Author: WTX Business Team

European markets lose momentum due to economic and political uncertainty in the US and Turkey. Regionals indexes in Germany and France closed mixed on Monday, with investors following U.S. debt ceiling negotiations, an inconclusive Turkish election that must now proceed to a runoff vote, and a higher forecast for EU inflation this year. The European Commission on Monday raised its forecasts for inflation for the euro area to 5.8% this year and 2.8% in 2024, and said it expects the European Central Bank to continue with rate hikes, further weakening lending conditions. However, it also revised its gross domestic product estimates…

Vice and Motherboard owner files for bankruptcy Vice Media Group, the company behind Vice and Motherboard websites, has filed for bankruptcy in the US and could be sold to a group of lenders for $225m. The once-valued $5.7bn digital publisher plans to continue operating throughout the bankruptcy process and aims to emerge as a financially healthier company within two to three months. The lenders have approved $20m of funding to keep Vice Media going through the bankruptcy process. During this time, other firms can submit “higher or better” bids for the media company. If no offer is successful, Vice Media’s…

Weak UK economy in Q1, contracts in March due to strikes The UK economy experienced weak growth in the first quarter of the year, with a contraction in March attributed to strike action, according to the latest statistics from the Office for National Statistics (ONS). The economy saw a modest 0.1% growth between January and March. However, in March, it contracted by 0.3%, primarily due to poor car sales and a struggling retail sector. Sectors like IT and construction contributed to overall growth, while health, education, and public administration faced declines, with “these sectors affected by strikes.” Amidst concerns about…

Elon Musk announces new CEO for Twitter | Tesla shares rise Billionaire Elon Musk has revealed that he has found a new chief executive to lead Twitter, the social media platform he bought in 2022 for $44 billion. Although the new boss’s name remains undisclosed, Musk stated that the transition would occur in six weeks, enabling him to assume the positions of executive chairman and chief technology officer. This move comes as Musk faces pressure to delegate Twitter’s leadership and focus on his other ventures. Following the announcement, Tesla shares experienced a notable rise, indicating positive investor sentiment. Speculation over…

Financial Times – Blood scandal compensation scheme expected to cost taxpayer up to £10bn Summary of the front page The Financial Times leads with the long-running NHS blood contamination scandal. The compensation bill for those affected could reach £10bn, anonymous officials have told the FT. The main picture on the front is from the Victory Day parade in Moscow – usually a lavish affair, but scaled back this year due to the demands of the ongoing war in Ukraine. Today’s top stories Like this article? Leave a comment UK National newspapers Previous image Next image

Virgin Galactic to launch commercial spaceflights in June, shares skyrocket  Virgin Galactic, the space tourism company founded by British Richard Branson, announced that it will resume flights with a test mission in late May and the launch of commercial flights in June. The Unity 25 mission, carrying four company employees, will be the firm’s fifth trip into space and the final assessment before it opens for commercial services. Unlike other companies that use vertical-launch rockets, Virgin Galactic uses a carrier aircraft that drops a rocket-powered plane that soars into space before gliding back to Earth. The crew for the Unity…

UK to officially avoid recession in first half of this year as Bank of England readies twelfth straight interest rate rise The UK is expected to avoid a recession in the first half of 2023, as gross domestic product (GDP) is predicted to rise by 0.1% in the first quarter of the year, according to data from the Office for National Statistics.  Resilient consumer spending and decent business investment are said to be driving the increase in GDP. S&P Global and CIPS have reported that the services sector, which contributes around £2 of every £3 in the UK, is operating…

The most important election of 2023: If Turkey sacks its strongman, democrats everywhere should take heart THE ECONOMIST SAYS Beneath the Topkapi Palace in Istanbul, home to the Ottoman sultans, a monument to another imperious leader has been on display. The Anadolu, Turkey’s first domestically built aircraft-carrier, was ordered into the Bosporus last month, as the country prepared to vote in an election on May 14th that is the most important anywhere in the world this year. By showing off the warship, which is making a campaign tour of the coast, President Recep Tayyip Erdogan hopes to fire up patriotic…

Kids missing out as attractions get pricier according to charity Go Beyond Rising ticket prices for popular UK attractions are putting young people at risk of missing out on important life experiences, according to charity Go Beyond, which gives vulnerable youngsters holidays. The charity warns that higher costs for venues such as castles, historic sites, gardens, zoos and theme parks may leave children isolated and lacking confidence. However, some venues have said that they are simply facing rising costs, such as higher energy prices, rising wage bills and VAT increases, which means they have to pass on some of those…

Financial Times – ECB slows rate rise campaign but warns fight against inflation not over Summary of the front page The European Central Bank has raised interest rates by a quarter of a percentage point, as the central bank’s president warned that the fight against inflation was not yet over, the Financial Times writes. The paper says the president of the Bank, Christine Lagarde, has signalled the rate rise will not be the last such move this year, though adds that “with price pressures down from their peak and a credit crunch looming, many economists think the rate-tightening cycle is…

Big Tech bosses told to protect public from AI risks Tech bosses, including Sundar Pichai of Google, Satya Nadella of Microsoft, and Sam Altman of OpenAI, were summoned to the White House on Thursday and told they have a moral duty to protect society from the dangers of AI. The executives were informed that it was up to firms to ensure the safety and security of their AI products, and that the White House may regulate the sector further.  Recently launched AI products, such as ChatGPT and Bard, have sparked renewed debate over the role of AI in society. While…

The Economist – Survivor nation: As Israel turns 75, its biggest threats now come from within The ECONOMIST SAYS As israel marks its 75th anniversary, take a moment to admire how it has triumphed against the odds. Before it declared independence in 1948 its own generals warned that it had only a fifty-fifty chance of survival. Today Israel is hugely rich, safer than it has been for most of its history, and democratic—if, that is, you are prepared to exclude the territories it occupies. It has overcome wars, droughts and poverty with few natural endowments other than human grit. It…

City AM – Windfall windbags: Labour calls for tougher tax after BP profits CITYAM says Windfall tax-backing politicians were yesterday described as “completely out of ideas” after calling for the already swingeing levy on North Sea operators to go further. The calls were triggered by healthy first quarter profits for BP of around £4bn, announced to markets yesterday morning. Labour’s shadow energy secretary Ed Miliband said the firm was enjoying the “unearned windfalls of war”, although analysts noted the price of natural gas is now lower than it was in the aftermath of Russia’s invasion of Ukraine. Read the business…

India’s Go First cancels flights after bankruptcy Go First, the Indian budget airline, has suspended all flights for the next three days after filing for bankruptcy protection. The company says it will issue full refunds to affected passengers. The airline cites a severe cash flow problem, blaming US engine maker Pratt & Whitney for the need to ground many of its Airbus A320neo planes. According to Go First, the problem caused a revenue loss and expenses amounting to £1bn. The company accused Pratt & Whitney of failing to supply at least 10 serviceable spare leased engines by 27 April 2023,…

Financial Times – Tories to strike ‘sunset clause’ from bill to scrap EU law Summary of the front page Brexit makes the front page of the Financial Times, which looks at reports that the government is due to abandon its target of reviewing or binning all EU-era laws by the end of the year. The paper warns the year-end deadline has alarmed business groups and trade unions, who say it could lead to uncertainty and loss of protections. A particularly expressive picture of Rishi Sunak greeting Italian Prime Minister Giorgia Meloni at Downing Street is featured on the front page…

Financial Times – Call of Duty maker Activision rails at UK for barring $75bn Microsoft deal Summary of the front page Activision, the maker of Call of Duty, said Britain is “clearly closed for business”, according to the FT. The UK competition regulator blocked Microsoft’s $75bn acquisition of the company on Wednesday. The paper says the move drew a “furious response” from the video games maker, which said the ruling contradicted the UK’s ambitions to become an attrac­tive country to build technology busi­nesses. One shareholder told the FT: “It’s a zombie deal now.” Today’s top stories Like this article? Leave…

New CBI boss starts job as crisis continues The Confederation of British Industry (CBI) is facing a crisis as it struggles to survive amid allegations of sexual misconduct. Rain Newton-Smith, former chief economist at the CBI, will take over as director general on Wednesday as the organisation deals with the fallout from claims of workplace harassment, sexual assault and rape. The CBI has admitted failing to fire staff who had sexually harassed female workers and pledged to implement recommendations following an investigation by a law firm. However, several companies including John Lewis, BMW, Virgin Media O2, Aviva, Zurich, Phoenix Group,…

Record number of people relying on food donations The Trussell Trust, the UK’s largest food bank provider, has reported an unprecedented rise in the number of food parcels distributed in the past year. Nearly three million food parcels were distributed, an increase of 37% from the previous year, with 1.1 million of these parcels provided to children. In December, on average, a food parcel was given out every eight seconds. Despite the pandemic and rising cost of living pressures, the Trussell Trust said that low levels of income and an insufficient social security system had caused more people to need…

Bank of England economist says people need to accept they are poorer The Bank of England’s chief economist, Huw Pill, has warned that people in the UK must accept that they are poorer, or else prices will continue to rise. Speaking on a podcast in the US, Pill stated that workers’ demand for higher wages and businesses’ decision to raise prices are adding to inflation, which is currently at 10.1%, far higher than the Bank of England’s 2% target rate. The Bank has raised interest rates in an attempt to reduce spending and slow price rises, but Pill argues that…

Financial Times – Sunak and Hunt pressed to deliver on pledge to mend ties with business Summary of the front page The Financial Times says Jeremy Hunt admitted yesterday that corporate taxes were too high, as business called for the government to make good on promises to mend ties with the private sector. Mr Hunt and Prime Minister Rishi Sunak were addressing corporate leaders at a Business Connect event where bosses called for the return of tax breaks on shopping for overseas visitors, the FT says. The paper observes many attendees were positive about the event, but said Mr Sunak needed…

CITY AM – Bosses exit as economy struggles CITY AM SAYS Chiefs of the UK’s top companies have been exiting their roles at a doubly quick pace over the last year, driven by boards trying to insulate their firms from the economy being whacked by rising prices and interest rate hikes with a change in leadership, a new study out today shows. Some 38 chief executives of Britain’s largest companies left their roles in 2022, more than double the 18 that departed in 2021, according to advisory firm Russell Reynolds Associates. The uptick in CEO turnover has been engineered by…

Financial Times – Sunak launches City charm offensive with new business forum as CBI reels Summary of the front page The Financial Times says Rishi Sunak will hold the first of a series of summits with corporate leaders on Monday as the Tories seek to “repair the damage done by the Brexit years and fend off Labour’s attempts to become the party of business”. The paper says the debut of the “Business Connect” forum, which will bring together 200 senior business figures in London, takes on extra urgency as the CBI teeters on the “brink of collapse”. Today’s top stories…

£55bn withdrawn from Credit Suisse before rescue Credit Suisse has announced that 61.2bn Swiss francs (£55.2bn) left the bank in the first quarter of 2023, revealing the scale of the bank run that prompted its state-backed rescue in March. The bank’s wealth management division saw the assets it managed fall to 502.5bn francs, 29% lower than the same period last year. “These outflows have moderated but have not yet reversed as of April 24, 2023,” Credit Suisse said in a statement. Credit Suisse clients started pulling money out of the bank after it was caught up in the market turmoil…

NBCUniversal boss Jeff Shell ousted after ‘inappropriate relationship’ at work Jeff Shell, the CEO of NBCUniversal, has resigned from the company after an independent investigation into an “inappropriate relationship” with a colleague. Comcast, the parent company of NBCUniversal, has not yet announced who will replace him. Until a new CEO is appointed, NBCUniversal’s senior executives will report directly to Comcast president Mike Cavanagh. Shell, who is married, has been with NBCUniversal for nearly two decades and became CEO in January 2020. During his tenure, he oversaw a shakeup of the company aimed at bringing its traditional TV operations and streaming…

Financial Times – US decoupling from China would be disastrous for both, Yellen warns Summary of the front page The Financial Times reports US treasury secretary Janet Yellen has warned that any effort to decouple from China would be “disastrous”, adding national security measures targeted at Beijing were not designed to “stifle” the economy. The launch of SpaceX’s Starship is the main image on the front of the paper, which says Mr Musk put a positive spin on the spacecraft’s explosion, hailing the launch “an exciting test”. Today’s top stories Like this article? Leave a comment UK National newspapers Previous…