Global stocks rally on US-China trade optimism; Greencore-Bakkavor food giant deal faces UK competition concerns – business live

7.55am GMT Introduction: Global stocks rally on US-China trade optimism Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. Asian stocks are rallying, after Donald Trump said the US and China are set to “come away with” a trade deal. The current trade truce is set to expire on 1 November, but hopes of an extension lifted stocks across Asia. US officials expect Beijing to postpone export controls on rare earths, following trade talks in Malaysia over the weekend. Treasury secretary Scott Bessent said on Sunday that US and Chinese officials had drawn up a “very substantial framework” for a trade deal. Japan’s Nikkei jumped by 2.5% through the 50,000 mark for the first time, while South Korea’s Kospi climbed 2.6% to a record high. Hong Kong’s Hang Seng rose by 1% and mainland Chinese exchanges in Shanghai and Shenzhen gained 1.2% and 1.5% respectively. Stock futures are pointing to a higher open in Europe and on Wall Street later. On Friday, the S&P 500 and the Nasdaq in New York, and the FTSE 100 in London, hit record highs after US inflation data fuelled hopes of interest rate cuts. Trump is due to meet Chinese president Xi Jinping later this week in South Korea during his Asia tour. The US president told reporters on Air Force One on the way to Japan from Malaysia: I’ve got a lot of respect for president Xi and I think we’re going to come away with a deal.We have China coming and its going to be very interesting. He reiterated: I think we’re going to have a deal with China. We’re going to meet them later in China and we’re going to meet them in the US, either Washington or Mar-a-Lago. Trump added he might sign a final deal on TikTok on Thursday. The price of gold fell by 1% to $4,069 an ounce, as demand for safe-haven assets weakened. In recent weeks, the precious metal scaled new record highs. Oil prices rose modestly, as the prospect of a trade deal eased fears that a trade war between Washington and Beijing could hurt exports and economic growth, and dent demand for crude. Following the latest US sanctions on Russia over its war in Ukraine, there are concerns that Moscow could offset them – targeting Rosneft and Lukoil, by offering deeper discounts and using shadow fleets to lure buyers, said IG market analyst Tony Sycamore. In the UK, the competition regulator said it could launch a full investigation into the UK’s largest sandwich maker Greencore’s planned £4bn takeover of rival Bakkavor. The Competition and Markets Authority found that the deal could result in a “substantial lessening of competition” in the supply of own-label chilled sauces to supermarkets, and will begin an in-depth probe, unless both companies address the concerns. There are only two other (weaker) competitors in this area, 2 Sisters Food Group and Billington Foods. The regulator cleared the deal in Italian chilled ready meals and salads, where it judged enough competition will remain. Both Greencore and Bakkavor have until 3 November to come up with remedies. Greencore chief executive Dalton Philips said: We are now working with the CMA and Bakkavor for the benefit of all our stakeholders to complete the Bakkavor transaction early next year. Bakkavor was founded by two Icelandic brothers, known as “business vikings” who are set to make millions from the deal, if it goes ahead. The company makes products including dips and hummus for Tesco and high-protein salads and “Gastropub” ready meals for Marks & Spencer. The Agenda 9am GMT: Germany business climate for October 11am GMT: UK CBI Distributive Trades for October Updated at 7.59am GMT