Nike appoints new CEO in bid to revive fortunes

📍 Top line: Nike has announced that former senior executive Elliott Hill will return to the company as CEO, replacing John Donahoe, as the firm seeks to revive sales and combat growing competition. Hill, a Nike veteran, previously led the brand’s commercial operations and helped grow the business to $39 billion in annual revenue before retiring in 2020.

Nike revealed in a regulatory filing that the incoming boss will receive an annual base salary of $1.5 million. Hill is set to assume the role on October 14.

🔎 The backstory: Under outgoing CEO John Donahoe, the company's growth has slowed, with estimates predicting that annual sales will decline to $48.84 billion by financial year 2025. Nike has also faced challenges from a lack of innovative and trendy products, causing demand to falter. Competitors like On, backed by tennis legend Roger Federer, and Deckers' Hoka have attracted customers and retail partners with more fashionable sneaker offerings.

📈 Market reaction: Nike shares surged 9% following the news, reflecting optimism about the leadership change amid slowing growth.

Next fears store closures after losing £30 million legal battle

📍Top line: Fashion giant Next is facing potential store closures after losing a landmark equal pay case involving more than 3,500 workers. The employment tribunal found that paying female sales consultants less than warehouse operatives constituted sex discrimination. The pay disparity ranged from £0.40 to £3 per hour, with claimants losing an average of over £6,000 in wages.

Next intends to appeal the ruling, cautioning that if the judgement is upheld, increased costs could lead to store closures, particularly at locations with expiring leases. The company stressed that each store must remain individually profitable.

Elsewhere in Business:

🎰 A new study has revealed that gamblers in Great Britain are wagering £2.7 billion annually on “black market” websites. Approximately 1.5 million Britons are engaging with the illicit industry. However, the a body has warned that stricter rules in the heavily regulated sector may unintentionally fuel illegal gambling activities.

🚗 Volkswagen may cut up to 30,000 jobs as it grapples with a slowing car market and high costs. VW says cost reductions are essential for producing affordable electric vehicles. With the German economy struggling, the nation’s economy minister said the government is considering ways to support the company.

UK interest rates remain unchanged

📍Top line: The Bank of England has held interest rates at 5% in a widely anticipated decision. The Bank's Monetary Policy Committee (MPC), which determines the rate, voted 8 to 1 in favor of maintaining the current level. While inflation has fallen significantly, Bank of England Governor Andrew Bailey emphasised that more evidence of sustained low inflation is necessary before any further rate reductions are made.

Higher interest rates have raised borrowing costs for mortgages and credit cards, which in turn can drive up mortgage rates and rent as landlords cover repayments. However, savers are benefiting from improved returns on savings in the current high-rate environment.

Experts are forecasting possible rate cuts by November, though Bailey has cautioned against reducing rates too rapidly or by too much.

Shortly after the announcement, there was positive news for UK travellers, as the pound surged to a more than two-year high against the dollar, reaching $1.33.

Elsewhere in the economy:

💷 Rachel Reeves received a £10 billion Budget boost as the Bank of England announced it will slow down government bond sales. The adjustment increases the Chancellor’s budgetary leeway, potentially easing the need for significant tax rises or spending cuts in next month’s budget.

🇺🇸 Wall Street surged to new highs on Thursday, spurred by a delayed reaction to the Federal Reserve's significant interest rate cut. After yesterday’s muted market reaction, the S&P 500 rose 1.6%, surpassing its all-time closing record, while the Dow Jones topped $42,000 for the first time.

World-leading software developer Palantir has opened applications for its Product Design grad scheme in London. As a product designer at Palantir, successful applicants will engage with every step of a design journey, from idea inception to delivery. The firm requires candidates to submit a portfolio demonstrating at least one software interface design project. Apply now here.

Studio behind ‘The Hunger Games’ sets sights on AI content creation

📍Top line: Entertainment giant Lionsgate has partnered with AI company Runway to develop a new AI model using its vast film and TV archive. Famous for producing blockbusters like The Hunger Games and John Wick, Lionsgate aims to leverage AI to streamline content creation and improve production efficiency. 

The move comes at a sensitive time, following the 2023 Hollywood actors' strike, where the use of AI in film production was a major point of concern. Critics worry the collaboration could lead to job losses and stifle creativity in the industry.

Writer Helen Delzany warned that the collaboration could lead to "stale" entertainment, while actor Alexander Chard criticized AI’s growing influence, saying, "Our words, performances, and direction are merely to feed the machine until we’re no longer needed."

Runway’s CEO, Cristóbal Valenzuela, played down concerns, stating AI helps solve specific tasks, and does not replace jobs. The AI firm is currently being sued by a group of artists over potential copyright infringement in its AI training methods.

Elsewhere in tech

📱 The EU has warned Apple to open its iOS platform to competitors and third-party developers or face hefty fines. The European Commission has launched proceedings that will specify how Apple should provide effective cross-competitor interoperability via functions such as notifications and device pairing. The move aims to ensure the protection of “fair and open” digital markets and to “guide Apple towards effective compliance”.

🎮 Nintendo has filed a lawsuit against Palworld developer Pocketpair Inc., claiming the hit survival game infringes on multiple Pokémon patents. Palworld, dubbed "Pokémon with guns", gained over 25 million players within a month of its release. Nintendo, known for fiercely protecting its IP, is hoping the lawsuit will deliver compensation for damages to the brand.

📣 Nigel Farage has announced he’s giving up ownership of Reform UK ahead of the party’s conference. Farage holds the majority of shares in the party, which is uniquely set up as a private limited company. The controversial political said this structure was initially to fast-track its creation and prevent takeovers. Despite stepping back from ownership, he will remain leader of the party.

🧑‍🔬 British scientists have stored the complete DNA of a human on a crystal, potentially preserving humanity's legacy if we face extinction. A team from The University of Southampton used lasers to inscribe the data on the crystal, which can endure billions of years without degradation. The technology could also help preserve genomes of endangered species in the future.

🐠 Scientists have discovered a new fish species in the Arabian Red Sea. The "grumpy dwarfgoby" has earned its name thanks to its upturned mouth, giving it a permanently displeased expression. Found lurking in small holes and crevices, this moody little goby is making waves among marine biologists.