A fair few British businesses are in the headlines this week - though not all for positive reasons, unfortunately. While nostalgia is back once more with Topshop products back in stock at John Lewis stores, there is likely to be frustration on the way for Jaguar Land Rover’s customers - with a cyber hack meaning critical systems are offline which could impact on repairs.
Lloyds Banking Group are meanwhile reported to be set to place thousands of employees under a review which could see around 1,500 job losses, as part of a focus on performance.
Elsewhere, the FTSE 100 rose on Thursday, after US stocks mostly rose last night and Asian markets were very mixed overnight - rising in Japan’s Nikkei 225, but falling in Hong Kong’s Hang Seng and the Asia Dow.
Follow The Independent’s live coverage of the latest stock market and business news here:
Key points
- John Lewis to stock Topshop and Topman products
- Lloyds could put thousands at risk of job losses through performance review
- FTSE 100 rises as bond sell-off eases borrowing cost fears
- Millions to miss out on full state pension rise under triple lock next year
Business and Money live - 4 September
08:28 , Karl MatchettMorning all - coming up today all the latest news around Jaguar Land Rover, Topshop’s return, Lloyds cutting jobs, the latest reaction to the Budget date and plenty more besides.
We’ll look at how it affects you, the customer and consumer, as well as bring you everything regarding personal finance and how you can benefit with your money.
FTSE 100 flat on Thursday morning
08:39 , Karl MatchettLast night US tech stocks rose which dragged the S&P 500 higher - the index finished 0.5 per cent up, with the Nasdaq more than 1 per cent higher.
In Asia it has been a mixed night however: up in Japan, down in Hong Kong, the Asia Dow more than 1 per cent lower and Australia’s ASX 200 up one per cent.
And in the UK, that has all come together to see the FTSE 100 flat so far.
It dropped about 0.1 per cent early on but has bounced up a little - it’s essentially back at zero for now.
Topshop to return to British high streets in John Lewis stores
08:50 , Karl MatchettJohn Lewis is to bring the Topshop brand back to high streets across the UK as it partners with the fashion brand in a bid to attract more young people to its stores.
Topshop and Topman clothes will be sold in John Lewis shops nationwide from February next year as part of a new partnership between the firms.
It comes amid efforts from the department store chain to drive its growth as it continues with a major transformation plan under boss Peter Ruis.
More from PA here on it:
Topshop to return to British high streets in John Lewis stores
Currys boasts of rising sales thanks to AI and a hot summer
09:20 , Karl MatchettCurrys has seen a boost in recent sales, driven by consumer interest in AI computing and a rush for air conditioning during the hot summer.
The electricals giant, operating over 700 stores, reported a 3% increase in revenues across the UK and Ireland for the 17 weeks leading up to August 30, compared to the same period last year. This uplift was partly fuelled by double-digit growth in new product lines, including health and beauty like LED face masks, and pet technology such as monitors and automatic feeders.
While strong performances were noted in gaming, AI computing, coffee machines, and cooling products, these gains were offset by declining sales of televisions, tablets, and air fryers.
Currys said the use of credit among its shoppers continued to climb to make up 23.3% of all purchases.
More on the electricals firm here.
Bailey addresses concerns over 30-year bonds
09:40 , Karl MatchettAndrew Bailey, the Bank of England’s governor, has spoken out about UK government debt levels, urging not to jump to “dramatic commentary” over fiscal policy.
“I wouldn’t exaggerate the 30-year bond rate,” he said, point out borrowing costs rising was similar to some other nations and less notable than Germany, France or Japan.
“It is important not to over-focus on the 30-year rate. It is a high number but not a number that is used for funding at all. When you look at cost of debt issuance this year, overall it is at least flat or down, because the five-year rate has gone down,” Bailey added.
Lloyds employees face performance reviews - with jobs on the line
10:17 , Karl MatchettLloyds Banking Group are set to continue their push for improved performance with a review of the “bottom 5%” of staff.
While no overall job cuts are expected in number terms, there will be job losses for individuals who do not meet performance thresholds.
The Independent understands that additional coaching and training will be given to people who fall into this category, with the potential for departure without improvements.
There is no fixed target of how many will be looked at for performance reviews, we understand - and the intention is for it to impact at all levels and across all brands in the Group.
Those who do depart jobs will be replaced as part of the strategic drive to increase overall performance levels.
Lloyds Bank, Halifax and Bank of Scotland are all under they Lloyds Group umbrella.
More than 60,000 are employed all told, meaning 3,000 could be in that bottom 5% and facing a potential loss of job.
Sweeney ad sparks $500m jump in jeans brand value
10:40 , Karl MatchettAmerican Eagle saw sales beat expectations in the most recent quarter, after a controversial ad featuring Sydney Sweeney sparked a positive reaction from President Donald Trump and his Make America Great Again base.
Shares in the company rose by almost a quarter overnight (23.5 per cent), equivalent to around a $500m bump in market capitalisation value.
More here on a $500m jump overnight:
American Eagle sees sales drop after controversial Sydney Sweeney ad sparks MAGA love
Less than half of people in UK now use a wallet
11:00 , Karl MatchettYou probably pay for a lot of things on your phone these days - or your watch, or something else I haven’t heard of.
That has led to a decline in the use of cash as we know already, but also now to using physical cards - and bothering to carry a wallet around at all.
Cash network Link published results of a survey which shows less than half of people in the UK now use one regularly.
For those aged 35–44, almost a third (29 per cent) say they regularly leave home while only carrying only a digital wallet.
When we do take cash with us, it isn’t a lot - £20 is the “just in case” amount, it seems.
Construction sector suffers longest downturn for over five years
11:20 , Karl MatchettBritain’s construction sector has seen activity contract for the eighth month running as the industry suffers its longest downturn since the beginning of the pandemic, according to a report.
The latest S&P Global UK construction purchasing managers’ index (PMI) showed a reading of 45.5 in August.
This is up from 44.3 in July, which was the worst for over five years, but it yet again falls below the neutral 50 threshold, indicating that activity is contracting.
Anything above 50 suggests activity is expanding.
Construction sector suffers longest downturn for over five years – report
Jet2 cuts winter flight capacity in ‘difficult’ market
11:40 , Karl MatchettHoliday group Jet2 has cut its winter flight programme and said earnings will be towards the lower end of forecasts as it cautioned over a “difficult” market.
The group – which has seen the song used in its adverts, Hold My Hand by Jess Glynne, become a social media trend this summer – said it will now trim seats on sale by 200,000 to 5.6 million for the upcoming winter season, although this will still be 9% higher than a year earlier.
It flagged a “less certain consumer environment” and said holidaymakers were booking even closer to the departure date, with the trend becoming “more pronounced” since its last update in July.
FTSE 100 rises after bond sell-off eases
12:00 , Karl MatchettThe FTSE 100 is back on the rise after a sluggish start.
London’s main index is up 0.23 per cent today, with smaller firms in the FTSE 250 up 0.8 per cent.
Investors had steered clear for part of this week as borrowing costs rose - the yield on long-term gilts, essentially - but some bond selling has eased back that cost.
European stocks are mixed with Germany up but France down.
Why millions won’t feel the full benefit of the pensions triple lock
12:30 , Karl MatchettMillions of pensioners will miss out on receiving more money through the new state pension’s triple lock next year due to a key difference between the old and new versions.
For the new state pension, the triple lock ensures it goes up each year in line with whichever is higher out of inflation, wage growth or 2.5 per cent.
This year, wage growth is set to be the highest of those. Inflation is set to hit around 4 per cent late this year, but wage growth is already at 4.6 per cent, meaning at least a £550 increase to a full state pension next year, from £11,973 to £12,523 from April onwards.
However, there are an estimated 8-9m people on the old state pension – and they face a different change in income.
Why millions won’t feel the full benefit of the pensions triple lock
Revolut founder to become one of Britain’s top 10 richest businessmen
13:00 , Karl MatchettThe founder of fintech firm Revolut, Nikolay Storonsky, is set to become one of the 10 richest businessmen in Britain.
App-based bank Revolut is allowing employees to sell a portion of their shares in the company – up to 20 per cent – for $1,381.06 per share (around £1,034) in a secondary sale, which will value the business in total at $75bn. Last year, the company was valued at $45bn.
Mr Storonsky has around a 25 per cent holding of the firm, meaning his personal wealth will grow to more than $18bn – putting him in the top 10 richest businesspeople in the UK.
Zopa Bank buys payments platform in boost to merchants
13:30 , Karl MatchettZopa Bank has bought payments platform Rvvup.
The move is expected to aid and accelerate Zopa’s retail finance offering, giving merchants who use the system better insight and lower processing costs.
Tim Waterman, Chief Commercial Officer at Zopa Bank, said:
"Acquiring Rvvup is a key milestone in both Zopa’s growth trajectory and our purpose of building the home of money. Data, technology and lending capability have always been core to Zopa’s growth, and by integrating Rvvup’s unique offering, we will further strengthen our payments and point-of-sale capabilities. We believe that together we can deliver a seamless checkout experience for merchants and customers alike.”
Zopa has around 1.5m banking customers and launched their ‘Biscuit’ account earlier this year - which differentiates itself from other bank accounts by offering 2% interest on money held in a current account.
Thousands of Lloyds Banking Group staff at risk of losing jobs
14:00 , Karl MatchettLloyds Banking Group is set to put thousands of its lowest-performing staff at risk of losing their jobs as the UK bank continues to pursue an overhauled strategy to embed a “high-performance culture”.
The group, which covers Lloyds Bank as well as Halifax Building Society and Bank of Scotland, plans to change how it monitors the performance of its employees and manages staff turnover within the business.
Among its workforce – which totalled about 61,200 at the end of 2024 – about 3,000 people viewed to be among the bottom 5 per cent are set to be put at risk of dismissal.
However, The Independent understands there will not be an overall pursuit of jobs cuts; rather, those who do not increase performance levels will be replaced by new arrivals as the group aims to improve overall performance.
Full details here:
Thousands of Lloyds staff at risk in push for ‘high-performance culture’
FTSE 100 pushes higher, US stocks rise
16:17 , Karl MatchettTime for a check in on the stock markets before we check out today.
The FTSE 100 has continued to rise this afternoon and now stands up by 0.5 per cent shortly before closing - the highest riser is Next, up 2.8 per cent.
Over in the US, the Nasdaq has risen 0.2 per cent and the S&P 500 is 0.3 per cent up a couple of hours after opening.
Hewlett Packard is among those leading the way, up more than 5 per cent, while Amazon is up 3 per cent and Meta up 2.2 per cent.
American Eagle shares surge after controversial Sydney Sweeney ad despite sales drop
16:18 , Karl MatchettShares in clothing company American Eagle have surged after a controversial ad featuring Sydney Sweeney backed by President Donald Trump and his MAGA base - though actual sales are slightly down.
Shares in the company rose by almost a quarter overnight (23.5 per cent), equivalent to around a $500 million bump in market value.
Sales between May and July actually fell to $1.28 billion, slightly down from $1.29 billion the year before, according to its second quarter earnings released Wednesday.
However the company comfortably beat revenue estimates of $1.23bn with the firm’s second-highest ever for the second quarter of the year. The Sweeney ad launched on July 23, right at the end of the quarter so the true impact on sales may not be seen until the next sales report.
American Eagle shares surge after controversial Sydney Sweeney ad despite sales drop
Amazon reveals UK revenues jump as it pays £1bn tax bill
16:25 , Karl MatchettAmazon has said its tax bill rose to £1 billion last year after revenues lifted to more than £29 billion.
The online marketplace, which is one of the country’s biggest employers, said its taxes increased from £932 million in 2023.
The direct taxes the company must pay includes corporation tax, business rates, and digital services tax.
These came to about £1 billion in the UK for 2024, according to a blog post by the business.
