Inmarsat rejects takeover approach; G7 worries hit markets - as it happened
All the day's economic and financial news, as investors worry that world leaders will clash over trade at the G7 meeting in Quebec
- Latest: Inmarsat in takeover battle
- European markets in the red after Trump attacks
- Trump attacks China
- Asian shares fell overnight
- Investors worry that world leaders will clash at G7
- BT CEO leaves as 'new leadership needed'
5.16pm BST
European markets have closed in the red tonight, hit by worries that G7 meeting will develop into a diplomatic punch-up.
The FTSE 100 shed 23 points, or 0.3%, while German's DAX lost 44 points, or 0.35%.
European stocks spent much of the session in the red as trade tensions weighed on investor sentiment. The G7 meeting gets under way today in Quebec, and investors are cautious as certain trading relationships are a little strained.
Related: Don't let Trump derail gender equality talks, experts warn G7 leaders
4.52pm BST
Newsflash: British satellite company Inmarsat had found itself in a takeover battle.
The Board of Inmarsat plc notes today's recent press speculation and movement in its share price and confirms that it received a highly preliminary and indicative non-binding proposal from Echostar Corporation in relation to the potential acquisition of the entire issued, and to be issued, share capital of Inmarsat (the "Proposal").
After carefully considering the Proposal with its advisers the Board rejected the Proposal on the basis that it very significantly undervalued Inmarsat and its standalone prospects. The Board remains highly confident in the independent strategy and prospects of Inmarsat.
4.26pm BST
Italy's debt has come under pressure today, sending yields on Italian government bonds higher.
#Italy's 10-year bond yield back at >3.1% levels as PM Conte supports President Trump's call for Russia to rejoin #G7.#G7Charlevoix pic.twitter.com/RvEY6au1Vg
Strategists are uncertain over how the newly-formed populist government will work with Brussels, and also over its fiscal plans.
At the same time, a string of hawkish speeches from ECB policymakers earlier this week have revved up expectations that the central bank will announce next week the end of its bond buying programme.
4.12pm BST
European Council president Donald Tusk, who is attending the G7 meeting, insists that European delegates will maintain a united front.
Tusk also played down the idea that Russia could be readmitted to the gathering, despite Donald Trump's comments earlier:
"This morning I had the first and very good, promising meeting with Italy's Prime Minister Giuseppe Conte and I am convinced that here at the G7 we will have a fully united European position on all issues.
Including on Russia. I am not talking about details but about the more general common line.
Donald Tusk on the Trump threat to international order: "What worries me most is the fact that the rules-based international order is being challenged, quite surprisingly not by the usual suspects, but by its main architect and guarantor, the US."
More Tusk: "We will not stop trying to convince President Trump that undermining this order makes no sense at all, because it will only play into the hands of those who seek a new post-West order, where liberal democracy and fundamental freedoms would cease to exist."
3.45pm BST
BT's shares are still near the top of the FTSE 100 leaderboard this afternoon, as traders digest the exit of CEO Gavin Patterson.
They're currently up 1.1% at 205p. Back in 2013, when Patterson was appointed, they were worth 300p, so there's been some value destruction on his watch.
BT share price currently 40% below where it was when Patterson took over five years ago. Yikes. Huge amount of work to do before it sees those levels again
"Perhaps fittingly, Gavin Patterson's tenure was very much a game of two halves.
The rise of BT's Sport coverage, which has stepped up to challenge the dominance of Sky initially brought some good times for investors. However, it's been a different story over the last two years.
3.27pm BST
Here's our news story about Trump's comments:
Related: Donald Trump calls for Russia to be reinstated into G7
2.56pm BST
US stock markets have followed Europe and Asia's lead, and dipped in early trading.
It's a modest fall, though; the Dow Jones industrial average has shed 40-odd point, or 0.15%., while the Nasdaq is down 0.5%.
2.22pm BST
Italy's prime minister, Giuseppe Conte, has reportedly backed Trump's call for Russia to be reinstated.
ITALY'S CONTE SAYS AGREES WITH TRUMP THAT RUSSIA SHOULD BE BACK IN G7
At the rate things are going Russia may have to be readmitted just to keep it a G-7.
If Trump decides to withdraw from the #G7, perhaps there would be room for Russia again. These days, nothing seems out of the realms of possibility
1.58pm BST
Breaking: The pound is falling as the Europe Union's Brexit negotiator, Michel Barnier, gives a thumping thumbs down to the UK's latest proposal.
Barnier has rejected Theresa May's proposal that Britain should stay in the customs union until the end of 2021 unless a new customs agreement is agreed once Brexit has occured.
This has to be a backstop that provides a guarantee under all circumstances.
Barnier chucks a spanner into the works - "Our backstop cannot be extended to the whole of the UK."
1.38pm BST
Trump has added further spice to the G7 meeting, by telling reporters in Washington that Russian president Vladimir Putin should be joining the throng in Quebec:
On South Lawn before departing for Canada, Trump calls for Russia to be reinstated in G-8 (which has been the G-7 since the annexation of Crimea)
NEW: Donald Trump says Russia should be re-instated as G8 member, as he prepares to head (briefly) to the G7 in Canada.
which won't improve the mood at what was already shaping up to be a G6 + 1 type affair.
12.48pm BST
Donald Trump's social media sledging isn't doing much for the mood on Wall Street.
While Trump has at times appeared friendly with certain other heads of state in the past, the relationships have at least appeared to have become more hostile since tariffs were imposed on the European Union, Canada and Mexico by the US last week.
The G7 meeting has become more like a G6+1, with Trump choosing to isolate the US on a number of issues from trade to Iran and climate change.
12.27pm BST
Trump has thrown down the gauntlet:
I am heading for Canada and the G-7 for talks that will mostly center on the long time unfair trade practiced against the United States. From there I go to Singapore and talks with North Korea on Denuclearization. Won't be talking about the Russian Witch Hunt Hoax for a while!
12.12pm BST
In another sign that America is detaching from fellow advanced economies, Donald Trump will actually leave the G7 meeting early.
The president is due to leave Quebec on Saturday morning, meaning he'll miss the summit's second day. Trump is flying to Singapore for his historic meeting with North Korea's Kim Jong-un.
Trump has sought to play down expectations, characterising the meeting as "getting-to-know-you, plus".
But without a substantial "plus" in the form of progress in the direction of disarmament, the meeting will widely be deemed a failure. And to achieve that progress, Trump will have to make significant gestures towards what Kim wants most - security guarantees.
Related: What will be the outcome of Trump and Kim Jong-un's nuclear summit?
11.36am BST
Just in: Donald Trump is limbering up for the G7 meeting by firing another attack at Canada over trade tariffs:
Canada charges the U.S. a 270% tariff on Dairy Products! They didn't tell you that, did they? Not fair to our farmers!
Looking forward to straightening out unfair Trade Deals with the G-7 countries. If it doesn't happen, we come out even better!
11.23am BST
Emerging market currencies are being hit badly today, as investors scramble into the safety of the US dollar instead.
The South African rand, the Turkish lira and the Indian rupee have all suffered sharp falls.
Morning Note:
1. Messy G7 meeting coming up
2. DB considering Commerzbank
3. EMFX rout continuing to build pic.twitter.com/PbTRcAMo35
11.08am BST
Angela Merkel has received some unwelcome news as she prepares for the G7 meeting -- German industrial output and exports both fell in April.
Factory output across Germany shrank by 1% in April, dashing expectations that it would rise by 0.3%.
German Industry's bad news keeps coming as output declines. "This morning's macro data suggests that the German economy has had more trouble re-accelerating than previously thought," ING says. https://t.co/X7HLFt5ZQn pic.twitter.com/6cK17nXE1w
10.02am BST
Paul Donovan of UBS Wealth Management is gloriously unimpressed by this weekend's G7 shindig, arguing that little will be achieved in Quebec.
But markets could slide if Donald Trump falls out badly with fellow world leaders.
Several heads of government disappear off for a taxpayer-financed weekend mini-break in Canada today. The G5, G7, G8, and now G6 plus 1 have never really accomplished very much after the first burst of enthusiasm with the Plaza and Louvre accords of the 1980s. This meeting will be no different.
Because the G6 plus 1 is about spin not substance, the risks for markets come from the visual from this meeting. The US is looking isolated. This is not the isolationism and protectionism of the 1930s.
9.44am BST
Robin Bew of the Economist Intelligence Unit says the international trade system is more complex than Donald Trump suggests....
#G7 looking to be very heated over trade. Will be lots of fair/unfair accusations. There are differences in both tariff and non tariff barriers between #US and others but often the result of a deal where a quid pro quo has been cut elsewhere (IP protection etc).
9.03am BST
Donald Trump's attacks on the EU and Canada have sent traders racing to sell risky assets, says Ken Odeluga, market analyst at City Index.
Interest rate realities are sinking back in ahead of what's going to be a not particularly cordial G7 summit in Canada. It's little wonder that risk-aversion has returned.
Even under 'normal' circumstances, markets tend to write-off the chances that G7 summits will result in concrete communiques with lasting impact. The current U.S. administration back-tracked on climate-related pledges within weeks of the last meeting. It also took its first steps on the trade war path despite the anti-"protectionism" sentiments addressed in the prior G7 statement.
With new U.S. tariffs now lodged against all but one of the remaining six members and Trump tweeting his still combative mood overnight, some leaders might be wondering if there might be more productive ways to spend their time this weekend.
8.58am BST
No wonder markets are falling.
Overnight, Donald Trump launched a fierce attack on his fellow G7 leaders via Twitter, accusing Europe and Canada of treating America unfairly.
Why isn't the European Union and Canada informing the public that for years they have used massive Trade Tariffs and non-monetary Trade Barriers against the U.S. Totally unfair to our farmers, workers & companies. Take down your tariffs & barriers or we will more than match you!
Prime Minister Trudeau is being so indignant, bringing up the relationship that the U.S. and Canada had over the many years and all sorts of other things...but he doesn't bring up the fact that they charge us up to 300% on dairy - hurting our Farmers, killing our Agriculture!
Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers. The EU trade surplus with the U.S. is $151 Billion, and Canada keeps our farmers and others out. Look forward to seeing them tomorrow.
Les tensions montent partout. Ce G7 sera exigeant.
8.45am BST
A wave of selling has swept through Europe's trading floors this morning.
In London, the FTSE 100 has shed 58 points or 0.75%, to 7645 points.
A likely feisty G7 meeting in Quebec appears to be the main thing driving the markets lower. Investors are either worried that nothing will get resolved, or Trump will become more entrenched in his aggressive approach to trade.
8.31am BST
BT tweets...
We're kicking off the search to find our next CEO.
Find out more ai https://t.co/fwEQvfyyZL pic.twitter.com/erWLJbZxhO
8.26am BST
Geoff Cutmore of CNBC questions whether BT will stick with Patterson's strategy to revitalise BT, and cut 13,000 jobs, if he's now surplus to requirements.
Question for the morning courtesy of my colleague @steve_sedgwick on @BT . If the board still believe in CEO Gavin Patterson's strategy - why is he leaving? Very good question......
As @btgroup begins its search for a successor...we're debating @SquawkBoxEurope - Can a #telecoms company become a #tech company? ..."You almost need a brain transplant to think it will become a viable media/tech competitor" says Walter Price @AllianzGI_view
8.15am BST
It emerged earlier this week that BT shareholders were agitating for change, with top investors demanding talks with chairman Jan du Plessis.
We wrote on Monday that du Plessis has already held meetings with investors, with more planned. Clearly the mood wasn't great.
"I don't have much faith in Gavin....Since he took over [five years ago], it has not been a happy time for shareholders. I am not sure he is the right man for the job."
Gavin Patterson ousted as BT chief executive. Today's @TimesBusiness morning email in your inbox shortly ... pic.twitter.com/wxvUmcixlP
8.02am BST
A wobbly day's trading in Asia has seen Japan's Nikkei drop 0.5%, China's Shanghai Composite index lose 1.5%, and the Hong Kong Hang Seng lose 1.7%.
David Madden of CMC Markets says G7 worries are mounting.
The G7 meeting starts today in Quebec. Traders will be paying attention to see if any progress is made regarding trade talks. President Tump is in the eye of the trade storm, and he is letting the world know he means business, and he is determined to get the best deal for the US.
At the moment, investors aren't overly concerned about the state of play, but that doesn't mean they don't have a pain threshold.
7.40am BST
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The company said that it had already started the process of looking for his successor, and expected to appoint a new chief executive in the second half of the year.
Jan du Plessis, chairman of BT, thanked Patterson for his contribution but said the company needed a change in leadership.
Related: BT chief executive Gavin Patterson to leave post later this year
#FTSE100 called -35pts at 7669. Will that channel hold? pic.twitter.com/GXqkxAhkib
Given the quiet economic calendar today, the continuing trade spat between the US its closet allies will attract a good deal of attention as the G7 summit begins.
The broader US market posted its first loss in 5 days as the recent equity rally, and more specifically tech rally, faltered, whilst investors started to show unease over the potential climate at the G7 Summit. Souring investor sentiment resulted in a softer session for Asia and indicates a weaker start for Europe on the open.
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