Close Menu

Editorial 01.11.24


Friday’s front pages continue to cover the reaction and fallout from the Budget delivered by Chancellor Rachel Reeves on Wednesday. Several papers lead to a rise in the cost of government borrowing amid investor concern about levels of government debt.

Elsewhere, there’s a dash of international coverage on the UK front pages this morning, with images of the floods in Spain making several splashes. There are also reports on the upcoming US election as Kamala Harris and Donald Trump try to win over the swing states in the final stretch of the campaign. 

‘Rise in cost of borrowing’ 

‘Markets have turned on the chancellor,’ claims the Telegraph.

The Daily Telegraph says the markets have “turned on” the chancellor and that the value of bonds, UK stocks and the pound have all fallen in a “rebuke” to her plans. 

‘Bank of England and Treasury on high alert,’ says The Guardian.

The Guardian says some analyses have attempted to compare with Liz Truss’s disastrous mini-budget, but they note the gyrations in the City on Thursday were far less substantial than those of two years ago. The paper says the Bank of England and the Treasury are on high alert and monitoring the situation.

‘City plays down comparisons to 2022 mini-budget,’ reports the FT.

The FT says that many in the City have played down comparisons with the 2022 mini-budget mess and says that while a number of business figures have criticised Reeves’ tax rises, “admirable job of balancing spending, borrowing and taxation” in order to drive growth.

‘Chancellors tax on farming could lead to drop in food production,’ says The Sun.

The Sun says the chancellor’s decision to impose an effective 20% inheritance tax on farming land and machinery above a £1m threshold could lead to a dramatic drop in food production and supplies running low. 

‘Reeves throwing obstacles in the way of business,’ says the Mail.

The Daily Mail says Reeves has taken a gamble with the economy and that she is “throwing obstacles in the way of business” and “risks replicating the stagnation afflicting Europe’s major economies” and “eking out meagre growth at best”.’

‘Cost of sickness will climb to £100bn a year,’ claims The Times.

The Times says the OBR has warned that by the end of this parliament, about half of claims for the main welfare benefit will be for poor health. It means the total cost of sickness will climb to £100bn a year. The paper says experts believe the soaring cost of sickness benefits is a reason why the country is paying more taxes without receiving better public services. 

‘Spain prepares for more rain amid horror flooding’ 

‘Death toll rises to 158 as rescuers search for survivors,’ reports the Mirror.

The Daily Mirror features a large image of a street in Valencia devastated by the floods. The paper says the death toll has reached 158 with rescuers desperately hunting for survivors. The paper quotes an expert saying climate change is to blame for the floods and warns more weather disasters are to come.

‘Spain’s worst natural disaster in living memory,’ says The Times.  

The Times also carries an image of the damage from the floods, with the article noting the rising death toll. The paper says the storm is the country’s worst natural disaster in living memory. 

‘Spain could see more damage as bad weather is set to continue,’ reports The Guardian.

The Guardian has an image of cars piled onto each other after being swept up in the floods. The paper reports the country is now in three days of mourning and could expect to see further destruction as more bad weather is forecast. 

Sarah Wilkinson
Sarah Wilkinson@swilkinsonbc
Read More
The US is rightly accused of ignoring evidence of civilian harm to continue its ‘unconditional weapons sales’ to the israeli MASS murdering regime
Ant@_ThatAnt_
Read More
You're a fucking idiot if your anger is aimed towards labour and not the crooks that over the last 14 years have put us in the situation where these decisions have had to be made. #Budget2024
Zarah Sultana
Zarah Sultana@ZarahSultana
Read More
The Autumn Budget includes much-needed investment in the NHS & our schools as well as a rise in the minimum wage. But billions in cuts to disability benefits is a return to austerity, on top of the means-testing of winter fuel payments & keeping the cruel two-child benefit cap.
Previous
Next

Biggest typhoon in 30 years hits Taiwan

Biggest typhoon in 30 years hits Taiwan Typhoon Kong-rey, the biggest storm to hit Taiwan in nearly 30 years, made landfall on the island’s eastern coast, forcing schools and workplaces

Spain flood death toll passes 150

Spain flood death toll passes 150  Spain is facing its deadliest flooding disaster in decades, with at least 158 confirmed deaths as heavy rains and flash floods devastated parts of

HSBC shares pop as bank beats profit estimates and launches $3bn share buyback

HSBC has unveiled its latest multibillion-pound share buyback after beating profit estimates in the third quarter as the Asia-focused bank gears up for a major restructuring.

The announcement drove HSBC’s share price 4.7 per cent higher in London and up 3.7 per cent in Hong Kong during earlier trading – with both at their highest level in around six years.

The London-based lender reported a pretax profit of $8.5bn (£6.6bn) between July and September, up from $7.7bn (£5.9bn) a year earlier. Analysts had expected a profit of $7.6bn (£5.9bn).

HSBC announced a $3bn (£2.3bn) share buyback and dividend of 10 cents (7.7p) per share to reward investors, bringing its total shareholder distributions to $18.4bn (£14.2bn) this year alone.

Source link

BP beats estimates despite lower oil prices

FTSE 100 oil giant BP has reported strong-than-expected earnings for the third quarter.

On Tuesday, it posted an underlying replacement cost profit, used as a proxy for net profit, of $2.3bn (£1.8bn) for the three months to 30 September.

The figure beat analyst expectations of $2.1bn (£1.6bn), according to an LSEG-compiled consensus.

However, the figure was worse than the $2.8bn (£2.2bn) profit reported for the second quarter of 2024 and far below the $3.3bn (£2.5bn) reported for the third quarter of 2023.

Source link

Yougov shares jump after revenue and profit growth revealed

Yougov shares jumped 13 per cent on Tuesday as the data firm reported revenue and operating profit narrowly ahead of full-year expectations.

In unaudited results for the year to 31 July, 2024, Yougov posted a three per cent organic revenue increase, with reported revenue up 30 per cent to £258.3m, driven by its recent CPS acquisition.

This outpaced guidance offered in August, owing to higher-than-expected research activity in July.

Adjusted operating profit inched up from £49.1m in 2023 to £49.6m, with trading this year tracking last year’s levels and reflecting slower sales bookings in the second half.

Source link

Budget today: How will it affect my savings and what should I do

There has been fevered speculation about changes to pension savers’ tax allowances and other perks ahead of today’s Budget statement.

Reports that pensioners could have tax breaks cut or axed led to savers withdrawing chunks of their retirement pots ahead of Chancellor Rachel Reeves’s big announcement.

Other speculation focused on tax breaks for workers planning to retire, spurring them to do the opposite, and pack more cash into their pensions in case their own tax incentives are slashed.

What might the chancellor do?

You may have missed the fact your bank has cut your savings rate. We are seeing things cut across the board – keep an eye on that

Sarah Coles, head of personal finance at stockbroker Hargreaves Lansdown

Reeves has tasked herself with fixing a gap in the nation’s finances of £22bn. She has also pledged to bring the country’s debts to heel and to avoid raising income tax rates, one of the easiest and least popular ways to bring in money.

Instead, she is reportedly considering other revenue-raising means, such as cutting perks or taxing things like gains in the value of assets like company shares or second homes.

For at least a couple of previous Budgets, there has been speculation that the generous tax breaks pensioners and pension savers get could be cut. This speculation has intensified.

As things stand, a retiree with a private pension pot of up to just over £1m can withdraw a quarter of that money and pay no tax, meaning a withdrawal of up to £268,275. Reeves could cut or end that allowance, since it benefits the well-off the most.

Workers saving for their pension can do so before income tax is paid. For higher earners – taxpayers paying 40 per cent income tax on their earnings – this is a very generous break. It means £100 paid into their pension pot costs them just £60 in taxed income.

But again, it benefits the best off the most, with earners on £50,271 and above getting the 40 per cent relief and lower earners getting only 20 per cent.

Some campaigners advocate for a flat rate of tax relief of 30 per cent, which would benefit everyone.

What should I do with my savings ahead of the Budget?

“The main thing is not to be rushed into action by speculation ahead of the actual announcement,” advises Sarah Coles, head of personal finance at stockbroker Hargreaves Lansdown.

“Don’t do anything rash,” she says. “It’s really important people don’t rip out tax-free cash without having a plan for it.”

Pensions can be accessed from age 55 for some people, and it’s important not to drastically shrink your savings if they must last you another 30 or even 40 years. Taking the money out can tempt you into spending it.

“If you do want to withdraw some pension cash, put it into an ISA, which protects interest payments and other gains from tax, just like a pension does,” Coles says.

“Outside pensions, it is worth watching out for and making use of other allowances,” says Coles. “Now that interest rates are higher, it is worth being aware that £1,000 of interest can be received tax-free for lower-rate taxpayers, but only £500 for higher-rate payers.”

There is also speculation Reeves may increase capital gains tax or cut allowances, although she is likely to leave the tax on second homes alone.

“If you own shares outside a pension or ISA, you can book £3,000 of gains a year tax-free. It might be worth doing that before the Budget,” says Coles.

She adds: “It’s worth thinking about planning as a couple. The £20,000 ISA allowance is the same per person. This means if your ISA is full, you could use your spouse’s.”

What about savings?

“The Budget has the effect of drowning out all other personal finance news,” says Coles. “The other thing to bear in mind is savings rates dropping. You may have missed the fact your bank has cut your savings rate. We are seeing things cut across the board – keep an eye on that.”

While rates are higher than their pre-Covid historic lows, they are ebbing downwards, so looking at what your savings accounts are offering is worthwhile.

Similarly, mortgage rates have drifted downwards, and those on high variable rates might consider securing a fixed rate.

https://www.independent.co.uk/news/uk/home-news/budget-2024-today-savings-advice-b2637957.html

Football regulator boss should come from the Square Mile, says Crouch

Former sports minister Tracey Crouch says the incoming football regulator should be run by someone with a background in the City.

Crouch has done more than anyone to give rise to the regulator by making it a key recommendation in her fan-led review of football governance.

A revised bill laying out the watchdog’s proposed powers was published last week and former Conservative MP Crouch believes it should be helmed by someone whose expertise lies primarily in finance, not football.

“Personally, I would love someone with a financial background with an interest and understanding in football as opposed to someone who has a football background with an interest in finance,” Crouch told the Not Just Football podcast sponsored by Sky Bet. 

Source link 

Leave A Reply

Get OFFER

Say 'yes' to liberty

Sign up to your personalized news briefing - delivered!

Newspapers, News Summary, Truth and freedom

30% off - code - 9ANB1EB283

Access the news from all the main News sources

We bring you CNN BBC FOX EURO NEWS AL JAZEERA – all in one place. With a perfectly crafted email with your news summary