Author: WTX Business Team

Price of milk and sunflower oil starting to fall Food prices are finally “edging down” even though shopping bills remain high, new data suggests. Research firm Kantar said shoppers paid on average £1.50 for four pints of milk in July, down from £1.69 in March.  Other food staples also dropped, including the average cost of a litre of sunflower oil, which is 22p less than in the spring. It comes as grocery inflation – the rate at which overall food prices rise – remains high but is starting to ease. Prices increased by 12.7% on an annual basis in the…

Japan economy gets major boost from weak currency Japan’s economy – the world’s third-largest – grew much faster than expected in the three months to the end of June. Experts say the country’s weak currency has boosted exports, with its GDP rising by an annualised 6% in the period. The rate of growth is about 2x more than what economists had forecast and marks the biggest rise in almost three years. The fall in the value of the yen helped exporters as Japanese-made goods became cheaper for consumers around the world. Japan’s currency has fallen sharply against major currencies in…

‘I’ve felt incredibly stupid and ashamed. I live in fear. They have my address. They have all my contact details.’

Pub takeaway drinks rules to be continued for 18 months Covid licensing rules that allowed pubs in England and Wales to sell takeaway drinks have been extended until March 2025.  The government decided to keep the licensing rules that allow customers to be severed alcohol through hatches when pubs were forced to close under pandemic rules in 2020. The rules allow pubs without an off-premises licence to see takeaway alcohol without needing to apply to their local council for permission. The rules were set to expire on 30 September, having already been extended twice during the pandemic. The move was…

Financial Times – Chinese tech giants in race for $5bn of Nvidia chips to drive AI ambitions Summary of the front page The Financial Times says China’s internet giants are rushing to acquire high-performance chips vital for building generative artificial intelligence systems, making orders worth $5bn in a buying frenzy fuelled by fears of new US export controls. The paper says the tech firms are rushing to acquire Nvidia chips following a series of measures unveiled by the Biden administration designed to limit Chinese access to advanced technology. Today’s top stories Like this article? Leave a comment UK National newspapers

Halifax joins rivals in cutting mortgage rates Halifax is poised to make significant reductions to interest rates on select fixed mortgage options, potentially alleviating financial strain for some homeowners. The largest mortgage provider in the UK will implement rate cuts of up to 0.71 percentage points starting Friday. Notably, a five-year fixed mortgage package will now be priced at 5.39%, down from its previous rate of 6.10%. Similar moves have been made by other lenders such as HSBC, Nationwide, and TSB, who have also adjusted their rates. The recent uptick in mortgage rates can be attributed to the Bank of…

The Economist – The Overstretched CEO How to run a business in a dangerous and disorderly world THE ECONOMIST says chief executives have long had to be contortionists, balancing the needs of employees, suppliers and above all shareholders while staying within the limits set by governments. But the twisting and stretching is now more fiendish than ever. The world is becoming dangerous and disorderly as governments try to manipulate corporate behaviour. Global companies and their bosses find themselves being pulled in all directions. Few multinationals are unscathed. As tensions between China and America ratchet up, chipmakers from Micron to Nvidia…

CITY AM – Inflation panic: It’ll be over by Christmas CITY AM says Inflation may remain above the Bank of England’s two per cent target for the next few years as price increases have increasingly spilled over into the wider economy, a think tank warned today. According to forecasts from the National Institute of Economic and Social Research (NIESR), inflation is forecast to fall to 5.2 per cent by the end of this year, before falling to 3.9 per cent by the end of 2024. Beyond next year, the think tank forecasts inflation to fall to 2.3 per cent in…

Financial Times – Universal and Google in talks over licensing AI-made music Summary of the front page Google and Universal Music’s talks over licencing AI-generated melodies and voices is the lead story in the Financial Times. The talks are in response to the rise of “deep fake” songs which have managed to convincingly replicate real artists. There’s no imminent “product launch”, says the paper, but the discussions could pave the way for software to be developed allowing users to create tracks using artists’ voices legitimately. Today’s top stories Like this article? Leave a comment UK National newspapers

Public could receive hundreds of millions as water firms face sewage lawsuit The Guardian says The public could receive hundreds of millions of pounds in compensation in the first class action against water companies which are alleged to have failed to reveal the true scale of raw sewage discharges, and abused their position as privatised monopolies. A collective case against six water companies alleges they have failed to properly report sewage spills and pollution of rivers and seas to the Environment Agency and Ofwat, the regulator for England and Wales. The first of six parallel claims is against Severn Trent…

Shops offering discounts to tempt hard-hit customers Shops are trying to tempt customers back by offering up promotions as July’s wet weather has hit businesses. Clothing and shoe sales declined last month – usually, a busy month for fashion, as shoppers held back from buying their summer clothes. But a report on retail sales said there was a “big rise” in offers designed to persuade shoppers back. On top of the wet weather, the cost of living crisis and rising interest rates have also impacted customer spending.  “We are starting to see a big rise in the number of promotions…

Cost of living: Beyond Meat hit as inflation squeezes shoppers The UK’s cost of living crisis has seen vegan food company Beyond Meat take a huge sales knock – almost a third, as the rising cost of living is squeezing shoppers.  The company says net revenues fell by 30.5% for the three months to the end of June, compared to a year earlier. Shares of the company fell by almost 12% in extended trading in New York. The meat-substitute company announced, last year, plans to cut almost a fifth of its workforce to save around £30.6 million. On Monday, the…

Financial Times – European companies’ Russian units suffer E100bn hit from Ukraine war Summary of the front page The Financial Times leads on a report that Europe’s biggest companies have suffered “at least €100bn [£86bn] in direct losses” from the sale, closure or reduction of Russian businesses since the start of the war in Ukraine last year. “Penalty pain” is how the paper describes the woes of the US women’s football team, whose “World Cup dream is over”. The US squad – one of the top contenders to win the World Cup in Australia and New Zealand – lost by…

Budget retailer Wilko set to call in administrators, risking 12,000 jobs The Guardian says Budget retailer Wilko has warned it plans to appoint administrators in a move that could put 12,000 jobs at risk. The household and garden products retailer, which has about 400 stores, said in a notice of intention filed at the high court on Thursday that it had appointed advisory firm PricewaterhouseCoopers to try to find a buyer in recent months in a bid to secure the additional cash to keep trading. The cut-price retailer has struggled amid the tough economic climate and last year borrowed £40m…

Financial Times – Trump team seeks to derail ‘absurd’ push for speedy trial before election Summary of the front page The plan for a post-Brexit rival to the EU’s ‘CE’ product-quality mark has been ditched after business leaders warned ministers that it was tying manufacturers in red tape, that’s according to the Financial Times. Lauren James is mobbed by team-mates in a picture at the top of the paper, as she helped England soar past China to set up a knock-out clash with Nigeria. Today’s top stories Like this article? Leave a comment UK National newspapers

Financial Times – Business ‘breathes sigh of relief’ after post-Brexit goods safety mark ditched Summary of the front page The plan for a post-Brexit rival to the EU’s ‘CE’ product-quality mark has been ditched after business leaders warned ministers that it was tying manufacturers in red tape, that’s according to the Financial Times. Lauren James is mobbed by team-mates in a picture at the top of the paper, as she helped England soar past China to set up a knock-out clash with Nigeria. Today’s top stories Like this article? Leave a comment UK National newspapers

Every square inch has value.

Financial Times – Approvals for mortgages and consumer credit jump Summary of the front page Mortgage approvals rose in June and consumer credit grew at its fastest for five years, says the Financial Times. The front page carries an image of Stuart Broad – who brought an end to a glittering career at the fifth and final Test of the Ashes – the paper nods to his delivery which clinched victory for England in another dramatic series. Today’s top stories Like this article? Leave a comment UK National newspapers

Tax jumps on wine and spirits but falls on fizz Drinks could start to cost more from Tuesday after the Treasury announced a major shake-up of the way alcohol is taxed.  Under the Treasury’s “common-sense” principles, tax is being levied according to a drink’s strength. Duty will increase overall, with most wines and spirits seeing rises, but will fall on lower-alcohol drinks and most sparkling wine. Taxes on draught pints will not change, an additional measure designed to support pubs. These changes were originally planned for February this year but were postponed by the chancellor as the cost of living…

The UK’s Civil Aviation Authority (CAA) has said it is taking enforcement action against Wizz Air.

Financial Times – Britain makes it cheaper to pollute by watering down carbon market scheme Summary of the front page The government has made it cheaper for industry to pollute in Britain compared with the EU by watering down carbon reforms, in a sign the Tories are backsliding on their climate agenda, writes the Financial Times. The front page also reports on the Moscow drone attack. The paper’s lead image shows workers dismantling debris on a damaged skyscraper in the Russian capital. Today’s top stories Like this article? Leave a comment UK National newspapers

Financial Times – Flavel resigns as Coutts chief after accepting blame for Farage furore Summary of the front page Coutts chief executive Peter Flavel has become the “latest finance head to roll” following the controversy over Nigel Farage’s bank account, the Financial Times reports. The front page also looks at how British Gas’s first-half profits have surged nearly 10-fold to almost £1bn, which could threaten to reignite anger at the energy sector’s large gains while households have struggled to pay soaring bills. Today’s top stories Like this article? Leave a comment UK National newspapers

NatWest chair Sir Howard Davies says he won’t quit over Farage row Sir Howard Davies, the chair of NatWest, has said he will not quit after initially backing former boss Dame Alison Rose in the Nigel Farage banking scandal. Sir Howard said on Friday he would continue at the bank to ensure “stability” after the resignations of Dame Alison and boss of Coutts. NatWest is 39% owned by the taxpayer. Sir Howard said: “We do have the support of our main shareholder.” Following Dame Alison’s resignation, Peter Flavel, the chief executive of Coutts, a subsidiary of NatWest where Mr Farage…

Netflix touts $900k AI jobs amid Hollywood strikes Striking Hollywood actors and writers have expressed their anger at Netflix after the company posted a job advert for an artificial intelligence (AI) expert. One of the key areas of concern for those striking is the future use of AI within the Hollywood industry. The new position would see the successful applicant working within the Machine Learning Platform team – which drives the Netflix algorithm helping users pick new programs to watch. Adding to the outrage is the role pays up to $900,000 (£700,000) per year. Hollywood unions are striking over pay…

British Gas: Anger as energy bill change leads to record profits Anger erupts as British Gas announces record half-year profits while many households struggle to afford energy costs. With profits reaching £969m, price cap increases contributed significantly to their financial gains. Ofgem claims the profits are a “one-off” due to regulatory changes. However, poverty campaigners view these profits as evidence of a broken energy system in the UK. Approximately half of the profit came from adjustments made to the price cap by the energy regulator. During the pandemic, Ofgem raised the allowance for suppliers to cover their incurred costs from…