Author: WTX Business Team

WH Smith, M&S and Argos failed to pay minimum wage More than 200 firms – including WH Smiths, Marks & Spencer and Argos have been named for failing to pay the minimum wage and could face penalties of nearly £7m, and must reimburse workers for breaches dating back to over a decade. WH Smith, Marks & Spencer and Argos all said the breaches were unintentional and had been swiftly remedied. It’s not been revealed how…

Cryptocurrency $40bn collapse boss Do Kwon jailed for forging documents The cryptocurrency boss Do Kwon, responsible for the $40 billion (£31.3 billion) downfall of terraUSD and Luna tokens, has been sentenced to four months behind bars in Montenegro after being found guilty of forging official documents. Kwon was arrested in March at Podgorica Airport in Montenegro’s capital, where he was apprehended while attempting to board a flight to Dubai. In addition to his four months…

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The Economist – BritGPT How Britain can become an AI superpower THE ECONOMIST SAYS Get ready for some big British celebrations in 2030. By then, if Rishi Sunak is to be believed, the country will be “a science and technology superpower”. The prime minister’s aim is for Britain to prosper from the booming opportunities offered by supercomputing and artificial intelligence. Generative ai has stoked a frenzy of excitement (and some fear) among techies and investors;…

CITY AM – Bank set to hike rate yet again Bank of England to raise interest rates for 13th time in a row this week to tame persistent inflation CITYAM SAYS The Bank of England is nailed on to raise interest rates for the thirteenth meeting in a row this Thursday, but markets think there’s an outside chance Governor Andrew Bailey and co will revert to an outsized rise to tame what is emerging as…

Financial Times – Johnson’s repeated lies to MPs condemned in searing report Summary of the front page The report into the partygate scandal that concluded Boris Johnson repeatedly lied to the House of Commons makes the splash on the Financial Times. The FT picks out the line from the report which sums up its core finding: “He [deliberately] misled the House on an issue of the greatest importance… and did so repeatedly.” While the judgement…

Tesco sees early signs inflation is starting to ease Tesco’s CEO, Ken Murphy, has expressed optimism regarding a potential slowdown in price rises, as the supermarket reported an increase in sales. Tesco’s said that UK sales for the three months leading up to May rose by 9% compared to the previous year, amounting to £10.8 billion. Households have been grappling with rising prices, with food inflation reaching 19.1% in the year ending April. Murphy acknowledged…

Vodafone and Three owner CK Hutchison Group have announced an agreement to merge their UK networks.

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…