Below are our top 10 stories that you need to know about. Be sure to check our twitter page for regular posts of important headlines. Click on the links for full stories.
Brexit Opinion articles of the week:
Chinese Premier Li Keqiang claims that China alone cannot save world from Brexit downturn, click here for more on his thoughts.
Many analysts argue Brexit is not all gloom and doom. Here are 7 reasons why the Brexit vote was a good thing and came at the right time.
Here is a short 7 point guide to what analysts believe companies should do to get through Brexit “unscathed”.
Opinion Article of the Week:
Could the sterling fall to parity with the dollar? Click here for the debate.
1. MP’S VOTE TO RENEW TRIDENT NUCLEAR DEFENCE
The House of Commons has backed the renewal of the UK’s Trident nuclear weapons system by 472 votes to 117. The MPs’ vote approves the manufacture of four replacement submarines at a current estimated cost of £31bn.
Defence Secretary Michael Fallon told MPs nuclear threats were growing around the world and Trident “puts doubts in the minds of our adversaries”.
Labour was split over the issue with 140 of its 230 MPs going against leader Jeremy Corbyn and backing the motion. A total of 47 Labour members voted against renewal, while others abstained.
For more on Trident, what it does and the controversy surrounding it, click here. (BBC News)
2. DONALD TRUMP WINS REPUBLICAN NOMINATION
Donald Trump has secured the Republican nomination for US president on day two of the Republican National Convention.
The House Speaker, Paul Ryan, urged delegates to unite behind Mr Trump, a day after splits in the party were evident as the convention opened. The Trump campaign also faces accusations a speech by Mr Trump’s wife Melania on Monday was plagiarised.
For more on the US elections click on the link. (BBC News)
3. iPhone CHIP SUPPLIER ARM IN £24BN TAKEOVER DEAL
The British company which designs microchips for iPhones is to be bought by Japanese conglomerate SoftBank in a £24.3bn deal. The most valuable tech company listed in the UK, Cambridge-based ARM Holdings supplies the technology for Apple and Samsung mobile phones.
SoftBank has pledged to preserve ARM’s existing management team, maintain its headquarters in Cambridge, at least double the number of employees in the UK over the next five years and increase its overseas workforce too.
ARM’s shares opened up 45% this morning and closed 41% higher at the end of trading on the FTSE 100. It is the tenth largest UK merger or acquisition ever, according to the Institute for Mergers, Acquisitions and Alliances. (Sky News)
The founder of ARM however, claimed that this deal marked a sad day for the British tech industry because of the strength it gave the UK’s tech industry as an independent company. For more information on this and info on why ARM is worth £24 billion, click here. (BBC News)
Conversely, other analysts argue that this deal marks the beginning of a bright new era in the British tech world and a vote confidence in UK tech following the Brexit result. Click here for more. (City A.M)
4. SUPREME COURT RULES LIES MAY NOT NECESSARILY INVALIDATE INSURANCE CLAIMS
Lying on an insurance claim should not necessarily invalidate it, the Supreme Court has said, in a judgement likely to affect all household policies. It said collateral lies – which are untrue, but do not affect the validity of the claim – can be acceptable. The judges voted by four to one to change one of the important principles behind current insurance law.
The insurance industry called it a “blow for honest customers”, and warned that the price of policies could rise.
The precise case involved a Dutch cargo ship, which ran into difficulty after its engine room was flooded. The owners deliberately lied, by saying the crew couldn’t investigate an alarm, because the ship was rolling in heavy seas. In fact the accident was caused by bad weather, so the lie was irrelevant, the court ruled.
The judge in the original court case said the lie amounted to a “fraudulent device”, which invalidated the claim. The Court of Appeal upheld that judgement, but the Supreme Court has now overturned it. (BBC News)
Uber hit 2 billion rides on June 18, CEO Travis Kalanick said in a Facebook post, six months after marking its first billion rides. The company, then, completed the same number of rides in six months as it did in the prior six years – due in part to its heavy spending to recruit drivers and passengers, which is made possible by more than $13 billion in funding from investors.
Uber is in 450 cities globally, up from 311 a year ago. Last month it raised $3.5 billion from Saudi Arabia’s sovereign wealth fund, part of a funding round that valued the company at $62.5 billion.
Earlier this month, Uber secured a $1.15 billion leveraged loan, allowing the company to take advantage of historically low interest rates while keeping venture-capital backers happy by not further diluting their equity.
Kalanick said that 147 Uber rides started at the exact same second in 16 countries to tie for the two billionth trip. The largest portion of those rides – 54 – happened in China, an indication of the company’s growth in that country, where Kalanick has also said Uber is losing more than $1 billion a year as it competes for riders. (Reuters)
The competition is so fierce in China that Uber’s investors are calling for a truce between themselves and challenger hailing app Didi. The companies are thought to be drawing up deals to put an end to this costly competition. For more on this competition, click here. (Bloomberg)
6. POKEMON GO
Pokémon GO had the most first-week downloads ever on iOS and users spend double the amount of time per day on the app than on Facebook (Forbes) so it is no wonder that Nintendo shares are doing well and the future is looking brighter for a company that struggled to find its place in the next generation gaming wars.
After the unprecedented rally in Nintendo’s share price since the release of Pokemon Go, the gaming company has soared past Sony in terms of market value. On Tuesday, Nintendo shares finished trading another 14% higher, meaning they have doubled in value since the launch of Pokemon Go on 6 July.
That put Nintendo’s overall market value at 4.36tn yen ($38bn; £28.8bn), topping Sony by 300bn yen. (BBC News)
However, Nintendo’s ten-day stock rally came to a halt on Wednesday after reports said the launch of the record-breaking game Pokémon Go in Japan, the birth place of Pokémon, had been postponed.
Shares in the Japanese company closed down 12.61 per cent on Tokyo’s stock exchange, its first substantial fall since July 6 – the day Pokémon Go launched in the US, New Zealand and Australia.
The game, currently available in over 30 countries, was supposed to launch in Japan on July 20. A report from TechCrunch suggests the companies behind Pokémon Go have cancelled the plan after an email from McDonald’s Japan, detailing the launch, was leaked to internet forums. (The Independent)
7. PAYPAL SHARES DOWN ON VISA DEAL NEWS
PayPal shares dropped the most in four months on concern about the cost implications of a new agreement between the digital payments company and Visa Inc.
The companies announced an agreement Thursday in which PayPal will stop discouraging customers from linking accounts to Visa cards and share more data with the card network in exchange for “long-term Visa fee certainty” and help with in-store payments.
Analysts pushed PayPal executives late Thursday for clarity on the costs associated with pushing more payments through Visa’s card network. That’s a more expensive way to process payments for PayPal, versus linking customers’ digital wallets to bank accounts. PayPal didn’t offer much clarity.
The deal ended years of acrimony between the companies that escalated as PayPal’s transactions volume soared and Visa expanded into PayPal’s turf of online payments and digital wallets. PayPal’s strategy of steering customers to link their digital wallets with a bank account drew ire from Visa executives as it allowed PayPal to process payments via the cheaper, bank-owned ACH network, cutting Visa out of transactions.
Analysts liked the easing of tension between the companies, but expressed concern about the potential hit to PayPal’s profitability. (Bloomberg)
8. HSBC EXECUTIVE ARRESTED ON CURRENCY RIGGING ALLEGATIONS
A senior executive at HSBC has been arrested at New York’s JFK airport for his alleged involvement in a conspiracy to rig currency benchmarks, according to reports. Mark Johnson, global head of foreign exchange cash trading in London, was reportedly arrested on Tuesday. Mr Johnson is reported to be the first person charged in the Justice Department’s three-year investigation into foreign exchange rigging at global banks.
Further reports suggested that he had been charged with front-running a customer order, or dealing on advance information provided by brokers before the client has given that information. The practice could have netted him and others involved millions of dollars in profit.
The Justice Department opened an investigation into possible manipulation of the £3 trillion-a-day foreign exchange market in 2013, following the start of a similar probe by the UK’s Financial Conduct Authority. (The Independent)
9. SAINSBURY’S ADDS 900 JOBS TO COMPETE WITH AMAZON FRESH IN ONLINE BATTLE
Sainsbury’s is creating 900 jobs as it launches a same-day online delivery service trial, a month after online giant Amazon launched its own groceries offer.
The supermarket will start the service at three stores before rolling it out to 30 by Christmas.
It said it was recruiting 470 workers at its new online fulfilment centre in Bromley-by-Bow in east London to keep pace with online demand in the capital, with another 430 added by 2020.
The new same-day service will allow customers who order by 12pm to have their shopping delivered to their home by 6pm, or to use a click-and-collect service to pick it up at 4pm. It will be free for orders over £100.
Two stores in London, at Streatham Common and Richmond, are taking part in the initial trial together with a third at Brookwood in Surrey. (Sky News)
10. ANGELA EAGLE DROPS OUT OF LABOUR LEADERSHIP RACE
Angela Eagle has pulled out of Labour’s leadership race and backed ex-shadow work and pensions secretary Owen Smith in his challenge to Jeremy Corbyn.
The ex-shadow business secretary said she was dropping out “in the interests of the party” and would back Mr Smith “with all her might and enthusiasm”.
It came as Mr Smith won the backing of more MPs in a party ballot and said it was “time to move on” from Mr Corbyn.
Labour’s leader says he will win despite losing the support of most MPs.
Mr Smith will now go up against Mr Corbyn in a head-to-head contest over the next two months, in which party members who joined Labour before 12 January, members of trade unions affiliated to Labour and registered supporters who sign up by paying £25 before Wednesday’s 17:00 BST deadline will be able to take part. (BBC News)
Over 180,000 people signed up before the deadline in 48 hours. (BBC News)