Joe Biden is to raise the possibility of a windfall tax on energy companies in a speech to Congress, just days ahead of midterm elections in the US.
His plan follows huge profits from the likes of oil giant Exxon Mobil, which last week posted a quarterly profit of more than $19bn.
Mr Biden has criticised the companies for not slashing petrol prices before.
The White House said Biden will deliver remarks to respond ”to reports over recent days of major oil companies making record-setting profits even as they refuse to help lower prices at the pump for the American people.”
A source told the newswire AP he will now float the idea of a tax on those profits in a bid to get them to lower prices and help him tackle inflation.
Read the latest updates below.
05:34 PM
Ukraine grain ships on the move despite breakdown of Black Sea deal
Ships have been taking grain from Ukrainian ports today, suggesting Russia may not have reimposed a threatened blockade, Reuters reports.
A record 354,500 tonnes of food left ports in the country on Monday, a spokesperson for Odessa’s military administration said.
Moscow suspended its membership of a UN grain deal on Saturday, stoking fears of soaring prices and famine, as Ukraine is a top export producer of wheat.
Russia’s withdrawal is thought to be linked to the destruction of the Kerch bridge which connects the country with Crimea earlier this month.
04:42 PM
Abrdn shares up as it completes half of its share buyback
Asset manager Abrdn has had a rare share bounce, up 2.75pc today, after announcing the results of a share buyback. This is where a company buys its own shares and cancels them, pushing up the stock price. Some investors consider it an odd move compared to a special dividend, but the stock already yields more than 9pc on that front.
The markets have not been kind to the money manager recently after it reported outflows of investor cash, with the shares down 38pc in the last 12 months.
Abrdn said it has so far bought half the £300m shares it set out to buy.
03:56 PM
Jaguar signs deal for smarter EV parts
Jaguar Land Rover has signed a deal with a computer chip maker to supply it with technology for electric car inverter, which manages power delivered from the battery to the motors, converting it from direct current to alternating current.
As lithium prices are high, the name of the game for electric car makers is efficiency, losing as little power to waste heat as possible.
Wolfspeed’s Silicon Carbide semiconductors have been used in Jaguar TCS Racing Formula E team’s in-house developed powertrains since 2017, JLR said.
Car makers are being extra careful to sign up to supply deals after the post-covid supply chain mess left them short of cheaper computer chips.
03:32 PM
Handing over
That’s all from me for today – thanks for following! Howard Mustoe will take things from here.
03:32 PM
Shares in engineer TP surge 180pc on takeover deal
Engineering business TP Group has agreed a £17.5m takeover by rival Science Group.
Shares in AIM-listed TP rocketed by over 180pc after it struck the deal following a year-long takeover battle with the Cambridge firm.
TP told shareholders that Science Group will pay 2.25p per share it does not already own. Science Group has steadily grown its stake in the rival since last year and now owns a roughly 27pc holding in TP.
Science Group said it does “not intend to make any material reduction to the headcount” at TP and said it has no plans to change operations at TP’s offices in Bristol, Portsmouth and Wincanton.
03:21 PM
Royal Mail makes new pay offer after strikes
Royal Mail has made a two-year pay offer worth 9pc after a string of walkouts by posties.
The company said it had made a conditional offer to the Communication Workers Union consisting of a 7pc salary increase over two years, plus a lump sum payment of 2pc of pay this year.
The offer is subject to agreeing a programme of change with the CWU, including changes to Sunday working, start times and flexible working.
But the CWU described the changes as “unacceptable” and said it would call further strike action.
02:40 PM
Wall Street opens lower as markets await Fed
Wall Street’s main indices have started the day on the back foot, capping a month dominated by mixed earnings reports and expectations of the US Federal Reserve toning down its hawkish stance on inflation.
The S&P 500 fell 0.5pc at the opening bell, while the Dow Jones was down 0.3pc. The Nasdaq dropped 0.7pc.
02:21 PM
Spotify demands Apple is investigated for blocking updates to its audiobooks streaming service
Spotify has called on Britain’s competition watchdog to investigate Apple’s decision to block updates to its new audiobooks service, writes Matthew Field.
The Swedish music streaming company met with the Competition and Markets Authority (CMA) to raise concerns after the iPhone maker rejected several new versions of Spotify’s music app, a source said.
Spotify, which is used by more than 450 million people, last month added audiobooks to its streaming service, where people can purchase recordings of books and listen to them in its music library.
However, it was forced to make multiple changes to the service in order to avoid paying a 30pc fee to Apple, which the iPhone maker charges for purchases through its app store.
An earlier version of the Spotify app emailed users a link to buy books, but did not allow them to buy them through its app.
Now, the app has no obvious instructions at all on how to purchase audiobooks. It tells subscribers: “Want to listen? You can’t buy audiobooks in the app. We know it’s not ideal.”
Spotify has said this is to avoid falling foul of Apple’s rules that force it to pay a 30pc fee on any purchases made in its iPhone’s App Store.
Last week, Spotify chief executive Daniel Ek accused Apple of “choking competition” and making its audiobooks product worse.
Read Matt’s full story here
02:08 PM
London black cab maker to cut 140 workers
The maker of London’s battery-powered black cabs is planning to cut up to 140 jobs in the UK amid a slump in demand.
London Electric Vehicle Company, owned by China’s Geely, said its voluntary redundancy programme was part of a series of measures to return to “sustainable profitability and growth” after the pandemic and disruption to supply chains.
LEVC employed about 550 workers at the end of 2021, according to company filings. If those numbers held steady, the cuts would represent about a quarter of the workforce.
01:51 PM
Pound slumps 1pc against dollar
Sterling has extended its losses against a stronger dollar as markets look ahead to interest rate decisions later this week.
The pound fell more than 1pc to dip below $1.15.
Markets are expecting another big interest rate rise by the Federal Reserve when it meets on Wednesday. The Bank of England is also expected to raise rates on Thursday, but some analysts think it may take a more cautious approach.
Adding to pressure on the pound, the Met Office’s warning of a colder than usual winter has fuelled fears of a looming energy crisis.
01:26 PM
Elon Musk tells EU chief he’ll comply with regulations
Elon Musk is said to have assured the EU that Twitter will continue to abide by tough rules on illegal online content policing now the social network has passed under his ownership.
Mr Musk told Thierry Breton, the EU’s industry chief, that he planned to comply with the region’s Digital Services Act, which levies hefty fines on companies if they do not control illegal content, Reuters reports.
The self-described free speech absolutist agreed to hold a meeting with Mr Breton, a former French finance minister, in the coming weeks.
The exchange came after the EU chief took to Twitter to warn the world’s richest person about the new European legislation on Friday, writing: “In Europe, the bird will fly by our EU rules.”
01:16 PM
Rishi Sunak and Jeremy Hunt meet to discuss Budget
Rishi Sunak has met Chancellor Rishi Sunak to discuss the autumn statement that will be unveiled on November 17.
The Treasury said the pair acknowledged that tough decisions will need to be taken. It’s not the first time we’ve heard that line, so it seems the Government is managing expectations ahead of the Budget…
01:07 PM
‘Uli the knife’: the man tasked with saving Credit Suisse
Ulrich Koerner, Credit Suisse’s new chief executive, has a reputation to uphold, writes Simon Foy.
Known as “Uli the knife”, the German-Swiss national has a penchant for implementing brutal cost-cutting drives.
On Thursday, he began his latest offensive at the embattled Swiss lender, which has lurched from one crisis to another for nearly two years.
Read Simon’s full story here
12:27 PM
Rishi Sunak may attend COP27 after backlash
Rishi Sunak may attend the COP27 climate summit following a backlash over his decision to pull out.
The Prime Minister’s spokesman said his attendance would depend on progress made in preparations for the autumn statement on November 17.
Mr Sunak had previously said he wouldn’t attend the UN summit “due to other pressing domestic commitments including preparations for the autumn Budget”.
But the move prompted criticism and questions over the PM’s commitment to climate issues, including from Tory MP Alok Sharma, who was president of COP26 in the UK.
12:11 PM
US futures fall with rates in focus
US futures have lost ground at the start of another busy week of earnings and central bank meetings.
Wall Street has enjoyed its strongest two-week rally since November 2020, but traders were cautious ahead of another expected interest rate rise by the Federal Reserve.
Futures tracking the S&P 500 fell 0.3pc, while the Dow Jones was down 0.2pc. The tech-heavy Nasdaq lost 0.4pc.
11:54 AM
NatWest rebounds as Goldman says sell-off ‘overdone’
NatWest shares have pushed as much as 3.9pc higher this morning after Goldman Sachs branded last week’s drop “overdone”.
The bank slumped 9.2pc on Friday after reporting third-quarter operating profit that missed estimates and warned of more gloom to come.
Goldman reiterated its buy rating, with analyst Martin Leitgeb saying he expected a continued step-up in interest margins and income.
NatWest is also getting a boost alongside other banking stocks this morning following reports the Government is likely to pursue more windfall taxes on the sector.
11:33 AM
Britishvolt to collapse into administration ‘as soon as today’
Struggling UK battery start-up will reportedly collapse into administration as soon as today after it failed to secure additional funding.
The company, which has been developing a £3.8bn gigafactory in north-east England, has held emergency funding talks for weeks after burning through its cash pile.
It had been sounding out potential suitors including Jaguar Land Rover owner Tata Motors over a £200m cash raise or outright sale.
But the discussions have ended without a deal, the Financial Times reports, forcing Britishvolt to enter administration.
11:15 AM
UK winter to be colder than normal, warns Met Office
We don’t usually do weather forecasts on the business blog, but there’s a first time for everything…
The Met Office has warned the UK is facing a colder winter than normal – a prediction that will fuel fears of higher demand for heating amid a deepening energy crisis.
There’s a 25pc chance the season will be cold, 60pc chance of it being near average and just a 15pc chance it will be mild, according to the Met Office’s three-month outlook.
It added: “The likelihood of a colder three-month period overall is slightly greater than normal.”
The weather is quickly becoming a major factor in the energy crisis, with an unusually warm October helping to keep gas demand in check and pushing back the start of the heating season.
This has allowed countries across Europe to fill up gas storage sites, creating a safety buffer that could be vital when temperatures do drop.
11:06 AM
Elon Musk planning to charge celebrities $20 per month to keep Twitter blue tick
Elon Musk plots to charge celebrities and influencers $20 (£17.30) per month to keep their ‘blue tick’ status symbol on Twitter, writes Matthew Field.
The new owner has ordered the social media platform’s engineers to prepare a rework of the company’s subscription product, Twitter Blue, within a week or face the sack.
Mr Musk has also asked for changes to how Twitter handles verifying its users.
The Tesla chief executive said on Sunday: “The whole verification process is being revamped right now.”
Twitter could begin charging users up to $20 per month, four times the present $4.99 cost of its optional subscription service, technology news site The Verge reported. Twitter did not respond to a request for comment.
The major change in how Twitter operates comes just three days after Mr Musk acquired Twitter in a $44bn deal, sacked its senior executives and installed himself as “chief Twit”.
Read Matt’s full story here
10:49 AM
A third of UK hospitality businesses could go bust, industry warns
Over a third of the UK’s hospitality industry is at risk of going bust early next year due to soaring energy bills, higher prices and falling consumer spending.
That’s according to a survey by UKHospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster, which showed 35pc of respondents were expecting to be operating at a loss or to be unviable by the end of this year.
More than three-quarters of companies have noticed a decrease in people eating and drinking out. 85pc expect the situation to worsen and 89pc are either not confident or are pessimistic that the current levels of support offered by Government will protect the industry.
Hospitality firms said continued uncertainty about rising inflation, future regulation and staffing is causing a crisis of confidence among business owners.
They called for further business rates relief and move to cut VAT sales tax for hospitality ahead of Chancellor Jeremy Hunt’s fiscal statement on November 17.
They added: “If urgent action isn’t taken, it is looking incredibly likely that we will lose a significant chunk of Britain’s iconic hospitality sector in the coming weeks and months.”
10:16 AM
Brits cut back on borrowing as interest rates rise
British consumers and businesses cut back on borrowing after a jump in interest rates made credit more expensive.
New mortgage approvals tumbled 10pc last month – the sharpest decline since February 2021 – while credit card borrowing and business loans also fell, according to Bank of England figures.
The numbers show how the central bank’s interest rate rises are starting to rein in activity in the economy, which may already be in recession.
New mortgage approvals fell to 66,789 from 74,422 in August. The effective rate on new home loans rose 29 basis points to 2.84pc, the biggest month increase since December 2021, when the Bank started raising rates.
Credit card borrowing fell to £78m in September from around £700m the previous month as the cost-of-living crisis prompted consumers to tighten the purse strings.
Businesses also scaled back borrowing in September, with non-financial businesses borrowing £2.6bn in September, down from £7.6bn in August.
10:03 AM
Gas prices fall as warm weather keeps a lid on demand
Natural gas prices fell this morning after two days of gains as unseasonably warm weather keeps demand at bay.
Above-normal temperatures have delayed demand for heating, allowing countries to continue to funnel gas into storage sites.
Strong inflows of liquefied natural gas and lower consumption by industries are also creating a sudden glut in Europe. Futures for December delivery declined by as much as 6.5pc.
While the full reserves will provide a buffer for when temperatures inevitably fall, restocking will be harder for next winter in the absence of the usual supplies from Russia.
09:46 AM
Bank of England pushes back gilts auction to avoid Budget clash
The Bank of England confirmed its first asset sales from quantitative easing will start on November 1, but delayed the fourth auction to avoid a clash with the upcoming Budget.
The central bank, which has bought up almost £838bn of UK government bonds over more than a decade, said its first sales will kick off at 2.15pm tomorrow and offer £750m of short-dated gilts.
The second sale was scheduled for November 17 – the date Chancellor Jeremy Hunt picked to deliver his autumn statement. That will include detailed forecasts for the public finances and probably an updated schedule of sales from the Debt Management Office.
The Bank will hold an auction on November 24 instead.
09:28 AM
Halloween: Scary economic charts to spook investors
Samuel Tombs is getting into the spirit of things with a Halloween round-up of five terrifying charts about the UK economy.
From mortgages rates to unemployment and spending cuts, there’s enough here to get even the most bullish investors spooked…
09:14 AM
Just Stop Oil targets Bank of England
Just Stop Oil campaigners have sprayed paint over the Bank of England as a wave of protests continues.
Photos shared on Twitter show protests at Threadneedle Street, as well as at the Home Office, the MI5 building and Rupert Murdoch’s News UK.
09:03 AM
Pound falls ahead of Bank of England decision
Sterling has lost ground against a stronger dollar as markets shift their focus away from political turmoil and back to interest rates.
The Bank of England is set to begin its quantitative tightening programme tomorrow and will make its decision on interest rates on Thursday.
The Federal Reserve is also poised to raise rates on Wednesday as central banks struggle to keep a lid on inflation.
The pound fell 0.4pc against the dollar to $1.1567. Against the euro it was little changed at 85.78p.
08:50 AM
Struggling energy suppliers thrown financial lifeline in boost for Rishi Sunak
ICYMI – Struggling household energy suppliers have been thrown a financial lifeline by a key player in the market, reducing the risk that taxpayer bailouts will be needed in a boost for Rishi Sunak.
Rachel Millard reports:
Elexon, which manages the electricity trades that keep Britain’s lights on, has significantly cut the size of the deposits it requires suppliers to offer for power plants when they order electricity in advance.
The reduction was triggered by a sharp fall in gas prices owing to high storage levels and mild weather across Europe, and will ease pressure on cash-strapped suppliers after months of turmoil.
It also means suppliers are less likely to tap up a taxpayer-backed scheme set up by the Treasury and Bank of England to prevent them from running out of cash.
Signs that the market is stabilising will be welcomed by the Prime Minister and Treasury as they prepare to announce up to £50bn of tax rises and spending cuts next month to bring order to the public finances.
Read Rachel’s full story here
08:39 AM
EasyJet rises on IAG takeover reports
EasyJet is another winner this morning amid reports British Airways’ parent company is renewing plans to consolidate the sector.
Speculation is mounting that IAG could look to acquire smaller rivals such as easyJet or Portugal’s TAP, according to the Times.
Separately, Liberum raised its outlook for the budget airline, saying: “We see scope for optimism given that strong pent-up demand could outweigh modest recessionary headwinds.”
Shares in easyJet rose more than 5pc.
08:30 AM
FTSE risers and fallers
The FTSE 100 has dipped in early trading, weighed down by losses for commodity-linked stocks.
The blue-chip index slipped as much as 0.1pc after a tentative start to the day.
Energy and mining shares were the biggest laggards, with Harbour Energy, Shell and Glencore posting the biggest declines as commodity prices fell on weaker-than-expected China factory activity data.
Banking stocks bucked the trend, with NatWest and Lloyds among the biggest gainers following reports the Government won’t pursue further windfall taxes on lenders.
The domestically-focused FTSE 250 was up 0.2pc. International Distribution Services, owner of Royal Mail, jumped 7.9pc after the UK cleared a potential state increase by a Czech billionaire.
08:21 AM
Banking stocks rise as windfall tax fears subside
Shares in UK banks have made gains this morning following reports the Government is unlikely to pursue further windfall taxes on banking profits.
Speculation had been mounting that lenders could face a windfall levy similar to the one rolled out for energy companies after they cashed in on higher interest rates.
But talks will now focus on sticking to previous plans to raise general corporation tax, while lowering an existing 8pc levy on bank profits, the Sunday Times reported, citing government sources.
NatWest led the gains, rising as much as 3.5pc. Lloyds, Barclays and Virgin Money also rose in early trading.
08:13 AM
BT’s Openreach holds talks to lower wholesale costs
BT’s infrastructure division Openreach is said to be in talks to offer lower-cost deals to internet service providers to use its network across the UK.
The company would offer a lower headline cost that doesn’t include volume commitments for sellers.
Companies including Vodafone, TalkTalk and Sky sell their internet services using Openreach’s full-fibre network.
A spokesman said: “We’re in constant discussion with the retail providers about potential offers and options.”
The new offer, dubbed Equinox 2 and first reported by the Financial Times, could lower retail prices and accelerate the shift from older copper connections to modern full-fibre broadband.
08:03 AM
FTSE 100 opens flat
The FTSE 100 is treading water at the opening bell, with focus back on interest rates ahead of meetings of the Federal Reser and Bank of England this week.
The blue-chip index is wavering at 7,049 points.
07:55 AM
UK clears Czech billionaire’s Royal Mail stake
The Government won’t take any further action over potential plans by a billionaire investor known as the “Czech sphinx” to increase his stake in Royal Mail.
Kwasi Kwarteng, former Business Secretary, had called in the deal under new national security laws amid concerns Daniel Kretinsky could control more than a quarter of the company.
However, the Government has said it won’t take any further action.
Mr Kretinsky currently holds 22pc of Royal Mail shares worth £150m through his private equity firm Vesa Equity Investment.
The tycoon is a major investor in West Ham United football club and holds stakes in French newspaper Le Monde, as well as retail giants Sainsbury’s and Macy’s.
07:45 AM
Asda completes £600m Co-op petrol station deal
Asda has confirmed the completion of its £600m deal to buy Co-op’s petrol forecourt business.
In August, Co-op first revealed plans to sell its 132 petrol stations and attached convenience stores in a bid to bolster its finances.
Asda said the deal, which is part of its plans to rapidly grow into the convenience market, will see 2,300 workers move over from Co-op to the supermarket group.
Mohsin Issa, co-owner of Asda, said:
We are delighted to formally complete the transaction that we announced in August and taking the next step on our journey to creating a new and exciting part of our Asda business.
As millions of families deal with the day-to-day impacts of increasing costs of living, we’re committed to bringing Asda’s great-value groceries and fuel to even more communities across the UK through these new stores.
We look forward to working collaboratively with the CMA on their investigation and to welcoming our new Asda colleagues to our great business in the coming months.
07:35 AM
Energy bills support will bring down inflation, says ONS
The Government’s scheme to help consumers and businesses with energy bills will reduce the headline inflation rate, the ONS has said.
The statistics body said it will take into account the capped price of energy that consumers pay instead of the total price when it calculates its consumer prices index.
This means the figure for inflation – currently at a 40-year high in double digits – will be lower than it otherwise would have been.
Producer price inflation will also be lower, the ONS said.
07:29 AM
Tesla ‘held discussions’ over Glencore stake
Tesla is said to have held talks about taking a stake in Glencore, in a sign of how electric vehicle makers are trying to build ties with the commodities sector.
Elon Musk’s company held preliminary discussions about buying a stake of between 10pc and 20pc in the Swiss mining giant, the Financial Times reports.
The talks continued into March, when Glencore boss Gary Nagle visited Tesla’s factory in California, but ended without a deal. Tesla reportedly had concerns over whether Glencore’s coal mining business was compatible with its environmental goals.
07:16 AM
US throws out charges against Libor ‘rigger’
A US judge has thrown out charges against Tom Hayes, a former trader sentenced to jail for “rigging” the Libor interest rate.
Mr Hayes, a former UBS employee, was tried in both the US and the UK. He was sentenced to 14 years in prison, reduced on appeal to 11.
But US courts ruled the prosecutions were misconceived, with the convictions of two former Deutsche Bank traders for the same offence also overturned.
Mr Hayes told the BBC: “I’m ecstatic to get this decision. It feels almost like I’m in a dream.”
But the former trader is still battling to get his UK conviction overturned. He served his full jail tariff in the UK of five and a half years and was released in 2021.
07:04 AM
Business confidence drops to lowest since lockdown
UK business confidence has slumped to its lowest since the depths of lockdown in March 2021, despite some firms expecting an improvement in their trading prospects.
That’s according to Lloyds’ business barometer, which said confidence fell one point to 15pc in October.
The number of employers expecting to increase staffing levels rose for the first time in five months, while almost half of companies also reported a better outlook.
Paul Gordon at Lloyds said:
While confidence has marginally decreased this month, this also comes at a time of great economic uncertainty. As we head into the winter months, energy price increases will start to bite, and we are seeing continued pressure on pay expectations.
06:51 AM
Good morning
Commodities are back on the agenda this morning after Russia pulled out of a key deal allowing grain to be exported from Ukraine.
Putin suspended the Black Sea deal on Saturday, claiming that drone strikes on its navy might have come from a grain ship involved in the agreement.
This reignited fears of shortages and global hunger, pushing up wheat prices as much as 7.7pc.
5 things to start your day
1) First cross-country driverless trains to operate on HS2: Plans emerge as Michael Gove hints the £71bn line could be axed
2) Sacked Twitter executives at risk of being denied $90m payout by Elon Musk: Billionaire reportedly dismissed top staff including chief executive ‘for cause’, suggesting they will not be entitled to golden goodbyes
3) Tobacco giants help fund Putin’s war machine with £7bn in taxes: Cigarette companies continue to be important source of income for Kremlin coffers
4) Silicon Valley elite stalked by fears of mass layoffs: The era of napping pods, gourmet lunches and free Ubers could be over for many Big Tech companies
5) ‘Uli the knife’: the man tasked with saving Credit Suisse: Scandal-hit lender hopes Ulrich Koerner will reverse its fortunes
What happened overnight
Hong Kong stocks fell at the open Monday, extending recent losses as investors await a key policy meeting of the Federal Reserve later in the week.
The Hang Seng Index dipped 0.22pc to 14,830.69, the Shanghai Composite Index lost 0.79pc to 2,893.01, while the Shenzhen Composite Index on China’s second exchange also dropped 0.79pc to 1,864.33.
Tokyo stocks opened higher, extending Wall Street rallies led by big gains from Apple. The benchmark Nikkei 225 index was up 1.17pc at 27,423.59 in early trade and the broader Topix index was up 1.01pc, or 19.22 points, at 1,918.27.
The dollar fetched 147.97 yen in early trading, up from 147.46 yen in New York on Friday.
