Business News Live: Novo Nordisk Struggles as Ozempic Sales Slow, Tesla Shareholders Sue Musk Over Robotaxi

Tesla Shareholders Sue Elon Musk Over Robotaxi Claims

Tesla shareholders have initiated a class-action lawsuit against both the company and its CEO, Elon Musk, over the firm’s Robotaxi plans. The legal action alleges that Musk and Tesla committed securities fraud by concealing risks associated with their self-driving vehicles. According to reports, Musk has allegedly overstated the effectiveness and future potential of these cars on multiple occasions. Following the release of test results, Tesla's share price dropped more than 6 percent. While the company emphasizes its focus on "scalable and safe deployment across diverse geographies and use cases," it has yet to secure permission for rolling out Robotaxis across the United States.

Metro Bank Reports Strong Half-Year Performance

Metro Bank reported half-year profits of £45 million, with revenues increasing by 22% compared to the same period last year and operating costs decreasing by 8%. Daniel Frumkin, CEO of Metro Bank, highlighted the bank's strong performance as a result of successful strategy execution and decisive actions taken. He noted that profits were trebled, new lending to corporate, commercial, and SME customers doubled, and operating costs were significantly reduced. Additionally, funding was optimized to achieve the lowest cost of deposits among UK high street banks. As the bank celebrates its 15th anniversary, its unique relationship-led model, specialist lending expertise, and expanding store network continue to support customer growth and business development.

Why Musk’s $29 Billion Tesla Payout Is a Blessing in Disguise

Despite the seemingly extravagant nature of this bonus, it is seen as a positive sign that Musk is shifting his focus away from politics and returning to his core responsibilities at Tesla. This move is welcomed by many, as it signals a commitment to the company's long-term success. Analysts believe that such a payout can help stabilize Musk's position and ensure his continued leadership at Tesla, which is crucial for the company's ongoing innovation and growth.

Interest Rates: Affordable Credit Remains Out of Reach for Millions

The Bank of England is expected to cut interest rates during its upcoming meeting. However, while this could have immediate impacts such as lowering savings rates and potentially altering the mortgage market, it is unlikely to provide significant relief to households facing high living costs. Tamsin Powell, a consumer finance expert at Creditspring, emphasized that even if interest rates begin to fall, affordable credit will remain out of reach for millions of people. She stressed the importance of improving access to fair financial support and enhancing money literacy, especially for younger individuals and those new to borrowing.

FTSE 100 Rises After Opening - Hiscox Up 8%

The FTSE 100 rose by 0.16% in the morning, with Hiscox leading the way by surging more than 8% due to increased buyback levels amid positive results. European stocks also saw gains, with Germany’s DAX leading the way by rising 0.56% early in the session.

Guinness Helps Wetherspoons Thrive – So Why Is Its Parent Company Struggling?

Guinness sales are experiencing a surge, contributing significantly to the revenue of Wetherspoons. Despite this success, the parent company of Guinness is struggling financially. Analysts suggest that while the brand is performing well, the company itself is facing challenges that need to be addressed to maintain its position in the market.

First-Time Buyers Reliance on Parents for Deposits Revealed

A new survey by TSB revealed that the majority of first-time buyers require financial assistance from parents or friends to afford a deposit. The research found that 96% of new homeowners received some form of help, with 68% receiving support from parents. Additionally, 80% of first-time buyers had to move back into their childhood homes to save up for a deposit.

Legal & General Shares Drop Despite Higher Profits

Legal & General announced higher profits but experienced a drop in share price. Richard Hunter, head of markets at interactive investor, noted that while the company's performance is impressive, heightened expectations have weighed on the share price. He pointed out that the group's financial strength enables a target of £5 billion in dividends and buybacks over the next three years, making the stock an attractive income option for investors.

Lidl Steals Aldi’s Supermarket Crown

Lidl has reclaimed the title of the UK’s cheapest supermarket, according to price analysis by Which?. The change in rankings highlights the competitive nature of the supermarket industry and the ongoing efforts to offer consumers the best deals.

Think Tank Advises Rachel Reeves to Raise Taxes to Cover £40bn Hole

Rachel Reeves has been advised by a think tank to raise taxes significantly to address a £40 billion government spending shortfall. The report suggests that moderate but sustained tax increases are necessary to bridge the financial gap, with a proposed rise of 5p in the pound on basic and higher tax rates.

Stock Markets Face Mix of Trade Talks, Financial Reports, and More

The FTSE 100 is up 0.22% so far, but global markets are closely watching trade talks, oil prices, and financial reports from major US firms. Analysts highlight the importance of trade discussions with China and the impact of potential tariff agreements on market movements.

Glencore Set to Stay on London Stock Exchange – But Debt Grows

Glencore, a mining firm with a £35 billion valuation, has decided to remain on the London Stock Exchange despite exploring alternatives in the past. The decision comes as the company faces uncertainty regarding its inclusion in the S&P 500 and the high costs associated with a potential move to the US. In addition to staying in London, Glencore announced a $1 billion cost-cutting drive and net losses due to declining commodity prices.

BrewDog Advert Banned Over Alcohol Misuse Claim

A poster for BrewDog’s Wingman beer was banned by the advertising watchdog for suggesting that alcohol could overcome disappointment. The advertisement featured the headline “Brewdog. Always Got Your Back,” which was deemed inappropriate.

Novo Nordisk Sees Sales Slow in Ozempic and Diabetes Drugs

Danish drugmaker Novo Nordisk experienced a slowdown in sales growth for its injectable diabetes drugs, including Ozempic. However, obesity drugs like Wegovy saw significant growth, with profits before tax rising 24%. The company revised its growth expectations downward, leading to a substantial drop in share price.

Aldi Loses Title of UK’s Cheapest Supermarket

Aldi lost its title as the UK’s cheapest supermarket after price analysis by Which? showed that a rival supermarket offered slightly lower prices. This shift highlights the dynamic nature of the supermarket industry and the constant competition for consumer dollars.

Boost for London Stock Exchange as £35bn Mining Company U-turns on Move to US

Glencore, a mining firm with a £35 billion valuation, reversed its potential departure from the London Stock Exchange, providing a boost to domestic stock markets. The company’s decision to stay in London was influenced by concerns over its inclusion in the S&P 500 and the high costs of moving to the US.

Will Interest Rates Be Cut Tomorrow?

The Bank of England’s next meeting to determine interest rates is scheduled for Thursday, 7 August. Analysts are closely watching the Monetary Policy Committee (MPC) to see if they will continue lowering rates. The base rate, currently at 4.25%, impacts consumers and taxpayers through everything from mortgages to savings.

Claire’s Stores Face Uncertain Future After US Owner Files for Bankruptcy

Claire’s Accessories faces an uncertain future on UK high streets after its US parent company filed for bankruptcy. The fashion accessories and jewellery business has filed for Chapter 11 bankruptcy, marking the second time the group has declared bankruptcy. The company has faced financial challenges due to weak consumer demand and supply chain issues.

Interest Rates: Third Bank of England Cut on the Agenda?

The MPC is set to meet on Thursday, with plenty of expectation resting on a 25 basis point cut. If implemented, this would bring the base rate down to 3.75% by year-end. Most economists predict a further cut in November, but the decision for August remains uncertain.

Warning Over Rise in UK State Pension Age

An industry expert has warned that the state pension age may need to rise to 80 without dramatic reforms, citing concerns about the affordability of the nationwide bill as life expectancy increases.

Readers Weigh in on Reeves’ Fiscal Trilemma

Community members are divided on how Rachel Reeves should resolve her fiscal trilemma, with opinions ranging from raising taxes, cutting spending, relaxing borrowing rules, or boosting growth through closer EU ties.

Disney Posts Solid Results

Disney produced a solid set of results, with key areas of the business beating market expectations. Revenues in the Parks business were up 8% due to the timing of Easter and increased capacity with cruise ships. The international parks also delivered good growth, and Disney+ performed better than expected in terms of profit. However, linear television continues to decline, posing challenges for the entertainment division.

FTSE 100 Still Up, US Stocks Rise

The FTSE 100 is up 0.21% for Wednesday, with US stocks also showing gains. The S&P 500 is up 0.5% for the day, while European stocks are mainly up, matching London’s main index or slightly lower.