Boeing slumps to £276m loss as midair blowout crisis deepens

That’s all from us! We’ll be back first thing tomorrow. 

Investors in Woodside Energy, Australia’s largest oil and gas developer, overwhelmingly rejected its emissions reduction plan at its annual general meeting on Wednesday. 58pc voted against at the gathering in Perth.

Energy editor Jonathan Leake reports:

The shock vote is the strongest protest yet against the climate plans of fossil fuel giants. Most regularly put climate-related strategies and resolutions to shareholders, in the expectation of winning near-unanimous backing.

The Woodside revolt comes a day before BP’s annual meeting in west London on Thursday, where environmentalists are expected to mount similar challenges to the company’s climate reduction plan.

BP has moved the meeting from central London to its campus in Sunbury-on-Thames so that it can manage security more effectively.

Woodside had proposed to cut its emissions by 15pc by 2025, 30pc by 2030 and reach net zero by 2050.

However, activists had complained that the plan was reliant on carbon credits, where the company buys offsets but keeps releasing emissions.

Campaigners want Woodside to shelve major new oil and gas projects and oppose its reliance on carbon credits to help meet its targets.

Woodside chairman Richard Goyder, who also chairs Qantas’s board, said he was disappointed by the rejection of its plan but the board respected the result and would keep talking to shareholders about its strategy.

He said: “The vote reflects the challenges and complexities of the energy transition, and today’s outcome is one we take very seriously.”.

A related campaign to block Mr Goyder’s re-election failed to unseat him but cut his margin of victory down to 83.4pc, from the 99.2pc support he secured in 2021.

A vocal and public campaign against Woodside’s plans and Mr Goyder won support from major pension funds in the US, Norway and Australia.

Woodside has oil and gas operations in Australia, Indonesia, the Caribbean, Gulf of Mexico, Africa and North America. It also has a $20bn plus portfolio of new projects in various stages of development.

Critics believe Woodside relies too much on offsets, is not aligned with Paris climate agreements, and does not seriously consider emissions produced by those using its gas.

Harriet Kater, head of impact at the Australasian Centre for Corporate Responsibility (ACCR), which led the campaign against Mr Goyder and the climate plan, said: “It would be belligerent for Woodside to front up to shareholders next year with the same old approach.” 

Abrdn investors have approved the directors’ remuneration report at the company’s annual shareholder meeting, with 86pc voting in favour. 

This includes the £2.14m pay package of chief executive Stephen Bird.

The shareholders also backed the relection of the company’s directors, including chairman Sir Douglas Flint. 

Abrdn’s annual shareholder meeting in Edinburgh has been disrupted by environmental protestors demanding the asset manager stop investing in fossil fuels. 

The FTSE 100 has fallen short of a breaking another closing record after pulling back from record highs during afternoon trading. 

The blue chip index dipped 0.05pc to 8,040.38, which is below Tuesday’s fresh closing record of 8,044.81. 

It comes after the FTSE 100 achieved a new intraday record on Wednesday after a series of strong results from major companies.

The UK’s flagship stock index rose as much as 0.5pc to a new all-time pinnacle of 8,083.92, eclipsing the previous record that was set on Tuesday. 

The independent board of Ben & Jerry’s will continue overseeing the “social mission” of the brand even if parent company Unilever Plc sells or spins off the ice cream unit.

The board of directors, taksed with protecting and defending Ben & Jerry’s brand and integrity, has a “firmly established framework” which will continue promoting progressive causes, Bloomberg reported. 

“This robust framework is the key to our consistent alignment with our values and has been instrumental in achieving a 400% growth since our merger with Unilever,” the board said. 

It comes after Unilever said it wanted to sell its ice cream division, which generates around €8bn (£6.8bn) in annual sales, in a bid to reverse years of lackluster performance. 

The consumer goods conglomerate has since also announced a plan to abandon or weaken a series of its environmental and social commitments. 

The offices of a Chinese airport security scanner manufacturer have been raided by European Union officials amid a crackdown on subsidies from Beijing.

Local authorities in the Netherlands and Poland targeted the offices of Nuctech on Tuesday morning, seizing mobile phones and IT equipment. 

The partly state-owned company, which makes baggage security scanners, has come under increasing scrutiny in recent months owing to security concerns. 

Matthew Field has the story...

Tesla was leading the market on Wall Street after committing to accelerate production of new, more affordable vehicles.

The electric vehicle maker’s shares jumped 11pc despite it announcing a 55pc drop in profit in the first three months of the year.

That is all from me today. I will hand you over to Adam Mawardi, who will provide live updates from here.

I will leave you with an image of a transporter carrying three new Tesla Cybertrucks in California after all 3,878 of the vehicles were recalled due to a faulty accelerator pedal which can become trapped.

ITV boss Kevin Lygo has revealed the hit drama Mr Bates vs The Post Office made a loss of around a million pounds as he discussed the pressure broadcasters are facing due to increased competition from more media outlets.

The ITV show, detailing how hundreds of innocent sub-postmasters and postmistresses were wrongly accused of theft, fraud and false accounting due to a defective IT system, prompted public outrage and helped put the Horizon scandal under the spotlight.

Alongside airing on ITV, the corporation announced last month that 12 foreign broadcasters had bought the right to show it, but this was not enough for them to break even.

Mr Lygo, the managing director of media and entertainment of ITV, told the Voice of the Listener & Viewer (VLV) spring conference: 

Mr Bates has made a loss of something like a million pounds and we can’t continually do this. Of course, some things are very profitable on the channel, and some things aren’t.

But it’s a challenge to be able to fund some of the things that aren’t, obviously, of international appeal.

We’re hoping this may be because it caused such a furore here that maybe sales will pick up, but there’s no evidence of it yet.

If you’re in Lithuania, four hours on the British Post Office? Not really, thank you very much. So you can see the challenges here.

Elon Musk’s SpaceX has agreed to acquire a 10pc stake in a British electronics company that was founded in a professor’s garage 47 years ago.

Our technology editor James Titcomb has the details:

County Durham-based Filtronic’s shares rose by more than 50pc after announcing a “strategic agreement” with SpaceX on Wednesday. 

It marks a deepening relationship between Filtonic and SpaceX, as the UK company already provides power amplifiers for Starlink satellites to boost internet signals.

As part of the announcement, Filtonic said SpaceX had recently made a new $19.7m (£15.8m) purchase order.

Read how the deal is a major boost to Filtronic, which was founded in 1977 in the garage of David Rhodes, an electrical engineering professor at the University of Leeds.

Oil prices fell slightly as fears faded about a wider conflict in the Middle East.

Brent crude, the international benchmark, was down 0.3pc to just over $88 a barrel after climbing 1.6pc on Tuesday, while West Texas Intermediate hovered around $83. 

The American Petroleum Institute reported nationwide crude inventories fell by 3.2m barrels last week, according to Bloomberg. 

If confirmed by US Department of Energy figures later today, that would be the first drop in five weeks.

The US Senate, meanwhile, passed tougher measures against Iran in response to its attack on Israel earlier this month, with President Joe Biden saying he will sign the legislation into law.

While some Asian refiners are bracing for added scrutiny, the move is not expected to have a significant market impact.

Oil prices have pulled back from their recent highs above $90 a barrel as some of the geopolitical risk in the Middle East began to ease. 

Traders are also weighing the outlook for US monetary policy, with data on the Federal Reserve’s preferred measure of inflation published later this week.

The main US stock indexes opened higher with Tesla leading gains among megacap stocks after boss Elon Musk committed to developing a cheaper EV in its quarterly results.

The Dow Jones Industrial Average rose 49.1 points, or 0.1pc, at the open to 38,552.79. 

The S&P 500 rose 14.3 points, or 0.3pc, at the open to 5,084.86​, while the Nasdaq Composite rose 109.0 points, or 0.7pc, to 15,805.601 at the opening bell.

Prada revenues jumped as sales were driven by the expansion of its youth-focused Miu Miu brand.

Revenue rose 16pc in the first three months of the year to  €1.2bn (£956m) thanks to strong performance in the Asia-Pacific region, which includes China.

Miu Miu sales grew by 89pc.

Chairman Patrizio Bertelli said:

Our group continues to make strategic progress as we invest for long-term, sustainable growth. 

Over the first quarter, we delivered a solid performance in a more challenging market environment. 

In this context, we have to maintain flexibility and agility to respond to constantly evolving industry dynamics while continuing to innovate and invest across our business, leveraging the strength of our reinforced organisation and the talent of our people.

Vimto owner Nichols saw revenue drop 6pc in the first three months of the year, despite growing its sales in the UK.

The soft drinks maker, which is also behind Slush Puppie and Sunkist, blamed the fall on a planned decline in turnover for its international packaged business, which sells Nichols’ drinks brands to supermarkets and retailers abroad.

Revenue in the division fell 23pc to £9.8m for the three months to March 31, which it said was down to “phasing of shipments”, and was anticipated by bosses, according to a trading update.

Nichols said the drop reflected the timing of shipments into the Middle East, as well as reduced sales in Africa compared to this time last year when it had a one-off spike in volumes because of launching in the Ivory Coast.

There were more positive figures for its domestic packaged business in the UK, which saw revenues grow 6.8pc to £20.4m, amid an increase in sales volume of 4.4pc.

Nichols said its flagship Vimto brand continued to grow in value, reflecting “innovation” in the product and more distribution.

Vimto is produced both as a squash and as a canned soft drink and has been launched in new flavours including “Mango & Dragonfruit” and “Passionfruit & Lychee” of late.

The AA has said rising car insurance premiums helped drive up its yearly sales, but reported a more than 40pc drop in profits.

The motoring group said customers continued to spend on breakdown cover despite reining in other household spending amid cost-of-living pressures.

It reported total revenues of £1.3bn for the year to the end of January, 11pc higher than the previous year.

Revenues from the group’s insurance arm jumped a fifth year on year, partly due to increased customer premiums, it said.

Premiums, which are paid by anyone who takes out an insurance policy, can go up if the cost of settling claims, such as car repairs, rises for insurers.

The AA said it had adjusted its prices throughout the year in light of inflationary cost pressures.

Across its key roadside division, which includes breakdown assistance and car repairs, revenues jumped 7% year on year.

The group, which specialises in breakdown cover and also runs a driving school, revealed its pre-tax profit dropped by 41pc to £42m in the latest year.

This was a result of higher finance costs, primarily greater interest rates on new debts, it said.

As shipping in the Red Sea declined by 66pc in April, Ronald Kleijwegt, chief executive at Vinturas, said:

It comes as no surprise that traffic via major shipping routes like The Suez Canal has slowed down given the current global climate. But supply chain disruption and global shock events are not a new phenomenon. 

Crisis in the supply chain has existed for years, and sadly these crises often have a knock on impact on consumer wallets where the price of goods goes up due to basic supply-demand economics. 

But consumers shouldn’t bear the brunt of supply chain disruptions, and when supply chains are managed properly it isn’t such an issue. 

The smart businesses pre-empt and anticipate potential issues so they can reroute and minimize the impact of disruptions to ensure business continuity. 

Let’s hope this is what we’re seeing with the slow down of traffic in the Suez Canal, where alternative transportation routes have been found so supply chains continue to flow and consumer pricing won’t be impacted. 

But sadly, if recent events are anything to go by, I doubt this will be the case – and the longer the crisis goes on for, the more likely it is to have an impact on inflation and consumer pockets.

The German government has raised its economic growth forecast for this year and lowered its forecast for inflation.

Ministers said they expect growth of 0.3pc, up from 0.2pc previously, as part of the government’s spring projections.

Economy minister Robert Habeck said inflation is expected to fall to 2.4pc this year, versus a previous projection of 2.8pc.

Inflation was at 5.9pc last year, taking its toll on private consumption.

Mr Habeck said: “As the year progresses, we are now seeing signs of a slight economic upturn and that the economy is slowly emerging from its weak phase.”

Private consumption is expected to contribute significant growth momentum thanks to the foreseen rise in real wages in a resilient labour market.

In 2025, the government expects gross domestic product to grow by 1pc, according to the projections.

Jet2 has signalled that post-pandemic price increases for holidays may be starting to ease heading into the summer as competition heats up across the sector.

The tour operator and airline said that, while trips booked for the coming summer have seen “a modest increase” in cost compared with last year, prices have recently become “more competitive, particularly for April and May departures”.

In a trading update, Jet2 added that package holiday and flight-only bookings are up 13pc and 18pc respectively for the summer period versus this time last year.

The update will give consumers hope that holiday price rises may be less dramatic this year than last.

In November, Jet2 said the average price of one of its trips had increased 11pc, while some airlines reported price rises of as much as 26pc last summer.

Jet2 shares have fallen as much as 5.8pc as investors were spooked by the company’s pricing comments.

Troubled aviation giant Boeing has reported a first-quarter loss of $343m (£275.8m), reflecting recent safety troubles that have slowed production and deliveries.

Boeing said it tempered production in the 737 program following a January near-catastrophic incident on an Alaska Airlines jet. 

The company is implementing a “comprehensive action plan” following a federal audit of the program, Boeing said.

Microsoft and Amazon face scrutiny from the competition regulator after it asked for views on the tech giants’ AI partnerships.

The Competition and Markets Authority has asked for comments about tie-ups between Microsoft and Mistral AI, and Amazon and Anthropic.

It also wants to hear views on Microsoft’s hiring of former employees and related arrangements with Inflection AI.

It will examine whether the deals fall within UK merger rules and the impact that they could have on competition in the UK.  

Heineken sold more beer than expected in the first three months of the year as it stuck to its forecast for profit growth in 2024.

The world’s second-largest brewer said that beer volumes rose 4.7pc organically between January and March compared to the same period the previous year.

Its shares rose as much as 1.6pc but is now trading 0.2pc higher.

Heineken is focused on restoring volume growth this year, which was hurt in 2023 as it increased its prices to offset the rising costs of everything from energy to barley.

Chief executive Dolf van den Brink said that all regions posted higher volume and net revenue. He added the quarter was helped by an earlier Easter.

Still, the brewer said it continued to see the economic environment as “challenging and uncertain”.

The S&P 500 and Nasdaq are on track to open higher as investors lauded upbeat earnings from Tesla.

Tesla led gains across megacap stocks with a 9.9pc jump in premarket trading after the electric-vehicle maker said it would introduce new, affordable models.

Other EV stocks also rose, with Lucid Group, Nikola and US-listed shares of Nio up between 1.2pc and 3.7pc.

Shares of other growth stocks also advanced, with Amazon, Microsoft and Nvidia up between 0.3pc and 1.6pc.

Meanwhile, Meta and Snap gained 1.7pc and 2.1pc, respectively, after the US Senate passed a bill late on Tuesday that would ban TikTok in the United States if its owner, the Chinese tech firm ByteDance, failed to divest the popular short video app.

Meta, Microsoft and Alphabet are scheduled to report their quarterly results later this week.

In premarket trading, the Dow Jones Industrial Average was flat, the S&P 500 has risen 0.1pc and the Nasdaq 100 had gained 0.6pc.

Ship traffic through the Suez Canal plunged by two thirds at the start of the month, according to new data which shines a light on the impact of disruption in the Red Sea on global trade amid heightened geopolitical tensions.

Ships crossing through the waterway dropped by 66pc in the first week of April, compared with the same period last year, the Office for National Statistics (ONS) said.

The Suez Canal is an important and busy trade route for ships travelling between Asia and Europe, often carrying commodities like oil and natural gas.

The Bab-Al Mandab, which is also a gateway to and from the Red Sea, showed a 59pc decrease in crossing volumes over the same period.

Economists have long warned that delays to shipping risk fuelling inflation as it could increase costs for businesses.

The ONS analysed the volume of maritime crossings using technology which tracks the position of cargo ships every few seconds.

The stark figures shed light on the impact of a period of disruption in the Red Sea since the escalation of conflict in the Middle East.

Container ships along the key trade routes have been repeatedly attacked since November.

Iran-backed Houthi rebels are behind the attacks in what they say is a campaign of solidarity with Palestinians in Gaza amid the Israel-Hamas conflict.

Meanwhile, the Strait of Dover was the busiest of the six maritime passages it analysed, with on average around 1,300 ships crossing the passage per week in 2023.

Jobcentres are facing more strikes by security staff in a dispute over pay.

The GMB has already announced that more than 1,000 of its members employed by G4S at the Department for Work and Pensions (DWP) will walk out for several days between May 7-29.

The Public and Commercial Services union (PCS) said that its members working in 700 jobcentres across the UK are to be balloted for strike action in the same dispute.

The union is seeking a rise for all 200 of its members employed by G4S, as well as reinstating a pay differential it says exists between grades.

PCS general secretary Fran Heathcote said: 

Our members work on the front line, playing a critical role in keeping their civil servant colleagues safe, as well as supporting the delivery of vital services to often very vulnerable benefit claimants.

They put their bodies on the line every day and it’s only fair they are fairly rewarded for their work with a decent pay rise.

The ballot opens on May 1, with the result expected two weeks later.

The pound has given up some of its gains from its biggest one-day rally in four months after a softer reading of monthly US business activity battered the dollar.

Sterling was down 0.2pc at $1.243, having risen 0.8pc on Tuesday, the most in one day since mid-December. The euro was steady against the pound at 86p.

The pound has come under pressure this week, having hit its lowest since November on Monday, after Bank of England officials suggested the central bank was becoming more confident that UK inflation is subsiding.

However, sterling began to recover after the Bank’s chief economist Huw Pill, who sits on the Monetary Policy Committee (MPC) which sets rates, expressed caution about the prospect of early rate cuts and said the date of the first one probably remains “some way off”.

The derivatives market reflects a belief among traders that the Bank of England could cut rates once at its August meeting and again by the end of the year.

Markets show traders believe there is about a 40pc chance of a June cut.

MUFG currency strategist Derek Halpenny said: “While we would argue that prospect remains plausible it is also clear that the MPC remains divided and that reaching the required majority to cut rates will be difficult over the coming months.”

Ryanair’s boss has urged Boeing to resist a management shake-up as it navigates business headwinds following a mid-air blowout earlier this year.

Michael O’Leary said he has held talks with the plane maker’s new head of commercial aircraft, Stephanie Pope, twice in the last fortnight after the Irish carrier blamed delays in plane deliveries for slowing its growth.

He said he is hopeful that the manufacturer will be able to ramp up production and deliver close to 40 jets to Ryanair in time for the peak summer season.

Boeing has come under increasing scrutiny from regulators following a near-catastrophic blowout of a fuselage panel on an Alaska Airlines 737 Max 9 during a flight in early January.

Mr O’Leary urged Boeing to keep Ms Pope in Seattle for the next two to three years in order for her to keep a close eye on production. He told Bloomberg:

I think all of the signs at the moment are getting more optimistic.

Now, it’s only a week or two, but that’s the first time deliveries have actually kind of moved forward instead of continuously getting delayed backwards.

The mood among German bosses improved to its highest level in a year in a sign Europe’s largest economy could be moving past its recent years of struggle.

The Ifo institute’s closely-watched confidence barometer, based on a survey of around 9,000 companies, rose to 89.4 points, up from 87.9 points in March, which was better than analysts had expected.

Ifo president Clemens Fuest said:

Sentiment has improved at companies in Germany.

Companies were more satisfied with their current business. Their expectations also brightened. 

The economy is stabilizing, especially thanks to service providers.

Pret A Manger bringing back its co-founder to help guide the UK coffee-and-sandwich chain through a rapid overseas expansion.

Sinclair Beecham, 65, who co-founded Pret almost 40 years ago and remains a significant investor, will return to the business to help “reaffirm Pret’s mission”.

Larry Billett, Pret’s chairman from 2003 to 2011, will also come back as a non-executive director.

Olivier Goudet, who has served as chairman since JAB Holdings acquired the chain in 2018, will step down to be replaced by Konrad Meyer. Both are veterans of JAB.

The shake-up comes as Pret pursues a goal of opening 150 shops this year, led by an international expansion with franchisees.

Internationally Pret plans to reach 1,000 to 1,500 locations in the coming years and will have more than 500 shops in the UK by the end of 2024. 

New chairman Mr Meyer said he was “delighted to be welcoming Sinclair and Larry back to the business”. 

He added: “With Larry’s return to the board, and Sinclair’s continued support, we are bringing together the brilliance of Pret’s past with the promise of Pret’s future.”

President Joe Biden moved a step closer to banning TikTok in the US after the Senate passed a new law ordering its Chinese owner to sell the app or face it being blocked.

Our senior technology reporter Matthew Field has the details: 

The bill passed in a landslide vote, with 79 senators in favour and 18 against, leaving it to the White House to sign off the proposed block. Mr Biden has already said he will wave through the bill.

The law effectively orders Bytedance, TikTok’s China-headquartered owner, to divest the popular music video app, or have it blocked from smartphone app stores offered by Apple and Google, as well as other web services. 

The passage of the new bill, which sailed through Congress by 360 votes to 58, follows years of calls from China hawks for a US crackdown on TikTok over national security fears and concerns for American data.

Read TikTok’s response.

Wholesale gas prices have risen after the US imposed sanctions on Iranian oil, potentially increasing demand for the fuel.

Europe’s benchmark contract gained as much as 3pc in early trading and has gained more than 6pc so far this month. The UK equivalent was up as much as 3.5pc today.

The US House of Representatives passed tougher measures against Iran over the weekend in response to an attack on Israel.

There are fears that tensions in the Middle East could lead to disruptions on key gas supply routes to Europe, which is heavily dependent on imported liquefied natural gas after losing most of its Russian gas following Vladimir Putin’s decision to invade Ukraine.

One of Britain’s Big Four accountancy firms is hiring former prisoners as part of the Government’s push to cut reoffending rates. 

Our reporter Adam Mawardi has the details:

KPMG UK has emerged as the first white-collar business to take on ex-offenders after joining a new scheme led by the Ministry of Justice. 

Underpinning the initiative is a push by the Government to get more companies recruiting former convicts amid an overcrowding crisis at British prisons. 

The professional services giant has already recruited its first group of former prisoners, who have joined a range of positions, including its technology department. 

Read how ex-offenders have described the auditor’s programme.

The FTSE 100 showed its “stamina” as it rose to a fresh record after a series of strong results from major companies.

The UK’s flagship stock index rose as much as 0.5pc to a new all-time pinnacle of 8,083.92, eclipsing the previous record that was set on Tuesday.

It is on track for its sixth consecutive session of gains, what would be its first such winning streak since August.

The stock index was led by consumer goods giant Reckitt Benckiser, which jumped 4.1pc after its quarterly sales growth beat analyst estimates.

The Dettol, Durex and Finish maker said it was on track to meet full-year revenue and profit targets.

Meanwhile, shares of mining giants such as Rio Tinto, Antofagasta and Glencore rose between 1.2pc and 3.1pc as prices of most metals climbed on the back of a weaker US dollar.

Lloyds Banking Group fell as much as 3.4pc after the country’s largest mortgage lender reported a 28pc slump in quarterly pre-tax profit as rising costs and intensifying competition in the mortgage market hurt income.

The mid-cap FTSE 250 was nearly flat at 19,791.21 points.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: “The UK market has demonstrated yet more stamina, with further gains achieved on what has already been a record-breaking week. 

“A slight cooling of Middle Eastern tensions, coupled with broad based corporate earnings optimism are both helping the FTSE.”

Kering shares tumbled after the luxury group warned that profit will plunge in the first half of the year amid slumping sales at Gucci.

The stock slid as much as 8.9pc in early trading in Paris to the lowest since 2018. 

Its shares have slumped 20pc year, in contrast to gains by luxury French rivals LVMH and Hermes International.

Kering is struggling to revive the fortunes of Gucci, which accounts for more than two-thirds of its operating profit. 

The luxury group last year named a new Gucci creative director, Sabato De Sarno, whose designs began entering stores in February. Kering has warned the turnaround will take time as the market for luxury goods cools.

Kering warned that recurring operating income will drop between 40pc and 45pc in the first six months of this year. 

Comparable sales at Gucci tumbled 18pc in the first quarter amid weak demand in China.

Ofcom has warned broadcasters using politicians as presenters that “the highest level of due impartiality applies during election periods” and breaches could result in “statutory sanctions”.

The regulator’s updated guidance comes after it found GB News in breach of broadcasting rules when three Conservative MPs acted as newsreaders across five different episodes of its programmes.

Ofcom’s probe involved shows presented by former House of Commons leader Sir Jacob Rees-Mogg, as well as minister without portfolio Esther McVey and backbencher Philip Davies, and the channel was warned about potential sanctions if there are further breaches.

Married couple Ms McVey and Mr Davies are no longer part of the GB News line-up.

Ofcom warned it is putting broadcasters “on notice to maintain due impartiality ahead of the general election”.

A statement said: “Broadcasters are reminded that Rule 6.6 of the Code prohibits candidates in UK elections from acting as news presenters, interviewers or presenters of any type of programme during the election period.”

Volvo said it expects good demand for its vehicles this year despite a blow from foreign exchange rates.

The Swedish car maker’s operating income for the first quarter fell to 4.7bn krona (£348.6m) from 5.1bn krona a year ago on the back of a decline in sales due to a negative foreign exchange rate and lower contract manufacturing sales.

However, its adjusted operating income, which excludes joint ventures, associates and one-offs, rose 8pc to 6.8bn krona (£504.3m).

Chief executive Jim Rowan said: “We expect demand for our cars to remain robust in coming quarters in line with our guidance of full-year sales volumes growth of at least 15pc.”

Mr Rowan has expressed confidence in the company’s ability to drive high electric vehicle (EV) margins despite industry data showing waning demand.

The company’s BEV (battery-electric vehicle) gross margins were 16pc in the quarter, a rise from the previous quarter’s figure of 13pc.

Consumer goods giant Reckitt revealed rising sales as it seeks to bounce back from a damaging US court ruling on its baby formula.

Increased sales volumes of brands like Dettol, Durex and Finish helped it improve revenues by 1.5pc to £3.7bn during the first three months of the year, which was higher than analysts had expected.

Chief executive Kris Licht is trying to revive growth after the company lost a US legal case claiming its baby formula contributed to the death of a premature child.

Shares have plunged by more than a quarter since an Illinois jury ruled Reckitt had failed to warn about the risks of necrotising enterocolitis (NEC) from its milk-based Enfamil Premature 24 product. 

Sales at its nutrition unit fell almost 10pc in the first quarter but shares were up 3.8pc in early trading. Mr Licht said: 

Following a period of price-led growth, we are now returning to a more balanced contribution from price, mix and volume. 

We grew volumes in many of our powerbrands in the quarter, including Lysol, Dettol, Durex and Finish, as well as our non-seasonal over-the-counter portfolio. 

In addition, we continue to benefit from carryover pricing and consumers trading up to our premium innovations.

The FTSE 100 has continued its record run at the open following rallies on Wall Street and in Asian trading amid strong corporate results.

The London stock market rallied to an all-time pinnacle of 8,083.92, eclipsing the previous record that was set on Tuesday.

The UK’s blue chip stock index was last up 0.4pc to 8,073.71, while the midcap FTSE 250 was flat at 19,805.20.

Abrdn’s boss said the money manager’s turnaround is “on track” after it revealed an increase in cash made available to invest by its clients.

The investment giant’s assets under management grew to £507.7bn during the first three months of the year, up 3pc on the previous quarter as markets improved and it received more customer funds.

On balance, customers put in an extra £800m, compared to a decline of £6.2bn in the first quarter of 2023.

Chief executive Stephen Bird said it had been “supported by a positive contribution from markets”. 

He said its Interactive Investor brand had enjoyed “continued organic growth in customers and flows”. He added: 

Our cost transformation programme is on track as we take action to sustainably restore our business to a more acceptable level of profitability. 

Our key focus, and our most important priority, is on delivering investment performance for all of our clients.

Imperial Leather maker PZ Cussons has unveiled plans to sell off its St Tropez self-tanning brand and is reviewing its African operations amid ongoing woes in Nigeria.

The Manchester-based group said that following a strategic review, it had decided to “refocus the group’s portfolio on where it can be most competitive”.

It will kick off a sale of the St Tropez business, bought by PZ for £62.5m in 2010, to an owner “better placed to capture the brand’s significant long-term potential”.

The group said that while it had made progress in boosting its performance across Africa, it is a “complex group of assets” and would therefore look at strategic options for the business.

PZ Cussons’s performance has been hit hard by extreme volatility in the Nigerian economy, where it has a major market and which represents more than a third of its total sales, with the firm having slumped to a £94.2 million loss in the half-year to December.

Lloyds Bank profits fell by a third due to lower interest rates and more competition for mortgages. 

Our reporter Michael Bow has the latest:

Lloyds made a £1.6bn pre-tax profit between January and March, which was slightly ahead of analyst forecasts but down 28pc from last year.

Underlying net interest income fell 10pc to £3.2bn as a key measure of its profitability fell from 3.22pc last year to 2.95pc, although it was a smaller drop than City forecasts. 

Higher levels of mortgage refinancing led to more churn in Lloyds mortgage book. 

Chief executive Charlie Nunn said: “The group is continuing to deliver in line with expectations in the first quarter of 2024, with solid net income, cost discipline and strong asset quality. Our performance provides us with further confidence around our strategic ambitions and 2024 and 2026 guidance.”

Lloyds said it took no further charges related to the potential impact of the motor finance by the Financial Conduct Authority.

The bank booked a £450m provision related to the possible costs of the redress scheme in February. 

Lloyds is the first of the major UK retail banks to report first quarter earnings. Barclays and Natwest will reveal results tomorrow and Friday before HSBC reports next week.

Heathrow airport bosses have urged the Chancellor to rethink the “anti-growth” tourist tax to boost Britain’s economy after the winter recession.

Europe’s largest airport called on Jeremy Hunt to reintroduce VAT-free shopping for tourists to inject fresh momentum into the economy.

Data from Visit Britain showed that spending by overseas visitors was down 10pc in real terms in the third quarter of 2023 compared to the same period four years earlier, just before the pandemic.

The airport said: “Ministers should rethink anti-growth policies like the “tourist tax” that discourage international visitors from spending in the UK; and unnecessary travel visas for transiting passengers that risk the UK’s global connectivity and Heathrow’s hub status. 

“A supportive policy environment for aviation would deliver a much-needed economic boost by encouraging people to visit, spend and do business here in the UK.”

Heathrow revealed it returned to profit as a record 18.5m passengers travelled through the airport during the first three months of the year.

It made pre-tax earnings of £189m during the first quarter, compared to a loss of £60m during the same period last year, and has raised its forecast for the total number of travellers using the hub this year to 82.4m.

Revenues were down slightly to £808m.

Chief financial officer Javier Echave, who will become its new chief operating officer, said:

It has been a successful start to the year thanks to colleagues delivering a consistent, reliable service to our passengers. 

As I close the chapter on eight years as CFO, I’m proud that Heathrow is on a strong financial footing with a clear flightpath ahead. 

On the horizon is Heathrow’s busiest summer yet with more passengers and destinations served than ever before. We’re ready to continue delivering.

Thanks for joining me. Heathrow airport has urged Chancellor Jeremy Hunt to scrap the tourism tax to help boost the economy.

The airport criticised the “anti-growth” policy of charging VAT to overseas visitors as it revealed record passenger numbers and a return to profit.

5 things to start your day 

1) Tesla to speed up rollout of cheaper electric cars | Carmaker reported its biggest drop in sales in more than a decade

2) FTSE 100 closes at fresh record high amid warning over rate cuts | It follows concerns the City has been overzealous in its forecasts about rate cuts

3) Baltimore Bridge collapse ship owner invokes pre-US Civil War law used when the Titanic sank | Singaporean company plots to cut its liabilities from up to $3bn to $43m

4) Big marshmallows are not sweets, rules judge | Products are not designed to be eaten on the go and are exempt from VAT, tribunal finds

5) Thames Water plans £2bn shareholder payouts despite threat of collapse | Troubled supplier plans to hand dividend to parent company to cover debt costs

What happened overnight 

Asian shares rose after US stocks rallied for a second straight day on Tuesday, blunting the blow from what’s been a rough April.

Tokyo stocks ended sharply higher, with the benchmark Nikkei 225 index up 2.4pc, or 907.92 points, to end at 38,460.08, while the broader Topix index added 1.7pc, or 44.50 points, to 2,710.73.

Australia’s S&P/ASX 200 index rose 0.3pc to 7,705.70 following the release of a fifth consecutive quarter of decelerating inflation, with the consumer price index in the first quarter easing to 3.6pc from previous 4.1pc.

In South Korea, the Kospi added 1.9pc to 2,672.87, led by a 3.8pc gain in heavyweight Samsung Electronics.

The Hang Seng in Hong Kong added 1.3pc to 17,053.06, while the Hang Seng Tech Index gained 2.7pc. The Shanghai Composite index was up 0.2pc at 3,026.88.

Elsewhere in Asia, Taiwan’s Taiex gained 2.3pc.

Wall Street stocks rallied for a second straight day on Tuesday, building on the prior day’s momentum following a round of strong corporate earnings.

The S&P 500 rose 59.95 points to 5,070.55. The Dow Jones Industrial Average gained 263.71 to 38,503.69, and the Nasdaq composite jumped 245.33 to 15,696.64.