French strikes force closure of Eiffel Tower
Staff went on strike at the Eiffel Tower today in protest against the way the Paris monument is managed.
The strike, at one of the most visited tourist attractions in the world, comes as Paris prepares to host the 2024 Summer Olympics, which begin on July 26 and will feature metal from the tower in the winners’ medals.
Visitors stood outside the barriers of the tower grounds in front of a giant screen announcing the strike.
Nelson Navarro, from Norfolk, said: “It’s a real shame, really, because we come just for three days, and we’re not going to be able to get up.”
Vito Santos, from Canada, had planned to revisit the monument 15 years after his honeymoon and show if off to his children.
He said: “It’s disappointing ... The plan was to come here really early to get a ticket as early as possible. However, it was a surprise for us, the strike is here, so we cannot make the tour.”
Unions claim Paris City Hall, which owns 99pc of the company that oversees the tower, Societe d’Exploitation de la Tour Eiffel (SETE), is underestimating the cost of maintenance and repairs to the monument planned ahead of the Olympics.
This in turn could result in lax maintenance work and put visitors at risk, they say.
The wrought-iron 1,063ft high tower, built by Gustave Eiffel in the late 19th century, welcomes about six million visitors each year.
Read the latest updates below.
06:05 PM GMT
Signing off
Thanks for joining us today. Chris Price will be back in the morning, but in the meantime here are some of our latest business stories elsewhere on The Telegraph website:
06:03 PM GMT
Anglo American to cut thousands of jobs in South Africa
Anglo American is to cut thousands of jobs at its platinum mines in South Africa, after a slump in the price of metals found at the mines.
The FTSE 100 mining business said it would cut around 3,700 jobs and is reviewing contracts with its contractors as it seeks to slash costs.
The mines have been hit by declines in the price of the so-called platinum-group metals they produce, including palladium, which fell 47pc last year. Rhodium, which soared to almost $30,000 (£23,800) an ounce in 2021, was trading at $4,365 an ounce on Monday.
Anglo American boss Duncan Wanblad said: “It’s very much a last resort, not least as we recognise the unemployment challenges in South Africa.”
05:26 PM GMT
EU to investigate TikTok over child safety concerns
The European Commission will investigate TikTok over possible breaches of online content rules aimed at protecting children, an official said on Monday.
Regulators will examine the design of TikTok’s system, including algorithms which may encourage addiction.
It will also study whether TikTok has implemented the right measures to ensure a high level of privacy, safety and security for children.
TikTok’s owner ByteDance could face fines of up to 6pc of global turnover if found guilty of breaching rules.
The social media giant said it would continue to work with experts and the industry to keep young people safe on its platform.
04:53 PM GMT
Footsie closes up
The FTSE 100 closed up 0.22pc. The biggest riser was Rolls-Royce, up 3.37pc, followed by AstraZeneca, up 3.21pc. The biggest faller was British Gas owner Centrica, down 5.97pc, followed by insurer Beazley, down 2.56pc.
Meanwhile, the FTSE 250 was up 0.12pc. The biggest riser was takeover target Currys, up 36.36pc, followed by Bank of Georgia, up 6.56pc. Pharmaceuticals business Indivior was the biggest faller, down 4.06pc, followed by Direct Line Insurance, down 2.87pc.
04:47 PM GMT
Older people giving up being buy-to-let landlords after interest rate hikes
New buy-to-let (BTL) mortgage borrowing has “fallen off a cliff” among older landlords amid higher interest rates, a finance expert has said.
Figures released by trade association UK Finance on Monday showed 7,980 “later life” BTL loans, including those for house purchase and re-mortgaging, were handed out in the fourth quarter of 2023.
This was less than half the 16,930 loans advanced for this purpose to over-55s in the final quarter of 2022.
Later life BTL loans in the fourth quarter of 2023 represented around 22% of all BTL loans.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said:
New buy-to-let mortgages have fallen off a cliff among older landlords, with the number of these loans halving in a year.
Given that older people make up more than a fifth of all buy-to-let loans, this has a wider effect on the broader market.
As more older people decide that being a private landlord isn’t as rewarding or as tax-efficient as they had hoped, it means they’re selling up, which puts more pressure on rising rents again.
Ms Coles added:
The more positive news is that the pressure has been easing since these figures were released and lower mortgage rates will have taken less of a toll in recent months.
However, falling mortgage rates have stalled more recently, as the market digests the fact that inflation is more stubborn than they expected. It means we can’t rely on swift rate cuts to get us out of trouble financially in retirement.
04:43 PM GMT
Chinese Tesla rival BYD ups the ante on high-end competitors
China’s answer to Tesla, BYD, plans to launch a number of “high-end luxury” models from this year, it said in Hong Kong stock market filing.
The Shenzhen-based company will also formulate a “reasonable and feasible” plan to buy back more shares, it said.
Last December, BYD said that Chairman Wang Chuanfu proposed the company would buy back 200m yuan (£22m) worth of its shares.
04:26 PM GMT
Currys under pressure to hold out for £900m amid potential bidding war
Currys is under pressure to hold out for as much as £900m in any potential sale, analysts predict, as the bidding war for the electronics retailer heats up. Daniel Woolfson reports:
Prospective buyers are circling the business after it revealed on Saturday that it had rejected a £700m takeover approach from US hedge fund Elliott.
Currys said at the time that the bid, worth 62p a share, “significantly undervalues” the business.
Analysts at City broker Peel Hunt said they “struggle to see the board engaging on anything less than 80p”, bringing the potential price tag of Currys to around £900m.
As well as Elliott, which owns Waterstones in the UK, Chinese retail giant JD.com also confirmed on Monday that it was also weighing a cash offer for Currys.
The company has emerged as a takeover target after struggling to boost its share price in recent years.
The retailer has also grappled with flagging sales amid an increasingly difficult consumer electronics market, the collapse of third-party mobile phone sales, and plunging revenues in its Nordics business, all of which led to Currys scrapping its dividend in 2023.
04:22 PM GMT
A third of entrepreneurs have run a failed business, says research
Almost a third (31pc) of business owners admit to having at least one “failed” business, according to a Censuswide poll for wealth manager Charles Stanley.
Of those, almost a third (31pc) closed the business because it wasn’t successful, while a quarter (24pc) sold it. Meanwhile, 18pc merged their failing business with their current one, 15pc ceased trading completely, and 13pc said that they passed it on to a relative.
The data comes in a report on co-caloled “phoenix founders” - those who find success in a business after a previous failure. It says that this group is more commonplace in the UK economy than serial founders - those who found a company after having achieved success in a prior one.
04:03 PM GMT
Cambridge AI start-up seeking to cut electric car industry's dependence on China raises £10m
A British start-up hoping to reduce the electric vehicle industry’s dependence on China has raised millions of pounds from investors. Matthew Field reports:
Monumo, which was founded in 2021, has developed AI-powered technology that it hopes can help reduce or even eliminate the need for rare earth magnets in electric vehicle motors.
These magnets are developed using metals such as neodymium, which are expensive to mine, difficult to recycle and almost entirely sourced from China.
Dominic Vergine, who leads Monumo, said: “80pc of electric vehicles are using rare earth magnets so to reduce or minimise their use is vitally important. We think we can remove it altogether.”
Monumo’s AI technology can run millions of simulations per day to generate and test designs for electric vehicle engines.
The scale of Monumo’s AI-powered testing means it can identify improvements far quicker than current systems.
Mr Vergine said: “The industry standard for simulations is about 50,000 per day; we run 10m. The reason we can do this is because our simulator is specifically designed from the outset to feed AI optimisation.”
The Cambridge-based business has already built its first prototype motor, designed by its AI tools.
It has used its simulation technology to patent a type of electric motor - known as a switched reluctance motor - that is 50pc smoother and quieter than current designs, and does not need rare earth magnets. It plans to prototype and ultimately license these designs to carmakers and engineering companies.
Monumo has raised £10.5m from investors, including the former chief executive of Cambridge chip giant Arm. Simon Segars, who led Cambridge chip designer Arm during its £24bn takeover by Japan’s SoftBank in 2016, is among the early backers of the start-up.
Monumo was launched by Mr Vergine, a former Arm executive who spent a decade at the Cambridge chip designer leading its sustainability team, and Jaroslaw Rzepecki, a machine learning engineer who has worked at Microsoft, Arm and Siemens.
Mr Vergine said: “The world runs on electric motors and will do so increasingly as we go through decarbonisation.
“The potential for AI to really help us tackle the problems that we face on the planet, especially how we approach decarbonisation, is huge.”
03:52 PM GMT
Nintendo drops on delays to next-generation Nintendo Switch
Shares in Japan’s Nintendo tumbled as much as 8.5pc today after a report suggesting that its next-generation console will be delayed until early 2025.
The successor to the popular Switch was targeted for release at the end of this year but several publishers have now been told to expect it to slip into next year, Bloomberg reported, citing unnamed sources.
That would mean that the next console would miss the key Christmas holiday shopping period in December.
The Telegraph has approached Nintendo for comment.
The Switch, both a handheld and TV-compatible device, became a must-have among all age groups during the Covid pandemic.
Buzz around the gadget is slowly fading with the console now in its seventh year, but the company has so far remained tight-lipped about its plans.
03:30 PM GMT
Handing over
Thanks for following what has been happening so far. I will take this opportunity to duck out and Alex Singleton will keep you updated for the rest of the day.
My parting gift is this geometrically stunning image of workers on scaffolding at a railway station construction site in southwestern China’s Chongqing.
03:20 PM GMT
Revolution Beauty cuts ties with BDO after accounting scandal
BDO has quit as auditor to cosmetics brand Revolution Beauty nearly two years after uncovering a series of accounting and management errors.
Our reporter Adam Mawardi has the latest:
The makeup and skincare seller has announced that accountancy firm MHA had been appointed as its new auditor, replacing BDO with immediate effect.
It comes after BDO refused to sign off on Revolution Beauty’s 2022 financial results having identified “a number of serious concerns” while auditing its accounts.
Shares in Revolution Beauty were temporarily suspended in September 2022 after questions raised by BDO meant the company was unable to publish its audited accounts before the deadline.
The scandal prompted an independent investigation by City firm Macfarlanes and forensic accountant Forensic Risk Alliance.
The company said today that it had parted ways with BDO after its audit committee oversaw a process to find another firm. BDO declined to comment.
02:55 PM GMT
Older landlords selling up amid high interest rates
The number of older landlords taking out new buy-to-let mortgage borrowing has “fallen off a cliff” amid higher interest rates, finance experts have said.
Trade association UK Finance said the number of buy-to-let loans to over-55s had halved in the final three months of 2023 compared to a year earlier.
It said there were were 7,980 “later life” buy-to-let loans at the end of last year, including those for house purchase and re-mortgaging, compared to 16,930 in the final quarter of 2022.
Later life lending to landlords in the fourth quarter of 2023 represented around 22pc of all buy-to-let loans.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said:
New buy-to-let mortgages have fallen off a cliff among older landlords, with the number of these loans halving in a year.
Given that older people make up more than a fifth of all buy-to-let loans, this has a wider effect on the broader market.
As more older people decide that being a private landlord isn’t as rewarding or as tax-efficient as they had hoped, it means they’re selling up, which puts more pressure on rising rents again.
02:38 PM GMT
No plans to cut corporation tax in Northern Ireland, says minister
There are no current plans to cut corporation tax in Northern Ireland, the Stormont Economy Minister has said.
Conor Murphy was speaking as he outlined his economic vision for the region in the remaining three years of the Assembly term.
There had previously been calls to cut the corporation tax rate in Northern Ireland in the hope of becoming more competitive as a place to invest.
As part of the Government’s recent Safeguarding the Union command paper, there is a commitment to work urgently to devolve corporation tax powers to Stormont.
But Mr Murphy told MLAs today that it is “not something we’re rushing into”.
He said: “The difficulty for us is that the Treasury’s approach to the devolution of taxation and particularly corporation tax is that they want the money upfront that they think it would yield - that comes directly from our public services.”
02:19 PM GMT
AstraZeneca boosted by 'significant' trial results for lung cancer treatment
AstraZeneca has hailed “overwhelming” positive results in a trial of a key drug in lung cancer patients.
Our reporter James Warrington has the latest:
The company is testing its blockbuster drug Tagrisso as a treatment for patients with advanced non-small cell lung cancer.
Tagrisso is already used for other conditions but the trials hope to prove it can work in treating a specific type of lung cancer that currently can’t be treated.
AstraZeneca said data from its latest trial showed a “statistically significant and highly clinically meaningful improvement” in survival for patients whose cancer could not be removed by surgery and who had received chemoradiotherapy.
It added that there was a “favourable trend” for overall survival, but warned that the data was not mature enough at the time of analysis.
Suresh Ramalingam, principal investigator of the trial, said the results “represent a major advance for patients”, adding that Tagrisso could become the first targeted treatment option for people with stage three lung cancer.
Shares in AstraZeneca rose as much as 4pc to near the top of the FTSE 100.
01:44 PM GMT
Takeover offers to continue for 'cheap' UK companies, says investment bank
More British businesses will receive takeover offers this year amid “cheap sector valuations”, according to investment bank Peel Hunt.
Markets should prepare for a flurry of merger and acquisitions (M&A) activity amid a £700m private equity offer made for Currys over the weekend, analysts said.
Peel Hunt pointed to improving consumer spending and the likely peak for interest rates as reasons London-listed companies may become more attractive for potential takeovers.
It pointed to the likely bidding war for Currys, which sent its shares as much as 37.9pc higher today.
Peel Hunt said it struggles to see the board of the electricals retailer settling for anything less than an offer of 80p per share, which would value the company at more than £900m. An offer of 62p per share from Elliot Management was rejected by Currys at the weekend.
Analyst John Stevenson said: “With interest rates having peaked, the outlook for M&A from both PE and trade buyers seems likely to pick up given the low level of sector valuations.”
01:13 PM GMT
Eiffel Tower closed as French workers strike
It is one of the most visited tourist attractions in the world but today the Eiffel Tower was closed as staff went on strike in protest against the way the Paris monument is managed.
The strike comes as Paris prepares to host the 2024 Summer Olympics, which begin on July 26 and will feature metal from the tower in the winners’ medals.
Visitors stood outside the barriers of the tower grounds in front of a giant screen announcing the strike.
Nelson Navarro, from Norfolk, said: “It’s a real shame, really, because we come just for three days, and we’re not going to be able to get up.”
Vito Santos, from Canada, had planned to revisit the monument 15 years after his honeymoon and show if off to his children.
He said: “It’s disappointing... The plan was to come here really early to get a ticket as early as possible. However, it was a surprise for us, the strike is here, so we cannot make the tour.”
Unions claim Paris City Hall, which owns 99pc of the company that oversees the tower, Societe d’Exploitation de la Tour Eiffel (SETE), is underestimating the cost of maintenance and repairs to the monument planned ahead of the Olympics.
This in turn could result in lax maintenance work and put visitors at risk, they say.
12:56 PM GMT
Israel at risk of recession amid war with Hamas
Israel’s economy took a deep dive in the fourth quarter due to the outbreak of the war with Hamas in Gaza, official figures showed.
Gross domestic product (GDP) contracted by 19.4pc in the last three months of 2023 compared to the previous quarter, the Central Bureau of Statistics said.
For all of 2023, the economy grew 2pc, compared with 6.5pc in 2022 but above an Organisation for Economic Cooperation and Development (OECD) average of 1.7pc.
The war has raged since Hamas’ attack on southern Israel on October 7. A second consecutive quarter of contraction would place Israel in a recession.
Depending on the length of the conflict and whether it expands to other fronts, the economy is expected to grow as much as 2pc in 2024.
The statistic bureau said: “The contraction of the economy in the fourth quarter of 2023 was directly affected by the outbreak of the Iron Swords War on October 7.”
The economy in the fourth quarter was impacted by a 26.9pc drop in private spending - the main growth driver - an 18.3pc fall in exports and 67.8pc slide in investment in fixed assets, especially in residential building.
Government spending, mainly on war expenses, jumped 88.1pc.
12:39 PM GMT
GB News investigated over hour-long Sunak special
Ofcom has launched an investigation into whether GB News breached impartiality rules with an hour-long special featuring the Prime Minister.
The programme, which saw Rishi Sunak take questions from the public in a live Q&A in County Durham on February 12, has prompted about 500 complaints.
An Ofcom spokesperson said:
We are investigating under rules 5.11 and 5.12 of the Broadcasting Code which provide additional due impartiality requirements for programmes dealing with matters of major political controversy and major matters relating to current public policy.
Specifically, rules 5.11 and 5.12 require that an appropriately wide range of significant views must be included and given due weight in such programmes, or in clearly linked and timely programmes.
During the broadcast, named People’s Forum: The Prime Minister, presenter Stephen Dixon said the questions to be asked by undecided voters had not been seen in advance by the Prime Minister or by GB News.
GB News is currently being investigated by Ofcom for a number of other shows, including many over impartiality issues.
The issue of political figures such as Sir Jacob Rees-Mogg and current Conservative deputy chairman Lee Anderson presenting topical programmes has also been contentious.
12:23 PM GMT
Southend Airport could change hands to settle loan dispute
The owner of Southend Airport could cede control over the site in a deal with one of its major lenders which it said secures the future of the transport hub.
Esken, formerly known as Stobart Group, said that it was mulling a deal which would settle a dispute with a US private equity giant over a loan.
Amid the pandemic in 2021, a highly difficult time for travel companies, Esken borrowed £125m from Carlyle to secure its finances.
Southend had performed well before the pandemic, but it has struggled to regain its shine since then, with recovery lagging behind London’s other airports. In 2020 easyJet announced it would close its base at the airport.
Carlyle claimed that Esken had broken the terms of its loan and asked for £200m back in a court case filed last year.
Today Esken said that it had “negotiated a recapitalisation proposal with Carlyle”, which would serve “as a solution to the dispute.”
Esken now has until March 4 to decide whether it wants to accept the solution.
The deal would mean that Esken’s stake in London Southend Airport would be “significantly reduced to a minority interest”. But it would also include money to ensure the airport stays open.
12:09 PM GMT
Germany hit by 'various strikes,' warns Bundesbank
In its latest report, the Bundesbank said:
Foreign industrial demand recently trended significantly downward. Consumers are likely to remain cautious in their spending.
Higher funding costs may constrain domestic investment. Additionally, uncertainty regarding climate and transformation policy remains elevated.
Furthermore, effects on production resulting from various strikes – including the rail and aviation strikes – cannot be ruled out.
There are still orders on hand in industry and construction. However, they are dwindling.
Economic output is thus likely to once again decline slightly in the first quarter of 2024.
11:59 AM GMT
Bundesbank insists no 'broad-based' drop during German recession
The Bundesbank tried to caveat its prediction of a German recession by adding there was “still no evidence” of a deeper downturn.
It said:
While this [a recession] would mean the ongoing period of weakness in the German economy following the start of the Russian war of aggression against Ukraine would continue, there is still no evidence of a recession in the sense of a persistent, broad-based and distinct drop in economic activity, nor is such a recession currently on the cards.
In particular, the income situation and thus household consumption are likely to continue to improve in the future given the stable labour market, sharply rising wages and the declining inflation rate
Following a series of interest rate hikes, German inflation slowed to 2.9pc in January - not far off the European Central Bank’s 2pc target.
In December, the Bundesbank slashed its 2024 growth forecast to 0.4 percent, from a prediction of 1.2 percent in June.
11:41 AM GMT
Germany 'likely in recession' as strikes hammer economy
Germany is likely falling into recession as it grapples with the impact of strikes and its transition to net zero, its central bank has warned.
The Bundesbank said Europe’s largest economy is facing an “ongoing period of weakness” that began with the Russian invasion of Ukraine.
It warned the economy is expected to contract again in the first three months of this year, plunging Germany into a recession following a 0.3pc decline in gross domestic product (GDP) in the final three months of 2023 compared with the previous quarter.
A recession is widely defined as two successive quarters of falling GDP.
10:54 AM GMT
Houthis claim UK cargo ship 'at risk of sinking' after Red Sea attack
A UK-registered cargo ship that was attacked by Yemen’s Houthi rebels is now at risk of sinking, a spokesman for the militant group has said.
The Rubymar sustained “catastrophic” damage in the missile attack off the coast of Yemen, Houthi military spokesperson Yahya Sare’e said in a statement posted to social media site X.
The crew were forced to abandon the vessel but are safe, he said.
His statement continued:
The ship suffered catastrophic damages and came to a complete halt.
As a result of the extensive damage the ship suffered, it is now at risk of potential sinking in the Gulf of Aden.
The UK’s Maritime Trade Operations (UKMTO) on Sunday said it had received a report of an incident 35 nautical miles south of Al Mukha, a town on Yemen’s Red Sea coast.
The ship, which it did not identify, was damaged after “an explosion in close proximity to the vessel,” UKMTO said, adding that “authorities are investigating”.
10:38 AM GMT
Bank of England risks making recession worse, warns former chief economist
Britain’s recession will get worse unless the Bank of England cuts interest rates soon, the central bank’s former chief economist has warned.
Our deputy economics editor Tim Wallace has the details:
Andy Haldane said the Bank was too slow to raise borrowing costs when inflation surged and now risked being too slow to cut them as price rises come under control and the economy enters a downturn.
He said in an interview with Bloomberg: “It’s one thing to have missed inflation on the way up, which happened; it’s quite another to then have crushed the economy on the way down.
“That double blow to credibility is one if I were a central banker, in my old job, I would be looking to avoid.”
The country is “looking at a year, at best, of anaemic growth,” said Mr Haldane, who served on the interest rate-setting Monetary Policy Committee (MPC) from 2014 to 2021.
Read Mr Haldane’s past record on rates.
10:23 AM GMT
Currency markets expected to be quiet amid 'flat' interest rate outlook
It has certainly been a muted start to the week on the markets - and that may continue for a while if your interest is currencies.
Chris Turner, global head of markets at ING, said foreign exchange markets are likely to continue to be relatively quiet until central banks start cutting interest rates later in the year.
He said: “Volatility in FX markets derives from volatility in interest rate markets, and because policy expectations are now sort of flat for the time being, we’re not getting that source of volatility.”
10:01 AM GMT
Pound rises as hopes of US rate cuts fade
The pound has begun the week a little higher, catching its breath after a busy period of news that saw inflation hold steady at 4pc and the UK officially plunged into recession.
Sterling was up 0.1pc against the dollar at $1.26 as figures from Rightmove showed that asking prices for homes increased annually last month for the first time since July.
It comes as stronger than expected wholesale inflation data in the US on Friday dampened hopes of a March interest rate cut.
The pound was up 0.1pc against the euro, which is worth 85p.
Imogen Bachra, head of non-dollar rate strategy at NatWest, said: “Data last week didn’t give the green light to early cuts - and markets are right not to expect them anymore.”
09:39 AM GMT
Oil prices fall amid fears for demand
Oil prices have slipped from the highest level in three weeks amid lingering concerns about the level of demand.
Brent crude fell 1.1pc below $83 a barrel after rallying almost 8pc over the past two weeks, while West Texas Intermediate traded down 0.6pc below $79.
The International Energy Agency flagged last week that oil markets could be oversupplied all year, and China’s soft economy has raised questions about consumption.
Even so, Chinese markets have reopened after the week-long Lunar New Year holiday, with commodities on the nation’s exchanges broadly rising.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “Brent crude has headed lower, as investors assess demand prospects going forward, if borrowing costs stay high in the United States, particularly with the Chinese economy showing little sign of powering up any time soon.”
09:13 AM GMT
Gas prices slump amid mild weather
Wholesale gas prices have continued to fall ahead of the announcement of the Ofgem energy price cap later this week.
Europe’s benchmark contract has fallen as much as 2.7pc in early trading amid sluggish demand and mild weather.
The drop to around €24 per megawatt hour extends a fall of about 8,5pc last week, as the Continent also sits on healthy stocks in its storage sites.
Last week, Goldman Sachs predicted that gas prices could drop even further from next year as Europe recovers from the energy shock caused by Russia’s invasion of Ukraine, which sent its benchmark contract to €339 per megawatt hour in August 2022.
The UK equivalent contract has fallen as much as 2.5pc today to about 59p per therm. Ofgem announces its next energy price cap on Friday, which is expected to fall to about 15pc.
08:52 AM GMT
FTSE 100 muted amid fading hopes for quick interest rate cuts
The FTSE 100 started the week on a sombre note as fading hopes of interest rate cuts weighed on the mood among traders.
The UK’s blue-chip index was last flat as money markets price in around 65 basis points of cuts from the Bank of England this year, compared with around 72 basis points last week, which is just shy of three full quarter point reductions.
The Bank’s chief economist Huw Pill said on Friday that so far he had seen only “quite modest and tentative evidence” that inflation would fall back to and stay at policymakers’ 2pc target.
AstraZeneca, however, has risen 3.7pc to top the FTSE 100 after the US Food and Drug Administration on Friday approved a combination of the drugmaker’s cancer drug Tagrisso with chemotherapy to treat a type of lung cancer.
Meanwhile, the mid-cap FTSE 250 was flat despite being by a 37.9pc charge by Currys amid a potential bidding war for the electricals retailer.
08:37 AM GMT
Foreign investment in China tumbles to 30-year low as tensions with West rise
Investment into China by foreign businesses grew at its slowest pace last year since the early 1990s amid increasing tensions between the West and the world’s second largest economy.
China’s direct investment liabilities in its balance of payments stood at $33bn last year, according to data from the State Administration of Foreign Exchange.
It is the lowest the measure of foreign investment into the country has been since 1993 - and was 82pc lower than levels in 2022.
It comes as the US warned Beijing against dumping goods on international markets to ease its over capacity problems.
Two senior Treasury officials told the Financial Times that a US delegation had told China it would take action alongside its allies if such a situation occured.
08:11 AM GMT
Currys shares surge amid takeover speculation
Currys shares rocketed higher amid a potential bidding war for the electricals retailer.
Shares jumped by more than 33pc to 63p after JD.com confirmed it is in the “very preliminary stages” of takeover talks.
Currys over the weekend rejected an unsolicited approach by private equity group Elliot Management worth £700m.
08:08 AM GMT
UK markets lacklustre as Wall Street closed
Stock indexes in London were subdued with US markets due to be closed today for the President’s Day holiday.
The FTSE 100 began the day down less than 0.1pc to 7,707.53 while the midcap FTSE 250 was up 0.1pc to 19,208.68.
08:00 AM GMT
JD.com confirms interest in Currys
Chinese online shopping empire JD.com has confirmed it has been exploring a takeover of Currys, raising the prospect of a bidding war after the electricals retailer on Saturday rejected a private equity approach.
JD.com has put out a statement saying it is in the “very preliminary stages” of evaluating a possible deal.
It confirms the Telegraph’s story that representatives from the business had made contact with Currys and held exploratory talks in recent weeks.
We’ll find out shortly what all the takeover speculation has done to Currys’ share price, which has suffered recently.
07:51 AM GMT
Santander unveils £4.7bn shareholder bonanza
Santander has announced plans to pay shareholders €5.5bn (£4.7bn) after posting record profits last year amid surging interest rates.
The lender, which is owned by Spanish parent Banco Santander, plans to buy back €1.5bn (£1.3bn) of its shares and pay a final cash dividend for 2023 of 9.50 euro cents per share.
It comes after the Spanish banking giant posted a record €11.1bn (£9.5bn) profit for 2023.
Banco Santander executive chairman Ana Botín said:
Our strategy and competitive advantages have proven to deliver sustainable, increasing profitability and growth, year after year.
After record performance in 2023, we continue to invest for future growth while increasing shareholder returns, returning more than €5.5bn through dividends and buybacks, which represents an equivalent yield of approximately 10pc.
We are already seeing good progress in 2024 and expect to achieve all our targets for this year, including a return on tangible equity of 16pc.
07:36 AM GMT
Moneysupermarket hits revenue record
Moneysupermarket reported record revenues last year even as customers faced little incentive to switch energy providers.
The price comparison website increased revenues by 11pc to £432.1m for 2023, ahead of analyst expectations, as it was buoyed by its insurance division.
The company revealed underlying profits (ebitda) rose 14pc to £131.9m and said that the first few weeks of 2024 had been similar to the final three months of 2023.
It said profits this year would be in line with market expectations, even though it does not anticipate there will be an increase in customers switching energy providers and a “tougher” market for insurance.
Chief executive Peter Duffy said:
We helped customers save a record £2.7bn in 2023.
The more we can help households save, the more the group grows.
We’re proud that in tough times for consumers, MoneySuperMarket, MoneySavingExpert and Quidco have been able to make a real difference for so many.
07:21 AM GMT
Currys rejects £700m unsolicited takeover bid from Elliott
Currys has sent an announcement to shareholders confirming it received an offer to take the company private.
Investors will be waiting to see this morning what happens to the share price of the electricals retailer, which said it had rejected a £700m takeover bid from activist investor Elliott Advisors, claiming it “significantly undervalues” the company.
Here are the full details of the story which broke over the weekend.
07:14 AM GMT
Rental prices grow at slowest pace in a year
Separate figures from Hamptons showed that the rental crisis that gripped Britain last year continues to ease.
Rents on newly-let properties in January were up 8.3pc compared to the same month of 2023, according to estate agency Hamptons.
That was the slowest growth in more than a year and the first time in six months that the annual pace has dropped below 10pc.
Aneisha Beveridge at Hamptons said:
The scale of mortgage rate rises kickstarted two years of record-breaking rental growth.
But just over two years on from the first Bank of England rate hike, higher rents coupled with higher prices more generally have placed an increasingly tight straitjacket around tenant’s finances, curtailing their ability to pay more.
07:12 AM GMT
House prices rise for first time in six months
Asking prices on homes for sale have increased for the first time since July as lower mortgage rates boost confidence in the market.
The average price of a new property listed on Rightmove so far this month was 0.1pc higher than a year ago, the property portal said, marking the first annual increase since last summer.
Average prices are 0.9pc above where they were in December. With the typical new listing priced at £362,839, it means the average asking price has increased by more than £3,000 since Christmas.
Optimism is increasing as mortgage rates retreat from the highs seen last year and amid hopes that interest rates may soon start falling.
The average two-year fixed rate mortgage on offer now comes with an interest rate of 5.56pc, according to Moneyfacts, down from 6.85pc in August.
Similarly, a typical five-year deal now costs homebuyers 5.18pc, down from 6.37pc last summer.
Rightmove said that agreed sales are up 16pc compared with the same period of 2023, with enquiries from buyers and listings from sellers both up 7pc.
Director of property science Tim Bannister said: “Mortgage rates have fallen considerably from their peak and are now remaining broadly stable after the uncertainty of late 2022 and 2023. Momentum to move in 2024 is continuing to build.”
However, he added: “Sellers who are serious about moving this year would be well-advised to ride this wave of increased buyer confidence with an attractive asking price before any pre-election jitters or unexpected events dampen the momentum.”
06:48 AM GMT
Good morning
Thanks for joining us. To kick off the week, we have figures showing that the asking prices for homes has increased for the first time in six months in a sign of confidence returning to the property market.
Rightmove said the average price of a property listed on its website has increased by 0.1pc compared to the same month last year, which was the first annual increase since July.
5 things to start your day
1) Currys draws takeover interest from Chinese giant | Prospect of bidding war emerges as JD.com enters talks with electricals retailer
2) Apple faces £430m EU fine in long-running row with Spotify | iPhone maker accused of using its App Store to drive up prices and block competition
3) Lockdown damage risks lasting for generations, warns World Bank | Children of those who missed out on school to be affected by ‘scars of pandemic’
4) John Lewis in fresh housing row over smoke vents in rental properties | Firefighters warn designs for Bromley scheme risk hampering potential rescue efforts
5) The economic cost of our crumbling mental health has finally become clear | As the country plunges into recession, Britain’s long-term sickness crisis demands serious action
What happened overnight
Shares were mostly higher in Asia after Chinese markets reopened Monday from a long Lunar New Year holiday.
Hong Kong’s Hang Seng fell 0.9pc to 16,192.24 on heavy selling of technology and property shares despite a flurry of announcements by Chinese state banks of plans for billions of dollars’ worth of loans for property projects.
Major developer Country Garden dropped 5.6pc and Sino-Ocean Group Holding plunged 6.5pc. China Vanke lost 4.6pc.
The Shanghai Composite index gained 0.8pc to 2,889.32.
Tokyo’s benchmark Nikkei index closed flat, as Nintendo shares tumbled after reports said its next console would be delayed.
The benchmark Nikkei 225 index edged down 16.86 points to end at 38,470.38, while the broader Topix index climbed 0.57 percent, or 14.96 points, to 2,639.69.
Nintendo’s shares sank 5.1pc following unconfirmed reports that the successor to the Switch console would not be delivered within this year.
Goldman Sachs said it expects the US stock market rally to surge even higher. In a note to clients, analysts forecast the S&P 500 would reach 5,200 by the end of 2024.
This would mean growth of 3.9pc on top of Friday’s close, after it dipped 0.5pc following a fresh record high on Thursday.
A rise in the US producer price index on Friday triggered a small rise in Treasury yields, which climbed by seven basis points to 4.65pc.