Author: WTX Business Team

Sam Bankman-Fried was not surprised by $8bn FTX shortfall, key witness says The Guardian says Sam Bankman-Fried was not surprised to discover a huge $8bn shortfall in the days before the collapse of FTX, his now bankrupt cryptocurrency exchange, according to testimony from his former business partner. The testimony came from Gary Wang, the co-founder of FTX, during his second day on the witness stand in Bankman-Fried’s fraud trial. Bankman-Fried is facing seven counts of conspiracy and fraud over the dramatic collapse of FTX and its associated hedge fund, Alameda Research. Wang, who started Alameda with Bankman-Fried in 2017 and…

‘A party for all businesses’: how Labour is courting industry The Guardian says The Labour Party conference has not always been a hot ticket for company bosses. This year, after events in Manchester rounding off a chaotic period for business relations with the Conservatives, things are different. As the party descends on Liverpool’s Albert Dock for its annual get-together this weekend, insiders say so many companies are clamouring to attend that many will not get in. Labour’s “business day” – at a conference the Financial Times is jokingly referring to as the “Liverpool Davos” – has twice as many firms…

UK on track for record tax levels, IFS think tank says BBC Business says The government is on course to oversee the biggest tax-raising Parliament since records began, according to the Institute for Fiscal Studies’ analysis. The IFS forecasts taxes will amount to about 37% of national income by the next general election, due in 2024. That would be a level not seen since 1948, just after World War Two. Responding to the report, a Treasury spokesperson said the “most effective tax cut we can deliver” is to “drive down inflation”. Treasury minister Andrew Griffith added that inflation was a…

England’s single-use plastics ban does not tackle takeaway boxes, warns Greenpeace BBC Business says A ban on single-use plastic cutlery, plates and polystyrene trays comes into force in England on Sunday. The new rules do not apply to plastic plates, trays and bowls used to pre-package food in shops and takeaways. Environmental campaigners say the ban does not go far enough to cut plastic waste, while some businesses told the BBC they were unaware of the new rules. The government said it was the “next big step” in its “journey to eliminate all avoidable plastic waste by 2042”. https://www.bbc.co.uk/news/business-66946643

UK economy grew faster than estimated since Covid BBC Business says The UK’s economy has grown faster since the start of the Covid pandemic than initially thought, new figures show. Revised data indicates that the UK has seen faster growth than France or Germany since the end of 2019. The growth figures had been expected to be upgraded, after the Office for National Statistics (ONS) published new estimates earlier this month of how the economy had performed since Covid. However, analysts said the UK was still suffering from lacklustre growth. The latest figures from the ONS indicated that the UK’s…

HS2: Unions call for emergency summit on rail line’s future BBC Business says Unions have called for ministers to hold an emergency summit about the HS2 rail project following growing speculation about its future. The Trades Union Congress and five member unions said stakeholders must be brought together “urgently” to get the line “back on track”. Rising costs have led to speculation that the Birmingham to Manchester leg of the high-speed line will be axed. On Thursday, Rishi Sunak refused to say whether HS2 will run to the North West. https://www.bbc.co.uk/news/business-66957407

Elementor #552588 September 29, 20231 Min Read Summary of the Top 6 headlines today Financial Times – OpenAI in talks with AVE and SoftBank to design ChatGPT creators’ first device The Financial Times reports the creators of ChatGPT are hoping to build “the iPhone of artificial intelligence” – and are in talks with former Apple designer Sir Jony Ive to make it happen. People familiar with the plan have told the paper that the project would aim to create a more natural and intuitive user experience for interacting with AI. The front page features an image of migrants crossing the…

Average five-year mortgage drops below 6% Newly released figures show the average rate on a five-year fixed mortgage has fallen below 6% for the first time since early July. The typical rate has dropped to 5.99%, according to the financial information service Moneyfacts. Lenders have been given some confidence to cut rates after the end of a run of 14 consecutive interest rate increases by the Bank of England. The average two-year deal has a rate of 6.5%. Around three-quarters of mortgage customers hold fixed-rate deals. Banking trade body UK Finance says there are about 800,000 of these deals ending…

Elementor #552380 September 28, 20231 Min Read Summary of the Top 6 headlines today Financial Times – City watchdog probes private market valuations as borrowing costs picks up  The Financial Times says the top financial regulator is preparing to launch a sweeping review of valuations in private markets amid growing fears over the impact of higher borrowing costs on the sector. The paper says global regulators are becoming “increasingly uneasy about the potential for blow-ups in private assets and other markets following the abrupt reversal of more than a decade of low-interest rates”. The review, it adds, will look at…

CITY AM – Is this the worst company in Britain? Water companies given £114m performance fine – with Thames Water amongst the worst of the lot CITY AM SAYS Water companies in England and Wales will have to return £114m to customers next year after missing performance targets, industry watchdog Ofwat has confirmed. The regulator also revealed debt-laden supplier Thames Water has been ‘lagging’ in its bid to clean up pollution incidents, plug leakages and improve customer service. The UK’s largest water supplier, home to over 15m customers, was slammed by Ofwat in its annual Water Company Performance Report –…

Elementor #552221 September 27, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Amazon uses monopoly to hurt shoppers, says US lawsuit  The Financial Times leads with a lawsuit brought against Amazon by the US Federal Trade Commission and 17 US states alleging that the retailer illegally uses monopoly power to overcharge consumers, hobble competitors, and exploit sellers on its marketplace platform. The paper says the suit marks one of the biggest tests yet for Commission chair Lina Khan and her “more aggressive stance towards Big Tech, which she believes has skirted regulatory scrutiny for decades”.…

New iPhone 15 fails bend test as YouTuber breaks it with bare hands The Metro says September is iPhone season, and Apple enthusiasts will be weighing up the tough decision of shelling out a big chunk of money to upgrade to the new iPhone 15. Tech buffs have already got their hands on the devices and taken them for a spin to give potential buyers a peek into what their money will buy. Unfortunately, the bigger version, the iPhone 15 Pro Max, did not fare well in its debut on YouTuber JerryRigEverything’s channel. JerryRigEverything is known for its phone assembly/destruction…

Hamleys reveals its top 10 toys for Christmas — and it’s another win for Barbie The Metro says The world’s oldest toy store, Hamleys, has unveiled it’s top 10 toys for Christmas 2023. Each year, expert buyers from the retailer curate an edit of the products expected to be on every child’s Christmas list, but this year, they’re catering for adults too. And, in a year that the world turned Barbie pink, it’s perhaps no surprise that top on their list is the iconic doll herself. The store’s predicted best-seller is the £27 Barbie Pop Reveal doll, offering an ‘unboxing…

Luxury restaurant The Ivy launches loyalty scheme (and a rockstar-inspired cocktail menu to match) The Metro says If you want to experience fine dining for less, The Ivy have the answer thanks to their new loyalty scheme. The iconic restaurant chain, beloved by A-listers, has launched a money saving loyalty app. They even called in the help of none other than rockstar and Ivy fan, Rod Stewart, who has dubbed the new scheme, ‘sexy’. Available to download now, the app allows users to collect points each time they dine, which can then be used to pay towards their next bill.…

The Economist – Time for a rethink Ukraine faces a long war. A change of course is needed THE ECONOMIST SAYS The war in Ukraine has repeatedly confounded expectations. It is now doing so again. The counter-offensive that began in June was based on the hope that Ukrainian soldiers, equipped with modern Western weapons and after training in Germany, would recapture enough territory to put their leaders in a strong position at any subsequent negotiations. This plan is not working. Despite heroic efforts and breaches of Russian defences near Robotyne, Ukraine has liberated less than 0.25% of the territory that…

CITY AM – UK growth to slide as stress builds UK growth set to slow as economy experiences ‘renewed signs of stress’, KPMG warns CITY AM SAYS The UK economy will “struggle to keep its head above water” for the remainder of this year as it is experiencing “renewed signs of stress,” KPMG warned today. The Big Four accountancy firm said that while worries about a deep recession have largely gone away, the economy was not out of the woods yet. Over the course of this year, it said that high interest rates, uncertainty and low productivity will likely act…

CITY AM – To hike or to hold The Fed holds rates: Now it’s the Bank of England’s time to decide London business newspaper CITY AM SAYS The Bank of England will make a call at noon today on interest rates – with the City split on whether surprise inflation data gives Threadneedle Street cover to pause its rate hike cycle. The Federal Reserve chose again to hold rates last night, though the body behind the decision warned they were still alive to “signifcant” inflationary pressures. The City had priced in at least one more interest rate rise this side…

Elementor #551608 September 21, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Sunak sparks business backlash after U-turn on net zero pledges  The Financial Times leads on the backlash against PM Rishi Sunak’s plans to push back the government’s net zero promises. Several car makers have heavily criticised the move. The paper says PM Sunak has “ignited a business backlash” and quotes Lisa Brankin, chair of Ford UK, saying the business needs “three things from the UK government: ambition, commitment, and consistency. A relaxation of 2030 would undermine all three”. The paper adds that Labour…

CITY AM – CBI fights for survival CBI postpones crunch AGM amid ‘short term cash flow’ issues and race to raise £3m London business paper CITY AM SAYS The Confederation of British Industry (CBI)’s annual meeting meant to take place Wednesday has been postponed, prompting more concerns about the finances of the crisis-hit lobby group. Following a race to raise £3m within days of its scheduled annual meeting, the CBI announced its postponement in a message to members on Tuesday afternoon. The Confederation of British Industry (CBI)’s annual meeting meant to take place Wednesday has been postponed, prompting more concerns…

Elon Musk: Social media platform X could go behind paywall US billionaire Elon Musk has suggested that users of his social media site X (formerly known as Twitter) may have to pay to access the platform. Musk was speaking to Israeli PM Benjamin Netanyahu when he made the announcement, saying a payment system was the only way to counter bots. “We’re moving to having a small monthly payment for use of the system,” Musk said. It’s not clear when the move to a payment system could start. Musk has long said that his solution for tackling bots and fake accounts…

Elementor #551334 September 19, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Germany leads censure of eastern EU states’ ban on Ukraine grain imports  Germany has led condemnation from EU countries of Poland, Hungary and Slovakia for placing curbs on grain imports from Ukraine, reports the Financial Times, with Berlin accusing the states of “part-time solidarity” with the war torn nation. The front page image is of the US prisoners who were freed from Iran in a $6bn deal. The American prisoners were swapped with Iranian prisoners. Today’s top stories Like this article? why don’t…

The Economist – The real threat from Europe’s hard right: A fresh wave of hard-right populism is stalking Europe THE ECONOMIST SAYS A spectre is haunting Europe: the spectre of a rising hard right. In Germany, the overtly xenophobic Alternative for Germany (afd) has surged to become the country’s second-most popular party. Its success is polarising domestic politics and it seems poised to triumph in state elections in the east next year. In Poland the ruling Law and Justice party is leading the polls ahead of a general election on October 15th, and it is being drawn further to the…

CITY AM – City reform manifesto to be delayed until next year as investors warn of ‘report fatigue’ CITY AM SAYS A major report looking to draw up a “new market model” for the City has been delayed until next year as fears grow of “report fatigue” setting in across London, City A.M. can reveal. The Capital Markets Industry Taskforce (CMIT), headed by London Stock Exchange chief Julia Hoggett, called in L&G boss Sir Nigel Wilson to conduct a “Capital Markets of Tomorrow” deep-dive in May that sought to carve out a new vision for London’s markets. At the launch of…

Rental prices rise at fastest rate for nine years, figures show Rental prices rose by 12% in the year to August, according to estate agency Hamptons. It marks the highest rise since it started its survey in 2014. A typical monthly rent of a newly-let property is now £1,304, it said. The rise in the past 12 months was more than the increase seen over the four years to 2019, Hamptons said. Pressure on landlords from high mortgage rates and rising demand from tenants has pushed up rental costs. There are fewer properties available to rent in many areas, highlighting…

Elementor #551206 September 18, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Labour government would seek to rewrite Brexit deal, Starmer pledges  The Financial Times leads on Labour’s Brexit plan if they win the next general election. Sir Keir Starmer plans to seek a “major rewrite” of Britain’s Brexit deal if his party wins the next general election. In an interview with the paper, Sir Keir says the current deal the UK has with the bloc is “too thin”. The paper’s main image shows an anti-fossil fuel protest in New York, as world leaders gather…