UK economy grows in April but house market weakens Newly released official figures show the UK economy experienced marginal growth in April. The expansion was aided by robust trade in bars and pubs, although the same period saw was a challenging month for housebuilders and estate agents. The Office of National Statistics (ONS) reported a 0.2% growth in the economy during April, following a contraction in March. However, the construction sector struggled as rising interest…
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Financial Times – MPs to grill City watchdog over Odey investigation Summary of the front page The Financial Times reports that MPs will quiz executives from the Financial Conduct Authority next month over the watchdog’s handling of misconduct allegations against hedge fund manager Crispin Odey. Leaders from the Financial Conduct Authority will be quizzed about sexual misconduct allegations against Crispin Odey, a prominent financier. Mr Odey has strenuously denied the claims made against him. The…
US moves to block Microsoft’s Activision takeover Regulators in the US have requested a judge blocks Microsoft from completing its $69bn purchase of Activision Blizzard – the publisher of video games such as Call of Duty. The US Federal Trade Commission (FTC) said the deal, which would be the largest in the history of the video games industry, could “substantially lessen competition” in the sector. The UK has already blocked the deal over concerns it…
CITY AM – Banks must adapt in tech battle CITY AM SAYS Ex-Barclays boss Antony Jenkins has warned established banks that they could be in a “world of very slow decline” if they failed to adapt to new technologies. Speaking to City A.M., Jenkins said “this industry is really on the brink of having to undergo radical transformation if it’s going to remain relevant to its customers.” Jenkins highlighted how the explosion of user-friendly fintech…
George Soros gives empire to son Alex American billionaire philanthropist George Soros has announced that he has handed over the management of his $25 billion (£19.9 billion) financial and charitable empire to his son, Alex, stating, via an interview with the Wall Street Journal, that his son had “earned it.” For several decades, the Soros family has dedicated their wealth to promoting democracy in numerous countries. However, in recent years, George Soros, a 92-year-old former…
The Economist – The baby-bust economy Global fertility has collapsed, with profound economic consequences THE ECONOMIST SAYS In the roughly 250 years since the Industrial Revolution the world’s population, like its wealth, has exploded. Before the end of this century, however, the number of people on the planet could shrink for the first time since the Black Death. The root cause is not a surge in deaths, but a slump in births. Across much of…
City AM – There’s a new sheriff in town FCA’s new crypto advertising rules met with mixed industry response CITY AM SAYS The Financial Conduct Authority’s new rules surrounding the marketing of digital assets have been met with a mixture of confusion, enthusiasm and a bit of mild despair by the crypto industry. The FCA’s new set of rules come into force from today, presenting some sweeping changes to the way cryptocurrency companies advertise their…
Windfall tax to be suspended if energy prices drop The government has said it will suspend the windfall tax on oil and gas companies if prices return to normal levels for an extended period. By halting the windfall tax, the overall tax rate on energy firms would decrease from 75% to 40%. A windfall tax is designed to target companies that benefit from factors they are not responsible for. It was initially introduced last year…
What will happen to the housing market in 2023? as house prices fall at there fastest rate in 14 years.
Fresh wave of train strikes begin as FA Cup to face disruption Train strikes will cause disruptions and bring rail services to a standstill in certain parts of the country. Members of the train drivers’ union, Aslef, will commence their walkout on Wednesday, with another strike planned for 3 June – the FA Cup final at Wembley. There is a train strike planned for members of the union RMT for Friday 2 June. The strikes…
Elon Musk: Tesla boss on first China trip in over three years Tesla boss Elon Musk has made his first trip to China in over three years. He is expected to tour Tesla’s expansive manufacturing facility in Shanghai. China is the world’s second-largest economy and the car makers’ largest market after the US. Musk held a meeting with China’s foreign minister, Qin Gang shortly after he arrived on Tuesday. Despite usually being vocal on his…
Financial Times – Republican chiefs try to quell revolt with debt default deadline looming Summary of the front page Leaders in the US Republican party are attempting to quell a revolt from right-wing lawmakers over a pact with Democrat president Joe Biden to prevent a looming debt default, reports the Financial Times. The front page features an image of Turkey’s Ergodan after the leader claimed victory in the presidential elections. Turkey is facing a bleak…
Food price cap will not make a difference – retailers A price cap on essential food items will not address the growing cost of living crisis, retailers have warned, as the government looks to press ahead with its proposal. The British Retail Consortium (BRC) expressed scepticism, stating that such measures would have little impact and could hinder efforts to combat inflation. There are no plans for a mandatory price cap, but instead, the government are…
Mars bar plastic wrapper swapped for paper Mars bars will now be wrapped in recyclable paper replacing the previous plastic packaging. The initiative is part of Mars Food’s pilot program aimed at exploring more environmentally friendly materials for their chocolate bars. Starting from Monday, the new paper packaging will be available in 500 Tesco stores across the UK. The move comes after chocolate rival Nestle began using paper packaging for Smarties in 2021 and for…
Financial Times – Ministers look at reshaping pensions lifeboat fund to give boost to business Summary of the front page Ministers are considering a sweeping reform to the fund that protects savers in company pension plans, according to the Financial Times. The “sweeping reform” is a £39bn pot that provides a safety net for pension schemes when an employer fails – that would turn it into a vehicle for tens of billions of pounds worth…
Mortgage rates rise in the UK after inflation surprise Mortgage costs in the UK are rising after higher-than-anticipated inflation figures, leading to revised forecasts for interest rate hikes. The Nationwide building society announced that mortgage rates on new fixed deals would climb by up to 0.45 percentage points. Halifax and Lloyds Bank have also raised their rates this week. The rise in mortgage costs comes amid expectations that the Bank of England will need to…
Top Twitter engineering boss quits just one day after chaotic DeSantis launch glitch An engineering boss at Twitter has announced his departure from the company just one day after technical glitches plagued the launch of Ron DeSantis’ US presidential campaign on the platform. Foad Dabiri severed as the engineering lead for Twitter’s Growth organisation. He did not provide any specific reason for his departure. Dabiri tweeted: “After almost four incredible years at Twitter, I decided…
Energy bills to remain high despite price cap cut Experts have warned that energy bills will remain high despite a price cut scheduled for July. The energy price cap, set by regulators for England, Scotland and Wales, will reduce a typical household’s gas and electricity costs by £426 per year, bringing the total to £2,074 annually. This marks the end of government assistance that capped bills at £2,500. The experts are suggesting that despite the…
Financial Times – BoE has very big lessons to learn after failing to spot persistent high inflation Summary of the front page The Financial Times’ main story is that the governor of the Bank of England has conceded there are “very big lessons to learn” after the central bank failed to forecast the persistently high inflation of the last 18 months. Speaking before the House of Commons Treasury Select Committee on Tuesday, Andrew Bailey said…
UK inflation falls to 8.7% but food price rises remain close to 45-year high The Guardian says Britain has recorded the sharpest fall in inflation since the cost of living crisis began, with a drop in the annual rate to 8.7% in April, but food prices continued to rise at the fastest pace in 45 years. The Office for National Statistics (ONS) said annual inflation as measured by the consumer prices index fell below double…
Bank of England to hike interest rates to 5.5 per cent to tame scorching inflation CITY AM says The Bank of England will have to hike interest rates to a peak of 5.5 per cent, threatening to tip the UK economy to near a recession to tame steaming inflation, markets have priced in today, after fresh numbers showed price pressures are withstanding prior rate rises. Upward moves in financial markets’ expectations for peak UK interest…
Bank of England admits ‘very big lessons to learn’ over failure to forecast rise in inflation FT says The governor of the Bank of England has conceded there are “very big lessons to learn” in setting monetary policy after the central bank failed to forecast the recent rise and persistence of inflation. Along with other members of the BoE’s Monetary Policy Committee, Andrew Bailey told the House of Commons Treasury select committee on Tuesday that…
Virgin Orbit shuts down, sells for $36m despite being valued at $3.7 billion in 2021 British billionaire Sir Richard Branson’s dreams of a successful rocket company have come to a crashing halt after his business, Virgin Orbit, ceased operations. Earlier in the year, the company’s first launch had ended in failure. The firm’s assets, including its converted jet and leased properties, have now been sold for $36 million, a small fraction of the $3.7 billion…
The Financial Times – Meta hand record 1.2 bn euros European fine over transatlantic data transfers Summary of the front page The Financial Times leads with the record fine for Facebook owner Meta. Meta was handed a €1.2bn (£1.0bn) fine by the European Union over alleged violations of rules requiring safeguards for transfers of personal data to the United States. The paper says the company has been given five months to suspend such transfers, though…
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