Author: WTX Business Team

City AM – Out of Order: De La Rue warns of ‘significant uncertainty’ as demand for cash dries up CITY AM SAYS Storied banknote-maker De La Rue said profits would slump below expectations and warned of a “significant degree of uncertainty” today as it struggles to cope with a downturn in cash usage. In a trading update, the firm said full year adjusted operating profits would come in at a “mid-single digit percentage below” an…

Financial Times – Biden presses Belfast parties Summary of the front page The Financial Times says Joe Biden’s visit to Northern Ireland, commemorating 25 years of the Good Friday Agreement. The paper focuses on Mr Biden’s appeal to Northern Ireland’s political parties and carries a photo of the leader with actor James Martin who recently starred in the Oscar-winning film An Irish Goodbye. The president will spend the rest of his trip in the Republic…

Fears and warnings swirl, but how dangerous is AI technology? AI (Artificial Intelligence) is not a new concept, it’s been around since the mid-20th century and can be traced back even further to early Greek myths and the development of mechanical devices designed to automate tasks in the industrial revolution. But fears over AI have once again amplified in recent months, following the launch of ChatGPT (and others like it) – an AI language model…

UK to be one of worst performing economies this year, predicts IMF The UK is set to have the worst-performing economy in the G20 this year, according to predictions from the International Monetary Fund (IMF), due to a forecasted shrinkage.  Although the predictions are grim, they are a small upgrade from the IMF’s previous prediction on the health of the UK economy. They have still warned of the “rocky road” ahead for the global financial…

Financial Times – First batch of IPOs under streamlined China listings rules soars 96% on debut Summary of the front page The Financial Times says shares in 10 Chinese companies soared almost 100% on average on Monday as the first initial public offerings under a streamlined listings regime debuted in Shanghai and Shenzhen. Mr Biden’s trip to Northern Ireland is also a focus of the front page, with the paper leading on a parade that took…

CBI boss Tony Danker sacked over misconduct claims Tony Danker, the boss of the Confederation of British Industry (CBI), has been fired following an investigation into complaints about his conduct at work involving a female employee. Three other CBI employees have also been suspended pending further investigation into allegations. The CBI is liaising with the police and intends to fully cooperate with any police investigations. Danker, who stepped aside in March during the investigation, has…

Interest rates likely to fall to pre-Covid levels, IMF predicts A new International Monetary Fund (IMF) forecast suggests that interest rates in major economies are expected to fall back to pre-pandemic levels. It says low productivity and ageing populations will be factors likely to reduce inflation, which will result in central banks easing monetary policy. The Bank of England has raised interest rates since December 2021 from 0.1% to 4.25%, with the UK experiencing its…

More people entertaining at home amid cost of living crisis Sales of home accessories and furniture increased sharply in March, according to the British Retail Consortium (BRC), which helped to boost total retail sales by 5.1% compared with the previous year.  The cost of living continues to put pressure on households, with inflation rising 10.4% in the year to February.  The BRC said that Mother’s Day drove sales of jewellery, flowers and fragrances, but that…

CITY AM – CBI IN CRISIS: Firms mull bailing out CITYAM SAYS The Treasury has placed on pause all engagement with the CBI, Britain’s biggest business body, after a string of sexual misconduct allegations. The CBI regularly meets with ministers to discuss economic policy and is regularly consulted by officials on changes to the business landscape. However in light of allegations which have surfaced over the past 48 hours the Treasury has elected to “temporarily…

Financial Times – Ukraine ‘ready’ for Crimea talks with Kremlin if counteroffensive succeeds Summary of the front page The Financial Times reports that Kyiv is willing to discuss the status of Crimea with Moscow if its forces reach the border of the Russian-occupied peninsular, according to a senior adviser to President Volodymyr Zelenskyy. The front page also reports on the arrest of Nicola Stugeon’s husband in relation to a probe into SNP funding and financing. …

New tax year: Bills and benefits rise, but tax rise risk looms The new tax year has started with warnings for people to be cautious with their finances due to tax, pension, and benefit rules. Income tax thresholds are frozen until 2028, meaning pay rises could push people into a higher tax bracket. The Office for Budget Responsibility predicts that 3.2 million new taxpayers will be created, with 2.6 million people paying higher rate tax. …

Financial Times – Trump enters not guilty plea to 34 counts on day of drama in New York Summary of the front page Trump’s “day of drama” is the main story on the front page of the Financial Times. The paper also covers allegations of workplace misconduct at the Confederation of British Industry, which has resulted in the organisation cancelling all external events today. The paper reports that the “dramatic legal reckoning” will threaten Mr…

Financial Times – EY banned from German audit work for two years after Wirecard scandal Summary of the front page The Financial Times reports that EY has been banned from taking on any newly listed audit clients in Germany for two years over failures in its work for collapsed payments company Wirecard. Germany’s audit watchdog, Apas, also announced a €500,000 (£439,000) fine for EY, the paper reports. The front page pictures electric scooters and reports Paris…

Richard Branson’s rocket firm Virgin Orbit files for bankruptcy Virgin Orbit, the satellite launch company founded by British billionaire Sir Richard Branson, has filed for bankruptcy in the US due to a failure to secure new investment. The company, which is a spin-off from Sir Richard’s space tourism firm Virgin Galactic, halted its operations weeks ago and announced that it plans to cut 85% of its 750-strong workforce. Virgin Orbit will now look to find…

Economist – America vs China: It’s worse than you think Economist says you may have hoped that when China reopened and face-to-face contact resumed between politicians, diplomats and businesspeople, Sino-American tensions would ease in a flurry of dinners, summits and small talk. But the atmosphere in Beijing just now reveals that the world’s most important relationship has become more embittered and hostile than ever. In the halls of government Communist Party officials denounce what they…

City AM – Britain goes own brand Recession fears see Brits stock up on own-brand kitchen staples CITY AM SAYS THE COST of living crisis is beginning to be felt in the pockets of ordinary punters – with more than one in three turning towards own brand products to keep the kitchen cupboard stocked. New research from KPMG suggests more than half of UK consumers have reduced ‘non-essential’ spending amid recession fears, with eating out…

Cineworld ditches sale of UK, US businesses after failing to find buyer Cineworld has abandoned plans to sell its cinema businesses in the US, UK, and Ireland after failing to find a buyer. The cinema chain operator also announced that it has made a conditional deal with lenders to exit bankruptcy. The company, which owns the Picturehouse chain in the UK, intends to raise $2.26bn of new funding to turn around the business, including restructuring…

UK strikes agreement to join Asia-Pacific trade bloc FT says The UK on Friday unveiled an agreement to join an 11-member Asia-Pacific trade bloc, with British prime minister Rishi Sunak claiming it proved his government was seizing “post-Brexit freedoms”. Talks on Britain becoming a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership were finally wrapped up after two years of haggling over quotas and tariffs. The UK will be the first country to…

UK-Asia trade deal to boost UK economy by 0.08% The UK has signed a trade deal with 11 Asia and Pacific nations, including Australia, Canada, and Japan. This deal will help UK exporters by lowering tariffs on products like cheese, cars, and chocolate. The agreement, called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will create a market of around 500 million people. CPTPP was established in 2018 and includes Australia, Brunei, Canada, Chile,…

Virgin Orbit lays off 85% of staff after failing to secure funding Virgin Orbit has announced that it will lay off 85% of its workforce and suspend operations for the foreseeable future due to its inability to secure new investment. The rocket company was founded by British billionaire Sir Richard Branson and earlier this year the company had attempted to launch the first-ever satellite launch from UK soil. Whilst the mission was unsuccessful, it was…

Twitter takeover: Elon Musk announces Blue Tick shakeup Twitter boss Elon Musk has announced changes to the social media platform’s paid feature, Twitter Blue.  Starting 15 April, only verified subscribers will have their posts recommended to other users and be allowed to vote in polls. Posts from non-paying accounts will not appear in the “For you” stream of recommended tweets. The current subscription fee for blue-tick verification is $7 (£5.70) per month and also provides…

CITY AM – UK economy not out of the woods yet UK recession still on the cards after aggressive Bank of England interest rate hikes Read the business pages here   CITYAM SAYS A recession is still on the cards in the UK despite the economy performing much better than experts predicted just a few months ago, new forecasts out today project. Higher interest rates and households responding to the cost of living crunch gripping their…

FT – Investors pour $286bn into money market funds in scramble for safety The Financial Times leads with the recent banking crisis and how the turmoil has increased the risk to financial stability, the IMF warned. Read the business pages here

Collapsed US Silicon Valley Bank bought by rival First Citizens BancShares has purchased the assets and loans of the collapsed US lender, Silicon Valley Bank (SVB), the US Federal Deposit Insurance Corporation (FDIC) announced. SVB’s collapse earlier this month raised concerns about the stability of other lenders, resulting in a significant drop in bank shares worldwide. In Europe, worries over the strength of Swiss banking giant Credit Suisse led to a rushed takeover by rival…

UK households ‘spent 12% more on essentials in February than year earlier’ The Guardian says Inflation and rising bills mean UK households are spending 12% more on essentials than they were a year ago, with almost four in 10 people having to use credit cards to cover these costs, new data shows. Two days after it emerged that the UK’s annual inflation rate unexpectedly jumped to 10.4% in February, Nationwide said its figures showed that…