Business news live: FTSE 100 drops and Poundland is saved from going into administration

Morning all and welcome back to our live business and finance coverage on The Independent.

This morning we’re looking at food inflation rising, the stock market reopening in London and plenty more.

We start off with the morning news on food inflation continuing to rise.

British Retail Consortium data shows it at 4.2 per cent – up from 4 per cent in June – which places it at the fastest rising rate in 18 months, since February 2024.

“Retailers continue doing everything they can to limit price rises for households, but as the Bank of England acknowledged, the £7 billion in new costs flowing through from last year’s budget has created an uphill battle for retailers,” said Helen Dickinson, chief executive of the BRC.

Butter, chocolate and eggs all rose in price to contribute significantly to overall food inflation in July.

Below is the full report – but it’s estimated that food inflation could hit 5 per cent later this year and the Bank of England has cited fears that food prices could contribute to overall increases in inflation too.

Marks & Spencer got themselves fully back up and running a couple of weeks ago with the return of their click and collect service.

Now the next phase of their digital push will see them move into the second-hand clothes boom, selling garments on eBay.

Customers can also pick up £5 gift vouchers if they donate M&S clothes to Oxfam.

The charity will benefit from sales of these second-hand clothes.

A sharp enough fall this morning as stock markets open around Europe, with the FTSE 100 down 0.64%.

In Germany the DAX is down by around the same, while France’s CAC 40 is plummeting, at -1.98%.

Much of this is over concern around the removal of a key Fed member by Donald Trump – more on that shortly.

Businesses in England are to face an “unavoidable double hit” to their property tax payments next year, which will see total payments surge by about £2.5 billion, according to new figures.

Analysis from global tax firm Ryan indicated that inflation and a government tax change will combine to drive up business rates bills further.

Business rates are the property taxes paid on commercial properties across the UK and particularly affects high street businesses. They are devolved in Scotland, Wales and Northern Ireland.

From April next year, a nationwide revaluation process will take place on business rates in England, linking payments to values in the property market from April 2024.

The Food and Drink Federation (FDF) say energy prices and National Insurance rises have contributed to food costs going up for consumers.

“The latest food and drink inflation figures show that food and drink manufacturers are being squeezed on all sides,” Jim Bligh, director of corporate affairs at the FDF, said recently.

“Energy prices remain high, and the cost of some key ingredients has surged in recent years. Cocoa prices are at a 45-year high, and both olive oil and butter prices have doubled since 2020.

“With high commodity prices, the new £1.4 billion packaging tax, and increased National Insurance costs, it’s no surprise that many food and drink manufacturers have seen their costs increase by 10% or more this year.

“Manufacturers have absorbed as many of these costs as possible, but consumers will still see higher prices at the till. We expect that high food and drink inflation will persist through the year, so any fresh costs for businesses in the Autumn Budget will inevitably put yet more pressure on shoppers’ pockets.”

A few months ago the FCA announced the launch of PISCES – an exchange to buy shares in unlisted private companies through.

Today, they have confirmed the London Stock Exchange is the first operator given the green light to run such an setup.

“We are delighted to be the first venue operator to have been granted a PISCES Approval Notice by the FCA…the London Stock Exchange has now taken a significant step towards the launch of our Private Securities Market later this year,” said LSE’s CEO.

“This new market demonstrates our commitment to the creation of a genuine funding continuum from the private to public markets so that businesses in the UK and around the world can be effectively supported across all stages of their growth.

“We look forward to welcoming the first private companies to utilise the market when they have completed their preparations and to expanding the options they will have to realise their ambitions.”

About 2,400 pensioners successfully reclaimed more than £10,000 each after being overcharged tax on their pension withdrawals, new analysis has revealed.

A small number of people in the UK even received refunds exceeding £100,000.

The HMRC figures, which were obtained by Royal London through a Freedom of Information (FOI) request, show a notable increase in the number of refunds claimed in the 2023-24 financial year.

Donald Trump speaks, the investment world wobbles. His constant changing of timings and direction in state matters make it tough to predict what’s next for businesses and money markets – and the markets hate uncertainty.

“A jump in US Treasury yields indicates that bond investors aren’t happy about how Trump continues to meddle with the Fed and threaten its independence,” says Russ Mould, investment director at AJ Bell.

“Equity markets were in the red across Europe and Asia, and futures prices imply Wall Street will follow suit when it opens for trading later today.

“Donald Trump is being relentless in his quest to lower interest rates. He has publicly called for the Federal Reserve to cut the cost of borrowing and has repeating criticised Fed chair Jerome Powell for not pursuing looser monetary policy.

“Even though Powell last week indicated a shift in Fed strategy with the implication that rates will be cut next month, Trump seems unsatisfied. He’s proceeded to sack Fed governor Lisa Cook which will drive speculation that the US president will push for a replacement governor more in line with his way of thinking. Cook has refused to resign, and the whole incident has caused financial markets to wobble once again.

“Importantly, the VIX volatility index has jumped 10% which suggests that investors have quickly switched from party-mode last Friday to now being cautious once again.”