The price of gold rose again to hit a record level on Tuesday, reaching a spot price of more than $3,550 as markets once more brace for potential political turmoil. At the same time, UK gilt yields have risen to close to almost its highest level since 1998.
Christine Lagarde, president of the European Central Bank (ECB), has warned of consequences if President Trump is allowed to exert force over the Federal Reserve rather than it keep its independence, saying “the effects this would have around the world [would] be very worrying”.
In the UK, Revolut will hold a share sale for employees which values the company at $75bn (£55bn). Meanwhile the FTSE 100 finished flat yesterday, while US stock markets will be back in action this afternoon after being closed for Labor Day on Monday.
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Key points
- Gold futures hits record high price above $3,550
- Revolut employee shares sale values firm at $75bn (£55bn)
Cooper denies Reeves being ‘sidelined’ after No 10 shake-up
10:25 , Karl MatchettRachel Reeves has not been sidelined by Number 10, a senior minister has said after Sir Keir Starmer reshuffled his Downing Street team.
Monday’s shake-up saw the Chancellor’s deputy, Darren Jones, move into a new role as chief secretary to the Prime Minister.
Sir Keir also brought in Baroness Minouche Shafik, a former Bank of England deputy governor, as his chief economic adviser and senior Treasury mandarin Dan York-Smith as his principal private secretary.
FTSE 100 and European shares fall
09:53 , Karl MatchettStock markets are in the red today, with the FTSE 100 down 0.38%.
France and Germany’s main index each are both also down, though the latter is more than 1% compared to the CAC 40 being only slightly lower than flat.
More than 100 fake Labubu dolls seized
09:00 , Karl MatchettMore than 100 fake Labubu dolls have been seized by trading standards officers in Moray amid “significant safety concerns”.
The toys are copies of the dolls made by Pop Mart which have become increasingly popular in recent years but are expensive, leading to a flood of counterfeits on the market.
Moray Council’s Trading Standards team seized the toys from shops in Elgin town centre and warned of the dangers of buying the fake products which could pose risks to children.
They found that many of the toys had small parts that could easily come off, posing a choking hazard, while some had poor stitching and exposed stuffing, increasing the risk of suffocation.
Other fake toys seized around the country have been found to contain dangerous chemicals.
Revolut share sale values firm at $75bn
08:41 , Karl MatchettFintech firm Revolut are holding a secondary share price sale which could see employees earn a windfall - and values the firm at about $75bn (£55bn).
The banking app is allowing employees to sell up to 20 per cent of their holdings to existing and some new investors.
Individual shares will be priced at $1,381.06 (£1,020).
Revolut is expected to IPO in New York rather than London some time in the near future.
What pushes the price of gold up?
08:21 , Karl MatchettHere’s a piece from a couple of months back when gold made its previous tilt for $3,500 - it still stands now if you want a bit of a primer as to the factors behind the investment idea, what impacts on its price and what might come next.
Is gold still a good investment after price hits all-time high?
Gold prices hit record high above $3,550
08:11 , Karl MatchettGold’s spot price rose again yesterday and overnight and this morning it’s more of the same.
A little sideways action is to be expected but the commodity is up more than 1.1 per cent across the past day and sits at $3,555.
It looks to have briefly breached $3,560 even, setting a new record high in the process.
Typically gold is bought as a ‘safe’ investment when there are fears in other markets over volatility.
Business and Money news - 2 September
07:55 , Karl MatchettMorning all and welcome to our rolling coverage of business news, stock markets and everything affecting your money.
Today the bond markets will be back in focus as well as gold and bitcoin, with another bout of uncertainty looking to hit investors.
