SSE has issued a profit warning, describing its performance so far as “disappointing” and “regrettable”. The energy company blamed the upcoming price cap on the industry’s poor-value default tariffs, hot weather and higher gas prices for the poor trading update. “Lower than expected output of renewable energy and higher than expected gas prices mean that SSE’s financial performance in the first five months has been disappointing and regrettable,” said Alistair Phillips-Davies, the group’s chief executive. For the first five months of the year, the group took a £190 million hit on adjusted operating profit, sending shares down eight percent to £11.50. Profits for the six months to 30 September will be around £293 million. This is half of the £586 million that was achieved last year. “It is very rare to see a profit warning from a utility company as they are meant to have fairly predictable income streams. Yet SSE bucks the trend because of the wrong type of weather,” said Russ Mould, the investment director at stockbroker AJ Bell. George Salmon, an equity analyst at Hargreaves Lansdown, said: “Hardly any rain or wind meant output from its hydro and wind assets wilted in the heat, and with nobody putting the heating on, customer meters just didn’t tick over. All the while, the price of gas in the wholesale market has kept on rising.” ”Investors should remember that SSE can’t control any of these factors and a business increasingly focused on renewable energy will have good years and bad. With that longer-term outlook in mind, the board says it intends to stick to pre-existing dividend plans.” The energy company is currently in the process of merging with Npower. “Reshaping and renewing the SSE group will support the delivery of our five-year dividend plan in the years ahead,” Phillips-Davies. Shares in SSE (LON: SSE) are currently trading down 7.92 percent at 1.151,50 (1015GMT).

JPMorgan has warned that its Brexit plans are “past the point of no return”. Mark Garvin, the vice chairman of the corporate and investment banking arm, said that 4,000 jobs could move from the UK if no deal has been agreed. “We are now in full execution mode,” Garvin told MPs. “We are in the very advanced phases of execution, in fact. A number of these initiatives are already in flight and in many cases we have passed the point of no return – they are happening.” On the exact number of the 16,000 UK employees that are expected to move from the UK, Gavin said: “There is clearly a scenario where actually one does envisage that kind of outcome.” “That is not a forecast, that is a scenario. It is a scenario that can be mitigated by a series of arrangements.” “Our industry is in a constant state of flux and I can say personally we have been through far more significant tumult than this, so this is an event we can very well manage,” he added. “Compared to what is happening as a result of digitisation and other types of disruption, this is not a massive challenge.” JPMorgan is not the only bank preparing for a no-deal Brexit. Citi (NYSE: C) has said that between 150-200 staff will be affected. Barclays (LON: BARC) expects around 150 to move from London to Dublin. Share in JPMorgan (NYSE: JPM) are trading at 114,43 (0756GMT).

Tesco is expected to unveil its new discount chain next week. The store, named Jack’s, will be unveiled by the supermarket’s chief executive, Dave Lewis, in Cambridgeshire, on Wednesday. The store will compete with Aldi and Lidl, who have a combined 13.1 percent in the grocery market according to the latest Kantar Worldpanel data. “Aldi and Lidl account for over 13 per cent of take-home grocery sales and are growing at 10 per cent each year,” said Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel. “Strategically, it makes sense for Tesco to consider its own discount chain and try to capture some of that growth. The big four now make up less than 70 percent of grocery sales – down from 76 percent a decade ago. The proposed Sainsbury’s-Asda merger acknowledges this decline, as did Tesco’s own acquisition of Booker, which gave it access to wholesale and out-of-home sales.” “The opening of a new discount chain would be further recognition of this shift,” he added. Tescos has shared little about the new store, saying only that it would be “sharing some exciting news” on September 19. The group advertised for staff for a “new store format” in Cambridgeshire and hoped to recruit retail assistants, retail customer service assistants and retail managers. Clive Black, a Shore Capital analyst, expects the discount chain to soon represent 100 stores, including around 60 of the supermarket giant’s “Metro” stores, some of which are struggling. “Tesco has a cohort of problem stores where the traditional Tesco offer is a square peg in a round hole,” he said. “They have got low footfall and low income hinterlands and Aldi and Lidl are taking everyone’s legs away.” The new discount store will be named after Jack Cohen, who founded Tesco in 1919. Tesco shares (LON: TSCO) closed on Tuesday at 236,80.

Jaguar Land Rover’s boss has warned that “tens of thousands” of jobs are at risk if Theresa May fails to reach a Brexit deal. Ralf Speth warned the prime minister that UK factories will grind to a halt if she does not “get the right deal” before leaving the EU. Speaking at the government’s electric car summit in Birmingham on Tuesday, the Jaguar Land Rover boss said that the policies that have been “demonising” diesel had cost 1,000 jobs at the company and caused the “environment, industry, the consumer and the Exchequer to lose out”. Moving on to Brexit, Speth said: “Those numbers will be in the tens of thousands if we do not get the right Brexit deal.” “Six months from Brexit and uncertainty means that many companies are being forced to make decisions about their businesses that will not be reversed, whatever the outcome, just to survive,” he added. “Brexit is due to happen on the March 29 next year,” Speth said. “Currently, I do not even know if any of our manufacturing facilities in the UK will be able to function on March 30.” “Bluntly, we will not be able to build cars if the motorway to and from Dover becomes a car park, where the vehicle carrying parts is stationary.” “Frictionless trade is not an aspiration, but a necessity for JLR,” he added. Although Jaguar Land Rover is a British company, the chief describing the group as “quintessentially British”, the company is also moving production to a giant new plant in Slovakia, where production is “thousands of pounds” for each car. “What decisions will I be forced to make, if Brexit means not merely that costs go up, but that we cannot physically build cars on time and on budget in the UK?” said Speth.

Debenhams has attempted to reassure investors after it was revealed the department store had appointed KPMG to help improve its performance. After media reports said the group was considering a company voluntary arrangement (CVA) to allow store closures and cut rents, shares fell by 16 percent 11.5p. Sergio Bucher, the chain’s chief executive, said: “The market environment remains challenging and underlying trends deteriorated through the summer months.” The company is “well equipped to navigate these market conditions and take advantage of any trading opportunities that emerge,” he added. Despite attempts to reassure investors, Debenhams has to admit low annual profits. The retailer said that profit will be £33 million, compared with previous guidance of £35-40 million. The new estimate is in line with the current market forecasts. “As we stated in June, the board continues to work with its advisers on longer term options, which include strengthening our balance sheet and reviewing non-core assets. This activity is in order to maximise value for shareholders and protect other stakeholders, including our employees,” said Sir Ian Cheshire, the group’s Chairman. Debenhams has issued three profit warnings just this year and has also lost two-thirds of its share price value since the start of this year. The future of the department store is in question after fellow department store House of Fraser fell into administration last month and was rescued by Sports Direct’s Mike Ashley in a £90 million. Ashley is in negotiations with landlords and suppliers to try and keep 80 percent of House of Fraser’s 59 stores open. Shares in the group (LON: DEB) are up 4.17 percent at 11,98 (1424GMT).    

Elon Musk has said that Tesla will ditch two of seven Tesla colour options, in order to ease the production process. The Tesla CEO said on Twitter (NYSE: TWTR) that he will be dropping Obsidian Black Metallic and Metallic Silver. “Moving 2 of 7 Tesla colors off menu on Wednesday to simplify manufacturing,” he said on Tuesday. “Obsidian Black & Metallic Silver will still be available as special request, but at higher price.” From Wednesday, the five remaining colours will be Solid Black, Midnight Silver Metallic, Deep Blue Metallic, Pearl-White Multi-Coat, and Red Multi-Coat. On Friday, Musk sent a note to employees optimistic about the quarter and cars on the production line. “We are the most amazing quarter in our history, building and delivering more than twice as many cars as we did last quarter,” said the note. Musk has been in headlines multiple times over the past year. Last week, the CEO appeared on Joe Rogan’s podcast where he smoked marijuana and drank a glass of whiskey. The following day, the Chief Account Officer Dave Morton and Chief People Officer Gaby Toledano both resigned from the electric car group. His appearance on the podcast caused shares in the group to drop six percent. “It’s particularly troubling given the issues that he has had already,” said Kabrina Chang, an associate professor at the Boston University Questrom School of Business in the US. “If I were a board member or investor, this would not give me a ton of confidence that he’s moving in that direction. It does not seem like forward progress in terms of governance and professionalism of Tesla.” Shares on Friday closed at $263.24 a share, the lowest since April. Shares in Tesla (NASDAQ: TSLA) are currently 285.00.

RedT Energy PLC (LON:RED) has been selected as a preferred supplier of energy storage solutions to the UK public sector. The company has been awarded a place on Essentia’s Battery Storage Framework. Essentia is a wholly owned subsidiary of Guy’s and St Thomas’ NHS Foundation Trust. The selection process was competitive. RedT will be the preferred supplier for several UK public sector projects after being successfully awarded the contract. These include the NHS, and has the scope to extend to the Central Government Estate, Local Authorities, Schools and Universities. The NHS is considered one of the UK’s most energy intensive projects, spending in excess of £750 million on energy annually. RedT will work through the framework to provide energy and cost savings to public sector bodies such as the NHS. CEO of redT, Scott McGregor, commented: “We’re very pleased to have been selected as a framework supplier for the public sector in the UK.” “To be chosen is an important validation of our technology and business models to unlock cheaper energy costs and reaffirms our position as a leader within the energy storage sector. We look forward to working closely with the NHS and other public sector companies to reduce their energy costs and accelerate their clean energy targets in the future” RedT Energy PLC shares were up by 13.75% at 12:00 BST today.

Philip Hammond has confirmed plans to Mark Carney to remain the Bank of England’s governor until 2020. In a statement released on Tuesday, the chancellor said Carney and Sir Jon Cunliffe, the deputy governor have both been reappointed to ensure a smooth Brexit. “I’m delighted that the governor has agreed to stay in his role for a further seven months to support a smooth exit from the European Union and provide vital stability for our economy,” said Hammond in the statement. In reference to Cunliffe, Hammond said: “I’m delighted to announce the re-appointment of Sir Jon Cunliffe for a further term as Deputy Governor, and I’m confident his extensive experience will continue to be a valuable asset to the Bank of England.” The reappointment will officially be made by the Queen, who has been advised by the prime minister and Hammond. In a letter to Hammond, Carney said: “I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit.” “Accordingly, I am willing to do whatever I can in order to promote both a successful Brexit and an effective transition at the Bank of England,” he added. Last week, MPs asked Carney if he would consider remaining on as the Bank of England’s chief to ensure a smooth Brexit. Carney said at the time: “Even though I have already agreed to extend my time to support a smooth Brexit, I am willing to do whatever else I can in order to promote both a smooth Brexit and effective transition at the Bank of England. The chancellor and I have discussed this. I would expect an announcement to be made in due course.” Nigel Farage did not respond well to Hammond’s statement. He wrote on Twitter: “Truly appalling decision to extend Mark Carney’s term at the Bank of England. He is a Remainer, how can we take this government seriously?” In contrast, Nicky Morgan, who chairs the influential Treasury select committee, was more optimistic. “This announcement provides much-needed stability and clarity during this important period. The government should now use the extra seven months to continue its succession planning. It should identify a candidate in good time for the Treasury committee to scrutinise the appointment,” she said.  

The owner of the Cadbury brand is stockpiling ingredients in case of a no-deal brexit, the Times reports. Owner of the multinational confectionary company, Mondelez International Inc (NASDAQ: MDLZ), is stockpiling ingredients, chocolates and biscuits. Mondelez International is one of the world’s leading snack companies. In fact, it markets its products in 165 countries. In addition to Cadbury, its brand portfolio boasts names such as Milka, Oreo, Philadelphia, Ritz and Toblerone. John Cadbury founded the Cadbury brand in 1824 after he opened a grocer’s store in Birmingham, England. He sold cocoa and drinking chocolate which he prepared himself. Since 2010, Mondelez International has wholly owned the confectionary company. As well as the UK, Australia, Canada, Malaysia, New Zealand, Nigeria and South Africa all market the Cadbury brand. The Times has cited Hubert Weber, president of Mondelez Europe: “Like the whole of the food and drink industry in the UK, we would prefer a good deal that allows the free flow of products as that would have less of an impact to the UK consumer. “However, we are also preparing for a hard Brexit and, from a buffering perspective for Mondelez, we are stocking higher levels of ingredients and finished products, although you can only do so much because of the shelf life of our products. We have a contingency plan in place to manage [a hard Brexit], as the UK is not self-sufficient in terms of food ingredients, so that could be a challenge.” Currently, March 29 is the date scheduled to see the UK leave the EU. However, Theresa May’s party is yet to negotiate a full exit deal. Mondelez International is not the only company to establish a Brexit contingency plan. The pharmaceutical companies Dechra and Novo Nordisk UK also announced their no-deal Brexit plans.