Business news live - Oil price drops sharply after reports Saudi Arabia will restore supply 'within weeks'

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An Aramco oil facility near al-Khurj area, just south of the Saudi capital Riyadh (AFP/Getty Images)

Oil prices have dropped sharply after reports that Saudi Arabia could restore production levels within weeks after an attack on its largest refinery.

The Reuters report indicating the world's largest oil exporter would recover more quickly than previously expected sent the price of a barrel of Brent crude down 6 per cent.

Elsewhere, WeWork has postponed its plans for a multi-billion dollar stock market flotation after investors balked at the loss-making office space firm's valuation.

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[17 September 2019 10:05 · ben.chapman]

Welcome to The Independent's live coverage of business and economics events.

Shares in BP and Shell are up again on the back of higher oil prices following attacks in Saudi Arabia that wiped out 5 per cent of global oil supply.

Plans for a huge fertiliser mine in Yorkshire have suffered a major blow after the company developing it, Sirius Minerals, cancelled plans to raise £400m in funding, blaming Brexit and a lack of support from the government.

[17 September 2019 10:12 · ben.chapman]

Sirius Minerals shares plummet 60% after mine announcement

Shares in Sirius Minerals, which had planned to develop a huge fertiliser mine in Yorkshire, have plummeted as much as 60 per cent after it cancelled plans to raise £400m.

The stock is now trading down 48 per cent.

Sirius blamed Brexit and a lack of government support for the mine which is due to open in 2021 and support 1,000 jobs.

irius managing director Chris Fraser said:

"This is the most prudent decision to give the company the time necessary to restructure its plans to move the project forward.

"The process will incorporate feedback from prospective credit providers around the risks associated with construction and will include seeking a major strategic partner for the project."

[17 September 2019 10:17 · ben.chapman]

What next for WeWork?

According to the company it will seek to list later this year.

"The We Company is looking forward to our upcoming [initial public offering], which we expect to be completed by the end of the year.

"We want to thank all of our employees, members and partners for their ongoing commitment."

A recent Reuters report suggested that WeWork's valuation could be slashed to between $10bn and $12bn - way down on the $47bn mooted in January.

[17 September 2019 10:20 · ben.chapman]

French Connection shares fall 15%

The fashion brand's shares are now down 12.4 per cent having crashed as much as 15 per cent after it reported pre-tax losses of £4.7 million for the six months to 31 July.

Julie Palmer, a partner at insolvency specialists Begbies Traynor, said:

"It's clear the leadership at French Connection has a job on their hands to breathe new life in this former 'cool' brand.

"It's a big ask, especially as the current retail climate shows no respect to high-profile brands, but one the company needs to undertake if it's to relive its former glories."

[17 September 2019 10:24 · ben.chapman]

Ocado retail sales accelerate as it joins forces with M&S

Ocado's retail business saw sales accelerate in the third quarter as weekly customer orders continued to rise.

The results were the first for Ocado Retail, the online grocer's retail arm created as part of its £750 million joint venture with Marks & Spencer. M&S products will be available through Ocado from September 2020.

Weekly orders through Ocado rose 12.1% as it was buoyed by increased delivery slots during the period to September 1.

Melanie Smith, M&S's former strategy director who took the reins at the joint venture last month, said the results highlighted Ocado's "resilience" following the fire at its Andover facility.

Press Association

[17 September 2019 10:29 · ben.chapman]

Little sign of grocery stockpiling ahead of Brexit, says Kantar

UK households bought 0.9 per cent fewer items in the latest quarter than in the same period last year, according to data company Lantar.

It says this suggests "talk about stockpiling might be just that".

Fraser McKevitt, head of retail and consumer insight at Kantar, said:

"As we move closer to October 31, it seems talk about stockpiling might be just that because we're not seeing any evidence of it at the moment.

"In fact, households bought 0.9% fewer items during the past 12 weeks than they did last year."

Ocado enjoyed the biggest sales rise - a bumper 12.7 per cent - while Iceland suffered the biggest fall. Sales were down 2 per cent on a year earlier.

[17 September 2019 11:03 · ben.chapman]

The pound is down 0.3 per cent against the dollar to $1.239 and 0.4 per cent against the euro at €1.125 following media reports that Boris Johnson and his team are looking for ways to get around a law that requires him to extend the Brexit deadline by three months if a new deal is not agreed by 19 October.

The Supreme Court is today hearing arguments about whether or not the prime minister acted legally in suspending Parliament.

[17 September 2019 11:13 · ben.chapman]

One of the key reasons investors are questioning WeWork's valuation:

At the $47bn price tag which SoftBank invested earlier this year, WeWork is apparently worth ten times more than London-listed IWG which does essentially the same thing and has a comparable number of desk spaces, as the Wall Street Journal's Eliot Brown has pointed out:

Questions have been raised about this for some time...

Is WeWork a revolutionary technology company or a glorified facilities manager?

As Michael Hewson, chief market analyst at CMC Markets puts it today:

"It would appear that WeWork has missed the boat when it comes to getting investors to buy into an idea that has yet to prove profitable.

"With the company losing $2 for every $1 it makes, even a valuation as low as $15bn and $18bn hasn’t been enough to whet investor appetite, particularly since a number of this year’s unicorns are now languishing below their IPO launch prices.

"As Uber can attest a popular business model doesn’t always translate into a realistic valuation and looking at WeWork’s numbers it is hard to make a case for the type of valuation being asked for now, let alone the one we saw at the beginning of the year.

[17 September 2019 11:23 · ben.chapman]

Average credit card APR 'highest since at least 2006'

People considering putting more purchases on plastic as Christmas approaches could face rising costs - as average credit card interest rates are now at the highest point in at least 13 years.

The average APR (annual percentage rate) available for those making credit-card purchases reached 24.7 per cent in September - the highest figure since website Moneyfacts.co.uk's records started in June 2006.

It said credit cards have seen a significant increase in APR charges generally in recent months.

Rachel Springall, a finance expert at Moneyfacts, said some providers have pulled their low rate deals altogether while others have increased their interest rates.

Press Association

[17 September 2019 12:58 · ben.chapman]

European Parliament backs Christine Lagarde

European lawmakers voted to back Christine Lagarde as the next president of the European Central Bank.

In the European Parliament vote, 394 were in favour, 206 against with 49 abstentions, paving the way for Ms Lagarde to become the first woman president of the ECB.