Author: WTX Business Team

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…

CITY AM – Profit tax hike to hit investment Jeremy Hunt and Rishi Sunak’s profit tax rise to hit investment, survey finds CITY AM SAYS Jeremy Hunt and Rishi Sunak’s corporation tax hike is poised to squeeze the UK economy by mothballing investment, new figures out today show. Nearly half of all mid-sized companies intend to shelve big spending projects due to the Chancellor and Prime Minister snatching a greater share of company profits, according…

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…