Author: WTX Business Team

Rainfall washes out retail sales in March UK retail sales dropped by 0.9% in March compared to February, according to the Office for National Statistics (ONS). Retailers blame the wet weather for the fewer number of shoppers. Non-food retailers were the hardest hit, with department stores and clothing shops reporting a drop in volumes. Food shops also saw a decline in sales, down by 0.7%, mainly due to shortages of some products. The ONS reports…

Financial Times – Goldman hit by trading slowdown as retail reversals drives higher costs Summary of the front page One of the biggest financial institutions in the world, Goldman Sachs, has seen its profits slump by nearly 20%, amid its efforts to pull back from its consumer banking work, the Financial Times says. The front page features a picture of Tim Cook as the Apple CEO is in India as the American company opened their…

Food prices rise at fastest rate for 45 years The cost of living rose more than expected last month due to the rising prices of bread, cereal, and chocolate. Inflation, which measures the rate of price rises, fell to 10.1% in the year to March from 10.4% in February, but it was widely expected to fall below 10%. Grant Fitzner, chief economist for the ONS, said that globally, food prices were falling but that had…

Sacked CBI boss Tony Danker says reputation ‘destroyed’ Tony Danker, the former boss of business group giant, the Confederation of British Industry (CBI), has claimed his “reputation has been totally destroyed” after being dismissed over complaints about his behaviour. In his first interview since being fired on 11 April, Danker acknowledged he had made some staff feel “very uncomfortable” and apologised for that. However, he told BBC’s Today programme that his name had been wrongly…

Cryptocurrency exchanges face headwinds even as crypto value rises Sky News says Last year was a torrid one for those who love cryptocurrencies. Bitcoin, the biggest and best-known cryptocurrency, fell by 64% during 2022 and Ethereum, the second largest, by 67%. Dogecoin, the cryptocurrency that started as a joke yet then became beloved by Elon Musk and his followers, fell by nearly 60%. This year, though, cryptocurrency values have rallied sharply. Dogecoin is up by…

Cost of British food basics increases by up to 80% in a year The Guardian says The price of staple foods such as cheddar cheese, white bread and pork sausages has soared by up to 80% in some shops over the past year, in further evidence of how inflation is hitting those on the tightest budgets the hardest. Porridge oats topped the price increase ranking among a basket of British basics measured by the consumer…

EasyJet boss says it is prepared for summer despite ongoing strikes The Guardian says The boss of easyJet said the travel industry was much better prepared for this summer than last year when staff shortages led to chaos at airports, although he warned that ongoing strikes could cause some disruption. The budget airline lifted its profit outlook for this year after summer bookings rose and passenger numbers over Easter returned to pre-pandemic levels. Johan Lundgren,…

Financial Times – Savers withdrew nearly $60bn from three US banks as Apple raises heat Summary of the front page The Financial Times says savers withdrew nearly $60bn from US banks Charles Schwab, State Street and M&T in the first quarter as customers moved their money in search of higher interest rates. Traditional banks could face further threat because of Apple and Goldman Sachs’ new savings account in the US that will pay 4.15% interest…

More people looking for work as vacancies fall The latest official figures suggest that the uncertain economic outlook is affecting employment, with a rise in jobseekers and a fall in job vacancies. The Office for National Statistics (ONS) reported that between December and February, around 220,000 more people were seeking work than in the previous three months. The number of job vacancies fell for the ninth consecutive quarter, with a drop of 47,000 from the…

UK firms have sharpest rise in confidence since 2020 UK chief financial officers (CFOs) have seen the sharpest rise in confidence since 2020, according to a survey by Deloitte. The improvement came as CFOs became less concerned about energy prices and Brexit-related issues. The survey, conducted between 21 March and 3 April, showed that 25% of CFOs felt better about the future than worse, compared to 17% feeling the opposite three months ago. Deloitte chief…

Greener flights will cost more but will reduce carbon emissions by 70% Sustainable Aviation, an industry group representing UK aviation, has said that efforts to decarbonise air travel are likely to increase ticket prices, which could deter some passengers from flying. Measures such as using sustainable aviation fuel (SAF), which is several times more expensive to produce than traditional jet fuel, will “inevitably reduce passenger demand”, according to the group, which includes airlines such as…

Scrap all existing smart motorways, says AA The Automobile Association (AA) has called for all existing smart motorways in England to be scrapped, joining campaigners who have raised concerns over safety. Smart motorways use technology to regulate traffic flow and ease congestion, including the use of the hard shoulder as an extra lane. Critics argue that the removal of the hard shoulder has led to deaths. The government cancelled the construction of 14 new smart…

CITY AM – City warms to Rishi CITYAM SAYS As Labour leader Sir Keir Starmer doesn’t tire of reminding voters: expertise beyond politics can be invaluable. For the current resident behind that most famous front door, it’s so far proved an advantage. Liz Truss’ accountancy background may not have aided her short-lived leadership bout, but – for the City’s boardrooms at least – her successor could hardly be better suited for the clean up. Financial…

Financial Times – Bank of England consider urgent reform of deposit guarantee scheme Summary of the front page The lead story on the front page of the Financial Times says the Bank of England is considering “urgent” reforms to its deposit guarantee scheme following turmoil in the sector last month caused by the collapse of US lender Silicon Valley Bank, which saw billions withdrawn from the firm’s UK entity. The paper’s lead image shows smoke…

Ford launches hands-free driving on UK motorways The UK government has approved Ford’s BlueCruise technology, which allows drivers to take their hands off the wheel while driving on certain motorways. The system can control steering, acceleration and braking, but requires a camera to monitor the driver’s eyes so they stay focused on the road.  Initially, the technology will only be available for 2023 models of the electric Mustang Mach-E SUV, and will be offered on…

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. …