11 October 2023 • 2:45pm
2:42PM
Wall Street moves higher as bond yields ease
US markets gained at the open as a rally in bonds continued to ease borrowing costs, making stocks more attractive.
The Dow Jones Industrial Average has gained 0.3pc to 33,842.97 while the S&P 500 has risen 0.4pc to 4,374.57.
The tech-heavy Nasdaq Composite has leapt 0.7pc higher to 13,653.11.
2:24PM
Birkenstock poised to make stock market debut
Birkenstock is making its debut on the New York Stock Exchange shortly.
The 249-year-old German maker of upmarket sandals set a price of $46 per share for its initial public offering of stock, valuing the company at $8.6bn (£7bn).
Birkenstock is due to start trading under the “BIRK” ticker symbol. It sold about 10.8 million shares in the offering, raising about $495m. Its shareholders sold an additional 21.5m shares.
The company’s footwear was first cobbled together by Johann Adam Birkenstock in Germany in 1774.
The sandals have long been derided as the antithesis of high fashion but have a cult following and this year got a plug in the Barbie movie.
Birkenstock chief executive Oliver Reichert, second from right, outside the New York Stock Exchange
Credit: AP Photo/Richard Drew
2:20PM
X has ‘no backroom deals’, Musk tells EU
Elon Musk has continued his spat with European Commissioner Thierry Breton after being urged to halt illegal content on social media platform X, formerly known as Twitter:
We take our actions in the open.
No back room deals.
Please post your concerns explicitly on this platform.
— Elon Musk (@elonmusk) October 11, 2023
2:15PM
Collapsed funeral plan provider under fraud investigation
Fraud investigators have opened an inquiry into the collapse of a funeral plan provider.
Safe Hands Plans collapsed last year, after 46,000 customers had paid into it, expecting a contribution towards future funeral costs.
The Serious Fraud Office (SFO) said it is investigating a suspected fraud at the company and its parent, SHP Capital Holdings Ltd.
Funeral plans have been marketed for years as a way for people in the later stages of their lives to put aside a little money each month so their families are not burdened with a massive bill when they die.
The plans became particularly popular as funeral prices soared, but there have also warnings, with critics saying there is little or no protection should the provider go bust and not be able to uphold its end of the deal.
SFO director Nick Ephgrave said:
Thousands of individuals from all corners of the UK lost peace and security after being sold a product on the basis it would help reduce the burden on their loved ones upon their death.
Today, we have taken decisive next steps in our full criminal investigation into Safe Hands Plans.
1:58PM
US wholesale prices rise at fastest pace in five months
US wholesale prices rose last month at the fastest pace since April, suggesting that inflationary pressures remain despite a year and a half of higher interest rates.
The Labor Department reported that its producer price index — which measures inflation before it hits consumers — climbed 2.2pc from a year earlier. That was up from a 2pc uptick in August.
On a month-to-month basis, producer prices rose 0.5pc from August to September, down from 0.7pc from July to August.
Excluding volatile food and energy prices, so-called core inflation rose 2.7pc in September from a year earlier and 0.3pc from August.
The Federal Reserve and many outside economists pay particular attention to core prices as a good signal of where inflation might be headed.
Wholesale prices have been rising more slowly than consumer prices, raising hopes that inflation may continue to ease as producer costs make their way to the consumer. Wednesday’s numbers show that wholesale inflation, driven by an uptick in the price of goods, came in higher last month than economists had expected.
🇺🇸Inflation illusion from energy but core disinflation
📉Headline #PPI +0.5% m/m
✅Core +0.2% m/m
⛔️Goods 0.9%
🍲Food 0.9%
🔥Energy 3.3%⛽️
✅Core 0.1%
✅Services 0.3%
🟡Transport 0.5%
✅Trade (margins) -0.4%
📊Inflation
⬆️PPI 2.2% y/y (+0.2pt)
⤵️Core 2.8% y/y (-0.1pt) pic.twitter.com/Y9SUor2gMr
— Gregory Daco (@GregDaco) October 11, 2023
1:46PM
German government predicts recession as it downgrades forecasts
Germany’s government has predicted a recession in Europe’s largest economy, which it expects to shrink by 0.4pc this year.
The revised forecast contrasts with the 0.4pc growth that the government predicted in late April.
The Economy Ministry said in a statement that “the effects of the energy price crisis in combination with global economic weakness are weighing down the German economy more persistently than was assumed in the spring”.
On Tuesday, the International Monetary Fund forecast that the German economy will shrink by 0.5pc.
A group of leading German economic think tanks last month predicted a 0.6pc contraction.
1:27PM
Selfridges narrows losses as tourists return
Shoppers flocked to Selfridges despite cost-of-living pressures as the department store chain benefited from returning tourists and commuters to major high streets.
The historic retailer reported a surge in revenues and narrowed losses in its previous financial year, according to newly filed accounts.
Selfridges Retail, which trades as Selfridges & Co across its four large department stores and online business, recorded a 29pc increase in revenue to £843.7m for the year to January 28, compared with the previous year.
The business, which was founded in 1909, had been impacted significantly by the pandemic and travel restrictions in the previous year.
In the latest accounts, Selfridges said it saw some continued impact from the pandemic, including the spread of the Omicron Covid-19 variant and restrictions for Chinese travellers.
It also highlighted that it saw “some supply chain disruption continuing into the year”, which it said was also impacted by Brexit-related rules.
Improved trading over the year was “driven by strong footfall and sales” through the company’s physical stores, particularly Oxford Street in London and Exchange Square in Manchester.
Selfridges posted a pre-tax loss of £37.9m for the year, shrinking from a £121.5m loss a year earlier.
Credit: Robert Alexander/Getty Images
1:14PM
Luton Airport poised to resume flights after fire
Luton Airport said it is preparing to resume its first flights at about 3pm after a major fire which firefighters believe started in a diesel vehicle parked at a multi-storey car park.
Around 25,000 airline passengers have been disrupted by the huge blaze. Follow the latest in our live blog.
12:55PM
US markets poised to open higher ahead of Fed minutes
Wall Street’s main indexes are on track to open higher as US Treasury yields continue to retreat.
Investors are also awaiting a Labor Department report that is expected to show the producer price index for final demand increased 0.3pc last month after a 0.7pc rise in August, ahead of Thursday’s consumer inflation data.
Minutes from the Fed’s September meeting, where policymakers held rates steady, are expected at 7pm UK time and will be crucial in assessing the central bank’s outlook on interest rates.
Yields on government bonds have eased from their 16-year highs after dovish remarks from Fed officials earlier this week.
Traders put the chance of interest rates remaining unchanged in November and December at around 88pc and around 74pc, respectively, according to CME’s FedWatch tool, with rate cuts being priced in early next year.
Megacap stocks Microsoft, Alphabet, Tesla , Nvidia and Meta Platforms advanced between 0.3pc and 0.6pc in premarket trading.
The debut of German luxury sandal maker Birkenstock on the New York Stock Exchange will also be keenly watched. The company has priced its IPO at the middle of its indicated price range at $46 per share.
Ahead of markets opening, Dow Jones Industrial Average and S&P 500 futures were up 0.3pc, with the Nasdaq 100 up 0.4pc.
12:22PM
GSK settles four US lawsuits claiming heartburn drug causes cancer
GSK has agreed to settle lawsuits in California alleging its discontinued heartburn drug Zantac caused cancer, as the drugmaker joins a widening push from pharmaceutical giants to draw a line under costly litigation.
The Anglo-Swedish company, which has so far only settled cases in California, did not give the financial details of the settlement but said it was a “non-material” sum.
The trial for the Cantlay/Harper case, which was set to begin on November 13, will now be dismissed, GSK said, adding it had also settled three remaining breast cancer cases in California related to the same drug.
The company still faces about 79,000 cases related to Zantac in the US, with 73,000 of them in Delaware.
Shares in GSK rose more than 2pc to a 10-month high in early trading – briefly making it the best performer on the FTSE 100 – but have reduced gains to about 0.4pc.
Last week, fellow British pharmaceutical giant AstraZeneca has agreed to pay $425m (£352m) to settle US lawsuits that claimed two of its heartburn drugs caused kidney damage.
GSK has discontinued heartburn drug Zantac
Credit: REUTERS/Brendan McDermid
12:10PM
Next ‘prepares to buy FatFace in £100m deal’
Next is reportedly close to buying high street fashion chain FatFace in a deal worth £100m.
The FTSE 100 clothing giant is putting the finishing touches on the acquisition, according to Sky News.
Since the pandemic, Next has bought online furniture retailer Made.com out of administration, Cath Kidston and maternity wear retailer JoJo Maman Bebe.
It has also become the majority shareholder in Reiss.
11:56AM
Exxon secures £48bn takeover to make it dominate shale oil producer
Exxon Mobil has agreed to buy Pioneer Natural Resources in a $59.5bn (£48.4bn) deal which will make it the world’s dominant producer of shale oil.
The all-stock takeover at $253 per share is the largest corporate takeover this year and the biggest for Exxon since it merged with Mobil in 1999.
The deal makes the company the largest player in the Permian Basin of Texas and New Mexico and will bring its total production to nearly 4.5m barrels of oil equivalent a day. That is 50pc more than its nearest rival.
It also gives the business access to more undrilled sites in the world’s largest shale basin – with the vast array of onshore sites much quicker to launch than underwater fields.
ExxonMobil chairman and chief executive Darren Woods said:
Pioneer is a clear leader in the Permian with a unique asset base and people with deep industry knowledge.
The combined capabilities of our two companies will provide long-term value creation well in excess of what either company is capable of doing on a standalone basis.
Pump jacks in front of a drilling rig in an oil field in Midland, Texas
Credit: REUTERS/Nick Oxford
11:34AM
Marston’s counting on Rugby World Cup boost after wet summer
The boss of Marston’s said the pub group is set for a weekend sales boost from the Rugby World Cup, particularly in Wales, as it revealed strengthening trade.
The company, which runs 1,415 pubs across the UK, revealed that sales jumped by around a tenth for the past year despite an impact from “wetter weather” in July and August.
Bosses at the company, which owns the Pitcher & Piano chain, said sales rebounded in recent weeks amid improved weather and resilient consumer spending.
Andrew Andrea, chief executive of the group, told PA that its Welsh business, which includes Brains pubs it bought in 2020, has been strong as rugby matches have helped trade. He said:
We’ve seen a particular boost from the rugby at our 200 pubs in Wales.
This weekend should be strong across the board too. We’ll expect to do well from the Wales match and hopefully will see people at those pubs stay to watch the Ireland-All Blacks game after.
Marston’s told shareholders that like-for-like sales have risen by 12pc over the five weeks to date, with rises in both food and drink sales.
Its shares have fallen 2.9pc today.
Credit: REUTERS/Carl Recine
11:17AM
Harsher Iran sanctions ‘not off the table’ amid Hamas attacks, says Yellen
Janet Yellen has said nothing is “off the table” in terms of possible sanctions against Iran if it is found to have been involved in the Hamas terrorist attack that killed and wounded thousands of Israeli civilians.
Our economics editor Szu Ping Chan was at her press conference in Marrakech:
The US Treasury Secretary was asked if America was prepared to impose further sanctions against Iran related to $6bn in Iranian oil proceeds that were unfrozen as part of a deal last month that saw around half a dozen US hostages freed.
She said: “I wouldn’t take anything off the table in terms of future possible actions.”
However, she played down the prospect of any immediate action, saying the funds had “not been touched” since they were transferred into a Qatari bank account after five Americans in Iran were freed as part of a prisoner swap.
Ms Yellen also said the situation in Israel posed “additional concerns” for the global economic recovery, including higher inflation.
However, she added: “At this stage we’re focused on human beings that have been affected by these barbaric attacks on Israel. And while we’re monitoring potential economic impacts from the crisis I’m not really thinking of that as a major driver of global economic outlook”
She added that a “soft landing” was still the most likely scenario even taking the latest economic turbulence into account.
Janet Yellen holds a press conference on the third day of the International Monetary Fund and World Bank annual meeting in Morocco
Credit: REUTERS/Susana Vera
10:57AM
Saudi Arabia and Russia to hold oil summit amid Israel conflict
Saudi Arabia and Russia, the world’s top two oil exporters, will discuss the situation in the crude market amid the escalating conflict between Israel and Hamas, Vladimir Putin’s top oil official said.
Crude oil prices spiked in the wake of a massive incursion into Israel from Gaza launched by the Palestinian Islamist group on October 7.
Brent, the international benchmark, has fallen back slightly from those gains, dropping 0.4pc today toward toward $87 after trading below $85 on Friday.
Russian Deputy Prime Minister Alexander Novak greeted Saudi Arabia’s Minister for Energy Prince Abdulaziz bin Salman in Moscow on Wednesday in a video posted online by Russian journalists.
They are due to take part in an energy conference in Moscow.
Mr Novak said that Russia and Saudi Arabia would discuss the impact of the conflict in the Middle East which the Kremlin has warned could swiftly escalate into a regional conflict.
He said: “We will discuss it… Such events in the world one way or another can influence the situation with the consumption of energy resources.”
10:43AM
Qatar signs 27-year deal to supply gas to TotalEnergies
Qatar has agreed to supply France’s TotalEnergies with natural gas for 27 years, its state energy company announced on Wednesday.
Qatar will supply 3.5m tonnes of gas a year under the deal, QatarEnergy said, following two agreements with Total last year for a share of the Gulf state’s huge North Field gas expansion project.
Qatari Energy Minister Saad Al-Kaabi said: “These two new agreements we have signed with our partner TotalEnergies, demonstrate our continued commitment to the European markets in general, and to the French market in particular, thus contributing to France’s energy security.”
Total signed a $1.5bn deal with QatarEnergy in September last year giving it a 9.3pc stake in Qatar’s North Field South project, the second phase of the field’s expansion.
TotalEnergies will receive gas from Qatar for 27 years
Credit: Christopher Pike/Bloomberg
10:25AM
Gas prices ease back amid pipeline sabotage fears
Wholesale gas prices have fallen back today after the damage caused to the Baltic Sea pipeline and a telecommunications cable connecting Finland and Estonia on Sunday.
Damage to the Balticconnector gas pipeline was caused by “quite heavy force”, Estonia’s defence minister said today, a day after Finland said it could have been the result of deliberate action.
UK gas prices have fallen back 3.8pc to 119.9p per therm, while Europe’s benchmark contract has slipped 3.7pc to below €48 per megawatt hour.
Both had soared to their highest levels since June in the wake of the closure of Israel’s Tamar gas field and fears about energy security following the claims that the Baltic undersea pipeline could have been sabotaged.
The Kremlin today said the news of the damage was “disturbing” and it would await additional information on what happened.
Estonian Defence Minister Hanno Pevkur told Reuters:
It can clearly be seen that these damages are caused by quite heavy force.
So what it is exactly, we have to specify yet, but at the moment it rather seems that it had been mechanical impact or mechanical destruction.
10:08AM
Bond yields shrink further amid Israel war
Gilts have rallied for a third consecutive day as investors seek out safe-haven assets amid the war in Israel.
The benchmark 10-year yield has dropped by more than six basis points to 4.36pc, its lowest level since September 21, having reached 4.66pc earlier this month.
It comes as eurozone bond yields dropped to fresh two-week lows, with Germany’s 10-year Bund yield, the benchmark for the currency bloc, was down five basis points at 2.72pc, its lowest since September 22.
The rally in bonds has been helped by remarks from central bank policy makers on both sides of the Atlantic that gave investors reassurance that the European Central Bank and US Federal Reserve had reached the end of cycles of increasing interest rates.
9:56AM
Taxes must rise to halt debt spiral, warns IMF
The International Monetary Fund (IMF) has urged governments to raise taxes or slash spending to stop debt spiralling out of control as balancing the books becomes harder in a world of high interest rates.
It warned that Chancellor Jeremy Hunt was not on course to meet its promise of slashing borrowing to below 3pc of GDP by 2028, adding that debt interest payments were likely to account for around half of the UK’s borrowing needs going forward.
The IMF warned that global public debt would approach the size of the entire global economy by the end of this decade.
It said a number of low-income countries were already struggling with debts and shut out of financial markets.
While the IMF singled out the US and China for driving increased global debt levels, it said other “large and rich” economies were also facing debt sustainability issues.
It said in its latest fiscal monitor: “While immediate financial pressures are absent, the perpetuation of current policies entails an unsustainable fiscal path. For all countries, it is becoming hard to balance public finances.”
It warned that politicians faced tough choices to bring debt down.
“Faced with myriad spending pressures, political red lines limiting taxation, at an insufficient level, translate directly into larger deficits that push debt to ever-rising heights.
“Something must give to balance the fiscal equation. Policy ambitions may be scaled down or political red lines on taxation moved if financial stability is to prevail.”
Jeremy Hunt has been told he is on track to miss his target to slash borrowing to below 3pc of GDP
Credit: OLI SCARFF/AFP via Getty Images
9:31AM
Burberry hits lowest point this year as post-pandemic luxury boom wanes
Burberry shares hit their lowest point this year after luxury retailers were given a reality check by poor sales from French giant LVMH.
The British raincoat maker sank to the bottom of the FTSE 100 as its shares fell as much as 3.7pc.
It has suffered contagion from lacklustre third quarter results from LVMH, which tumbled as much as 7pc after showing signs of a slowdown in growth.
The continent-wide Stoxx Europe 600 index dipped after Tuesday’s near-2pc jump amid a luxury sell-off.
Richemont and Christian Dior declined more than 4pc each.
Model Irene Kim attends a photocall for the ‘Byurberry Seongsu Rose’ pop-up store in Seoul earlier this month
Credit: Han Myung-Gu/WireImage
9:10AM
Hotpoint and Beko tie-up hit with full-scale competition probe
Britain’s competition watchdog is launching a full-scale investigation into a planned tie-up between the electrical and white goods giants behind Hotpoint and Beko in Europe amid worries the deal could reduce choice and increase prices.
The Competition and Markets Authority (CMA) said it would refer Turkish firm Arcelik’s takeover of Whirlpool’s European domestic appliances business for a so-called phase two investigation after both firms failed to offer moves to address its concerns.
The regulator said last month that the deal could lead to less competition in the supply of major household appliances in the UK.
The merged company would be the biggest supplier of washing machines, tumble dryers, dishwashers and cooking appliances in the UK, a market worth more than £3.8bn, according to the CMA.
Whirlpool makes household appliances, including the Hotpoint and Indesit brands, while Arcelik supplies home appliances and consumer electronics, such as the Beko and Grundig brands.
The CMA said last month that Arcelik and Whirlpool’s position is “particularly strong in the low to mid-range price categories of these domestic appliances, where they would face competition from only a small number of competitors.”
Credit: Tim Boyle/Getty Images
8:48AM
FTSE 100 rises as oil holds its gains
The FTSE 100 has rebounded into positive territory after a shaky start as stock indexes tracked gains on Wall Street amid a growing belief the Federal Reserve is finished with its cycle of interest rate increases.
The UK’s blue-chip index has gained 0.2pc after opening lower as markets were also lifted by a report that China is considering a large burst of economic stimulus. The midcap FTSE 250 remained 0.1pc lower.
Shell and BP pushed the FTSE 100 higher with gains of 0.9pc and 1.6pc as oil prices held onto their gains after a rally in the wake of the bloodshed in Israel.
Page Group shares fell as much as 7.9pc after the recruitment consultancy’s fee income growth was lower than analysts had expected.
Travis Perkins slumped as much as 15pc after it issued a profit warning as consumers delay home repairs and renovations.
Shares of Burberry fell 3.7pc to their lowest point this year after French luxury giant LVMH tumbled 6.1pc after its third-quarter revenue showed signs of a slowdown in growth.
8:34AM
Heathrow passengers numbers above pre-pandemic levels for first time
Heathrow passenger numbers have exceeded pre-pandemic levels for the first time in a parting gift to its outgoing chief executive.
More than 7m people travelled through Europe’s busiest airport in September, making it the first month since February 2020 to exceed 2019 traffic levels.
The announcement comes as John Holland-Kaye departs as boss after nearly a decade in charge, handing over to Thomas Woldbye on October 18. He said:
It has been a privilege to lead the very talented team which in less than a decade transformed Heathrow into a hub airport that the whole nation can be proud of.
We have built a solid legacy for my successor: Heathrow is now a customer service business with a clear path to net zero by 2050 and a plan to grow and to connect all of Britain to global growth.
John Holland-Kaye ends his nine-year tenure as Heathrow chief executive this month
Credit: Yui Mok/PA Wire
8:17AM
LMVH slides as post-pandemic luxury boom wanes
Luxury goods giant LVMH suffered a 6pc drop in its share price as markets opened after it reported disappointing sales growth in the third quarter as inflation and economic turbulence detail a strong wave of post-pandemic spending.
LVMH, which owns labels including Louis Vuitton, Dior, Tiffany and Bulgari, said revenue came to €19.96bn (£17.24bn), up 9pc year-on-year, stripping out the effect of currency fluctuations and acquisitions. Total revenue rose 1pc year-on-year.
Chief financial officer Jean-Jacques Guiony said: “After three roaring years, and outstanding years, growth is converging toward numbers that are more in line with historical average.”
The fashion and leather goods division, home to Louis Vuitton and Dior, recorded sales growth of 9pc, compared to analysts’ expectations for 10pc growth.
LVMH, whose chairman and chief executive is Europe’s richest man Bernard Arnault, is facing slowing demand for high end goods in the United States and Europe, where rising prices have prompted shoppers — especially younger generations — to pull back from a post-pandemic spending euphoria, while the recovery in China has been uneven.
It comes as M Arnault and a Russian oligarch are being investigated for alleged money laundering at an Alpine resort known as a playground for the super-rich. Both men deny wrongdoing.
LVMH head Bernard Arnault at the Louis Vuitton fashion show this month
Credit: MIGUEL MEDINA/AFP via Getty Images
8:08AM
UK markets fall at the open
The energy-heavy FTSE 100 has fallen at the open as gains in oil and gas prices plateaued following a surge in the wake of the Israel-Hamas war.
The UK’s blue-chip index was down 0.2pc to 7,616.04 while the FTSE 250 fell 0.5pc to 17,871.83.
8:03AM
German inflation at lowest level since start of Ukraine war
Germany has confirmed that inflation in Europe’s largest economy dropped back to its lowest rate since outbreak of war in Ukraine last month.
Its consumer prices index rose by 4.5pc in September.
Good Morning from #Germany where Sep #inflation fell to its lowest rate since outbreak of war in Ukraine, confirming prior estimates. CPI slowed to 4.5% in Sep YoY from 6.1% in Aug. Headline CPI now lower than Core CPI BUT food prices are already on the rise again. Compared to… pic.twitter.com/XxOK5moNMx
— Holger Zschaepitz (@Schuldensuehner) October 11, 2023
7:49AM
Travis Perkins issues profit warning as consumers cut home improvements
Travis Perkins has warned that it is likely to miss profit expectations during the financial year as it battles “challenging conditions”.
The company, which specialises in supplying builders, said that its adjusted operating profit is now expected to be between £175m to £195m for the year. Analysts had previously expected the firm to make between £236m and £250m.
Chief executive Nick Roberts said:
Market conditions remain challenging with continued weakness across new build housing and domestic RMI (repairs, maintenance, improvement).
Deflation on commodity products has also been greater than we had anticipated. In this environment, our priority has been to ensure that we deliver for our customers, both on service and pricing, as we seek to retain and grow our customer base for the medium to long term.
Credit: Stephen Bates
7:44AM
Page Group hit as candidates unwilling to risk job change
Page Group warned that candidates are rejecting job offers as it cut its profit outlook.
The recruitment giant said its UK, US and Asia business had been hit by tough market conditions, leading to a reduction in its operating earnings forecast from between £137.6m to £129.5m down to £130m to £125m.
It cut its number of consultants by 310 to 6,075 as it reported a 7.9pc fall in gross profit to £242.2m in the third quarter.
Chief executive Nicholas Kirk said:
The group delivered a resilient result in challenging markets. EMEA was our best performing region, however, tough market conditions affected our performances in Asia, the UK and the US.
Candidate shortages remain acute and are supportive of continued high fee rates. Salary levels remain elevated, albeit the salary increases offered to candidates reduced compared to Q3 2022.
These lower offers, combined with lower candidate confidence, led to a further increase in the number of offers rejected by candidates, either through employer buybacks or unwillingness to risk the move for the size of incentive on offer. The increased time to hire that we saw in Q2 continued.
7:32AM
EU warns Musk over Israel-Hamas disinformation on Twitter
Elon Musk faces fresh scrutiny over claims of disinformation on his social media platform X amid the Israel-Hamas conflict.
The billionaire was sent an open letter by European Commissioner Thierry Breton calling on him to take action.
Mr Breton said he had received “indications that your platform is being used to disseminate illegal content and disinformation in the EU”.
Mr Musk quickly responded on X, formerly known as Twitter, saying the platform’s policy “is that everything is open source and transparent, an approach that I know the EU supports”.
He asked for the EU to list the violations and ended the exchange “Merci beaucoup”.
It comes as Technology Secretary Michelle Donelan called an urgent meeting with social media companies “to ensure action is taken to swiftly remove any violent content fuelled by Hamas’ acts of terrorism in Israel from their platforms”.
Earlier this week, the Tesla and SpaceX chief executive was accused of promoting antisemitism after recommending Twitter users follow an account that has repeatedly disparaged Jewish people for updates on the attack on Israel.
He later deleted the tweet.
Here is the prickly exchange between Mr Musk and Mr Breton:
Following the terrorist attacks by Hamas against 🇮🇱, we have indications of X/Twitter being used to disseminate illegal content & disinformation in the EU.
Urgent letter to @elonmusk on #DSA obligations ⤵️ pic.twitter.com/avMm1LHq54
— Thierry Breton (@ThierryBreton) October 10, 2023
Our policy is that everything is open source and transparent, an approach that I know the EU supports.
Please list the violations you allude to on 𝕏, so that that the public can see them.
Merci beaucoup.
— Elon Musk (@elonmusk) October 10, 2023
Vu, merci.
You are well aware of your users’ — and authorities’— reports on fake content and glorification of violence.
Up to you to demonstrate that you walk the talk.
My team remains at your disposal to ensure DSA compliance, which the EU will continue to enforce rigorously.
— Thierry Breton (@ThierryBreton) October 10, 2023
7:28AM
Good morning
Thanks for joining us. The EU has issued a warning to Elon Musk to stop disinformation on his social media platform X, formerly known as Twitter, as the Israel-Hamas conflict deepens.
European Commissioner Thierry Breton posted an open letter about the alleged “illegal content” but Mr Musk said the social network’s policy was that “everything is open source and transparent”.
5 things to start your day
1) Homeowners near net zero pylons could get free heat pumps, National Grid suggests | Move is aimed at reducing the public backlash against development of new transmission lines
2) Sam Bankman-Fried told me to commit fraud, crypto founder’s former lover testifies | Caroline Ellison is one of the three former top FTX executives who are cooperating with prosecutors
3) Selfridges loses £40m despite sales boost as finance costs weigh | The upmarket department store was forced to spend more on distribution and interest payments last year
4) How Zuckerberg and Musk plunged digital tabloids into crisis | News is no longer a priority for the social media giants – and this is hurting ad-funded publishers
5) Heavy EV batteries force overhaul of driver’s licence rules on vehicle weight | Government to scrap additional training to aid switch to large zero-emissions vehicles
What happened overnight
Shares advanced in Asia, tracking Wall Street gains following an easing of pressure from the bond market.
In China, investor sentiment got a boost from a report by Bloomberg that the government is considering boosting spending on construction to support the economy.
China’s lacklustre recovery from the blows to its economy during the pandemic have weighed heavily on regional and global growth.
The Hang Seng in Hong Kong added 1.4pc to 17,919.55 and the Shanghai Composite index was up 0.2pc at 3,081.22.
Tokyo’s Nikkei 225 index climbed 0.9pc to 32,019.42.
In South Korea, the Kospi jumped 2.5pc, to 2,462.10 after Samsung Electronics reported improved quarterly earnings.
Samsung’s shares surged 4.4pc, while SK Hynix’s were up 3.3pc. Analysts say the worst of the post-pandemic contraction in demand for computer chips and electronic devices may be over.
Australia’s S&P/ASX 200 advanced 0.6pc to 7,085.70. In India, the Sensex added 0.7pc and in Bangkok the SET was up 0.8pc.
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