Millions of Twitter users have voted for Elon Musk to quit as chief executive leaving his future at the social media company in doubt after he promised to “abide by” the result.
More than 57pc of 17.5m Twitter users who took part said the world’s second richest man should quit as head of the platform.
Shares in his electric car company Tesla were up 5pc in pre-market trading as the direction of the poll became clear.
Mr Musk insists he “will abide by the results” of the poll which asked: Should I step down as head of Twitter?
However, he said “there is no successor”, tweeting: “No one wants the job who can actually keep Twitter alive.”
His tenure as boss of the social network has been a whirlwind of turmoil since he completed his ($44bn) £38bn takeover in October.
He has sacked 4,000 staff – more than half of its workforce – and last night declared war on Twitter’s social media rivals by banning the promotion of their accounts from his platform.
Last week, Mr Musk reinstated the Twitter accounts of several journalists that were suspended for a day over a controversy on publishing public data about the billionaire’s plane.
Read the latest updates below.
01:56 PM
Manufacturing bosses fear next three months
British factory output fell at the fastest pace in more than two years as manufacturing bosses warned the next three months will be even tougher.
Our economics editor Szu Ping Chan has the details.
The drop in the three months to December was led by the food and drink industry as well as paper and printing factories and the mechanical engineering sector, according to the Confederation of British Industry (CBI).
This resulted in the biggest fall in output since the three months to September 2020, when the government started introducing tighter Covid measures ahead of the UK’s second lockdown in October.
Factory bosses said they expected output to be even lower in the next three months as price pressures continue to erode margins, even as companies plan to pass higher costs on to customers.
Anna Leach, the CBI’s deputy chief economist, said higher prices were here to stay, at least in the short term.
The Government is expected to announce a fresh package of support for businesses to help with energy costs in the coming weeks. The CBI has warned that business energy bills will more than double next year without extra financial support.
01:35 PM
Unions hits out at Musk’s ‘attention seeking’
Twitter’s strategy and “knee jerk decision making” will not change even if Elon Musk steps down, according to union chiefs.
Mike Clancy, general secretary of Prospect, a leading tech union representing many Twitter staff in the UK, said:
This latest erratic behaviour by Elon Musk, once again underlines the deep issues over the way this company is being run.
Whether or not Musk carries through on this vote, and is the chief executive going forward, he will still own the business. This means it seems highly doubtful that we will see a sea change in strategy.
The way that Twitter under Musk has treated its staff has been appalling, riding roughshod over the principles that underpin UK employment law.
What is needed is a fundamental change in approach, rather than more attention seeking, knee jerk decision making.
01:25 PM
Twitter users should ‘expect the unexpected’ after poll
Twitter users have been told to “expect the unexpected” after they voted in favour of Elon Musk stepping down as the site’s chief executive in an online poll – a result the billionaire said he would respect.
Industry expert Paolo Pescatore of PP Foresight said the company’s future was now even more unpredictable following the vote – which was run by Mr Musk himself.
It comes after an already turbulent period under his leadership which has seen a number of controversies and several major policy U-turns.
Mr Pescatore told the PA news agency: “One thing I’d say is expect the unexpected. Ultimately he still owns the company and is the one calling the shots.”
Jukka Vaananen, chief executive of PR platform, Newspage, said:
Even if he steps down as CEO, Musk will still be pulling the strings at Twitter, that much is for sure.
Whether you believe Musk is genuinely aspiring to create a digital town square or turning Twitter into a 1970s banana republic, truth is it’s Musk’s gig and he’s going nowhere.
01:15 PM
Savers enjoy highest rates since 2009
The average easy-access cash-savings rate has hit its highest point since January 2009, according to analysis.
Savers can now typically get returns of 1.43pc with this type of account, financial information website Moneyfacts.co.uk said.
A year ago, in December 2021, the average easy-access savings rate was just 0.19pc.
Someone putting away £1,000 for a year at 0.19pc would get £1.90 in savings interest, but at 1.43pc they would receive £14.30.
Finding decent savings returns can help to offset the eroding impacts of high inflation, although at 10.7pc, inflation is significantly higher than typical easy-access savings rates.
01:04 PM
French train guards to go ahead with Christmas and New Year strike
Train guards at France’s state-owned railway operator SNCF have decided to go ahead with a strike planned for the Christmas and New Year weekends, the SUD Rail union said.
SNCF management has offered to give train guards a €600 (£522) bonus to recognise the special nature of their work, on top of a general 5.9pc salary increase across the company.
Unions had until today to decide whether to accept the bonus offer.
A previous SNCF strike in early December over wages and working conditions as high inflation eats into salaries saw 6pc of trains across France being cancelled.
12:47 PM
Bank of England backs plan to scrap bonuses
Brussels’ cap on banker bonuses has backfired and fuelled higher salaries in the industry, the Bank of England said as it backed plans to end the policy.
The Bank has launched a consultation on undoing the rules introduced before Brexit, saying the proposals will “strengthen the effectiveness of the remuneration regime”.
The restrictions were introduced to curb risky behaviour following the 2008 financial crisis.
However, two policy analysts at the Bank of England said that in fact, the rules had simply meant that fixed salaries increased to offset the curbs — particularly the delay in bonus payments.
The European Union introduced a bonus cap of up to two times salary in 2014 on “material risk takers”.
The deadline for responses to the consultation is March 31.
12:21 PM
US markets expected to open higher
Wall Street is expected to enjoy a stronger open, lifted by hopes that central banks will win their battle against inflation .
Futures on the S&P 500 and the tech-heavy Nasdaq 100 ticked higher, led by energy and tech shares.
Among the biggest risers in US premarket trading was Tesla, which surged more than 5pc in anticipation of Elon Musk stepping back from Twitter.
The broad-based S&P 500 futures rose 0.3pc, while Nasdaq 100 futures were up 0.4pc. Futures on the Dow Jones Industrial Average rose 0.2pc.
12:11 PM
Snoop Dogg polls Twitter users on takeover
Snoop Dogg has put himself forward to run Twitter, accruing more than a million votes in an online poll urging the American rapper to take over from Elon Musk.
So far 81pc of voters think he should take control of the social network:
12:01 PM
Win Bischoff stepping down from JPMorgan Chase
As the world waits to see whether Elon Musk will step down as Twitter boss, another of the world’s major boardroom figures has announced he is quitting.
Sir Win Bischoff will step down as the chairman of JPMorgan Chase’s main operating business in the UK after a seven year term.
Timothy Flynn will replace Bischoff as chairman of JP Morgan Securities Plc, which houses the investment bank.
Sir Win, 81, took on the role in 2015. He has also served in a variety of board roles, including chairman of its UK
remuneration committee.
He is one of the City of London’s most prominent financiers and has held a series of senior jobs including as chairman of Lloyds Banking Group, chairman and chief executive officer of Schroders and interim chief executive and chairman of Citigroup in the wake of the lender’s bailout.
11:39 AM
Tesla share rise after Musk Twitter poll result
Tesla shares have fallen 33pc since Elon Musk closed his $44bn deal for Twitter – and are down 58pc since its chief executive first revealed in April that he had taken a stake in the social network.
The electric car maker’s share are expected to open high when US markets open at 2.30pm and are up 5.3pc in pre-market trading.
Mr Musk has previously taken cues from Twitter users on his decisions, from whether she should trim his stake in the car company to whether he should reinstate Donald Trump’s account.
11:30 AM
Twitter has been ‘black eye moment’ for Musk
Analysts at privately-held investment firm Wedbush think it is time for Elon Musk to say goodbye to Twitter.
Analysts Daniel Ives and John Katsingris said:
From the botched verification subscription plan to banning journalists to political firestorms caused on a daily basis, it has been the perfect storm as advertisers have run for the hills and left Twitter squarely in the red ink, potentially on track to lose roughly $4bn per year we estimate.
More red ink means funding gaps causing Musk to sell more Tesla stock which has been used as his own personal ATM machine since this saga began in April.
As such, this has been a black eye moment for Musk and been a major overhang on Tesla’s stock which continues to suffer in a brutal way since the Twitter soap opera began with brand deterioration related to Musk a real issue.
Musk is Tesla and Tesla is Musk.
Attention focused on Twitter instead of golden child Tesla has been another big issue for investors and likely is behind this poll results with many Musk loyalists wanting him to leave as CEO of Twitter.
11:19 AM
Binance chief urges Musk to ‘stay the course’
Changpeng Zhao, the chief executive of crypto exchange Binance, has urged Elon Musk not to step down as Twitter chief executive.
11:06 AM
Migrants ‘worked 99-hour weeks at factory supplying Tesco’
Tesco is facing a landmark lawsuit over allegations that migrant workers were forced to work 99-hour weeks on illegally low pay, making jeans for the supermarket giant’s F&F fashion brand.
A group of 130 former employees at VK Garment Factory in Thailand are suing Tesco and auditing specialists Intertek for “alleged negligence and unjust enrichment”.
The allegations, which were first reported following an investigation by The Guardian, were made by workers who produced jeans, denim jackets and other F&F clothing for adults and children for the Thai branch of Tesco’s business between 2017 and 2020.
Tesco completed the sale of its Thailand and Malaysia business in December 2020 for around £8bn.
In the UK legal case, led by law firm Leigh Day, it is claimed that the migrants were paid at most around £4 a day, working seven days a week, and were “trapped in a cycle of forced labour”.
Tesco was not involved in the day-to-day running of the factory but the supply chain workers are nevertheless bringing the case directly against the business.
10:50 AM
Nearly half think it is a bad time to buy a house
Just one in seven people thinks now is a good time to buy a house – one of the lowest confidence ratings recorded by building societies in nearly 15 years.
While 14pc of people think now is a good time to buy a property, 47pc do not think now is a good time to purchase a home, the Building Societies Association (BSA) found.
Weighing these two figures up against each other, this gave a net confidence rating of minus 33pc of people believing now is a good time to buy a home – which the BSA said is one of the lowest levels of confidence it has seen since its records started nearly 15 years ago.
High house prices, rising mortgage rates and rapidly increasing essential living costs are among the factors dragging on market confidence, the BSA said.
10:30 AM
Heathrow asks airlines to halt Christmas ticket sales
Heathrow airport is asking airlines to halt ticket sales on inbound flights over Christmas in a bid to minimise disruption during walkouts by Border Force staff.
The plan was devised with the cooperation of British Airways and Virgin Atlantic, which are based at the hub and intend to comply.
Border Force earlier wrote to airports asking them to limit demand to no more than 80pc of 2019 levels for arrivals during the protests, Heathrow said.
It said the move to halt sales is not being unilaterally imposed, having been agreed with BA and Virgin, and remains a request for other operators.
Officials represented by the PCS union are set to strike over pay at Heathrow and other major UK hubs from Dec 23 to New Year’s Eve, hitting the first Christmas travel rush since the easing of Covid restrictions.
10:02 AM
Spring Budget date announced
Jeremy Hunt will set out a Spring Budget on March 15, 2023, the Treasury has just announced.
In a written statement he said: “Today I can inform the House that I have asked the Office for Budget Responsibility (OBR) to prepare a forecast for March 15, 2023, to accompany a Spring Budget.
“This forecast, in addition to the forecast that took place in November 2022, will fulfil the obligation for the OBR to produce at least two forecasts in a financial year, as is required by legislation.”
10:02 AM
Musk poll heading for ‘yes’ vote
If Elon Musk is true to his word, he could be on his way out at Twitter.
After 16.3m votes, 57.5pc have said “yes” he should step down as head of the social network.
09:57 AM
Britain’s growth in inactivity rate among world’s highest
The UK has experienced one of the largest increases in its economic inactivity rate since the pandemic.
Britain is one of four of the 37 advanced economies in the Organisation for Economic Co-operation and Development (OECD) where the fall in the employment rate relative to prior to the pandemic is driven by a rise in the rate of economic inactivity rather than an increase in unemployment.
Among OECD countries, only Colombia, Chile and Switzerland have seen a higher proportion of people become economically inactive since the last quarter of 2019.
09:47 AM
More long-term sick and over-50s leaving work than before Covid
There are 565,000 more people in economic inactivity than prior to the coronavirus pandemic, according to new data from the Office for National Statistics.
The majority of these people are those aged over 50 years and those who have become long-term sick.
09:42 AM
Insolvencies rise 15pc in Britain
Corporate insolvencies in Britain were up 15pc last week compared to the same time a year earlier.
At least 789 companies filed for insolvency, while 40 administrators were appointed to companies in the UK, a year-on-year increase of 135pc.
Administrators are appointed when a company is unable to pay its debts and needs temporary relief from creditors.
Liquidators are appointed to sell off a company’s assets and shut down the business.
Tom Pringle, head of restructuring at Gowling WLG, said:
That insolvencies are increasing will be of no surprise to anyone who has been paying any attention to the economy recently.
The dramatic rise in winding up petitions and liquidations is alarming, with the prolonged rise in liquidations showing that for many companies, there was simply no business left to be saved when insolvency hit.
Directors of struggling companies need to be aware that there are many options now available to them to save or rescue their businesses, as long as they get the right advice as early as possible. Delay spells disaster.
09:20 AM
Tesla shares surge in pre-market trading
Tesla shares gained 4.8pc in pre-market trading after Elon Musk polled Twitter users on whether he should step down as head of the social network.
The electric-vehicle maker’s shares have plummeted by 57pc this year amid Mr Musk’s chaotic turnover of Twitter in October.
The world’s second-richest man sold another 22 million shares of Tesla shares last week, raising $3.6bn (£2.9bn).
09:12 AM
Elon Musk declares war on Twitter rivals
Elon Musk has declared war on Twitter’s social media rivals by banning the promotion of their accounts from his platform in a move that will be seen as a warning to Mark Zuckerberg.
Our banking & financial services correspondent Simon Foy has the details:
Twitter said it will block the promotion of Facebook and Instagram content in the latest radical move by the billionaire entrepreneur to shake-up the social media giant since his $44bn (£36.3bn) takeover in October.
The decision means that Twitter users can no longer post links to their profiles on other social media sites, including Meta-owned Facebook and Instagram, as well as Mastodon and Donald Trump’s Truth Social.
In what will be interpreted as a broadside against rivals, the move highlights how Mr Musk is willing to directly take on Mr Zuckerberg and Mr Trump’s platforms.
Read how Twitter bosses may be concerned about users migrating to rival sites.
08:56 AM
Pound rises against the dollar
The pound was up in early trading as investors bet that the Bank of England may ease the pace of its interest rate rises.
The Bank opted to increase rates by 0.5 percentage points to 3.5pc last week – its highest since 2008.
However, Governor Andrew Bailey suggested inflation in Britain may be at its peak, allowing policymakers to slow the pace of hikes.
This morning, sterling climbed by 0.5pc to just over $1.22.
08:34 AM
Markets lifted by energy and mining stocks
The FTSE 100 edged higher this morning, buoyed by energy firms and miners.
However, concerns about slowing economic growth kept investors on edge after the Bank of England, US Federal Reserve and European Central Bank stuck to their hawkish monetary policy stance last week.
The export-oriented FTSE 100 climbed as much as 0.5pc, although it is now up 0.3pc to 7,357.03. The domestically focussed FTSE 250 rose 0.2pc to 18,629.97.
Energy firms and miners added 2.5pc and 0.8pc, respectively, tracking upbeat oil and copper prices as loosening Covid restrictions in China aided hopes of a recovery in demand.
However, pharmaceutical firms dropped 0.4pc, bogged down by AstraZeneca’s 0.7pc fall after its lung cancer drug failed in a late-stage trial.
The biggest faller opn the FTSE 100 was Ocado, down 2.5pc. On the FTSE 250 the biggest decline came from Currys, down 5.1pc.
08:26 AM
British economy will shrink 1.3pc next year, says KPMG
The UK economy is on track to shrink by 1.3pc in 2023 amid a recession which is set to last until the end of next year, according to a new economic forecast.
Economists at KPMG have predicted that the UK has already entered a “shallow but protracted” recession amid continued inflation and higher interest rates.
Yael Selfin, chief economist at KPMG UK, said increases in food and energy costs this year have dragged back households’ spending power.
KPMG predicted that the country entered recession in the third quarter of 2022.
Official figures from the Office for National Statistics showed that the economy shrank by 0.2pc in the third quarter, between July and September.
A technical recession is defined as at least two consecutive quarters of contraction.
08:20 AM
EU to hold crunch meeting on gas price cap
European gas prices have fluctuated ahead of a key European Union meeting to discuss a price cap on gas that is nearly a third lower than first proposed.
Benchmark futures slipped as much as 3pc this morning but then rose as much as 1.3pc.
EU countries are trying to break the deadlock over the historic proposal aimed at limiting the impact of the energy crisis triggered by Russia’s invasion of Ukraine.
The Czech government, which holds the EU’s rotating presidency, suggested lowering the ceiling to €188 per megawatt hour, compared with €275 proposed to the European Commission last month.
Dutch futures, the international benchmark, were down 1.3pc to €114 a megawatt hour this morning.
08:05 AM
Markets open higher
Markets in London have begun the week positively after tough couple of days following the Bank of England’s increasing of interest rates.
The FTSE 100 opened up 0.3pc to 7,351.73 while the FTSE 250 has risen 0.1pc to 18,612.66.
07:54 AM
Oil and gas companies fined in emissions crackdown
Three major oil and gas firms have been fined a total of £265,000 for actions that have impacted the industry’s efforts to cut back on emissions, a regulatory body has said.
The North Sea Transition Authority (NSTA), previously known as the Oil and Gas Authority, cracks down on behaviour that risks the industry reaching its net zero targets.
Inspectors revealed UK-based EnQuest was fined £150,000 for flaring an excess 262 tonnes of gas on the Magnus Field, in the North Sea, between November 30 and December 1 last year, despite knowing it did not have the necessary consent in place.
The NSTA’s flaring and venting guidance aims to eliminate unnecessary or wasteful flaring and venting of gas, with an aim for zero routine flaring and venting by 2030.
Norway-based Equinor was also fined £65,000 for flaring at least 348 tonnes of CO2 above the amount permitted on the Barnacle Field, located in the North Sea, between June and November 2020.
Meanwhile, Spirit Energy has been fined £50,000 for exceeding the maximum allowed production volumes from two fields over three years.
07:48 AM
Bus firms to cap fares at £2
More than 130 bus operators will participate in a scheme capping fares at £2, the Department for Transport (DfT) has announced.
National Express and Stagecoach are among the companies which will introduce the upper limit for single fares in England outside London from the start of January to the end of March.
The cap is being backed by £60m of Government funding.
Single local bus fares in England cost an average of £2.80 but can exceed £5 in rural areas, according to the DfT.
07:28 AM
Huge week of industrial action
Businesses and ministers have to contend with a huge week of industrial action in the lead-up to Christmas.
DWP officials walk out today, followed by nurses on Tuesday, ambulance workers on Wednesday, postal workers and border guards on Friday and railway staff on Saturday.
07:24 AM
Retailers fear lacklustre run-up to Christmas
Retailers are braced for a subdued last few days of build-up to Christmas as households bear the brunt of energy and economic shocks.
Analysts Springboard said the declines from month to month from September to November and then just a modest predicted rise this month would eradicate the gains made over much of this year.
Diane Wehrle, insights director at Springboard, said footfall would rise in all three destination types from November to December, although would be “more subdued than in previous years”.
She said it would be down by 4.5pc in high streets, 5pc in retail parks, and 10pc in shopping centres.
British Retail Consortium chief executive Helen Dickinson said:
Despite facing huge cost pressures, retailers are doing all they can to keep prices affordable for all their customers.
But the cost-of-living crisis means many families might dial back their festive plans.
07:15 AM
Musk launches poll after watching World Cup final
Elon Musk launched his poll shortly after attending the World Cup final.
Argentina won the thrilling contest against France on penalties after the match ended 3-3 after extra time.
06:55 AM
Good morning
Elon Musk may well be stepping down as the boss of Twitter in the near future after he launched a poll asking users on the social network to decide his future.
The Tesla and SpaceX chief executive asked users: Should I step down as head of Twitter?
He promised to “abide by the results of this poll”.
5 things to start your day
1) Elon Musk declares war on Twitter rivals | Twitter said it will block the promotion of Facebook and Instagram content.
2) Last minute challenge to Abramovich’s telecoms deal | Truphone founder seeks to gatecrash sale of company agreed between oligarch and Turkish entrepreneur.
3) Former SpaceX executive quits British rocket start-up | Lee Rosen quits Skyrora less than six months after he joined.
4) Record central bank gold rush triggered by fears of Western sanctions | Central banks snapped up more gold in the first nine months of 2022 than all the annual totals since 1967.
5) Royal Mail shelves plans to deliver via drones as strikes cripple business | Wave of strikes hammer the company’s finances.
What happened overnight
Asian stock markets dropped again as investors wrestled with fears the Federal Reserve and European central banks might be willing to cause a recession to crush inflation.
The Shanghai Composite Index declined 1.3pc to 3,127.78, despite China announcing on Friday that it will try to reverse an economic slump by stimulating domestic consumption and the real estate market.
The Nikkei 225 in Tokyo lost 1.1pc to 27,218.28 and the Hang Seng in Hong Kong fell 0.7pc to 19,316.58.
Source: https://finance.yahoo.com/news/elon-musk-asks-twitter-users-065536388.html