BP begins costs review as quarterly profits of £1.77bn beat forecast

The oil and gas group BP is launching a fresh cost-cutting scheme, despite reporting better-than-expected profits, as it tries to do more for its shareholders to fend off pressure from activist investors.The fossil fuel company said it would begin a fresh review of its business when its new chair, Albert Manifold, joins the board in September.BP reported a rise in profits to $2.35bn (£1.77bn) between April and June, a drop of 15% on the same period a year earlier when the company benefited from higher oil and gas prices

Chinese carmakers led by BYD report big rises in UK sales in July

Chinese carmakers led by BYD reported big jumps in UK sales last month, despite a declining overall car market, including a 59% slump in sales from their electric vehicle rival Tesla.BYD sales quadrupled year on year to reach 3,200 in July, even as overall sales of all types of car declined by 5% to 140,000, according to data published on Tuesday by the Society of Motor Manufacturers and Traders (SMMT), a lobby group.The car industry has said it is struggling with a weak economy, which is holding back consumer spending.At the same time, carmakers are waiting for clarity on which models will be eligible for subsidies of up to £3,750 under a new grant scheme announced by the UK government last month. The government on Tuesday said that four Citroën models would be eligible for the grant

UK services sector has biggest fall in orders for nearly three years

The UK’s dominant service sector has reported its biggest drop in new orders in almost three years in July, adding to pressure on the Bank of England to cut interest rates on Thursday.Sounding the alarm over a loss of momentum amid a worsening global economic backdrop, the data provider S&P Global Market Intelligence said total new work in the sector, which accounts for about 80% of the economy, eased to the slowest pace since November 2022.The survey of 650 companies in the sector, which includes finance, IT, communications and property but excludes retail, is closely watched by the Bank and the government for early warning signs from the economy.Threadneedle Street is widely expected to cut borrowing costs at its next policy meeting on Thursday from the current level of 4.25% amid growing concerns about the strength of the economy

Domino’s Pizza profits dive as people cut back on takeaways in UK

Domino’s Pizza said the takeaway market had “become tougher” as it blamed weaker consumer confidence in the run-up to the autumn budget and rising wage costs for lower-than-expected sales and a slump in profits.After a drop of nearly 15% in half-year profits, the company now expected full-year underlying profits of between £130m and £140m, about £6m below analysts’ expectations.Domino’s said it was gaining market share but its franchise partners were being more cautious about opening new outlets because of higher employment costs. Employers’ national insurance payments and the legal minimum wage were both increased in April.The company opened 11 stores in the six months to the end of June, fewer than expected, and is now forecasting openings in the mid-20s for the full year

Neil Woodford and his investment firm fined almost £46m over fund failings

The former star stock picker Neil Woodford and his investment management company have been fined almost £46m by the UK’s financial regulator over the collapse of his popular equity fund.The Financial Conduct Authority (FCA) has given Woodford a penalty of £5.89m and banned him from holding senior manager roles and managing funds for retail investors and fined Woodford Investment Management (WIM) £40m.The penalties are for failures in their management of the flagship Woodford Equity Income Fund (WEIF), which closed in October 2019 after investors, including many ordinary retail customers, rushed to withdraw money in response to the poor performance of a number of company investments, including some hard-to-sell illiquid assets.The value of the fund fell from a high of more than £10

Guinness owner Diageo’s profits slump as it warns of $200m Trump tariff hit

The world’s biggest spirits company, Diageo, has revealed a slump in annual profits and expanded its cost-cutting plan as it searches for a new boss after the resignation of the chief executive, Debra Crew.The FTSE 100 company, which owns brands including Guinness, Johnnie Walker whisky, Gordon’s gin and Smirnoff vodka, reported a nearly 28% fall in operating profit in the 12 months to the end of June compared with a year earlier.The drinks maker also upped its target for cost savings from £500m to £625m. The interim CEO, Nik Jhangiani, said the savings were “not about job cuts”, adding that while some roles would go, the overall workforce could still increase.The figures come weeks after the surprise announcement that the group had begun the hunt for a successor to Crew, who it said had stepped down “by mutual agreement”, after a period of investor disquiet over its declining share price