Author: WTX Business Team

Financial Times – China slaps ban on US chipmaker after G7 rebuke ramps up tensions Summary of the front page The Financial Times says China has banned US chip-maker Micron from key infrastructure, a day after Beijing was rebuked by the G7 over issues such as its military activities and human rights abuses. Micron Technology, a US chipmaker has been slapped with a ban by China after a weekend of “mounting geo-political tensions” at the…

Financial Times – BT plans to cull 55,000 jobs this decade in most radical cuts since privatisation Summary of the front page The FT says BT plans to cut 55,000 jobs with some customer service roles being filled by AI technology. The “radical cost-cutting drive” will account for 42% of the company’s workforce. The paper says that the shift will make for the biggest job cuts since the company was privatised in the 1980s. The…

Britons richest under 35s include Adele and Harry Styles Adele, Harry Styles and Ed Sheeran have topped the UK’s wealthiest under 35s, according to the Sunday Times rich list. Ed Sheeran and Adele have made the top 10, which is dominated by the Duke of Westminister, who has an estimated wealth of nearly £10 billion – mostly inherited wealth. Ed Sheeran, 32, is in seventh place, with a net worth of £300 million. Adele, 35,…

Financial Times – German carmakers press for delay in Brexit rules on tariff-free access to UK Summary of the front page The Financial Times splashes on the news that German automotive manufacturers are pushing for a delay in Brexit rules that could stop them having tariff-free access to the UK market. It comes after the owner of Vauxhall called for the UK government to renegotiate the Brexit trade deal, because of concerns that rules on…

BT to cut 55,000 jobs with a fifth replaced with AI BT has announced plans to cut up to 55,000 jobs globally, including in the UK, by the end of the decade in a cost-cutting measure. The telecom giant plans to cut around one-fifth of jobs in customer services, as the company plans to replace staff with cutting-edge technology such as artificial intelligence. The reduction in headcount will impact both employees and contractors with the…

Eleven million Britons struggling to pay bills Nearly 11 million adults in the UK are struggling to pay bills and debts, according to new figures from the Financial Conduct Authority (FCA). Compared to May last year, an additional 3.1 million individuals faced financial difficulties in January. The FCA’s research found that 11% of adults had missed bill or loan payments in at least three of the previous six months. The financial strain has been caused…

Inflation in European countries using the euro currency inches higher to 7% in April as the squeeze on households extends. Europe’s painful inflation inched higher last month, extending the squeeze on households and keeping pressure on the European Central Bank to unleash another large interest rate increase. Core inflation, which excludes volatile food and fuel, slowed slightly but was still high at 5.6 percent, underlining the expectation that the ECB will press ahead with its…

CITY AM – Greedflation row heats up  CITYAM SAYS “Greedflation” is not to blame for prices surging in the UK and instead businesses are pushing up prices in response to soaring costs, a former Bank of England rate-setter claimed today. Michael Saunders, an ex-member of the monetary policy committee – the nine strong group that sets interest rates in Britain – and now senior economic adviser at consultancy Oxford Economics, has said isolated incidents of…

Vodafone to cut 11,000 jobs as CEO aims to simplify company Vodafone has announced its plans to cut 11,000 jobs – around 10% of its global workforce – over the next three years. The telecoms giant will cut jobs at the UK headquarters and in other countries. Vodafone has 12,000 staff in Britain, and 104,000 staff worldwide.  Margherita Della Valle, Vodafone’s new CEO and finance director, stated that the company’s performance has been poor. It’s…

Greggs Bakers’ new menu and new shop locations boost sales in 2023. The high street bakery hit £609m in sales as shop openings and new menu options boost growth The British bakery and fast food chain Greggs said it saw strong sales growth in the first 19 weeks of 2023, as it opened a raft of new shops, and new stores within petrol forecourts, and added new options to its menu. A strong partnership with…

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…

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…

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…

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…

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…

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,…

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…

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…

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…

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…

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…

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”,…

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…

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…

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…