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Summary

  1. Barclays to pay $100m to settle Libor probe in 44 US states
  2. FTSE 100 closes higher at 6,809 points
  3. Walmart buys Jet.com for $3.3bn
  4. Tyrrells crisps sold for £300m
  5. Airbus investigated by Serious Fraud Office

Live Reporting

By Chris Johnston

All times stated are UK

Get involved

Good night

Chris Johnston

Business reporter

That's all from Business Live for today - thanks for reading. We're back at 06:00 tomorrow - do join us then.

News Corp revenues rise

News Corp, owner of the Times, the Wall Street Journal and publisher HarperCollins, reported a 5.1% rise in quarterly revenue, helped by strong growth in its digital real estate business. The Rupert Murdoch-controlled company said revenue rose to $2.23bn in the three months to 30 June 30, with net profit of $89, compared with a loss of $379m for the same period last year.

Wall Street falls

After reaching another record high on Friday, the S&P 500 and the Dow Jones both ended slightly lower, dragged down by badly performing healthcare stocks.

The S&P ended at 2,180 points, while the Dow Jones closed at 18,529 points.

 "The market is still digesting a blockbuster payroll number and I think a lot of things are in motion right now to assess whether the Fed raises earlier than thought," said Doug Cote, chief market strategist at Voya Investment Management in New York. "It certainly won't be September, but it could possibly be December." 

VW halts production

VW cars
Getty Images

Volkswagen is halting production of cars at one of its biggest German factories for two days this week. Something to do with the emissions scandal, perhaps? Erm, not quite. Apparently the car maker has run out of seat covers. 

Production in Emden, VW's northern German factory, which employs nearly 10,000 workers, has been stopped for today and Tuesday because a supplier its in-house vehicle seating maker is having delivery problems. 

Emden builds the VW Passat sedan and estate and the CC sedan, as well as components. It produced 264,000 cars last year, with daily output running at 1,250 cars.  

'It won't even be that hard'

Donald Trump
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If you want to read even more about Donald Trump's economic plan, my colleagues in Washington have come to your rescue:

Republican presidential nominee Donald Trump plans to "jump start" the US economy by suspending new regulations and cutting corporate taxes.

The real estate mogul revised his former plan to include making child care costs tax-deductible and ending the estate or "death" tax.

"I want to jump-start America and it can be done and it won't even be that hard," he said.

Several protesters interrupted Mr Trump's speech in Detroit, Michigan.

More here.

'Crucial historical juncture'

Hinkley Point
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To give you a flavour of Liu Xiaoming's piece in the Financial Times, here are the concluding two paragraphs: 

Right now, the China-UK relationship is at a crucial historical juncture. Mutual trust should be treasured even more. I hope the UK will keep its door open to China and that the British government will continue to support Hinkley Point - and come to a decision as soon as possible so that the project can proceed smoothly. It has not been easy for China and the UK to have come this far. As long as both sides cherish what has been achieved and continue to expand and deepen our co-operation across the board, bilateral relations will maintain their strong momentum and work for the wellbeing of both the Chinese and British people."

China vs UK

FT news editor Peter Spiegel tweets about an op ed from China's ambassador to the UK, Liu Xiaoming, in the wake of pressing pause on Hinkley Point:

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Everbank sold in $2.5bn deal

US online lender Everbank has been bought by financial services firm TIAA for an impressive $2.5bn (£1.9bn). TIAA, which is aimed at people working at not-for-profit firms in academia and research, says the deal will enable it to expand its internet banking services. 

Rob Clements, Everbank chief executive, is "extremely excited" about the deal: “Our two companies are a great match."

European markets edge higher

The three main indexes on Wall Street are now all in negative territory. However, it was a slightly better story this side of the Atlantic today, with London up 0.2%, Frankfurt ending 0.6% higher - although Paris closed up just 0.1%. 

Jasper Lawler at CMC Markets comments: "An early rally fizzled out in afternoon trading as European markets edged out a third day of gains which began with the Bank of England's 'sledgehammer' monetary policy decision on Thursday." 

Trading volumes were mostly thin, with analysts at Aurel BGC in Paris expecting "one of the calmest weeks of the year" with fewer corporate results and economic data, and no central bank meetings scheduled. It IS August after all...

Anti-everything?

ITV economics editor Noreena Hertz tweets on Trump:

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Barclays responds

Barclays has issued a response following the settlement announced today by the New York Attorney-General.

"Barclays is pleased to have resolved the state attorneys' general investigation into Barclays' legacy LIBOR- and Euribor-related activities," a spokesman for the bank said. "We believe this settlement is in the best interests of our shareholders and clients, and allows us to continue to focus on the future and serve our clients."

India experiment

From my colleague Chris Baraniuk on the technology desk:

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'Defrauded of millions'

Eric Schneiderman's press release states:

"Government entities and not-for-profit organizations in New York and throughout the U.S., among others, were defrauded of millions of dollars when they entered into swaps and other financial contracts with Barclays without knowing that Barclays and other banks on the USD-LIBOR-setting panel were manipulating LIBOR—a price component -- and, at times, colluding with other banks. These entities with LIBOR-linked swaps and other investment contracts with Barclays will be notified if they are eligible to receive restitution from a settlement fund of $93.35 million."

Schneiderman on Barclays

Back to the real world now, with a tweet from New York Attorney-General Eric Schneiderman following the Barclays Libor settlement announced today:

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Even more Trump

Bloomberg TV is carrying Donald Trump's speech. Its current strapline is: "Trump says he will cut regulations 'massively'" - whatever that means.

Unsurprisingly the Republican presidential candidate has also thrown in some offensive material to his speech, according to the Guardian's Sam Thielman:

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More Trump

Academic and commentator Justin Wolfers tweets on Trump:

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Trump speaks

Donald Trump is outlining his economic plan in Detroit as we speak.

US business editor John Mervin is listening, so we don't have to; some of the gems so far include:

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BreakingBarclays in $100m Libor settlement

Barclays sign
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Speaking of Barclays, the New York Attorney-General has just announced that the bank has agreed a $100m (£76m) settlement with 44 US states over charges that it manipulated the Libor interest rate. 

Eric Schneiderman said that Barclays is the first bank of several under investigation by state attorneys-general to reach a settlement and that it cooperated with the state probe. 

He said that as a result of the Libor rigging, government entities and non-profits were "defrauded of millions" when they entered into swap contracts with Barclays. "There has to be one set of rules for everyone, no matter how rich or how powerful, and that includes big banks and other financial institutions that engage in fraud or impair the fair functioning of financial markets," Mr Schneiderman said.

The settlement with the US states marks the latest in a series of enforcement actions the bank has faced in connection with Libor manipulation. 

Ocado to deliver Morrisons deal

Morrisons store
Getty Images

Morrisons is set to announce a deal with Ocado that will expand its online operations, Sky News reports.

The fourth-largest supermarket chain could reveal as soon as Tuesday that it will take capacity at an Ocado warehouse in Erith, Kent.

The move, which has been in the offing since an outline agreement was announced earlier this year, will include Ocado providing a store-picking service‎ to Morrisons - paving the way for a broader UK-wide home delivery operation.

Morrisons.com serves about half of UK households - far fewer than rivals Tesco and Sainsbury.

FTSE ends higher

Barclays sign
Getty Images

The FTSE 100 has ended the day 0.2% higher at 6,809 points, with miners including BHP Billiton, Anglo American, Rio Tinto and Antofagasta rising 1.7% to 3.3% percent following a rally in the price of key industrial metals and iron ore. 

Barclays was the biggest riser, up 3.6%, after Exane BNP Paribas upgraded its rating on the bank to "outperform" from "neutral".

Hikma Pharmaceuticals continued its rough ride of late to be the biggest faller, down 4%. 

Russia probes Apple pricing

Apple iPhone
Getty Images

Russia's anti-monopoly service has opened a case into price-fixing allegations concerning Apple iPhones after a consumer said that identical prices had been set for the iPhone 6s and iPhone 6s Plus models, which went on sale in Russia in October 2015, at 16 major retailers.

MTS, one of the resellers mentioned in the anti-monopoly service's statement, declined a request for comment. Euroset, another retailer mentioned, denied it had coordinated prices with competitors. 

Jet set

Jet.com
Jet.com

So just what is Jet.com, I hear you ask? It sells 12 million products, from jeans to nappies (aka diapers, if you're on the other side of the Atlantic) from more than 2,400 retailers and delivers to two thirds of the US overnight in its distinctive purple boxes. In some cities such as New York City, Jet offer same-day delivery for no extra cost. 

Jet has grown fast, reaching $1bn in sales in the 12 months since launching in July 2015. The acquisition will help Wal-Mart attract richer customers who are typically younger. 

Extensive TV advertising has helped it to add more than 400,000 new shoppers a month and process an average of 25,000 orders a day. 

Sterling slips

Sterling and dollar notes
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Sterling is down 0.23% at $1.3039 - not far from a three-week low of $1.3021 it hit on Friday. "Sterling/dollar still appears heavily tipped in favour of sellers," said Jameel Ahmad, chief market analyst at FXTM. The euro is up 0.15% at 84.955p - near its highest level for three weeks. 

Tuesday brings figures on industrial production and the trade deficit for June. "A fall in industrial production in June should be no surprise after the poor PMI figures," said Marshall Gittler, head of investment research at FXPrimus. "On the other hand, a small narrowing of the trade deficit may be taken as encouraging and could boost sterling."   

FT booklist spat

FT Frankfurt correspondent Patrick McGee tweets:

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Second bumper payday for Jet.com founder

Marc Lore
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Jet.com chief executive Marc Lore (pictured) will stay on following the sale to Walmart, though his role has not yet been confirmed. He sold his previous company Quidsi - which owned ecommerce sites including Diapers.com - to Amazon in November 2010 for $550m.

Jet was set up by Lore in July 2015 and initially offered big discounts on a pricing formula that took into account factors such as the number of items customers added to their baskets, for an $50 annual fee. However, it abandoned the subscription model just three months after launch. 

Walmart plans to retain the Jet.com brand and hopes it will "infuse Walmart with fresh ideas and expertise, as well as an attractive brand with proven appeal, especially with millennials, the first generation of true digital natives". Let's hope the millenials agree.

Some Delta flights resume

Delta plane
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Delta says some flights have begun several hours after a computer outage grounded planes around the world, leaving thousands stranded. The Atlanta-based airline said a computer power failure was responsible for the problems. 

Only a handful of flights took off on Monday rather the usual hundreds, according to flight-tracking services.  

Wall Street flat

Wall Street has opened flat after the main indexes extend record highs hit on Friday following the better than expected jobs numbers.

The Dow Jones industrial average is down 6 points at 18,537, while the S&P 500 is flat at 2,182. The Nasdaq is down a touch too at 5,218 points.   

Energy stocks led gainers amid rising crude oil prices, while health care companies were among the biggest decliners. 

Wal-Mart fell 0.6% to $73.26 after it announced a dea to buy fast-growing online retailer Jet.com for $3.3bn. The share have risen almost a fifth this year, however. 

BreakingWalmart confirms $3.3bn deal

Walmart store
Getty Images

Walmart has announced a deal to buy US online retailer Jet.com for about $3.3bn (£2.5bn) in a bid to better compete with the likes of Amazon.com. 

The world's largest retailer will pay $3bn in cash as well as shares worth a further $300m. 

"We're looking for ways to lower prices, broaden our assortment and offer the simplest, easiest shopping experience because that's what our customers want," said Walmart chief executive Doug McMillon. 

Talks about the deal were first reported last week by the Wall Street Journal. 

State of Play

Not everyone in the UK has Sky Atlantic (or HBO in the US), which is a shame as it means you miss out on John Oliver's rather splendid show Last Week Tonight. 

Fortunately last night's feature story on the state of journalism has been posted on YouTube for everyone to enjoy (although if you're outside the US click here to watch on Facebook):

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Railing against Southern

One for our readers in London and the South East of England from our personal finance reporter Brian Milligan:

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Good afternoon

Chris Johnston

Business reporter

Thanks to Dan and Katie for keeping us up to date this morning. I'm here through until 21:30 with the rest of the day's business news and views from the UK and beyond.

It is August and the Olympics are on, but markets are open and there is definitely business news out there. We hope. And if you so desire, follow me on Twitter at @cajuk

Steinhoff's buying spree continues

person in bed
iStock

We forgot to mention this earlier, but South African retailer Steinhoff has secured a deal to buy American firm Mattress Firm Holding for $3.8bn. 

Steinhoff, which owns over 40 retail brands, including Bensons for Beds and Harveys in the UK, has been on a bit of an acquisition spree of late, recently agreeing to buy discount chain Poundland.

Find out more about Steinhoff - the so called Ikea of Africa - here.

The market for mattresses is currently booming in the US as people try to work out how to sleep better. 

Which country has the sweetest tooth?

Brexit bookings boost

plane
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We've had plenty of news about the downside of the outcome of the UK's vote to leave the EU. But one upside is that flight bookings to the UK, and therefore visitor numbers, have increased. 

In the 28 days before the 23 June poll, flight reservations were running 2.8% behind the same period last year. In the month after the Brexit decision, they were up 4.3%, according to ForwardKeys which monitors travel patterns.

Visitors from Hong Kong saw the biggest increase, rising 30% after the vote.

The firm says the main attraction was likely the sharp drop in sterling making the UK comparatively cheaper. 

FTSE 100 slips back

After surging above 6,800 points this morning to touch its highest level for more than 13 months, the FTSE 100 has now dropped back. It is currently 0.1% down on the day at 6,785.70 points.

Pulling the index into negative territory are pharma firms. Hikma Pharmaceuticals is down nearly 5%, while GlaxoSmithKline and AstraZeneca are both down by almost 2%.

The FTSE 250 - which has more domestic stocks than the 100 - is faring better. It's 0.5% higher at 17,552.69 points.

On the currency markets, the pound is 0.1% lower against the dollar at $1.3061.

Lloyds share sell-off reports 'breach of trust'

Lloyds Bank
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Media reports suggesting the government could shelve its public sale of shares in Lloyds would be a breach of trust, says Hargreaves Lansdown senior analyst Laith Khalaf.

The taxpayer still owns just under 10% of the bank.    

But The Times has reported that the government's plans to sell Lloyds shares to private investors at 5% below the market price may be shelved due to the cost to the Treasury. 

Hargreaves Lansdown says it has done the maths and reckons the government can still afford to make good on its pledge.

"The government has now made enough money from the Lloyds bailout that it can comfortably make good on its promise to offer shares to the public, while still making a tidy profit for the Treasury," adds Mr Khalaf.

New York, New York

Tyrrells chief executive David Milner
Tyrrells

We asked for a photo of some Tyrrells crisps, and the company sent us this brilliant snap of chief executive David Milner enjoying a packet next to the Statue of Liberty.

The English crisps maker is looking forward to expanding further into the US and other international markets as a result of its £300m takeover by an American snack company.

In case you're wondering, the boss is tucking into cheddar and chive crisps.

Opec confirms September meeting

oil rigs in the sunset
AFP/Getty Images

Despite oil cartel Opec's statement appearing to be aimed at subduing market hopes that it will act to restrict output, it has had little impact. 

In fact, the oil price has continued to strengthen with Brent crude and US crude both now up 1.4% at $44.87 a barrel and $42.40 respectively. 

One thing buoying investors' mood may be Opec's confirmation, mentioned in its earlier statement, that it will have an informal meeting at the International Energy Forum in Algeria on 26-28 September.

Word of the day: 'Bumpitrage'

The Financial Times's Kate Burgess is introducing the word "bumpitrage" - a form of M&A arbitrage where funds agitate for a rise in bid prices.

It's becoming more common in Europe, she says, with recent examples including brewing giant AB InBev being pushed into raising its offer for rival SAB Miller.

Poundland could be the next battleground after US hedge fund Elliott Management took a major stake in the discount retailer. Elliott could now put pressure on South African retailer Steinhoff to raise its £600m takeover offer for Poundland, she says. 

Blame it on Atlanta