpler, and consequently emitted less heat, than processors from makers such as Intel. Ultimately, it meant that the resulting products were ideal for mobile phones and, as we are now seeing, data centre servers.
ARM was floated on Nasdaq in New York last September.
03:59 PM GMT
Pepsico cost-cutting 'more like a plaster than a longer-term treatment', warns analyst
Pepsico shares are down nearly 3pc today after it predicted slowing growth for 2024 and missed expectations for its most recent quarter. Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, explains Pepsico’s problem:
Missing your own targets isn’t a good thing, and this surprise on the downside has seen the shares fall in pre-market trading. Unlike major rival Coca-Cola, the group doesn’t limit itself to just soft drinks. Pepsi sells snack favourites like Walkers crisps, Doritos and Cheetos to help customers work up a thirst. But these have also shown signs of struggle over the second half.
Ultimately, it’s the slowing rate of sales growth is what’s causing concern among investors. Pepsi has a diverse portfolio of strong brands, but constant price hikes have taken their toll and had a negative impact on both drink and food volumes.
Cost-cutting initiatives have continued at pace, helping to offset some of the impacts of slightly lower volumes and keep profits growing at double-digit rates.
But cost cuts are more like a plaster than a longer-term treatment. Heading into the new year, as cost inflation eases, price hikes should also slow. Investors will hope this breathes life back into demand and allows growth to come from a healthier and more sustainable mix between price and volume.
03:47 PM GMT
Port of Dover threatens legal action over Brexit lorry checks
Health authorities at the Port of Dover could bring legal action against the Government if it does not reconsider a plan to move checks on potentially dangerous foods away from the port creating what they say is a biosecurity risk.
Dover’s Port Health Authority is worried about the numbers of cars, vans and lorries carrying large quantities of meat into Britain which could be contaminated, risking illegal foods entering the market and the spread of diseases such as African swine fever and foot and mouth.
Since Brexit, the Government has gradually been bringing in a new border system for checks.
From April, it wants to move spot checks on products of animal origin away from Dover, which handles a third of the UK’s trade in goods, to a site 20 miles inland at Sevington.
But the Port Health Authority and a parliamentary committee say there is no mechanism to ensure that vehicles that are sent for checks will go to the site and there is a risk that vehicles could be unloaded before they arrive there.
The health authority stepped up its opposition to the plan on Friday saying it had engaged legal counsel with a view to possibly taking action.
Lucy Manzano, head of the Dover Port Health Authority, told Reuters: “We can’t see how these changes are in the best interest of GB biosecurity and can be delivered in a way that it doesn’t put us all, as consumers, at risk.”
A Government spokesman said: “We have strict border controls in place to protect our high biosecurity standards – and are confident that existing and new infrastructure will have the capacity and capability to maintain these standards.
“We recognise the strategic importance of the port of Dover and are continuing to work with the port authority on future support options.”
The Port Health Authority’s concerns about biosecurity are shared by the Environment, Food and Rural Affairs Select Committee, whose chair has written to minister Steve Barclay about the issue.
03:31 PM GMT
Handing over
I will bid you farewell at this point and hope you have a restful weekend. Alex Singleton will keep you updated into the evening.
I will leave you with this shot of the welding line at the Magyar Suzuki factory in Hungary, which is celebrating the manufacture of the plant’s four millionth vehicle.
03:19 PM GMT
John Lewis threatened with staff walkout over looming job cuts
John Lewis bosses have been warned they risk sparking a staff walkout as workers demand answers over planned mass job cuts.
Our retail editor Hannah Boland has the details:
The partnership, which owns John Lewis department stores and Waitrose supermarkets, has been told it must urgently meet with union bosses to discuss its plans to slash 11,000 roles.
In a letter to John Lewis chairman Dame Sharon White, GMB said it was poised to ballot the retailer’s workers over strike action if she failed to provide more detail on the upcoming cuts.
GMB national officer Nadine Houghton said: “As the union that represents John Lewis workers, we call on you to meet urgently with us to discuss these changes and to give your workforce the meaningful representation they clearly need.
“If workers do not get the answers they feel they deserve, they will not hesitate to request that GMB begins a ballot of workers.”
It comes as relations between the retailer and its staff become increasingly strained.
02:58 PM GMT
Twitter signs betting deal with Ladbrokes owner's venture in time for first Vegas Super Bowl
A joint venture between the owners of the MGM hotel in Las Vegas and Ladbrokes owner Entain has signed a deal to become the exclusive betting partner of X, the social media platform formerly known as Twitter.
BetMGM will become the social media platform’s exclusive live odds sports betting partner in an announcement released days before Las Vegas hosts its first ever Super Bowl.
The deal means X users in the United States will be able to explore BetMGM’s latest betting odds on the American football match, with each of the major professional and college sports expected to follow in the coming weeks.
02:32 PM GMT
S&P 500 opens above 5,000
The benchmark S&P 500 opened above the 5,000 mark after data pointed to minimal revisions in last year’s inflation figures, supporting expectations that the US Federal Reserve will cut interest rates this year.
The S&P 500 surpassed the 5,000 mark on an intra-day basis for the first time on Thursday, but closed just shy of the level.
It opened today up 0.1pc to 5,001.13 while the Dow Jones Industrial Average was flat at 38,719.35.
The tech-heavy Nasdaq Composite gained 0.3pc to 15,836.17.
02:30 PM GMT
Bank of England staff still not happy about pay despite jump in top earners
Bank of England staff are unhappy about their pay, according to a leaked survey – despite a 14pc jump in the number of staff on six-figure salaries last year.
Our deputy economics editor Tim Wallace has the latest:
Even though more than 500 people now earn over £100,000 a year at Threadneedle Street, workers still feel they are not earning a fair amount for the jobs they do.
The discontent comes after Andrew Bailey, the Bank’s Governor, urged the wider public not to ask for a big pay rise over fears it would stoke inflation.
When asked if “I am fairly compensated for the work that I do”, the survey – first leaked to Financial News – found an average satisfaction score of just 36pc.
Read how staff earnings at the Bank compare.
02:08 PM GMT
Hermes valuation overtakes L’Oreal as it defies luxury slump
The valuation of French luxury giant Hermes International briefly overtook that of L’Oreal for the first time today, making the Birkin bag maker the second largest company on the French blue-chip CAC 40 index.
Hermes’s strong revenue report powered the luxury company’s stock to record highs on the same day that the beauty firm’s shares slithered after a weaker-than-expected update.
With its market capitalisation reaching almost €230nn (£196.5bn), Hermes assumed the second position in the French benchmark, behind luxury rival LVMH, which owns brands like Louis Vuitton, which is still a long way ahead at more than €400bn.
L’Oreal’s market value fell as low as €225bn.
01:56 PM GMT
Exxon orders traders to move from Brussels to the City
ExxonMobil is to move dozens of traders from Brussels to London in a rare post-Brexit win for the City.
Our energy editor Jonathan Leake has the details:
The US energy titan has decided to reorganise its growing trading business, moving traders from both the Brussels office and its UK office in Leatherhead, Surrey, into a single location in the Square Mile.
Those who refuse have been warned they will have to leave the company.
An Exxon spokesman said: “As we continue to strengthen our trading community, London provides better proximity to trading activities and trading talent pools, and will support our evolution as a trading organisation.”
The move will be seen as a sign of increased confidence in the City, which faced several years of uncertainty and turmoil as finance companies came to terms with the impact of Brexit.
Read how the City of London has become central to ExxonMobil’s plans.
01:35 PM GMT
EU farmers protest 'cheap imports' from Ukraine
Farmers in Spain and Poland demonstrated as part of ongoing protests against European Union farming policies and to demand measures to combat production cost hikes, reduced profits and unfair competition from non-EU countries.
The actions follow similar ones in other EU members in recent weeks with farmers complaining that the 27-nation bloc’s environmental and other policies are a financial burden and make their products more expensive than non-EU imports.
The European Commission, the EU’s executive arm, has made some concessions to farmers over the last few weeks, including shelving plans to halve the use of pesticides and other dangerous substances. But the protests have spread.
In Poland, farmers angered especially by imports of cheap grain, milk and other produce from Ukraine, drove tractors across the country to slow down traffic and block major roads, some displaying signs that read “EU Policy is Ruining Polish Farmers.”
Adrian Wawrzyniak, spokesman for the Solidarity Union of Individual Farmers, said: “The protest is directed against the policy of the European Union, against the Green Deal and against the policy that allows for an uncontrolled inflow of farming produce from Ukraine.”
He said storage warehouses are filled with Ukraine grain causing prices to fall 40pc in 2023. There is lower demand for Polish sugar, milk and meat, making farmers hold off on investments.
01:21 PM GMT
Pepsi warns sales will go lose fizz this year
PepsiCo warned that higher prices have weakened consumer demand despite the practice helping it to slurp increased profits at the end of last year.
The food and drinks giant, which counts 7Up and Doritos among its numerous brands, said it expects organic revenue growth of at least 4pc this year, which is less than half the 9.5pc it managed in 2023.
Shares dropped 2pc before the opening bell even as the company announced a 7pc boost to its annual dividend, and said that it would buy back about $1bn (£790m) of its shares.
PepsiCo earned $1.3bn in the final three months of last year, compared to $518m in the same period in 2022.
However, revenue slipped to $27.9bn from $28bn in a rare miss of analyst predictions. Wall Street had projected revenue of $28.24bn.
01:01 PM GMT
Wall Street poised to continue rally after record day
US stock indexes edged higher in premarket trading a day after the benchmark S&P 500 breached the 5,000-mark for the first time.
The S&P 500 and the blue-chip Dow both hit all-time highs on Thursday, while the tech-heavy Nasdaq closed less than 2pc away from its peak as investors cheered strong earnings, particularly from companies poised to benefit from the boom in artificial intelligence.
Investors will now focus on the US Bureau of Labor Statistics’ revised inflation figures for 2023, calculated using new seasonal adjustment factors - statistical weights that aim to reflect how prices behaved over the year more accurately.
Deutsche Bank strategist Jim Reid said: “This is something the Fed are watching, and Governor Waller explicitly mentioned these revisions in his speech last month, so it’ll be an important one for the timing of any rate cuts.”
Strong economic data and hawkish comments from Federal Reserve policymakers in recent weeks have pushed back traders’ bets that the US central bank will start cutting rates in March.
In premarket trading, the Dow Jones Industrial Average was up 0.1pc, the S&P 500 was up 0.2pc and the Nasdaq 100 was up 0.3pc.
12:56 PM GMT
Starmer defends extended windfall tax plans
Sir Keir Starmer defended his decision to extend the windfall tax on oil and gas companies should Labour come into office at the next election.
The Labour leader said his party’s reduced green pledges - after U-turning on his £28bn commitment - would include keeping its higher proposed tax on energe company profits throughout its first term in office.
He told broadcasters:
What I have done is go to Aberdeen and talk to the oil and gas industry for a two-day intensive discussion about the transition that we want to make, which is going to have to be made. They know that, they’re investing a huge amount in renewables.
What they want is a Government that is going to work with them on that transition and that is why the British jobs bonus is so important, because I want to ensure that as we transition we get the new jobs of the future and don’t lose any jobs.
So yes I’ve been having those discussions with them, very productive discussions, because I want to ensure that those jobs in Scotland are preserved and we add further jobs too.
12:43 PM GMT
Iran’s supreme leader kicked off Facebook
Instagram and Facebook have removed the accounts of Iran’s supreme leader Ayatollah Ali Khamenei amid the growing conflict in the Middle East.
Our technology editor James Titcomb has the details:
Khamenei, who has frequently used social media to praise Hamas and question the existence of the Holocaust, was removed for violating Meta’s dangerous organisations and individuals policy, the company said.
He remains on Twitter, now known as X, where he posts frequently.
A Meta spokesman said: “We have removed these accounts for repeatedly violating our dangerous organisations and individuals policy.”
Read what Meta’s policy prohibits.
12:06 PM GMT
British Airways to resume flights to Israel
British Airways has announced that it will resume flights to Israel in April, having suspended them in October on security fears after the outbreak of the Israel-Hamas war.
The airline, which is owned by London-listed aviation conglomerate IAG, said it will “restart our flights on 1 April” to Tel Aviv.
The route will operate four times per week but with smaller aircraft than before the outbreak of hostilities, owing to expectations of weaker demand.
Many airlines stopped flying to Israel after the start of the war, but several have since announced their resumption - including Air France, Lufthansa and Ryanair.
11:52 AM GMT
Oil and gas industry wants Trump as president, donations suggest
The oil and gas industry wants Donald Trump to win the next US election, its level of donations suggest, as the energy and natural resources sector’s contributions to the former president’s campaign vastly outweigh those to Joe Biden by more than 11 to one.
Industry donors have given $7.4m to the expected Republican nominee’s re-election bid, compared to just $635,000 for the White House incumbent, according to an analysis from OpenSecrets.
It comes despite a surge in US production and exports of oil and gas under Mr Biden’s watch, with the nation producing a record 13.3m barrels of crude a day in November — up from some 11m barrels per day in 2020 before he took office.
Exports of oil and gas have also climbed, with the country shipping nearly twice as much natural gas overseas last year compared with 2020, before the President took office.
However, Mr Biden has also been a major driver of renewable energy investment through his Inflation Reduction Act, a $369bn programme of subsidies.
While the energy sector is one of the largest industries funding the Trump campaign, his Republican rival Nikki Haley has sourced her major donors from finance, private equity and venture capital.
11:38 AM GMT
Mugging spree is threatening future of West End, say retailers
Muggings in London’s West End have risen more than three-fold in the past two years, as criminals increasingly target wealthy foreign tourists.
Our retail editor Hannah Boland has the latest:
New figures show that the number of thefts from a person rose to 2,806 in the shopping district last year, compared to 796 in 2021.
Theft, which includes shoplifting and pick-pocketing, currently makes up around 60pc of crime in the area around Piccadilly Circus and Leicester Square, according to figures compiled by the Heart of London Business Alliance.
The industry group represents 600 retailers, restaurants and property owners in the district.
Read how there has also been a significant spike in shoplifting.
11:23 AM GMT
Energy suppliers could raid failed rivals to limit bill increases
Energy suppliers could raid failed rivals to cover the costs incurred when they are forced to take on their customers, according to a new Ofgem proposal.
Ofgem has suggested a system which would allow money to be recovered when administrators sell off the assets of the failed supplier in a bid to shift the burden from failure away from households.
The failure of 29 energy suppliers between July 2021 and November 2022 are thought to have cost energy users around £2.7bn.
It added around £94 to the average household’s bill, according to the Public Accounts Committee (PAC).
Tim Jarvis, director general for markets at Ofgem, said: “Protecting customers is our top priority and we want to ensure that when companies go bust they are first in line to pay for their failure, not consumers.”
Since the spate of failures, which came in the early part of the energy crisis as gas prices were soaring, Ofgem has implemented a series of changes that it hopes will make such collapses less likely in future.
But the latest change is designed to kick in should a supplier fail after all.
The latest suggestion would allow the new supplier to try to recover at least part of the cost of transferring customers from the failed supplier onto their systems.
11:05 AM GMT
Commuters warned of disruption ahead of Overground strikes
Rail passengers are being warned of disruption to services because of strikes by workers on London Overground.
Members of the Rail, Maritime and Transport (RMT) union will walk out for 48 hours on February 19 and again on March 4 in a dispute over pay.
The workers are employed by Arriva Rail London and operate London Overground on behalf of Transport for London (TfL).
No service is expected before 8am or after 6pm on some routes on strike days, with those that do operate expected to be busier than normal.
Trish Ashton, TfL’s director of rail and sponsored services, said:
Strikes are never good news for our customers, and we urge the RMT and Arriva Rail London to work together to try to come to a resolution.
Customers planning to use London Overground services are urged to check before they travel, allow extra time for their journeys, and check the TfL website or the TfL Go app for the latest travel information.
The RMT said Arriva Rail London has offered a below-inflation pay offer.
10:54 AM GMT
Hermes to give all staff £3,400 bonus after record year
French luxury giant Hermes revealed record annual sales and profits as it plans to reward employees worldwide with a bonus.
The Birkin bag maker reported a profit of €4.3bn (£3.7bn), up 28pc from 2022, after sales surged 16pc at current exchange rates to €13.4bn (£11.5bn).
Executive chairman Axel Dumas said: “In 2023, Hermes has once again cultivated its singularity and achieved an outstanding performance in all metiers (business) and across all regions against a high base.”
The group said all employees worldwide would get a €4,000 (£3,417) bonus early this year as part of “its policy of sharing the fruits of growth with all those who contribute to it on a daily basis”.
In its outlook for 2024, the company said: “In the medium-term, despite the economic, geopolitical, and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates.”
The company said it would propose to increase dividends to €15 per share, up from €13 in 2022.
10:35 AM GMT
Pound on track for strongest run against euro in three years
The pound is closing in on a seventh straight week of gains against the euro as investors grow more convinced by the Bank of England’s determination to keep interest rates where they are for now.
Policymaker Jonathan Haskel, who voted to raise interest rates last week, said he is encouraged by signs that Britain’s inflation pressures might be on the wane but he would need more evidence of a cool-down before changing his stance.
He told Reuters: “I’m not going to apologise for banging on about persistence because I think we’re right to.”
Sterling was last down 0.1pc against the dollar at $1.26 and narrowly in positive territory against the euro at 85p.
The pound is on track for a modest gain this week, bringing its rally against the euro to seven consecutive weeks, the longest such stretch since mid-2021.
Kathleen Brooks, research director for broker XTB, said:
The sterling market definitely has its own thing going on right now and next week is going to be absolutely critical.
The Bank of England, with its cries for time last week, wants to see more evidence. That means that the inflation report and the labour market report as well, are two things that are going to generate a huge amount of volatility and I think that will play out a lot in sterling.
The pound has lost around 1pc in value against the dollar so far this year, but is still the best-performer among the G10 universe of major currencies.
10:04 AM GMT
Brent crude climbs as Netanyahu dismisses ceasefire
Oil is heading for a weekly advance after Prime Minister Benjamin Netanyahu’s dismissal of a potential ceasefire in the Israel-Hamas war.
Brent crude traded 0.4pc higher at more than $79 a barrel, after climbing more than 3pc on Thursday.
Its biggest daily jump in a month came as the Israeli leader’s comments triggered buying. US-produced West Texas Intermediate was up 0.4pc to more than $74.
The move of almost 6pc this week has undone most of last week’s slump, which was partially driven by optimism the two sides were moving closer to a pause in hostilities. Crude is about 6pc higher so far this year.
Netanyahu said he sees “no other solution than total victory,” and threats by Iraq to pull support for the American-led coalition added to tensions in the major oil-producing region.
Shipping companies also warned that the security situation in the Red Sea continues to deteriorate.
09:44 AM GMT
Traders bet interest rates will fall fewer than three times this year
Interest rates will fall fewer than three times this year, money markets predict, as Bank of England policymakers push back on the idea of imminent cuts to borrowing costs.
Traders have reduced their bets on the scale of declines in interest rates to fewer than 75 basis points - equivalent to three quarter of a point rate cuts.
It is less than half of the 150 basis points of cuts — equivalent to six quarter-point moves — that money markets had priced in at the end of 2023.
The sharp repricing follows the Bank of England’s forecasts that inflation will pick up after falling to 2pc in the second quarter, with two rate setters still voting for a quarter-point increase in the last meeting.
09:29 AM GMT
Ryanair targets OnTheBeach in 'pirate' row
Ryanair has accused online travel agent OnTheBeach of being the industry’s “number one pirate” by overcharging customers for flights.
The Irish low-cost carrier said the agent was forcing customers to pay an extra 117pc by imposing a flight change fee that costs just £45 on the airline’s own website.
It also alleged Lastminute.com, eDreams, Opodo and Booking.com were misselling flights.
It comes after Ryanair cut its profit forecasts after being kicked off a string of travel agent websites in an ongoing row about charges passed on to customers.
Ryanair marketing director Dara Brady said:
These are just the latest examples of hundreds where online travel agent pirates are unlawfully scraping Ryanair.com to overcharge, dupe and scam unsuspecting consumers for Ryanair products and services.
It is unacceptable that the UK and Irish governments and EU consumer agencies continue to ignore this rampant digital piracy and anti-consumer mis-selling.
OnTheBeach has been contacted for comment. Read how Ryanair is taking no prisoners in its battle with online ticket “pirates”.
09:12 AM GMT
Reeves refuses to apologise for £28bn green pledge U-turn
Shadow chancellor Rachel Reeves sought to defend Labour’s U-turn on its pledge to spend £28bn a year on green projects.
The Labour frontbencher blamed the Tories and the economic impact of Liz Truss’s mini-budget, as she told BBC Breakfast she would not “make any apologies” for fiscal responsibility. She said:
I’ll make no apologies for ensuring that our plan is fully costed, fully funded and deliverable within the inheritance we’re going to get.
It is going to be a bleak inheritance after the damage the Conservatives have done to our economy.
In the almost three years that I’ve been shadow chancellor, I think people have heard loud and clear from me that fiscal responsibility, economic responsibility, are the most important things for me because it is absolutely essential that the public finances are managed well.
And when economic circumstances change, your plans have to change as well.
09:02 AM GMT
Bank of England policymaker hints he is preparing for rate cut
One of the Bank of England’s most hawkish policymakers has hinted he is preparing for a rate cut as inflation cools.
Our economics reporter Melissa Lawford has the details:
Jonathan Haskel said signs of falling inflation are “encouraging” and that if he sees more evidence that price growth will not be persistent he will stop voting for another interest rate rise.
Mr Haskel was one of only two Monetary Policy Committee (MPC) members who voted for another increase in the Bank Rate at the last decision meeting, which would have meant raising interest rates from a 15-year high of 5.25pc to 5.5pc.
Six of the nine MPC members voted to hold rates at 5.25pc while one, Swati Dhingra, said rates should be cut.
In an interview with Reuters on Thursday, Mr Haskel said: “The signs that we’ve seen thus far are encouraging. I don’t think we’ve seen quite enough signs yet. But if we accumulate more evidence on persistence, then by the very logic I’ve just set out, I’d be happy to change my vote.”
The Bank of England made 14 consecutive interest rate rises between December 2021 and August 2023 in its battle to bring down runaway inflation.
08:51 AM GMT
FTSE 100 on track for weekly decline
UK shares edged lower in early trading and were set for a second straight weekly decline.
The blue-chip FTSE 100 and midcap FTSE 250 were both down 0.1pc.
Legal & General dropped 2.7pc to the bottom of the FTSE 100, after Citigroup cut its price target on the insurer’s stock. The broader life insurance index shed as much as 1.7pc .
Chemicals companies dropped as much as 2pc after Victrex tumbled as much as 14.3pc after reporting lower first-quarter revenue.
Tesco said it would sell most of its banking operations to lender Barclays for up to £700m. Shares in Britain’s biggest retailer advanced 1.3pc, while Barclays slipped 0.3pc.
Pharma and biotech shares led the gains among sectors, rising 1.1pc, after dropping more than 4.4pc on Thursday, dragged down by weak results from drugmaker AstraZeneca.
08:38 AM GMT
Barclays to stop financing new oil and gas fields
Barclays has said it will stop direct financing of new oil and gas fields and restrict lending more broadly to energy companies expanding fossil fuel production.
The bank is Britain’s biggest lender to the oil and gas industry but its curbs to financing for the industry are not expected to have a major impact on the sector.
The bank is not in the top 15 of major project finance banks globally, and most have yet to adopt similar restrictions.
From 2025, the bank will curb broader financing to non-diversified companies such as pure-play exploration companies if more than 10pc of their expenditure goes toward expanding production over the longer term.
Barclays group head of sustainability Laura Barlow said the new policy was part of its commitment to reduce emissions linked to the bank’s lending and bolster finance to greener alternatives.
She told Reuters: “It’s about strengthening our focus on the energy transition.”
Barlow said existing upstream energy clients that breach the 10pc threshold would go through an enhanced oversight process that also looked at the client’s investment in decarbonisation.
She added: “It wouldn’t be a red line but... would inform our risk appetite.”
08:31 AM GMT
The world's easiest-to-find Lego piece
Parents are often found scrambling around the floor to find the missing piece of for a Lego creation - but it is unlikely families would have room to bring home to the kids the latest creation from the Danish toy giant.
Weighing six tonnes and standing 30 feet tall, the world’s tallest Lego “minifigure” has been unveiled at Legoland Windsor.
Roxie has been unveiled ahead of the launch of the Minifigure Speedway duelling coaster, which will open to the public in March.
08:18 AM GMT
Bellway shares rise amid 'green shoots' for housebuilding
Bellway shares have edged 0.2pc higher despite revealing a 30pc slump in housebuilding as analysts point to “green shoots” in the sector.
Oli Creasey, property research analyst at Quilter Cheviot, said:
The statement represents a challenging trading period, which is reflected in the data: sale volumes down 28pc and the average sale price per home 2.5pc.
However, while challenging, this was very much in line with the rest of the housebuilding industry, and expectations.
Management have reiterated guidance that full year volumes will be around 7,500 homes, and that the company expects to return to positive sales growth in the financial year ending July 2025.
Of some concern for investors will be that during this six month period, Bellway has spent two-thirds of its cash reserves, with the cash on balance sheet reducing from £232m to just £77m.
This appears to be a result of increased payments to land creditors (mostly representing contracts signed in the past two years), but the future land obligations have reduced significantly, and net gearing (which includes the impact of future land payments) remains low at c. 5pc. While we expect management will want to rebuild this cash buffer over future periods, the reduction isn’t as alarming as the headline reduction suggests.
Management have pointed to a number of green shoots across the business: build cost inflation is moderating, the mortgage market is improving for borrowers, and interest in Bellway’s homes is increasing. However, that interest is expected to mostly be reflected in the next financial year’s results, meaning FY 2024 (to July-24) is likely to be one to forget.
08:07 AM GMT
UK markets subdued after Wall Street records
Stock markets in London were relatively quiet at the open as investors sobered up from the record-breaking run on Wall Street.
The FTSE 100 was little changed at 7,598.24 while the midcap FTSE 250 gained less than 0.1pc to 19,117.31.
08:04 AM GMT
Tesco to receive £1bn under Barclays banking takeover
Tesco has said in its own statement that it expects to receive total of about £1bn in cash from the sale of its retail banking division to Barclays.
It will receive £600m in proceeds and another £100m after the passing of some regulatory hurdles.
This would be combined with a previously announced special dividend of £250m paid by Tesco Bank in August 2023.
It said the majority of this cash will be returned to shareholders in the form of an incremental share buyback.
07:55 AM GMT
Bellway house sales plunge by nearly a third
House builder Bellway revealed a slump in sales over the last six months but said it had been encouraged by the easing of mortgage costs.
The developer said revenues slumped 30pc to £1.3bn as it built 4,092 homes, down 28pc on the 5,695 built during the same period a year earlier.
The average selling price fell to £309,300, down from £316,929.
Chief executive said Jason Honeyman said:
Bellway has delivered another resilient performance in a period of challenging trading conditions.
While the economic backdrop remains uncertain, the gradual reduction in mortgage interest rates through the first half has eased affordability constraints and we are encouraged by the seasonal pick-up in customer leads and an improvement in reservations since the start of the new calendar year.
We have maintained balance sheet resilience and, supported by the strength of our land bank, Bellway remains well-placed to capitalise on future growth opportunities and will continue to play an important role in increasing housing supply in the years ahead.
07:49 AM GMT
German inflation tumbles as downturn grips country
German inflation fell as expected last month giving some relief to the nation after a nightmare week of economic data.
The consumer prices index fell to 2.9pc in January, down from 3.7pc over the course of 2023.
The inflation figures cap off a tumultuous week of economic data for Europe’s largest economy.
Germany’s construction sector suffered some of its worst declines on record in January, while its private sector services businesses suffered their worst performance in five months.
German industrial production fell for a seventh straight month in December, official data showed, marking its longest series of declines since the period after reunification in the early 1990s.
Figures also showed that in 2023, German house prices suffered their steepest decline in 60 years as higher interest rates hammered home buyers.
Meanwhile, Ford has agreed with union chiefs to cut about 2,700 jobs from a German plant as it switches electric vehicle production to Spain.
07:31 AM GMT
Barclays will give customers 'greater value' says Tesco boss
Tesco chief executive Ken Murphy said of the Barclays takeover of Tesco Bank:
Tesco Bank is a strong business that has helped millions of loyal customers to manage their money for more than 25 years.
As we look to the future, our aim is to be the best provider of financial services in the UK, with this strategic transaction and partnership with Barclays unlocking greater value for customers and for our business.
By working with one of the UK’s leading banks, we can bring customers new and innovative propositions, which will continue to benefit from Tesco Clubcard’s unique insight and digital capabilities.
I’m hugely grateful to Tesco Bank colleagues for their dedication and excellent service to our customers, and I’m confident that this new partnership approach will build on that success.
07:29 AM GMT
Barclays to pay £600m for Tesco Bank
Barclays will pay £600m to seal the deal with Tesco Bank but said it expects the takeover will not materially impact its returns this year.
It said a further update will be given in February as part of the previously announced investor update.
Barclays chief executive CS Venkatakrishnan said:
Barclays is a leading consumer bank in the UK.
This strategic relationship with the UK’s largest retailer will help create new distribution channels for our unsecured lending and deposit businesses.
We are able to bring our expertise in partnership cards developed over decades in the US to enhance further the highly successful Tesco Clubcard loyalty scheme.
Similar to our acquisition of Kensington Mortgages last year, this partnership with Tesco is a further demonstration of the investment we continue to make in our UK consumer business.
We are looking forward to working closely with the team at Tesco over the coming months to enable a smooth transition and, subject to completion of the transaction, we look forward to welcoming Tesco Bank colleagues and customers to Barclays.
07:24 AM GMT
Barclays to take on £6.7bn of customer deposits in Tesco Bank deal
Barclays UK expects to acquire about £4.2bn of gross credit card receivables and £4.1bn of gross unsecured personal loans if the deal to acquire Tesco Bank goes through as expected in July.
It would also take on approximately £6.7bn in customer deposits.
Barclays said the business being acquired has technology and operational infrastructure that made an adjusted operating profit of about £85m in the year to February 2023.
07:20 AM GMT
Barclays to take over Tesco Bank in £600m deal
Barclays has agreed to buy the retail banking business of Tesco Bank, including acquiring its 2,800 staff, the companies have announced.
The banking giant expects to pay roughly £600 million for Tesco Bank’s credit cards, unsecured personal loans, deposits and operating systems.
Tesco Bank employees will also transfer to Barclays over time. Tesco said the “partnership” with Barclays will occur initially for a 10-year period, helping it to reduce debts and focus on its core retail business.
Tesco chief executive Ken Murphy said the takeover would offer its banking customers “greater value”.
He said: “Tesco Bank is a strong business that has helped millions of loyal customers to manage their money for more than 25 years.
“As we look to the future, our aim is to be the best provider of financial services in the UK, with this strategic transaction and partnership with Barclays unlocking greater value for customers and for our business.”
CS Venkatakrishnan, Barclays group chief executive, said: “This partnership with Tesco is a further demonstration of the investment we continue to make in our UK consumer business.”
07:15 AM GMT
Good morning
Thanks for joining me. German inflation fell last month, official figures confirmed, delivering a boost to chancellor Olaf Scholz after a tumultious week of data on Europe’s largest economy.
The nation’s consumer prices index fell to 2.9pc in January, down from 3.7pc over 2023.
5 things to start your day
1) Britain’s biggest wind farm delayed by shortage of ships | Storms and chronic lack of vessels are hampering progress at Dogger Bank
2) Wall Street hits all-time high as S&P 500 reaches 5,000 | Strong earnings and excitement about artificial intelligence have boosted American share prices
3) Taxpayer bill for working-age benefits to hit £100bn this year | Rising cost of welfare payments comes amid surge in disability claims
4) Ambrose Evans-Pritchard: Germany is not the sick man of Europe: it is time to take a punt on Deutschland Inc | Country’s leaders are facing down their economic problems with Teutonic determination
5) Ben Marlow: The London stock market’s decline is starting to look terminal | New York’s economic gravity is pulling companies out of the City’s orbit
What happened overnight
America’s S&P 500 stock market index hit 5,000 for the first time on Thursday, after a string of strong earnings reports and excitement about artificial intelligence (AI) continued to boost American share prices. But while the index edged up to 5,000.40 in the final moments of trading, it finished at 4,997.91.
The Dow Jones Industrial Average also edged up 0.1pc to 38,726.33, while the tech-rich Nasdaq Composite index advanced 0.2pc to 15,793.72.
The yield on benchmark 10-year Treasury notes rose 5.6 basis points to 4.154%, from 4.098% late on Wednesday.
Asian shares were mostly higher Friday as Tokyo’s benchmark momentarily touched a 34-year high, while many regional markets were closed for the Lunar New Year holiday.
Tokyo’s benchmark Nikkei index closed slightly higher, supported by gains of SoftBank Group, while the broader Topix was down on profit-taking.
The Nikkei 225 index edged up 0.1pc, or 34,14 points, points, to 36,897.42, while the Topix index slipped 0.2pc, or 4.75 points, to 2,557.88.
Investors were encouraged by remarks by Bank of Japan Deputy Governor Shinichi Uchida, who hinted the central bank will maintain its easy monetary policy stance even after ending its current negative benchmark rate.
Australia’s S&P/ASX 200 added 0.2pc to 7,652.40. Thailand’s SET edged 0.1pc higher.
