Got a TV Licence?

You need one to watch live TV on any channel or device, and BBC programmes on iPlayer. It’s the law.

Find out more
I don’t have a TV Licence.

Summary

  1. ARM Holdings falls to Japan's Softbank in £24bn takeover
  2. FTSE 100 closes up 0.4% after ARM shares surge
  3. Turkish shares tumble after coup
  4. US bank Wells Fargo buys major new London office

Live Reporting

By Dan Macadam

All times stated are UK

Get involved

Good night!

That's all from Business Live for Monday - thanks for reading. We're back bright and early at 06:00 tomorrow - join us then.

BreakingWall Street ends higher

Wall Street closed higher on Monday, with the Dow Jones Industrial Average and S&P 500 hovering near record highs amid upbeat corporate results. 

The Dow rose 0.1%, the S&P 500 was 0.3% higher and the Nasdaq added 0.6%. 

Price hike a turn-off

More on Netflix: it seems price rises have deterred some customers. The company added 1.52 million subscribers outside the US in the second quarter, compared with analyst estimates of 2.1 million, and 160,000 subscribers in America - well short of the 532,000 predicted. 

However, revenue rose to $1.97bn, up from $1.48bn in the same period last year. 

May's pledge on foreign takeovers

Theresa May
Reuters

In case you're wondering, this is what Theresa May said about foreign takeovers of British businesses last week.  

It was in a speech launching her campaign for Conservative leader - a speech that was overshadowed when her rival Andrea Leadsom dropped out of the race shortly after. 

Mrs May spoke about "transient shareholders" seeking to buy UK firms like Cadbury's and AstraZeneca.

"It is hard to think of an industry of greater strategic importance to Britain than its pharmaceutical industry, and AstraZeneca is one of the jewels in its crown. Yet two years ago the Government almost allowed AstraZeneca to be sold to Pfizer, the US company with a track record of asset stripping and whose self-confessed attraction to the deal was to avoid tax," she said. 

"A proper industrial strategy wouldn’t automatically stop the sale of British firms to foreign ones, but it should be capable of stepping in to defend a sector that is as important as pharmaceuticals is to Britain."  

ARM sale a 'crying shame' for UK

Will Hutton
BBC

Economist Will Hutton says he is incredulous that the government is standing by while ARM - a British "crown jewel" - is being sold to foreign owners.

The FTSE 100 chip designer is the UK's potential response to Google, Facebook, or Microsoft, according to Mr Hutton, who is chairman of the Big Innovation Centre, which promotes innovation in British business.

"To see it going into Japanese hands is a great crying shame. I agree with Hermann Hauser, one of its founders, that it's a sad day for Britain and our technology and our industrial strategy," he tells BBC News.

"If you allow a crown jewel like this to go into Japanese hands, you're left with nothing. It took 30 years to build this company. It's a fabulous company.

"To let it go like this without a song and dance is extraordinary, it's unbelievable. I am incredulous that the Prime Minister to say what she did a week ago and then turn on a sixpence."

Mrs May said last week she wanted the government to have more power to step in when foreign companies try to take over UK firms.

BreakingNetflix tumbles

Chris Johnston

Business reporter

Netflix
Getty Images

Netflix shares have shed 14% in after-hours trading in New York after revealing that the streaming company added just 1.7 million subscribers in the second quarter. It had expected to add 2.5 million.

“We are growing, but not as fast as we would like or have been,” says chief executive Reed Hastings.

For the early risers

Osborne's political philosophy offers big messages

Kamal Ahmed

Economics editor

George Osborne delivering the Margaret Thatcher Lecture
PA

George Osborne's Margaret Thatcher Lecture on Monday night is his most substantial attempt since he lost his job at laying out the political philosophy that guided his time as Chancellor.

And there are a number of big messages at its heart.

First, the government must retain fiscal responsibility if the economy is to grow and keep the faith of international investors.

And, as the UK runs a significant trade deficit, that faith is important.

Second, it must be "pro-business".

Third, it should retain its enthusiasm for the "Northern Powerhouse", which he says he does not want to "let go" of.

Fourth, it should reach out to the world, and forge as close a link "as possible" to the rest of the European Union.

Read the rest of Kamal's blog here.

France's Fnac receives green light for £900m deal

Fnac store
Getty Images

French music and book chain Fnac is another step closer to creating the country's largest electronics retailer, as it looks to better compete with online retailers like Amazon.

France's competition regulator has approved Fnac's £900m bid to take over rival electronics retailer Darty.

The two companies, which together have combined sales of nearly €8bn (£6.7bn), have agreed to sell six stores in the greater Paris region as part of the approval.

Osborne, Cameron and Gove all spotted

They may have left office but they are certainly not hiding away. 

George Osborne spoke this evening at the free-market think tank, the Centre for Policy Studies, where he gave his support to the new Prime Minister.

"Tonight, and in the future, Theresa May and the new team she has assembled will have my support. She has the strength and the integrity to do the job, as she faces up to the great challenge that lies ahead," he said.

David Cameron was in the Commons earlier - sitting on the backbenches for the first time in more than 10 years (see below) - for the Trident debate; while Michael Gove asked a question during an earlier Commons statement on the Nice attacks.

View more on twitter

Tech crunch

Financial markets analyst David Jones tweets following the proposed £24bn takeover of UK chip designer ARM...

View more on twitter

Word of the day: Resile

George Osborne at Guildhall in London
PA

Anyone who has listened to George Osborne since the EU referendum will know that he is a fan of the word "resile" to describe his position on the outcome. 

The former Chancellor used it again this evening in a speech, telling the audience: "I don’t resile from any of the concerns that I expressed in advance of that vote". 

So what exactly does it mean?

It has it's roots in Latin, and means: "To draw back, withdraw, or distance oneself from an undertaking, declaration, course of action, or opinion."

So, essentially, he has no regrets. Hope that clears it up.

Fiat Chrysler investigation

Fiat Chrysler cars
Getty Images

US carmaker Fiat Chrysler (FCA) is under investigation by US authorities about whether it broke securities laws. 

The company said: "In response to press reports today, FCA confirms that it is cooperating with an SEC investigation into the reporting of vehicle unit sales to end customers in the US.  

"In its annual and quarterly financial statements, FCA records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers. 

"Inquiries into similar issues were recently made by the US Department of Justice. FCA will cooperate fully with these investigations."

Investors are a bit jittery - shares fell sharply earlier, but have now recovered.  

Yahoo's future

Yahoo chief executive Marissa Mayer
Getty Images

Yahoo reports earnings after the close of New York trading. It is also the final day for submissions for bids of its core business. 

We're unlikely to hear anything today but the online business journal Quartz says that the most likely buyers appear to be Verizon, AT&T, Softbank, Quicken Loans cofounder Dan Gilbert backed by Berkshire Hathaway, and some private equity firms.  

Chief executive Marissa Mayer has avoided publicly answering any questions in order to “preserve the value and integrity of the process,” says Quartz.  

Osborne 'will not let go' of Northern Powerhouse

UK has 'robust democracy' says Osborne

BBC economics editor Kamal Ahmed tweets:

Former chancellor George Osborne is giving a speech at the free-market think tank - the Centre for Policy Studies. 

View more on twitter
View more on twitter
View more on twitter
View more on twitter

Pokemon Gone?

Pokemon Go player in London
Getty Images

Analysts at Deutsche Bank believe the Pokemon Go fever that gripped Nintendo investors last week - doubling its share price - is a little overdone.

“Pokemon Go is a genuine phenomenon - just after little over a week, it has added $19 billion to the value of Nintendo,” writes Deutsche Bank analyst Han Joon Kim. 

However, he argues: "We need to see further hard evidence to model in significant further upside."

“We think the stock price now prices in a large portion of the market share recovery story, which we believe is readily achievable from leveraging its intellectual property to some degree,” he adds. 

Boys and their toys

Star Wars storm troopers
Reuters

Shares in Hasbro have slumped by 7% in New York.

Despite reporting better than expected earnings, investors are concerned about a slowdown in sales of toys targeted at boys, including Star Wars and Jurassic Park. 

The "boys" category accounts for more than a third of total revenue. 

The "sharp slowdown" in sales growth in the category was "worrisome", Jefferies analyst Trevor Young said. 

By contrast, sales of "girls" toys, including Disney Princess and Frozen dolls, grew strongly. 

Buffett buys $1.8bn 'gem of a company'

Warren Buffett
Reuters

Billionaire investor Warren Buffett has bought a company that provides insurance for US doctors.

Buffett's investment fund will buy Medical Liability Mutual Insurance Company, which had $1.8bn in funds last year.

“Good things are worth waiting for," Buffett said.

"MLMIC is a gem of a company that has protected New York’s physicians, mid-level providers, hospitals and dentists like no other for over 40 years." 

Chinese billionaire denies AC Milan takeover

AC Milan players defend a free kick against Juventus
Getty Images

Chinese internet giant Baidu has denied that the firm or its billionaire boss are involved in a deal to buy Italian football club AC Milan, Bloomberg reports.

China's state broadcaster reported that Baidu - which is the country's biggest search engine - were part of a $437m deal for the Serie A club.

Former Italian Prime Minister Silvio Berlusconi said earlier this month that he was close to selling the seven-time European champions to a Chinese consortium.  

What is ARM?

Leo Kelion, BBC technology desk editor, explains

What is Arm graphic?
BBC

ARM's microchips are used in many different products - from drones to smartphones.

It has often been described as the UK's leading technology company. And while it might not be a household name, many products that qualify rely on the Cambridge company's brainpower.

Read Leo Kelion's piece in full.

UK inflation pick-up 'likely'

Shopper with many shopping bags
PA

Inflation figures are due out on Tuesday and most experts are predicting it will have risen slightly - from 0.3% in May to 0.4% in June.

Pantheon Economics lays out their reasoning:

"Inflation likely picked up in June as the drags from falling petrol and airplane ticket prices eased.

"Clothing inflation probably dipped as bad weather hit demand, but services inflation likely firmed."

Uber accelerates past 2 billion trips

Uber car
AFP/Getty Images

Car hailing app Uber passed its 2 billionth trip on Saturday, chief executive Travis Kalanick wrote in a Facebook post.

"It took five years to reach our billionth trip, six months to reach the next billion … and we’ll hopefully reach our third even more quickly," he said. 

Uber is now available in 450 cities around the world and has gone on a spending spree to hire more drivers after raising more than $6bn in investment in the past year.   

Spot the takeover target

FTSE 100 winners and losers

FTSE 100 winners and losers
BBC

BreakingFTSE finishes at 11-month high

The FTSE 100 closed at its highest level since August 2015, as it was boosted by a surge in shares for the UK tech takeover target ARM. 

The blue-chip index was 0.4%, or 26 points, higher at 6,695.42. The FTSE 250 of mid-cap UK firms closed 0.8%, or 140 points, higher at 16,867.66.

'Brexit dividend bonanza'

Ten pound note
Reuters

Investors are set to benefit from a "dividend bonanza", says stockbroker firm Hargreaves Lansdown, after a report found the fall in the pound is set to boost dividends from UK companies by £4.3bn this year.

"Dividends are an investor’s best friend, particularly with interest rates on the floor and showing no sign of picking up," said Laith Khalaf, of Hargreaves Lansdown.

"While stock prices have risen to reflect the overseas earnings of many UK companies, existing investors can look forward to harvesting the extra payments resulting from a weaker pound."

Capita Dividend Monitor forecast the collapse in sterling would lift payouts, as many UK listed companies pay dividends in euros or dollars.

Turkish stock market finishes 7% lower

Turkish lira notes
Reuters

Shares in Istanbul have fallen 7.1% following Friday's attempted coup in Turkey.

The failed revolt has had little impact, though, on global markets - with stock markets in London, Frankfurt and the US all higher.

The rebellion by parts of the Turkish military, which led to hundreds of people being killed, was quashed by loyal government forces and civilians who took to the streets. 

Over the weekend the Turkish government moved to calm economic fears, saying it had consulted the central bank and the treasury and decided on "all necessary measures".

ARM 'sold 15bn microchips last year'

BBC economics producer Carolyn Rice tweets...

View more on twitter

FTSE rises after ARM deal

Shares in Cambridge-based microchip designer ARM are still flying since it announced a £24bn takeover by Japanese tech firm Softbank this morning.

FTSE 100-listed ARM is 42% higher and that's feeding through into gains for London's blue-chip index. The FTSE 100 is up 0.5% at 6,702 points heading into the final hour.

Meanwhile, the pound is up against the dollar at $1.3262, and higher against the euro at €1.1980.

Pokemon vs Brexit

Economics producer Mark Broad tweets...

View more on twitter

May discusses steel on Wales trip

Port Talbot steelworks
Reuters

Theresa May has discussed the fate of the Port Talbot steelworks on her first trip to Wales since taking over as Prime Minister.

"We want to continue to see steel making here - it's in the Welsh interest and also the UK national interest," Mrs May said after a meeting with the Welsh First Minister Carwyn Jones.

Tata has paused the sale of the Port Talbot plant while it considers a tie-up of its European steel operations with German steelmaker Thyssenkrupp.

However, Liberty House, one of the companies which expressed an interest in buying Port Talbot, has called on Mrs May's government to find a solution quickly for the south Wales site and Tata's other remaining UK steelworks.

"We urge the new UK government to seek a quick resolution to the current state of uncertainty which places many workers and businesses in limbo and creates a very serious risk that UK steel will become the victim of the inevitable capacity rationalisation across Europe," said Sanjeev Gupta, executive chairman of Liberty House.

Wall Street holds steady

US stock markets were largely unmoved at the start of the week. The Dow Jones was at 18,513.06, down less than 0.1%, and the S&P 500 was little changed at 2,162.16 at the opening bell. 

The tech-heavy Nasdaq rose 0.1% to 5,032.93, led higher by voucher website Groupon - which is up more than 8% after an analyst praised its increased focus on the US. 

It comes after the Dow and S&P 500 hit record highs nearly every day last week.  

'Campaign needed for state pension age changes'

Former pensions minister Ros Altmann talks to Vanessa Feltz on BBC Radio London...

View more on twitter

New pensions minister 'faces major challenges'

Ros Altmann, who left the government on Friday, deserves "considerable credit for standing up for workplace pensions and challenging the Treasury over its desire to scrap pension tax relief and move to a pensions ISA", says Steve Webb of Royal London. 

The new pensions minister "takes over at a time when there is much to be done", says Mr Webb, himself a former pensions minister in the Coalition government. 

Millions of workers are yet to be automatically enrolled and millions more are not saving enough for their retirement. The 2017 automatic enrolment review must tackle these issues, as well as the pensions crisis affecting the self-employed. We need an end to tax relief being seen as an annual 'piggy bank' to be raided by cash-strapped chancellors. And we need a coherent policy between Treasury and DWP, not least when it comes to pensions and ISAs. Let us hope that the new ministerial team will have a long tenure and that we will not see a return to the revolving ministerial door that we have seen in the past.”

Steve WebbRoyal London

Inside Wells Fargo's new London office

US bank Wells Fargo bought the 11-storey site from property developer HB Reavis. 

It's due to be finished in the third quarter of next year, but here are a couple more photos of what the rooftop garden and the interior of the building in the City of London will look like...

Rooftop at 33 King William Street
HB Reavis
Interior at 33 King William Street
HB Reavis

Wells Fargo agrees £300m new London office

Exterior of 33 King William Street
HB Reavis

US bank Wells Fargo has agreed to buy a major new office in London's financial district, in a sign of continued confidence in the City following the Brexit vote.

Reports said the price of the property - which is located near the Bank of England and River Thames - was around £300m. It is one of the biggest UK real estate deals since the referendum.

Buying the 11-storey office will enable Wells Fargo to consolidate all its London staff in one location when it's completed in the third quarter of 2017, property developer HB Reavis said.

The glass building, on 33 King William Street, will have a roof top garden with views out over the City.

Microsoft to miss 'one billion' Windows 10 target

Microsoft logo
Reuters

Microsoft has said it will miss its target of getting its Windows 10 operating system running on more than one billion devices by 2018.

In a statement, it said problems with its smartphone business would delay it hitting the milestone.The software giant has struggled to find customers for Windows phones in a market dominated by Android and Apple.  

Read the full story here.

Arm 'accounts for a third of UK tech sector's market cap'

Financial analyst Nicholas Dunbar tweets:

'Sad day for technology in Britain' says ARM co-founder Hermann Hauser

'Sad day for technology in Britain'

Bank of England 'not a nurse to markets'

Bank of England
Getty Images

You may remember the Bank of England last week gave a strong hint that interest rates may be cut at the next MPC meeting. However, one policymaker, Martin Weale, has questioned whether that will indeed be the case.

"The Old Lady of Threadneedle Street is not a nurse to markets," he said in a speech.

"People who trade in markets know that the Monetary Policy Committee sets policy month by month in the way that its members think appropriate. 

"It does sometimes, as we did in our July meeting, give an indication of where policy may go in the future. But that is no more than the best judgment at the time and not in any sense a commitment - the public understand that." 

"A second argument to which I give little weight is the argument that early action is needed to reassure people. 

"In contrast to the experience of 2008, I do not have any sense that either consumers or businesses are panic-struck and, as I observed, there have been no material signs of financial panic."