Business news live: UK inflation update, plus bitcoin and FTSE 100 hits new record highs

Nvidia became the world’s first-ever $4 trillion-valued company during Wednesday’s trading session after its share price initially rose more than two per cent above $164. Domestically, the FTSE 100 has started positively on Thursday, hitting a new all-time high after rising one per cent in morning trading. Bitcoin also hit a new high above $111,000.

Chancellor Rachel Reeves, however, faced more pressure for her Mansion House speech next month as building societies banded together to write a letter pleading for the cash ISA limit to not be cut.

Meanwhile, wealth tax talks continue to generate debate as Keir Starmer didn’t rule it out, but also said the country couldn’t just “tax our way to growth”. Economics experts have told The Independent such a ruling wouldn’t work to bridge the public purse funding gap and could have an adverse effect on longer-term finances.

Follow The Independent’s live coverage of the latest stock market and business news here:

Business news live - Thursday 10 July

• Nvidia hits record $4tn valuation - first company to reach milestone
• Royal Mail to stop second-class post deliveries on Saturdays
• FTSE 100 rises to new record high
• Bitcoin holds steady after hitting record $111,000
• UK inflation expected to remain unchanged at 3.4 per cent for June

Vistry welcomes ‘unprecedented’ funding to boost building of affordable homes

12:56 , PA

Housebuilder Vistry has welcomed “unprecedented” Government funding for cheaper homes in the UK, as it said affordability challenges for first-time buyers have persisted.

The London-listed company said it was expecting lower profits for the first half of its financial year after selling fewer homes.

It completed the sale of 6,800 homes over the first six months of the year – less than the 7,792 it sold the same time last year.

Nearly three quarters of the total Incorporated homes sold for its partners – which include housing associations, local authorities, and private rent groups – while the rest was for the open housing market.

Vistry said demand from its affordable housing partners was weaker due to uncertainty ahead of the Chancellor’s spending review in June.

FTSE 100 continues to rise - but US stocks projected to fall

11:30 , Karl Matchett

The FTSE 100 is still on the rise today, now up 1.1 per cent approaching midday.

That’s despite fresh tariff threats from the US over various sectors, including a potential 200 per cent tariff on pharmaceuticals.

AstraZeneca, the biggest company on the index in the UK, rose more than two per cent this morning.

In the US, however, the S&P 500 is projected to fall by 0.15 per cent according to futures markets, with the Nasdaq set to drop 0.1 per cent.

In Europe, the German DAX is up 0.3 per cent with France’s CAC 40 up 0.68 per cent.

Water company agrees to pay £24 million after sewage leaks

11:00 , Karl Matchett

A water company has agreed to pay £24 million after the water regulator found a “range of failures” in how the water company managed its wastewater treatment works and sewer network.

South West Water will pay the sum after an Ofwat investigation found the company had spilled wastewater in the environment when it should not have done.

A lack of adequate management systems, including oversight from its senior leaders and board, meant it did not meet its legal obligations.

South West Water proposed the £24 million enforcement package, to be paid by the company and its shareholders, to invest in its systems and address the failures.

More from Anna Wise, PA:

Water company agrees to pay £24 million after sewage leaks

First-time buyers to get mortgage boost after key Bank of England rules change

10:46 , Karl Matchett

First-time buyers could get wider access to mortgages after the Bank of England (BoE) loosened its rules on lending.

Until now, just under 10 per cent of new mortgages issued are for valuations exceeding 4.5 times the income of a borrower.

That is now set to rise to 15 per cent across the industry, with some building societies and banks now able to offer an even higher number of new mortgages at that level.

BoE estimates suggest 36,000 extra mortgages with higher loan-to-income ratios could be handed out each year as a result of the change.

First-time buyers to get mortgage boost after key lending rule change

Barclays announce another raft of mortgage rate cuts

10:33 , Karl Matchett

Barclays have made another round of cuts to mortgage rates, following one earlier this week - the battle is really ramping up between lenders with hundreds of thousands of fixed deals expiring across the rest of the year.

There are several sub-4 per cent products on offer across the industry now and Barclays have added another few - in particular what they claim is the joint-lowest rate on the remortgage market.

That’s a 3.83% EMC Reward 2 Year Fixed deal, for a £999 product fee at 60% loan to value.

UK inflation expected to hold at 3.4 per cent

10:00 , Karl Matchett

Barclays analysts expect next week’s official inflation data to show the headline CPI rate to hold unchanged for June.

In May it was 3.4 per cent, unchanged from April once an original error was factored in, so this would represent a third straight month of steady inflation rate.

Within the figures, Barclays expect services to decrease but food price inflation to continue increasing.

Notably, they do not expect the data to push the Bank of England away from an expected interest rate cut next month.

Bitcoin holds after hitting new all time highs

09:40 , Karl Matchett

It’s not just the FTSE 100 at a new high.

Some time shortly after 3am today, bitcoin pushed above the $110,000 glass ceiling it had been testing for quite a while, setting a new all-time record.

It briefly hit around $111,450 before pulling back a little - but daytime trading is fairly solid so far and the leading cryptocurrency is sat just above $111,300 now.

FTSE 100 surges to new record high

09:28 , Karl Matchett

Big morning for the FTSE 100 - it’s up very nearly a full one per cent to a new all-time high.

The big miners are posting the largest gains in morning trading - Anglo American, Rio Tinto and Glencore are all up between 3.9 and 4.5 per cent - but there are plenty of rising stocks elsewhere.

WPP has recovered 3 per cent this morning after yesterday’s huge drop, with most of the financials up more than 1 per cent too.

Revolut seek $1bn in funding - British bank would have $65bn valuation

09:19 , Karl Matchett

Digital bank Revolut is continuing its expansion plans by seeking to raise $1bn (£730m) through a sale of existing and new shares.

The British-based bank would be valued at $65bn (£48bn) in total, up from $45bn last year, reports the FT.

Revolut this week launched an investing ISA for UK users within the app. It has around 50m customers worldwide.

Bull run continues in US stocks after Nvidia milestone

08:40 , Karl Matchett

Nvidia hit headlines again last night after briefly crossing the line into $4tn territory.

That has been indicative of another positive momentum run for stocks in general, says Chris Beauchamp, chief market analyst at IG

“Nvidia’s brief ascent to a $4 trillion market cap marks a defining moment for markets and underscores the extent to which artificial intelligence is driving investor enthusiasm. Its 1.8% gain on Wednesday did more than lift tech sentiment; it helped push global equities higher. European indices surged to new highs, brushing aside Trump’s latest tariff threats, and Wall Street followed with the Nasdaq closing at another record. “

WPP appoint new CEO the day after shares drop 18%

08:19 , Karl Matchett

Advertising firm WPP have appointed a new chief executive, one day after the share price dropped more than 18 per cent.

The FTSE 100 firm has lost a key Mars contract this year and posted a profit warning this week.

Cindy Rose has been a non-executive director at the firm since 2019, and will now take over as CEO from 1 September.

Ms Rose has spent most of the last decade at Microsoft and was chief operating officer of global enterprise.

Royal Mail to scrap second-class Saturday post

08:05 , Karl Matchett

Big change for Royal Mail, as they’ve been given the green light to scrap second-class Saturday deliveries.

The reason given by the regulator is to guarantee the survival of the regular delivery service, with the number of letters sent having halved over the past 14 years.

From 28 July, Royal Mail will deliver second class post on alternate weekdays, but not on Saturdays.

It should allow a saving of up to £400m for Royal Mail to reinvest into other delivery services.

Natalie Black, Ofcom’s Group Director for Networks and Communications, said:

“These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival.

“But changing Royal Mail’s obligations alone won’t guarantee a better service – the company now has to play its part and implement this effectively. We’ll be making sure Royal Mail is clear with its customers about what’s happening, and passes the benefits of these changes on to them.”

Bank of England reject key component of Labour's growth plan

07:29 , Karl Matchett

Bank of England governor Andrew Bailey has said he disagrees with Labour proposals to force pension funds to make bigger investments in domestic assets.

“I do not support mandating, I don’t think that’s appropriate,” he said.

Mr Bailey stressed pensions reform is needed.

The CEO of Lloyds Bank recently said the mandates reminded him of the approach in communist China.

Building societies pen open letter to chancellor to not cut Cash ISA

07:16 , Karl Matchett

Rachel Reeves is under fresh pressure not to cut the cash ISA limit after building societies penned an open letter to the chancellor, describing them as “a vital role in the broader economy”.

The chancellor is expected to announce a cut from the current £20,000 per person annual allowance during her Mansion House speech on July 15, as part of a push to encourage people to invest more widely.

But the Building Societies Association (BSA) is now pleading with her to leave the popular savings product untouched.

Building societies send open letter to Rachel Reeves in fight to save cash ISAs

Nvidia hits $4tn market cap - first company to reach milestone

07:07 , Karl Matchett

Chip-maker Nvidia yesterday became the first company to surpass a $4 trillion valuation, with another recent share price surge seeing it beat Apple and Microsoft to the milestone.

Shares rose more than 2 per cent early on in Wednesday’s trading before dipping back soon after, as profit-taking ensued.

Matt Britzman, a senior equity analyst at Hargreaves Lansdown, labelled it a “historic” moment and suggested the stock could yet rise higher, given earnings valuations and market share dominance.

Business news live - Thursday 10 July

06:58 , Karl Matchett

Good morning and welcome back to another day of business news on The Independent.

Coming up we’ve got stock market news, the latest on the wealth tax debate, UK economic data and more to come.