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Summary

  1. Get in touch: bizlivepage@bbc.co.uk
  2. Tesla shares drop 8.6%
  3. FTSE trading lower
  4. Turkish lira falls on the dollar
  5. Eurozone inflation hits 2.1%
  6. Six parties made offers for House of Fraser
  7. 16-year-old pleads guilty to hacking Apple

Live Reporting

By Mary-Ann Russon

All times stated are UK

Good night

BBC testcard
BBC

That's it for this week on Business Live - thanks for reading.

We'll be back bright and early at 6am on Monday. Join us then for all the latest breaking news and analysis from the world of business.

Wall Street ends higher

Golden bull and little girl statues in Wall Street
Getty Images

Shares on Wall Street have ended higher, following media reports that the US and China are planning talks to resolve their trade dispute in November.

The Dow Jones Industrial Average closed 0.46% ahead at 29,665.32.

The S&P 500 gained 0.33% to 2,850.13.

And finally, the tech-heavy Nasdaq climbed 0.13% to 7,816.33.

Turkey and US trade threats in pastor row

Donald Trump and Recep Tayyip Erdogan in Brussels, July 2018
AFP
The pastor is only one of a number of issues dividing Mr Trump and Mr Erdogan

Turkey has warned it will retaliate if the US imposes further sanctions over a detained US pastor as the row between the two Nato allies intensifies.

Andrew Brunson has been held in Turkey for nearly two years over alleged links to political groups. On Friday, a court rejected another appeal to free him.

President Donald Trump said the US was not going "to take it sitting down".

Turkey's currency, the lira, has plummeted after the two nations imposed tariffs on one another's goods.

The impact of the new tariffs on imported goods has prompted widespread selling in other emerging markets, sparking fears of a global crisis.

Walmart files patent for VR shopping system

Walmart logo
Getty Images

American supermarket giant Walmart has filed patents for a futuristic-looking virtual reality shopping system.

According to documents filed with the US Patent and Trademark Office, Walmart wants to patent the "virtual reality showroom system", where customers can don VR headsets and haptic sensor gloves, and use them to navigate a virtual version of the store.

Walmart is quite keen on exploring new technologies and has previously filed patents where it describes using drones to retrieve packages from its warehouse area, or using drones to find an item for a customer in the store, and then provide navigations via a smartphone app to the customer.

White House optimistic about Mexico trade deal

Mexican Foreign Secretary Luis Videgaray Caso met with US Secretary of State Mike Pompeo on Thursday
AFP
Mexican Foreign Secretary Luis Videgaray Caso met with US Secretary of State Mike Pompeo on Thursday

Mexican press has been saying over the last two days that trade relations between Mexico and the US might not be as bad as previously thought, and it seems that they are right.

Kevin Hassett, chairman of the White House Council of Economics Advisers, has said in an interview on Fox Business Network that things are looking good.

"I think that we're very, very close to a deal with Mexico," he said, although he added that there were still a few sticking points that needed to be ironed out.

US and China keen to resolve dispute by November

US and China flags
Getty Images

The US and China are apparently actively working to end their on-going trade dispute by November, and are in fact planning for their leaders to meet soon.

According to the Wall Street Journal, both countries are working to set up meetings between US President Donald Trump and Chinese President Xi Jinping at a summit next week.

A nine-member delegation from Beijing, led by Vice Commerce Minister Wang Shouwen, meet with a team of US officials led by the Treasury undersecretary David Malpass on Wednesday and Thursday 22 and 23 August.

BreakingGoldman Sachs faces probe from UK regulators

Goldman Sachs
Getty Images

Goldman Sachs is apparently facing a probe from British regulators over its Markets in Financial Instruments Directive (MiFID II) reporting practices - a new regulation in Europe introduced in January that requires finance firms to improve how they report their trading activities, and offer customers a range of different research before making decisions.

Sources have told Bloomberg that a former Goldman Sachs employee sent a complaint to the Financial Conduct Authority earlier this year claiming that the bank's approach was to flood regulators with too much data and inaccurate information in breach of compliance guidelines.

TiVo shares slide on Amazon annoucement

TiVo
Getty Images

Shares in popular American TV recording box maker TiVo have fallen following a report that internet giant Amazon is planning its own live TV recording box.

TiVo shares are now down 3.33% to $12.32.

Tesla shares still falling

Tesla store logo
Getty Images

Tesla shares are still falling, and are now down 8.6%.

On top of Elon Musk's interview with the New York Times and the damning analysis from UBS saying that each Model 3 car is likely to lose $6,000 in higher costs for the powertrain, here is additional criticism from hedge fund manager Crispin Odey.

According to Bloomberg, Mr Odey wrote in a note to investors: "Shorts like Tesla have been difficult to hold on to, however Tesla feels like it is entering the final stage of its life."

He added that Mr Musk's behaviour could be compared to that of Donald Crowhurst, a British amateur sailor who set off on the Sunday Times' Golden Globe Race - a solo round-the-world yacht race - in 1968 to try to win the money to aid his failing business, and died a year later at sea.

No deal papers 'should be neutral'

A former Brexit minister says he hopes government technical documents on the impact of a “no deal” Brexit will be "presented in neutral terms".

David Jones, who was a minister from 2016 until 2017 and campaigned for Brexit, added: "It’s a great shame that these documents have not been published sooner.”

Tory MP David Jones says the no-deal Brexit documents should have been published earlier

Will AI ever understand us?

Boring Company asks for a tax break

Boring Company
Boring Company

Tech entrepreneur Elon Musk's third firm - Boring Company - which is focused on infrastructure and tunnel construction, has asked the US government for a tax break.

In a letter dated 31 July that has been published on the website of the US Office of Trade Representative, the Boring Company has asked the Trump administration for a 12-month-long exclusion on tariffs placed on goods being imported from China, pertaining specifically to tunnelling machine parts.

The request says that if the Boring Company is not able to get the parts it needs from China, and if it needs to pay higher taxes on those parts, then there will be a delay of between one to two years on the completion of a tunnel on the East Coast that will enable hyperloop maglev trains to run.

The Boring company added that the tariffs would also lead to job losses in the sector, and actually serve to increase the US' reliance on Chinese manufacturing.

Tesla shares down

Tesla
Getty Images

Shares in electric car company Tesla have dropped following the publication of Elon Musk's tearful interview with the New York Times today, as well as UBS analysts' declaring that Tesla could lose $6,000 on every base model due to higher costs for the powertrain.

In the NYT interview, apart from discussing why he sent out a tweet stating that he wanted to take Tesla private, Elon Musk said that he has been working 120-hour-long weeks and that he spent the full 24 hours of his birthday in June working.

Tesla shares have fallen 7.6% to $309.86.

Lack of film roles 'for older women'

Emma Thompson
AFP

British Oscar-winning actress Emma Thompson, 59, has spoken out about the lack of big screen acting roles available for older women.

She is starring in a new film called The Children Act as a family court judge.

"Men don't have any problem with that," she said at the premiere of the film.

"It's something that hasn't yet properly changed.

"We are seeing some really good and interesting new roles, so one's got to be hopeful," she added.

London closes flat

London Stock Exchange
Getty Images

London shares have ended flat, as the pound slipped against the euro, despite a modest rise against the dollar.

The FTSE 100 closed just 2.2 points or 0.03% down to 7,558.59. Top of the losers was Chilean copper miner Antofagasta, which fell 2% to 826p as the strengthening dollar continued to impact commodities stocks this week.

The FTSE 250 ended 18 points or 0.09% lower to 20,444.36. Another mining firm Kaz Minerals topped the losers, dropping an epic 13.8% to 483p after Credit Suisse downgraded its stock from "outperform" to "neutral".

US imposes sanctions in Myanmar

Rohingya Muslims fleeing Myanmar
AFP

The US Treasury Department has announced that it is imposing sanctions on two military divisions in Myanmar and four individuals in relation to human rights abuses caused by the Rohingya crisis.

“Burmese security forces have engaged in violent campaigns against ethnic minority communities across Burma, including ethnic cleansing, massacres, sexual assault, extrajudicial killings, and other serious human rights abuses," said Sigal Mandelker, Treasury Under Secretary for Terrorism and Financial Intelligence.

"Treasury is sanctioning units and leaders overseeing this horrific behavior as part of a broader US government strategy to hold accountable those responsible for such wide scale human suffering.”

The sanctions mean that the Treasury has warned US banks and businesses not to do business with the sanctioned individuals, as part of its role to combat corruption and human rights abuse.

The sanctions also act to freeze the overseas assets of the affected Myanmarese individuals and to ban them from travelling to the US.

How much does House of Fraser owe?

House of Fraser
Getty Images

This morning, administrators EY published a huge long list of all the hundreds of suppliers that are still owed money by House of Fraser since it collapsed.

Total liabilities stand at £753.6m, while unsecured non-preferential claims will be about £484m.

Here is a list of some of the largest creditors:

  • British luxury fashion company Mulberry is owed £2,411,570.17
  • UK fashion retailer All Saints is owed £1,776,969.87
  • Italian luxury fashion house Giorgio Armani is owed £1,590,849.62
  • British women's clothing retailer Karen Millen is owed £957,320.10
  • UK luxury clothing retailer Jigsaw is owed £440,471.25

Model 3 'could lose $6,000 a car'

Chris Johnston

Business reporter, BBC News

Tesla Model 3
Reuters

Poor Elon Musk just can't catch a break today... First he gives a frankly bizarre interview to the New York Times in which he says he definitely wasn't high when he sent the "take-private" tweet earlier this month.

Now analysts at UBS says its Model 3 will not have better profit margins than a conventional BMW - and the company could actually lose $6,000 on every base model due to higher costs for the powertrain.

Tesla is banking on its Model 3 to ensure future profitability. The base model is $35,000, but buyers can upgrade to a $49,000 version that has a longer range battery and high-end trim.

UBS said the powertrain - a component crucial to Model 3's architecture - cost $950 more than a previous forecast.

"While Tesla's powertrain was better than peers in terms of cost per kWh and performance, their lead was not as large as we would have expected," analyst Colin Langan said in a research note titled "Is Tesla Revolutionary or Evolutionary?"

"With these economics, we expect the $35k base Model 3 to lose about $6k/car."

Campbell Soup 'taps Goldman Sachs'

Campbells Soup
Getty Images

Troubled firm Campbell Soup has allegedly hired Goldman Sachs to manage the sale of some of its business units, so that it can pay down existing debts, according to CNBC.

Campbell Soup acquired pretzel maker Snyder's Lance in March at a cost of $6.1bn, which caused its debt to almost triple.

Deloitte and investment bank Centerview Partners are already advising the troubled canned food company to try to work out what went wrong.

Due to this news, which came out in the last hour, shares in Campbell Soup have slipped 1.8% to $41.26.

Jeremy Hunt

UK foreign secretary clarifies comments after saying "we would regret" a no-deal "for generations".

Read more

Wall Street mixed on open

Wall Street
Getty Images

Wall Street shares have been mixed today on open, as rising crude oil prices offset losses in the Dow Jones and the S&P, but weak forecasts from chip makers dragged down the Nasdaq.

The Dow Jones Industrial Average is currently flat - only 1.2 points ahead to 25,559.95. The index is led by Walmart, which has risen an epic 9.3% to $98.64 after announcing a 40% rise in online sales in the second quarter of 2018 yesterday.

The S&P 500 however is 22.3 points or 0.8% up to 2,840.69. Top of the winners is also Walmart, followed by cyber-security firm Symanetc, which climbed 4.6% to $19.41 after it was announced that activist investor Starboard Value bought a 5.8% stake in the firm and is seeking five board seats.

And finally, the tech-heavy Nasdaq is down 14.7 points or 0.2% to 7,791.82. Chip equipment provider Applied Materials heads the losers, dropping 7.1% to $44.06 after forecasting profit and revenue below analysts' expectations due to a decrease in smartphone growth.

House of Fraser cancels all online orders

House of Fraser
Getty Images

House of Fraser will cancel all online orders and refund customers after a payment dispute with its warehouse operator delayed deliveries.

It follows an outcry from customers who had not received goods ordered online.

Warehouse operator XPO Logisticis is owed £30m and stopped processing orders last week because of the dispute.

Meanwhile, administrators revealed that hundreds of suppliers to House of Fraser were owed £753m but will not be repaid by its new owner, Sports Direct.

Good afternoon

A Big Issue seller accepting Apple Pay
Getty Images

Thanks Dearbail 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.

Don't have any change but want to donate to a worthy cause? Sellers of Big Issue, the homeless charity magazine, are now accepting Apple Pay in London.

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

Donald Trump tweets again....

US President Donald Trump is being quite chatty on Twitter today.

Following on from what he said earlier, here are more tweets about unemployment.

View more on twitter
View more on twitter

Waste not, want not

FTSE-listed waste company Biffa has paid £16.2m for Birmingham-based Weir Waste Services, a recycling provider in the West Midlands.

Its shares in London are currently up around 4.1% on the news.

Biffa said the purchase of Weir Waste, which has close to 1,600 customers and a fleet of 45 vehicles, will increase its footprint in Birmingham.

A Biffa rubbish truck in London
Getty

Trump may end quarterly reporting

Brace yourself - Trump has woken up and is tweeting:

View more on twitter

Italy set to punish Autostrade

Genoa bridge
Getty Images

The Italian government is determined to revoke the licence of toll road operator Autostrade per l'Italia following the collapse of a motorway bridge in Genoa this week, deputy prime minister Luigi Di Maio said.

"I am saying this clearly, there is a definite political will: we want to revoke the concession," he said on Facebook, reiterating comments made in a TV interview last night.

His remarks come after some other members of the coalition government said the administration could be considering less drastic action against Autostrade, such as a fine or only revoking the concession for the motorway that collapsed.

Lightbulb moment

Light bulb
Getty Images

Energy provider Bulb has secured £60m of investment from two private equity firms as it expands.

The cash is coming from DST Global and Magnetar Capital and will be used to "drive growth" and hire more staff.

Bulb chief executive Hayden Wood said: "We are delighted to have new investors on board ... the tech we've developed helps keep costs down, provides members with great service and helps them reduce their carbon emissions."

The company supplies more than 670,000 homes and has 200 staff, with the total expected to reach 250 by 2019.

Bulb was founded in 2015 by Mr Wood and Amit Gudka, a former energy trader at Barclays.

Down with the kids

The Office for National Statistics tweets:

Apple files stored by teen in 'hacky hack hack' folder

Aplle logo
Getty Images

A teenage boy from Australia has pleaded guilty to hacking into Apple's network and downloading internal files, according to reports.

The 16-year-old accessed 90 gigabytes worth of files, breaking into the system many times over the course of a year from his suburban home in Melbourne,reports The Age newspaper.

It says he stored the documents in a folder called 'hacky hack hack'.

Apple insists that no customer data was compromised.

Read the full story here.

Not so welcome...

Air France plane
Getty Images

Air France-KLM shares have sunk another 5% today after unions gave a frosty reception to the airline's new boss Benjamin Smith, while the airline's Dutch pilots threatened to strike over working conditions.

Unions were openly hostile to the appointment of the Air Canada chief operating officer, accusing the French group of handing control to a foreigner and not protecting Air France's interests.

Mr Smith, who joins next month, will have to contend with labour troubles at Air France that have already cost the airline €335m this year and resulted in the resignation of his predecessor.

Air France shares have fallen more than a third this year.

French unions are due to discuss another round of strike action later this month.

FTSE indexes reverse gains

London Stock Exchange
Reuters

The FTSE 100 has reversed earlier gains and is now trading down 0.17% at 7,543.71.

After a brief climb, the FTSE 250 is also lower, down 0.35% at 20,391.31.

Turkish lira falls on the dollar

Clothing shop in Turkey
Getty Images

The Turkish lira is currently 6.1 against the US dollar, down from 5.8 at the beginning of trading.

David Cheetham, chief market analyst at XTB, says: "After hitting its lowest ever level against the US dollar late on Sunday night, this week has seen a fairly good recovery in the Turkish Lira, with the currency rallying around 20% from its lows to yesterday high.

"Having said that, this has only seen price recover back to where it was last Friday morning before it crashed lower and plenty of downside risks remain.

"In the last couple of hours the Lira has come back under pressure, falling more than 7%, with a warning from the US that they may impose further sanctions nipping the recovery in the bud."

He says: "The measures implemented by the Turkish authorities thus far have been lacklustre and not really dealt with the underlying issue of runaway inflation in a satisfactory manner and it would be no surprise at all if there’s more pain ahead for Turkish assets."

Jigsaw removes stock from House of Fraser stores

Woman in Jigsaw dress
Jigsaw

Fashion chain Jigsaw says that it has its stock from our 20 concessions in House of Fraser.

Suppliers to the department store chain have been taking action as negotiations over payment continue.

Sports Direct is not legally obliged to pay suppliers money owed before its £90m buyout as their debts were part of the administration.

Tesla whistleblower claims company spies on its staff

Tesla electric car-charging points
Reuters

A former Tesla employee claims that the electric car-maker spies on its employees.

Karl Hansen has made a whistleblower complaint to the US Securities and Exchange Commission.

Tesla says it has investigated the claims: "Some of his claims are outright false. Others could not be corroborated."

Eurozone inflation hits 2.1%

Euro symbol
Getty Images

Eurozone inflation reached 2.1% in the year to July, according to Eurostat, the European statistics office.

It is above the 2% recorded for the 12 months to June.

Downgrade for Turkey?

CMC Markets chief market analyst Michael Hewson tweets:

Full-year loss at House of Fraser

Elsewhere in the creditors document about House of Fraser, administrators at EY said "the financial position of the group had deteriorated significantly over the last 12 months".

It said draft accounts for the year to 27 January 2018 indicated that House of Fraser made a pre-tax loss £4.1m and suffered a net cash outflow of £65m.

Six parties made offers for House of Fraser

House of Fraser
Getty Images

The documents published by House of Fraser's administrators at EY also show that six parties made formal offers for the department store chain before Sports Direct International went on to buy the business for £90m.

EY said the offers were assessed using a number of criteria, including "value, timing and deliverability".

Two were rejected on timing issues, as was a third "due to the time period required to conduct due diligence being too long".

Another party wanted to buy House of Fraser on a solvent basis for £1.

"However, this was conditional upon reaching an agreement with the group’s secured lenders to write off the vast majority of their loans, allow their priority ranking to be diluted and with the repayment of the remaining balance of their loans to be on deferred terms."

This bidder also proposed an offer to acquire House of Fraser and its assets from an insolvency sale at a price of £100m.

However: "During the evening of 9 August 2018, the party communicated that they could not justify the transaction commercially and they were withdrawing their interest."

EY said: "This then left the Sports Direct group offer as the best and only offer capable of being completed."

BreakingHouse of Fraser sales plunge

House of Fraser
PA

Like-for-like sales at House of Fraser fell by 7.7% in the 13 weeks to 28 April, according to documents published by the department store chain's administrators at accountancy firm EY.

Profit was £14.6m lower compared to the same period last year.