Labour urges government to protect Morrisons in potential private equity takeover And finally.... the Labour party has urged the UK government to step in to ensure a potential private equity takeover of supermarket chain Morrisons does not affect Britain’s food security, damage farming, or lead to job losses, my colleague Rob Davies reports. Opposition MPs said ministers must be ready to prevent the Bradford-based company falling victim to the kind of asset-stripping often associated with private equity buyers, who typically look to make their targets more efficient, before selling at a profit. They raised concerns about the effect a deal would have on jobs, as well as the future of its nationwide network of meat, poultry, and fruit and vegetable facilities, which play a significant role in getting food to UK tables. Morrisons’ food processing operations include a fish supplier in the Camborne and Redruth constituency of George Eustice, who has responsibility for food security as the secretary of state at the Department for Environment, Food and Rural Affairs. Luke Pollard, the shadow Defra minister, said: “Morrisons isn’t just a big supermarket, it is also an important food producer. “Government must ensure in the event of a takeover that jobs are protected, the business isn’t broken apart and that our nation’s food security is protected.” Over on Wall Street, the Nasdaq hit an intra-day record high, as major tech firms rally. Amazon.com Inc are up 1.7%, while Microsoft climbed 0.8% to an intra-day record. Apple are up 0.75% and Facebook are up 1.5%, although Alphabet/Google are flat after the EU opened an antitrust probe into its online advertising technology business. These growth stocks have been back in demand, since the Federal Reserve predicted earlier interest rate rises, but also reiterated that it expects inflationary pressures to be temporary. Here’s Reuters’ take: So-called value stocks, expected to benefit from the economic recovery, have outperformed in 2021, while growth stocks, including major tech names like Apple and Nvidia, have rallied since the Fed last week took a stance on future rate hikes viewed by many as more aggressive than expected. The S&P growth index has added over 1% since before the Fed last Wednesday projected an accelerated timetable for interest rate increases, compared to a nearly 2% drop in the value index “The market was caught off guard regarding the Fed’s hawkish commentary, and that’s 100% of what is happening,” said Andrew Mies, chief investment officer of 6 Meridian. “All the smart people were surprised about how hawkish the Fed was, and now they are adjusting their portfolios.” Full story: British industry’s output now at record growth levels British factories enjoyed the strongest growth in output on record in June but warned they expected to raise their prices at the fastest pace in nearly 40 years in response to a shortage of key components and materials. The Confederation of British Industry said its quarterly survey of manufacturing showed that the rebound across the sector was gaining momentum going into the autumn. The business lobby group said that with Europe, the US, China and much of Asia lifting coronavirus restrictions, its monthly index of industrial output growth over the past three months had set a blistering pace – to reach the highest since the survey began in 1975. In the eurozone, consumer confidence has continued to recover as economies reopen, and Covid-19 vaccinations continue. The ‘flash’ reading of consumer morale this month rose by 1.8 points to -3.3. It suggests optimism is rising, despite the rise of the Delta variant that delayed the end of lockdown restrictions in the UK. Bert Colijn of ING says confidence is now above pre-pandemic levels and getting close to all-time highs. This suggests little consumer restraint upon the reopening of economies and confirms our optimism about the recovery in domestic demand over the coming quarters Travel industry accuses UK government of neglect in its ‘darkest hour’ Travel industry leaders have hit out at the government for “looking away during its darkest hour”, accusing ministers of inflicting additional damage on businesses left on the brink by the pandemic. Organisations throughout tourism and aviation will join a “travel day of action” on Wednesday to call for the safe reopening of travel, highlighting the impact of Covid restrictions and appealing for more financial help. Events are planned outside the parliaments in London and Edinburgh, and in cities and airports around the UK. The chief executive of the travel association Abta, Mark Tanzer, said while other countries had singled out the sectors for help, UK firms’ hopes had been dashed at the beginning of the “most crucial summer season in living memory”. Speaking at a virtual conference, Tanzer said the green list destinations, where travel was permitted under the “traffic light” system, accounted for less than 0.5% of UK outbound tourism. He criticised the government for describing closed borders as an opportunity for domestic stays, saying: “The language of ‘embracing an opportunity’ will be as a dagger to the heart of many travel agents and tour operators who are fighting for their very survival.” The nation’s online shopping habit is causing a cardboard shortage as empty delivery boxes are hoarded in homes or stuck in council recycling bins. UK households have amassed 135m cardboard boxes during the pandemic, keeping valuable raw material out of the recycling chain and pushing up packaging prices, according to packaging specialist DS Smith. “People are consuming a lot more at home than they have in the past because of the lockdowns,” said Miles Roberts, DS Smith’s chief executive. “So there is a lot more packaging that’s ended up in the home.” Pre-pandemic, when most deliveries were made in bulk to high street shops and restaurants, packaging found its way quickly back into the system via recycling firms. But DS Smith, whose big customers include Amazon and consumer goods companies such as Nestlé and Unilever, is now at the mercy of consumers and their council’s recycling policy – amid a big shift to online shopping that looks set to be permanent..... World gained 5.2m millionaires last year in Covid crisis – report Kalyeena Makortoff The global wealth gap widened during the Covid pandemic, swelling the ranks of the world’s millionaires by 5.2 million as the rich cashed in on surging stock and house prices. The figures, detailed in the annual Credit Suisse Global Wealth Report, capture how emergency interest rate cuts and government stimulus measures often benefited those least in need of state support, helping their assets grow in value despite the economic downturn. Dollar millionaires now account for more than 1% of the global population for the first time in history. The figures show that 56.1 million individuals had assets worth more than $1m (£720m) in 2020. In the City, the FTSE 100 has closed nearly 28 points higher at 7090, up 0.4% today. The market was calmer after last Friday’s losses (caused by concerns that rising inflation could trigger early interest rate rises). Commercial property firms British Land (+4.7%) and Land Securities (+3.2%) held their place as top risers, after JPMorgan upgraded their ratings on the pair to overweight, on expectations of a recovery in the sector when the economy reopens. There was also a report in React News that British Land was in talks to sell its stake in Paddington Central, in London. Bitcoin’s volatility is also weighing on MicroStrategy, the enterprise software company that has been buying heavily into crypto. Yesterday, MicroStrategy reported that it now owns more than 100,000 bitcoins after completing another purchase round, giving it an average price of $26,080. The company, whose CEO Michael Saylor has been a vocal supporter of bitcoin, has been amassing them since last August (when the price was around $12,000), and has recently issued bonds to fund these purchases. This has rather tied MicroStrategy’s fortunes to bitcoin. The company’s shares fell over 10% in early trading, but have clawed their way back, now down 4% as bitcoin recovered. Michael Hewson of CMC Markets explains: The fall in bitcoin below the $30k level has seen MicroStrategy shares come under further pressure falling for the second day in succession over concerns that it may have to write down the value of its holdings in the cryptocurrency by several million dollars. The rebound continues. Bitcoin is now back at $32,600, roughly where it began today’s session, after plunging to its lowest point since January. Nordgold postpones IPO, blames volatility Russia-focused gold miner Nordgold has postponed plans to float on the London Stock Exchange. Nikolai Zelenski, chief executive officer of Nordgold, said it wasn’t sensible to press on, given recent volatility in the resources sector caused by the prospect of earlier interest rate rises. “Recent central bank comments indicating an acceleration in expected interest rate rises have created significant uncertainty and volatility in the resources sector, in particular impacting gold and gold equities. Nordgold has determined that it would therefore not be sensible to pursue an IPO at this particular juncture. I would like to thank the many prospective shareholders for their interest and support over the last four weeks. The company operates nine gold mines -- four in Russia, three in Burkina Faso and one each in Guinea and Kazakhstan Nordgold announced on 10th June that it planned an initial public offering (IPO) of its shares on the London stock market, which reportedly could have targeted a value of $5bn. But the gold price has fallen sharply since, from around $1,890 per ounce to $1,775 today. The selloff was driven by last week’s Federal Reserve meeting, where officials predicted US rates might rise in 2023, a year earlier than previously. That sent the US dollar surging, and hit commodity and precious metal prices, with gold hitting a six-week low. Bitcoin has now risen back over the $30,000 mark, recovering some ground after hitting its lowest level since January. It’s back over $31,000, so still down over 4% today....