What to Watch: Shell hands back cash, oil choppy on Iran tension, and Facebook preps for crypto launch
Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad:
Shell hands back cash
Shell Energy Retail (RDSB.L) has been forced to pay £390,000 ($494,000) after overcharging around 12,000 energy customers on its default tariffs.
Industry watchdog Ofgem has called on the company, which rebranded from First Utility, to refund and compensate the customers affected, and pay an additional £200,000 to Ofgem’s consumer redress fund.
Ofgem found that the utilities firm overcharged on its default tariffs after the price cap was introduced in January 2019, in order to help the UK’s 11 million customers on poor-value default tariffs.
Oil choppy on Iran tensions
The price of oil was choppy on Friday morning after the US accused Iran of attacking two oil tankers in the Gulf of Oman.
Oil spiked on Thursday after two oil tankers travelling in the Strait of Hormuz near Iran were hit by explosions. Initial reports suggested they had been attacked.
Overnight the US blamed Iran for the attack and released footage it said showed Iranian forces removing a sea mine.
“The US Secretary of State blamed Iran for the attacks, in comments that President Trump subsequently retweeted, and overnight the US released a video demonstrating Iran’s involvement, saying an Iranian boat removed an unexploded mine from a US ship,” Deutsche Bank’s team of strategists wrote in a note to clients on Friday. “US officials also suggested that a military response has not been ruled out.”
The price of oil, which had been falling prior to Thursday’s incident, remains sensitive on Friday. Brent crude (BZ=F) was up by 0.3% to $61.49, while WTI crude (CL=F) was down by 0.2% to $52.14.
Facebook preps for crypto launch
More details of Facebook’s (FB) planned cryptocurrency launch have emerged.
Uber (UBER), Visa (V), PayPal (PYPL), and MasterCard (MA) have all committed to supporting Facebook’s new currency, according to a Wall Street Journal report late on Thursday.
The Journal reported that each company will invest $10m in a foundation that will back the new cryptocurrency. Facebook could launch the new crypto as soon as next week, the report said.
Separately, the Financial Times reported on Friday that Facebook has hired a senior banking lobbyist from Standard Chartered (STAN.L) as it prepares for greater regulatory scrutiny of its cryptocurrency in Europe.
Businesses warned of no deal Brexit risk
Firms should step up planning for a no-deal Brexit because they cannot trust politicians to solve the crisis, business chiefs have warned.
The head of the Institute of Directors (IoD) said Britain risked wasting the Brexit delay granted by Brussels until October, saying many “seem to have forgotten” the need to secure a deal as soon as possible.
Edwin Morgan, interim director general of the IoD, highlighted the willingness of several contenders to be the next Conservative leader and UK prime minister to leave the EU without a deal.
Tech visa applications rise
Demand for UK tech visas surged by 45% in the past year, in the fifth consecutive year of growth in applications.
The highest number of applications came from India and the United States, from those in the fields of software development, artificial intelligence, machine learning and fintech, among others.
There were also a high number of applicants for the visa from Nigeria, Russia, Canada, Australia, China, and South Africa, according to Tech Nation, which runs the visa programme on behalf of the Home Office.
Amigo loans chief steps down
The boss of guarantor lending firm Amigo (AMGO.L) has stepped down due to a health condition.
Glen Crawford has resigned as chief executive officer and the executive director of the firm, to undertake medical treatment for a degenerating spinal condition.
Crawford, who initially raised his intention to leave the firm because of the health condition in April, has left the role with immediate effect.
Current chief commercial officer Hamish Paton will take over as chief executive officer and executive director of Amigo next month.
European markets lower on trade war fears
European markets were lower amid tensions between Iran and the US.
Britain's FTSE 100 (^FTSE) was down by 0.3%, Germany's DAX (^GDAXI) was down by 0.3%, France's CAC 40 (^FCHI) was down by 0.2%, and the Euronext 100 (^N100) was down by 0.3%.
Asian markets were mixed overnight. Japan's Nikkei 225 (^N225) closed up by 0.4%, but Hong Kong's Hang Seng index (^HSI) was down by 0.8%, and China's benchmark Shanghai Composite (000001.SS) was down by 0.9%.
What to expect in the US
US stock futures were pointing to a lower open.
S&P 500 futures (ES=F) were down by 0.2%, Dow Jones Industrial Average futures (YM=F) were down by 0.1%, and Nasdaq futures (NQ=F) were down by 0.5%.
Companies reporting later in the US today include:
Sears (SHLD)