Faisal Islam
BBC Economics Editor

The Bank of England says the British banking system is still resilient to the financial impact of a worst-case disorderly Brexit, even as the chances of a no-deal Brexit have increased in recent months.

In publishing its regular health check on the banks, the Financial Stability Report, the Bank said: “The perceived likelihood of no-deal Brexit has increased since the start of the year”.

It said that “material risks” of economic disruption from such a scenario remain, but that there had been “some improvement in the preparedness of of the UK economy for no-deal Brexit”.

This worst-case scenario stress test involves the economy shrinking by 4.7%, unemployment more than doubling to 9.5%, and property prices falling by 33%.

The Bank’s key Financial Policy Committee went further than it has before by saying that the banking system would also be resilient to a disorderly Brexit occurring at the same time as a global trade war involving 25% tariffs on US-China trade, all global inputs and a 30% drop in the US stock market.

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It follows a Department for the Economy warning that no deal could put 40,000 jobs at risk.

Theo Leggett
BBC International Business Correspondent

Image source, Reuters

This is a key moment for Norwegian.

Bjorn Kjos was one of the founders of the company. As the man in the pilot’s seat since 2002, he was also the driving force behind its expansion from a tiny regional carrier to become a major player in Europe’s low cost market. He also led the move into the long-haul market, using a new generation of efficient aircraft such as the Boeing 787 Dreamliner to offer cheap flights to the US, South America and even Thailand.

There was no shortage of passengers, but all of this growth came at a cost. The airline has billions of dollars’ worth of debt, and over the past couple of years has racked up hefty losses. In March, it was forced to sell new shares in order to raise hundreds of millions of pounds in new funding. It’s also had to cut routes and sell some planes.

The signs are that this radical action is starting to take effect, giving Mr Kjos the chance to bow out on a positive note. A new figurehead can now be appointed to guide the company, as it attempts to turn market share into sustainable profits. It won’t be easy. As the likes of Monarch, Flybe and Air Berlin have shown, the low cost market is a harsh environment, where only the fittest survive.

Of course there is another option. A new chief executive might be more willing than Mr Kjos to consider a takeover approach – from British Airways’ parent IAG for example. But let’s not forget that the outgoing chief executive will remain a powerful influence within the company, both through the shareholding of his company, HBK Holding, but also through his new role as an adviser.

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After a tough few days the pound has strengthened slightly this morning.

Worries over the prospects of a no-deal Brexit contributed to a fall in the currency earlier in the week, and it hit a two-year low of $1.2439 at one point.

However, sterling has gained 0.25% so far today and currently stands at $1.2540. The move is partly due to a weakening of the dollar, after Federal Reserve chairman Jerome Powell hinted that a US rate cut could be on the cards.

Image source, Barratt Developments

Barratt Developments is the FTSE 100's biggest riser this morning after the housebuilder said full-year profits will beat forecasts.

The company said it has reduced the height of its houses to help cut costs and is reducing its exposure to the London market.

It share price is ahead 3.73% at 605.9p. Reckitt Benckiser is also ahead, up 2.75% at £66.03 following its US settlement over claims linked to its former company Indivior.

Ocado, on the other hand, dropped 2.47% to £11.84.

The FTSE 100 is up 0.24% at 7,548.78.

Asia markets were broadly higher on Thursday.

Japan's benchmark Nikkei 225 was up 0.5% to 21,643.53.

In China, Hong Kong's Hang Seng index rose 0.8% to 28,431 while the Shanghai Composite was little changed on the day.

Image source, Reuters

Oil prices tightened on Thursday after Iran attempted to 'intercept' a British oil tanker and hurricanes threatened the Gulf of Mexico.

West Texas Intermediate rose by 0.48% to $60.72 a barrel while Brent crude increased by 0.39% to $67.27.

Tensions have been rising int he Middle East recently after attacks on tankers and the downing of a US drone by Iran last month.

Meanwhile, a number of oil platform and rigs have been evacuated ahead of major storms in the Gulf of Mexico.

Image source, Getty Images

France's finance ministry has hit back at Donald Trump's request for an investigation of the Digital Services Tax which could lead to tariffs on French goods.

The department said in a statement: "For us, [the tax] is totally compliant with international agreements. Countries are sovereign on tax matters. So for us it is inappropriate to use a trade instrument to attack a sovereign state."

Image source, Getty Images

Shares in Indivior, maker of the opioid addiction treatment Suboxone, jumped by 23% 54.48p after it lifted its outlook for the full-year.

It now expects to make a annual profit of between $80m (£63.8m) to $130m, after a better than expected performance of Suboxone.

Indivior had previously forecast a loss of $40m to a profit of $10m.

The company also expects annual revenues of between $670m (£534.6m) and $720m. It compares to previous forecasts of between $525m and $575m.

Indivior said Suboxone had performed better than expected.

Indivior was previously part of Reckitt Benckiser which today said it had paid $1.4bn to settle claims in the US over the sales and marketing of Suboxone.

Image source, Getty Images

Property group Land Securities, whose interests include the Bluewater and Lakeside shopping centres, has said its chief executive, Robert Noel, will retire next year.

Annoucing the move, Mr Noel said: Next year I will have spent 10 years at Landsec, eight as chief executive.

"With the business well positioned for the current market, a growing pipeline and a clear strategy for the future, it's the right time for me to move on."

Land Securities says Mr Noel will continue in his role until his successor is appointed and for an appropriate handover period.

Image source, Getty Images

Bang & Olufsen, the upmarket Danish TV and stereo maker, reported an operating loss of 66 million Danish crowns (£7.9m) in the fourth quarter compared to a gain of 55 million crowns last year.

Earnings before interest and tax for the year to May fell 50% to 59 million crowns while sales dropped 13.6% to 2.8 billion crowns.

The FTSE 100 opened marginally higher, up 0.23% to 7,548.69.

The FTSE 250 rose 0.35% to 19,487.18.

Image source, Getty Images

Sky News is reporting, external that fracking for shale gas will restart in the north west of England later this year.

Cuadrilla, the energy company, says it will "remobilise hydraulic fracturing equipment in the third quarter of 2019".

It said work will completed by the end of November "subject to regulatory approvals".

Fracking was suspended last year following minor seismic events.

Image source, DFS

DFS says it's made "good strategic progress" over the past year and its full-year profits are set to be in line with expectations.

The furniture retailer, which specialises in sofas and soft furnishings, said underlying gross sales grew 7% in the year to 30 June.

It expects underlying profit before tax to be "slightly above £50m", compared with £38.3m lastyear.

However, the DFS said it remained "mindful of the risk that the volatile political and economic backdrop may further impact on already low consumer confidence levels".

"Our progress in the near term will inevitably be somewhat dependent on this backdrop."

Today Programme
BBC Radio 4

Image source, Newscast

Ocado might have tech fixes for a lot of challenges in the grocery distribution business but a no-deal Brexit might prove a challenge too far.

Chief executive Tim Steiner says it isn't possible to prepare properly for even just a brief standstill at the border.

"You can’t take any precautions really," he told Radio 4's Today Programme.

"We run our business on around a week of inventory in total. So to buy a week of inventory we would have to double the size of our facilities and our facilities are full so we’d have to buy replica facilities for that one week. It's just not possible."

Image source, Getty Images

Reckitt Benckiser has announced it will pay $1.4bn to resolve US federal investigations linked to Suboxone Film, the opioid-addiction treatment made by Indivior.

The firm has reached the deal with the Department of Justice and the Federal Trade Commission following legal action claiming that Indivior, which was demerged by Reckitt Benckiser in 2014, "deceived" healthcare providers that Suboxone Film was "safer, less divertible and less abusable than other opioid-addiction treatment drugs".

The company said: "While RB has acted lawfully at all times and expressly denies all allegations that it engaged in any wrongful conduct, after careful consideration, the board of RB determined that the agreement is in the best interests of the company and its shareholders."

Image source, Getty Images

France is the only country so far to move ahead with a Digital Services Tax - no other nations have stuck their heads above the parapet.

And it highlights the problem of how big technology companies should be taxed.

Claire Shaw, senior portfolio manager at Syz Asset Management, says: "Digitalisation really makes it hard to determine the location of companies' activities and globalisation has made it easy to establish operations in low tax jurisdictions.

She says Ireland is a good example of this.

"The "double Irish" as it is known as which has allowed Google and Facebook to route royalties through their Irish subsidiaries to reduce their tax bill has raised quite a few eyebrows."

Unsurprisingly, she says, Ireland has rejected a European wide digital services tax.

Today Programme
BBC Radio 4

Image source, AFP

If you bought Ocado shares two years ago when they were less than £3, you're laughing now they're up at £12.

Behind this is the metamorphosis from grocery distributor to software company. These days they're filing patents in areas from vertical farming to carparking and have signed a new deal with Marks and Spencer.

Chief executive Tim Steiner told BBC Radio 4's Today Programme they ditched their longstanding relationship with Waitrose because they wanted to be treated as an equal.

"We had a useful relationship with Waitrose for 19 years. But they treated us like the junior in the relationship and they didn't want our feedback. They didn't want our customers' feedback. They didn’t want to innovate or develop products specifically for our customers' tastes.

"The new relationship with M&S is different because they're a shareholder, because its their only foray online with food. They’re completely committed to it in a way that Waitrose weren’t"

Today Programme
BBC Radio 4

Image source, Getty Images

Like the tit-for-tat trade row with China, the US looks likely to use the same strategy against France which is set to implement a Digital Services Tax on US tech giant Google.

Claire Shaw, senior portfolio manager at Syz Asset Management, tells the BBC's Today programme: "The Trump administration response is that they would consider raising tariffs on French wine or cars if no agreement can be reached."