Business news live: UK manufacturing shrinks for fifth month in a row amid Brexit turmoil

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Manufacturing slumped to a seven-year low in the UK in August (AFP/Getty)

The UK's manufacturing sector shrank for the fifth month in a row, with output, orders and employment all shrinking, a new poll suggests.

IHS Markit's purchasing managers index (PMI) found that emp[loyment in manufacturing fell at its fastest pace since February 2013.

House prices also dipped unexpectedly in September as uncertainty around Brexit dampened activity, according to Nationwide’s index.

The live blog has ended.

Key Points

• House prices fall in UK as Brexit uncertainty intensifies
• 'Grim' news for UK economy as manufacturing slump continues
• Greggs sales growth slows and Brexit threatens to push up labour costs
• Argos boss quits to join ad giant WPP​
• Unions celebrate 'landmark victory' for Harland and Wolff workers
• JD Sports' £90m deal to buy Footasylum referred for full investigation

[1 October 2019 13:35 · ben.chapman]

Thomas Cook auditors EY investigated over checking of tour operators' books before collapse

Thomas Cook’s auditor is under investigation by the accounting watchdog over its work for the collapsed tour operator.

The Financial Reporting Council (FRC) announced on Tuesday that it has opened a probe into EY, as audit firms are increasingly in the spotlight over their potential role in several high-profile company failures.

The FRC said it will look at EY’s audit of Thomas Cook’s financial statements for the year ending 30 September 2018, adding that the probe could be broadened if required. 

https://www.independent.co.uk/news/business/news/thomas-cook-collapse-latest-audit-ey-pwc-investigation-accounts-watchdog-a9127906.html

[1 October 2019 13:55 · ben.chapman]

Revolution Bars sinks to loss

Press Association - Bar chain Revolution will continue upgrading and improving its current sites before opening new ones to avoid running up higher debts, the company's chief executive has revealed.

Rob Pitcher, who joined the group last year, said he plans to refurbish 15 bars, which trade as Revolution Bars and Revolucion de Cuba, having updated eight in the last year at a cost of £1.4m .

The costs means it sunk to a pretax loss for the year to 29 June to £5.6m, growing from a £3.6m loss a year earlier.

[1 October 2019 14:25 · ben.chapman]

There is near-unanimous political outrage in Ireland over a leaked British government plan to throw up a “buffer zone” with customs posts on the Irish border. Parties across the political spectrum branded it “out of the question”.

Secret proposals presented to Brussels suggested building vast “customs processing centres” along the frontier as a replacement for the Brexit backstop. Irish public broadcaster RTE reports that the plan was included in “non-papers” presented to Commission negotiators. 

The ideas represent a significant reversal by the UK government on commitments made under Theresa May to avoid “checks and controls” between the two territories to preserve the Northern Ireland peace process.

Europe Correspondent Jon Stone has more:

[1 October 2019 14:36 · ben.chapman]

Latest on John Lewis' restructure and job cuts

John Lewis has announced that it will merge its two business units under a single management team, resulting in around 75 job losses and a cost saving of approximately £100m.

From February, the company will integrate the teams behind its department stores and Waitrose supermarkets, with a third of the current 225 senior management head office roles disappearing.

Chairman of the John Lewis Partnership, Sir Charlie Mayfield, said: “Although there will be little or no disruption to our shops or websites in the near term, there will be considerable change in many other areas of the partnership as we bring the two businesses much closer together.”

[1 October 2019 14:56 · ben.chapman]

Will the UK ‘overtake Germany’ for technical education in a decade?

"The education secretary has set out his ambitious goal to beat Germany in technical education provision in just 10 years,writes The Independent's education correspondent Eleanor Busby. 

"Gavin Williamson insists his aim is “credible” but it is likely to that significant reform will be needed to match Germany – where many youngsters jump at the chance to enter vocational routes. "

[1 October 2019 14:57 · ben.chapman]

Pound tumbles against dollar

Sterling is down more than half a per cent against the dollar after Ireland reacted angrily to Boris Johnson's latest leaked Brexit plans.

The prime minister's plan to to throw up a “buffer zone” with customs posts on the Irish border attracted near-unanimous outrage across the Irish Sea, suggesting the idea will not boost chances of a deal being agreed before 31 October.

A dismal survey of manufacturing businesses showing a fifth consecutive month of contraction will also have done little to boost the pound.

Sterling is down 0.58 per cent against the dollar to £1.215.

Against the euro the pound is down 0.5 per cent to €1.122.

[1 October 2019 15:15 · ben.chapman]

Four energy suppliers have been ordered to pay £14.7m in overdue green taxes by the end of the month or face having their licences revoked.

Energy watchdog Ofgem said on Tuesday that Robin Hood Energy, Toto Energy, Gnergy, and Delta Gas and Power missed a 1 September deadline to make payments under the Renewables Obligation.

Under the government scheme, energy suppliers must prove they have sourced a certain proportion of their electricity from renewable sources. They can either source this directly or pay generators of renewable energy for certificates that designate that they are responsible for a particular amount of green power supply.

[1 October 2019 15:40 · ben.chapman]

"In what has been a dreadful month for European airlines, September ended with a final victim: Adria Airways, the national airline of Slovenia," writes Simon Calder.

"For the past five days the carrier had been “intensively searching solutions” to its severe financial problems.  It has continued to operate a shuttle between the Slovenian capital, Ljubljana, and Frankfurt – main hub for its alliance partner, Lufthansa.

The German airline is believed to have paid for the flights to continue."

[1 October 2019 15:55 · ben.chapman]

Greggs stockpiles pork ahead of Brexit

Greggs said it is building up supplies of pork ahead of anticipated disruption after Brexit.

It came as the bakery chain revealed it has slowed down its expansion plans, sending shares down a whopping 11 per cent today.

A cynic might suggest the stockpiling announcement was at least partly included as a distraction from the disappointing downgrade to expected performance. 

[1 October 2019 16:20 · ben.chapman]

Swedbank executives fired amid €200bn money laundering investigation

Three top executives at the Estonian branch of Swedbank, including a one-time candidate for central bank governor, have been fired amid an ongoing investigation into a vast money-laundering scandal.

The news came not long after police in Estonia confirmed that the former chief executive officer of the local branch of Danske Bank had taken his own life, as criminal probes into the Danish lender’s involvement in a €200bn dirty-money affair continue. Swedbank is being investigated for its possible involvement in the Danske saga.