Elon Musk suggests all X users could be asked to pay to use platform
Elon Musk has suggested that all users of social media platform X could be required to pay to use the service in an effort to stop bots on the site.
Speaking during a livestreamed conversation on artificial intelligence (AI) with Israeli Prime Minister Benjamin Netanyahu on Monday, the billionaire said the company is “moving towards a small monthly payment for use of the X system”.
Mr Musk said it is the “only way” to combat “vast armies of bots” by pricing out those who want to create large networks of accounts to spread content on the platform.
City Comment: The Bank should pause on rates
Inflation figures out tomorrow might be a bit of a shocker, on the face of it.
Assuming the City economists have it right (you can make your own joke), the August inflation number will be back above seven per cent — 7.2%, perhaps.
That would be up from 6.8% in July and the first time inflation has risen since February.
That’s quite a dent in the narrative from Rishi Sunak that inflation is, if not licked, then firmly heading in the right direction.
It also presents a headache for the Bank of England, which on Thursday will decide whether to put interest rates up once more from 5.25% to 5.5% (I’m not psychic, but I bet you).
Lunchtime update
Mid-way through the day’s trading session in London, the FTSE 100 is broadly flat but brent crude is once again flirting with $95 a barrel.
Here’s a look at your key market data:
City watchdog claims data review shows no banks have closed accounts ‘primarily’ due to political views
City watchdog the FCA has claimed that no banks closed anyone’s accounts “primarily because of a customer’s political views” in the year to June 2023, according to a data-finding investigation launched after the controversy over closure of Nigel Farage’s account with Coutts.
The Financial Conduct Authority (FCA) launched a data exercise around question of politically influenced debanking, after the former UKIP leader lost his account with NatWest-owned Coutts.
A dossier released by Farage following a subject access data request showed that Coutts’ reputational risk committee had compiled information about his political positions before closing the account.
OECD: UK flatlining economy will grow slower and suffer higher inflation than eurozone
Britain’s flatlining economy will grow more slowly and suffer higher inflation than the Eurozone this year, leading economists warned on Tuesday.
The Organisation for Economic Co-operation and Development upgraded its GDP growth forecast for 2023 from zero in June to 0.3 per cent.
But this was still behind the 0.6 per cent predicted rise for the eurozone, where there were stark divisions with Germany’s economy set to shrink by 0.2 per cent, France to grow by one per cent, and Spain by 2.3 per cent.
Kingfisher shares hammered after B&Q owner warns on profits
Shares in the owner of B&Q and Screwfix slumped today after a profit warning followed a disappointing showing from its Polish and French businesses.
Kingfisher cut its full-year profit forecast to £590 million, down from £634 million. It reported a drop in first-half profit before tax of a third, to £317 million.
It came with what the FTSE 100 company called “weaker consumer sentiment” and a “challenging … macroeconomic backdrop” in Poland, where high inflation is high and interest rates have risen sharply.
Oil majors support FTSE 100, Hargreaves Lansdown surrenders early gains
Brent Crude’s ascent to over $95 a barrel today did little to ease City fears that global interest rates are staying high for longer.
Declining output by US shale producers triggered the latest hike in the oil benchmark, which has risen for three weeks in a row to a 10-month high.
The inflationary pressure is likely to mean less room for rate cuts by major central banks in the coming year, a point that may well be underlined by the US Federal Reserve after its policy meeting tomorrow.
The uncertainty led to a subdued session for London shares, although gains of 1% for oil giants BP and Shell helped the FTSE 100 index 17.55 points higher at 7.670.49.
Investment platform Hargreaves Lansdown was among other heavily traded stocks after its full-year underlying profit of £439 million came in 5% ahead of City forecasts.
New boss Dan Olley described the performance as “robust” amid the net addition of 67,000 clients and 26% rise in revenues to £735.1 million. Shares initially bounced 5% but gave up the gains to settle 4p lower at 761p.
The FTSE 250 index recovered from yesterday’s slump by adding 80.74 points to 18,530.01, with technology and science recruitment firm SThree among the best performers after a reassuring trading update. Shares rose 16.5p to 375.5p.
On AIM, Quiz lost a third of its value as the fashion retailer warned that sales will be up to 7% lower than current market expectations. The stock fell 3.3p to 5.5p.
Food hall operator Market Halls eyes expansion as sales more than double
London food hall operator Market Halls saw sales more than double to £22 million, as it plans to expand outside of London.
The business, which operates food halls at Victoria, Canary Wharf and Oxford Street, served more than three million customers in the year to 31 July, thanks to a return of both office-workers and tourists.
Since the start of its new financial year, the business has seen consecutive record trading weeks. At Victoria, the only venue that was open before 2020, sales are ahead of pre-pandemic levels.
CEO Andy Lewis-Pratt said: “To have seen the popularity of our venues surge despite the tough economic environment is testament to the strength of the Market Halls proposition.”
With backing from private equity firm Gees Court Partners, the business aims to open two-to-three new sites a year, targeting major cities outside of London. It aims to both develop new sites and acquire existing food halls.
Package holidays giant Tui said it would have beaten its profit expectations over the summer if not for the wildfires in Rhodes.
The German firm received 5% more bookings this summer than last, and is at 96% of pre-pandemic levels, with UK bookings already ahead of 2019.
But the wildfires in Rhodes, a popular destination for Tui holidays, hit sales. Even with this impact, Tui expects to hit its targets for the year ending 30 September with profits “significantly” ahead of last year.
CEO Sebastian Emel said: “had it not been for the various events during the last few months which were outside of our control, not least the wildfires on Rhodes, we would have performed ahead of expectations”.
Other travel firms, including low-cost airlines Ryanair and Easyjet, have reported huge sales this year as holidays appear to be the one luxury unaffected by the cost-of-living crisis.
Tui shares climbed by 6.2% to 496p.
Holiday group Tui has revealed a 75 million euro (£63 million) hit from the recent travel chaos that crippled airports and led to flight cancellations and lengthy delays (Peter Byrne/PA)
/ PA ArchiveTrustpilot shares rise 11% on earnings forecast lift
Trustpilot shares rose as much as 11% after markets opened this morning as investors cheered the review site’s higher earnings guidance.
The firm upgraded its earnings guidance to beyond the top of the range of market expectations after it saw a surge in bookings.
Revenue increased by 18% to $84.6 million in the first six months of the year, while bookings rose 16% overall and as much as 21% in Europe.
Founder Peter Holten Mühlmann told the Standard: “We’ve had a range of initiatives to encourage more people to leave reviews.
“The more consumers use Trustpilot, the more businesses want to be on the platform. We’re seeing the effect of network effects come through in the market.”
