Summary

  • Get in touch: bizlivepage@bbc.co.uk

  • Sterling hits two year lows

  • Ocado earnings slump 46% after fire

  • Eddie Stobart warns of troubles ahead

  • Bovis Homes upbeat on demand

  • Remy Cointreau boss resigns

  1. Smelly lunch? No thanks!published at 09:05 British Summer Time 9 July 2019

    Boiled eggs and tunaImage source, Getty Images

    Thanks for all your comments about desk-eating (that's eating at your desk, not eating your desk!).

    Oli Sonenfield of Burson Cohn & Wolfe says colleagues are safe from his smelly lunches because of company policy.

    “Where I work we’re actively encouraged to eat away from our desks – luckily for my pod neighbours who don’t have to put up with my lunches that usually consist of eggs and tuna,” he writes.

    Keep your comments coming to bizlivepage@bbc.co.uk

  2. FTSE winners and loserspublished at 08:56 British Summer Time 9 July 2019

    Ocado group is the only real winner in today's FTSE 100.

    Shares in the online grocer are up 5.55% after its half-year results were published.

    But among a sea of red, Melrose Industries lead the losers, falling 6.37%.

    Three other blue-chip shares have fallen more than 3%: Just East, down 3.99%, NMC Health, down 3.79%, and Tui, down 3.52%.

  3. Clouds amassing over the UK economypublished at 08:47 British Summer Time 9 July 2019

    Today Programme
    BBC Radio 4

    UK shoppersImage source, Getty Images

    A new survey from the the shopkeepers association the BRC showed consumer spending in June was at its weakest since the mid-1990s, adding further to evidence that the British economy is shrinking.

    Total sales fell in June by 1.3%, while the annual rate of growth slowed to 0.6%.

    "There's a lot of signals of a negative out-turn in terms of GDP growth in the second quarter. The biggest area of weakness is really business confidence. Construction especially is deep into contraction territory, but overall business confidence is weak as well," Supriya Menon, senior multi-asset strategist at Pictet Asset Management told Today.

    "In addition to that, consumer confidence has been a bit thick and tumble. There's been concern about the economy in the months ahead, so consumers are no longer holding the economy up."

  4. 'It's critical that we develop more storage'published at 08:41 British Summer Time 9 July 2019

    Today Programme
    BBC Radio 4

    Off-shore wind turbines in Germany owned by E.OnImage source, AFP
    Image caption,

    Off-shore wind turbines in Germany owned by E.On

    As we mentioned earlier, energy supplier E.On has an ambitious plan to produce renewable electricity that is matched exactly to each hour of electricity sold to its residential customers.

    But how will this be possible, when weather conditions change over the year, and sometimes there is less sunlight or wind?

    "It's critical that we develop more storage and we will have batteries either in the homes, and we ourselves are developing solar PV batteries, but also from the development of electric vehicles," Michael Lewis, the UK chief executive of E-On told Today.

    "There will be a large amount of embedded storage in the system, and technologies like hydrogen for example, can also provide an answer.

    "So elements of all of those technologies will be required to ensure we can have a 100% renewable energy system which is also able to balance supply and demand in real-time."

  5. Ocado: 'No fire sale'published at 08:33 British Summer Time 9 July 2019

    Ocado vanImage source, AFP

    According to Neil Wilson, chief market analyst for Markets.com, despite taking a £100m hit and reporting a £43m pre-tax loss, Ocado has largely shrugged off the fire at its Andover warehouse to deliver a healthy bump in retail revenues.

    Mr Wilson believes international partnerships will play a big role in bringing Ocado back into profitability, as the revenue stream, although small now, is expected to grow sharply.

    "Bottom line – big hit from the Andover fire on group earnings this year but this is already baked into the share price and the fees from international deals are starting to come through.

    "These will ratchet up significantly in the coming years. M&S deal provides necessary cash for investment whilst deleveraging the business from the UK retail market."

  6. Nintendo eyes production shift out of Chinapublished at 08:20 British Summer Time 9 July 2019

    : View of Nintendo signage during the 2019 E3 Gaming Convention at the Los Angeles Convention Center on June 13, 2019 in Los Angeles, CaliforniaImage source, Getty Images

    Nintendo is planning to shift some of the production of its Switch gaming console to Vietnam from China, Reuters has reported., external

    The shift is aimed at diversifying risks, a spokeswoman said, according to the report.

    It comes as China and the US have been embroiled in a trade war over the past year, placing tariffs on billions of dollars worth of one another's goods.

  7. Sports Direct offer for Game Digital 'unconditional'published at 08:11 British Summer Time 9 July 2019

    Sports Direct boss Mike AshleyImage source, Reuters

    Mike Ashley's Sports Direct said this morning its £51.9m offer for video games retailer Game Digital is now unconditional after it attracted backing from shareholders owning nearly 16% of shares.

    Sports Direct said, that together with its 38.5% stake, it now owns or has received backing from shareholders representing 54.3% of Game Digital.

    It said its offer is now "declared unconditional in all respects", but will remain open for acceptances from investors until the 1pm deadline on Thursday, 11 July.

  8. FTSE slips on openingpublished at 08:02 British Summer Time 9 July 2019
    Breaking

    The FTSE 100 has opened at 7,540.37, down 8.90 or 0.12%.

    Meanwhile the FTSE 250 opened at 19,556.86, down 24.61 or 0.13%.

  9. Micro Focus earnings climb 1.8%published at 07:49 British Summer Time 9 July 2019

    Micro Focus buildingImage source, Micro Focus

    Micro Focus International has reported a 1.8% rise in first-half earnings to $662m (£529m) after it squeezed more profit from the legacy software it provides to companies.

    Revenue fell 5.3% to $1.65bn, which was in line with market expectations, the company said.

    It repeated its guidance that its revenue to fall by between 4% and 6% for the year.

  10. Bovis upbeat on demand for homespublished at 07:34 British Summer Time 9 July 2019

    Bovis Homes siteImage source, Getty Images

    Bovis Homes Group said it expects to report a significant improvement in first-half profit, with demand for new homes fuelling an improved annual operational and financial performance.

    The homebuilder said it delivered 1,647 completed homes in the six months to the end of June, 4% up on the previous year's 1,580.

    The average selling price in the period climbed to £342,000, up from £334,700. That was driven by improved geographical spread of sales outlets, the company said.

    "We have had another controlled period, focused on delivering high quality homes," said boss Greg Fitzgerald.

    In May the company's £950m offer for rival Galliford Try's home building business was rejected.

  11. Eddie Stobart warns of troubles aheadpublished at 07:27 British Summer Time 9 July 2019

    Eddie Stobart truckImage source, Universal Images Group / Getty Images

    Transport and logistics group Eddie Stobart is warning that its first half results for 2019 will likely be towards the lower end of expectations, despite posting upbeat results.

    Group revenues jumped 25% compared to the same period in 2018, while like-for-like basis revenues rose 8%, due to continuing organic growth and a number of new contract wins.

    However the company said its first half results would be affected slower-than-expected productivity in its contract logistics and warehousing businesses, as well as the short-term adverse effects on the operational efficiency of its transport network, due to "exiting a problematic contract".

    Despite this, Eddie Stobart believes it will still be able to deliver full-year results in line with expectations.

  12. Ocado earnings slump 46% after firepublished at 07:20 British Summer Time 9 July 2019

    Ocado fireImage source, HRFS

    Ocado reported a 46% fall in first-half earnings, reflecting the loss of capacity after that February fire.

    The company made adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of £18.7m in the 26 weeks to 2 June compared to £34.8m in the same period last year.

    Ocado is confident about its outlook. "We have never had as many opportunities to grow as we do today," it said.

  13. Ocado fire cost £110.3mpublished at 07:14 British Summer Time 9 July 2019

    Ocado fire warehouseImage source, Reuters

    The fire which destroyed Ocado's Andover warehouse in February cost the firm £110.3m.

    The total was offset by £11.8m of insurance proceeds to bring the net cost to date down to £98.5m, the company said in its half-year report.

    The company said the fire impacted 2% of sales in its first half year but retail revenue growth was still 9.7%.

    Turning to its technology partnerships, fees invoiced from Solutions partners were £122.7m, up 36%, with fees from international partners almost doubling.

  14. Virgin Galactic to go public: reportspublished at 07:02 British Summer Time 9 July 2019

    Virgin Galactic planeImage source, Virgin Galactic

    Reports are coming in that Richard Branson's space-tourism venture, Virgin Galactic, plans to go public.

    The Wall Street Journal said the Social Capital Hedosophia Holdings Corp will invest about $800m for a 49% stake in Virgin Galactic.

    The deal could be announced this morning, according to the reports.

    Branson's company is racing against Blue Origin, the space business of Amazon founder Jeff Bezos, to bring tourists into space.

  15. 'We've got a one-to-one match to drive renewable electricity'published at 06:52 British Summer Time 9 July 2019

    Today Programme
    BBC Radio 4

    E.on energyImage source, Getty Images

    Supplier E.On is to provide all of its residential UK customers with an electricity supply that is wholly matched by renewable sources including wind, biomass and solar.

    It's one of the biggest green energy switches to date, and comes at no extra cost to customers.

    A recent survey found 77% of households said they were concerned with climate change, and 79% said they could improve their own sustainable behaviour.

    "For every kW hour of electricity we sell to our residential customers, we will ensure that 1kW hour of renewable electricity is produced onto the system. And that comes either from the own assets that we've built or with partnerships with developers we have, or by buying them on the market," Michael Lewis, the UK chief executive of E-On explains to BBC Radio 4's Today programme.

    "It means we've got a one-to-one match to drive renewable electricity in the market and it gives our customers what we believe they want."

  16. L'Oreal CEO says Chinese business boomingpublished at 06:38 British Summer Time 9 July 2019

    Photo taken on February 7, 2010 shows the logo of French group L'Oreal, the world's largest cosmetics maker on L'Oreal headquarters in Clichy, near Paris.Image source, Getty Images

    The head of comestics giant L'Oreal has said its Chinese buisness is booming in an interview with the Financial Times., external

    “We’ve doubled the size of our business in China over the past four years, and the beauty market there is still very dynamic, especially the luxury segment,” Jean-Paul Agon, the company' s chief executive, was quoted as saying.

  17. The FTSE 100's best-performing share will report today...published at 06:24 British Summer Time 9 July 2019

    BBC Radio 5 Live
    Wake Up To Money

    Ocado officeImage source, Reuters

    Ocado is the top performing share in the FTSE 100 in the year to date: it's up 55%.

    It reports first-half results this morning. What’s in prospect?

    "Ocado is not expected to deliver a statutory profit any time soon and, in fact, the losses have been increasing, so really it’s all about whether it’s delivered on its technology partnerships," Supriya Menon of Pictet Asset Management told Wake Up To Money.

    She said the reason Ocado shares have done so well is because the market has been looking at it more as a technology company

    "Its valuations are more akin to a technology growth company than a grocery business," she said.

    "So the market will be looking for more news on its technology partnerships."

  18. Why did Deutsche Bank disappoint the market?published at 06:14 British Summer Time 9 July 2019

    BBC Radio 5 Live
    Wake Up To Money

    Deutsche Bank officeImage source, Getty Images

    Deutsche Bank shares slumped a further 5% yesterday after it published its long-awaited restructuring plan and announced that 18,000 staff would be axed.

    Why did the news disappoint the market?

    “There are a couple of reasons,” Supriya Menon, Senior Multi Asset Strategist at Pictet Asset Management told Wake Up To Money.

    First is "a clear area of risk, having to do with revenue growth," she said.

    The bank has projected a return on assets of about 8% by 2022 but that would suggest that revenue grows by about 3% every year.

    “That just doesn’t seem credible. They haven’t delivered on that recently," she pointed out.

    She also warned that the bank would face difficult market conditions as it goes through its "enormous retrenchment", so it's projection "seemed way too optimistic".

    She added that the market is also questioning the part of the restructuring plan which involves the bank raising more capital. "Will it be enough?" she asked.

  19. Hong Kong extradition bill "is dead": Carrie Lampublished at 06:06 British Summer Time 9 July 2019

    This picture taken on June 13, 2019 shows a general view shows of the Hong Kong skyline.Image source, Getty Images

    Hong Kong leader Carrie Lam has said the controversial bill that would have allowed extradition to the Chinese mainland "is dead".

    In a press conference this morning, Ms Lam said the government's work on the bill had been a "total failure".

    But she stopped short of saying it had been withdrawn completely, as protesters have been demanding.

    At the height of the recent protests against the extradition bill, many worried it would hurt Hong Kong's status as a global financial centre.

  20. Asian stocks broadly lowerpublished at 06:01 British Summer Time 9 July 2019

    Investors watch an electronic ticker board displaying stock figures at a stock exchange hall on July 8, 2019 in Nanjing, Jiangsu Province of China.Image source, Getty Images

    Asian stocks were broadly lower this morning.

    In China, Hong Kong's Hang Seng index fell 0.8% while the Shanghai Composite was down 0.6%.

    Japan's benchmark Nikkei 225 was flat on the day.