Author: WTX Business Team

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…

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…

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…

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…

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…

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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 -…

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,…

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…

UK banks in for a tough quarter, analyst warns Lloyds, Natwest and Barclays in for a ‘tough quarter’ as pressure on interest income persists CITY AM SAYS The outlook for the remainder of 2023 looks fairly bleak for the UK’s domestically focused banks as the tailwind from rising interest rates fades. Barclays, Lloyds and Natwest will all report results for the third quarter this week with question marks over banks’ net interest margin (NIM), a…

The Economist – Where will this end? Only America can save Israel and Gaza from greater catastrophe THE ECONOMIST SAYS How rapidly things fall apart. The deadly blast in Gaza at Ahli Arab hospital on the evening of October 17th killed many Palestinians who were taking shelter. Despite strong evidence that their deaths were caused by the failure of a Palestinian rocket laden with fuel, Arab countries rushed to condemn Israel. Hizbullah, a heavily armed…

Customers may need to pay a ‘significant’ amount to get new smart meters installed.

Elementor #556638 October 23, 20231 Min Read Summary of the Top 6 headlines today Financial Times – US warns of conflict escalation risk as tensions rise across Middle East  The FT leads with a US warning that its troops and personnel in the Middle East are at risk of a “significant escalation” in attacks against them as the Israel-Hamas war threatens to morph into a regional conflict. Washington is sending more air defence systems to…

Elementor #555969 October 20, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Israel’s allies warn citizens to leave Lebanon as regional tension rise  The Financial Times leads on the news that countries including the UK, US and Germany have told their citizens to leave Lebanon amid fears the war between Hamas and Israel could spill over into the country. Shelling between northern Israel and southern Lebanon – a stronghold of…

Nokia to axe up to 14,000 jobs to cut costs Nokia is to axe between 9,000 and 14,000 jobs by the end of 2026 to cut costs. The announcement was made as the company reported a 20% drop in sales between July and September. The company blamed slowing demand for 5G equipment in markets such as North America. It currently has 86,000 employees around the world and has axed thousands of jobs since 2015. The…

CITY AM – Secret battle for Russian oil firm Morgan Stanley locked in secret London court battle to seize Russian oil firm CITY AM SAYS Morgan Stanley is locked in a secret London court battle as part of an attempt to seize an oil firm in southern Russia on behalf of a group of lenders, City A.M. has learned. The Wall Street Bank is looking to take a majority stake in Cypriot-registered Russian drilling firm,…

Elementor #555620 October 19, 20231 Min Read Summary of the Top 6 headlines today Financial Times – Biden backs Israel over hospital blast but seeks to broker Gaza aid packages  Joe Biden has urged Israel not to be “consumed” by rage after Hamas’s deadly raid, to avoid repeating Washington’s “mistakes” following the 9/11 terror attacks, the Financial Times writes. During Mr Biden’s visit he also urged the Israeli government to allow emergency aid through to…

Inflation: Milk, cheese and egg prices fall as petrol rises Official figures from the Office of National Statistics (ONS) show food prices saw their first monthly fall in two years in September, but fuel prices rose sharply. The UK’s overall rate of inflation held steady at 6.7% – ending a run of three consecutive monthly falls. The price of milk, cheese and eggs all decreased, easing the pressure at supermarket tills, the ONS said. But…

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Wages overtake inflation for first time in nearly two years Average pay growth rose above inflation for the first time in almost two years, in a sign that the squeeze on living costs may be starting to ease. Wages rose at an annual rate of 7.8% between June and August, figures show. That was higher than average inflation over the same three months, which measures the rate at which prices rise. Revised figures showed pay…

Charities ‘concerned’ over lack of progress with Renters Reform Bill Charities and non-profit organisations have urged PM Rishi Sunak to pass a bill to ban “no-fault” evictions. The Renters Reform Bill would remove the right of landlords in England to evict tenants for no reason with only two months’ notice. The 30 charities warned delays risk causing “more avoidable hardship and suffering” and a “greater cost to the taxpayer”. The government said the bill would…

The Economist – Israel’s Agony and Its Retribution THE ECONOMIST SAYS In a static decades-long conflict that has rotted for the past 20 years, it can be hard to believe that real change is possible. Be in no doubt, however, that Hamas’s murderous assault has blown up the status quo between Israel and the Palestinians. The coming weeks will determine whether war in Gaza sinks the Middle East deeper into chaos or whether, despite Hamas’s…

CITY AM – UK to swerve recession as inflation falls UK to avoid recession despite Bank of England interest rate rises, EY predicts CITY AM SAYS The UK will avoid a recession despite the impact of the Bank of England’s interest rate hikes, new forecasts from the EY Item Club say. In its new Autumn forecast, the EY Item Club predicted the UK economy would grow 0.6 per cent over the course of 2023, up…