Tesla is facing a spiralling investor revolt over Elon Musk’s $56bn pay deal. Elsewhere, the Treasury has sold shares in NatWest to the tune of £1.2bn, further reducing its stake, and UK house prices made a recovery in May.
5 things to start your day
1) Income growth under the Tories ‘worst in generations’ | Higher taxes and slower wage growth hit middle-class households hardest
2) Ryanair wins victory against ‘pirate’ eDreams in battle over ticket sales | An Italian regulator has refused eDreams’ request for an injunction against Ryanair
3) Burberry boss denied bonus as profits slump by 40pc | Chief executive’s total pay drops 70pc year-on-year to £1.3m
4) Maker of £400 ‘dirty’ trainers worn by Taylor Swift announces £2.6bn stock market listing | Venice-headquartered Golden Goose plans to float on the Euronext market in Milan
5) Electric car prices to fall further as carmakers scramble for buyers | Carmakers racing to boost sales as net zero targets loom, Auto Trader says
What happened overnight
On Wall Street, the S&P 500 dropped 0.6pc, to 5,235.48, while the Dow Jones Industrial Average of 30 leading US companies fell 0.9pc, to 38,111.48. The Nasdaq Composite index lost 1.1pc, to end the session at 16,737.08.
The yield on benchmark US 10-year Treasury bonds fell to 4.548pc, from 4.624pc late on Wednesday.
Hong Kong stocks rebounded on Friday morning after three days of losses, helped by data indicating the US economy grew slower than expected in the first quarter.
The Hang Seng Index climbed 0.98pc to 18,409.62, the Shanghai Composite Index edged up 0.10pc to 3,094.76, while the Shenzhen Composite Index on China’s second exchange was marginally higher, inching up 0.72 points to 1,726.85.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.55pc, pushing away from the three-week low hit on Thursday. The index is set for a 1.4pc decline for the week but is up 2.7pc in May, rising for the fourth straight month.
Japan’s Nikkei was up 0.20pc and is flat for the month.