Baby formula lawsuit wipes £7bn off FTSE 100 giant
Consumer goods giant Reckitt has suffered a £7bn share price slump after it lost a US legal case claiming its baby formula contributed to the death of a premature child.
London-listed Reckitt's share price plunged by the most in two decades and to its lowest point in more than a decade after an Illinois jury ruled Reckitt had failed to warn about the risks of necrotising enterocolitis (NEC) from its milk-based Enfamil brand products.
NEC is an illness that damages the stomach and tends to affect premature babies. Reckitt's US subsidiary Mead Johnson Nutrition had been sued by Jasmine Watson, who claimed the baby formula caused the death of her premature baby.
FTSE 100-constituent Reckitt has now been ordered to pay Ms Watson $60m (£47m) after losing the case.
Ashley Keller, a lawyer for Ms Watson, said: "The jury's finding confirms what Mead Johnson folks already knew – that its formula dramatically increases the NEC risk. "This is the first verdict in the US, but won't be the last, unless baby formula makers accept responsibility for their misdeeds."
News of the decision sparked a near 20pc plunge in Reckitt's share price, wiping around £7.3bn ($9.3bn) from its market value.
It comes amid hundreds of US lawsuits against formula makers over NEC. The Illinois case was the first to go to a jury trial.
Shares in Abbott Laboratories, another formula maker facing legal claims, fell almost 5pc. Jurors took less than two hours to decide that Mead Johnson should pay $60m in compensatory damages. Mr Keller said: "We only asked for $25m, but the jury came back with more than double that."
More than 400 suits targeting Mead Johnson and Abbott are consolidated before a federal judge in Chicago for pre-trial information exchanges. The judge hasn't yet scheduled a trial. Thousands of other suits are pending in state courts, Mr Keller said. Reckitt continues to insist its products are safe and not linked to NEC. It has vowed to appeal the Illinois case.
NEC has a fatality rate of as much as 40pc. It is a major cause of death among premature babies, though rarely occurs in full-term babies.
The disease, which affects intestinal tissues, can be hard to diagnose. According to the NHS, symptoms can include general signs of illness, problems feeding or vomiting, and a swollen and tender abdomen.
While it has a high fatality rate, it can be treated with intravenous feeding and antibiotics. In some cases it can require surgery.
Reckitt said in a stock market update that it stands by the safety of its products and "strongly rejects any assertion that any of our products cause NEC".
The company added: "It is important to note that this is a single verdict in a single case and should not be extrapolated.
"This case, and others like it, exclusively involve products used under the strict supervision of neonatologists in neonatal intensive care units and provide lifesaving nutrition options for vulnerable premature infants.
"We are, of course, surprised and deeply disappointed with the verdict and will pursue all options to have it overturned."
Reckitt is one of the world's largest consumer goods companies, pulling in revenues of £14.6bn in 2023. As well as Enfamil, it makes products such as Durex condoms, Cillit Bang cleaning fluid and Gaviscon.
Nutrition brands account for about 16pc of its sales, contributing £2.4bn to its turnover last year.
News of the Illinois jury's decision marks the latest in a series of blows for the company, which last month revealed a £55m hit to revenues caused by an accounting controversy in the Middle East.
Kris Licht, chief executive at Reckitt, said the company had unearthed "some commercial practices that we weren't particularly pleased with", leading to the dismissal of a number of employees.
Reckitt in January recalled two baby formula products from sale in the UK amid concerns they could contain dangerous bacteria, in an event unrelated to the case in the US.
Read the latest updates below.
06:06 PM GMT
That's all for today...
Thanks for joining us on the blog today. We'll be back on Monday but in the meantime here are a coupe of our latest business and money articles from elsewhere on The Telegraph site:
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City law firm seeks burnout advice following partner's death
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Modest earners are now being taxed 'as if they are rich', figures show
05:42 PM GMT
Adobe drops 14pc amid fears of competition from AI rivals
Adobe has dropped 14pc in trading today after it forecast revenue for the current quarter below analysts' estimates, amid concerns of rising competition from AI-focused startups for its photography, illustration and video software.
"Expectations were perhaps a little higher in terms of what we would guide," chief executive Shantanu Narayen said during a conference call after the results, according to a Bloomberg report. "But you know I'm really optimistic about what we've done," he said of the software giant's AI initiatives.
Revenue will be $5.25bn to $5.3bn (£4.12 to £4.16bn) in the quarter, below the $5.1bn that analysts had forecast.
05:10 PM GMT
Stuttering growth could cause Europe to cut rates before America
Wall Street's main stock indexes are down today after a slew of data this week dampened hopes for several rate cuts from the Federal Reserve this year.
Shares in Paris and Frankfurt ended little changed Friday but rose during the course of the week.
The shares gained on expectations that Europe's stuttering growth might enable the ECB to start cutting interest rates this summer, even if the Fed doesn't.
Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics, said "the ECB doesn't need to wait for the Fed," and added that the Norwegian and Swiss central banks could cut rates in the coming weeks.
Even though neither country uses the euro, their moves would underscore that European monetary policy doesn't have to take its cue from the Fed.
Meanwhile, in the US, a sharper-than-expected jump in US wholesale prices sent US shares lower on Thursday and those inflation concerns carried over into Friday.
05:01 PM GMT
FTSE 100 closes down
The FTSE 100 closed down 0.20pc today. The biggest riser was British Airways owner IAG, up 6.18pc, followed by Vodafone, up 5.69pc. The biggest faller was Reckitt Benckiser, down 14.58pc, followed by tobacco giant Imperial Brands, down 2.56pc.
Meanwhile, the FTSE 250 rose 0.14pc. The biggest riser was bus and train company Firstgroup, up 13.41pc, followed by supplier to the oil and gas industry Hunting, up 7.02pc. The biggest faller was Bank of Georgia, down 6.57pc, followed by telecom infrastructure company Helios Towers, down 6.28pc.
04:57 PM GMT
Rolls-Royce to add 200 jobs in Derby as engines prove a hit
Rolls-Royce is to expand its engine manufacturing capacity in the UK and Germany amid booming demand for overseas travel. Matt Oliver reports:
The British engineering giant on Friday said it would increase its assembly, testing and shop capacity, to meet demand for its large engines and improve maintenance for those already in service.
Over the rest of this decade, the company predicts the number of aircraft using its Trent family of turbofan engines to grow by as much as 9pc annually.
As a result, Rolls is investing £55m and hiring 300 frontline workers to boost its operations in Derby and Dahlewitz, in Germany.
About half of the investment and two thirds of the jobs will go to Derby, the company said.
It will be used to expand the number of engines the company's factory there can deliver per year by 40pc from 2025, while also increasing the number of engines that can undergo maintenance.
Meanwhile, Rolls will take advantage of existing engine testing capabilities in Dahlewitz to temporarily meet extra maintenance demands before switching to assemble and test new Trent XWB-84 engines from 2026.
It comes after the company vowed to invest £1bn in improvements to the Trent engine family.
Last month Rolls revealed sales of its large aeroplane engines had surged to their highest level in 15 years.
04:45 PM GMT
BP among winners in North East gas-fired power station push
Major plans for gas-fired power stations that capture carbon took a key step forward today with the award of building contracts worth £4bn.
The joint-venture scheme, led by British energy giant BP plus France's TotalEnergies and Norway's Equinor, forms part of the Government plans for a net zero carbon economy by 2050.
The facilities, to be built in northern England by a date yet to be specified, come under the Net Zero Teesside Power and Northern Endurance Partnership banners.
The pair on Friday said they had "selected contractors for engineering, procurement, and construction contracts with a combined value of around £4bn". They added:
The selection of nine leading specialist contractors ... is a major milestone for the Teesside-based projects, which would contribute to the UK's journey towards net zero emissions by 2050.
Up to two million tonnes of CO2 would be captured annually before being transported and securely stored in subsea sites beneath the North Sea.
Companies awarded contracts included energy group Shell and infrastructure specialists Balfour Beatty.
Friday's announcement comes after Rishi Sunak's administration this week pledged to build new gas-fired power stations to boost energy security.
At the same time, the UK is rolling out low-carbon energies such as nuclear, solar and wind power in a strategy to combat sky-high domestic electricity and gas bills, which rocketed after key producer Russia invaded Ukraine in early 2022.
04:22 PM GMT
Reckitt Benckiser plunges after infant formula verdict
Dettol maker Reckitt Benckiser has fallen 17pc this afternoon. It followed an Illinois jury ordering the company's Mead Johnson division to pay $60m (£47m) to the mother of a premature baby who died of an intestinal disease after being fed the company's Enfamil baby formula.
Shares plunged on fears that the consumer goods company would face more financial liabilities from lawsuits related to the baby formula.
Reckitt told investors that it strongly disagreed with the jury's decision.
It said:
We continue to believe that the allegations from the plaintiff's lawyers in this case were not supported by the science or experts in the medical community … It is important to note that this is a single verdict in a single case and should not be extrapolated.
Reckitt added that it was "deeply disappointed with the verdict and will pursue all options to have it overturned".
Susannah Streeter, an analyst at Hargreaves Lansdown, said:
It's not simply the size of this payout which has caused nervousness, but the fact a long line of other lawsuits are pending, which could mount up to be a huge sum for the company.
04:19 PM GMT
Activist investor Oasis builds stake in Britain's biggest sandwich maker
A Hong Kong-based activist investor has built up shares in Britain's biggest sandwich maker after its share price fell by almost 50pc in the last five years. Daniel Woolfson reports:
Oasis Management has acquired almost 5pc of the shares in Greencore, a major supplier of sandwiches and ready meals to the UK's major supermarkets.
Greencore produces 779m sandwiches a year and supplies Sainsbury's, Marks & Spencer and the Co-op.
As well as sandwiches, it makes sushi, soups, packaged ready-meals and other chilled supermarket products. It employs around 13,600 people across the UK.
Its shares have been languishing since the pandemic, falling more than 45pc over the last five years.
Oasis has waged shareholder campaigns at a number of prominent consumer companies over recent years.
A stake of almost 5pc of the company would make Oasis one of Greencore's largest shareholders. It is understood that Oasis plans to continue buying shares. Once its stake rises above 5pc, it will be required to make a formal disclosure.
Oasis's European boss, Daniel Wosner, is understood to have met with executives at Greencore, the Financial Times, which first reported the news, said.
04:09 PM GMT
Thames Water's lenders hire advisors before £190m debt deadline
Lenders to Thames Water's parent company have reportedly hired advisers weeks before a £190m debt becomes due.
Sky News says a syndicate of financiers have hired accountancy firm EY, amid concerns from regulators and politicians about the water company's ability to survive.
In December, Thames Water admitted to MPs that the holding company did not "currently" have the money to make the repayment due in April.
Chris Weston, the newly appointed boss of Thames Water, has vowed to "restore confidence" in the business.
He said:
I recognise that this business is critical to both society and the UK and how important it is that we restore confidence in our operations and financial position.
Thames Water declined to comment.
03:36 PM GMT
Next set to deliver higher profits despite cost of living pressures
Next is set to reveal higher profits for the past year as investors hope the clothing chain continues to shrug off customers' cost-of-living pressures.
The retailer has already upgraded its profit outlook five times over the past year as it has outperformed rivals amid a challenging economic backdrop.
Shares in the company are trading at close to record highs as a result.
The retailer is expected to reveal a 4pc increase in pre-tax profits to £905m for the year to January, in its latest update on Thursday next week.
The group is also expected to reveal full-year sales growth of about 4pc against the previous year, taking sales to about £4.78bn.
Guy Lawson-Johns, equity analyst at Hargreaves Lansdown, said:
Next gave investors plenty to be happy about in their last update, with growth of 9.1pc in its online channel helping sales to exceed group forecasts.
While it may be winning the online race, the retail sector remains a tough place to operate.
And with a history of under-promising and over-delivering, markets have come to have high expectations.
03:32 PM GMT
Americans slightly less optimistic about the economy - but believe inflation will cool
American consumers have become slightly less optimistic about the world's largest economy this month, although they continue to expect inflation to cool further.
The University of Michigan's consumer sentiment index, slipped to 76.5 in March according to preliminary figures, barely below February's figure of 76.9. Americans' outlook has essentially remained fixed since January, when it leapt higher.
The consumer sentiment figure follows inflation reports this week that showed that, for a second straight month, prices rose at a pace faster than is consistent with the Federal Reserve's 2pc target.
The consumer price index rose 3.2pc in February compared with a year ago, up from 3.1pc in January.
Yet the University of Michigan report showed that Americans' outlook for inflation hasn't changed this month compared with February. Consumers expect inflation over the next year to be 3pc, the same as in the previous month.
03:31 PM GMT
Handing over
Alex Singleton is taking over now and will keep posting live updates into the evening. Thanks for joining me for another busy week of business news.
I'm heading off as I'm starting to feel a little like Bill Gates did when he was pictured watching Carlos Alcaraz taking on Alexander Zverev at Indian Wells.
He was lucky that the bees that attacked the tennis players wasn't nearby.
03:18 PM GMT
US manufacturing and mining rebound as weather improves
US industrial production ticked higher in February as an improvement in the weather helped boost manufacturing and mining, the Federal Reserve said, although earlier data was revised lower.
Production rose 0.1pc in February following a revised fall of 0.5pc in January, the Fed announced.
This was slightly above market expectations of no monthly change, but given the sharp downward revision for both December and January, the index remains lower than it was a year ago.
Much of February's rise was down to a 0.8pc rise in manufacturing output, and a 2.2pc increase in the index for mining.
"Both gains partly reflected recoveries from weather-related declines in January," the Fed said, adding that the "warmer-than-typical" month also helped push down the utilities index.
High Frequency Economics' chief US economist Rubeela Farooqi said: "Overall industrial production was slightly better than expected and manufacturing surprised to the upside in February."
She added that the manufacturing sector "continues to face headwinds from higher borrowing costs and tighter credit conditions."
02:59 PM GMT
Rail workers prepare to go on strike
Contract workers at Northern Rail will strike on Saturday in a dispute over pay, union recognition and working conditions.
Members of the Rail, Maritime and Transport union (RMT) employed by Carlisle Support Services will mount picket lines in Manchester, Leeds and Wigan.
About 150 workers are involved in the dispute, including ticket barrier staff.
RMT general secretary Mick Lynch said:
Our members are once again taking strike action against a company who has shown no regard for their staff and is not willing to settle this dispute.
We will continue our industrial campaign until we can reach a negotiated settlement.
Ultimately, the only, long-term solution is to end contracting out and bring the gateline contract back in house with all the benefits of direct employment from Northern.
02:38 PM GMT
Oil prices hold near $85 after deficit warning
Oil held near a four-month high after industry chiefs forecast that the Opec cartel would maintain production cuts until the end of the year, resulting in a deficit in the global crude market.
International benchmark Brent was down 0.5pc but still trading near $85 a barrel, after advancing 4.3pc over the previous two days.
It reached its the highest level since November on Thursday after the International Energy Agency issued its deficit warning.
Crude has also been supported this week by the first drop in US stockpiles since January, while Ukraine struck another Russian refinery.
02:20 PM GMT
JD.com passes up on chance to buy Currys
JD.com said that "following careful consideration, it does not intend to make an offer for Currys".
Representatives from the Chinese online shopping empire had made contact with the British retailer's board and held exploratory talks in recent weeks but never made a formal offer.
The discussions came as China's biggest retailer seeks new sources of growth amid a sharp consumer slowdown at home.
However, the Currys board indicated it was not prepared to be taken private at a discount, after rejecting two bids from US investor Elliott Management.
The electricals retailer's largest shareholder warned that more foreign corporates will start circling London companies.
Redwheel, which holds 14.6pc of shares in Currys, said it was in "complete agreement" with the company's board over their decision to reject a takeover offer from US hedge fund Elliott.
02:12 PM GMT
Chinese tech giant pulls out of Currys bidding war
A bidding war for Currys has been brought to a close after the Chinese suitor that had been circling the electricals retailer announced it would not make a bid.
Currys shares sank 6pc after JD.com confirmed it does not intend to make an offer.
It comes after the US hedge fund Elliott abandoned its attempt to take Currys private after two bids were rejected.
Elliott said on Monday that it is "not in an informed position to make an improved offer for Currys on the basis of the public information available to it".
02:07 PM GMT
Wall Street shares sink over $5.3 trillion trading quirk
Shares sank on Wall Street today as a $5.3 trillion trading quirk triggered a sudden price swing.
The Dow Jones was last down 0.4pc, the S&P 500 has fallen 0.6pc and the Nasdaq Composition has dropped 1.1pc as derivatives traders en masse face decisions about contracts that are scheduled to mature.
Traders are forced to either roll over their positions or open new ones, but with $5.3 trillion of contracts scheduled to expire today it will trigger sharp changes in markets.
The quarterly phenomenon affecting trades tied to stocks, index options and futures is known as "triple witching".
Rocky Fishman, founder of derivatives analytical firm Asym 500, said:
It's a day in which the direction of the market is very, very difficult to predict.
On these big expiration days, the 'internals' get so skewed by the expiration that they don't tell us anything.
Therefore, it will be important that investors don't use today's action when trying to decipher what is going to happen in the marketplace next week and beyond.
01:55 PM GMT
UK council wins £400m payout from Apple
An English council has won a $490m (£384m) legal victory against Apple over claims the tech giant exaggerated demand for its iPhones.
Our technology editor James Titcomb has the details:
Apple has agreed to pay shareholders the sum after settling with Norfolk County Council, which led a class action lawsuit against the company.
The settlement comes after a five-year lawsuit claiming Apple's chief executive Tim Cook had misled shareholders by neglecting to identify a downturn in demand in China weeks before a dramatic profit warning in 2019.
The case was originally brought against Apple, Mr Cook, and chief financial officer Luca Maestri by the US city of Roseville.
Norfolk Council, which administers the £4.9bn Norfolk Pension Fund, took over the lawsuit as lead plaintiff in 2020.
Read how the legal battle unfolded.
01:40 PM GMT
Wall Street opens lower
US stock markets fell at the open amid continuing uncertainty about the timing of the Federal Reserve's next interest rate cuts.
The Dow Jones Industrial Average was down 0.1pc to 38,871.08, while the S&P 500 dropped 0.6pc to 5,121.15.
The tech-heavy Nasdaq Composite dropped 0.8pc to 16,006.46.
01:13 PM GMT
Britain to import energy from US under plan for transatlantic power cable
Britain homes could one day be powered by electricity generated in America under plans to install up to six power cables across the Atlantic.
Our energy editor Jonathan Leake has the details:
The cables would stretch roughly 3,500 miles across the ocean, reaching depths of up to 11,000 feet, and carrying power roughly equivalent to several nuclear power stations.
A group of London investors and energy consultants are behind the ambitions scheme, as they claim technological advances in subsea cables could allow the creation of a global "intercontinental grid".
Simon Ludlam, one of the businessmen backing the project, says such a cable would enable electricity to be traded across the Atlantic, taking advantage of the differences in peak demand as the power line crosses time zones.
This graphic shows how transatlantic power sharing works.
12:52 PM GMT
US markets muted ahead of opening bell
The main US stock indexes were subdued in premarket trading after hotter-than-expected consumer prices and producer prices data.
Wall Street was set to end slightly higher this week in spite of figures pointing to sticky inflation, which had sent the yield on the 10-year US Treasury bond to a two-week high.
Higher inflation adds pressure on the Fed to keep interest rates elevated, pushing traders to rein in bets of a June rate cut to 60pc from 73pc last week, according to the CME FedWatch Tool.
All eyes are now on the Federal Reserve's meeting next week for hints on the timing of the central bank's rate-easing cycle.
Jim Reid, Deutsche Bank's global head of economics and thematic research, said: "At the Fed, the big question next week is what they'll signal in their new dot plot, and whether the median dot still points towards three cuts for 2024, as happened in December."
In premarket trading, the Dow Jones Industrial Averagewas up 0.1pc, the S&P 500 was flat and the Nasdaq 100 was down 0.2pc.
12:45 PM GMT
Telegraph gets new chairman to navigate UAE fallout
The Telegraph has won ministerial approval to appoint Mike McTighe as its chairman, as it faces the fallout from the failure of a takeover bid backed by the United Arab Emirates.
Business editor Christopher Williams has the latest:
Mr McTighe, 70, was previously chairman of Press Acquisitions Limited, the parent company of The Telegraph and The Spectator magazine.
By becoming chairman of The Telegraph itself, it is expected he will become more closely involved in the day-to-day running of the company and the corporate, regulatory and political challenges posed by the continuing uncertainty over its ownership.
Mr McTighe, who is also chairman of BT's independent network arm Openreach and the FTSE 250 spread betting operator IG Group, said he would seek "clarity and certainty" for The Telegraph to enable it to "continue delivering consistently high-quality and fiercely independent editorial content".
12:02 PM GMT
Rail union threatens strike action
A rail union is warning of possible industrial action against one of the country's biggest train operators in a dispute over working arrangements for control room staff.
The Transport Salaried Staffs' Association (TSSA) said strikes could be held by its members at South Western Railway (SWR) after the two sides failed to resolve a row over the "imposition" of changed working arrangements.
The union has now served notice of the first stage of an official process which it warned could lead to industrial action.
Gareth Theobald, TSSA organiser for SWR, said:
This isn't merely a shift in working patterns, it's a stark deviation from well-established norms and we urge SWR to return to the negotiating table without delay to resolve this issue.
It's vital that the company understand the seriousness of the situation. We want to avoid industrial action and ensure the continued provision of rail services to the public.
However, SWR should be in no doubt that if staff need to take action, then trains will come to a stop.
11:52 AM GMT
Pound on track for worst week in three months
The pound was set for its biggest weekly fall against the dollar since December, as investors became less certain about summer interest rate cuts from the US Federal Reserve amid stronger-than-anticipated inflation figures.
The slide in sterling comes after a period of relative strength for the currency, which has gained this year on bets the Bank of England will keep rates higher for longer than its peers.
However, the pound has been impacted by doubts over the Fed's plans for its first rate cut, with traders now rating the chances of 54.7pc in June, down from 67pc before the data showed stronger-than-expected producer price inflation.
Sterling was last broadly flat versus the dollar on the day at $1.27 but was on track for a 1pc weekly fall. The euro gained 0.1pc versus the pound to 85p.
The Bank of England is expected to keep rates on hold at 5.25pc next Thursday, with market pricing favouring the Bank of England cutting rates slightly slower than the European Central Bank and Federal Reserve this year.
11:38 AM GMT
Inflation expectations fall to lowest level since Russia's invasion of Ukraine
The British public's expectations for where inflation will be in a year's time has fallen to its lowest level in three years amid hopes that interest rates will be cut this summer.
The Bank of England's inflation attitudes survey found that the average expectation of what the rate of inflation will be over the coming year was 3pc, down from 3.3pc in November last year.
This was the lowest level since August 2021, before Vladimir Putin's decision to invade Ukraine, triggering an energy inflation crisis across the globe.
It comes as Russia holds national elections which Ukrainian defence intelligence (DIU) said would see Moscow mark ballot papers with the names of dead, missing and captured soldiers in order to boost Putin's support.
11:22 AM GMT
BT investor agrees sale of part of French media empire
French shipping company CMA CGM has agreed to buy part of the media business owned by French billionaire Patrick Drahi, who holds a nearly 25pc stake in BT.
CMA CGM's chief executive Rodolphe Saade intends to create a large media conglomerate in France following the purchase of Altice Media, which owns leading French news channel BFM TV.
Altice's founder and owner Patrick Drahi said the deal would allow further investments into the group's media such as BFM TV station and RMC radio station.
The sales comes after the BT investor said last year that he "feels betrayed" over an alleged corruption scandal within his telecoms empire that triggered the arrest of his right-hand man.
The French billionaire said that he was "shocked" after Portuguese authorities launched a criminal investigation into alleged corruption by individuals and senior executives within his sprawling media and telecoms group.
BFM is France's leading TV news channel, and says it has 12 million daily viewers.
10:49 AM GMT
McDonald's forced to close restaurants amid IT chaos
McDonald's has apologised after it suffered an IT system outage in its British restaurants, which forced the closure of some sites and left customers unable to order food.
The fast food giant insisted it was not hit by a cyber attack after consumers took to social media to complain of issues in several countries including the UK, Japan, China, Sweden and Australia.
The Japanese arm of the chain apologised to customers on social media, telling them that they would have to "wait a while" amid the issues.
"Many stores across the country have temporarily suspended operations. We apologise for any inconvenience caused to our customers," it posted on X, formerly known as Twitter.
People in Australia, meanwhile, posted pictures of closed restaurants and signs alerting diners that McDonald's could not accept orders.
The cause of the outages is unknown, but it appears to be linked to the chain's IT systems.
Some stores were reported to be operating but only able to take cash orders.
A McDonald's spokesman said: "We are aware of a technology outage which impacted our restaurants. The issue has now been resolved in the UK and Ireland.
"We thank customers for their patience and apologise for any inconvenience this may have caused. The issue is not related to a cybersecurity event."
10:44 AM GMT
Customers complain McDonald's sites are closed
McDonald's customers have taken to social media to complain about the outage at the fast-food giant:
10:27 AM GMT
McDonald's customers unable to order food after IT glitch
McDonald's has suffered a reported IT system outage in some of its restaurants, which has left customers unable to order food.
Customers in the UK, Australia, New Zealand and Japan complained about issues trying to buy from the fast food giant on social media.
In Japan, the company apologised to customers on social media and said they may need to "wait a while" for problems to be resolved.
In the UK, a number of customers said on social media that their local restaurants were closed although they were able to make orders through the company's app.
A McDonald's Australia spokesman said it was "aware of a technology outage" currently impacting stores, according to the Daily Mail.
10:19 AM GMT
Gas prices rise amid high costs of emissions permits
Wholesale gas prices have climbed as the cost of permits for EU carbon emissions increased.
Europe's benchmark contract has jumped as much as 2.5pc to more than €26 per megawatt hour as the cost of carbon permits rose.
The EU contract is the price that 11,000 power plants, steel foundries, and factories - covering 45pc of Europe's greenhouse emissions - must pay for each tonne of carbon emitted under the "polluter pays principle".
The rising cost of the permits has made it more attractive for traders to buy gas rather than higher emitting coal, the price of which is on course for a fourth weekly gain.
Meanwhile, the end of the winter means that Europe is beginning to rebuild supplies ahead of the next cold season.
09:55 AM GMT
High insolvency numbers 'unlikely to stop any time soon'
David Hudson, restructuring advisory partner at FRP, warned that high insolvency levels "are unlikely to stop any time soon".
There were 2,102 company insolvencies in February, up 17pc on the same month a year earlier and up 18pc from January.
Mr Hudson said:
Rather than fresh starts, the spring brings with it additional challenges for already distressed businesses, particularly those in the strained retail and hospitality sectors.
Despite hopes of some respite from the Chancellor in last week's Budget, many will see large rises in their business rate bills from the start of April as well as having to shoulder increased wage costs as the new National Living Wage takes effect.
While the positive view is that the UK's recent recession was short-lived, factors like these – combined with increased borrowing costs and consumer confidence remaining weak – will continue to weigh heavily on UK plc.
09:51 AM GMT
Insolvencies surge amid high interest rates
The number of company insolvencies in England and Wales has grown as businesses battle against high interest rates.
Some 2,102 firms went under in February, up 17pc on the same month a year earlier and up 18pc from January.
There were 10,136 individuals who declared insolvency in February, which was 23pc higher than in the same month in the previous year.
09:30 AM GMT
European stocks on track for longest surge in six years
European stock markets are on track for their strongest run in six years amid hopes for interest rate cuts.
The Stoxx 600, which includes companies across Europe's main markets, including the FTSE 100, is poised to notch an eighth consecutive weekly gain after hitting a series of record highs.
If confirmed, it would be the longest run in six years, with the market boosted today by Vodafone's announcement today that it is selling its Italian business for €8bn (£6.8bn) to Swisscom.
It comes amid growing hopes for interest rate cuts from the US Federal Reserve and European Central Bank over the summer.
However, the Stoxx 600 was flat today amid stronger-than-expected US inflation figures put the brakes on the rate cut excitement.
09:06 AM GMT
Racist talk is commonplace at work 'without a doubt', says Phillips
Sir Trevor Phillips, the broadcaster and chairman of Green Park executive recruitment organisation, has said his company's clients think racism is common in the workplace.
His recruitment company puts 500 people into executive level and boardroom jobs each year, a third of whome are from ethnic minorities and half of which are female.
Sir Trevor told BBC Radio 4:
If you have a woman in the room, it is far less likely that people are going to say dumb, sexist stuff.
If you have a person from an ethnic minority in the room, it is far less likely they are going to say dumb, racist stuff.
The fact that our clients regard this as important, tells us without a doubt that they know this kind of talk is commonplace and they would rather not have it.
He added: "Nobody has a right to say dumb, racist stuff any more than they have a right to come into the office and gob on the carpet."
08:43 AM GMT
FTSE 100 hit by US inflation woes
The FTSE 100 was little changed amid a downbeat mood on global markets after persistent US wholesale inflation created uncertainty about interest rate cuts.
The exporter-heavy FTSE 100 edged down 0.1pc, while the domestically-oriented FTSE 250 gained 0.2pc.
Markets tracked dour sentiment from Wall Street and Asian equities, as higher-than-expected consumer and producer inflation readings dampened investor hopes of an early interest rate cut from the Federal Reserve.
Investors will now watch the Bank of England's interest rate decision next week, where it is widely expected to leave rates unchanged at 16-year highs of 5.25pc.
Among individual stocks, Vodafone UK rose 4.2pc after Swisscom said it will buy Vodafone Italia for €8bn (£6.8bn) to merge the business with its Italian subsidiary Fastweb.
British Airways owner IAG climbed as much as 4.6pc to lead the FTSE 100 after a double upgrade from BNP Paribas.
08:17 AM GMT
Berkeley shrugs off housing sector woes
Berkeley Homes expects to make £1.5bn of pre-tax profits over the next three years as the property sector moves past the woes caused by high interest rates.
The developer said in a trading update that it expects to make a profit of £550m this financial year - as analysts had expected - despite sales rates remaining around a third lower than the previous year.
It said it will return £227m to shareholders through dividends and share buybacks by the end of September.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said the company is "sitting on solid ground" as its focus on London and higher-end homes paid off. He said:
While markets aren't forecasting much of an uplift in the housing market in 2024, there are some early signs that pressures are beginning to ease for housebuilders.
Mortgage rates have fallen from peak levels, real wages are growing and build-cost inflation has pulled back, giving some relief to industry margins.
Berkeley's also sitting on a hefty chunk of cash, so there's plenty of scope for continued shareholder returns through a combination of dividends and share buybacks.
Berkeley Homes shares fell 0.3pc in early trading.
08:04 AM GMT
FTSE 100 muted at the open
The FTSE 100 was flat as trading began following uncertainty that also gripped Wall Street and Asian markets following mixed US economic figures on Thursday.
The UK's blue-chip index began the day little changed at 7,743.96 while the midcap FTSE 250 gained 0.2pc to 19,531.84.
07:55 AM GMT
Bitcoin falls from record high amid bubble fears
Bitcoin has dropped back sharply from its recent record high amid fears the latest surge in cryptocurrencies is a bubble.
The world's largest digital token fell more than 5pc in the Asian session to bottom at $66,629.96. It was last down 3.9pc at $68,644.80.
The choppy moves in the world's largest cryptocurrency came a day after its charge to a high of $73,803.25, setting a new record for a fourth straight day.
Bank of America chief investment strategist Michael Hartnett told Bloomberg TV that markets are showing the characteristics of a bubble.
He pointed to the surge in the technology sector's so-called Magnificent Seven stocks and the all-time highs in crypto.
Matt Simpson, senior market analyst at City Index, said:
Bitcoin has an established history of getting volatile and ruthless after hitting (a) record high.
And not only did it recently hit a new high, but it looks like the (Federal Reserve) won't be as dovish as traders had hoped.
07:51 AM GMT
China's property crisis deepens as house prices fall
China's property crisis took another turn for the worse as home prices continued to fall last month.
Both new and used home prices declined in February compared to a year earlier, according to the National Bureau of Statistics.
New-home prices in 70 cities, excluding state-subsidised housing, fell 1.9pc from a year earlier, steeper than January's 1.2pc drop.
Meanwhile, existing-home prices dropped 5.2pc, worsening from 4.5pc fall in January across all 70 cities.
China has been grappling a post-pandemic economic downturn that has led to a significant slump in property investment across the country, which has led to a slowdown in growth.
One of China's biggest housebuilders, Evergrande, collapsed in 2021, which spooked the whole market. Other developers have also been going bust.
07:40 AM GMT
Vodafone sells Italian business for £6.8bn
Vodafone has confirmed the sale of its Italian business to Swisscom for €8bn (£6.8bn), weeks after rejecting an approach by French billionaire Xavier Niel.
The British telecoms giant also announced a €4bn (£3.4bn) share buyback plan.
The Swiss company said in a statement that it would merge Vodafone Italia with its own Italian subsidiary, Fastweb.
It marks the latest deal pursued by Vodafone boss Margherita Della Valle as she looks to trim the sprawling telecoms giant and return it to growth.
The company has recently agreed a £15bn deal to merge with Three in the UK, creating the country's largest mobile network.
Ms Della Valle said:
Today, I am announcing the third and final step in the reshaping of our European operations.
Going forward, our businesses will be operating in growing telco markets - where we hold strong positions - enabling us to deliver predictable, stronger growth in Europe. This will be coupled with our acceleration in B2B, as we continue to take share in an expanding digital services market.
07:29 AM GMT
Honda and Nissan strike EV partnership to fend off Chinese competition
Nissan and Honda have said they will work together on developing electric vehicles as they try to fend off competition from Chinese rivals.
The chief executives of the two car makers appeared together in a news conference in Tokyo to announce that Japan's second and third biggest carmakers would look into possibilities, scope and areas that show potential for collaboration in electrification and auto intelligence technology.
Their agreement is non-binding, and discussions will now start, they said.
It comes as Japanese manufacturers battle strong competition in China, with both Honda and Nissan are reportedly planning to cut production capacity in China as sales continue to fall. Mitsubishi has pulled out of the world's second largest economy altogether.
China's BYD announced plans to roll out new models and expand its network in Japan.
Seiji Sugiura, senior analyst at Tokai Tokyo Intelligence Laboratory, said the deal is advantageous because "both the parties are in trouble".
He added if they collaborate on batteries, that "will save them a lot of cost".
07:18 AM GMT
Barratt's £2.5bn deal to buy Redrow faces investigation from competition watchdog
The competition watchdog has launched an investigation into a £2.5bn merger between two of Britain's biggest house builders.
Barratt Developments, the country's largest housebuilder, announced plans last month to buy competitor Redrow in a deal that will allow the combined company to build around 22,000 homes each year.
However, the Competition and Markets Authority (CMA) has revealed it is investigating whether the deal may "result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services".
Both housebuilders are now facing two separate inquiries by the regulator after the CMA last month opened an investigation looking at suspected illegal information sharing between Britain's biggest housebuilders amid fears that collusion in the industry has pushed up prices.
The watchdog will investigate the practices of Barratt Developments, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry.
The CMA today issued an invitation for comments on Barratt Developments' proposed £2.5bn takeover of Redrow.
Interested parties have until April 2 to submit their views before the regulator begins the next phase of its inquiry.
07:12 AM GMT
Good morning
Thanks for joining me. A £2.5bn merger between housebuilders Barratt and Redrow will be investigated by the competition regulator.
The Competition and Markets Authority has announced it will examine the tie up, which will build create a company that builds around 22,000 homes each year.
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What happened overnight
Asian markets retreated, with Hong Kong's benchmark falling nearly 2pc, after a mixed batch of data on the US economy dashed hopes that easier interest rates are coming soon.
Tokyo's Nikkei 225 declined 0.3pc to 38,707.64, while the Kospi in South Korea sank 1.9pc to 2,666.84.
Hong Kong's Hang Seng was down 1.7pc at 16,676.70 after reports said housing prices have continued to fall since February.
The Shanghai Composite index gained 0.3pc to 3,055.16, while the S&P/ASX 200 shed 0.9pc to 7,670.30.
US stocks slipped yesterday after a mixed batch of economic data seemed dampened hopes that easier interest rates will arrive quickly.
The S&P 500 fell 0.3pc, to 5,150.48, though it's still close to its all-time high set on Tuesday. The Dow Jones Industrial Average sank 0.4pc, to 38,905.66, and the Nasdaq Composite index lost 0.3pc, to 16,128.53.
The moves were more decisive in the bond market, where US Treasury yields rose after a report showed inflation was a touch hotter at last month than economists expected.
The yield on the benchmark US 10-year Treasury bonds jumped to 4.29pc from 4.18pc late on Wednesday.