Author: WTX Business Team

CITY AM SAYS New figures out on Friday are expected to show that the economy contracted in the third quarter, raising the possibility that the UK is already in a recession.

Energy secretary admits Rishi Sunak’s north sea oil expansion plans ‘won’t bring bills down’ The Independent says The energy secretary has admitted that Rishi Sunak’s flagship energy policy will not bring household bills down. Claire Coutinho was quizzed about the government’s plans to expand North Sea oil and gas exploration expected to be announced in the King’s Speech tomorrow. The prime minister will declare the drive, which would invite annual applications for new licences to drill for oil and gas, will protect jobs and boost energy security “without adding undue burdens on households”. https://www.independent.co.uk/news/uk/politics/energy-bills-oil-gas-sunak-net-zero-b2442312.html

Annual oil and gas licences planned with net zero commitment required BBC News says Licences for oil and gas projects in the North Sea are set to be awarded annually, under government plans. There is currently no fixed period between licensing rounds – but this would change under a bill to be announced in Tuesday’s King’s Speech. Ministers said projects would have to meet net zero targets and claimed the policy would “bolster energy security”. Greenpeace said encouraging oil and gas production was “backward-facing” and vowed to fight new licences in court. The plans draw a dividing line between the…

Rishi Sunak to unveil North Sea annual oil and gas licensing bill FT says New legislation to mandate annual North Sea oil and gas licensing rounds will be at the heart of the King’s Speech on Tuesday, as Rishi Sunak looks to exploit a policy divide with Labour ahead of the next UK general election. The prime minister insisted the bill, which would allow companies to bid yearly for new licences to drill for fossil fuels in the North Sea, would protect jobs and strengthen Britain’s energy security by reducing its exposure to volatile international markets. The announcement, which comes…

British Steel plans to shut furnaces putting up to 2,000 jobs at risk More than 2,000 jobs are at risk as British Steel announces its plans to close down its blast furnaces in Scunthorpe. The business, owned by China’s Jingye Group, wants to replace them with two electric arc furnaces – one at Scunthorpe and one at Teesside. The construction is expected to take between two and three years. British Steel said it aimed to transform the firm into a “green and sustainable company” and had to look at different scenarios to help it do this. The shift could lead…

The Financial Times reports that Rishi Sunak is set to unveil a bill to allow the ability to grant new licences to drill for more North Sea oil and gas.

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Elementor #560093 November 3, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Interest rates held at 15-year high of BoE warns of stagnating economy  The Financial Times reports on Thursday’s news that the Bank of England will not raise interest rates further – although they will remain at the current 15-year high of 5.2%. The paper says that output is likely to remain stagnant throughout 2024, and that there is even a risk of an “outright contraction” of the economy. Today’s top stories Like this article? why don’t you share it? its easy … just…

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Shell posts $6.2bn profit as oil prices rise again Shell has recorded strong profits again, helped by oil prices rising again. The oil and gas giant reported earnings of £5.1 billion ($6.2bn) between July and September, up sharply on the previous quarter. Profits were down from $9.4bn in the same period last year, however, when Russia’s invasion of Ukraine caused a spike in oil and gas prices. Oil prices are currently lower than that period, but have risen recently. That is largely due to members of the Opec+ group of oil-producing nations cutting output to support the market.

Elementor #559764 November 2, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Feds keep rate at 22-year high as investors bet BoE following suit  The news that the US Federal Reserve is holding interest rates at a 22-year high is the splash in the Financial Times, with the paper reporting investors are betting on the Bank of England following the example set by its American counterpart. The paper also talks about the Bletchley Park summit – but only to say it was “upstaged” by the announcement that the US would set up its own institute…

House prices in surprise October rise but still down on last year Nationwide data shows house prices had the biggest monthly rise in October for more than a year.  However they were still down on a year ago, Nationwide said. The 0.9% rise in prices was most likely due to there not being enough properties to meet demand, it said. Activity in the housing market is still “extremely weak”, it added, as buyers grapple with higher mortgage rates. “This is not surprising as affordability remains stretched,” said Robert Gardner, Nationwide’s chief economist. “Market interest rates, which underpin mortgage pricing, have…

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City AM – HSBC buyback bonanza after profits double HSBC to buy back $3bn in shares as profits more than double CITY AM SAYS HSBC announced yet another share buy-back programme as higher interest rates ensured that profit more than doubled in the third quarter. Despite falling short of analyst expectations, the bank still posted a quarterly profit of $7.7bn (£6.3bn), up from $3.2bn (£2.6bn) in the same period last year. The higher rate environment helped lift revenue by 40 per cent. Part of the increase last year was also due to a large impairment taken in the third quarter…

The Financial Times reports Israel has expanded its ground offensive into Gaza in what Benjamin Netanyahu said was a new phase of its “long and hard war” to destroy Hamas.

The Economist – America’s Test – American power: indispensable or ineffective? THE ECONOMIST SAYS As massed Israeli troops await the command to invade Gaza, two hulking us Navy aircraft carriers have been sent to support Israel. Their task is to deter Hizbullah and its sponsor Iran from opening a second front across the Lebanese border. No other country could do this. The carriers are a 200,000-tonne declaration of American power at a time when much of the world believes that American power is in decline. The coming months will test that view. It is hard to exaggerate the stakes. On October…

CITY AM – Hold the line Bank of England set to leave rates on hold as economy teeters on edge of recession CITYAM SAYS The Bank of England looks set to leave interest rates on hold for a second time in a row when it meets on Thursday as the central bank attempts to bring inflation down to target without tipping the economy into a recession. Economists think a majority of the rate-setting Monetary Policy Committee (MPC) will back leaving the Bank Rate at 5.25 per cent despite inflation remaining well above the Bank’s two per cent target, at 6.7…

The Financial Times reports Israel has expanded its ground offensive into Gaza in what Benjamin Netanyahu said was a new phase of its “long and hard war” to destroy Hamas.

Financial Times – Resilient consumer spending spurs US economy to 4.9% GDP growth FINANCIAL TIMES SAYS the US economy expanded faster than expected in the third quarter, growing at its quickest pace in almost two years in the latest sign of the country’s economic resilience despite high interest rates. Strong consumer spending was the main driver of a 4.9 per cent annualised increase in gross domestic product, according to preliminary figures from the commerce department’s Bureau of Economic Analysis. That was a jump from a 2.1 per cent rate in the second quarter, and the strongest figure since the fourth…

CITY AM – Fintech fund in failed talks with treasury Fintech Growth Fund: Treasury rejects pleas for cash as questions swirl on funding CITY AM SAYS A much-hyped Fintech Growth Fund has been secretly lobbying the Treasury for support as questions swirl over how much money it has been able to raise from the private sector, City A.M. can reveal. The Fintech Growth Fund, which ‘launched’ this August as a private sector-led initiative with Lord Philip Hammond as its chair, was formed on the back of a recommendation in the landmark Kalifa Review of Fintech in 2021, which proposed a…

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Elementor #557636 October 26, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Treasury rout deters US companies from borrowing as finance costs soar  The FT reports turmoil in government bond markets and a rise in corporate borrowing costs have “forced US companies to delay borrowing plans” and led to the slowest October for debt issuance since 2011. The paper says many businesses “stretched out” the maturity of their debt – the date at which the debt has to be repaid – during the period of low interest rates after the pandemic and now have the…

Elementor #557318 October 25, 20231 Min Read Summary of the Top 6 headlines today The Financial Times – UN Chief denounces ‘clear violations’ of international law in Gaza conflict  Financial Times says United Nations chief Antonio Guterres has claimed there are “clear violations” of international law taking place in Gaza. “Protecting civilians does not mean ordering more than 1 million people to evacuate to the south [of Gaza], where there is no shelter, no food, no medicine and no fuel, and then continuing to bomb the south itself,” he said. The paper says the remarks “triggered a furious response from…

Elementor #556994 October 24, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Chevron doubles down on fossil fuel wager with $53bn swoop for Hess  The Financial Times reports that US energy giant Chevron is “doubling down” on its belief that demand for fossil fuels will stay high in the coming years after it agreed to buy gas producer Hess for $53bn. The paper says the move will give Chevron “a foothold in Guyana, home to the biggest oil discovery of the past decade” and that it shows the company is “doubling down on its bet…