BUSINESS LIVE: Inflation falls to 2.5%; Serco wins $247m contract; Fuller's enjoys strong Christmas

BP has postponed a crucial investor meeting as its boss recovers from surgery amid falling profits and slowing production.

The FTSE 100 oil giant yesterday said it has delayed next month’s Capital Markets Day to allow chief executive Murray Auchincloss to recuperate after a ‘planned medical procedure’.

China is exploring a potential sale of TikTok’s US operations to Elon Musk for up to £41billion.

The social media platform, which has more than 2bn users globally, faces a ban in America on national security grounds.

Nicholas Hyett, investment manager at Wealth Club, comments on the latest fall in inflation:

The slowdown will be very welcome for the government. It increases the scope for the Bank of England to cut interest rates, boosting growth and lowering the cost of borrowing.

That would create a little more financial headroom for the Chancellor and reduce the need for substantial cuts to public spending.

However, we think there’s a significant risk that inflation kicks off again later in the year. Employers are set to start paying higher rates of National Insurance in April, pushing up labour costs.

That is likely to see prices rise in sectors like hospitality and retail that employ substantial numbers of people and wear margins are already pretty thin.

That risks sparking an inflationary spiral. It could be a tense few months as we wait and see how things play out.

The boss of the US hedge fund battling to win control of seven London-listed investment trusts has branded the sector a ‘disaster’ – and claims he is the ‘white knight’ needed to save it.

Saba Capital boss Boaz Weinstein said shareholders have lost out due to an ‘ecosystem of greed’ that has damaged the performance of UK trusts. He hit back at the mounting opposition to his plans to overhaul the trusts and replace their directors with his allies.

Thomas Pugh, economist at RSM UK, comments on the latest UK inflation figures:

December’s dip in inflation won’t last long. The combination of firms passing through the large increase in labour costs imposed by the budget, increases in taxes and rising energy prices means inflation will breach 3% in the Spring, forcing Governor Bailey to pen his first letter to Rachel Reeves.

The tick down in inflation in December does raise the chances of a rate cut in February, but rising inflation this year means the Bank of England will cut rates  cautiously.

Embattled Rachel Reeves was offered a surprise respite today as inflation unexpectedly dipped.

The headline CPI rate slid to 2.5 per cent in December from 2.6 per cent the previous month, with core inflation also slowing.