The London Rush: China slams the brakes on Aston

Aston shares fall on Chinese demand

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Hi, I'm Louise from Bloomberg UK's breaking news team, catching you up on this morning's business stories. Chinese consumers have slammed the brakes on Aston Martin's recovery plan.  The luxury sports car maker will sell 1,000 fewer vehicles this year, no longer expects positive free cash flow during the second half, and expects earnings to be lower than in 2023. It blamed supply chain disruption and — crucially — continued weak demand in China. Shares dropped as much as 12%. It is not a pretty debut update for CEO Adrian Hallmark, who started this month with the challenge of turning around Aston Martin's fortunes. Neither is it a huge surprise, however: profit warnings are rife in the sector, with China playing a key role as local competition heats up and Beijing tries to revive economic growth.  Stellantis also cut profit forecasts this morning on a global slowdown, following Volkswagen on Friday, with both citing China in some form. What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

What We're Watching

Rightmove has rejected yet another proposal — the fourth — from Rupert Murdoch's REA Group and insisted that today must remain the deadline for a solid takeover bid. The latest offer values the British property portal at more than £6 billion but the board insists it still undervalues the company. Shares dropped 4%. A recovering housing market may be part of the reason for the company's optimism in its prospects. Also this morning, Nationwide said that UK house prices returned to growth in September, edging up 0.7%.  Elsewhere, Liverpool-based sports supplements maker Applied Nutrition is considering an IPO in what would be a modest boost to the Square Mile. Finally, Brits are indulging in small, mood-boosting luxuries ahead of an expected tough budget next month — a typical reaction to uncertain economic times. Fresh figures this morning show GDP has dipped, implying that a recovery from recession is losing steam. Analysis from Market Today's Sam Unsted below.

Global Catch Up

China property shares rally, iron ore spikes after homebuying eases. Israel sees paralysed Hezbollah, as Lebanon fears what's next. Austria's far right party wins vote, but traditional powers pledge to block.

Markets Today: Decent Enough

Here's your daily snap analysis from Bloomberg UK's Markets Today blog: Today's downward revision to GDP growth will be greeted with some negativity, mostly down to the power of expectations in markets, but it doesn't really change the picture either for the government or the Bank of England. Remember, this is data for the second quarter of the year, so it's backward looking and very prone to revisions. Growth in 2023, for example, was revised higher. The fact is, overall growth for the second quarter is pretty solid. Services, the dominant sector, is still the engine. Manufacturing is suffering from the downturn in the car industry, while construction is still weak but starting to turn a corner. However it is received, though, the data will focus minds yet further on the Labour's budget and the growth plans next month. — Sam Unsted Check Bloomberg UK's Markets Today blog for updates all day.

What's Next

Greggs of sausage roll fame posts third-quarter sales tomorrow. Analysts are looking for updates on pricing, as well as volume help from initiatives including loyalty and delivery.  Potential commentary on any impact from the summer riots will also be interesting, after the chain said "small numbers" of shops were damaged. Quick Coffee with: Katy Searle Katy Searle is a partner at Coulson Partners, the consulting firm founded by Andy Coulson, former News of the World editor and David Cameron's communications director. Before that, she ran the BBC's political operations during three general elections. We met her for a skinny flat white.  How do you save time? I've learned to work really quickly in political news. I'm always on top of my tasks, which is a time-saver in the end.  On big days, I wear… I'm prepared for a meeting every day, so I always wear make-up, for example.  Your favourite lunch place? The 10 Cases in Covent Garden. The best pub? The Anchor & Hope in Southwark. The food is so good. What are you reading? The Abyss on the Cuban missile crisis by Max Hastings.  What podcasts do you listen to? My boss's podcast, of course: Crisis What Crisis?  At the start of my career, I wish someone had told me… Be confident in your abilities. I started my career in a very male-dominated environment where many people had gone to very good universities, whereas I didn't go to uni. I think it's important to avoid imposter syndrome.  How do you switch off? I like to swim in the sea, all year, without a wetsuit.  Photographer: Leonard Kehnscherper/Bloomberg

Pub Quiz

The great Dame Maggie Smith died on Friday, aged 89. In a long and rich career, she was more recently known for playing the Dowager Countess Of Grantham in Downton Abbey and Professor McGonagall in Harry Potter. Which subject did Professor McGonagall teach at Hogwarts? Photographer: Ian Gavan/Getty Images Europe [Friday's answer: The winner of the heaviest cantaloupe melon category in this year's national giant vegetables championship received just £1,000.]

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