Closing summary
Time for a recap before we close for today.
News broke in the last hour that the boss of WeightWatchers has stepped down, as the company struggles to compete with new weight loss drugs such as Ozempic, Wegovy and Zepbound.
Sima Sistani has quit with immediate effect, and board member Tara Comonte will step in as interim chief executive.
US annual inflation, measured by the Federal Reserve’s preferred measure, has fallen more than expected to the lowest level since February 2021, boosting expectations of further interest rate cuts.
The personal consumption expenditures price index, a measure the Fed focuses on to gauge inflation pressures in the US economy, rose by 0.1% in August from July, taking the 12-month inflation rate to 2.2%, from 2.5% in July, the US Commerce Department said. Economists had expected an annual rate of 2.3%.
However, the core measure, which excludes volatile items food and energy, ticked up to 2.7% last month. Fed officials tend to focus on the core measure as a better gauge of long-run trends.
Chinese stocks have had their best week in 16 years, boosted by various stimulus measures announced this week by the Beijing government and People’s Bank of China.
The Shanghai Composite Index climbed by 2.9%, logging its biggest weekly gain since 2008, up nearly 10% while China’s CSI 300 jumped by 4.5% and had its best week since November 2008, ending 15.7% higher.
Hong Kong’s Hang Seng index rose by 3.6% and enjoyed its best week since 1998 with a 13% gain, which was the third-biggest move on record.
The optimism in Asia spilled over into Europe, where the benchmark Stoxx 600 index rose by 0.37% to touch an all-time high.
Rupert Murdoch’s REA Group has made a fourth attempt to buy Rightmove, increasing its offer to £6.2bn as it steps up its pursuit of the UK’s largest online property portal.
The Australian property group, which is controlled by News Corp, raised its cash and shares offer from the £6.1bn offered earlier this week and called on Rightmove’s board to “engage now” after it repeatedly refused to meet the suitor.
Rightmove has rejected three previous non-binding cash and shares approaches from REA this month, calling them “unattractive” and saying the offers “fundamentally undervalue” the company. In a brief statement, the UK firm said it would consider the latest proposal.
Thank you for reading, and have a lovely weekend. Take care – JK
Updated
Rightmove says it will consider REA's latest offer
Rightmove has confirmed that it has received a “fourth unsolicited, non-binding and highly conditional proposal” from Rupert Murdoch’s REA Group for a £6.2bn takeover of the UK property portal.
The board will consider the latest proposal together with its financial advisers and, in the meantime, shareholders are urged to take no action.
There can be no certainty that any offer will be made for the company nor as to the terms on which any offer may be made.
Amazon's $4bn partnership with AI firm Anthropic cleared by CMA
Amazon’s $4bn partnership with AI firm Anthropic has been cleared by the UK’s competition regulator.
The Competition and Markets Authority (CMA) said the deal does not need further investigation, after carrying out a phase 1 probe into concerns about its impact on competition in the AI sector.
The watchdog has been vocal about its concerns over large tech firms investing heavily in AI start-ups, and earlier this year highlighted a number of what it called an “interconnected web” of more than 90 partnerships and strategic investments between a small handful of the biggest tech and AI firms.
It has since launched a number of investigations into similar partnerships.
Writing on LinkedIn, Joel Bamford, executive director of mergers at the CMA, said:
Reviews like this help us to gain more clarity around whether they could fall under UK merger rules and any subsequent impact they could have on competition, and we hope that this clarity also benefits businesses with an interest in these markets.
Our investigation into Amazon’s partnership with Anthropic found that Amazon’s $4bn investment into Anthropic allowed it to enter multiple non-exclusive arrangements with Anthropic and secure certain rights in connection with its investment.
Having tested these arrangements against the UK merger control jurisdiction thresholds for turnover and share of supply, we have concluded that they are not met. We also considered whether the arrangements allowed Amazon to exercise material influence over Anthropic.
Ultimately, given neither of the required turnover or share of supply tests were met, we did not need to reach a conclusion on material influence.
As a result, we do not believe that a relevant merger situation has been created and will not refer this for further investigation.
An Amazon spokesperson welcomed the regulator’s decision, and added:
By investing in Anthropic, we’re helping to spur entry and competition in generative AI. Customers are very excited about the opportunities this collaboration is providing them.
An Anthrophic spokesperson also welcomed the move.
As we’ve made clear, Anthropic is an independent company and our strategic partnerships and investor relationships do not diminish our corporate governance independence or our freedom to partner with others.
Separate investigations into partnerships between Google and Anthropic and Microsoft and ChatGPT maker OpenAI remain ongoing, the CMA said.
Manchester launches first phase of £1.7bn hub for science and tech firms
The news came as Manchester launched the first phase of a £1.7bn hub for science and technology companies, a project driven by university and private sector investors.
The ‘Sister’ innovation district on the University of Manchester‘s former city centre North Campus will have 2m square feet (186,000 sq m) of commercial space and 1,500 new homes, and aims to boost the city’s status as a science and technology centre.
University cities like Oxford, Cambridge and Manchester have been creating hubs where investors can be on hand to partner with start-up companies, a trend the new Labour government is keen on to attract more private investment to help upgrade the UK’s public services and infrastructure.
The 15-year project Sister project is a joint venture between the University of Manchester and Bruntwood SciTech, a development company owned by property firm Bruntwood, the pension and investment group Legal and General and the Greater Manchester Pension Fund, and will see a total investment value of £1.7bn on completion.
The first tenant, climate tech investment company Sustainable Ventures, moves into the site’s Renold Building this November.
“This is a significant moment for Manchester,” said Bev Craig, leader of Manchester City Council.
Sister forms part of the government-funded Greater Manchester Investment Zone, which uses £160m of public money to help attract businesses to the city over the next decade.
Graphene implant used for first time in brain tumour op
A brain implant made from graphene was used successfully during brain tumour surgery at Salford Royal Hospital, to help the medical team cut out the tumour without damaging healthy tissue.
It was the first human procedure involving a graphene brain implant, which allows the surgeon to distinguish between healthy and cancerous brain tissue with micrometer-scale precision. The procedure, carried out yesterday, was successful and the device was on the patient’s brain for 79 minutes.
It was the start of a clinical study of the device, made by InBrain Neuroelectronics, a Barcelona-based company which developed the implant with the Catalan Institute of Nanoscience and Nanotechnology and Manchester University.
During the trial, the medical team at Salford Royal hospital places the device with 64 graphene electrodes on the brain of a patient with glioblastoma, a fast-growing brain cancer. It will stimulate and read neural activity with high precision so that other parts of the brain are not damaged when the cancer is cut out. The implant is removed after surgery.
FDA approval of schizophrenia drug lifts shares in PureTech, Bristol Myers Squibb
Among other stocks, Bristol Myers Squibb is up 3.5% in pre-market trading, after the US health regulator, the Food and Drug Administration (FDA), approved its schizophrenia drug.
That drug was developed by a smaller Boston-based biotech called PureTech Health, which was founded by Daphne Zohar, an American entrepreneur, in 2005 and listed on the London stock market in 2015.
The FTSE 250-listed shares jumped more than 5% on news of the FDA approval, which triggered $29m in milestone payments for PureTech.
The drug was hailed by PureTech as a significant breakthrough for schizophrenia patients, as the first new drug mechanism to be approved in more than 50 years. Currently called KarXT, it will be marketed as Cobenfy by Bristol Myers Squibb, which bought it for $14bn earlier this year.
The medicine was invented at PureTech by combining two biologically active molecules – xanomeline and trospium chloride, to address a tolerability challenge that had held back a potential new class of medicines for neuropsychiatric conditions.
Eric Elenko, co-founder and president of PureTech said:
Our initial hypothesis was that we could overcome the tolerability issues that had hindered the development of an otherwise promising drug, xanomeline, and we were able to test and validate this concept early on.
We are immensely proud that our dedication to this programme has led to the first major innovation in decades for those living with schizophrenia, and I am equally pleased that our unique approach to R&D has delivered yet another novel therapeutic to patients.
Wall Street is set to open slightly higher after the inflation data. The S&P 500, Dow Jones and tech-heavy Nasdaq are on track for their third straight week of gains.
The PCE price index in the US increased 2.2% year-on-year in August 2024, the lowest since February 2021, compared to 2.5% in July and below forecasts of 2.3%.https://t.co/gTyntlo82C pic.twitter.com/kqReQcsxSC
— TRADING ECONOMICS (@tEconomics) September 27, 2024
Updated
Key Fed inflation gauge at 2.2% in August, lower than expected
US annual inflation, measured by the Federal Reserve’s preferred measure, has fallen more than expected to the lowest level since February 2021, boosting expectations of further interest rate cuts.
The personal consumption expenditures price index, a measure the Fed focuses on to gauge inflation pressures in the US economy, rose by 0.1% in August from July, taking the 12-month inflation rate to 2.2%, from 2.5% in July, the US Commerce Department said. Economists had expected an annual rate of 2.3%.
However, the core measure, which excludes volatile items food and energy, ticked up to 2.7% last month. Fed officials tend to focus on the core measure as a better gauge of long-run trends.
Jesse Cohen, global markets economist at Investing.com, said:
🚨Just In: August US PCE annual inflation rises 2.2%, below expectations for 2.3%.
— Jesse Cohen (@JesseCohenInv) September 27, 2024
That's the lowest since February 2021.
Core PCE inflation increased 2.7% Y/Y, in line with forecasts.
The cool inflation data supports another 50bps rate cut in November. pic.twitter.com/zw1gzuzTiT
Updated
UK supermarkets not doing enough to tackle antibiotic misuse, report says
None of the UK’s large supermarket chains are ensuring their suppliers use antibiotics in the most responsible way, an assessment by campaigners has found, despite heightened concerns about their overuse in farm animals.
Supermarkets play an important role in the fight against superbugs, because most of the world’s antibiotics are used on livestock and retailers can enforce strict standards on the farm suppliers they use. Resistant bacteria known as superbugs are rapidly developing, posing an increasing risk to human health.
But livestock farmers have an incentive to use more antibiotics on their herds, because intensive farming conditions can lead to an increased risk of disease. In some countries, antibiotics are used routinely, to promote growth as well as treat diseases that otherwise run rife in intensive systems.
In the UK, new regulations were introduced this year to restrict the use of antibiotics in farming, as British farmers are no longer covered by strict EU rules. The law stipulates that antibiotics must not be used to compensate for poor hygiene or inadequate animal husbandry.
‘He knew what Mohamed was doing’: Fayed security chief accused of facilitating abuse
It was May 1991 and Mohamed Al Fayed was in a foul mood: “I told you, no sex with anybody else, no relationship with anybody else.”
The target of the then 62-year-old billionaire’s ire was Jen, 20, who had worked in his personal office at Harrods since the age of 16.
“I said: ‘What do you mean?’ He proceeded to list a whole bunch of times, places, dates, where I’d been seen with my boyfriend from the food hall, and these weren’t necessarily during the week. They were at weekends. They weren’t necessarily in London. They were in Surrey.
“The dates were very, very specific, the locations and everything was 100% accurate. Mohamed said to me: ‘You do know that John Macnamara [Fayed’s head of security] worked for the Met police. He was very senior in the Met police.’”
Over her four and a half years at Harrods, having joined the luxury store in Knightsbridge as a management trainee in 1986, Jen claims to have been repeatedly groped and sexually assaulted – and at one point strangled – by Fayed.
It started with him “teasing” her with a dildo he kept on his desk and built up to an alleged attempted rape in Fayed’s Park Lane apartment, she said.
Calls for regulation of gambling ads in football as number of promotions soars
Ministers have been urged to intervene to stop football clubs from setting their own rules on curbing gambling advertising, after research showed Premier League fans were bombarded with nearly 30,000 gambling messages on a single weekend.
Clubs in the top flight have so far avoided compulsory restrictions on gambling sponsorship, instead addressing public concern through voluntary measures such as a ban on front-of-shirt logos, starting in 2026.
But politicians, researchers and England’s most capped men’s player, Peter Shilton, called on the government to act after a new study found a surge in gambling ads which they said exposed the “woeful inadequacies” of allowing clubs and gambling operators to set their own rules.
Fans keeping track of the opening weekend of the Premier League season last month were flooded with 29,145 gambling messages on TV, radio and social media during six live games, according to analysis by researchers at the University of Bristol.
Rachel Reeves reconsiders end to non-dom tax status over OBR forecast fears
Rachel Reeves is rethinking parts of Labour’s crackdown on non-dom tax status over concerns that the plans will not raise any money.
The chancellor is reassessing the government’s manifesto promise to close loopholes in the non-domiciled tax regime.
The Guardian revealed this week that Treasury officials feared the spending watchdog was due to conclude the policy would fail to raise any money, because of the impact of super-rich non-domiciles leaving the UK.
Reeves is now reconsidering the plans, according to reports. A government official told the Financial Times: “We are looking at the details of our proposals. We will be pragmatic, not ideological. We won’t press on regardless, but we are not going to abandon this completely.”
After the Conservatives unexpectedly announced plans to phase out the non-dom regime, Labour said it hoped to raise a further £2.6bn over the course of a parliament by clamping down on loopholes.
The party later predicted that closing these loopholes could raise an initial £1bn in the first year, which would be put towards funding universal school breakfast clubs and more hospital and dental appointments.
Labour urged to scrap UK road schemes such as £9bn Lower Thames Crossing
Campaign groups have urged the government to cancel major road building schemes including the Lower Thames Crossing, amid growing speculation that ministers could divert money earmarked for new roads into rail and other public transport.
The transport secretary, Louise Haigh, is due to decide in a week whether to sign off a development consent order [DCO] for the £9bn road crossing linking Essex and Kent.
Labour has already made clear that it is looking to fill what the chancellor has described as a “£22bn black hole” in the nation’s finances.
While Rachel Reeves, the chancellor, has said she backs building infrastructure, the road schemes are poor value for money according to Treasury calculations, and could free up funding for rail projects.
Tesla home checks on workers on sick leave defended by boss in Germany
The boss of a Tesla factory in Germany has defended the decision to send managers to the homes of workers on long-term sick leave.
In recent weeks, a director of Tesla’s electric car plant in east Germany sent managers to check up on about two dozen employees who have continued to be paid while being on sick leave over the past nine months.
André Thierig, the plant’s manufacturing director, said the home visits were common practice in the industry and that the company simply wanted to “appeal to the employees’ work ethic”.
The move by Elon Musk’s US-headquartered carmaker has sparked outrage at the trade union IG Metall, which represents a proportion of the 12,000 workers at the Berlin-Brandenburg gigafactory.
The union has campaigned against what it has alleged are harsh working conditions with “unreasonably” long hours and a poor health and safety record.
“Employees from almost all areas of the factory have reported an extremely high workload,” said Dirk Schulze, a regional director at the union. “When there are staff shortages, the ill workers are put under pressure and those who remain healthy are overburdened with additional work.
“If the factory’s overseers really want to reduce the level of sickness, they should break this vicious circle.”
Sick leave rates at the factory on the outskirts of Berlin, which the union says operates with a “culture of fear”, have commonly hit 15% or higher.
The union has said that there is a “culture of fear” that has caused stress and sick leave among workers.
How Rachel Reeves could release billions more for investment in the budget
On the subject of next month’s budget, the chancellor, Rachel Reeves, is considering changes to the government’s so-called fiscal rules, which govern how much it can spend.
The changes are aimed at paving the way for billions of pounds more investment in the UK economy, to help decarbonise the economy and reboot growth.
Reeves signalled the change in direction in her speech to the Labour party conference on Monday, saying “it is time that the Treasury moved on from just counting the costs of investments to recognising the benefits too”.
But with government debt running at 100% of GDP, and a total debt pile of £2.5tn, there are questions over how far Reeves could go.
UK retailers report fastest growth since May – CBI
British retailers reported the fastest growth in sales since May this month, and expect a further improvement in October, according to the Confederation of British Industry’s latest survey – which contrasts with other, more downbeat surveys of consumer sentiment.
The CBI said its monthly retail sales balance, which deducts retailers who said their sales rose from those reporting a decline, improved to +4% in September from -27% in August. Retailers’ expectations for the month ahead improved to +5% from -17%, and were the strongest since April 2023.
Internet sales volumes bounced back at the fastest rate since June 2023 (+18% from -15% in August). Online sales are expected to grow at an even faster pace in October (+35%).
However, sales are still likely to remain below normal for the time of year, retailers indicated.
Martin Sartorius, the CBI’s principal economist, said:
After a challenging summer, retailers will welcome the modest growth in annual sales volumes this month. While some firms within the retail sector are beginning to see tailwinds from rising household incomes, others report that consumer spending habits are still being affected by the increase in prices over the last few years.
In contrast to the recovery seen in the retail sector, wholesalers and motor traders continue to see a decline in sales volumes, with businesses reporting concerns about a slow and uncertain market.
Ahead of the budget at the end of this month, he said
Retailers, alongside a host of other important sectors, are keen to see the government take long overdue action to address an antiquated business rates system that has become too complex, too unpredictable and is, ultimately, unfair on many firms.
Cbi Distributive Trades in the United Kingdom increased to 4 Net Balance in September from -27 Net Balance in August of 2024.https://t.co/eN7RNV1reg pic.twitter.com/uRue0pqxG4
— TRADING ECONOMICS (@tEconomics) September 27, 2024
UK government acquires semiconductor factory near Darlington
UK defence chiefs have taken over a semiconductor factory near Darlington after fears its closure could leave projects in the lurch.
Defence Secretary John Healey visited the site today, which the Ministry of Defence says is the only secure facility with the capability to produce gallium arsenide chips, used in electronic devices, including to boost fighter jet capabilities.
The factory, at Newton Aycliffe in County Durham, has been acquired from its previous parent company Coherent, and will be called Octric Semiconductors UK, and the acquisition will secure up to 100 jobs, the MoD said.
More than a trillion semiconductors are manufactured each year, with the global semiconductor market forecast to reach a total market size of $1 trillion by 2030.
The Telegraph reported in August that Italian aerospace company Leonardo was among Coherent’s customers, alongside Apple, which had ceased orders with the business and left the plant’s future in doubt. Coherent was not thought to have any outstanding orders with Leonardo, but sources suggested the plant may still be needed for future, unspecified programmes.
Healey said:
Semiconductors are at the forefront of the technology we rely upon today, and will be crucial in securing our military’s capabilities for tomorrow.
This acquisition is a clear signal that our ggovernment will back British defence production. We’ll protect and grow our UK Defence supply chain, supporting north east jobs, safeguarding crucial tech for our armed forces and boosting our national security.
Chinese stocks rally to 16-year highs, lifting global sentiment
Chinese stocks had their best week in many years, boosted by various stimulus measures announced this week by the Beijing government and People’s Bank of China.
The Shanghai Composite Index climbed by 2.9%, logging its biggest weekly gain since 2008, up nearly 10% while China’s CSI 300 jumped by 4.5% and had its best week since November 2008, ending 15.7% higher.
Hong Kong’s Hang Seng index rose by 3.6% and enjoyed its best week since 1998 with a 13% gain, which was the third-biggest move on record.
The optimism in Asia spilled over into Europe, where the benchmark Stoxx 600 index rose by 0.2% to touch an all-time high. Germany’s Dax is leading the way with a 0.6% increase while the French CAC is 0.3% ahead, the Italian borsa has gained 0.% and the FTSE 100 index in London has added 0.4%.
Russ Mould, investment director at AJ Bell, said:
A veritable feast of economic stimulus measures has led investors to take a more optimistic view of the earnings potential for Chinese companies and foreign ones selling into the country. Lower borrowing costs, smaller deposits for buying homes and more capacity for banks to lend money – these lay the foundations for greater economic activity among businesses and consumers.
On paper, it looks interesting. But whether the desired results end up meeting investors’ expectations is another thing. China is notorious for throwing stimulus measures left, right and centre, and the success rate is patchy to say the least.
The latest stimulus measures have boosted quite a few shares on the UK stock market because their fortunes are directly linked to China. This includes mining groups Glencore and Rio Tinto as investors hope that more economic activity in the Asian country will lead to greater demand for metals and minerals supplied by these businesses.
Fashion group Burberry has also seen its shares jump this week, rising by 16% as Chinese consumers have historically been a major buyer of its clothes, and so greater economic activity could in theory see these individuals willing to spend more cash on its chequered wares. Burberry needs all the good news it can get, given how its share price had until this week been on a downtrend since April 2023 amid various setbacks to trading and strategy.
The yen, which had fallen by around 1% against the dollar during the leadership contest in Japan, bounced back by 1.4%, and the Nikkei index rose by 2.3% after Japan’s former defence minister Shigeru Ishiba was announced as the winner, and looks set to become the next prime minister.
Updated
Consumer confidence in the eurozone has worsened.
The economic sentiment indicator dropped from 96.5 to 96.2 in September.
ING economist Bert Colijn has also looked at this morning’s inflation data from Spaina and France, and what this means for interest rates in the eurozone.
Weaker growth prospects and easing inflation concerns show a clear turning in eurozone sentiment at the moment, which adds dovish pressure on the ECB.
Inflation prints for Spain and France have come in very soft this morning, likely resulting in a first sub-2% eurozone inflation print for September. While this is related to base effects and inflation is expected to tick up again towards the end of the year, the question is by how much this can happen. Petrol prices have dropped significantly in recent weeks on the lower oil price, which limits the prospects of a headline inflation rebound. For the European Central Bank, a lot of focus will be on whether core inflation will come down though, with services inflation as its main concern.
All main eurozone surveys for September have now come in weak and this means that with inflation relatively benign, the focus of policy makers is shifting from inflation to growth worries at this point. For the ECB, this means that the pressure to lower interest rates from current restrictive levels quickly will increase.
German unemployment rises; ECB October rate cut back on table
In Germany, unemployment rose more than expected this month.
The seasonally adjusted number of unemployed people increased by 17,000 to 2.82 million, while economists had expected the figure to rise by 12,000.
Without the adjustment, unemployment fell by 65,600.
Carsten Brzeski, global head of macro at ING, said:
Looking ahead, the gradual weakening of the labour market looks set to continue. Recruitment plans in both industry and services have already fallen to the lowest level in a year. Also, the number of vacancies is gradually coming down…
Let’s not forget that the labour market is always a lagging and not a leading indicator. For the European Central Bank, today’s German labour market data ends a week which has brought a rate cut at the October meeting back on the table.
When leading indicators like this week’s PMIs and Ifo index as well as lagging indicators like today’s German labour market data and actual inflation data out of France and Spain all point to weak growth and faster disinflation, ECB doves will clearly be flying high.
Updated
Murdoch's REA raises Rightmove bid to £6.2bn
Billionaire Rupert Murdoch’s REA Group has made a fourth proposal to buy the British property portal Rightmove for £6.2bn, and urged the Rightmove board to “engage now”.
REA, which has been rejected three times, improved its cash and shares offer to 781p a share, from 770p a share on Monday which valued the company at £6.1bn.
The Australian company is also requesting an extension of the Monday deadline by which it has to make a firm offer or walk away for six months.
REA, which is majority-owned by Murdoch’s News Corp, reiterated its “disappointment and surprise” at the repeated rejections of its prior proposals by the Rightmove board. Its bosses have gone directly to Rightmove shareholders to persuade them to back the deal. REA urged investors to “use what little time remains ahead [of the Monday deadline] to make their views known to the board of directors of Rightmove”.
REA said it had repeatedly requested meetings with Rightmove but “no meetings have taken place and as such there has been no substantive engagement beyond cursory procedural telephone calls with the Rightmove chairman”.
Owen Wilson, REA’s chief executive, said:
While the Rightmove board has refused to meet with us, we have enjoyed the opportunity to connect with Rightmove shareholders and to share our vision for the combination of the no. 1 digital property businesses in the UK and Australia.
We continue to see the potential for us to strengthen Rightmove and accelerate its growth. This is a compelling opportunity to create a true global technology leader on the London market via a secondary listing, operating in two of the most attractive markets in the world.
Updated
The full story on the Telegraph auction is here:
Telegraph auction: owners of New York Sun and Spectator the frontrunners
Potential suitors to buy The Daily and Sunday Telegraph have until the end of Friday to submit second round offers with the US owner of the New York Sun and Sir Paul Marshall, the backer of GB News and the new owner of The Spectator, viewed as the frontrunners to win the auction.
Marshall, who earlier this month sealed a £100 deal to buy the Spectator magazine, is leading a consortium backed by Ken Griffin, the US billionaire founder of the Citadel hedge fund.
Earlier this week, The Spectator appointed former cabinet minister Michael Gove as its new editor, taking over from Fraser Nelson who has held the role since 2009.
Marshall has widely been considered the frontrunner to win the auction, however there are at least four known suitors expected to submit bids ahead of the deadline.
Earlier this month British-born Dovid Efune, who took control of the digital assets of the right-leaning former print newspaper The New York Sun three years ago, emerged as a serious rival contender.
Efune, who has reportedly secured the backing of institutions including US investment funds Oaktree and Hudson Bay Capital, the family office of hedge-fund manager and philanthropist Michael Leffell and the investment arm of the Canadian developer Beedie.
Several sources believe that Efune, a former editor of the Jewish publication the Algemeiner Journal, may have the edge over Marshall as he does not control any UK media assets that may spark political and regulatory investigations.
Inflation slows in France and Spain
Inflation in France and Spain has slowed more than expected, according to the latest data.
The annual inflation rate in France fell to 1.2% in September from 1.8% in August, led by a decline in energy costs, and lower than market expectations of 1.6%.
In Spain, inflation dropped to 1.7% from 2.4% in August, lower than the 1.9% forecast by analysts. Falling fuel prices were the main factor, while food and electricity costs also aided the decline, the national statistics office said.
Eurozone government bond yields fell after the figures were released, with Germany’s 10-year bond yield (or interest rate) dropping to 2.1%.
Markets are now pricing in a chance of more than 70% that the European Central Bank will cut interest rates by a quarter point next month. This is up from 20% early this week.
Updated
Oil prices were down again earlier but have just edged up by 0.1% to $71.71 a barrel for Brent crude and to $67.80 a barrel for US crude, the global benchmarks.
Brent has lost nearly $4 a barrel this week, as talk that Saudi Arabia had abandoned its $100 price target continues to swirl around the market ahead of planned production increases later in the year.
Global markets set to end September on a 'sparkling note'
UK stocks have opened a touch higher, following further strong gains in Asia and on Wall Street, where the S&P 500 hit a fresh high on Thursday.
Stocks were boosted by relief that weekly US jobless claims came in better than expected and second-quarter GDP growth held firm at 3%.
The FTSE 100 index in London edged up by 0.1% to 8,299 while the French and Italian markets rose by 0.3%, and Germany and Spain were flat.
Richard Hunter, head of markets at interactive investor, said
Global markets are set to end September on a sparkling note, with the Chinese authorities finally stepping up to the plate and with the main US indices continuing to test new record highs.
Derren Nathan, head of equity research at Hargreaves Lansdown, said:
Semiconductor stocks rallied led by US memory chip maker Micron’s surge of 14.7% [last night] after it released revenue guidance above market forecasts. This saw the optimism spread eastwards with Korean rivals Samsung and SK Hynix also seeing strong gains, topping off a strong week for Asian equities where a stimulus blitz unveiled by China’s government and central bank has seen Chinese equities enjoy their best week in over 15 years.
It’s been quite the come back with September almost completely reversing the double-digit losses endured over the previous 12 months. Only time will tell if this monetary experiment will see China return to its long-term growth trajectory.
In Japan, it’s been confirmed that Shigeru Ishiba will become the next prime minister after a nail-biting contest for the leadership of the ruling Liberal Democratic Party.
The Nikkei index jumped by 2.3% and the yen bounced back by 1% versus the dollar, and Nathan said “market confidence is no bad omen for the new man at the helm”.
Updated
Introduction: Chinese stocks on track for best week since 2008 after Beijing stimulus
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Chinese stocks are on track for their best week since 2008, after a blitz of stimulus measures aimed at the faltering economy.
The CSI 300 index rose by 3.5% today and is heading for a weekly gain of around 15%. Hong Kong’s Hang Seng index gained 2.7% and is on track for a near-13% weekly rise, its biggest since 1998.
An index of mainland Chinese property stocks is up 20% this week, and metal prices also rallied, including iron ore, copper, gold and silver. Investors are betting that the stimulus, which included interest rate cuts and support for the property market, will revive the latter and the wider economy.
After today, Chinese markets will be closed for a week-long public holiday.
Tin Lu, chief China economist at Nomura, said:
Beijing seems finally determined to roll out its bazooka stimulus in rapid succession… Beijing’s recognition of the severe situation of the economy and lack of success in a piecemeal approach should be valued by markets.
But eventually it is still necessary for Beijing to introduce well-thought policies to address many of the deep-rooted problems, particularly regarding how to stabilise the property sector, which is now in its fourth year of contraction.
The Japanese yen fell by 1% to three-week lows amid a leadership contest in the country. It has just been announced that former defence minister Shigeru Ishiba won the race to lead Japan’s ruling Liberal Democratic Party and will replace the prime minister, Fumio Kishida, as the country’s next leader.
The Agenda:
7.45am BST: France inflation for September
8.55am BST: Germany unemployment for September
10am BST: Eurozone consumer sentiment final for September
11am BST: UK CBI Retail sales for September
1.30pm BST US Spending for August with PCE price index
3pm BST: US Michigan consumer sentiment final for September
Updated
