The creditors of Thames Water have put a new rescue plan together which is being submitted today to Ofwat. Under the new plans, £5.4bn of funding will be provided and some investors will write off up to £12.5bn of debt. The regulator must approve the plans to avoid the company going into temporary nationalisation.
Meanwhile, the FTSE 100 hit new record highs yesterday as stock markets largely ignored the US government being in shutdown, while Thursday will see a new company debut on the London Stock Exchange - a data centre company called Firmi, which is the first Nasdaq-LSE dual listing in decades.
Elsewhere, Elon Musk’s net worth briefly surpassed half a trillion dollars, Greggs confirmed they are raising prices again and David Beckham was paid out £26m in dividends by the company which controls his brands and media work.
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Key points
- Thames Water creditors submit new plan to Ofwat
- £45bn in infrastructure spending planned
- Company could return to stock market if turnaround leaves finances on solid footing
OpenAI worth $500bn as most valuable startup
13:20 , Karl MatchettLeading artificial intelligence firm OpenAI is now worth more than half a trillion dollars.
The company allowed employees and early investors to sell around $6bn worth of shares, it has been reported, giving the company a valuation of $500bn.
It was last valued at $300bn only earlier this year.
It makes the company the largest private startup, surpassing SpaceX which is owned by Elon Musk.
Greggs tell government not to give businesses 'surprises' in Budget
13:00 , Karl MatchettBaked foods high street store Greggs have confirmed their prices are set to increase.
CEO Roisin Currie also warned the government not to hand out more unexpected “surprises” in the Budget after businesses were stung by National Insurance rises.
“It’s quite hard to plan and manage a business when you have a £20 million hit that you hadn’t predicted or weren’t aware was coming,” Ms Currie said.
Tesco shares rise 3.7% as CEO warns Reeves over Budget
12:41 , Karl MatchettShares in Tesco are up 3.7% today after a positive earnings call this morning.
However, Ken Murphy, the chief executive, told Rachel Reeves not to put further pressure on households by making it “harder” for supermarkets to keep prices down, when the Budget is announced in November.
Lucy Rumbold, equity research analyst at Quilter Cheviot, analysed the financial results:
“Tesco posted another beat and raise in its latest results. While its sales slightly lagged expectations, the company more than made up for it through operating efficiency, which flowed through to a beat on the bottom line.
“Tesco’s like for like sales increased by 4.3% for the group, with strength continuing to come from the UK with sales growth at 4.9% and Ireland at 4.8%, driven by volumes and good weather.”
Fintech firm joins calls to abolish stamp duty on buying shares
12:20 , Karl MatchettFintech firm Saxo have joined the calls to ask the government to remove all stamp duty charges on buying British shares.
Most wealth managers and investment firms have long since pointed out the near-irrelevance of the income derived from it for the Treasury, as well as the fact it’s a barrier for Brits to buy domestic firms.
There is no stamp duty payable when buying stock in US companies, for example, but a fee of 0.5 per cent is charged when investing in most London-listed companies.
“Stamp duty on share trading should be abolished across the board if the UK is serious about revitalising its capital markets,” a statement from Saxo read.
“The UK is now an outlier internationally, with very few other markets applying such a levy. At just 0.4% of overall tax receipts, stamp duty is a negligible contributor to Treasury reserves, especially when set against the financial services industry’s role in generating around 12% of total national tax revenue.”
Gen Zs have higher expectation for retirement - but a fifth are yet to start saving
12:00 , Karl MatchettNew research from wealth firm AJ Bell shows that young people are increasingly aware of the need to save vast sums for retirement.
However, worrying trends come at both ends of the age spectrum, with more than 20% of young adults yet to start saving anything for retirement and 15% of 60-78 year olds saying the same.
“Our research shows that younger Brits have higher expectations for retirement, highlighting the importance of long-term planning and suggesting these generations are aware of the need to put their own money away towards their goals,” said Charlene Young, senior pensions and savings expert at AJ Bell.
“On average, Gen Z – those aged between 18 and 27 – stated that they’d need £46,000 in annual income to enjoy a comfortable retirement, compared to Boomers who thought that £24,000 a year would be sufficient.
“Younger Brits are optimistic that this is within reach, with 18-34 year olds stating they expect they’ll have around £460,000 in retirement savings on average by the time they stop work, compared to the £200,000 for those already 55 and over.
“What is concerning is the large number of respondents who don’t have any money in their pension. A fifth (21%) of Gen Z respondents stated that they currently have no retirement savings, with 15% of Boomers – the age 60 to 78 bracket – yet to retire saying the same.”
David Beckham bags £26m payout after record year for brands
11:40 , Karl MatchettSir David Beckham has cashed in on a £26 million payout from his media, fashion and sports empire following a record year of profits.
The former sportsman and businessman embarked on new ventures during 2024 including health supplements and a brand partnership with Stella Artois.
DRJB Holdings, the holding company combining all his brands, reported an underlying pre-tax profit of 44.9 million US dollars (£33.2 million) for 2024, a surge of 24% on the previous year.
Full details:
One in six businesses have no cash reserves
11:20 , Karl MatchettThe latest ONS figures today paint a pretty mixed picture of UK businesses.
Approximately one in six (17%) trading businesses reported they had no cash reserves in late September 2025, says the release - the largest proportion since the question was introduced in mid-2020.
However, more than a quarter (26%) reported that they currently have no debt obligations. That figure is down slightly from late June.
FTSE 100 flat as European stocks soar
11:00 , Karl MatchettNo movement at all really on the FTSE 100 today - after a couple hours trading the index is at -0.02 per cent.
Contrast that with a surge in European equities, with the DAX up 1.1% and France’s CAC 40 up 1% too.
“Yesterday, the FTSE 100 bucked a weak market open by rising above its peers in Europe. Today, it’s done the opposite,” says Russ Mould, investment director at AJ Bell.
“Strength among financials and miners wasn’t enough to offset weakness in utilities, tobacco and energy stocks.
“Experian’s shares tumbled after the emergence of a new competitive threat. Analytics software group FICO launched a new service that it believes could make US mortgage brokers and lenders less reliant on credit agencies such as Experian to calculate consumer credit risk.”
Thames Water could return to stock market under creditor plans
10:33 , Karl MatchettOne of the long-term plans for the restructuring of Thames Water is for it to return to the stock market in an eventual float.
That’s noted in the creditors’ plan as the eventual goal, once the turnaround is completed and the firm becomes a viable concern again financially.
Thames Water’s gross debt would come down from over £20bn to £14.5bn, but smaller creditors (class B) would receive nothing in return for almost £1bn in loans.
There is a notional 22 October deadline but the Times report this is unlikely to be a meaningful one.
Ten-year plan suggests more than £45bn in infrastructure boosts
10:02 , Karl MatchettPart of the plan submitted by the creditors concerns how much they will spend on improving infrastructure.
That capital expenditure is split into two sections: the five years through to 2030 deemed a catch-up period, and the five years thereafter.
A total of £20.5bn of investment is to come in that first five years with a further £24.9bn afterward.
Thames Water lenders propose new rescue deal to prevent collapse
09:44 , Karl MatchettA group of Thames Water lenders has put forward a new rescue deal for the struggling supplier pledging an extra £1 billion in investment, and plans to write off around a third of the firm’s near-£20 billion debt pile.
London & Valley Water – a consortium of the supplier’s main creditors, including investors and financial institutions – said its offer was “more ambitious, delivers greater value for customers and follows three months of discussion with and feedback from Ofwat” to help turn around Thames Water.
The group said its extra £1 billion of investment, on top of the proposal submitted in May, would “ensure long-term financial resilience” and cover existing fines Thames Water must pay for regulatory and pollution failures.
More from PA:
Thames Water lenders propose new rescue deal to prevent collapse
Thames Water creditors submit new plan to Ofwat
09:22 , Karl MatchettToday sees London & Valley Water - the group of firms who hold a lot of the debt of Thames Water - put forward new proposals to Ofwat.
The headline figures included are £4bn of debt written off by class A investors, compared with their earlier offer of £3.2bn.
No dividends are to be paid out during the turnaround period, and in return for the writedowns they are seeking renegotiated targets for pollution incidents and leakage.
Mike McTighe, who would be the future chair of Thames if the plans are greenlighted, said:
“There is a huge amount of work to be done to turn around Thames Water and deliver the improved service and environmental outcomes that customers and local communities deserve.
“From day one, we will inject billions in new investment, strengthen Thames Water’s balance sheet, transform the company for thousands of hard-working frontline staff and begin the delivery of an operational turnaround that puts 16 million customers and the environment first.”
Business and Money - 2 October
09:00 , Karl MatchettMorning all - as usual, plenty to get through this morning.
Key names featuring include Tescos, Greggs, Elon Musk and...David Beckham. Why not?
We’ll start with Thames Water though and try to unravel some of the latest mess.
