LIVE: FTSE and Wall Street fall as US jobless claims dip and second quarter growth revised higher

US stocks fell on Thursday as Wall Street digested an unexpected decline in jobless claims, and gross domestic product (GDP) data.

The US economy grew more rapidly than expected in the second quarter of the year, expanding at an annual rate of 3.8%, the Bureau of Economic Analysis (BEA) said.

This was up from a previous estimate of 3.3% and equates to quarterly growth of around 0.95%.

It follows a contraction of 0.6% (annualised) in January to March.

The BEA said: "The increase in real GDP in the second quarter primarily reflected a decrease in imports, which are a subtraction in the calculation of GDP, and an increase in consumer spending. These movements were partly offset by decreases in investment and exports."

Jobless claims in the US unexpectedly fell to 218,000 in the week to 20 September, down from 232,000 the previous week, according to data from the Department of Labour released Thursday morning.

The 218,000 initial unemployment insurance claims were also lower than the 221,000 claims in the same week last year.

Economists tracked by Bloomberg had expected jobless claims to rise to 233,000 last week amid widening cracks in the labour market.

Meanwhile, the FTSE 100 (^FTSE) and European stocks were lower on Thursday as UK automotive production fell to a near 70-year low last month.

The Society of Motor Manufacturers and Traders (SMMT) reported this morning that combined UK vehicle production dropped 18.2% in August to 38,693 units, the weakest performance since 1956.

SMMT said the figures showed “the challenging environment facing UK automotive manufacturers, with soft conditions in the sector’s largest market, the EU, significant cost pressures, model transitions and slow economic growth”.

London’s benchmark index (^FTSE) was 0.3% lower in afternoon trade after mining-led rally the previous session Germany's DAX (^GDAXI) dipped 1.1% and the CAC (^FCHI) in Paris also headed 0.8% into the red The pan-European STOXX 600 (^STOXX) was down 0.7% The Dow Jones Industrial Average (^DJI) dipped about 0.3%, and the S&P 500 (^GSPC) lost 0.6%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) fell 0.9%. The declines come after the major gauges closed lower for a second day Wednesday. The pound was 0.4% down against the US dollar (GBPUSD=X) at 1.3400

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38 mins ago

LaToya Harding

UK bond yields on the rise

UK government borrowing costs climbed higher on Thursday, with the yield, or interest rate, on 10-year UK gilts up 5 basis points at 4.726%, their highest level since early September.

Meanwhile, 30-year gilt yields are up 5.5bps at 5.54%, towards the 27-year high (5.75%) hit a few weeks ago.

This suggests investors are losing faith in a government’s long-term financial credibility. 1 hr ago

LaToya Harding

US jobless claims unexpectedly dip

Jobless claims in the US unexpectedly fell to 218,000 in the week to 20 September, down from 232,000 the previous week, according to data from the Department of Labour released Thursday morning.

The 218,000 initial unemployment insurance claims were also lower than the 221,000 claims in the same week last year.

Economists tracked by Bloomberg had expected jobless claims to rise to 233,000 last week amid widening cracks in the labour market. Today at 1:21 PM UTC

LaToya Harding

US Q2 growth revised higher

The US economy grew more rapidly than expected in the second quarter of the year, expanding at an annual rate of 3.8%, the Bureau of Economic Analysis said.

This was up from a previous estimate of 3.3% and equates to quarterly growth of around 0.95%.

It follows a contraction of 0.6% (annualised) in January to March.

The BEA said on Thursday: Today at 1:00 PM UTC

LaToya Harding

Oil prices fall back after surging on US inventories drop

Oil prices retreated on Thursday morning, after surging in the previous session, following a surprise drop in US crude inventories.

Brent crude (BZ=F) futures fell 0.8% to trade at $68.77 per barrel at the time of writing, while West Texas Intermediate futures (CL=F) declined by the same margin to $64.46 a barrel.

The Energy Information Administration said on Wednesday that US crude inventories fell by 607,000 barrels last week, compared to the 235,000-barrel build analysts forecast in a Reuters poll.

Oil prices jumped 3% to a seven-week high on Wednesday, following the release of this data.

Steve Clayton, head of equity funds at Hargreaves Lansdown, said that the latest rise in Brent futures will "make for a two-month window during which oil (BZ=F, CL=F) has traded between $65 and $70, just below the twelve-month average rate of $71".

"Bulls will point toward geopolitical tensions, from the Middle East and Asia to Ukraine," he said. "Bears however point to the ample availability of supply in the market. With both drivers set to remain in place, that sideways window could be about to get extended further."

Read the full article here Today at 12:44 PM UTC

LaToya Harding

Customers' debt to energy suppliers soars to £4.4bn

The amount of money owed to energy suppliers by customers has increased to a new record high of £4.4bn, figures from the regulator show.

The BBC has the details...

Ofgem said that the level of energy debt and arrears in England, Wales and Scotland had risen by more than £750m compared with a year earlier.

The data, which covers the period from April to June, shows that more than one million households have no arrangement to repay their debt, also a record high.

The regulator is considering ways to tackle growing household debt. Earlier in the week it said plans included suppliers "debt matching" repayments by customers to clear the amount owed more quickly.

The level of debt to energy suppliers has increased sharply since the price of domestic gas and electricity pushed many households into financial difficulty in recent years.

The cost of essentials, including domestic energy, created the post-COVID crisis that led to millions of people receiving cost of living payments from the last government.

Energy prices are lower than their peak but remain relatively high. Some customers are struggling to pay their bills now, even before they try to repay unpaid bills from previous months and years.

Average debt for people who do not have a repayment plan with their provider stands at £1,716 per household.

Ofgem is studying how any debt that has little chance of being repaid should be covered.

On Wednesday, it reiterated proposals to establish a fund called the Debt Relief Support Scheme, which suppliers would use to either write off debt that is so significant it will never be paid back or help pay off what is owed by "debt matching" customer payments. Any such scheme would likely have to be funded through everyone's bills.

As part of the plans, the regulator said it wanted to make it easier for consumers to get help from charities and debt support agencies and ensure a consistent approach was taken to the issue, to help limit the risk of unsustainable levels of debt building up in the future. Today at 12:22 PM UTC

LaToya Harding

Intel continues to rise after approaching Apple

Shares in Intel (INTC) popped 6% on Wednesday and were up a further 3% in pre-market trading on Thursday, following a report that the struggling chipmaker had approached Apple (AAPL) about securing investment.

Bloomberg reported on Wednesday that Intel and iPhone-maker Apple had discussed how to work more closely together, citing people familiar with the matter, but the talks were early-stage and may not result in an agreement.

The report comes after fellow chipmaker Nvidia (NVDA) announced a $5bn (£3.71bn) investment in Intel last week, saying that the two companies would be working together to develop AI infrastructure and personal computing products.

Japanese investment holding company SoftBank Group (9984.T) also announced a $2bn investment in Intel's common stock last month.

Just days after the SoftBank announcement, president Donald Trump said that the US government had taken a 10% stake in Intel. Today at 11:59 AM UTC

LaToya Harding

Rise in business overdraft applications

The number of sole traders, solopreneurs and micro business owners applying for overdrafts has shot up, new data has shown.

Experts said it “could be a significant red flag” and that “it is a recipe for disaster with more tax rises forecast in the upcoming budget”.

Jim Tannahill, managing director at London-based Suttons and Robertsons, said: “we’re seeing a marked increase in sole traders and solopreneurs using luxury jewellery, watches and gold to unlock short-term cashflow”.

Among businesses with no employees, such as sole traders, freelancers and micro businesses, there was a significant increase in applications for a bank overdraft facility in 2024 compared to 2023 (45% in 2024 and 30% in 2023), according to official survey data published this morning.

The Department for Business & Trade survey also found that around 12% of businesses with no employees sought external finance in 2024, an increase on 2023 (8%) and 2022 (7%). This was the highest level since the survey began in 2015.

Also in 2024, the survey found that 27% of businesses with no employees reported growth in annual sales (turnover) over the preceding 12 months, a decrease compared with 2023 (32%) and 2022 (35%). A higher proportion of businesses with no employees (32%) reported a fall in turnover during this period (31% in 2023).

Colin Crooks MBE, CEO at London-based business consultancy, Intentionality, said “the rise in business overdraft applications could be a significant red flag”.

He added: Today at 11:37 AM UTC

LaToya Harding

Nigel Farage challenges Bank of England to end bond sales

Reform leader Nigel Farage has called for the Bank of England to halt bond sales and cut the interest it pays to UK banks, after a meeting with its governor Andrew Bailey.

Farage met Bailey on Thursday morning with Reform MP Richard Tice, after the governor reportedly requested their first formal meeting.

In a statement released after the meeting, Tice said:

It comes as the Bank currently pays interest on the vast bank reserves created during the emergency policy of quantitative easing (QE). It is also in the process of running down the stock of government bonds it bought through QE, in a programme known as quantitative tightening (QT). Today at 11:15 AM UTC

LaToya Harding

Swiss central bank holds interest rates

The Swiss National Bank kept interest rates unchanged today as “inflationary pressure is virtually unchanged compared to the previous quarter." It comes as inflation rose from -0.1% in May to 0.2% in August.

Switzerland currently has the lowest interest rates among major central banks.

Swiss National Bank governing board member Petra Tschudin said that "the outlook for Switzerland remains uncertain," and that "the main risks are US trade policy and global economic developments.” Today at 10:53 AM UTC

LaToya Harding

Tesla's EU sales continue to slip

Electric vehicle maker Tesla (TSLA) saw another month of declining sales in Europe in August, while Chinese rival BYD (002594.SZ) continued to gain market share in the region, according to data released by the European Automobile Manufacturers' Association (ACEA) on Thursday.

The industry association said that new registrations of Tesla vehicles across Europe fell 22.5% in August to 14,831 units, with its market share shrinking to 1.9% compared to 2.5% at this time last year. Since the start of the year, the ACEA data showed Tesla sales had fallen 32.6%.

Meanwhile, new registrations of BYD cars in Europe surged nearly 216% last month to 11,455 units, with its market share rising to 1.4% from 0.5% a year ago.

Overall sales of battery electric cars across Europe rose nearly 27% in August, while registrations for plug-in hybrids and hybrid electric vehicles rose 56% and nearly 12%, respectively.

Tesla shares were little changed in pre-market trading on Thursday morning, while BYD closed the trading session in Shenzhen up 1.7%. Today at 10:35 AM UTC

LaToya Harding

UK consumer confidence remains low, says DFS

DFS has warned that UK consumer confidence remains low, despite a jump in orders, revenues and profits in the last year.

The sofa and furniture retailer posted a 10.2% jump in like-for-like orders in the last year to the end of June, and a pre-tax profit of £32.9m, up from a £1.7m loss in the previous year.

Tim Stacey, chief executive, said:

Chris Beauchamp, IG's UK chief market analyst, said: "DFS seems to be settling down to a period of better performance, with a three-piece suite of improvements that bode well for the future."

"The mention of a dividend will no doubt perk up investor interest, though it was couched in cautious language. But overall this is a very solid rebound that augurs well for the future." Today at 10:14 AM UTC

LaToya Harding

Halifax cuts mortgage rates as other lenders hold or raise deals

Halifax cut some of its mortgage rates this week, as other major lenders held or raised their rates on borrowing.

The average rate for a two-year fixed mortgage rose to 4.81% this week, while the average five-year fixed deal came in at 5.03%, according to data from Uswitch. Those are the average rates on 75% loan-to-value (LTV) mortgage, meaning buyers need to have at least 25% for a deposit.

The mixture of moves on mortgage deals comes after the Bank of England (BoE) opted to keep interest rates on hold at 4% last week, dealing a blow to mortgage borrowers across the UK.

Santander (BNC.L) withdrew its two-year fixed-rate 60% LTV mortgage product for first-time buyers on borrowing of less than £250,000 on 19 September. A spokesperson for the bank that the "change was part of reprice following the changes to swaps after the Bank of England held interest rates". However, they added that Santander continued to offer products with LTVs of 85% and above for first-time buyers.

Following the BoE's decision last week, Alice Haine, personal finance analyst at online investment platform at Bestinvest by Evelyn Partners, said: "Thanks to five interest rate cuts since last summer, and a more relaxed lending environment, mortgage affordability has improved for some."

However, she said that no movement on the headline interest rate this time round, "coupled with uncertainty around when the next reduction may be, is likely to be unsettling for mortgaged homeowners and prospective buyers".

She said that the cohort of borrowers most likely to be dismayed by the latest BoE decision are "homeowners with large mortgages still cruising on ultra-low fixed rates. Many five-year deals, secured before interest rates began their rapid ascent in late 2021, are now expiring so household budgets may need an overhaul to accommodate the upcoming jump in repayments." Today at 9:49 AM UTC

LaToya Harding

Petershill Partners plans to quit London stock market

Petershill Partners, the £2.5bn investment group backed by Goldman Sachs (GS), is planning to quit the London Stock Exchange.

Despite its “strong operating and financial performance”, the company's share price and valuation “has, in the view of the board, not appropriately reflected the quality and underlying value of the company’s assets, its strong financial performance and attractive growth prospects," it said.

Petershill’s board has concluded that the firm should “proceed with a delisting and that free float shareholders should be provided with the means to realise their investment for cash at a valuation that appropriately reflects the company’s attributes.”

It is set to return $921m in cash back to its investors. Today at 9:26 AM UTC

LaToya Harding

Bitcoin price falls ahead of key US inflation reading

Bitcoin (BTC-USD) retreated on Thursday after a short-lived rebound, as investors await key US economic data that could shape the Federal Reserve’s path on interest rates.

The world’s largest cryptocurrency by market capitalisation was down 0.7% as of the time of writing, now changing hands for $111,786 (£82,015), having slipped back below the $112,000 threshold in early Asia trading hours. The token had briefly recovered on Wednesday, nearing $114,000, but momentum quickly faded.

The drop comes after a wave of forced sell-offs earlier this week, when traders who had borrowed heavily to bet on bitcoin’s rise were caught out, triggering losses of around $1.5bn across crypto exchanges

Thin market liquidity and heavy speculative bets amplified the sell-off, sending bitcoin tumbling from above $115,000 to the low $112,000 area within 24 hours at the beginning of the week.

Caution has dominated risk assets after Fed Chair Jerome Powell warned there was “no risk-free path” in monetary policy, stressing the dangers of both easing too quickly and holding back for too long. Other Fed officials echoed the need for a data-dependent approach, curbing investor appetite for risk.

According to current market pricing via the CME FedWatch tool, traders expect the Fed to ease rates from the current 4.5%–4.75% range toward roughly 3.5% to 4.0% by the end of 2025.

Read more here Today at 9:02 AM UTC

LaToya Harding

Ticketmaster ordered to give better price information

Ticketmaster will now give music fans more advance information about ticket prices, after complaints about Oasis's reunion tour last year.

The Competition and Markets Authority (CMA) said Ticketmaster has agreed to tell fans 24 hours in advance if a tiered pricing system is being used, as it was for Oasis standing tickets. They will also give more information about ticket prices during online queues.

It comes after the CMA said Ticketmaster "may have misled Oasis fans" with unclear pricing last year.

The BBC has the details...

Platinum tickets sold for almost two and a half times the standard the price, but Ticketmaster did not explain to consumers that they came without extra benefits.

Fans expressed outrage over allegations that Ticketmaster used "dynamic pricing" - where ticket prices rise and fall according to demand - prompting the CMA to launch an investigation into the sale.

However the CMA said it had "not found evidence" that algorithmic pricing had been used to adjust the price of tickets in real time.

As a result of the investigation, Ticketmaster will have to provide more information about prices during online queues, helping fans anticipate how much they might have to pay.

It will also have to use accurate labelling, to ensure they "do not give the impression that one ticket is better than another when that is not the case," the CMA said.

The company will also have to regularly report to the CMA over the next two years to ensure it is adhering to the new compliance. Today at 8:41 AM UTC

LaToya Harding

UK vehicle production falls to lowest since 1956

UK automotive production fell to a near 70-year low last month. The Society of Motor Manufacturers and Traders (SMMT) reported this morning that combined UK vehicle production dropped 18.2% in August to 38,693 units, the weakest performance since 1956.

SMMT said the figures showed “the challenging environment facing UK automotive manufacturers, with soft conditions in the sector’s largest market, the EU, significant cost pressures, model transitions and slow economic growth.”

Emily Sawicz, associate director and industrials senior analyst at consultancy RSM UK, said carmakers are facing “significant cost pressures, sluggish sales and economic stagnation”.

She added: Today at 8:17 AM UTC

LaToya Harding

Co-op posts £80m earnings hit from cyber attack

The Co-operative Group has revealed it slumped to a half-year loss after taking an earnings hit of around £80m from a “malicious” cyber attack in April.

The retailer said it tumbled to a £75m underlying pre-tax loss for the six months to July 5, down from profits of £3m a year ago as the hack took its toll.

It said the attack impacted sales by about £206m , which left it with an £80m blow to earnings, although this also included £20m of non-underlying one-off costs.

Shoppers were faced with empty shelves and issues with payments during the fallout from the cyber incident in April, as a raft of retailers were hit.

Co-op said it fell to a £32m underlying operating loss, from earnings of £47m a year earlier.

The group added it expects a further, but reduced, impact in the second half of its financial year.

Debbie White, chairwoman of the Co-op, said: Today at 7:58 AM UTC

LaToya Harding

Asia and US overnight

Stocks in Asia were mixed overnight, with the Nikkei (^N225) rising 0.3% on the day in Japan, while the Hang Seng (^HSI) fell 0.3% in Hong Kong.

The Shanghai Composite (000001.SS) was treading water by the end of the session and in South Korea, the Kospi (^KS11) was also flat on the day.

Across the pond on Wall Street, the S&P 500 (^GSPC) dipped 0.3%, and the tech-heavy Nasdaq (^IXIC) was 0.3% lower, both falling for a second day running. The Dow Jones (^DJI) lost 0.4%.

It came as the US Department and Commerce published a document lowering the tariffs on auto imports from the EU to 15% retroactively as of August 1, as well as making effective exemptions on products such as aircraft and generic drugs. This cemented the terms of EU-US framework trade deal whose outline was agreed in late July.

Meanwhile, United States Secretary of the Treasury Scott Bessent called for faster rate cuts last night, stating in a Fox Business interview that rates “need to come down”. He said he was “a bit surprised that the chair hasn’t signalled that we have a destination before the end of the year of at least 100 to 150 basis points (lower).”

It is a big contrast with the median dot from last week’s dot plot, which only pencilled in another 50bps of cuts by year-end.

Bessent also offered a bit of commentary on the search for a new Fed Chair, saying that he was interviewing 11 candidates, and that there would be interviews happening next week.

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LaToya Harding

Coming up

Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets and happening across the global economy.

To the day ahead we have data releases including US August durable goods orders, the advance goods trade balance, existing home sales, September’s Kansas City Fed manufacturing activity, and the weekly initial jobless claims. In Europe, we’ll have the Eurozone’s August M3 money supply.

From central banks, we’ll hear from the Fed’s Goolsbee, Williams, Bowman, Barr, Logan and Daly, and also get the ECB’s economic bulletin.

Here's a snapshot of what's on the agenda:

7am: Trading updates: Co-op, IG Group, HSS Hire, DFS Furniture, STV, Halma, Petershill Partners 8.30am: Switzerland interest rate decision 1.30pm: US weekly jobless figures 1.30pm: US trade data for August 3pm: US existing home sales for August

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