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Summary

  1. Get in touch: bizlivepage@bbc.co.uk
  2. Wall Street shares flat
  3. Oil prices shoot up
  4. UK launches national telecoms strategy
  5. FTSE falls due to trade tensions

Live Reporting

By Mary-Ann Russon

All times stated are UK

Good night

BBC testcard
BBC

That's it for today on Business Live - thanks for reading. We'll be back bright and early at 6am On Tuesday morning.

Do join us then for all the latest news and views from the wonderful world of business.

Wall Street ends flat

Wall Street
Getty Images

Wall Street shares have ended broadly flat after news of upcoming international trade talks offset the negative impact of the strengthening U.S. dollar on corporate earnings forecasts.

The Dow Jones Industrial Average closed 12.97 points lower at 25,045.15.

The S&P 500 ticked up 5.15 points to 2,806.98.

And finally, the tech-heavy Nasdaq finished 21.68 points higher at 7,841.87.

Alphabet beats forecasts

Alphabet
Getty Images

Google parent company Alphabet has beat Wall Street forecasts for its second quarter profit.

The company posted adjusted earnings of $10.58 per share, excluding the impact of equity investments and European antitrust regulators' record $5bn fine for abusing its dominance in mobile software.

Google is appealing the ruling.

When including the fine, second-quarter net income fell to $3.20bn from $3.52bn a year earlier.

Revenue jumped to $32.66bn from $26.01bn.

UK eyes new powers to block foreign takeover deals

Business Secretary Greg Clark
Getty Images

Government intervention in foreign takeovers of UK firms will massively increase under proposed new powers.

The government expects to review 50 foreign takeovers a year over national security. In the last two years it has reviewed just one takeover a year.

Previously the government could only review deals where the target company had annual revenues of over £70m.

The proposed new legislation would abolish that threshold - entirely and permanently.

It marks a new era in government oversight of corporate activity deemed likely to the threaten national interests.

The government expects that the new thresholds will result in 200 notifications of potential national security concerns being raised when either whole companies or sensitive assets are being acquired.

Read more here

Tesla responds

Tesla car at charging point
Getty Images

Tesla has responded to news it has been asking some suppliers for refunds in order to stay profitable.

Tesla says the appeal was a standard part of procurement negotiations.

In a statement released Monday, the firm said it had asked fewer than 10 companies to discuss costs related to projects that dated to 2016.

"The remainder of our discussions with suppliers are entirely focused on future parts price and design or process changes that will help us lower fundamental costs," it said.

Initially, Tesla shares dropped by more than 5% on Monday morning as investors responded to the report, although they recovered some ground later.

Nike adjusting salaries to address gender pay equality

Nike's chief executive Mark Parker
Getty Images

Nike has announced that it is raising the salaries of over 7,000 employees in a bid to address concerns about gender pay equality.

An internal memo seen by CNBC said that 10% of employees - both men and women - would receive adjustments to their salaries to ensure that both sexes are being equally compensated for the same roles globally.

In April, eight male senior executives left Nike after the answers to a survey of female employees asking whether they had experienced sexual harassment or gender discrimination in the workplace found their way to the desk of the sportswear brand's chief executive Mark Parker.

Brexit deal will protect jobs, says May

Theresa May speaking to workers at Reece Group Limited, in Newcastle
Getty Images

The Government's preferred Brexit deal will "protect jobs and livelihoods" in the North East and support major manufacturers such as Nissan, Prime Minister Theresa May has said.

Her Cabinet visited the region earlier to tie in with the Great Exhibition of the North in Newcastle and Gateshead.

The Prime Minster also confirmed up to £780m would be invested in the East Coast Main Line from 2019.

However, business leaders warned her Brexit approach could see job losses.

Theresa May speaking to workers at Reece Group Limited, in Newcastle

Brexit deal will protect jobs says May

Theresa May vows her Brexit plan will benefit the North East as the Cabinet visits Tyneside.

Read more

Barclays plans 2,500 new jobs in Glasgow

Barclays has unveiled plans to create up to 2,500 jobs at a new hub in Glasgow, in a major boost to Scotland's financial services sector.

The bank will house its technology, functions and operations teams at a campus at the planned Buchanan Wharf development on the banks of the Clyde.

Barclays has agreed to purchase the campus development from Drum Property Group and is currently finalising the design of the new facility as part of the wider Buchanan Wharf development.

The bank's existing Scottish operations are expected to start transferring to the new campus from 2021.

Derelict riverside area to become Barclays banking hub

Trump's battle for carbon emissions

Cars on a highway in New Jersey
Getty Images

The Trump administration is expected to propose a change to legislation that currently restrict carbon emissions and mandate the need for electric cars in the state of California, government officials have told Reuters on condition of anonymity.

California and a dozen other states have adopted the new rules in order to help protect the environment. In particular, California wants to get to five million zero-emissions vehicles in the state by 2030.

If the bill to freeze vehicle emissions requirements between 2020 to 2026 goes through, this would increase America's consumption of fuel by about 500,000 barrels of oil per day.

The draft proposal claims that this new legislation would prevent up to 1,000 highway deaths annually, if people are not being prodded to purchase new, safer cars.

Not needing to make sure that cars produce less carbon emissions would also bring down the cost of new cars, which also would apparently help to prevent the highway deaths, the draft proposal says.

If this goes ahead, there will likely be a large row, as 17 states have already warned that they will challenge the Trump administration if it tries to review US vehicle emissions rules.

Ministers braced for 'no deal' Brexit

Welsh ministers are braced for a 'no deal' Brexit and the impact of what that could mean for farmers.

A no deal Brexit would cause a "seismic shock" through the Welsh farming industry, an industry leader has warned as the Royal Welsh Show got under way.

Brexit is expected to dominate the show with UK Environment Secretary Michael Gove attending.

Ministers braced for 'no deal' Brexit

Bank of England to keep changing interest rates

Bank of England
Getty Images

The Bank of England's deputy governor Ben Broadbent has said that BoE will continue to use interest rates as its main tool for steering the British economy.

Another key tool the BoE uses it quantitative easing, but it said in June that it intends to start selling some of the £435bn worth of government bonds it currently owns once its interest rates is raised to 1.5%.

"The framework is designed to ensure that, should inflationary pressures weaken after that date, the first response would be to cut interest rates," Mr Broadbent told an audience at London's Society of Professional Economists today.

Looking towards Generation Z

Generation Z children watching YouTube shows
Washington Post
Generation Z children watching YouTube shows

Forget millennials, apparently it's now time to look towards Generation Z, which Barclays defines as being people born between 1995 to 2009, aged between 8 to 23.

Barclays analysts have been investigating which leisure brands are likely to benefit from tech-savvy younger consumers' changing habits.

They believe that the British firms that will most benefit from Generation Z lifestyles include pub chain JD Wetherspoon, amusement park corporation Merlin, fitness facilities The Gym Group and Basic Fit, as well as travel operators Thomas Cook and TUI.

Shortlist for new Channel 4 base revealed

Channel 4's current home is in London's Horseferry Road
BBC
Channel 4's current home is in London's Horseferry Road

Birmingham, Greater Manchester and Leeds are all in the running to host Channel 4's new national headquarters, the broadcaster has announced.

The company wants to move 300 of its 800 staff out of London to a national headquarters and two "creative hubs".

The channel confirmed Leeds, Birmingham and Greater Manchester had progressed to the next stage of negotiations as potential national HQ locations.

There will also be smaller "creative hubs" - the two cities that lose out on the national HQ will be considered for this, together with Bristol, Cardiff and Glasgow.

London shares end lower

London Stock Exchange
Getty Images

London shares have ended lower, due to investor jitters over US President Trump's comments on Friday that he is ready to impose tariffs on all Chinese imports.

The FTSE 100 closed 23 points or 0.3% lower to 7,655.79, with the losers led by housebuilders Taylor Wimpey, which fell 4% to 170p.

Last week, it was reported that a 70-year-old subcontractor was killed in a site digger incident at its Stoneley Park site in Crewe.

The FTSE 250 ended 155.3 points or 0.7% down to 20,770.38. British business-to-business media firm Ascential Group tumbled 5.6% to 433.4p after announcing that while revenue for the first half of 2018 rose to £189m, operating profit slid 11% to £29m.

Tesla shares hit by report it is seeking refunds

Tesla
Getty Images

Tesla shares have fallen by more than 5% following a report that it is seeking refunds from suppliers.

The electric carmaker, which is headed by Elon Musk, told suppliers the refunds were critical to its ability to stay in business, according to the Wall Street Journal.

Tesla did not respond to a BBC request for comment.

The company told the Journal that the appeal was a standard part of procurement negotiations.

Uber driver streamed hidden camera videos on Twitch

Driver Jason Gargac, who live-streamed Uber and Lyft passengers' journeys on Twitch
Twitch/JustSmurf

An Uber and Lyft driver who broadcast videos of his passengers online has been suspended from both car-sharing services.

Jason Gargac live-streamed passengers' journeys on video-sharing site Twitch, where viewers would comment on their behaviour and appearance.

Local newspaper the St. Louis Post-Dispatch said passengers were seen kissing, vomiting and gossiping about relatives and work colleagues.

His Twitch channel has been suspended.

'Tariffs aren't the answer'

BBC World News presenter Aaron Heslehurst has spoken with the United States Council for International Business, which says that although President Trump is right to try to address the balance of trade between the US and China, he isn't going about it the right way....

View more on twitter

New Fiat chief will have a full in-tray

Sergio Marchionne
Getty Images

Evidence of the uncertainty facing carmaker Fiat-Chrysler Automobiles (FCA) came fast on Monday.

News over the weekend that the driving force behind FCA's growth, Sergio Marchionne, would not return to work after surgery sent the shares down 5%.

It was soon followed by reports that one of the unsuccessful candidates to replace Mr Marchionne, Europe chief Alfredo Altavilla, had resigned.

The new chief is Briton Mike Manley - and he has a tough act to follow.

Amazon shares slip on Trump tweets

Amazon shares slipped briefly following tweets just now by US President Donald Trump complaining about the internet giant.

President Trump has made it clear in the past that he doesn't like Amazon, and blames it for putting brick and mortar retailers out of business.

Today, he says that Amazon is taking advantage of the US Post Office, and he is also upset with the Washington Post, which he says is a "lobbyist" for the internet giant.

Amazon is now 15.5 points or 0.9% lower to $1,798.25.

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

'The turmeric of 2018'

Cannabidiol vapor products are displayed during the Cannabis World Congress & Business Expo at the Jacob Javits Center on June 17, 2016 in New York City.
Getty Images

Have you ever heard of Cannabidiol? Nor had we. Also known as CBD, it is derived from marijuana and hemp plants. According to the the New Yorker, is appearing everywhere in the city.

The writer points out that some New Yorkers will try anything to "soften the city's edge".

Unlike other states, New York has not legalized marijuana, so CBD is a legal alternative to relax.

However, the writer is not convinced about its effects and one contributor brands it the "tumeric of 2018".

Wall Street opens flat

Wall Street
Getty Images

Wall Street shares have been flat on open, as rises in energy stocks due to rising crude oil prices were offset by losses in technology shares.

The Dow Jones Industrial Average is now just 27.3 points or 0.1% lower to 25,030.80. Top of the losers is consumer product manufacturer 3M, which has fallen 1% to $200.06 ahead of its second quarter earnings results announcement tomorrow.

The S&P 500 has nudged down 3.2 points or 0.1% to 2,798.20. The losers are led by oil field service firm Halliburton, which just announced strong second quarter profits as rising oil prices boosted drilling in West Texas, Mexico and the Middle East.

And finally, the tech-heavy Nasdaq has slipped 37 points or 0.5% to 7,783.87. Elon Musk's electric car company Tesla heads the losers, dropping 5.4% to $296.52 following news reports over the weekend that Tesla asked some suppliers for refunds to help it reach profitability in a memo.

There was also a report from Needham & Co analyst Rajvindra Gill saying that 24% of Tesla Model 3 orders have been cancelled.

Tesla disputes the analyst report, but has not responded to comment over the memo, which was first seen by the Wall Street Journal.

In other news, you can now follow the New York Stock Exchange on Pinterest (see picture above).

The NYSE Pinterest account features a lot of historical images, including original stock certificates for many well-known listed companies, dating as far back to 1838.

Deliveroo calling for gig economy charter

Deliveroo
AFP

Food delivery app company Deliveroo is calling for the UK government to draw up a "gig economy charter" to enable the firm to offer its workers sick pay and holidays.

Currently all workers for firms like Deliveroo, Uber and Amazon are considered to be self-employed, which means that they do not have access to any of the benefits of full-time employees.

Deliveroo wants the government to help it offer some benefits to workers, without needing to formally employ them.

Deliveroo co-founder Will Shu wrote in the Telegraph that “a charter would give greater clarity for companies who want to offer self-employed contractors more security, as well as greater certainty for those who work in the on-demand economy".

Good afternoon

A pair of deck chairs in St James' Park, London
Getty Images

Thanks Dearbail and Ben for this morning's live coverage of all things business.

Mary-Ann Russon with you until 21:30 for the rest of the day's news and views.

It's 33 degrees Celsius in London today - how are you coping with the heat wave in the UK?

Got a point of view? You can also tweet me at @concertina226 and @BBCBusiness.

Cushman & Wakefield reveal float price

City of London
Getty Images

Cushman & Wakefield, the commercial real estate giant, has just announced its plan to price its shares at between $16 and $18 when it floats the business.

The company is owned by private equity firms and employs 48,000 people across 70 countries and intends to raise funds to pat down its debt which stands at $3bn.

UK to double windfarm capacity

Wind farm
PA

The production of power from UK offshore windfarms is set to double over the next decades.

The government is supporting offshore wind power with auctions for subsidies every two years.

Under the plan remote islands will also be counted as offshore.

Energy and Clean Growth Minister Claire Perry said: "The UK renewables sector is thriving, with more offshore wind capacity here than anywhere else in the world and 50% of electricity coming from low-carbon sources last year in what was our greenest year ever.

"For the last decade the Offshore wind industry has been a great British success story."

Citroen boss on work/life balance

Oil shoots higher

Brent Crude
Hargreaves Lansdown

Oil prices have pushed higher today. North Sea Brent Crude is up 1.2% at $74.03.

Sharp exchanges between President Donald Trump and Iranian leaders have spurred traders who fear that supplies could be disrupted.

Iranian President Hassan Rouhani said Iran could block oil shipments from the Gulf, if its oil exports were stopped.

Prices were also supported by a 24 hour strike by 40 rig workers on platforms in the North Sea.

Tough day ahead for Tesla?

Tesla
Getty Images

The US stock markets will open shortly and one company to keep an eye on is Tesla.

Its share price is down more than 4% in pre-market trading.

As Business Live reported earlier - see the post at 9.05am - the Wall Street Journal says that the electric car-maker has asked suppliers for cash back.

Investors, it seems, are jittery.

Ocado leads FTSE 100 risers

Ocado
Getty Images

The FTSE 100 is now down 0.35% at 7,651.80.

Ocado, the online grocery delivery company, is leading the risers with its share price up 4.7% at £11.32.

House builder Barratt Developments is the biggest faller, down 2.4% at 519.4p.

The FTSE 250 is down 0.51% at 20,818.52.

Ted talks trashed

Public speaker
Getty Images

Ted talks are rather popular among business chiefs.

In case you have not come across Ted talks, they emerged in 1984 from a conference combining technology, entertainment an design.

They are supposed to be short and inspiring, and some are very good.

But in a Guardian opinion piece Julie Bindel a freelance journalist and founder of Justice for Women, questions why spectators pay thousands of dollars to watch them.

"Many of the speakers state the blatantly obvious on a loop, sounding as though they have discovered the theory of relativity all over again," she says.

"The pretentious gestures, rehearsed pauses and speech traits single them out from other public speakers."

Ouch.

Hasbro sales beat forecasts

Tthe Star Wars booth at the Hasbro showroom
Getty Images

Hasbro is attempting to put the collapse of Toys "R" Us, a major customer, behind it and has announced better than expected second quarter results.

Sales fell by 7% to $904.5m (£688.16m) - analysts had been expecting $833.1m.

Profits at the company that makes Star Wars toys fell to $60.3m compared to $67.7m in the second quarter last year.

Hasbro’s chairman and chief executive Brian Goldner said: "2018 is unfolding as expected as our teams manage the liquidation of Toys“R”Us in many markets and address the rapidly evolving European retail landscape."

In the US, sales and operating profit both fell by 7%.

Internationally, revenue dropped by 11% while income plunged by 99%.

Mr Goldner said: "We are focused on moving beyond the near-term disruption of losing a major customer, with a clear path forward including new retailer activations to meet the consumer demand made available by the Toys“R”Us departure.”

It's Ikea, but not quite as we know it...

The Wall Street Journal has gone shopping at Ikea's first store in India:

View more on twitter

A silver lining for Ryanair?

Clouds
Getty Images

Ryanair's share price fell by 5.32% after it reported a sharp fall in first quarter profit because of higher fuel bills and wage costs and a potentially bumpy time ahead.

Neil Wilson, chief market analyst at Markets.com, says: "Of course higher oil prices are not just a Ryanair problem and management says European airlines are suffering ‘a significant cash flow squeeze and/or are close to breaching debt covenants’.

"Ryanair suggests this will lead to further airline failures and consolidation this winter, a trend that we would agree with. As consistently argued, Ryanair is exceptionally well placed to take advantage of long overdue consolidation in Europe."

Fiat Chrysler Europe chief to resign - Bloomberg report

Fiat
Getty Images

Bloomberg is reporting that Alfredo Altavilla, the head of Europe at Fiat Chrysler is set to resign.

At the weekend, the carmaker said that its chief executive Sergio Marchionne was being replaced due to ill health.

He is being replaced by Mike Manley.

Mr Altavilla, Mr Manley and chief financial officer Richard Palmer had been seen as the frontrunners to succeed Mr Marchionne.

Carillion auditor appoints risk officer

Carillion
Getty Images

KPMG, the accountancy firm that acted as auditor to the collapse services and outsourcing company Carillion, has appointed a chief risk officer.

Mary O'Connor will be a member of KPMG's executive committee and the UK board.

Ms O'Connor previously worked at Willis Towers Watson, where she led client and business development and the global financial institutions industry group.

Big government deal for Capita in limbo

Ministry of Defence
PA

Shares in Capita are down more than 2%.

There was bad news for outsourcing firm when the Ministry of Defence suspended a contract for the provision of fire fighting services on military sites.

Capita appeared to have won that contract in June, beating rival Serco.

But Serco has taken legal action and the MoD is suspending the contract until the legal challenge is sorted out.

"Capita remains fully committed to the future delivery of the Defence Fire and Rescue Project and will continue to support the MoD on this matter," Capita said in a statement.

The fire contract was the first big deal to be awarded by the government since the collapse of Carillion, which was an important supplier to the state and was also involved in building roads and hospitals.

Save money while abroad

Big banks take almost 3%, plus a withdrawal charge of £1, if you withdraw cash while you are abroad.

BBC personal finance correspondent Simon Gompertz, has been looking for some other options...

View more on twitter
View more on twitter

Chinese borrowers flee peer-to-peer lenders - report

Chinese yuan
Reuters

This might be worth keeping an eye on.

The FT reports that there has been a rush to withdraw funds from China's peer-to-peer lending industry.

Around 150 of those lenders have run into trouble since the beginning of June.

Peer-to-peer lenders match people or companies with money to loan, to individuals looking to borrow.

In the City of Hangzhou, two sports stadiums have been converted into centres where Chinese people can file grievances against lenders, the FT reports.

It says a government task force has been trying to reform the industry since April of 2016.

Escape Hunt signs Doctor Who deal

Dr Who
PA

Have you ever paid money for clues on how to get out of a locked room?

Well it is a thing and a company called Escape Hunt has a business based on that form of entertainment.

Now Escape Hunt has signed a deal with the BBC to create Doctor Who-themed escape rooms in the UK.

Commenting on the deal, analysts at Peel Hunt said: "The Dr Who licence will allow Escape Hunt to open escape rooms based on a globally recognised brand, highly relevant to escape room customers.

"This is a remarkable achievement for what is still a start-up and we expect the market to be relaxed about the further delay in the business achieving critical mass."

The 11th series of Doctor Who, starring Jode Whittaker (pictured above), will premiere on BBC One in the UK this autumn.

McColl's shares plunge

McColl's
McColl's

Shares in McColl's, the convenience store and newsagents chain, are down 12.16% at 184.46p after it reported a steep fall in interim like-for-like sales.

The company was severely affected by the collapse of wholesaler Palmer & Harvey.

Chief executive Jonathan Miller said it was "one of the most challenging six months the business has ever faced".

"During the first half we experienced unprecedented supply chain disruption following the collapse of P&H last November.

"This temporary upheaval has inevitably impacted sales and margin performance in the c700 stores that were formerly supplied by P&H, and has also had knock-on effects on the rest of the estate."