Elon Musk hit back at Britain on Thursday after reports that he had not been invited to the country's upcoming investment summit, alleging the government was releasing convicted paedophiles while imprisoning people over social media posts.

Reuters has the details...

The BBC reported that the US billionaire had not been invited to the summit next month after his posts on his X platform regarding the violent, racist anti-immigration riots in Britain last month.

Britain's Department for Business and Trade and the Treasury did not respond to requests for comment on either the BBC report or Musk's response.

"I don't think anyone should go to the UK when they're releasing convicted paedophiles in order to imprison people for social media posts," Musk said on X in response to a post on the BBC report.

More than 1,700 prisoners were released early this month in an effort by prime minister Keir Starmer's Labour government to tackle overcrowding in prisons in England and Wales. Those serving sentences for sex offences were not included in the scheme.

The government and others criticised Musk, who has nearly 200 million followers on X, for his posts on Britain in August, including one saying civil war was "inevitable", as the country was shaken by riots that saw far-right groups attack hotels housing asylum seekers and mosques.

The number of Americans applying for unemployment benefits last week fell to the lowest level in four months.

According to the US Labour Department, applications for jobless claims fell by 4,000 to 218,000 for the week of 21 September.

It was the fewest since the middle of May and less than the 224,000 analysts were expecting. Meanwhile, last week’s figure was revised upwards by 3,000.

The four-week average of claims fell by 3,500 to 224,750, it added.

Weekly filings for unemployment benefits have fallen two straight weeks after rising modestly higher starting in late spring.

Wall Street stocks have hit a fresh record high today with the S&P 500 index is up more than 0.6% after the bell.

Shares in Meta (META) rose on Wednesday as the company revealed its latest augmented reality (AR) glasses during its annual developer conference. CEO Mark Zuckerberg showcased a prototype of the new glasses, named Orion, marking the next phase of Meta's push into wearable technology.

The Orion glasses are designed to project digital images of media, people, games, and communications into the real world, offering an immersive blend of physical and digital experiences. Zuckerberg framed the product as part of Meta’s broader strategy to transition from desktops and smartphones toward eyewear capable of performing similar tasks.

“A lot of people have said this is the craziest technology they’ve ever seen,” Zuckerberg said during his keynote speech, wearing a shirt emblazoned with “Aut Zuck aut nihil,” an adaptation of Julius Caesar’s Latin motto meaning “Either Zuck or nothing.”

A pre-recorded demo highlighted the glasses' capabilities, including users playing a virtual Pong game and conducting video chats through augmented reality.

Meta also doubled down on its artificial intelligence ambitions at the event, unveiling new products and features for its AI chatbot, Meta AI. The bot will generate personalised images automatically for users, integrating these AI creations into Facebook and Instagram feeds, the company announced.

Additionally, Meta introduced a major upgrade to Meta AI, which will respond to voice commands. Users can also choose from celebrity voices, including Dame Judi Dench, John Cena, Keegan-Michael Key, Kristen Bell, and Awkwafina.

“I think that voice is going to be a way more natural way of interacting with AI than text,” Zuckerberg said, highlighting the company’s vision for a more intuitive user experience as AI technology becomes more integrated into daily life.

The US economy grew faster than rival Western economies in the second quarter of this year, coming in at 3% according to new data.

The figures were a confirmation that real US GDP increased at that annualised rate in the April-June quarter.

This is the equivalent of quarterly growth of 0.75%, faster than the UK’s 0.6%, or the 0.2% recorded in the eurozone.

The US Bureau of Economic Analysis reported that the increase in GDP was due to higher consumer spending, private inventory investment, and non-residential fixed investment.

Sticking with commodity updates...

Sterling (GBPUSD=X) regained positive momentum against the US dollar during the Asian trading session on Thursday, partially reversing the sharp overnight retracement from its high of 1.3430 — the strongest level since March 2022.

The GBP/USD pair was trading at 1.2248 at the time of writing, marking a modest daily rise of 0.2%. Analysts suggest the pair is well-positioned to continue the uptrend seen over the past two weeks.

Goldman Sachs revised its forecasts for the pound, citing economic resilience in the UK and a reassessment of the US dollar’s prospects. Kamakshya Trivedi, head of global FX strategy at Goldman Sachs in London, said: "Sterling is currently supported both by its risk beta and the UK’s solid growth momentum, along with a patient approach from the Bank of England."

The price of gold has climbed to a new record high today, trading as high as $2,679.99 per ounce today, meaning it has gained around 30% so far this year. Silver is also rallying, hitting its highest since late 2012.

It comes as weak US economic data bolstered expectations for deeper Federal Reserve rate cuts.

Market sentiment is shifting toward increased chances of further Fed rate cuts, with swaps traders now betting on more than three-quarters of a percentage point of easing by the end of the year. Gold and silver typically benefit from lower interest rates, as they provide no yield, while a weaker US dollar makes these metals more affordable for global buyers.

Precious metals prices have been pushed higher by the weakness of the US dollar, which has fallen as the US Federal Reserve cut interest rates sharply this month.

David Morrison, senior market analyst at Trade Nation, said September is turning out to be a good month for gold.

The price of gold is up nearly 30% year to date, analysts note — outpacing the benchmark S&P 500’s (^GSPC) roughly 20% gain since the start of 2024.

Prezzo has appointed former BrewDog executive James Brown as its new boss.

Brown has joined as the Italian restaurant chain's chief executive, replacing Dean Challenger who will return to his previous role of finance chief.

The company said the new appointment would steer a new phase of growth since returning to profitability earlier this year.

Bitcoin’s (BTC-USD) price was largely flat on Thursday, posting a modest 3% gain over the past week despite supportive macroeconomic conditions, including China’s recent stimulus measures and a US Federal Reserve rate cut. However, analysts are optimistic about a potential rally in October and throughout the fourth quarter of 2024.

The price of bitcoin stood at $63,850 (£47,867) on Thursday, according to data from CoinGecko.

Historical data indicates that bitcoin often performs well in October, with average returns of plus 22.9% and median returns of plus 27.7% since 2013, Bitfinex analysts said.

“October has typically been a strong month for bitcoin, with only two negative closes in 2014 and 2018, both of which were during bear markets following red September closes,” they told Yahoo Finance UK.

Bitcoin is up around 7.8% for the month of September.

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Pub chain Mitchells & Butlers (MAB.L), which runs All Bar One Toby Carvery, Harvester, and Miller & Carter, has warned that the UK riots hit trading over the summer.

Like-for-like sales growth slowed in the fourth quarter in the year to 2.5% compared with 7.7% in the first quarter, it said.

This was in part caused by the disruption caused by the anti-immigration riots and protests in cities during August, as well as wet weather and slower inflation.

Sales growth over the 51 weeks to 21 September came in at 5.2%.

Chief executive Phil Urban, said:

Energy and broadband customers lost an estimated £298m and 27.3 million hours to poor customer service in a year, watchdog Which? has estimated.

Around 8.9 million energy consumers and 9.2 million broadband consumers also experienced emotional harm as a result of poor customer service, Which? said, based on its survey of more than 4,000 people.

Among energy customers, 17% who had contacted their provider said they gave up trying to get their problem resolved due to the issues they experienced with customer service, while 32% of these consumers said they were left financially worse off at an average of £137 as a result.

In total, Which? estimated that 1.2 million energy customers were left £166 million worse off due to customer service issues forcing them to give up trying to get their issue resolved.

In the broadband sector, 14% of those who contacted their broadband provider said they gave up seeking a resolution due to problems they experienced with customer service. Some 29% of this group claimed to be left financially worse off at an average of £93.

In total, Which? estimated that 950,000 consumers were £89 million worse off due to giving up contacting their broadband provider.

Here's a quick update on what's happening in equity markets today...

• Drinks maker Diageo (DGE.L) shot to the top of the FTSE 100 as it maintained guidance amid a "challenging" global environment for the industry. In a brief trading statement ahead of its annual general meeting, chief executive Debra Crew said consumers continued to be "cautious". Diageo in July reported a drop in full-year organic operating profit as it pointed to a weaker performance in Latin America and the Caribbean.

• Heavily-weighted miners rose on the China boost, with Anglo American (AAL.L), Glencore (GLEN.L), Rio Tinto (RIO.L) and Antofagasta (ANTO.L) all up.

• Luxury stocks were also lifted by the China news, with Burberry (BRBY.L) and Watches of Switzerland (WOSG.L) sharply higher. WOSG was also benefiting from an upgrade to 'buy' at Deutsche Bank.

• Halma (HLMA.L) gained after it backed its guidance for the full year as it said further progress was made in the first half in trading conditions "which remain varied across our end markets".

• On the downside, oil giants BP (BP.L) and Shell (SHEL.L) gushed lower amid weaker oil prices, following reports that Saudi Arabia could be lifting its output. Shell was also hit by a downgrade to 'neutral' at Oddo.

• British American Tobacco (BATS.L), Barratt Developments (BDEV.L) and Petershill Partners (PHLL.L) all fell as they traded without entitlement to the dividend.

Germany’s economy is set to shrink slightly this year, according to a new forecast from the country’s leading economic research institutes.

The Joint Economic Forecast Project Group have estimated that GDP in Europe's largest economy will decline by 0.1% during 2024.

Six months ago, they predicted it would grow by 0.1%, but have lowered that forecast following signs that the economy is struggling. For 2025, they cut growth forecast to 0.8%, down from 1.4% expected before.

The DIW, Ifo, IfW Kiel, IWH and RWI said: “The German economy has been stagnating for more than two years.

“A slow recovery is likely to set in next year, but economic growth will not return to its pre-coronavirus trend for the foreseeable future.”

Switzerland’s central bank has cut its key interest rate by a quarter of a percentage point for the third time this year.

After similar cuts in March and June, the Swiss National Bank brought the rate down to 1% as it battles with the increasing strength of the Swiss franc.

It also indicated that further reductions may be coming down the line.

The move comes two weeks after the European Central Bank lowered its key rates.

The SNB said:

And sticking with corporate news this morning...

H&M (HM-B.ST) has announced that its profits were lower than expected after sales were hit by a washout summer in Europe.

The Swedish retailer said that its operating margin will be lower than its target of 10 this year following cold weather across the continent in June.

Operating profit for the third quarter hit 3.5bn Swedish krona (£259m), which was well below analyst forecasts of 4.6bn krona (£341m).

Chief executive Daniel Ervér said it had also been hit by consumers’ living costs, which “have remained high during the year”.

Supermarket group Morrisons has agreed a £331m property deal as part of efforts to slash its significant debt pile.

The private equity-owned retailer said on Thursday that it expects to complete the “ground rent financing” deal around 2 October.

It said Morrisons will sell 76 properties to an undisclosed business, before these are then leased back to the retail firm. Sky News reported that real estate investor Song Capital is the buyer.

Morrisons was bought by US private equity firm Clayton, Dubilier & Rice in 2022 for £7bn and is the fifth-largest supermarket chain in Britain.

It most recently reported a debt burden of about £4bn, although this is down significantly from a peak of £6.2 bn.

The latest market insight from Foxtons has revealed that with the autumn statement on the horizon, the property market is still bearing scars two years on from the disastrous Liz Truss mini budget.

The research shows that: -

• In the 12 months leading up to the mini budget (September 2021 to August 2022), there were 821,892 total mortgage approvals seen across the UK property market.

• A total of 1,277,320 property transactions also took place during this period, with the average UK house price increasing by 8.3%.

• However, in the 12 months that followed (September 2022 to August 2023) the total number of mortgage approvals seen fell to 593,394 - a drop of 27.8%.

• Transactional volumes also dropped by 13.3% to 1,107,720 and, as a result of this reduced level of market activity, the average UK house price fell by 1.8%.

• The negative impact of the mini budget on the property market is still apparent today, as over the last 11 months (September 2023 to July 2024 - latest available), just 941,300 transactions have been completed across the UK .

But despite the market still bearing scars plenty of signs of property market positivity have emerged over the last year.

Buyers are returning to the market in confidence, spurred by greater certainty due to a hold on interest rates since August of last year, with the first base rate reduction in four years seen this August just gone, further boosting market sentiment.

As a result, the total number of mortgage approvals seen over the last 11 months sits at 617,266, a 4% increase on the 12 months that followed the mini budget, albeit still some way off the pace of the market seen in the 12 months leading up to it.

Also the average UK house price has increased by 2.3% over the last 11 months alone, versus the 1.8% decline seen in the 12 months that followed the mini budget.

UK car productions fell for the sixth consecutive month in August thanks to summer shutdowns and factories prepping to switch to newer models.

A total of 41,271 new cars rolled off production lines, down 8.4% from last year, the Society of Motor Manufacturers and Traders (SMMT) said. It was 3,781 fewer than last August.

Battery electric, plug-in hybrid and hybrid production for the month fell by 25% but the decline is expected to be reversed as new models come on stream.

Production for the domestic market fell by almost a fifth while exports were down by 5.9%.

Mike Hawes, SMMT chief executive, said:

UK consumer confidence has been hit by fears over the upcoming budget, and the government’s gloomy warnings.

According to the British Retail Consortium (BRC), households’ assessment of the general economic situation over the next three months has slumped this month while people are also more worried about their personal financial situation.

The BRC’s measure of households’ assessment of the general economic situation over the next three months sank to -21 this month from -8 in August.

• Personal financial situation worsened to -6 in September, down from +1 in August.

• State of the economy worsened significantly to -21 in September, down from -8 in August.

• Personal spending on retail, improved slightly to -8 in September, up from -9 in August.

• Personal spending overall fell to +10 in September, down from +11 in August.

• Personal saving fell to -9 in September, down from -4 in August.

Older people’s confidence in economic outlook has taken a particular blow, the BRC said.

Helen Dickinson, chief executive of the British Retail Consortium, said:

This is the second survey in less than a week to show a slide in consumer optimism this month.

Last Friday, market research group GfK reported that consumer confidence in the UK has fallen to its lowest since March, amid growing concerns over government plans for a “painful” budget.

Shares in Asia rose overnight with the Nikkei (^N225) surging 2.8% on the day in Japan, while the Hang Seng (^HSI) soared 4.1% in Hong Kong. The Shanghai Composite (000001.SS) was 3.6% up by the end of the session.

The positive sentiment came after a raft of economy-boosting measures by China and an announcement that the government plans to give cash handouts or discount vouchers to the poor ahead of next week’s National Day holidays.

While subsidies to ordinary people are uncommon, the ruling Communist party sometimes marks special occasions with payments to families in difficulty.

The amount of the payments was not specified but they may help address a weak point for the economy which is faltering consumer spending.

Oil prices also advanced overnight.

On Wall Street, the Dow Jones Industrial Average (^DJI) fell 0.7%, to 41,914.75, the S&P 500 (^GSPC) fell 0.2%, to 5,722.26, and the Nasdaq Composite (^IXIC) was almost flat, closing at 18,082.21.

In the bond market, the yield on 10-year US Treasury notes, which influences investment decisions around the world, was 3.79% from 3.74% a day earlier.

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

Here's a quick look at what's on the agenda for today:

• 7am: Trading updates: Pennon, Mitchells and Butlers, Zoo Digital, Aviation,

• 7am: German consumer sentiment report from GfK

• 9am: EU M3 Money Supply

• 1.30pm: US GDP report for Q2 2024 (final reading)

• 2.30pm: ECB president Christine Lagarde speech at a conference in Frankfurt on “New Frontiers in Macroprudential Policy”

• 2.20pm: Federal Reserve chair Jerome Powell to speak at the 2024 US Treasury Market Conference in New York

• 3pm: US Pending Home Sales