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Business — Graeme Wearden
Global food prices jumped as hot and dry weather hits sugar production
World food prices have jumped again, as the summer heatwave hit agriculture production.
The UN Food and Agriculture’s Food Price Index, which tracks a basket of food commodities around the world, rose by 1.9% in August compared with July.
All commodity groups recorded higher price indices than in the previous month, the FAO says.
Sugar price surged by 11.9% in the month – a really large jump – partly due to unfavourable weather.
Persistent hot and dry weather led to a downward revision of sugarbeet yield forecasts in the European Union, where planted area was already anticipated to decline from the previous season, while El Niño-related weather conditions continued to affect production prospects in key producing countries in Asia.
Cereal rose by 2.2%, due to “robust demand, weather-related concerns over crop prospects in key producing regions, and continued uncertainty surrounding Black Sea export flows”.
Vegetable oil prices were up 0.6% in the month, driven by higher world palm and soy oil prices. The FAO points to “robust global import demand and concerns over the potential impact of El Niño-related weather conditions on production prospects in Southeast Asia”.
Meat prices rose 1%, due to higher poultry, pig and ovine meat prices.
Dairy prices were up 2.3%. The FAC points out that “In the European Union, tightening milk supplies, compounded by hot and dry weather in several major producing regions, supported prices, while sustained import demand added upward pressure”.
It’s official, UK car sales jumped last month.
New car registrations rose by 13.7% to 94,236 units in August, the Society of Motor Manufacturers and Traders has reported.
That, they say, is the “best August since the introduction of the biannual plate change”.
August is usually a low-volume month for car sales, as some buyers hang on until September to get a new number plate to show off ( which has always slightly baffled me ).
Electric-powered cars drove sales up in August, the SMMT explains:
Plug-in hybrid electric vehicles (PHEVs) posted the strongest growth, up 39.8% to account for 14.5% of registrations, while hybrid electric vehicles (HEVs) rose 26.3% with 12.7% of the market. Battery electric vehicles (BEVs) increased 27.7% to claim 29.8% of overall uptake.
Shares in Israel’s Navitas Petroleum, which is also involved in the Sea Lion project, have dropped by 4.5% on the Tel Aviv stock market.
Navitas and Rockhopper are partners in the Sea Lion oil drilling project near the Falkland Islands.
Rockhopper are not alone in feeling the impact from Javier Milei’s speech.
Shares in Borders & Southern , an oil and gas exploration company which operates around the Falkland Islands, are down 15% in early trading.
Rockhopper shares plunge as Argentina threatens Falklands oil sanctions
The value of UK-based oil and gas exploration and production company Rockhopper Exploration plunged by 10% at the start of trading in London, after Argentina’s president threatened to sanction oil firms operating near the Falklands Islands.
Rockhopper has drilling interests in the Falklands, having discovered significant oil reserves in the Sea Lion prospect to the north of the islands back in 2010.
But those interests have come under threat, with Javier Milei claiming overnight that the Sea Lion oilfield was a “clear and present danger”.
Milei claimed that the ‘winds of change’ support Argentina’s claim to the Falkland Islands, telling a national TV address:
Any further advance on the Malvinas Islands will be considered a violation of our national security.”
The Sea Lion oil project is about 220 kilometers (140 miles) north of the Falklands, and Rockhopper Exploration and Israel’s Navitas Petroleum plan to begin drilling in the coming months and start pumping oil in 2028.
Related: President Javier Milei says ‘winds of change’ support Argentina’s claim to Falkland Islands
Shares in Rockhopper (named after the penguin which is native to the Falkland Islands) are currently down 9% at 71.1p, having hit a two-month low at the start of trading.
VW shares jump after massive job cuts agreed
Shares in Volkswagen have jumped by 7% in early trade in Frankfurt, Reuters reports, after the company agreed the biggest restructuring in its history.
That confirms that investors had not expected VW’s supervisory board to back the plan, and had feared conflict between management and unions.
Deutsche Bank: This is a 'fundamental breakthrough' by VW
Investors will cheer Volkswagen’s supervisory board’s decision to back its sweeping restructuring plan, argues Deutsche Bank analysts.
The unanimous approval of Volkswagen’s Zukunftsplan 2030 last night is, in our view, a fundamental breakthrough and a much-better-than-feared outcome. We expect the market to react positively.
Virtually every single one of the numerous investors we spoke to over the last few days continued to view Volkswagen as simply “not fixable”, and scepticism around the likelihood of a comprehensive agreement remained extremely high.
Financial analysts are applauding Volkswagen for reaching agreement on its 50,000 job cuts.
Citi have congratulated VW management, the VW workers council and the representatives from the State of Lower Saxony for appoving the company’s Future Plan 2030.
This is a brave plan and a realistic decision for all concerned. As we have highlighted, given VW’s German plant competitiveness and lack of global revenue opportunities, VW simply had no other choice. The plan will allow VW to cut costs, to cut the number of models (and complexity), and to sharply cut investment spend by a further €6bn p.a. (per year)
This decision should further allow VW to continue to move capital to its highest-return brands and models, without the need to maintain excess capacity utilisation. Whilst VW’s LT EBIT targets remain ambitious, VW has once again proved its progress in recent years.
Elsewhere in the car sector, Volkswagen’s supervisory board has agreed to back a sweeping overhaul that will cut another 50,000 jobs and could lead to plant closures.
VW announced last night that “after intense and constructive discussions”, the Supervisory Board has unanimously approved the comprehensive Future Plan 2030 drawn up by chief executive Oliver Blume.
“The Supervisory Board has unanimously approved the Executive Board’s Future Plan presented today. This is a strong signal for the future of the Volkswagen Group. We are taking responsibility for our entire workforce, for our partners and for industrial jobs worldwide. Over the coming years, we will invest a three-figure billion sum to make our iconic brands even more attractive, stronger and more competitive.”
The VW Supervisory Board includes employee and shareholder representatives, and it wasn’t clear that they would approve Blume’s plans.
These cuts are on top of 50,000 already agreed, as VW battles with competition from China, weak sales in Europe, and automobile tariffs set by Donald Trump.
Related: Volkswagen announces it will cut 100,000 jobs by 2030
UK car sales log strongest August since 2018
Registrations of new cars in the UK rose about 13% to more than 90,000 in August, preliminary industry data showed on Friday.
If confirmed at 9am, when the final data is issued, that would be the highest number for an August in eight years.
The latest data from the Society of Motor Manufacturers and Traders is also expected to show that the market share of battery electric vehicles rose to about 30% in August.
Yesterday, data from New AutoMotive showed a 17.5% jump in overall new car registrations in August.
Introduction: Data splurge ahead, and a Bailey speech
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
After a week of bond market jitters, today we’re going to get some fresh insight into central bankers’ thinking, and the health of the UK and US economies.
Bank of England governor Andrew Bailey is due to speak in London this morning – a day after his chief economist called for higher UK interest rates. Will Bailey – among the majority who voted to leave rates on hold in July –push back?
Opponents of rate rises point out they hurt growth, and won’t tackle the oil supply shock caused by the Iran war.
This morning, a survey of UK builders will show how they’re coping, while the UN’s latest food price index will show if stables such as dairy, cereals, sugar, and meat are getting even pricier.
Then this afternoon, the Non-Farm Payroll will show how many jobs America added last month. Back in July, the NFP showed a shock fall in employment – economists expect a rebound in August, with forecasts for around 56,000 new jobs.
9.30am BST: Bank of England’s Monthly Decision Maker Panel data - August 2026
9.30am BST: ONS Economic activity and social change in the UK, real-time indicators
9.50am BST: Andrew Bailey gives keynote speech at LSE TRIUM Anniversary Conference, London
1.30pm BST: US non-farm payrolls jobs report
World food prices have jumped again, as the summer heatwave hit agriculture production.
This report is published with credit to theguardian.com. Full available text from the wire is above. Read on theguardian.com →
Source: theguardian.com · Graeme Wearden. Published 4 Sept 2026, 08:32 am.
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