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| US stocks fall as Google block on Huawei adds to trade tensions – business live | |
| (about 1 hour later) | |
| A lot of US tech stocks are suffering from the Huawei fallout, but the American telecoms sector has had some good news today. | |
| Sprint shares are up by 26% after regulators said a merger with T-Mobile could continue. | |
| The chairman of the US Federal Communications Commission says he plans to recommend the agency approve the $26.5bn merger of wireless carriers T-Mobile and Sprint, saying it’ll speed up 5G deployment in the US. | |
| FCC Chairman Ajit Pai also said Monday that the combination will help bring faster mobile broadband to rural Americans. | |
| The major US stock market indices have fallen at the opening bell in Wall Street trading. | |
| The tech-heavy Nasdaq fell by 1.25%, while the S&P 500 fell o.68% and the Dow Jones industrial average lost 0.55% at the open. | |
| With a few minutes to go to the opening bell on Wall Street, a quick update on futures prices: | |
| Nasdaq 100 futures are down by 1.6%, Dow Jones industrial average futures are down by 0.7%, and S&P 500 futures have lost 0.8%. | |
| Until the end of last year Thomas Cook was still in the FTSE 250 index tracking mid-cap stocks – hardly matching its heyday as one of London’s blue-chip stocks, but still hanging in there. Now, however, it is truly in the ranks of penny stocks. | |
| The venerable tour operator – in all likelihood the world’s oldest – has lost a few more of those pennies in trading today. Shares are down by 15% today, to 10.1p. | |
| There is not much new today – and big share moves need to be taken with a pinch of salt when a valuation has shrunk so dramatically – but it confirms that investors are really weighing up whether the company can continue to trade as it is. Even the usually cautious Financial Times raised the prospect of collapse in its weekend edition. | |
| FT WEEKEND: Thomas Cook risks collapse as stock dives #tomorrowspaperstoday pic.twitter.com/ezEgitFCPe | |
| Today’s fall follows a 40% collapse over the course of Friday. That was prompted by a City investment bank report that shares were essentially worthless. | |
| Thomas Cook shares 'worthless' after Citigroup warning | |
| I think we can call this a sell-off now on European stock markets. | I think we can call this a sell-off now on European stock markets. |
| The FTSE 100 is the strongest across the major indices at lunchtime in London, down by 0.9%. Germany’s Dax and France’s Cac 40 are down by 1.6% each, while Italy’s FTSE MIB has lost 2.7%. | The FTSE 100 is the strongest across the major indices at lunchtime in London, down by 0.9%. Germany’s Dax and France’s Cac 40 are down by 1.6% each, while Italy’s FTSE MIB has lost 2.7%. |
| Futures for US indices are still calling a lurch lower at the open on Wall Street. | Futures for US indices are still calling a lurch lower at the open on Wall Street. |
| Shares in FTSE 100-listed Coke bottler, Coca-Cola Hellenic Bottling Company, have fallen steeply after the separate Coca-Cola Company reversed plans to franchise its African bottling business. | Shares in FTSE 100-listed Coke bottler, Coca-Cola Hellenic Bottling Company, have fallen steeply after the separate Coca-Cola Company reversed plans to franchise its African bottling business. |
| Coca-Cola HBC was seen as a prime contender to take on the African operation. | Coca-Cola HBC was seen as a prime contender to take on the African operation. |
| Shares were down by 7.4% at the time of writing. | Shares were down by 7.4% at the time of writing. |
| The New York Times report alleged that transactions involving Trump’s foundation set off suspicious activity alerts on Deutsche Bank’s systems. However, the bank allegedly did not report the transactions to regulators. | The New York Times report alleged that transactions involving Trump’s foundation set off suspicious activity alerts on Deutsche Bank’s systems. However, the bank allegedly did not report the transactions to regulators. |
| Deutsche Bank denied the report. | Deutsche Bank denied the report. |
| “At no time was an investigator prevented from escalating activity identified as potentially suspicious,” Deutsche Bank said in a statement. “Furthermore, the suggestion that anyone was reassigned or fired in an effort to quash concerns relating to any client is categorically false.” | “At no time was an investigator prevented from escalating activity identified as potentially suspicious,” Deutsche Bank said in a statement. “Furthermore, the suggestion that anyone was reassigned or fired in an effort to quash concerns relating to any client is categorically false.” |
| It comes at a difficult time for Deutsche Bank, after it was forced to abandon merger plans with Commerzbank. It has also struggled to turn around its corporate and investment bank. | It comes at a difficult time for Deutsche Bank, after it was forced to abandon merger plans with Commerzbank. It has also struggled to turn around its corporate and investment bank. |
| US President Donald Trump has denied reports that employees at German lender Deutsche Bank flagged concerns over money laundering. | US President Donald Trump has denied reports that employees at German lender Deutsche Bank flagged concerns over money laundering. |
| The New York Times reported on Sunday that anti-money-laundering specialists at Deutsche Bank recommended in 2016 and 2017 that multiple transactions involving legal entities controlled by Trump and his son-in-law, Jared Kushner, be reported to a federal financial-crimes watchdog. | The New York Times reported on Sunday that anti-money-laundering specialists at Deutsche Bank recommended in 2016 and 2017 that multiple transactions involving legal entities controlled by Trump and his son-in-law, Jared Kushner, be reported to a federal financial-crimes watchdog. |
| Trump described the NYT’s reporting as “phony” and described Detusche Bank as “very good and highly professional”, in a barrage of tweets posted early on Monday in the US. | Trump described the NYT’s reporting as “phony” and described Detusche Bank as “very good and highly professional”, in a barrage of tweets posted early on Monday in the US. |
| ....Now the new big story is that Trump made a lot of money and buys everything for cash, he doesn’t need banks. But where did he get all of that cash? Could it be Russia? No, I built a great business and don’t need banks, but if I did they would be there...and DeutscheBank...... | ....Now the new big story is that Trump made a lot of money and buys everything for cash, he doesn’t need banks. But where did he get all of that cash? Could it be Russia? No, I built a great business and don’t need banks, but if I did they would be there...and DeutscheBank...... |
| .....was very good and highly professional to deal with - and if for any reason I didn’t like them, I would have gone elsewhere....there was always plenty of money around and banks to choose from. They would be very happy to take my money. Fake News! | .....was very good and highly professional to deal with - and if for any reason I didn’t like them, I would have gone elsewhere....there was always plenty of money around and banks to choose from. They would be very happy to take my money. Fake News! |
| The report contributed to Deutsche Bank shares falling to a record low on Monday morning. Shares in the German lender were down by 2.8% at the time of writing. | The report contributed to Deutsche Bank shares falling to a record low on Monday morning. Shares in the German lender were down by 2.8% at the time of writing. |
| Confirmation that Jaguar Land Rover’s annual loss was the largest in its history. | Confirmation that Jaguar Land Rover’s annual loss was the largest in its history. |
| Britain’s largest carmaker, owned by India’s Tata Motors, pointed to a return to profitability in the fourth quarter of the year, when it recorded a £120m pretax profit, writes the Guardian’s Rob Davies. | Britain’s largest carmaker, owned by India’s Tata Motors, pointed to a return to profitability in the fourth quarter of the year, when it recorded a £120m pretax profit, writes the Guardian’s Rob Davies. |
| But the improvement was overshadowed by the vast loss for the year as a whole, which was mostly because of a writedown it took in the third quarter of the year. | But the improvement was overshadowed by the vast loss for the year as a whole, which was mostly because of a writedown it took in the third quarter of the year. |
| Here’s the full write-up of the JLR results: | Here’s the full write-up of the JLR results: |
| Jaguar Land Rover reports record £3.6bn loss | Jaguar Land Rover reports record £3.6bn loss |
| It’s also worth noting that Jaguar Land Rover revenues fell by £1.6bn year-on-year to £24.2bn – a 6% decline. | It’s also worth noting that Jaguar Land Rover revenues fell by £1.6bn year-on-year to £24.2bn – a 6% decline. |
| Slumping Chinese sales have been JLR’s big problem. The company underperformed rivals in the region, and has seen annualised sales falls of over 40% in recent months. | Slumping Chinese sales have been JLR’s big problem. The company underperformed rivals in the region, and has seen annualised sales falls of over 40% in recent months. |
| *This post has been edited to add in the annual revenues figure. | *This post has been edited to add in the annual revenues figure. |
| JLR’s messaging around the results is emphasising its turnaround plans. It announced 4,500 job losses in January in a bid to realise £2.5bn in cost cuts and efficiency savings. | JLR’s messaging around the results is emphasising its turnaround plans. It announced 4,500 job losses in January in a bid to realise £2.5bn in cost cuts and efficiency savings. |
| Ralf Speth, Jaguar Land Rover chief executive, said: | Ralf Speth, Jaguar Land Rover chief executive, said: |
| Jaguar Land Rover has been one of the first companies in its sector to address the multiple headwinds simultaneously sweeping the automotive industry. We are taking concerted action to reduce complexity and to transform our business through cost and cash flow improvements. | Jaguar Land Rover has been one of the first companies in its sector to address the multiple headwinds simultaneously sweeping the automotive industry. We are taking concerted action to reduce complexity and to transform our business through cost and cash flow improvements. |
| The company has returned to profitability in the fourth quarter and already delivered £1.25 billion of efficiencies and savings. | The company has returned to profitability in the fourth quarter and already delivered £1.25 billion of efficiencies and savings. |
| Speth said the JLR is now “a transformed company that is leaner and fitter” after facing “structural and cyclical issues” in the past year. | Speth said the JLR is now “a transformed company that is leaner and fitter” after facing “structural and cyclical issues” in the past year. |
| Jaguar Land Rover lost £358m in its last financial year – before taking into account £3.3bn in previously reported exceptional costs mostly associated with an accounting writedown. | Jaguar Land Rover lost £358m in its last financial year – before taking into account £3.3bn in previously reported exceptional costs mostly associated with an accounting writedown. |
| Britain’s largest carmaker, which is owned by India’s Tata Motors, said revenues came in at £7.1bn in the fourth quarter of the year ending on 31 March. | Britain’s largest carmaker, which is owned by India’s Tata Motors, said revenues came in at £7.1bn in the fourth quarter of the year ending on 31 March. |
| The results for the year were always going to be overshadowed by a £3.1bn writedown on the value of its investments in the previous quarter, after it was forced to acknowledge that investments in China were less valuable than previously thought. | The results for the year were always going to be overshadowed by a £3.1bn writedown on the value of its investments in the previous quarter, after it was forced to acknowledge that investments in China were less valuable than previously thought. |
| JLR made profits of £269m in the fourth quarter, before exceptional costs related to its restructuring. | JLR made profits of £269m in the fourth quarter, before exceptional costs related to its restructuring. |
| US stock market futures suggest that trade tensions are going to take their toll again. | US stock market futures suggest that trade tensions are going to take their toll again. |
| Nasdaq futures prices suggest the tech-heavy index will fall by 1.1%. Futures for the Dow Jones industrial average are down by 0.4%, and by 0.5% for the S&P 500. | Nasdaq futures prices suggest the tech-heavy index will fall by 1.1%. Futures for the Dow Jones industrial average are down by 0.4%, and by 0.5% for the S&P 500. |
| Neil MacKinnon, global macro strategist at Russian investment bank VTB Capital, said: | Neil MacKinnon, global macro strategist at Russian investment bank VTB Capital, said: |
| The recent escalation in the US-China trade dispute threatens to worsen the outlook for world trade at a time when trade volumes exhibit negative growth as well as dampening hopes of a recovery in the global economy. This is unsettling equity markets and increasing the risk of a stiff correction. | The recent escalation in the US-China trade dispute threatens to worsen the outlook for world trade at a time when trade volumes exhibit negative growth as well as dampening hopes of a recovery in the global economy. This is unsettling equity markets and increasing the risk of a stiff correction. |
| BP is not happy with the Greenpeace protestors blockading their offices. The activists earlier abseiled down from the top of the building and put letters reading “climate emergency” over the office windows. | BP is not happy with the Greenpeace protestors blockading their offices. The activists earlier abseiled down from the top of the building and put letters reading “climate emergency” over the office windows. |
| BP said that impeding safe entry and exit from the building was dangerous and “clearly a matter for the police to resolve as swiftly as possible.” | BP said that impeding safe entry and exit from the building was dangerous and “clearly a matter for the police to resolve as swiftly as possible.” |
| Greenpeace intends to stay there for a week. The BP statement added: | Greenpeace intends to stay there for a week. The BP statement added: |
| We welcome discussion, debate, even peaceful protest on the important matter of how we must all work together to address the climate challenge. | We welcome discussion, debate, even peaceful protest on the important matter of how we must all work together to address the climate challenge. |
| Ryanair shares are down by 3.4%, after profits for its last financial year fell by 30%. | Ryanair shares are down by 3.4%, after profits for its last financial year fell by 30%. |
| The budget airline predicted another slide in profits in the current year, as air fares fell on the back of Brexit uncertainty and fierce competition in Europe, writes the Guardian’s Julia Kollewe. | The budget airline predicted another slide in profits in the current year, as air fares fell on the back of Brexit uncertainty and fierce competition in Europe, writes the Guardian’s Julia Kollewe. |
| Michael O’Leary, the Ryanair chief executive, said fares would continue to fall in the UK and Germany, pointing to consumer nervousness about Brexit. “There is a later booking pattern and we’re having to stimulate bookings with lower air fares,” he said. | Michael O’Leary, the Ryanair chief executive, said fares would continue to fall in the UK and Germany, pointing to consumer nervousness about Brexit. “There is a later booking pattern and we’re having to stimulate bookings with lower air fares,” he said. |
| Profits were also dragged down by higher fuel costs and cabin crew strikes last summer. Ryanair’s staff bill rose by €200m, including a 20% pay increase for pilots. | Profits were also dragged down by higher fuel costs and cabin crew strikes last summer. Ryanair’s staff bill rose by €200m, including a 20% pay increase for pilots. |
| You can read more on Ryanair’s troubles here: | You can read more on Ryanair’s troubles here: |
| Ryanair profits slide due to lower fares and Brexit uncertainty | Ryanair profits slide due to lower fares and Brexit uncertainty |
| It looks like that retreat in oil price futures is starting to tell on the FTSE 100. Brent futures are still up by 0.4% for the day, but are now trading at $72.50 per barrel, after earlier hitting $73.40. | It looks like that retreat in oil price futures is starting to tell on the FTSE 100. Brent futures are still up by 0.4% for the day, but are now trading at $72.50 per barrel, after earlier hitting $73.40. |
| The FTSE 100 has rapidly dropped back; there are now no companies up by more than 1%, and the broader index is down by 0.6%. | The FTSE 100 has rapidly dropped back; there are now no companies up by more than 1%, and the broader index is down by 0.6%. |