China snubs Boeing to strike huge new deal with Airbus

1 month ago 19
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Airbus Beluga  - REUTERS/Christian Mang

Airbus Beluga - REUTERS/Christian Mang

China has snubbed troubled craft shaper Boeing aft 3 of its nationalist emblem carriers placed orders worthy $37bn (£31bn) with rival Airbus.

China Eastern Airlines has agreed to bargain 100 A320neo narrow-body jets from Airbus, portion Air China volition instrumentality 64 units and its Shenzhen Airlines subsidiary is acquiring 32 more.

China Southern Airlines said earlier it would bargain 96 A320neos and lease further planes.

The combined bid of 292 planes is 1 of the biggest ever for Netherlands-headquartered Airbus and the archetypal large pitchy bid placed by Chinese airlines successful 3 years. It volition assistance the shaper cement its presumption successful the market, wherever it has a section last assembly line.

The bid is simply a stroke to US-based Boeing. China Southern has historically been Boeing’s biggest customer, but concern has slowed successful the aftermath of 2 crashes of the best-selling 737 Max models successful 2019 and arsenic governmental tensions emergence betwixt Washington and Beijing.

The 737 Max was suspended from usage successful 2019. Chinese authorities allowed it to resume work past twelvemonth aft making a bid of information adjustments.

In March this year, a Boeing 737-800 crashed successful the confederate state of Guangxi, sidesplitting 132 radical successful China's worst aerial catastrophe successful decades.

Last month, the Wall Street Journal reported that US investigators judge idiosyncratic connected committee crashed the craft deliberately.

Airbus said that the deals showed "the affirmative betterment momentum and prosperous outlook for the Chinese aviation market".

It added they "brought to decision these agelong and extended discussions that person taken spot passim the hard Covid pandemic".

06:11 PM

Wrapping up

That's each from america this week, we shall spot you connected Monday! Before you go, cheque retired the latest stories from our reporters:

06:10 PM

Britain's Brexit measure to be €10.9bn this year

Britain's measure to the EU arsenic portion of the Brexit fiscal colony volition travel successful at €10.9bn (£9.4bn) this year.

The UK volition inactive person to wage different €30.9bn arsenic of January 1, 2023. The existent equilibrium is €41.8bn, according to accounts published by the Commission today.

It consists of Britain’s stock of €28.6bn successful commitments made arsenic a subordinate state, positive the EU pension and associated sickness schemes worthy €14.7bn.

05:51 PM

Klarna valuation plummets successful latest backing round

Klarna has launched a caller backing circular that volition spot its valuation plummet to $6.5bn (£5.4bn) from $45.6bn successful 2021.

The Swedish buy-now-pay-later startup is looking to rise $650m, mostly from existing investors led by Sequoia Capital, The Wall Street Journal reports.

This besides shows the bonzer disconnect betwixt radical utilized to buoyant valuations and the world connected the tract

Klarna's CEO 6 weeks ago:

“I’m not convinced. We’ll spot what happens. We’ll see,” helium said erstwhile asked if it would beryllium a “down round”.

— Eliot Brown (@eliotwb) July 1, 2022

05:29 PM

UK stocks nether pressure

UK stocks person been nether unit contiguous aft information showed mill enactment mislaid much steam successful June amid elevated terms pressures, underlining the hazard of a crisp slowdown oregon a recession successful Britain.

The FTSE 100 ended flat, portion the domestically focussed midcap FTSE 250 closed 0.2pc lower.

Both the indexes started the 2nd fractional of 2022 connected a subdued enactment aft a unsmooth archetypal fractional amid worries that accelerated complaint hikes to tame precocious ostentation would trigger a planetary recession.

"Fears rattling fiscal markets amusement small motion of subsiding, with investors spooked astir signs of looming recessions, portion ostentation stays stubbornly high," said Susannah Streeter, elder concern and markets expert at Hargreaves Lansdown.

05:07 PM

Vet steadfast CVS to abort Quality Pet Care acquisition

Portrait of vet holding canine  connected  array  successful  veterinary country    - Monty Rakusen/Cultura RF

Portrait of vet holding canine connected array successful veterinary country - Monty Rakusen/Cultura RF

Vet steadfast CVS volition instrumentality a £12m hit to profits aft being forced to abort an acquisition pursuing an probe by the marketplace contention watchdog.

CVS acquired Quality Pet Care for £20m in August past twelvemonth but announced it has present sold the institution for £9m.

The Competition Markets Authority concluded large-scale vet mergers reduced contention and led favored owners successful immoderate section areas to person insufficient alternatives for veterinary care.

CVS besides announced it has bought North Lincolnshire vet signifier Old Courts Veterinary Centre successful a £3m woody arsenic it proceeds with acquisitions to nett from the caller roar successful favored ownership.

04:45 PM

Investor Robert Tchenguiz ordered to wage £1.3m to CMC Markets

Investor Robert Tchenguiz has been ordered to wage £1.3m to an online spread-betting institution aft losing a ineligible spat wherever helium was accused of failing to wage his debt.

CMC Spreadbet, a portion of CMC Markets, sued Tchenguiz aft the indebtedness racked up during marketplace turmoil linked to the coronavirus pandemic. The nonaccomplishment arose aft shares successful FirstGroup, a transport operator, tanked successful March 2020.

But the British tycoon claimed CMC breached its declaration by closing retired his account.

Tchenguiz “did not look to person been acrophobic to work the warnings helium was given” oregon to person checked details that showed “he considered helium knew what helium was doing,” Judge David Elvin said successful the ruling.

04:25 PM

Chinese airlines spot $37bn bid with Airbus successful stroke to Boeing

China is snubbing troubled craft shaper Boeing arsenic 3 flagship carriers placed orders worthy $37bn (£31bn) successful full with rival Airbus.

The combined bid of 292 planes is 1 of the biggest ever for Airbus, which is headquartered successful the Netherlands, and the archetypal large 1 for China successful 3 years.

It volition assistance the shaper cement its presumption successful the market, supported by a section last assembly line, successful a stroke to US-based Boeing.

China Southern has historically been Boeing’s biggest customer, but concern has slowed successful the aftermath of 2 crashes of the best-selling 737 Max exemplary and arsenic governmental tensions emergence betwixt Washington and Beijing.

04:08 PM

Handing over

That's each from maine for contiguous – acknowledgment for following! Giulia Bottaro will spot you done to the weekend.

03:55 PM

Markets facing 'recession shock', warns Bank of America

A "recession shock" volition present statesman for markets pursuing the worst archetypal fractional of the twelvemonth for Wall Street successful much than 50 years.

That's according to economists astatine Bank of America, who said the bank's bull and carnivore indicator remained astatine "maximum bearish" for the 3rd week successful a row.

While expectations of assertive involvement complaint rises by the Federal Reserve are peaking, ostentation expectations are not.

Stocks astir the globe person suffered their worst commencement to the twelvemonth connected grounds amid fears of a looming recession. The S&P 500 has had its worst archetypal fractional since 1970.

BoA said some stocks and bonds were rocked by outflows this week arsenic investors pulled their wealth retired of the market.

About $5.8bn exited planetary banal funds successful the week to June 29, though US equities saw tiny inflows of astir $0.5bn.

Read more: $13 trillion wiped disconnected markets successful worst six months connected record

03:38 PM

US manufacturing maturation slows to two-year low

A measurement of US manufacturing enactment slumped to its lowest level successful 2 years successful June arsenic caller orders contracted successful a motion that request is starting to slow.

The Institute for Supply Management's gauge decreased to 53 past period from 56.1 successful May, falling abbreviated of economists' expectations.

The group's scale of caller orders dropped astir six points to 49.2, the weakest effect since May 2020 erstwhile the system began its betterment from the archetypal Covid shock.

The diminution successful caller orders reflects the compression connected user spending arsenic ostentation rises and inventories heap up.

⚠️ ISM falls to 53 which confirms marketplace fears that the US system is slowing down rapidly. New orders astatine 49.2... lowest since May '20... isn't pretty. Neither is employment astatine 47.3. Inflation-focused Fed has caused enslaved yields to spell against ISM trend. This volition alteration present $USD

— Viraj Patel (@VPatelFX) July 1, 2022

03:21 PM

Female doc incapable to publication BA flights arsenic 'title and sex bash not match'

British Airways has been forced to apologise implicit a "glitch" that bars women from utilizing the rubric doc erstwhile booking flights online, writes Oliver Gill.

The emblem bearer said it was "urgently investigating" issues with its website pursuing a lawsuit complaint.

An American traveller, Juliana Kling, posted a representation of BA’s website connected Twitter on with the comment: “Apparently ‘Dr’ and ‘woman’ bash not lucifer connected British Airways. Looking guardant to their reply.”

A BA spokesperson said: "We’re atrocious for a method contented that has occurred successful 1 driblet down container connected our website and we're urgently investigating."

​Read Ollie's afloat communicative here

03:08 PM

Gucci's erstwhile London HQ up for merchantability arsenic £55m mansion

Gucci's erstwhile London office person been enactment up for merchantability for £55m aft being transformed into the astir costly location presently connected merchantability successful Mayfair.

The location connected Grafton Street, besides disposable to lease for £40,000 a week, includes 8 bedrooms, a plot terrace, a swimming pool, conservatory and prima room, Bloomberg reports.

It was constructed successful the 1700s and was erstwhile the London base of Lord Brougham, who entertained Queen Victoria and the 1st Duke of Wellington astatine the spot successful his relation arsenic Lord Chancellor.

A merchantability would beryllium the latest high-profile woody successful the superior aft Swiss billionaire Ernesto Bertarelli bought a location successful Belgravia for £92m.

02:52 PM

Budweiser strikes to proceed aft talks collapse

Budweiser - AP Photo/Gene J. Puskar

Budweiser - AP Photo/Gene J. Puskar

A planned onslaught by Budweiser workers volition spell up this period aft situation talks collapsed.

The GMB national said bosses had projected a "derisory" wage connection of 3pc and told unit they would not beryllium capable to assertion backmost wage if the woody was not agreed by 21 July.

The 36-hour walkout volition tally from Saturday 16 July astatine 7pm until Monday 16 July at 7am, with a further 12-hour stoppage connected Tuesday 19 July.

Workers astatine the tract successful Salmesbury in Lancashire person already walked retired respective times successful June implicit the wage dispute.

Stephen Boden, GMB Organiser, said:

We volition not beryllium intimidated by their bully lad tactics. It’s disgraceful they would endanger to instrumentality wealth retired of workers' pockets during a cost-of-living crisis.

02:36 PM

Wall Street opens little successful gloomy commencement to 2nd half

Wall Street's main indices person opened lower, starting the 2nd fractional of the twelvemonth connected a dull note as investors worry about the deed to economical maturation from assertive involvement complaint rises.

The S&P 500 and Dow Jones some slipped 0.1pc, portion the tech-heavy Nasdaq was down 0.2pc.

02:17 PM

Vatican sells London gathering astatine bosom of corruption trial

The Vatican has sold a London gathering astatine the centre of an ongoing corruption proceedings to Bain Capital successful a £186m deal.

The Holy See is investigating however much than $200m of donations fixed to the Church for charitable activities was spent connected the acquisition of 60 Sloane Avenue successful Chelsea.

Ten radical including a cardinal and 2 Italian fiscal brokers are connected proceedings successful the Vatican connected charges including embezzlement, fraud, wealth laundering and extortion.

The Vatican said losses from the woody had been covered by its reserve funds, adding that donations from the faithful had not been used.

01:53 PM

Brexit not to blasted for question chaos, says HSBC

Brexit is improbable to beryllium to blasted for travel chaos astatine airports, HSBC has said, arsenic a shortage of aviation workers is worse successful America and “at slightest arsenic aggravated elsewhere successful Europe”.

Oliver Gill has more:

Analysts astatine HSBC noted that portion it was "intuitive" to assume stricter migration rules post-Brexit were the cardinal operator of staffing shortages that person wreaked havoc connected millions of British holidaymakers, it added that determination was grounds to the contrary elsewhere successful the world.

They said: “The US has a overmuch tighter vacancies-to-unemployment ratio. And portion hose bosses person blamed caller disruption connected Brexit, it seems to beryllium astatine slightest arsenic aggravated elsewhere successful Europe.

"Insofar arsenic Brexit has played into the currency weakness, though, it whitethorn person had an effect connected inflation."

Airlines and airports person bemoaned staffing shortages for the question chaos, with Brexit regularly blamed for being incapable to prosecute capable workers.

01:42 PM

Slug & Lettuce proprietor plots £100m pub sale

Stonegate Pub Company -  Charlie Bibby/Stonegate Pub Company

Stonegate Pub Company - Charlie Bibby/Stonegate Pub Company

The UK's biggest pub relation is said to beryllium exploring a woody a merchantability of 75 sites successful a woody that could beryllium worthy arsenic overmuch arsenic £100m.

Stonegate Group, which owns Slug & Lettuce and Be At One, has hired advisers to gauge appetite for the portfolio, which is chiefly based successful London and the South East, Sky News reports.

A merchantability would correspond lone a tiny information of Stonegate's wide estate, which covers much than 4,500 sites.

Stonegate is controlled by the backstage equity steadfast TDR Capital, which besides has large stakes successful Asda and petrol stations elephantine EG Group.

01:29 PM

EU bans Russian golden prohibition successful caller sanctions

The EU is said to beryllium moving connected a caller packet of sanctions that volition see a prohibition connected Russian gold.

The prohibition would travel a akin determination by the UK, US, Japan and Canada, which earlier this week said they were halting caller golden imports from the country.

The Government said the measurement would person a "huge impact" connected Putin's quality to money is equipped forces and efforts by oligarchs to evade sanctions.

However, analysts person dismissed the prohibition arsenic mostly symbolic due to the fact that existing sanctions person already efficaciously closed disconnected European and US markets.

The caller bundle of sanctions volition besides screen fixed to antecedently approved measures, which could see adjustments to rules astir the question of sanctioned goods to the Russian metropolis of Kaliningrad, Bloomberg results.

Some officials person raised concerns that Lithuania could beryllium pressured into allowing banned goods to transit done the state and into Russia via Kaliningrad.

01:15 PM

Swarm of malfunctioning driverless taxis brings postulation to a halt for hours

Cruise cars San Francisco - Reddit

Cruise cars San Francisco - Reddit

A swarm of driverless taxis held up postulation for hours astatine a junction aft 1 of the archetypal nationalist trials of the exertion went wrong, writes James Titcomb.

More than a twelve autonomous vehicles operated by driverless car institution Cruise successful San Francisco came to a halt for astir 2 hours earlier employees made it to the country connected Wednesday.

The institution has not revealed what caused the vehicles to halt oregon wherefore aggregate cars suffered the responsibility astatine the aforesaid place. Several were stationary astatine the entranceway to the crossroad junction, portion others were stopped astatine the exit.

Cruise, backed by General Motors, started charging passengers for driverless taxi rides successful San Francisco past week.

It is 1 of the archetypal real-world robot taxi services successful a large city. Vehicles bash not person a information operator successful the beforehand seat.

​Read James' afloat communicative here

12:33 PM

US state supplies to Europe overtake Russia for archetypal time

For the archetypal clip ever, the US is supplying much state to Europe than Russia sends done pipeline.

Europe is ramping up imports of liquefied earthy state aft Gazprom slash shipments done the Nord Stream pipeline and chopped disconnected immoderate countries successful a enactment implicit rouble payments.

Shipments from the US stay beardown adjacent aft a occurrence astatine the Freeport LNG terminal successful Texas forced it to adjacent until October.

Fatih Birol, enforcement manager astatine the International Energy Agency, said: "Russia's caller steep cuts successful earthy state flows to the EU mean this is the archetypal period successful past successful which the EU has imported much state via LNG from the US than via pipeline from Russia.

"The driblet successful Russian proviso calls for efforts to trim EU request to hole for a pugnacious winter."

Combined with Russian LNG shipments, the state whitethorn inactive beryllium a bigger wide state supplier to Europe than the US. Britain has halted LNG imports from Russia, but deliveries are inactive arriving elsewhere connected the continent.

Russia's caller steep cuts successful earthy state flows to the EU mean this is the 1st period successful past successful which the EU has imported much state via LNG from the US than via pipeline from Russia

The driblet successful Russian proviso calls for efforts to trim EU request to hole for a pugnacious wintertime

— Fatih Birol (@fbirol) June 30, 2022

12:16 PM

Pound extends losses to 1pc

Sterling has extended its greeting losses to shed 1pc against the dollar arsenic increasing fears of a recession thrust investors to the safe-haven currency.

The lb dropped to $1.2049 – its lowest level successful 2 weeks. Against the euro, though, it climbed to 86.75p.

12:10 PM

AstraZeneca inks caller Covid vaccine deal

British pharmaceutical elephantine AstraZeneca has struck a caller woody to marque Covid-19 jabs successful Oxford "on an as-needed basis" arsenic request for the vaccines continues to wane.

Hannah Boland has the story:

AstraZeneca has extended its concern with Oxford BioMedica to marque the vaccines astatine its Oxbox installation for different 3 years.

Oxford BioMedica has already made 100 cardinal doses of the Covid jab astatine the site, and expects to grounds £30m successful revenues from AstraZeneca successful 2022.

An archetypal pandemic woody betwixt the brace ends aboriginal this year, with the caller three-year woody replacing it. AstraZeneca volition beryllium capable to manufacture the vaccines astatine the 84,000 quadrate ft Oxbox tract "on an arsenic needed ground beyond 2022".

It comes arsenic Governments considers what longer-term booster roll-outs could look like. Experts person warned determination could beryllium "vaccine fatigue" from repeated boosters, adjacent among the older population.

12:02 PM

Wall Street to driblet arsenic marketplace rout continues

Wall Street looks acceptable to autumn astatine the opening doorbell arsenic a grim sell-off crossed planetary markets shows nary signs of slowing.

The benchmark S&P 500 suffered its biggest first-half driblet successful implicit 50 years, portion planetary stocks much broadly posted their worst commencement to the twelvemonth connected record.

Investors are continuing to merchantability disconnected riskier assets arsenic fears of a looming recession overtake ostentation worries.

Futures tracking the S&P 500 fell 0.4pc, portion the Dow Jones was down 0.3pc. The tech-heavy Nasdaq mislaid 0.5pc.

11:55 AM

Siemens writes disconnected €2.8bn arsenic vigor spin-off struggles

Siemens has written disconnected an eye-watering €2.8bn (£2.4bn) aft a crisp autumn successful the stock terms of its erstwhile vigor division.

The German concern elephantine said the driblet successful the worth of Siemens Energy meant its 35pc holding successful the spin-off was "significantly beneath the publication value".

The turbine maker, which divided from Siemens successful 2020, has mislaid astir 40pc of its worth connected the Frankfurt Stock Exchange since the commencement of the year.

The diminution successful worth has been driven mostly by the struggles of its upwind vigor subsidiary Siemens Gamesa, which has struggled to crook a nett contempt surging request for renewable energy.

11:43 AM

Bulb brag to measurement down from collapsed vigor firm

Bulb Hayden Wood -  Julian Andrews

Bulb Hayden Wood - Julian Andrews

The main enforcement and co-founder of Bulb is to permission the failed vigor supplier astatine the extremity of July arsenic the Government looks to unafraid a merchantability of the bailed-out company.

Bulb said Hayden Wood was "stepping backmost from the business", adding: "We privation him each the champion for the future."

He volition not beryllium replaced, with the relation being divided among the remining enforcement team.

Mr Wood stayed connected at Bulb after it was placed into a peculiar medication erstwhile it collapsed successful November past year. It was propped up with an archetypal payer indebtedness of £1.7bn to screen the mean moving of the steadfast until a purchaser could beryllium found.

He has been criticised by MPs for continuing to person a £250,000 wage to caput up the supplier – effectively paid for by the taxpayer.

The announcement of his departure comes arsenic the Government is considering offers for the firm, pursuing a deadline of June 30 that was earmarked for closing bids.

11:23 AM

Mark Zuckerberg tells Meta unit to brace for ‘worst downturn successful caller history’

Mark Zuckerberg Facebook - AP Photo/Mark Lennihan, File

Mark Zuckerberg Facebook - AP Photo/Mark Lennihan, File

Facebook’s genitor institution Meta is slashing hiring plans arsenic Mark Zuckerberg warns of “one of the worst downturns successful caller history”.

James Titcomb has more:

The societal media elephantine plans to prosecute arsenic overmuch arsenic 40pc less engineers than it had earlier predicted, amid an economical downturn and arsenic privateness changes deed its advertizing business.

Mr Zuckerberg, Meta’s main executive, outlined the changes to unit connected Thursday.

"If I had to bet, I'd accidental that this mightiness beryllium 1 of the worst downturns that we've seen successful caller history,” helium told employees according to a signaling of the lawsuit leaked to Reuters.

He said that Meta would prosecute betwixt 6,000 and 7,000 engineers, compared to erstwhile plans for astir 10,000.

Mr Zuckerberg’s comments echo those of chap tech entrepreneur Elon Musk, who is successful the process of cutting 3,500 salaried jobs due to the fact that of a “super atrocious feeling” astir the economy.

Mr Zuckerberg said galore unit who permission volition not beryllium replaced and bosses volition beryllium encouraged to place employees not pulling their weight.

11:03 AM

Citi successful talks implicit merchantability of Russian business

Citigroup is said to beryllium successful talks with respective section buyers implicit a imaginable merchantability of its operations successful Russia.

The US slope is successful negotiations with privately owned Russian companies including Expobank and security institution Reso-Garantia implicit plans to offload its user and commercialized businesses, the Financial Times reports.

Rosbank is besides said to person expressed involvement successful a deal, but that's been thrown into uncertainty aft the UK sanctions its owner Vladimir Potanin this week.

A transaction would marque Citi the latest lender to exit Russia successful effect to Putin's penetration of Ukraine.

Citi is besides winding down its firm banking balances and operations, but it's inactive moving with its multinational clients to assistance them exit the state successful the aftermath of occidental sanctions.

10:50 AM

Why Heinz demanded an ‘unheard of’ 30pc terms increase... and Tesco balked

Heinz baked beans Tesco

Heinz baked beans Tesco

ICYMI – Heinz and Tesco are embroiled successful a bitter enactment implicit the the terms of baked beans.

The showdown shines a spotlight connected supermarket-supplier tensions arsenic ostentation bites, arsenic my colleague Hannah Boland writes.

Read Hannah's afloat communicative here

10:35 AM

Chart: Eurozone ostentation sparks situation for Brussels

10:25 AM

Pound slumps amid recession fears

Sterling mislaid crushed this greeting arsenic traders shed risky assets amid increasing fears of a recession.

Markets person suffered a torrid archetypal fractional of the twelvemonth arsenic investors interest efforts to curb ostentation could propulsion economies astir the globe into a recession.

The lb dropped 0.5pc against the dollar to $1.2112. Against the euro, it fell 0.3pc to 86.32p.

Derek Halpenny astatine MUFG said: "GBP tends to execute poorly during periods of accrued fiscal marketplace accent and the information released yesterday suggests that could good proceed arsenic fiscal marketplace conditions worsen further.

"We stay of the presumption that fiscal marketplace conditions volition stay challenging successful the months up which points to continued GBP underperformance."

10:11 AM

Mortgage lending jumps contempt extremity of lodging boom

UK owe lending jumped to the highest level successful 8 months successful May contempt signs the spot marketplace roar is coming to an end.

Lending jumped to £7.4bn successful May, according to the Bank of England. That's the highest since September.

Banks approved 66,200 location loans, somewhat higher than successful April and beating economists' expectations of a decline.

The figures struggle with reports from Nationwide and Zoopla suggesting location terms maturation has crushed astir to a halt.

Read much connected this story: House terms maturation astir astatine zero arsenic spot roar ends

09:52 AM

BT loses exclusive rights to Champions League

BT Champions League Amazon -  Michael Regan - UEFA

BT Champions League Amazon - Michael Regan - UEFA

BT Sport has mislaid its stranglehold connected Champions League shot successful Britain aft astir a decade, ceding a fistful of matches to Amazon arsenic regulators scrutinise its merger with Eurosport.

James Titcomb has the story:

Amazon has won the rights to amusement 1 crippled a week connected its Prime Video work from 2024, UEFA is expected to denote connected Friday morning.

BT Sport, which is owed to merge with Eurosport aboriginal this year, volition clasp the immense bulk of games crossed the Champions League, Europa League and the third-tier Conference League.

It has enjoyed exclusive rights to UEFA nine competitions since outbidding Sky successful 2013 and retaining the bulk of the rights volition beryllium seen arsenic a invited boost up of the merger with Eurosport.

Amazon’s involution whitethorn besides easiness regulatory unit connected the deal, which the Competition and Markets Authority is investigating.

Read James' afloat communicative here

09:40 AM

UK manufacturing output slumps to two-year low

The slowdown successful the UK manufacturing assemblage continued astatine the extremity of the 2nd quarter, arsenic June saw output maturation grind astir to a halt.

The S&P Global Manufacturing PMI fell to 52.8 past month, down from 54.6 successful May and the lowest since June 2020.

Manufacturing accumulation roseate for the twenty-fifth consecutive period successful June. However, the complaint of enlargement was the weakest during the existent upturn.

New orders contracted for the archetypal clip successful 17 months, portion concern optimism dropped to its lowest since May 2020.

Companies cited a weakening economy, the warfare successful Ukraine, worldly shortages and China lockdowns for the bleak outlook.

09:20 AM

Revolut boss: We person capable backing for 2 years

Nikolay Storonsky Revolut - Revolut

Nikolay Storonsky Revolut - Revolut

The brag of Revolut has said his fintech startup has capable backing for astatine slightest 2 much years and won't beryllium looking to rise much money.

Speaking astatine a league successful London, Nikolay Storonsky said the payments steadfast was present profitable and "aggressively expanding" successful Latin America, India and the Philippines.

The comments suggest Revolut tin debar the pitfalls of trying to rise wealth during a downturn, with task superior drying up and startup valuations falling.

Swedish rival Klarna is said to beryllium raising funds successful a circular that could slash its valuation by astir a 3rd to $30bn.

08:57 AM

Striking autobus drivers are 'highest paid successful Merseyside'

Matt Davies, managing manager astatine Stagecoach Merseyside, has deed backmost astatine unions implicit planned autobus strikes this month:

Bus users volition beryllium angered that the autobus services that they beryllium connected to entree work, education, the precocious street, and support successful interaction with their families are being deliberately targeted by the national successful this way.

The information is that adjacent successful these hard times, we person offered a important wage summation of much than 10pc to our employees that would marque them the highest paid autobus drivers successful Merseyside from July.

They would besides proceed to payment from much generous vacation entitlement and different benefits than different section autobus workers with whom they privation parity.

The 2 caller wage deals we offered were some supported by the union, truthful it is puzzling that it believes hurting section communities by onslaught enactment is present the mode forward.

08:54 AM

Bus workers to onslaught implicit pay

Stagecoach autobus  onslaught   wage  - Dave Thompson/PA Wire

Stagecoach autobus onslaught wage - Dave Thompson/PA Wire

The summertime of discontent looks acceptable to worsen arsenic hundreds of autobus drivers program to signifier a bid of strikes successful a enactment implicit pay.

Members of Unite employed by Stagecoach successful Merseyside volition locomotion retired connected July 4, 15, 18, 20, 22, 25, 28 and 29. It's the latest concern enactment that volition origin disruption and question chaos crossed the country.

Sharon Graham, Unite wide secretary, said: "Stagecoach makes wealth manus implicit fist. Our members are making it abundantly wide that they volition not judge being underpaid by this affluent institution immoderate longer.

"Stagecoach tin easy spend to wage its workers a decent wage but its repeated refusal to bash truthful is wherefore these strikes volition spell ahead."

08:44 AM

Four-year Chemring fraud probe ends without prosecution

A four-year probe into alleged bribery, corruption and wealth laundering astatine ammunition and grenade shaper Chemring has been closed without prosecution.

The Serious Fraud Office opened its probe into the activities of Chemring, its subsidiary Chemring Technology Solutions and associated radical successful 2018 aft the steadfast handed implicit its ain report.

Hampshire-based Chemring said it co-operated afloat with the SFO passim the probe and was "pleased" the substance is present closed.

It said: "Chemring remains committed to conducting its concern successful an ethical and liable mode astatine each times, and successful afloat compliance with each applicable laws and regulations."

08:26 AM

FTSE risers and fallers

The FTSE 100 has kicked disconnected the 2nd fractional of the twelvemonth successful antagonistic territory amid worries that involvement complaint rises could extremity Britain into a recession.

The blue-chip scale shed 0.6pc, putting it connected way for its 4th play diminution successful five. That's aft it suffered its worst period since the outbreak of Covid successful March 2020.

Oil major BP dropped 1.3pc, portion mining stocks including Fresnillo also fell arsenic they took a deed from little commodity prices.

Shell gained 0.5pc adjacent aft it suspended plans to merchantability its onshore lipid assets successful Nigeria and Russia moved to prehend the Sakhalin-2 state facility.

Abrdn was the biggest faller, losing much than 2pc aft Citigroup downgraded the money manager's stocks to "sell" from "neutral".

The domestically-focused FTSE 250 was down 0.3pc.

08:16 AM

Gas prices acceptable for 3rd play gain

Natural state prices are heading for their longest tally of play gains this twelvemonth arsenic Putin's menace implicit the Sakhalin-2 task deepened Europe's vigor crisis.

Benchmark European prices roseate arsenic overmuch arsenic 6.1pc to caput for a 3rd week of increases.

Aside from the Sakhalin-2 saga, the continent is besides grappling with little supplies aft Russia chopped shipments done a large pipeline by 60pc.

Adding to the strain, the cardinal Freeport LNG export installation successful the US volition present stay unopen until October – a period aboriginal than expected – aft an detonation aboriginal past month.

European countries are racing to refill retention sites amid fears shortages could pb to rationing this winter.

08:08 AM

Japan warns state interests 'must not beryllium undermined'

Japan has said its vigor interests "must not beryllium undermined" aft the Kremlin issued a decree that could unit overseas shareholders retired of a large Russian state project.

Japanese trading houses Mitsui and Mitsubishi ain 12.5pc and 10pc stakes respectively successful the Sakhalin-2 facility, but the aboriginal of their investments appears uncertain aft the Russian move.

It calls for the constitution of a caller Russian relation and requires existing overseas shareholders to use for the close to enactment successful the caller firm, with Moscow deciding connected their inclusion.

Japanese authorities spokesperson Seiji Kihara said Tokyo was "closely examining the interaction connected liquified earthy state imports".

He added: "Speaking generally, we judge our assets interests indispensable not beryllium undermined."

Shell is yet to contented its effect to the move.

08:03 AM

FTSE 100 drops again

The FTSE 100 has dropped astatine the unfastened arsenic ostentation and recession fears proceed to resistance down markets.

The blue-chip scale fell 0.9pc to 7,107 points.

The FTSE yesterday rounded disconnected its worst period since the outbreak of Covid successful March 2020 arsenic investors feared involvement complaint rises could spark recessions astir the world.

Meanwhile, $13 trillion was wiped disconnected planetary stocks successful the worst archetypal fractional of a twelvemonth connected record.

Read more: $13 trillion wiped disconnected markets successful worst six months connected record

07:52 AM

EU reaches provisional woody connected crypto crackdown

EU Bitcoin regularisation  - AP Photo/Kin Cheung, File

EU Bitcoin regularisation - AP Photo/Kin Cheung, File

The EU has reached a provisional woody connected its landmark crypto rules that volition usher successful a large regulatory crackdown connected the volatile sector.

The legislation, dubbed the Markets successful Cryptoassets directive, volition modulate the crypto assemblage with communal rules crossed each 27 subordinate states.

It's the archetypal clip globally that politicians person attempted to supervise the assemblage connected specified a scale.

The EU approved caller rules connected overseeing cryptoasset work providers, user extortion and biology safeguards.

It volition screen cryptocurrencies specified arsenic Bitcoin and Ether. Non-fungible tokens offered to the nationalist astatine a fixed terms volition beryllium exempt from the caller rules, though the bloc said they could beryllium included astatine a aboriginal date.

Bitcoin fell 2.8pc aft suffering its biggest quarterly driblet successful much than a decade.

07:43 AM

Kremlin hits backmost arsenic vigor enactment deepens

Putin's bid to prehend power of the Sakhalin-2 state task marks an escalation successful the vigor enactment engulfing Europe.

Most occidental vigor firms are trying to propulsion retired of Russia, but are struggling to find consenting buyers for their investments.

Japanese trading houses Mitsubishi and Mitsui ain a combined 22.5pc of the Sakhalin-2 project, and a bulk of the state produced determination supplies Japan.

While Japan was speedy to enforce sanctions connected Russia, it's said it won't propulsion retired of the state facility.

According to the decree, Russian authorities vigor elephantine Gazprom, which holds the remaining 50pc, volition automatically get the aforesaid involvement successful the caller company.

But Russia won't marque it casual for Shell and others to transportation their ownership.

If the overseas firms privation stakes successful the caller Russian venture, they indispensable supply impervious of their rights successful the aged company, with Moscow having the last accidental implicit whether they are allowed in.

There volition besides beryllium an audit to find what damages were caused by the actions of overseas companies, and companies volition beryllium liable to wage the Russian authorities damages.

07:33 AM

Putin threatens Shell's Russian state project

Good morning.

Shell could beryllium forced to abandoned its concern successful a large Russian state task aft Putin threatened to prehend the rights to the facility.

The Kremlin said rights to the Sakhalin-2 works volition beryllium transferred to a caller Russian company, citing threats to the country's nationalist interests and economical security.

Shareholders person a period to accidental if they'll instrumentality stakes successful the caller company, but person been warned they whitethorn not get their wealth backmost if they don't.

The determination could spark complications for Shell, which holds a 27.5pc involvement successful Sakhalin-2.

The steadfast antecedently said it volition merchantability its holding – whose worth Shell impaired to $1.6bn (£1.3bn) earlier this twelvemonth – with Chinese authorities vigor companies linked to a imaginable deal.

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2) How Heinz provoked Tesco successful the conflict of the beans  Showdown shines a spotlight connected supermarket-supplier tensions arsenic ostentation bites

3) Elon Musk escalates Tesla’s warfare connected moving from location with 'please explain' emails  Staff person automated communications if they neglect to spell into the bureau often enough

4) Surge successful aboriginal status is fuelling inflation, says apical Treasury mandarin  Exodus of astir fractional a cardinal workers from the jobs marketplace is damaging the economy

5) Amazon blocks LGBTQ searches successful UAE aft governmental pressure  Online elephantine says it adheres to laws successful the countries wherever it operates

What happened overnight

Asian markets struggled again this greeting pursuing different sell-off connected Wall Street fuelled by recession fears, with warnings of a bleak outlook for the planetary system arsenic cardinal banks slam connected the brakes to conflict soaring inflation.

Data showing US consumers – the backbone of the world's apical system – were increasing progressively reticent astir spending dealt a caller stroke to equities connected Thursday, with the S&P 500 suffering its worst January-June since 1970.

With the warfare successful Ukraine showing nary motion of ending – keeping vigor costs elevated – determination is an anticipation that borrowing costs volition proceed to emergence and nonstop economies into recession.

After a wide retreat connected Thursday successful Asia, markets battled to retrieve but with small conviction.

Tokyo, Shanghai, Seoul, Taipei and Bangkok each fell, though determination were tiny gains successful Sydney, Singapore, Manila and Jakarta. Hong Kong was closed for a holiday.

Coming up today

  • Corporate: No scheduled updates

  • Economics: Inflation (EU), manufacturing PMI (UK, US, EU China), owe approvals (UK)

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