The FTSE 100 ended slightly up yesterday and will open again on Wednesday marginally higher, but uncertainty continues to concern investors. Domestically, economic growth is still proving elusive with the public sector now being blamed for underperformance, while jobs data this week showed slightly slowing wage growth and a fall in jobs vacancies.
Further afield, Asian stock markets mostly rose overnight, while in the US big companies such as Nvidia, Alphabet and Apple have all been in the headlines over the past couple of days - and not necessarily for totally positive reasons. A key focus today will be parent company Alphabet making a decision over Google, which has received a surprise bid to buy its Chrome browser for more than £25bn.
Meanwhile, the FTSE 100 saw firms today such as housebuilder Persimmon confirming latest profits in the latest outlook of how the UK is faring.
Follow The Independent’s live coverage of the latest stock market and business news here:
Key points
- Perplexity make bid £25.5bn for Google's Chrome browser
- How does Perplexity make a bid for twice what it's worth itself?
- Persimmon increases revenues despite challenges in housing sector
- Inheritance tax proposals 'a shameless cash grab'
Business news live - 13 August
07:54 , Karl MatchettGood morning all and welcome to The Independent’s live business and money coverage.
Coming up, more companies news, UK domestic economic updates, everything regarding personal finance and stock markets movements.
Perplexity make $34.5bn bid for Chrome browser
08:10 , Karl MatchettOut of the blue, Google saw an offer made to it overnight for its Chrome browser.
The offer comes from AI firm Perplexity, which has its own browser if you don’t already know of the firm.
Their bid is for $34.5bn (about £25.5bn) and was reportedly an unsolicited offer, and there are several key factors at play here.
Chrome is estimated to be the world's most popular browser, having an estimated three billion-plus users.
Google facing forced Chrome sale over antitrust probe
08:24 , Karl MatchettOne key matter which has arisen within Perplexity’s bid is the fact that Google are currently facing the prospect of a forced sale of Chrome anyway.
They have not signalled intent to do so but a US federal judge will pass a ruling soon on whether they need to do so, from a long-running antitrust case.
Perplexity said in a latter to Alphabet CEO, Sundar Pichai, that the bid could offer a way around the issue, with it “designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator”.
Responding to BBC News, Perplexity also said the bid would be an “important commitment to the open web, user choice, and continuity for everyone who has chosen Chrome.”
Perplexity's bid is $34.5bn. Perplexity is worth $18bn. How does that work?
08:45 , Karl MatchettAs noted earlier, the bid is $34.5bn - there are two sides to the question of this figure.
One is what Chrome is worth, which some experts believe is far, far higher than that.
The CEO of DuckDuckGo (another browser) recently testified in court that Chrome was worth $50bn in their view.
The other is what the buying company is worth - Perplexity is a private firm but it was valued at around $18bn, according to the Wall Street Journal.
They are seeking external partners to provide money to back the bid including big venture capital firms, reports the Times.
Perplexity bid is 'sparking debate on Chrome's true value'
09:03 , Karl MatchettTime for a first bit of industry comment on that Perplexity bid perhaps.
Ben Barringer, global technology analyst at Quilter Cheviot, says it may just be a starting point to sound out a deal rather than an all-in take-it-or-leave-it offer.
“This bid from Perplexity is as much about making a statement as it is about securing a deal. With a U.S. judge expected to soon set out remedies in the Department of Justice’s case against Google, one possible outcome is a forced sale of Chrome,” Mr Barringer said.
“Perplexity, as an AI-driven search engine with its own browser, Comet, has been tactical in stepping forward now.
“The $34.5 billion offer is widely seen as undervaluing Chrome, so in many ways this is about starting the price discovery process. Owning Chrome would clearly be a win for Perplexity, given it competes directly with Google, but the question is whether Google would rather see it in the hands of a different buyer.
“At its core, this move speaks to three things: positioning ahead of potential remedies, sparking debate on Chrome’s true value, and increasing competitive pressure on Google.”
FTSE 100 flat, housebuilder Persimmon profits
09:31 , Karl MatchettA quick check in on the UK stock market this morning, with investors generally positive overnight ahead of expected interest rate cuts in the US next month.
The FTSE 100 is pretty flat, however, up just 0.1 per cent this morning - France and Germany are +0.3pc and +0.6pc respectively.
Housebuilder Persimmon reported increased revenues of 12%, with scope for slight margin growth next year.
Build cost inflation and affordability are among the challenges faced at present but they say the housing market can continue to progress gradually.
Perplexity bid 'nowhere near Chrome's true value' says industry insider
09:45 , Karl MatchettTech founder and investor Heath Ahrens isn’t buying what Perplexity are selling.
In terms of the bid being serious, that is.
The bid is a “stunt, and nowhere near Chrome's true value, given its unmatched data and reach,” he told the BBC.
“The offer isn't serious, but if someone like Sam Altman or Elon Musk tripled it, they could genuinely secure dominance for their AI.”
Altman is CEO of Open AI, while Musk, owner of X and CEO of Tesla, has his own AI model in Grok which is owned by xAI.
Quickfire companies wrap: Persimmon, Tui, Shoe Zone
10:00 , Karl MatchettHere’s a quick roundup of the morning company news courtesy of PA:
- Housebuilder Persimmon said it has sold more homes this year but warned that still-high mortgage rates and rising household costs were making it less affordable for buyers. It completed the sale of 4,605 homes in the first half of 2025, 4% more than the same period last year. The average sale price of a home jumped by 8% to about £284,000.
- Holiday giant Tui has revealed a jump in profits despite a “challenging” backdrop linked to European heat waves and conflict in the Middle East. Bosses at the firm stressed that the group has been boosted by its recent growth strategy. The update came a day after the company upgraded its financial forecasts for the current year.
- Shoe Zone has halved its profit guidance in the face of weaker consumer spending, partly blaming the impact of the Labour Government’s budget tax hikes. The high street chain said it was knocked back by “challenging trading conditions” in both June and July. It told shareholders that is saw a further drop in consumer confidence “following on from the Government’s October 2024 budget announcement”.
“Why has perplexity bid to buy chrome browser?”
10:20 , Karl MatchettMight as well ask the product itself, right? A quick prompt into the Perplexity browser with the following question:
“Why has perplexity bid to buy chrome browser?”
Has given a list of “key reasons”.
Antitrust opportunity, strategic move and marketing, promises to users, AI and data access and competitive edge are all cited as being reasons for the move.
Obviously, these are sourced from most of the overnight reports from Wall St Journal and the like, but a fun one to mess with its own non-existent head nonetheless.
Gatwick baggage screeners to strike from next week
10:40 , Karl MatchettA trade union has announced a strike at Gatwick airport from next week which it claims will put all departing flights at risk of disruption.
Unite said baggage screeners employed by ICTS will walk out in a dispute over pay from August 22-26 – which includes a bank holiday weekend – and August 29 to September 2.
The union said the workers are among the lowest paid at the West Sussex airport, earning “just above the minimum wage”.
University: How to budget and manage your money as a student
11:03 , Karl MatchettTomorrow is A Level results day - if that’s you or one of your children, it’s time to learn to manage your money while at university.
Here’s a great guide for everything you need to know:
University: How to budget and manage your money as a student
State pension 'petition' not based in reality
11:20 , Karl MatchettApparently, there’s a petition going around to get the government to raise the state pension amount to £586 per week - well over double the current amount.
The “thinking” behind the figure is its equivalent to a National Living Wage for 48 hours of work. The petition also asks for this to be given to everybody aged 60 or over including expats.
To be clear on how ridiculous and impossible this is, for 2023-24, the cost of the state pension is estimated to be around £138 billion - more than 5% of the entire UK GDP already, and projected to rise to above 7% over the coming years as inflation and wage growth pushes it higher.
So, this plan wants to go more than 2.5 times higher than that on the amount paid out, plus then add in an additional section of the population who don’t currently get the pension.
Karen Barrett, founder and money advice platform Unbiased, has been rather kinder in their assessment:
“Calling to reduce the age to access the state pension to 60 and boosting it in line with the National Living Wage sounds like a dream, but comes with many potential issues,” she said.
“It’s essential to consider the state pension as a supplement to your retirement income, rather than the key to funding it.
“That’s why it’s vital that you build up your wealth throughout your lifetime to prepare for your golden years, which includes contributing to personal and workplace pensions.
“It’s never too early - or late - to start planning for the future, especially retirement.”
Inheritance tax: Labour plans criticised as 'shameless'
11:47 , Karl MatchettIf you’ve not seen yet, new reports today say the government are planning to overhaul Inheritance Tax to get rid of the seven-year rule: if you gift money to family, after seven years it’s no longer part of an inheritance estate, essentially.
They also are considering a lifetime cap on what you can gift to family at all before it’s taxable.
John O’Connell of the TaxPayers' Alliance, said in response:
“As if hammering family farms and clobbering small businesses wasn’t enough, Reeves now wants to launch a smash and grab on presents to children and grandchildren.
“This is nothing more than a shameless cash grab to paper over the cracks of a government that can’t control its own spending. Punishing parents and grandparents for treating their loved ones is little more than the politics of envy.
“Not only should this vindictive policy be ruled out immediately, but inheritance tax itself should be scrapped in its entirety.”
Stock markets continue to fly - for how long?
12:00 , Karl MatchettStock markets keep on rising - not necessarily every day, but record levels keep being hit. That’s true in the US, the UK, some European and Asian nations...investing has been profitable in 2025 once more.
How long will it go on? And what should investors watch out for?
“Animal spirits are definitely in charge of the market right now, as investors embrace the potential for the Fed to cut interest rates in the wake of what was seen as a soft inflation reading in the US,” says Russ Mould, investment director at AJ Bell.
“While there are only tentative signs of tariffs showing up in US consumer prices, they may be more of a subtle, slow burn which aren’t immediately apparent in the headline rate right now.
“Global stocks are at record highs, so anyone who has taken on equity risk with their savings will see plump valuations in their investment accounts right now. Long may that continue, though of course the volatility of the market means at some point there will be a slide, the question is: how much higher will markets be before that happens?
“The relief rally from tariffs being less bad than expected has propelled stock markets far beyond where they were before Liberation Day, which does set some alarm bells ringing. But when markets are in this kind of mood, sitting on the sidelines can be extremely painful.
“The important thing is that over the long term, an investment in shares has historically shown a very clean set of heels to cash savings. Those who are concerned about current market levels might think about investing regularly, to smooth out the journey and protect themselves from any nasty downdrafts in the short term.”
Average two-year mortgage rate dips below 5% for first time since mini-budget
12:30 , Karl MatchettThe average two-year fixed-rate mortgage has dipped below 5% for the first time since before former prime minister Liz Truss’s so-called mini-budget in September 2022, according to a financial information website.
Moneyfacts said the average two-year fixed homeowner mortgage rate on Wednesday was 4.99%. This was down from 5.00% the previous working day.
It marked the first time since September 29 2022 that the rate was below 5%, when it stood at 4.87%.
Adam French, head of news at Moneyfactscompare.co.uk, said the move “is a symbolic turning point”.
Average two-year mortgage rate dips below 5% for first time since mini-budget
Mortgage rate cut could save you thousands - if you keep paying the old amount
13:00 , Karl MatchettIf that lower mortgage rate news makes you happy, consider whether your finances (and the terms of your deal) allow to overpay the mortgage.
Knock off months of payments and aside from being a mortgage-free homeowner faster, you can save big money on the interest.
“Someone with a £150,000 mortgage at 4.25% over 25 years currently pays around £812 a month,” explains Jinesh Vohra, CEO of mortgage payments app Sprive.
“The 0.25% cut brings this down to £791 — a saving of £21 a month, or £252 a year. If they keep paying £812 and put that £21 towards overpayments, they could save £4,280 in interest and clear their mortgage a year and a month sooner.”
It’s estimated around 17% of mortgage holders are currently on variable rates, meaning their monthly payments have already fallen.
“Overpaying is one of the most powerful ways to become mortgage-free faster,” Vohra adds. “Even small, regular overpayments can knock years off your term and save thousands — all without stretching your budget.”
US stocks forecast to rise amid interest rate cut calls
13:30 , Karl MatchettIn the US there have been calls now to cut interest rates by 50bps which is seeing people shove money back into riskier assets.
Lower interest rates are an incentive to look for better returns, such as in the stock market.
With that added to a recent strong run, the S&P 500 is projected to rise 0.2 per cent this afternoon when markets open, according to the futures rates.
And the Nasdaq is set to rise around the same, with the Dow at 0.3 per cent up.
HMRC receive record number of tip-offs over possible tax fraud
14:12 , Karl MatchettThe number of people snitching on others for possible tax fraud - often friends, families and neighbours - hit a record high last year, FOI data shows.
A report in the Telegraph cites over 164,000 cases of reporting others, a 9% increase year on year.
HMRC pays out to those who report possible fraud, a discretionary amount based on time taken and amount recovered.
In the US, 15-30% of money recovered is payable as a reward. That is expected to come into force in similar fashion in the UK later this year.
'It will end in grief': Critics aim at Reeves' IHT plans
14:56 , Karl MatchettMore criticism aimed at Rachel Reeves - these inheritance tax plans don’t seem to be going down well today.
James Quarmby, partner in private wealth at Stephenson Harwood, says:
“If the Chancellor starts taxing lifetime gifts it has the potential to completely blow up in her face and wreck any chances of a re-election. Potentially Exempt Transfers are the reason only 4% of estates pay inheritance tax, yet nearly 30% of people believe they will, which makes it a deeply sensitive issue for the middle classes, who are becoming increasingly squeezed. Remove that relief and you don’t just raise tax, you ignite a political firestorm. The Labour Party is already seen as high tax and high spend, but start targeting middle class assets and it will end in grief.”
Claire's Accessories appoint administrators
15:29 , Karl MatchettAnother name could be set to depart the UK high street, with news that Claire’s Accessories has appointed administrators.
More than 2,100 jobs are at risk, while the company has 278 stores in the UK.
Claire’s in the US filed for bankruptcy earlier in August but the administrators will keep shops open in the UK while they “assess options for the company”.
Rail bosses given ‘criminal offence’ warning over fare dodger prosecutions
16:10 , Karl MatchettTrain company bosses have been warned by the Government they could be breaking the law if they allow unqualified staff to prosecute alleged fare dodgers.
A Department for Transport memo sent to operators states it is a “criminal offence” to let non-lawyers act as prosecutors in court cases with passengers accused of not buying the correct ticket.
The use of these lay prosecutors in those circumstances is not legal, the advice warns. More here.
