Monday 2 July 2018

Company news, markets and financial talking points, available from 8am Monday to Friday

'50,000 jobs' lost on high streets in 2018

Some 50,000 jobs have been lost on high streets this year, reports the Press Association. A combination of high business rates, inflation and falling consumer confidence has had a brutal effect. In response to the news, the Trades Union Congress said the government needed to "up its game". A report by PwC and the Local Data Company found 5,800 high street shops closed last year.

Debt levels soar as firms increase payouts

Debt levels have reached a record £391bn as companies ramp up their payouts, notes the Daily Telegraph. The oil sector has seen the fastest growth in net debt – up 459% since the financial crisis. BP and Royal Dutch Shell accounted for £1 in every £7 of all UK companies’ net debts last year. The consumer goods sector has remained the UK’s largest borrower.

Asda rations fizzy drinks as Co2 shortage continues

Asda is rationing the amount of some fizzy drinks that its online customers can buy as the CO2 crisis continues. The supermarket chain has restricted online shoppers to six bottles or multipacks of soft drinks – the brands affected include Pepsi, Coca-Cola, Diet Coke, Coke Zero, 7Up, Irn Bru and Fanta, as well as the grocer’s own-label drinks.

EU warns US over $300bn hit on car import tariffs

The European Union has warned of a $300bn hit to US over car import tariffs. In a written submission to the US Department of Commerce seen by the Financial Times, the European Commission has set out a detailed response to US President Donald Trump’s threat to slam punishing tariffs on imported vehicles. Trump said yesterday that the EU was "as bad" as China on trade.

Brexit transition could be increased for companies

The post-Brexit transition period could be extended to allow companies more time to prepare, reports The Guardian. Business secretary Greg Clark indicated that computer systems and other infrastructure needed to avoid border friction might not be ready by December 2020, when the transition period is currently due to end. "Any reasonable person would have to be guided by the facts and the evidence," he said.

Quote of the day… Uber's muscle means it cannot be banned

"In Uber’s early days, the company had little regard for local operating rules or customs. Instead, it muscled into markets, aiming to disrupt them to the extent that it became indispensable to users, and eventually part of the fabric of urban transport." James Titcomb of the Daily Telegraph says the ride-hailing app has become too popular to ban.

THE NUMBERS... AT 0645 GMT

FTSE 100: up +0.28 to 7,636.93
Dow Jones: up +0.23 to 24,271.41
Dax: up +1.06 to 12,306.00
Cac 40: up +0.91 to 5,323.53
Nikkei: down -1.90 to 21,881.64
Hang Seng: up +1.61 to 28,955.11
US dollar: buys €0.8587 and £0.7592
Sterling: buys $1.3167 and €1.1307
Oil: $78.19 down -1.04