Net zero ban on petrol cars is fuelling China price war, says BMW chief

BMW chief executive Oliver Zipse unveiled the Vision Neue Klasse, the first prototype of the German manufacturer's future electric-vehicle line-up

BMW chief government Oliver Zipse was talking as he unveiled the Imaginative and prescient Neue Klasse, the primary prototype of the German producer’s future electric-vehicle line-up – Enes Kucevic Pictures

European automobile producers are being compelled right into a worth struggle with Chinese language firms because the EU pushes forward with plans to ban combustion engines, the boss of BMW has warned.

BMW chief government Oliver Zipse has stated he thought-about China getting into the European market as an “imminent threat” after the event of its electrical automobile market during the last 15 years enveloped a lot of the world’s battery provide chains.

He stated that firms like BMW will possible be shielded from competitors from China’s producers, which can goal consumers of cheaper automobiles.

Talking forward of the annual IAA Mobility convention in Munich, Mr Zipse stated: “The bottom automobile market section will both vanish or won’t be performed by European producers.”

It comes after BYD, China’s largest electrical carmaker, declared struggle on Western rivals by calling on the nation’s auto producers to unite and “demolish” their competitors.

In February, the European Parliament voted to approve a brand new regulation banning the sale of petrol and diesel vehicles from 2035. In Britain, the Authorities plans to ban the sale of recent vehicles powered solely by petrol and diesel from 2030.

Learn the newest updates beneath.

10:41 AM BST

Oil costs maintain close to 10-month highs after Saudi provide cuts

Oil costs are buying and selling close to 10-month highs as new information signifies Saudi Arabian provide cuts offset elevated output from the likes of Iran.

The dominion’s output fell by 170,000 barrels a day, precisely countering a mixed improve from Iran and Nigeria, based on a Bloomberg survey.

The Opec cartel collectively pumped 27.8m barrels a day in August, or 40,000 greater than the earlier month.

The Saudis have persevered with their unilateral reducing of provides by a million barrels a day, which was launched in July to shore up world oil costs in opposition to a darkening financial outlook in China, the world’s largest gasoline client.

The retreat in Saudi manufacturing coincides with a revival in its political adversary, Iran, which restored output to a five-year excessive of simply over 3 million barrels a day final month. The Islamic Republic is exempt from Opec quotas as a result of its manufacturing has been hit by US sanctions.

Brent crude, the worldwide benchmark, was final down 0.2pc to greater than $88 a barrel, having gained 7.5pc in lower than a fortnight.

US-produced West Texas Intermediate has slipped 0.2pc to remain above $85.

10:14 AM BST

Pound beneficial properties as Hunt says UK on observe to halve inflation

The pound is the strongest performing main forex in opposition to the greenback after the Chancellor stated Britain is on observe to halve inflation this yr.

Sterling has gained 0.3pc in opposition to the buck to be value $1.26 after official information on Friday confirmed the economic system recovered quicker from the pandemic than beforehand thought.

It was the strongest performer of any of the G10 group of main currencies

Jeremy Hunt informed Sky’s Trevor Phillips on Sunday: “As we transfer into autumn, I do know household budgets are nonetheless stretched, however inflation is coming down and now could be the time to see the job by means of.”

The pound has additionally risen 0.1pc in opposition to the euro, which is value 85p.

09:59 AM BST

Two in 5 trains delayed in first half of the yr

Greater than two out of 5 practice companies in Britain have been delayed through the first half of the yr, new figures present.

Some 41pc of companies have been not less than one minute late, based on BBC evaluation of trade information collated by web site On Time Trains.

An additional 3pc have been cancelled, whereas 56pc have been on time. Stations in Wales had the best cancellations charge between January and July, at 7pc.

Throughout English areas, the best determine was within the North East at 6pc.

Of Britain’s 100 busiest stations, Huddersfield had the best charge of cancellations (13pc) with greater than 5,500 trains on account of serve the station axed.

This was adopted by Manchester Victoria (10pc), whereas York, Newcastle and Manchester Oxford Highway all had the joint third highest determine (9pc).

All these stations are within the TransPennine Specific (TPE) space, which was badly affected by drivers’ union Aslef banning time beyond regulation.

Paul Tuohy, of stress group Marketing campaign for Higher Transport, stated: “We wish individuals to journey by practice so excessive charges of cancellations are unacceptable.”

Two in five trains were delayed in the first half of the year, according to BBC analysis

Two in 5 trains have been delayed within the first half of the yr, based on BBC evaluation – ANDY RAIN/EPA-EFE/Shutterstock

09:45 AM BST

House REIT to revalue property months after suspending shares

Homeless housing supplier House REIT has appointed world property companies agency Jones Lang LaSalle (JLL) to worth its whole portfolio months after it was rocked by a short-seller’s report.

The corporate, which suspended its shares in January after lacking a deadline to publish its annual monetary report, stated the earliest it was anticipating to publish excellent accounts was not till late 2023.

House REIT was rocked by a report in November final yr from short-seller Viceroy Analysis which raised a number of issues, together with the valuation of the corporate’s property.

Shares in House REIT had slumped greater than 30pc instantly after the report earlier than hitting a document low in December when the corporate stated its auditor was reviewing Viceroy’s allegations.

House REIT stated JLL would undertake the valuations based mostly on market worth on the idea of vacant possession as of August final yr, February this yr and August this yr.

09:20 AM BST

German exports hit as UK commerce slumps

German exports fell once more in July after a slight rebound in June, official information confirmed, as Europe’s largest economic system suffered a slowdown in its commerce with Britain.

Exports totalled €130.4bn (£111.5bn), a fall of 0.9pc in contrast with the earlier month, based on adjusted figures from federal statistics company Destatis.

German exports to the UK dropped by 3.5pc to €6.3bn.

Imports in the meantime have been up 1.4 % in contrast with June, totalling €114.5bn. The nation’s adjusted commerce surplus – the distinction between exports and imports – fell barely to €15.9bn.

ING economist Carsten Brzeski stated: “Commerce is not the sturdy resilient progress driver of the German economic system that it was once, however slightly a drag.”

German exports have been lagging for a number of months on account of provide chain difficulties, a fragile world economic system and stubbornly excessive inflation.

German inflation dipped barely to six.1 % in August however remained at a degree 3 times increased than the European Central Financial institution’s goal charge.

09:07 AM BST

Recession to plunge 7,000 companies into insolvency per quarter, assume tank warns

Greater than 7,000 companies might grow to be bancrupt each three months subsequent yr, a assume tank has warned, because it forecast Britain will tumble into recession.

Corporations will go underneath as rates of interest proceed to rise, pushing up debt repayments to unsustainable ranges for some companies, based on the CEBR.

It warned Britain might be in recession after contractions within the closing three months of this yr and first quarter of 2024.

Nevertheless, it stated the Financial institution of England could begin to reduce rates of interest subsequent yr in an try to “restimulate demand” within the economic system, though charges will “nonetheless stand far above current norms for a while”.

There have been over 6,700 enterprise insolvencies in Britain within the three months to June, which was greater than double what was seen in a typical quarter through the pandemic.

It is usually 50pc increased than the identical quarter in 2019, with the variety of quarterly insolvencies averaging 4,100 between 2015 and 2019.

08:49 AM BST

Swiss economic system stalls amid German struggles

Switzerland’s economic system stalled within the second quarter as its manufacturing sector fell sufferer to waning world demand and the ripple impact of weaker progress in Germany.

Gross home product, adjusted for big sports activities occasions, was flat within the three months by means of June after a 0.9pc bounce initially of the yr. Economists anticipated a rise of 0.1pc in a Bloomberg survey.

Switzerland’s State Secretariat for Financial Affairs stated:

The difficult worldwide surroundings is weighing on the cyclically delicate industrial sectors resembling mechanical engineering and steel development.

This was additionally mirrored in a broad-based decline in items exports.

The numbers point out the Swiss economic system is struggling knock on results from the woes of its largest buying and selling associate: Germany.

A survey of buying managers in Switzerland indicated there was contraction in manufacturing since January.

08:26 AM BST

Miners raise FTSE 100 amid China’s bid to spice up economic system

The FTSE 100 opened increased after China rolled out new measures to prop up its stuttering economic system, giving a lift to mining shares.

The exporter-heavy index has gained 0.5pc, whereas the mid-cap FTSE 250 index has risen 0.3pc.

Industrial steel miners rose as a lot as 1.8pc, main sectoral beneficial properties.

China stepped up measures on Friday to spice up the nation’s faltering economic system, with high banks paving the way in which for additional cuts in lending charges and studies that Beijing plans additional motion together with enjoyable home-purchase restrictions.

London Inventory Trade Group rose 0.1pc amid studies that it plans for a blockchain-based digital property enterprise.

CMC Markets stated Albert Soleiman had been appointed as its chief monetary officer, initially sending its shares up 2.8pc earlier than falling again to be flat.

Wooden Group stated it had signed a brand new settlement valued at round £262m for North Sea operations with Harbour Power. The businesses rose 1.2pc and 1.1pc, respectively.

08:18 AM BST

Ergomed surges after non-public fairness takeover provide

Pharmaceutical companies supplier Ergomed has agreed to a non-public fairness takeover that values the enterprise at £703.1m.

Shareholders within the Guildford-based firm will obtain 1,350p per share underneath the money acquisition by Permira, which is a 28.3pc premium on Friday’s closing worth.

John Dawson, senior unbiased director of Ergomed, stated the provide “pretty displays the distinctive high quality of the Ergomed enterprise, its individuals and its future prospects”.

Its shares have surged by 26.8pc in early buying and selling.

08:06 AM BST

FTSE 100 opens increased

UK markets opened increased amid rising bets that the Federal Reserve was completed elevating US rates of interest, and amid hopes the regular drip feed of stimulus from Beijing will stabilise the Chinese language economic system.

The FTSE 100 was 0.6pc increased at 7,509.75 whereas the midcap FTSE 250 climbed 0.3pc to 18,599.24.

07:54 AM BST

Fuel costs climb amid shrinking Norwegian output

European pure fuel costs has prolonged final week’s beneficial properties after outages in Norway diminished provides to Britain and the continent.

Benchmark Dutch futures jumped as a lot as 5.3pc in early buying and selling after flows from Norway, Europe’s high producer, dropped to the bottom since not less than 2015 over the weekend.

Output stays lower than half the nation’s whole capability.

Whereas European demand stays muted and winter storage websites are practically full, the dip in provides provides nervousness to a market already rattled by dangers of strikes in Australia.

Three fields in Norway have halted provides since Saturday for works not beforehand notified to merchants.

It comes because the market was already contending with a shutdown of the enormous Troll discipline in addition to different amenities.

Dutch front-month futures, Europe’s fuel benchmark, traded 3pc increased at greater than €36 a megawatt-hour. The UK equal contract added 4.5pc.

07:47 AM BST

Air site visitors management chaos ‘nonetheless not defined,’ complains Ryanair

Price range airline Ryanair stated greater than 350 flights have been cancelled on August 28 and 29 because of the air site visitors management (ATC) failure, impacting 63,000 of its passengers.

The Irish service stated the ATC failure – which triggered widespread journey disruption final week and left passengers stranded – “has nonetheless not been defined”.

Ryanair carried 18.9m friends in whole final month, up 11pc on a yr earlier, it added.

In the meantime, Hungarian low-cost airline Wizz Air stated it carried 6.1m passengers in August, up 23.9pc on the identical months final yr.



07:42 AM BST

Wooden wins £262m contract with largest North Sea oil producer

Consultancy and engineering agency Wooden has received a $330m (£262m) contract with Harbour Power, the largest producer of oil and fuel within the UK’s North Sea, the businesses introduced.

Wooden stated that underneath the brand new settlement it could present a collection of companies to Harbour, together with serving to to function and keep its offshore websites and aiding the corporate with procurement and development.

The preliminary five-year contract has the choice to be prolonged, annually, for one more 5 years. It’ll “help the employment of a whole bunch of individuals,” Wooden stated.

Wooden government president of operations Steve Nicol stated: “We’ve labored on North Sea property for greater than 50 years and excel in designing and managing the complexity of power infrastructure whereas on the identical time looking for to minimise related emissions.”

Wood has won a contract with North Sea oil producer Harbour Energy

Wooden has received a £262m contract with North Sea oil producer Harbour Power – Igors Aleksejevs/iStockphoto

07:37 AM BST

Good morning

Thanks for becoming a member of me. The boss of BMW has warned that European automobile producers threat being plunged right into a battle with China that they can’t win because the EU pushes by means of with its ban on petrol vehicles.

In February, the European Parliament voted to approve a brand new regulation banning the sale of petrol and diesel vehicles from 2035.

5 issues to begin your day

1) Scramble to safe extra energy for Rishi Sunak’s supercomputer lab | Overloaded grid dangers stalling PM’s bid to determine Britain as a world AI hub

2) ‘Value of proudly owning disaster’ as 50,000 fall into unfavourable fairness | Affected householders face problem promoting or remortgaging as home costs plunge

3) Britain dropping £750m from Chinese language holidaymakers due to vacationer tax | Buyers are travelling to France, Italy and Spain as a substitute, report finds

4) Gatwick second runway received’t conflict with internet zero, says airport chief | Stewart Wingate insists enlargement will enhance economic system, as Rishi Sunak prepares to reject local weather recommendation

5) The tycoons constructing an empire out of Britain’s bust beer manufacturers | After first rescuing Black Sheep, the financiers have swooped on extra struggling craft brewers

What occurred in a single day

Shares have been increased in Asia after Wall Road was boosted by a report that signalled the US jobs market, whereas nonetheless wholesome, is exhibiting some indicators of cooling.

That supported traders’ hopes that the Federal Reserve could quickly ease up on its marketing campaign to sluggish the U.S. economic system by elevating rates of interest.

“It seems that world markets are primed to be smitten with the thought of a ‘Nirvana’ Fed tightening final result, entailing the ‘immaculate dis-inflation’ that doesn’t trigger employment ache,” Tan Boon Heng of Mizuho Financial institution stated in a commentary.

Recent stimulus from China’s monetary regulators for the beleaguered property sector additionally supported shopping for. They’ve reduce down-payment necessities for first and second-time dwelling consumers and lowered charges on current mortgages, famous Yeap Jun Rong of IG.

Hong Kong’s Grasp Seng index jumped 2.4pc to 18,828.91 whereas the Shanghai Composite index added 1pc to three,166.62.

Tokyo shares ended increased, with the benchmark Nikkei 225 index including 0.7pc to shut at 32,939.18, whereas the broader Topix index closed up 1pc to a recent 33-year excessive of two,373.73.

In Seoul, the Kospi edged 0.2pc increased, to 2,569.52. Sydney’s S&P/ASX 200 added 0.5pc to 7,312.60.

Shares additionally rose in Taiwan and Southeast Asia.

US markets might be closed at the moment for the Labor Day vacation.

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