Global stock markets fall and bonds jump as fears grow over Ukraine war

Investors dash to safe-haven currencies after Putin updates nuclear doctrine and Ukraine fires missiles into Russia

Global stock markets fell and bond prices have jumped after reports that Ukraine had fired a US-made long-range missile into Russia for the first time and Vladimir Putin approved changes to Moscow’s nuclear doctrine.

Investors dashed into safe-haven currencies such as the US dollar, the Japanese yen and the Swiss franc on Tuesday, after the RBC-Ukraine news outlet reported that Kyiv had carried out its first strike on Russian territory using western-supplied missiles.

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Higher employment costs and interest rates to push UK firms into financial trouble; Trump tariffs would ‘hit growth’ – business live

Rolling coverage of the latest economic and financial news

Begbies Traynor also reveals that their employment costs are expected to rise by £1.25m due to the increase in employers’ national insurance contributions.

The company is “reviewing options to mitigate the impact where possible”.

“Additional headwinds for UK business from increased employment costs and the prospect of higher for longer interest rates are likely to extend the period of elevated insolvency levels, increasing the need for advice and support from our insolvency and business recovery professionals.”

“We have made a very good start to the year with double digit growth in revenue and profits driven by positive momentum across the group. This gives us confidence that we will deliver market expectations for the year as a whole.

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AstraZeneca shares tumble after reports China unit is linked to insurance fraud

Pharmaceutical’s weight loss pill described as ‘underwhelming’, also piling pressure on share price

AstraZeneca shares tumbled on Tuesday wiping £14bn off the value of Britain’s biggest drug maker, after a report that dozens of senior executives at its China unit could be implicated in an insurance fraud case in the country’s pharmaceutical sector.

Also putting pressure on the share price, early data on AstraZeneca’s experimental weight loss pill published on Monday was described as “somewhat underwhelming” by analysts at Deutsche Bank, who reiterated their “sell” rating on the stock.

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Mario Draghi warns EU at risk without ‘new industrial strategy’ and €800bn a year investment boost – business live

‘For the first time since the cold war we must genuinely fear for our self-preservation,’ warns former ECB chief as he presents new report on European competitiveness

We also have worrying signs that the US jobs market is cooling.

The latest UK Report on Jobs from KPMG and REC shows that the UK labour market softened in August, with vacancies falling for both permanent and temporary staff.

“Recent Government warnings that the UK’s economy may weaken further before improving add to the overall sense of uncertainty, affecting recruitment plans. Firms holding back from hiring led to a sharp contraction in the number of people placed into permanent roles in August amid continued decline in demand, extending the downturn in the UK’s labour market.

“The news that while salaries rose last month it was at the weakest rate since March could help make the case for more rate cuts when the [Bank of England’s] Monetary Policy Committee meets to decide the future path of interest rates.

This reflects ongoing concerns in the job market, including falling job vacancies and more people claiming unemployment-related benefits, which reached its highest level since December 2021 according to the Office for National Statistics.

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Rolls-Royce is FTSE 100’s biggest faller as Cathay Pacific inspects A350 fleet

Shares in engineering firm slide as airline cancels flights after finding engine component failure on aircraft

Shares in Rolls-Royce, the leading British engineering company, were the biggest faller on the FTSE 100 on Monday after Cathay Pacific Airways identified an engine component failure on an aircraft and began inspecting its entire Airbus A350 fleet.

The Hong Kong-based airline, which has cancelled 24 return flights so far while it performs the “precautionary” checks, said a number of aircraft would be out of service for several days. Shares in Rolls-Royce closed down 6%.

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Global markets partly recover but analysts fear ‘we’re not out of woods’

Shares on Wall Street and in Asia and Europe start to recover after Monday’s rout

Shares on Wall Street rose and many Asian and European markets staged a recovery after this week’s global stock market rout, but analysts warned: “We might not be out of the woods.”

The FTSE 100 index in London rose 18 points, or 0.2%, on Tuesday to close at 8,026.69, after losing 166 points, or 2%, on Monday, its biggest one-day points drop in more than a year.

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Wood Group suitor pulls out of takeover, blaming market turmoil

Shares in FTSE 250 company slump 37% in early trading after Dubai-based Sidara cites geopolitical risk

The share price of the British oil services company John Wood Group has plunged by more than a third after a Dubai-based suitor pulled out of a purchase amid global market turmoil.

In a statement to the stock market on Monday the engineering company Sidara said it had pulled out of a bid for Wood “in light of rising geopolitical risks and financial market uncertainty”.

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Shares in New York and London tumble on fears of US recession

FTSE 100 on track for its lowest close since April and Japan’s Nikkei suffers biggest fall since crash of 1987

Shares on Wall Street and in London have fallen heavily amid a global stock market rout triggered by fears of a recession in the US.

The tech-focused Nasdaq index dropped by 6% as trading in New York opened on Monday, while the broader S&P 500 index fell by 4.2% in a sell-off triggered by weak US jobs data. The Dow Jones industrial average lost more than 1,100 points, a 2.8% decline.

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Fear of US recession rattles global markets as tech shares fall

Europe’s main indices all decline and Japanese equities suffer worst day since 2020 while gold hits fresh record

Stock markets in Europe, Asia and New York tumbled on Friday as fears of a US economic slump grew and technology shares were hit by underwhelming earnings.

Concerns that the US could be sliding towards a recession spurred a global sell-off, which accelerated after a poor employment report on Friday showed that the US jobs market was cooling fast, pushing up the unemployment rate.

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Former Lib Dem leader Vince Cable testifies at inquiry into Post Office Horizon scandal – business live

Cable was business secretary from 2010-15 when the government privatised the Post Office

Cable has agreed with a description of Post Office management as “thugs in suits”, and had a goal of rebalancing the relationship between bosses and subpostmasters during his time in post.

He recounted a story about challenging 8 Post Office closures in his constituency, before he entered government, and being treated poorly by the organisation’s “middle management”.

Mr Bates has, I believe, described them as ‘thugs in suits’ and I recognise the description,” said Cable in his witness statement. “And [the Post Office] dealt with us in an arrogant way when we campaigned against closures.


In my first meeting with Paula Vennells [Post Office chief executive] I suggested this is what the Post Office should do,” he said. “We perhaps should have been more modest and had postmasters on the board, which would have achieved some of our aims, which I think has now happened.

Problems with Horizon barely came across my desk,” he said. “When they did it was usually in a very uncontroversial way and not drawn to my attention as an issue I should focus on. General reason is that the officials who were briefing me and ministers on the subject hadn’t seen it as a particular problem.

In hindsight, I should have been told at the outset what Horizon was,” he said. “That competent people … were suggesting there was a risk factor and I should have been told about Mr Bates and the justice group. I never heard his name until I’d been in the job five years. I wasn’t briefed on them.

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Human rights group urges UK financial regulator to block Shein’s LSE flotation

Campaigners allege Uyghur people used as forced labour at some of fast-fashion retailer’s cotton suppliers in China

A human rights group has urged Britain’s financial regulator to block the Chinese fast-fashion retailer Shein’s planned blockbuster flotation on the London Stock Exchange.

Stop Uyghur Genocide, a UK-based human rights charity that alleges minority Uyghur people are being used as forced labour at some of Shein’s cotton suppliers in China’s north-western Xinjiang region, has begun a legal campaign against the planned stock market listing.

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DS Smith’s £5.8bn takeover by US rival going ahead despite competition

Merger with International Paper moving at ‘absolutely full steam’ in face of separate interest from Brazil’s Suzano

The boss of the FTSE 100 company DS Smith has said its £5.8bn takeover by a US rival is going at “absolutely full steam”, despite concerns it could be derailed by another packaging sector merger.

Miles Roberts, DS Smith’s chief executive, said merger work with International Paper was “going very well” and that he definitely expected the deal to complete.

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Stop Shein listing on the FTSE, workers’ rights campaigners urge

Groups issue call to next government amid criticism of online fashion retailer’s labour practices and accusations of copying

Workers rights campaigners have called for the UK’s next government to oppose the online fashion business Shein joining the FTSE, arguing that a London listing would be “yet another betrayal to working people everywhere and the planet”.

Alena Ivanova, campaigns lead at Labour Behind the Label, said it had heard the news of senior British politicians courting Shein’s £50bn listing “with dismay” given what she claimed was a lack of transparency about its supply chain and ethical concerns.

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Oil services company John Wood Group rejects £1.4bn takeover offer

Aberdeen-based firm listed on FTSE 250 knocked back unsolicited approach from Dubai-based Sidara

The British oil services company John Wood Group has rejected a £1.4bn takeover offer from a Dubai-based rival, Sidara, which “fundamentally undervalued” the company.

Aberdeen-based Wood is the latest British company on the London Stock Exchange to face takeover speculation amid deepening concerns that UK-listed stocks are undervalued compared with other markets.

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Anglo American rejects £31bn takeover offer from mining rival BHP

All-share proposal had potential to be one of biggest deals in sector for decade but deemed ‘opportunistic’

The board of Anglo American, the London-listed mining company, has rejected a “highly unattractive” £31bn takeover approach from its Australian rival BHP.

BHP’s all-share proposed offer for Anglo American had the potential to be one of the biggest deals in the global mining sector for a decade but has attracted criticism from Anglo’s shareholders as being too low and “highly opportunistic”.

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What’s behind the record FTSE 100 high?

Hopes of a UK interest rate cut and easing geopolitical tensions are not the only reasons for the intraday peak reached this morning

The UK stock market has hit an intraday record high, lifted by hopes of interest rate cuts and easing geopolitical tensions, after setting a new closing high on Monday. The FTSE 100 index touched 8,076 points at the opening bell on Tuesday, surpassing a previous high of 8,047 reached in February 2023. We explain what is behind the rising London market.

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Women hold 42% of board seats at big UK firms, but just 10 are FTSE 100 bosses

Burberry, M&S and Next fare best for female representation but too few women are in top roles, report says

Women occupy more than two in five seats on the boards of the UK’s biggest listed companies but there are still “too few” in top positions with just 10 female FTSE 100 chief executives, according to a report.

The proportion of board positions held by women in the FTSE 350 rose to a record high of 42% this year, according to the government-backed annual FTSE Women Leaders Review. This is up from 24.5% in 2017 when the report was launched.

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US economy grew faster than expected as businesses invested – business live

Rolling coverage of business as US revises up GDP growth in third quarter to fastest pace of 2023

At lunchtime in the UK and western Europe markets are fairly flat all around.

The UK’s benchmark FTSE 100 has barely moved, although grocery delivery company Ocado is the top gainer, up 4.8%. (An Ocado director buying shares may have helped.) Trainer retailer JD Sports was the second biggest, up 4.5%.

These allegations are false, not true, incorrect, are not accurate. And it’s an attempt to undermine the work of the COP28 presidency,

I promise you, never ever did I see these talking points that they refer to or that I ever even used such talking points in my discussions.

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BAE agrees to buy space technology firm Ball Aerospace for $5.6bn

Weapon maker’s takeover of US firm comes amid global surge in spending on military and spying technology

Britain’s biggest weapons manufacturer, BAE Systems, has agreed to buy the US space technology company Ball Aerospace for $5.6bn (£4.4bn), in one of the largest takeovers by a UK company this year.

The FTSE 100 defence company said the purchase of the Colorado-based business would help it to expand in technologies that are US defence priorities.

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Silicon Valley Bank: global banking shares slide as fallout spreads

Stock markets fail to be reassured by Joe Biden’s intervention, as SVB failure is followed by Signature

Global financial markets have come under severe pressure after the collapse of Silicon Valley Bank, despite governments on both sides of the Atlantic taking extraordinary measures to maintain confidence in the banking system.

On a day conjuring up memories of the 2008 financial crisis, the US president, Joe Biden, sought to restore calm by insisting the US banking system remained safe, while HSBC stepped in to buy the UK arm of the failed technology lender after a deal brokered by the British government and the Bank of England.

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