Shares in Just Eat Takeaway collapsed after the company engaged in an arm struggle with New York City Council and Mayor Bill de Blasio.
The takeout app has been told by the city that its US branch Grubhub must limit the commissions it charges restaurants in the Big Apple.
Grubhub and other giants like Uber Eats had charged restaurants commissions of up to 30 percent to deliver their food, something the restaurants said had ruined their finances.
Cost restriction: Just Eat has been told by the City of New York that its US branch Grubhub must limit commissions for restaurants in the Big Apple
A bill being introduced will limit the amount delivery apps can charge restaurants to 15 percent of food orders. Grubhub has argued that the rules are “unconstitutional” and promised to challenge the action.
But Mayor de Blasio fully supports the legislation, which could become law before the end of the year.
Stock Watch – Air Partner
Shares of airline charter service Air Partner rose after it said wealthy Americans were hiring enough private jets for their vacations to make up for the loss of business travelers.
Air Partner said bookings in the US were higher than before the pandemic in the first six months of the year.
Strong demand from wealthy customers going on vacation offset the decline in business travel caused by Covid.
In Europe, however, activity remains ‘limited’.
Bosses expect to confirm that the company has made £3.7m profit in the six months to the end of July.
Shares rose 2.1 percent or 1.8 pence to 86.4 pence.
He said, “We want to make sure people are treated fairly and the NYC City Council saw something that wasn’t fair to ordinary people going through so much.”
The battle between New York and the delivery apps has been raging for nearly two years, and it’s clear the companies have spent millions of dollars lobbying each other.
But it seems the efforts have failed and there are fears that other major cities around the world could follow suit.
Just Eat shares fell 7.5 percent or 519p to 6407p, while rival Deliveroo suffered slightly less, dropping just 0.6 percent or 2.2p to 362.8p.
The session focused heavily on America, with the FTSE 100 rising 0.32 percent or 23.03 points to 7148.01, boosted by US Federal Reserve Chairman Jerome Powell.
He calmed investor fears and managed to avert a large scale run-down attack. In his Jackson Hole speech, Powell said the central bank will likely begin winding down by the end of the year, but added that there was “a lot of ground to cover” before rate hikes.
A real estate agent said, ‘I was ready for a full-scale tantrum. But actually Powell was moderate.’
But the big gains were led by oil producers when producers ceased operations in the Gulf of Mexico in preparation for Tropical Storm Ida. As a result, Brent Crude traded 1.26 percent higher at $72.38 a barrel.
Shell, BP, BHP, Chevron and Equinor were among the companies that have removed hundreds of workers from their platforms and removed ships from the area.
The closures are expected to take hundreds of thousands of barrels of oil off the market every day.
Shares in BP gained 2 percent, or 3.95p, to 302.5p. Shell climbed 1.5 percent, or 20.8 pence, to 1449.4 pence.
Unbeatable were the mining giants as prices rose on the London Metal Exchange.
Platinum, copper and aluminum all made gains. Anglo American climbed 3 percent or 90p to 3084p, Glencore added 2.3 percent or 7.45p to reach 332.55p and BHP rose 2.2 percent or 48p to 2280p.
But Sainsbury’s fell after analysts at UBS rejected reports that the supermarket could be a takeover target.
A report from last Sunday said Apollo was interested in the supermarket chain, but analysts at UBS said the lack of a statement from the US private equity firm meant interest in the grocer “may have been exploratory.”
UBS downgraded the chain’s rating to 300p, with the stock falling 2.9 percent or 9.4p to 310.4p.
Further down the market, the much-followed Lindsell Train Investment Trust fell 5.9 percent, or 97.5 pence, to 1,550 pence.
Lindsell is exposed to consumer stocks such as Diageo (0.2 percent or 6p, up to 3487.5p) and Unilever (0.4 percent or 17.5p, up to 4045p), which performed well during the lockdown but have fallen since restrictions were lifted. relaxed .
The mid-cap FTSE 250, meanwhile, rose 0.45 percent, or 107.33 points, to 24,059.72.
Some links in this article may be affiliate links. If you click on it, we can earn a small commission. That helps us fund This Is Money and use it for free. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.