Good afternoon. Some of the world's biggest technology companies were dealt a blow by the European Court of Justice this morning after it ruled that a crucial data sharing deal was invalid.
Companies such as Facebook had relied on the "Safe Harbour" agreement which allowed them to send private data about users back to the United States without breaching European data protection laws.
But the ECJ said the deal struck in 2000 between the United States and the EU was “invalid” and did not sufficiently guarantee the protection of Europeans' personal data and must be struck out.
The case stemmed from a complaint by an Austrian law student and privacy campaigner, Max Schrems, who sued the Irish data protection commissioner, arguing that it had failed to protect him from the prying of US intelligence agencies and urging the suspension of data transfers.
Facebook responded to the ruling by urging the EU and US to find a quick solution. "It is imperative that EU and US governments ensure that they continue to provide reliable methods for lawful data transfers and resolve any issues relating to national security," a Facebook spokeswoman said in an emailed statement to AFP.
So what next and what’s at stake? There’s plenty more on the ECJ ruling on the Business Now live blog.
Meanwhile, the Volkswagen emissions scandal continues to grow. The carmaker admitted this morning that 8 million diesel vehicles in the European Union had been fitted with software capable of cheating vehicle emissions tests, according to a copy of the letter sent to German MPs and seen by Reuters.
The letter, dated October 2 and co-signed by the former government spokesman and current VW chief lobbyist Thomas Steg, says that vehicles with 1.2, 1.6 and 2.0 litre variants of the diesel engine type EA 189 are affected.
But the emissions scandal has done little to halt the surging car market. Motor dealers shrugged off the Volkswagen scandal and sold more new cars last month than any September ever before.
It is traditionally a strong selling month because of the registration plate change and typically accounts for almost a fifth of annual sales. This time round, 462,517 new cars were bought in September - a rise of 8.6 per cent year on year. It is the 43rd consecutive month of sales growth.
That takes new registrations in 2015 through the 2 million mark, up 7.5 per cent at 2.09 million. Depending on the effect of the VW scandal, on-the-road numbers could pass the all-time record set in 2003 of 2.58 million.
Older diesel versions of the VW Golf have been affected by the emissions-related recall, but it remains Britain’s fourth best-selling vehicle. Overall, Volkswagen sales were slower than the general market in September. Robert Lea, our industrial editor, has the full story here.
Meanwhile, UK house prices fell by almost 1 per cent in September from a month earlier. That is the biggest drop in more than a year, according to figures from Halifax.
The latest house price index from the mortgage lender showed that the average cost of a home in the UK fell by 0.9 per cent to £202,859, a considerable dip from the 2.7 per cent rise reported in August.
From a year earlier, house prices increased by 8.6 per cent in three months to September, easing from August’s 9 per cent growth. On a quarterly basis, house prices fell from 3 per cent to 2 per cent, its lowest rate of growth since May.
However, Halifax said that the strengthening demand in housing suggests such a dip is only temporary. Tom Knowles, has the full story here.
Finally, SABMiller has reportedly rejected an informal takeover offer from Anheuser-Busch InBev that it considered too low, according to people familiar with the matter who have spoken to Bloomberg.
As we reported this morning, AB InBev may be reluctant to up its rumoured £42-a-share offer to the £45-plus that the SABMiller board appears to be demanding.
SABMiller today issued a pointed reminder to AB InBev of its growth credentials by bringing forward a trading update scheduled for the day after next week’s deadline for its rival to make a takeover bid.
Have a great afternoon.
Rebecca Clancy
Breaking News Editor, Business
The Times
rebecca.clancy@thetimes.co.uk
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