Elon Musk was briefly usurped as the richest person on the planet overnight after Oracle’s share price boomed on Wednesday - with co-founder Larry Ellison’s stake in the firm making his personal net worth more than that of the Tesla CEO. However, by closing time the share price had given up some of those huge gains - leaving Musk back on top this morning, according to Bloomberg’s Billionaire Index.
In wider business news affecting the UK, pharmaceutical company Merck have pulled out of a £1bn investment in a research facility, while Primark’s owner ABF have sent a warning to Rachel Reeves to not put any further money concerns on the British public.
Economists at Barclays have anticipated inflation levels remaining fixed at 3.8 per cent for August, though both food and clothing are among the sectors expected to have increased prices. Official figures are due out next week.
Elsewhere, gold prices continue to test new record highs, while people are being warned over the rise of QR codes used as a new scamming technique.
Follow The Independent’s live coverage of the latest stock market and business news here:
Key points
- The QR code scam costing consumers £10,000 a day
- Klarna gets $17bn valuation on day one as a public company following 14% surge
- Elon Musk takes back richest person in the world tag after Oracle shares rocket higher
- FTSE 100 climbs with defence stocks in demand
- Klarna gained 'almost as much growth in 4 hours as Wise in 4 years'
Pharma giant ditches £1bn London research hub and says UK ‘is not internationally competitive’
16:17 , Karl MatchettA major global pharmaceutical firm said its decision to back out of a £1bn research hub partway through construction is because the UK is “not internationally competitive”.
The move by US-based firm Merck, known as MSD across Europe, is the latest setback for Britain, despite Labour having put life sciences as a key pillar to support across business in the new industrial strategy earlier this year.
A government spokesperson said the UK “has become the most attractive place to invest in the world”, but that was dismissed by a statement from Merck, which warned that more companies would be making similar decisions.
It said changes needed to be made “to the operating environment” of the UK and that investment needs to be “put back in the right places”, among other issues, to stop other companies making the same move.
Merck was developing its research centre in the King’s Cross area of London, which was due to open in 2027. They will lay off 125 scientists and support staff.
Full details here.
Pharma giant ditches £1bn London research hub and says UK ‘not competitive’
Business and Money live - 11 September
08:23 , Karl MatchettMorning all - another weekend is fast approaching but there’s a lot to get through before then on the business and money side.
Tomorrow in the UK we’ll get GDP figures of course, but today there’s reaction to Klarna’s successful listing as a public company, the UK government getting hammered by both domestic and overseas companies and plenty more besides.
Beware the QR code: How a new scam is costing consumers £10,000 per day
08:52 , Karl MatchettWhether you’re ordering drinks to your table in a pub or want to pay for car parking, QR codes make life simple.
A quick scan of a black-and-white grid on your mobile phone takes you straight to a website to carry out the transaction.
But that harmless-looking square can now hide a cunning scam.
This is known as “quishing”, where fraudsters trick you into handing over bank details or personal data, or download dangerous malware to your phone. Here’s what you need to know.
Beware the QR code: How a new scam is costing consumers £10,000 per day
Budget taxes see losses widen at John Lewis Partnership
09:05 , Karl MatchettThe John Lewis Partnership (JLP) has posted an £88 million loss for the past half-year after being hit by increases to national insurance contributions and packaging taxes.
However, the employee-owned group, which runs the John Lewis department store chain and Waitrose grocery business, said it is still “well positioned” to deliver profit growth for the full year.
It said pre-tax losses before exceptional items grew to £34 million for the 26 weeks to July 26.
Losses widen at John Lewis Partnership after Budget tax increases
Klarna IPO: 14% surge on day one for buy now, pay later giant
09:20 , Karl MatchettThe buy now pay later firm Klarna had their first day as a publicly traded company on Wednesday, with last night’s closing price more than 14 per cent up to give it a total market capitalisation value of $17.3bn (£12.8bn).
It marks a wildly successful start for the company on the stock market, with the past few years having been tricky to navigate for firms hoping to go public.
The move has also drawn comparisons with payments transfer firm Wise, who have spoken of an intent to move from London to New York.
Musk vs Ellison: Richest person battle comes down to $1bn
09:40 , Karl MatchettLet’s preface this post by acknowledging we’re speaking in relative terms: one billion dollars is a hefty amount for you and I.
But for the richest two people on the planet it’s around 0.25 per cent of their total net worth - so think in terms of about £25 if you’ve got ten grand in the bank.
For a long while Tesla’s Elon Musk has been way out in front as richest person - but yesterday’s monster surge on the stock market for Oracle means co-founder Larry Ellison caught him up and, briefly, overtook him.
But despite finishing 36 per cent up for the day, Oracle did pull back on a little of the earlier gains, meaning Ellison’s fortune dipped just enough to put Musk back on top today.
Bloomgberg’s Billionaire Index - widely acknowledged as the authority on net worths - has the two thus, this morning:
- Elon Musk, $384bn (£284.1bn)
- Larry Ellison, $383bn (283.3bn)
Next on the list Meta’s Mark Zuckerberg - a full $120bn further back.
Gold is at a record price - why are people buying and how can I invest?
10:00 , Karl MatchettThe gold price has soared to a new record high amid concerns about the impact of President Trump’s radical trade policies.
This week, the yellow metal’s price reached $3,600 per troy ounce (the unit used to weigh precious metals), up 42 per cent higher from a year ago.
That upward march could continue further, with December futures markets tipping $3,700 already and some experts predicting it could pass $4,000 by next year.
But “buy low, sell high” is the age-old investment advice. So, for those who haven’t yet invested, is it too late?
Gold is at a record price - why are people buying and how can I invest?
Primark boss issues stark warning to Reeves over Budget
10:20 , Karl MatchettRachel Reeves has been urged not to give consumers more money worries in her November Budget, with Primark’s boss warning customers are already taking the hit for tough business conditions.
George Weston is the chief executive of Associated British Foods (ABF), a £14bn British-listed conglomerate firm which, as well as owning Primark, is the parent of food businesses such as Kingsmill and Twinings, and is one of the biggest sugar producers in the world.
Speaking after ABF’s latest financial results emerged, he warned the chancellor that, while food inflation should be easing from this point onwards, businesses have had no choice but to keep passing on increased costs to customers this year.
FTSE 100 rises sharply as investors seek defence stocks
10:40 , Karl MatchettThe FTSE 100 is up 0.41 per cent this morning and it was slightly higher than that an hour ago too.
Such a strong showing in early trading is down to defence stocks being in demand again, BAE Systems leading the way with a 3.4 per cent rise.
“The UK’s FTSE 100 led the charge in Europe as defence and energy stocks were at the top of investors’ buy lists,” said AJ Bell’s Russ Mould.
“Ongoing geopolitical tensions have led investors to have confidence in the defence sector, believing earnings prospects are strong given a fragile backdrop. BAE Systems’ share price has risen by 45% over the past 12 months and up 271% over five years.
“Oil producers Shell and BP were in demand despite oil prices taking a breather from the recent rally. The industry is undertaking a broad cost-cutting exercise, slashing jobs and pausing projects. However, big oil companies are still making profits, and dividends and buybacks are not under threat at current oil price levels, hence ongoing investor interest in the sector.”
Klarna IPO saw almost 'as much growth in 4 hours as Wise managed in 4 years'
11:00 , Karl MatchettLet’s look back again at the Klarna deal - perhaps unsurprisingly after yesterday’s day one surge, pre-market trading has the payments firm down around 3 per cent.
Yet its opening popularity cannot be ignored, particularly in the context of fintech firms picking New York over London, as one expert points out.
“Klarna’s decision to push ahead with an IPO in the US at a valuation of around $15bn (around £11bn), followed by an initial share price pop which saw its market cap balloon to around $19bn before settling around $17bn, highlights exactly why tech stocks are deciding to shun the UK market,” said George Sweeney, investing expert at personal finance site Finder.
“It’s hard not to draw comparisons with what was once the UK’s payment fintech darling, Wise.
“With roots in Estonia, Wise decided on a direct listing of its shares on the London Stock Exchange (LSE) back in July 2021 at a valuation of roughly £8bn. In the four years since then, after plenty of ups and downs, Wise has only managed to add £3.84bn to its market cap for a total valuation of £11.84bn.
“Potentially as a result of lacklustre investor interest, Wise recently made the decision to move its primary listing to the US.
“Contrast that with Klarna, of Swedish origins, who decided to avoid the UK stock market entirely and instead headed to the New York Stock Exchange (NYSE).
“Almost immediately it added $4bn onto its starting IPO valuation, almost achieving as much growth in 4 hours as Wise managed in 4 years.
“Of course, this is just the beginning, and there’s sure to be plenty of volatility for Klarna’s share price and valuation over the coming weeks and months; but it’s clear to see the deep liquidity and investing appetite for US-listed tech stocks makes the UK appear less appealing to up-and-coming companies by the day.”
One in five low-income pensioners ‘could not afford an emergency £200 bill’
11:20 , Karl MatchettMore than half (54%) of pensioners on low incomes find it a struggle to keep up with bills and credit commitments, according to research for the Living Wage Foundation.
Three in 10 (30%) said they are in some level of debt and just over a third (35%) said they rely on money from other sources such as benefits or money from friends, family, a partner to get by.
A fifth (20%) said they could not afford an unexpected but necessary expense of £200, making them potentially vulnerable if, for example, their washing machine or boiler broke down and needed replacing or repairing.
More on the worrying report from PA here.
Major lenders set to cut savings account interest rates
11:40 , Karl MatchettSeveral major high street banks and building societies are due to cut their interest rates on savings accounts across the coming weeks - with one expert urging savers to seek out better deals still on the market.
Despite the base Bank of England interest rate dropping to 4% last month, several challenger banks offer returns above that level right now and among small and huge lenders alike, regular saver accounts can offer as high as 7% - so make sure you’re doing your homework and putting your money where it will give you the best return, said Kate Steere, money expert at Finder.
“The so-called “rewards” accounts at some of the high street banks are really not that rewarding when even the bonus rate is so low,” said Ms Steere.
“Customers can find savings rates twice as good elsewhere - and without being penalised for making withdrawals. For example, new customers with Chase can get a competitive AER of 4.75% on their saver account for 12 months.
“The average UK saver has just over £16,000 in savings. If this was placed in the Chase account, rather than earning the new Barclays Rewards Saver rate of 2.10%, they would earn an extra £424 in interest over a year. Keep in mind that this is a boosted saver, so you’ll need to keep an eye for new deals once the 12 month bonus period is up.”
As well as Barclays, the likes of HSBC, Nationwide, NatWest and TSB are among those set to cut rates between now and the start of October.
Analysts expect inflation to remain at 3.8% for August
12:00 , Karl MatchettBarclays analysts have released their inflation expectations from August, ahead of official GDP figures for the UK from July, which emerge tomorrow.
The consensus from the bank’s economists was inflation to remain flat at 3.8 per cent, but for food, alcohol and tobacco (FAT) to continue to push prices higher across that sector.
“We expect headline CPI inflation to stay at 3.8% year on year (y/y) in August, while core CPI should decelerate 0.2pp to 3.6% y/y. We expect food prices to drive a 0.3pp acceleration of FAT inflation to 5.4% y/y,” read the report.
Housing & Household Expenditure is also forecast to have risen 0.2 per cent month to month, with clothing and footwear up 1.2 per cent from July.
Reeves admits economy ‘stuck’ as she confirms business rates overhaul
12:20 , Karl MatchettChancellor Rachel Reeves has voiced concerns that the UK economy feels "stuck" as the Treasury unveils plans to overhaul business rates, including measures to eliminate "cliff edges" for small firms.
The government is examining changes to the current system of business rates – the tax levied on commercial properties – as part of a broader drive to reduce bureaucracy and stimulate economic growth.
An initial report from the Treasury indicates a focus on reforming small business rates relief rules, which are currently seen as a disincentive to expansion and investment.
Reeves admits economy is ‘stuck’ ahead of business rates overhaul
Ride-hailing app Bolt records spike in hospital trips amid Tube strikes
12:40 , PALondoners’ use of taxi apps to take them to hospitals has spiked this week as Tube strikes paralysed public transport in the city, new data reveals.
Ride-hailing firm Bolt said the number of trips booked through the platform more than doubled on Monday to Wednesday.
Journeys to central London’s Guys and St Thomas’ Hospital spiked by 118% compared with the same period last week.
And trips to Royal London Hospital, which is home to one of the largest children’s hospitals in the UK, and St Mary’s Hospital in Paddington both doubled week-on-week.
Public transport across the capital city has been crippled with parts of the London Underground grinding to a halt during significant strike action.
Rising mortgage rates signal fresh battle for homeowners ahead of Reeves’ Budget
13:00 , Karl MatchettInterest rates on some of the most competitive high street mortgage deals have risen in a fresh blow to homeowners and buyers.
HSBC and Halifax are among the lenders that have raised rates on some of their deals amid a “fraught political and economic climate”, with more expected to follow suit. One expert has urged buyers to “grab” any sub-4 per cent deals before they disappear entirely.
It will be seen as a fresh blow to Labour as the government hopes to improve consumer confidence and boost the UK economy ahead of Rachel Reeves’ Budget. The chancellor has vowed to deliver a statement on November 26 which addresses an economy that’s “not working well enough for working people”.
Rising mortgage rates signal fresh battle for homeowners ahead of Reeves’ Budget
Pub launches free gift chance with loyalty app
13:30 , Karl MatchettBrewer and pub firm Greene King has launched a new pub loyalty programme which can snare users a freebie.
New users who download the app and register get a guaranteed reward via ‘Spin to Win’, the firm say.
Free gifts can range from a free drink to a main meal worth up to £18.99, with no need for a minimum spend to claim the treat.
Kevin Hydes at Greene King said: “Pubs are about creating feel-good moments, but we know many people are keeping a close eye on costs. That’s why we’re always looking for ways to make visiting our pubs even more rewarding and to give back to our customers. With Spin to Win, we’re giving new customers a little something extra – a chance to enjoy a free treat on us, just for joining our loyalty programme.”
UKHospitality urge government to give maximum relief on business rates
14:00 , Karl MatchettThe Government has today published their report on business rates reform and pointed to changes to Small Business Rates Relief, as well as fixing business rates “cliff edges”.
UKHospitality has praised the potential reform and urged the government to apply maximum discounts for the industry.
“UKHospitality has said these proposals are ‘positive’ and will help to rebalance the system, but reinforced the critical need for the Government to apply the maximum possible discount to the multiplier for all hospitality properties under £500,000 rateable value,” said a statement.
Kate Nicholls, Chair of UKHospitality, said: “For too long, the broken business rates system has unfairly punished hospitality businesses and I'm pleased that the Government is taking action to reform it, following many years of campaigning from UKHospitality.
“These measures to remove punitive cliff-edges and barriers to investment are positive and will help to rebalance the system, as will the Government's commitment to lower business rates bills for hospitality businesses.”
Pharma giant ditches £1bn London research hub and says UK ‘is not internationally competitive’
14:30 , Karl MatchettA major global pharmaceutical firm said its decision to back out of a £1bn research hub partway through construction is because the UK is “not internationally competitive”.
The move by US-based firm Merck, known as MSD across Europe, is the latest setback for Britain despite Labour having put life sciences as a key pillar to support across business in the new industrial strategy earlier this year.
A government spokesperson said the UK “has become the most attractive place to invest in the world”, but that was dismissed by a statement from Merck which warned that more companies would be making similar decisions.
Full report:
Pharma giant ditches £1bn London research hub and says UK ‘not competitive’
Ben & Jerry’s asks to ‘free’ itself from owner so it can ‘honour its mission’
15:00 , Karl MatchettIce cream brand Ben & Jerry’s wants to return to being an independent business, as it seeks to promote its original “authenticity” and focus on its “social justice mission”.
Since 2000, the brand has been owned by Unilever, the £115bn industry giant which is also the parent of the likes of Dove soaps, Marmite, Domestos cleaning products and more.
However, Unilever is spinning off its ice cream division which will list as a separate entity as the Magnum Ice Cream Company (MICC), which Ben & Jerry’s is set to be a part of.
In an open letter to MICC board members and prospective investors in the new company, which will be listed on the Amsterdam stock market rather than London like Unilever, co-founders Ben Cohen and Jerry Greenfield have pleaded to be allowed to separate themselves once more and return to their roots.
More here.
