Spotify’s NYSE-listed shares have jumped 15% at the start of trading to hit a three year* high.

*Corrected: previously said three month high

Swedish streaming service Spotify has seen its shares jump 14% in pre-market trading.

It comes after the New York-listed audio platform reported record-high profit margins of 29.2% in the second quarter, as bruising cost cuts started to translate into stronger finances.

The company also benefited from a rise in the number of premium subscriptions, helping push revenues up 20% to €3.81bn. However, that was slightly below analyst forecasts for €3.82bn.

It also fell short of a self-imposed target of 631 million monthly active users, hitting just 626 million in the quarter.

Overall, profits rose to€274m profit, up from a €302m loss a year earlier.

Spotify CEO Daniel Elk told Reuters that he took the missed target “seriously”:

It’s definitely something we take very seriously, if we miss our own forecasts.

For me, it’s a question of when, not if: we will return to strong MAU growth, I feel good about it.

Half a million households cancelled their licence fee last year as the BBC struggled to connect with younger audiences drifting away to Netflix and YouTube.

The stark extent of the BBC’s challenges are set out in the corporation’s annual report, which shows the total number of British households paying the £169.50 licence fee fell to 23.9 million, suggesting a growing number of people feel able to go without BBC services.

The fall has hit the BBC’s income at a time when its finances were already struggling due to a decade of funding cuts and high inflation.

Some of the most worrying numbers for the BBC show how young people increasingly feel the broadcaster is not relevant to their lives. Just 69% of Britons aged under 16 said they consumed any BBC content in an average week, with a particular weakness among people from an ethnic minority background.

The figures are even worse for younger age groups, with under-7s in particular tuned out, with the BBC saying it is struggling to compete against “global media companies” for these crucial future viewers.

Read the full story here:

Baroness Neville-Rolfe, the postal minister at the time the Post Office decided to stop prosecuting sub-postmasters, was never told that a key factor was because the Post Office could no longer find an expert witness willing to testify about the integrity of the flawed Horizon IT system and its data.

Neville-Rolfe, the former long serving Tesco executive who held the role of postal minister for 14 months until July 2016, has said that she only found out the reasons why the Post Office stopped the relentless prosecution of hundreds of sub-postmasters when it was revealed as part of the public inquiry.

During the time Neville-Rolfe held the ministerial position, the Post Office stopped prosecutions after internal advice concluded that Gareth Jenkins, a Fujitsu engineer who formed the backbone of the Horizon integrity defence against sub-postmasters, that his testimony was materially misleading and in breach of court rules.

“I didn’t know any of that at the time,” said Neville-Rolfe, who within three months of taking office asked new Post Office chair Tim Parker to look at the Horizon scandal with “fresh eyes” and examine the concerns about the IT system with an independent review,

Speaking at the inquiry on Tuesday, she said:

Looking back at hindsight I was getting unending, always the same, advice from the Shareholder Executive [Shareholder Executive, which manages government-owned assets and had a member on the board who is supposed to represent its interests].

It was very black and white.

I wasn’t aware [of the reasons prosecutions ended] until the inquiry. These were civil servants, I’d been a civil servant. You have a duty to be objective and truthful.

Neville-Rolfe also held meetings with Paul Vennells, the chief executive of the Post Office, which also served to reinforce the line that the Horizon IT system was not faulty.

I was told in all directions there wasn’t an issue. I was trying to find a way through to get further work done.

I was aware there were murmurings, especially among a few MPs, of some particularly troubling cases. I was worried I wasn’t getting broad enough advice from officials, the department or more broadly.

Porsche shares are down 4.5% and at the bottom of Frankfurt’s blue chip Dax index, after warning that a shortage of aluminium would drag down its profits.

The German luxury sports car maker said flooding at an unnamed European contractor would hit aluminium supplies would affect – and potentially lead to shutdowns of –vehicle production.

Analysts at Bernstein, who said the flooding had been at a Swiss supplier, explained that it would result in at least 10,000-17,400 fewer vehicles being produced in the second half of 2024:

Whether self-inflicted or genuinely outside its control, these have significantly tarnished what had been an extremely successful IPO in September 2022.

Porsche will certainly be closely questioned over its cluster risk management that has left it so vulnerable to one critical supplier.

The company said its operating profits margins would likely be between 14-15% this year, compared to earlier forecasts for 15%-17%.

Meanwhile, annual sales forecasts have been downgraded to between €39bn-€40bn, down from previous expectations for sales of between €40bn-€42bn.

Cooper prices have fallen to their lowest level in three months, amid concerns over the slowdown in consumer demand and economic growth in China.

Official figures released last week showed the Chinese economy expanding at an annual rate of 4.7% in the second quarter – much weaker than the 5.1% expected by the financial markets.

The central’s bank’s decision to cut interest rates yesterday also failed to ease concerns.

Jitters over what this could mean for demand for commodities and metals has now hit copper prices, with the three month copper on the London Metal Exchange falling 1% to $9,123 per metric ton this morning

It has in turn hit mining giants, which tumbled to the bottom of the FTSE 100.

Glencore is down 2.2%, Anglo American is down 2.1%, Rio Tinto is down 1.4%, Antofagasta is down 1.3%

High street lender TSB suffered a 24.5% drop in profits in the first half of the year, after being hit by heightened competition and a slowdown in the mortgage market.

Profits fell to £111.6m in the six months to June, down from £147.9m a year earlier.

The bank said it reflected “lower mortgage margins in challenging market conditions” as well as a jump in the money paid out to savers as it tried to avoid an outflow of deposits to rival banks offering higher rates. Year-on-year, customer deposits were down by £4m to £35bn.

Mortgage lending was impacted by high interest rates, which caused fewer consumers to borrow. But it meant banks were left to compete fewer customers, which put further pressure on lenders to reduce the cost of borrowing where possible.

It squeezed TSB’s net interest margin to 2.62%. That was 22 basis points lower than H1 2023, when it sat at 2.84%. Total income fell 6.1% to £548.7m.

The bank also took a £19m impairment loss on bad loans.

TSB CEO Robin Bulloch said.

Our focus in 2024 is making TSB simpler and easier to bank with and I’m delighted to see more customers choosing TSB.

We continue to make good progress against our strategy, and I’d like to thank everyone at TSB for their continued efforts to support our customers and communities, helping them feel more money confident.

The results comes as TSB prepares to defend itself in court today in a case related to historic mortgage debts.

A group of about 2,500 Northern Rock customers are seeking compensation from TSB’s subsidiary Whistletree, which bought their loans after Northern Rock collapsed. They say the became “mortgage prisoners” after being forced to pay inflated interest rates on their debts.

My colleague Hilary Osborne has the full story here:

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

We start the day with comments from none other than Tesla boss Elon Musk, who has revived the prospects of his company rolling out humanoid robots.

In comments made on his social media platform X, Musk claimed the electric carmaker will start using and eventually selling “useful humanoid robots” from next year.

It could be a lucrative business plan, though Musk has previously said that Tesla could mass produce the robots and sell them for less than $20,000 each.

But whether he can meet the self-imposed deadline remains to be seen. Remember that Musk previously said he expected Tesla would have self-driving taxis on the road within a year…that was back in 2019.

Meanwhile, Google’s parent company Alphabet has had its $23bn offer for Israeli cybersecurity firm Wiz have been rebuffed.

It would have been the biggest deal in Alphabet’s history, and the largest takeover of a venture capital-backed company.

While there has bene no public statement explaining why Wiz walked away from talks, the company reportedly sent an employee-wide email on Monday, saying:

While we are flattered by offers we have received, we have chosen to continue our path to building Wiz.

However, reports suggest there were also internal disagreements. Some board members at both companies were said to be concerned over whether the deal would gain approval from regulators, while other directors actively opposed the takeover.

Wiz, which was founded by alumni of Israel’s cyber intelligence unit, and was last valued at $12bn, will now pursue an initial public offering, according to reports.

The agenda

• 3pm BST: Eurozone consumer confidence (preliminary) for July

• 3pm BST: US existing home sales for June