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Car companies that are slow to switch to electric vehicles will go bust like Blockbuster Video, a government climate adviser has suggested.
Dr James Richardson, of the public advisory body the Climate Change Committee, said car companies must speed up investment in EV infrastructure or risk being replaced by newer competitors.
He told MPs on the Environmental Audit Committee: “We know from previous transitions between technologies that incumbent firms can get left behind, we all remember Blockbuster Video or Kodak.”
Blockbuster video, which ran thousands of video rental stores, crashed into bankruptcy in 2010 after failing to adapt to streaming. Kodak filed for bankruptcy in 2012 after digital cameras and smartphones made film largely redundant.
Dr Richardson added: “When these new technologies come in, it can be easy for incumbents to think they have more time to change than they do, and the zero emission vehicle mandate is actually a way of saying to industry, as much as anything, ‘look, actually you have less time than you think’.”
The comments come as the government faces pressure to water down EV sales targets that the car industry says are unachievable.
The Government has agreed to review the current system but will not back down from an outright ban on petrol and diesel vehicles by 2030.
Dr Richardson said the car market was on track to meet this year’s targets for electric vehicle sales but the van market was “much more challenging”.
Measures are needed to make electricity cheaper and improve access to charging infrastructure - including substation connections to allow van fleet charging and low-cost overnight charging for people who do not have driveways, he said.
Read the latest updates below.
06:51 PM GMT
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05:57 PM GMT
Dollar falls as traders increase bets on US rate cuts
The dollar fell 0.8pc against the pound today after data showed new orders for key US-manufactured capital goods unexpectedly fell in October.
Traders increased bets on a US rate cut next month.
While the Federal Reserve is widely seen easing rates in December, traders expect the Bank of England to hold borrowing costs amid concerns about inflation rising again.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was down 1pc to 105.96.
05:46 PM GMT
Net zero is making Britain poorer, says Trump’s energy secretary
Donald Trump’s pick for US energy secretary attacked Britain’s net zero drive for making the country poorer.
In a report on sustainability released earlier this year, Chris Wright – who is being proposed for the job by the Trump transition team – said the UK’s embrace of green energy had been a costly failure that drove away investment.
Mr Wright suggested that the scramble to ditch fossil fuels in favour of wind and solar power had resulted in higher prices, driving away energy-intensive businesses and contributing to Britain’s national decline.
A report by his company, Liberty Energy, released in February, said: “The UK, although no longer part of the EU, has continued aggressive climate policies that have driven up energy prices for its citizens and industry. The results are troubling.
“The once world-leading United Kingdom now has a per capita income lower than even the poorest state in the United States.”
05:33 PM GMT
Global stocks fall with dollar as investors assess US economy
A gauge of global stock prices edge lower as investors assessed new economic figures for the US economy.
The MSCI World index fell 0.2pc, with many of the major European indexes, apart from in London, falling.
On Wall Street, the S&P 500 fell 0.5pc, the Dow lost 0.1pc and the Nasdaq dropped 1pc.
Shares lost ground as investors read through new consumer prices data. This showed that in the 12 months through October core inflation, which the US central bank tracks for monetary policy, increased 2.8pc after climbing 2.7pc in September.
Meanwhile, consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.4pc last month after a 0.6pc advance in September, according to figures released today.
Peter Cardillo, chief market economist at Spartan Capital Securities, said: “This was no earth-shattering news for the markets. We all expected that inflation would pop up a little bit, but inflation is not getting out of hand. And that’s the key.”
04:58 PM GMT
FTSE closes up
The FTSE 100 closed up this afternoon, as many European stock indexes fell.
The blue-chip index rose 0.2pc, with Airtel Africa rising the most, up 5.2pc, followed by housebuilder Vistry, up 2.7pc.
At the other end of the index, gambling group Entain lost 2.6pc, while packaging giant DS Smith fell 2pc.
The mid-cap FTSE 250 rose almost as much as the main index.
Auction Technology was the biggest riser, putting on 15.1pc, followed by Ithaca Energy, up 5.6pc.
Pets at Home was the biggest faller, losing 17pc, while chemicals group Johnson Matthey fell 11.7pc.
04:54 PM GMT
Zero emission regulations ‘not the cause of carmakers’ woes’, claims think tank
Zero emission vehicle (ZEV) rules are being scapegoated for the turmoil facing car manufacturers, a centre-Left think tank has suggested.
The Institute for Public Policy Research (IPPR) said that carmakers had inflicted their woes on themselves through “lack of investment and innovation”.
George Dibb of the IPPR said: “The market for petrol cars and vans is shrinking but some UK car makers have been slow to realise this. The challenges they now face come from a lack of investment and innovation, not from the regulations that are encouraging them to do that.
“But government also has a role in supporting the private sector. Government rules on electric vehicle sales are driving investment and innovation. However, the government’s industrial strategy should do more to help car manufacturers make this pivot. Consumers need financial support to buy British-made electric vehicles to drive demand for these products and ensure people benefit from the road to net zero.”
04:46 PM GMT
Mexico warns Trump tariffs would kill 400,000 US jobs
Donald Trump’s 25pc tariff on Mexican exports could kill 400,000 US jobs, the Mexican government has said.
Economy minister Marcelo Ebrard told reporters that the proposed tariffs were “a shot in the foot”.
He warned the tariffs would lead to massive US job losses, lower growth and hit U.S. companies producing in Mexico by effectively doubling the taxes they paid. “The impact on companies is huge,” he said.
The proposed tariffs would hit the automotive sector’s top cross-border exporters especially hard, he added, namely Ford, General Motors and Stellantis, and push up vehicle prices for consumers by thousands of dollars.
Analysts at Barclays said they estimate the proposed tariffs “could wipe out effectively all profits” from the Detroit three carmakers.
“While it’s generally understood that a blanket 25pc tariff on any vehicles or content from Mexico or Canada could be disruptive, investors underappreciate how disruptive this could be,” they wrote in a note on Tuesday.
04:39 PM GMT
French risk premium hits 12-year high
The premium investors demand to hold French debt rose to its highest level since 2012 on Wednesday in a sign of worries over the country’s finances, while benchmark German yields fell along with those in the United States.
The spread between French and German 10-year bond yields rose to 0.9 percentage points, the highest since the euro zone crisis 12 years ago during trading today.
French hard-Right leader Marine Le Pen has been threatening to bring down France’s coalition government in a no-confidence vote over proposed tax rises and spending cuts in the 2025 budget.
Prime Minister Michel Barnier told French broadcaster TF1 on Tuesday there could be “serious turbulence on the financial markets” if the government collapses.
France’s 10-year bond yield was flat at 3.025pc this afternoon.
“Investors remain concerned about political developments in France, especially due to the government’s difficulties in approving next year’s budget,” said analysts at Italian bank UniCredit in a note on Wednesday.
04:20 PM GMT
Russian rouble weakens further against the dollar
The Russian rouble weakened further today, after losing a quarter of its value since August.
It now costs more than 113 roubles to buy a dollar.
The rouble’s fall caught off guard economists who had expected the Russian currency to hit the 100 mark against the dollar in one year, according to the Reuters poll in early November.
The rouble’s fall has been compounded by a fall of more than 20pc in the stock market so far this year as investors shift their savings from stocks to savings, which offer interest above the central bank’s benchmark rate of 21pc.
Analysts are now predicting that the rouble may hit 115-120 before the end of the year.
The rouble’s fall is fuelling inflation, which is set to exceed the central bank’s estimate for this year, working counter to the regulator’s painful monetary tightening with the benchmark interest rate at the highest level since 2003.
The central bank estimates that the rouble weakening by 10pc adds 0.5 percentage points to inflation, implying that the rouble’s four-month fall could add 1.5 percentage points to the current inflation rate.
“For the central bank, it represents a challenge in combating rising prices,” economist Evgeny Kogan said.
The rouble’s slide was exacerbated by the new sanctions on Russia’s financial sector, which disrupted foreign trade payments, especially for oil and gas, creating a physical shortage of currency in the Russian market, analysts said.
04:13 PM GMT
Dow Jones breaches 45,000 for the first time
The Dow Jones hit an all-time high of above 45,003 this afternoon, as US stocks continue to push higher after the election of Donald Trump.
Chris Beauchamp, chief market analyst at online trading platform IG, said:
As Americans look forward to Thanksgiving, the Dow has crossed yet another milestone.
04:02 PM GMT
Carmakers that don’t embrace EVs will go the way of Blockbuster, claims climate adviser
Car companies that are slow to switch to electric vehicles are like Blockbuster Video, MPs have been told.
Dr James Richardson, of the public advisory body the Climate Change Committee, told MPs that he supports the zero emissions mandate in order to combat emissions from transportation.
He told MPs on the Environmental Audit Committee: “We know from previous transitions between technologies that incumbent firms can get left behind, we all remember Blockbuster Video or Kodak.
“When these new technologies come in, it can be easy for incumbents to think they have more time to change than they do, and the zero emission vehicle mandate is actually a way of saying to industry, as much as anything, ‘look, actually you have less time than you think’.”
He said the car market was on track to meet this year’s targets for electric vehicle sales but the van market was “much more challenging”.
Measures are needed to make electricity cheaper and improve access to charging infrastructure - including substation connections to allow van fleet charging and low-cost overnight charging for people who do not have driveways, he said.
03:52 PM GMT
Trump victory causes investors to ‘scorn’ Europe, says Barclays
Donald Trump’s re-election has caused investors to put money into US stocks at the expense of Europe, Barclays has said.
A report from the banking giant said that “inflows into US equities surged post election”.
It said: “Equity flows reached the highest levels since Mar 21 as Trump’s victory unleashed animal spirits, and the biggest retail buying frenzy since 2021...
“It’s ‘America first’ for equity flows. Trump’s victory has amplified the divergence between US and ROW equity flows, and US equities (67pc) are now at an all-time high proportion of MSCI World, while European equities are at an all-time low (13pc)....
“The outcome of the election appears to have further strengthened the idea that US exceptionalism will continue, for both the economy and markets. Investors voted with their feet, and allocated a record $109bn monthly flow to the US, helping push dollar higher, at the expense of nearly all other regions bar Japan.”
The report also said that Rachel Reeves’s Budget failed to lift the gloom facing the UK economy. The analysts wrote:
“UK’s budget last month was seen ahead of time to be a clearing event that would allow investors to move past the gloomy narrative that preceded it. However, post event the gloominess has returned, with the general perception that the budget is unlikely to do much for growth despite higher investment, but may well keep inflation slightly more elevated than otherwise.
“The marginally hot CPI [inflation] number last week reinforced this view, which calls into question the number of rate cuts the BOE will manage to deliver, causing further doubts around the UK investment case, and we are seeing renewed outflows as a likely consequence.”
03:34 PM GMT
China electric car makers should face anti-subsidy investigation, says senior MP
The Government should “launch anti-subsidy investigations” into Chinese electric vehicle manufacturers to ensure “a level playing field”, a senior MP has said.
Liam Byrne, the chairman of the Business and Trade Committee, said he hoped the Business Secretary Jonathan Reynolds would look again “at the perversities” at rules that could allow “makers of petrol engines in this country, transferring credits to companies like Elon Musk’s Tesla and Chinese EV makers”.
He continued: “But if we really want to make sure that there is a level playing field, why don’t we reverse the decision of the last secretary of state, follow the EU Commission and launch anti-subsidy investigations into Chinese EV makers?
“The Trade Remedies Authority is ready to go, it just needs the Secretary of State to keep the green light.”
Mr Reynolds replied: “What we have inherited is a position where how the policy operates, the flexibilities that are contained within it, and the fact that no domestic producer is on track means, effectively, the transfer (Mr Byrne) has described is the problem.”
He added: “We must also remember that the UK automotive sector is a world class export-led sector, if we were to go in any kind of protectionist route on principle, we’ve got to bear in mind what it would mean for the markets we sell those vehicles into.
“If you sell 80pc of your product abroad, it is the international export position you’ve got to consider alongside the domestic market. But I say again, if industry makes that request, of course it would be followed.”
Thanks for following our live updates so far. My colleague Alex Singleton will guide you through into the evening.
03:21 PM GMT
Pound rises as US inflation figures rise as expected
The pound has risen against the dollar after a closely watched gauge of US inflation rose as expected last month.
Sterling was up 0.5pc versus the US currency at $1.264 following a mixed set of data on the American economy which threw up few surprises.
The PCE index rose as expected from 2.1pc to 2.3pc in October, while the US economy was confirmed to have grown by 2.8pc in the third quarter.
The pound was little changed against the euro, which is worth 83.4p.
03:07 PM GMT
US inflation gauge gathers pace
A closely watched measure of US inflation picked up last month a day after minutes from the Federal Reserve’s last meeting showed policymakers favour a “gradual” pace of interest rate cuts.
The personal consumption expenditures (PCE) price index rose from 2.1pc to 2.3pc in October, as had been expected.
The core PCE index, which strips out volatile food and energy prices, rose 2.8pc, in line with estimates.
Minutes from the Federal Reserve’s November meeting said rate setters thought that if inflation kept moving sustainably to its 2pc target “it would likely be appropriate to move gradually toward a more neutral stance of policy over time”.
It comes after separate data shows the US economy expanded at a solid pace in the third quarter, largely powered by a broad-based advance in consumer spending and steady business investment.
Meanwhile, other figures showed initial jobless claims were little changed at a historically low level.
02:50 PM GMT
EV targets ‘causing real damage to UK investment and industry’
The Government should scrap its electric vehicle mandate and let the market evolve by itself, a think tank has said.
Energy analyst Andy Mayer of the Institute of Economic Affairs said: “Policies need to change. The UK’s unrealistic desire to ban all sales of new petrol and diesel vehicles by 2030, and the linked zero emissions vehicle (ZEV) mandate, is causing real damage to UK investment and industry.
“This plant was due to expand to produce electric vans. It’s now closing, directly undermining the intentions of the policies in question.
“The ZEV forces manufacturers to hit rising quotas for EV sales, from 22pc this year to 80pc in 2030, with the threat of heavy fines if they miss.
“This is supposed to encourage EV discounting, and it does, but not enough to sufficiently drive up demand, given a price premium over conventional vehicles of 40-50pc.
“This leaves manufacturers with the difficult decision to curtail conventional sales or exit the market. Vauxhall have evidently decided on the latter, at least for part of their UK output.
“A wiser path would involve scrapping the mandate and targets, and letting the EV market evolve in response to demand, nudged only by incentives that are already there in high rates of tax on fuel and polluting vehicles.”
02:37 PM GMT
Wall Street mixed ahead of inflation figures
Wall Street’s main indexes lacked direction ahead of a key inflation report that could influence the US Federal Reserve’s plans for interest rate cuts.
The Dow Jones Industrial Average rose 132 points, or 0.3pc, at the open to 44,992.31 ahead of the Personal Consumption Expenditure (PCE) report due at 3pm.
The S&P 500 fell 7.5 points, or 0.1pc, at the open to 6,014.11​, while the Nasdaq Composite dropped 42.6 points, or 0.2pc, to 19,132.98.
The Commerce Department’s second estimate of US GDP confirmed the economy grew at 2.8pc in the third quarter, in line with economists’ forecasts.
A separate report showed 213,000 jobless claims the previous week, marginally lower than the estimate of 216,000.
02:31 PM GMT
Luton MPs criticise ‘callous decision’ to close van plant
Luton MPs expressed their dismay at Stellantis’s “callous decision” to close its van-making plant in the town, putting 1,100 jobs at risk,
Rachel Hopkins, the Labour MP for Luton South and South Bedfordshire, said: “I refer to my registered interests as a trade union member, and also someone with friends who have heard that they have lost their jobs.
“Closing the Luton site will damage our local economy. With 600 jobs at risk, more in the supply chain, and workers and families receiving this devastating news just before Christmas, I welcome the comments from the Secretary of State saying decarbonisation must not mean deindustrialisation.”
Sarah Owen, Labour MP for Luton North, said: “Vauxhall is, or was, synonymous with Luton. Stellantis’s callous decision will impact our whole town, our whole region, even. So what support will be offered to not just the skilled and dedicated Vauxhall workers who are losing their jobs, but also to our whole town as a whole to cope with the loss of this manufacturing giant which Luton helped build?”
Business Secretary Jonathan Reynolds replied: “The whole decision is regrettable, but the timing is particularly regrettable around it.”
He added: “I would not want to minimise the impact of this in any way, I believe her area is a place of considerable economic strength, firms in engineering and aerospace, in air travel, in the creative industries. There’s a lot to be optimistic about for the future, but that doesn’t take away the bitterness of this particular blow for Luton at this time.”
02:04 PM GMT
Von der Leyen to lead effort to turn around Europe’s struggling car industry
Ursula von der Leyen has announced she will personally lead a new initiative to help Europe’s troubled car industry steer through “a deep and disruptive transition” that has put thousands of jobs at risk.
The European Commission president listed salvaging Europe’s care sector among the priorities of her second term, which she said will focus on relaunching the European Union’s economic competitiveness.
“Europe’s car industry is a European pride. Millions of jobs depend on it,” she told policians gathered in Strasbourg to greenlight her new team.
“We have to make sure that the future of cars will continue to be made in Europe”.
Ms von der Leyen, 66, said she will convene a “strategic dialogue on the future of the car industry” in the EU.
This will bring key sector players around the table “to design solutions together as this industry goes through a deep and disruptive transition”, she said.
Europe’s car industry has been plunged into crisis by high manufacturing costs, a stuttering switch to electric vehicles (EV) and increased competition in key market China.
German car giant Volkswagen is seeking to push through a major cost-cutting drive, and has warned it might close factories in Germany for the first time in its history.
01:31 PM GMT
Reynolds pledges ‘pragmatic’ approach as he defends consultation on electric car rules
Jonathan Reynolds defended the Government’s consultation on electric car rules after announcing a consultation aimed at watering down rules on the switch away from petrol and diesel vehicles.
The Business Secretary said car makers were supportive of a ban on new combustion engine vehicles but were concerned about the zero emission vehicle ( ZEV ) mandate, which imposes fines for missing sales targets.
Mr Reynolds said: “The Zev mandate policy the shadow minister mentioned is a policy of the previous government, of which he is aware.
“The changes the Government made were not to the ZEV mandate. They were not pragmatic on it.
“They changed the destination and kept the fines and the ramp up and the thresholds exactly the same.
“What they did was give no flexibility or pragmatism in how that policy operated but still undermined the transition, leading to a massive reduction in consumer confidence.”
He added that car industry figures were “absolutely clear that it’s the destination they support”.
He said: “It’s the previous Conservative government’s policy as to how this operates which is causing them the problems.”
01:19 PM GMT
Ministers accused of ‘misleading’ business over ‘jobs killer’ net zero plans
The Business Secretary has been accused of “misleading” businesses about plans to end the sale of “purely” petrol and diesel cars by 2030.
Shadow business secretary Andrew Griffiths said John Reynolds had tried to slip in a “subtle change” to the Government’s electric vehicle policies as it announced a consultation on electric vehicle rules.
He pointed to Mr Reynolds talk of ending the sale of “new purely petrol and diesel cars by 2030”.
Mr Griffiths said: “He has tried to slip a subtle change in there, the consequences of which are significant.
“Whilst I welcome that for once this Government has listened to business, he appears to be misleading them at the same time.”
He added that the Government’s net zero policy was “unworkable for industry” and a “jobs killer”.
He said: “They say they have been talking since July so why... this panicked U-turn when it’s already too late?”
Mr Griffith said former prime minister Mr Sunak had taken the decision to push back the ban on new petrol and diesel vehicles from 2030 to 2035.
“His party unilaterally reversed those changes and brought the deadline forward to 2030.”
01:07 PM GMT
Reynolds confirms consultation on watering down electric vehicle rules
Jonathane Reynolds confirmed the Government will hold a fast-track consultation on loosening the rules designed to push car makers towards selling electric vehicles.
He told the Commons: “This transition must be done in partnership with government, industry and of course consumers.
“That is why, my Right Honourable Friend the Secretary of State for Transport and I are listening closely to concerns of the automotive industry and the wider sector about transition to electric vehicles and the Conservative party’s zero emission vehicle mandate.
“We held a roundtable earlier this month to hear directly from major automotive companies, from the SMMT and the charging sector.
“And in response, we will be shortly fast tracking consultation on manifesto commitment to end the sales of new purely petrol and diesel cars by 2030 but we will use that consultation to engage with industry on the previous government’s Zev transition mandate and the flexibilities contained within it.
“And we will welcome on board their feedback as we move forwards.”
01:00 PM GMT
Car manufacturers face ‘global’ challenges, says Reynolds
The closure of the Luton plant was a symptom of wider “challenges” across the car industry, the Business Secretary said.
Jonathan Reynolds told the Commons: “We have been forced to accept this is ultimately a commercial decision by Stellantis as they respond to wider challenges in the sector.
“I will be frank with honourable members, these challenges are not confined to any one company.
“Car manufacturers around the world are battling with increased costs, supply chain issues and changing consumer demand in a highly competitive, fast-evolving market.”
He continued: “Many of the challenges faced by our car manufacturers are global in nature and they cannot be resolved by UK government intervention alone.
“And whilst this announcement is not what we wanted nor what we worked towards, we must not mischaracterise this.
“It categorically does not signal retreat by Stellantis.”
12:45 PM GMT
Plant closure was ‘dark day for Luton’, says Reynolds
Jonathan Reynolds said “yesterday was a dark day for Luton” after Vauxhall owner Stellantis said it would shut its plant in Luton, costing 1,100 jobs.
The Business Secretary said it “is an iconic plant” and “few people don’t know someone who works at the site” in the town.
He said he found out about troubles at the site just 10 days after the election and since then has been “involved in intense negotiations to find way to keep site open”.
He admitted he was “aware that Stellantis has significant excess capacity across Europe” and said the decision would improve its bottom line.
12:33 PM GMT
Business Secretary addresses Parliament amid electric car crisis
Jonathan Reynolds is preparing to address the Commons over electric vehicle targets, which the Government is expected to relax in the wake of a mounting car industry crisis.
The Business Secretary confirmed on Tuesday night that the Government would review its zero emission vehicle (ZEV) mandate targets.
It comes after multiple warnings from carmakers that they were jeopardising the future of the industry.
Vauxhall owner Stellantis said on Tuesday that it would close its factory in Luton, while Ford will axe 800 UK jobs as the industry struggles to shift towards electric vehicles.
Watch his appearance below:
12:20 PM GMT
London Stock Exchange being ‘regulated into oblivion’
Just Eat’s decision to quit the London Stock Exchange is a “disaster” for the City, according to Telegraph readers.
Here are some comments from your fellow readers and you can join the debate below:
12:12 PM GMT
Nationwide profits down as it completes Virgin Money takeover
Nationwide has announced a fall in profits of nearly a quarter compared to last year, as it completed the acquisition of Virgin Money last month, writes Robert White.
The building society reported an underlying pre-tax profit of £959m for the six months to the end of September, down from £1.3bn the same period a year ago.
It said the decline in earnings was driven by its decision to offer competitive savings rates to customers, as the benefit of higher borrowing costs begin to fade.
However, since taking over Virgin Money, Nationwide said it has made a gain of £2.3bn, as the value of the rival bank’s assets was well above the £2.8bn takeover price.
Debbie Crosbie, Nationwide’s chief executive, said: “This gain provides significant headroom to cover our investment in integration, as well as in service and value.”
She added: “The economic outlook remains uncertain, and the interest rate outlook means we expect to have passed peak profitability.”
11:57 AM GMT
South West Water owner’s losses deepen after parasite outbreak
A parasitic outbreak in Devon earlier this year pushed the owner of South West Water further into the red in the first half, after it was forced to pay compensation.
London-listed Pennon said the incident in Brixham, south Devon, cost it £16.3m, after an outbreak in the water supply left some people in hospital, while more than 100 others reported symptoms including diarrhoea.
The parent company made a £38.8m pre-tax loss in the six months to September.
However, its shares rose 3.1pc as it said capital spending, on things like upgrading its water infrastructure, rose to £331.8m, up about a quarter on the same period last year.
Pennon said the £16.3m went towards compensating some customers, providing eight weeks’ worth of bottled water for people in the affected area, and carrying out “extensive interventions to clean and filter the network”.
Chief executive Susan Davy said: “When things go wrong, as they did for customers and businesses in and around Brixham earlier this year, we put it right, with no excuses. But we know we have more to do.”
11:31 AM GMT
Ford: Give drivers tax breaks or we’ll miss electric car targets
Drivers must be given tax breaks to encourage uptake of electric vehicles (EVs) or carmakers will miss “stringent” net zero targets, the boss of Ford UK has warned.
Lisa Brankin, chairman and managing director of Ford UK, said demand for EVs was well below the level used by the Government to set its zero emission vehicle (ZEV) mandate targets.
It comes after Jonathan Reynolds, the Business Secretary, confirmed on Tuesday night that the Government would review the rules after multiple warnings from carmakers that they were jeopardising the future of the industry.
Read what Ms Brankin said proves government policy can boost uptake.
11:12 AM GMT
European stocks drop amid Trump tariff threat
European stock markets have slumped as the threat of tariffs from Donald Trump’s impending administration looms over markets.
The Dax in Frankfurt was down 0.6pc while the Ibex 35 in Madrid dropped 1pc after the president-elect said he would impose tariffs on Canada, Mexico and China on his first day in office.
The European Union is bracing for Mr Trump to launch similar tariffs against the bloc, where it has a trade deficit. The US is the EU’s largest trading partner.
The Cac 40 in France was down 1.4pc as concerns also mount about France’s growing national debt
Lenders BNP Paribas, Societe Generale and Credit Agricole fell between 2pc to 3.4pc as French bonds took a hit, driving the premium the government must pay for long-term borrowing to its highest since 2012.
Far-right leader Marine Le Pen has been threatening to topple the government in disagreement with measures to cut spending and raise taxes in the budget.
Asset manager DWS wrote to clients: “Over the next couple of weeks, we will continue to see elevated headline risks surrounding the French budget for 2025.”
10:43 AM GMT
Pets At Home plunges as Covid boom ends
Pets At Home shares were the worst performer on the FTSE 250 as the company warned that post-pandemic boom in pet ownership was waning.
The stock fell as much as 11.9pc today to a four-year low after it issued a profit warning ahead of an expected slowdown in growth in the second half of the year.
Sales passed £1bn for the first time in 2021 as pet ownership in the UK surged to an all-time high during the pandemic.
However, the company said it was “operating in an unusually subdued pet retail market” which it expects to continue in the second half of the year.
Pre-tax profits rose 14.1pc in the first half of its financial year to £54.5m thanks to its Vet Group division, but it said retail had been “impacted by the slower sales growth”.
It also warned of an £18m increase in costs for the business in the wake of the tax-rises announced in the Budget last month.
10:20 AM GMT
BT consumer chief exits after losing out on top job
The head of BT’s consumer arm is to step down after seven years in the role as the broadband giant prepares for more rounds of cost-cutting.
Marc Allera, the chief executive of the biggest of BT’s three main divisions, is to hand over to his successor in spring.
The 52-year-old’s exit has been expected after he narrowly missed out on the top job in summer 2023.
Chairman Adam Crozier surprised investors and staff by rejecting a promotion for Mr Allera in favour of appointing one of BT’s non-executive directors, Allison Kirkby.
It comes as a host of top jobs are expected to become available in the telecoms sector.
09:54 AM GMT
German consumer morale suffers amid job fears, survey shows
German consumers are feeling more pessimistic heading into December due to growing uncertainty about jobs, a key survey showed.
Morale has fallen sharply in the latest edition of the poll of around 2,000 people by GfK and the Nuremberg Institute for Market Decisions.
The forward-looking indicator slipped 4.9 points to minus 23.3 points, a level last seen in late 2023, after rising for the two previous months.
It comes as a string of big industrial players have announced job cuts, from car supplier Bosch to steelmaker Thyssenkrupp.
Meanwhile, Volkswagen has warned it might close factories in Germany for the first time in its history.
The poll was conducted from late October to November 11 - and wrapped up just days after Germany’s government collapsed, paving the way for early polls in February.
It also included the period after Donald Trump won a thumping victory in the US presidential election.
NIM consumer expert Rolf Buerkl said: “The last few weeks of the year will end with a significant setback in consumer sentiment.
“Concerns about (jobs) in Germany are growing. Reasons for this are certainly the job cuts reported by industry and the relocation of production abroad.”
09:37 AM GMT
Consumers need incentives to buy electric vehicles, says Ford UK boss
The car industry supports targets around electric vehicles (EVs) but it needs government-backed incentives to boost their uptake by customers, the managing director of Ford UK said.
The Business Secretary Jonathan Reynolds has confirmed a review of the Government’s zero emission vehicle (ZEV) mandate, and will launch a “fast-track” consultation.
Ford UK chairman Lisa Brankin told BBC Radio 4’s Today programme: “I think we should probably say thank you to the Government for listening.
“I think the really important thing is that the consultation is fast and the Government acts quickly as a result of that.
“And as I said before the one thing that we really need from the Government is government-backed incentives to urgently boost the uptake of electric vehicles, because without demand the mandate just doesn’t work.”
She said Ford has invested “significantly” in the production and development of EVs, with “well over” £350m invested around electrification in the UK, adding: “So we kind of need to make it work.”.
Asked whether she is happy for the Government to stick to the targets around EVs and ending production of diesel and petrol cars as long as they help persuade customers to buy electric vehicles, Ms Brankin said: “Yes, I think so.
“As an industry we have repeatedly said that we support the Government’s trajectory and we support the ambition that the Government has set out, it’s just that there isn’t customer demand.”
09:22 AM GMT
Trump tariffs pose threat to economic growth, warns Bank of England official
Donald Trump’s plans to impose trade tariffs put economic growth at risk in countries like the UK, one of the deputy governors of the Bank of England has warned.
Clare Lombardelli said Britain’s economy could be weighed down by the uncertainty about trade policy in the short term as the president-elect prepares to return to the White House in January.
She added that increased trade frictions would dent productivity in the longer term.
“I don’t want to speculate on the specifics but we know barriers to trade are not a good thing, whether they are tariffs or regulatory or others,” Ms Lombardelli told the Financial Times.
“Whether you are an economic historian, an economic theorist or a data-driven economist, the impact is clear in terms of its direction. In terms of its size, that depends on the circumstances.”
09:09 AM GMT
Union claims ‘substantial victory’ for Tube workers
The RMT union has claimed a “substantial victory” for its members on London Underground in a pay dispute.
The Rail, Maritime and Transport union (RMT) said it had accepted a pay offer it maintained had delivered notable improvements in terms and conditions.
Lower-paid Tube workers will receive pay increases of between 5pc and 6.6pc, with an average increase of 4.6pc, said the union.
Other improvements include extended paternity leave, three years’ protection of earnings for medically displaced staff, and expanded travel benefits, it added.
RMT general secretary Mick Lynch said: “This agreement is a landmark victory for our members and a vindication of RMT’s determination to fight for fair pay and conditions.
“By standing together and using the power of collective bargaining, we have not only secured a strong deal but also protected key safeguards that underpin our members’ work-life balance and dignity in the workplace.
“This success highlights the importance of RMT’s resolute industrial approach, and we will continue to build on this momentum to deliver further improvements in 2025.”
08:56 AM GMT
UK stocks edge higher after Trump tariff threat
Stock markets in London edged tentatively higher amid the threat of tariffs from Donald Trump.
The FTSE 100 and FTSE 250 were both up about 0.1pc a day after the US president-elect said he would impose 25pc tariffs on his closest trading partners Canada and Mexico, with an additional 10pc on Chinese goods.
Investors will also look out for the US PCE figures later, which are the Federal Reserve’s preferred indicator of inflation in the world’s largest economy.
In corporate news, easyJet shares rose as much as 4.4pc to the top of the FTSE 100 after it revealed profits soared by 34pc in its annual results.
British Airways owner IAG’s shares rose as much as 1.4pc.
Pets At Homes stock plunged as much as 9.8pc to the lowest level in four years as it warned the pet retail market will remain subdued for the rest of its financial year. It was the worst performer on the FTSE 250.
Aston Martin was down as much as 9.1pc after its second profit warning in two months.
Special chemicals company Johnson Mattey fell as much as 7pc to the lowest level in 15 years after its half-year profits were lower than analysts had expected, with adjusted operating earnings down 13pc to £156m.
08:32 AM GMT
Aston Martin plunges as it taps shareholders after fresh profit warning
Aston Martin shares plunged in early trading after the company tapped investors for another £111m after issuing another profit warning.
The luxury car maker fell as much as 9.1pc to 98.1p as it raised funds by issuing shares at 100p each, which was 7.3pc below Tuesday’s closing share price of 107.9p.
The iconic brand, closely associated with the James Bond films, also raised another £100m in debt as it issued its second profit warning in two months, warning that adjusted underlying earnings would be between £270m and £280m this year, which was below analyst estimates.
It blamed delays in deliveries of some of its Valiant models. It had already cut its guidance in September.
Adrian Hallmark, who joined as chief executive from Bentley in August, said: “With this financing successfully secured, we are now well positioned for growth, underpinned by the strength of our brand and the world-class product portfolio we have brought to market.”
Aston Martin is in the middle of a multi-year turnaround effort kicked off by billionaire Lawrence Stroll, who became its chairman in January 2020 after rescuing the struggling brand.
Mr Stroll said: “Aston Martin has made huge strategic progress since the Yew Tree Consortium first invested in the company in 2020, transforming our product offering, revitalising our brand and accelerating our business operations forward.”
08:14 AM GMT
Business Secretary to speak in Commons amid plans to water down electric car rules
The Business Secretary will give a statement in the Commons today after announcing a “fast-track” consultation on plans which are expected to relax rules on electric car production.
The Government is poised to water down the zero emission vehicle (ZEV) mandate after warnings from carmakers that the rules were putting the industry’s future at risk.
The mandate, which came into law in January, requires car manufacturers to sell a certain percentage of electric vehicles each year.
Asked whether the phase out of new petrol and diesel vehicles under the ZEV could happen as quickly as planned, minister Stephen Morgan told Sky News: “We’re going to work very closely with industry UK to make sure that this is rolled out effectively.
“There will be a consultation, which I know the Business Secretary will be setting out in due course, and there will be a statement in the House later today.”
He added: “It is absolutely right that we’ve got the right infrastructure in place to make this a suitable journey and an easy journey for motorists to move towards ... We’ve set out the ambition, we obviously need to take consumers with us.
“And I know that Johnny Reynolds would do a good job on this work, and he will also be setting out more detail on this later in the House.”
08:06 AM GMT
UK stocks muted ahead of US inflation data
The FTSE 100 was little changed at the open ahead of closely watched US inflation data.
The blue-chip stock index was flat at 8,261.28 while the midcap FTSE 250 was also little changed at 20,558.34 ahead of the PCE data, which is the Federal Reserve’s preferred measure of inflation in the American economy.
07:58 AM GMT
Supermarket loyalty schemes offer ‘genuine savings’, says competition watchdog
Loyalty pricing at UK supermarkets does offer “genuine savings”, but they are not always the cheapest option, the competition watchdog has said.
The Competition and Markets Authority (CMA) said that after analysing 50,000 loyalty-priced products, it found 92pc offered savings on the usual price.
But it stressed that while they are “legitimate” discounts, supermarket customers could still find cheaper options by shopping around.
The CMA added that there was also “room for improvement” over people’s ability to access loyalty schemes and that supermarkets could do more to help people without access to smart phones, or under 18s, to access these prices.
This could include introducing offline sign-up, in-store or via the telephone for example, and lowering the minimum age for joining a scheme, according to the CMA.
07:45 AM GMT
Departing EasyJet boss hails bright future as profits soar
Budget airline easyJet has notched up a 34pc increase in annual profits and said the “future for the company is bright”.
The carrier reported headline pre-tax profits of £610m for the year to September 30, up from £455m 12 months earlier.
It carried 7pc more passengers in the most recent 12-month period at 89.7m, and said trading was also boosted by strong demand for easyJet Holidays, with the division seeing pre-tax profits jump to £190m, up 56pc from a year earlier.
Outgoing chief executive Johan Lundgren, who will be replaced by chief financial officer Kenton Jarvis on January 1, said: “This strong performance - resulting in a 34pc increase in our annual profits - reflects the effectiveness and execution of our strategy as well as continued popularity of our flights and holidays.
“It also represents a significant step towards our goal of sustainably generating over £1bn annual profit before tax.
“It has been a privilege to lead easyJet for the past seven years. I am extremely proud of all that has been achieved, which is a result of the hard work of the entire team.
“I am pleased to be leaving a strong easyJet, the future for the company is bright and I look forward to seeing Kenton delivering his ambitious plans, generating positive shareholder returns while making low-cost travel easy for millions of customers.”
07:39 AM GMT
Pub chain warns of £100m costs amid Reeves’s tax-raising Budget
One of Britain’s largest pub and restaurant chains has warned that it faces £100m of “cost headwinds” in this financial year after Rachel Reeves’s raised taxes and the minimum wage in the Budget.
Mitchells & Butlers - whose chains include Browns, Miller & Carter, Harvester and All Bar One - said it was expecting a jump of more than 5pc on its current cost base.
It said “by far the most significant increase” would come from labour costs, ahead of the rises in the National Living Wage and employer National Insurance contributions (Nics), both coming into effect from April.
The Chancellor announced in the Budget that she would lower the threshold on which Nics applies from £9,100 to £5,000, and raise the rate from 13.8pc to 15pc.
Meanwhile, the National Living Wage will jump by an inflation-busting 6.7pc to £12.21.
Mitchells & Butlers chief executive Phil Urban said: “We face increased inflationary cost headwinds in the year ahead.
“However, we shall remain focused on our established Ignite programme of initiatives and our successful capital investment programme, to drive further cost efficiencies and increased sales.”
The company revealed pre-tax profits for the year to September nearly doubled to £211m as revenues rose 4.2pc to £2.6bn.
07:14 AM GMT
Just Eat to quit London Stock Exchange
Just Eat Takeaway, the food delivery giant, will delist its shares from London in the latest blow to the UK’s stock markets.
The company said today that it plans to cancel its secondary listing in London. It will keep its shares traded on Amsterdam’s Euronext exchange, where it has a primary listing.
Two years ago the company had appeared to give the London Stock Exchange a vote of confidence when it said it would keep its UK-listed shares and drop its American listing after a merger with US-based Grubhub.
But it said that after a further review of listing venues, it had chosen to leave the LSE, blaming the compliance burden and cost of maintaining the listing.
“Following this review, the company hereby gives notice that, in order to reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements of maintaining the LSE listing, and in the context of low liquidity and trading volumes of the Shares on the LSE, it has requested that the FCA cancel the listing of the shares,” Just Eat said.
It said shareholders were “urged to consult their own investment advisers and brokers” on converting their holdings into Amsterdam-listed shares.
Just Eat’s £1.5bn London flotation in 2014 was seen as a major victory, being the biggest tech float in eight years. But the company’s subsequent mergers with Dutch company Takeaway.com and then Grubhub left it juggling multiple listings.
When Just Eat merged with Takeaway in 2020, it had intended to scrap its Amsterdam listing in favour of London, but later reversed course, and the company’s secondary listing in London meant it was removed from the FTSE 100.
The company’s primary headquarters are now in Amsterdam.
07:08 AM GMT
Taxes paid by Britain’s biggest companies jumped even before Reeves’s raid
The taxes paid by Britain’s biggest companies jumped by 10.2pc even before Rachel Reeves’ raid on business in her record £40bn tax-raising Budget, PwC has found.
The 100 largest firms paid £31.8bn in direct taxes in the financial year 2023-24, a rise of £2.7bn from the previous 12 months.
The rise largely reflects a jump in corporation tax from 19pc to 25pc under the previous government, the Big Four consultant noted in a report.
Overall, these companies generated a record £93.3bn in taxes when factoring in levies they collected for the government such as pay-as-you-earn (PAYE) and VAT.
The figures underline the burden on businesses, as the Chancellor seeks to increase it further by hitting employers with a £25bn rise in National Insurance contributions (Nics).
It comes as Ms Reeves is fighting to fend off a growing backlash from furious bosses accusing the Chancellor of “milking” corporate Britain.
Andy Agg, who chairs the 100 Group tax committee which represents finance directors of FTSE 100 and other large UK private companies, said: “The 20 years of the survey shows that the contribution from large companies has been sustained, despite significant economic events over this period.
“The 10pc increase in taxes borne in this year’s report is the result of new taxes and the higher rate of Corporation Tax that were introduced in the aftermath of the pandemic and the global energy crisis.”
06:54 AM GMT
Good morning
Thanks for joining us. We begin with a report showing the tax burden on Britain’s largest companies had already grown by a tenth before Rachel Reeves announced her £40bn tax-raising Budget.
Figures from PwC show that the UK’s 100 biggest businesses paid £31.8bn in direct taxes in the financial year 2023-24, up 10.2pc on the previous year.
5 things to start your day
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John Lewis ‘worried’ about looming minimum wage rise | Inflated labour costs are weighing on the department store chain, warns retailer
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Give us legal power to block employers’ decisions, says union chief Mick Lynch | If companies break the law, workers’ representatives must be allowed to intervene, RMT general secretary tells MPs
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Terror police block ‘October 7’ video game | Online marketplace ordered to remove game featuring terrorists with Hamas-style headbands
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The charts that show another Reeves tax raid is on the horizon | The Chancellor’s decision to spend, spend, spend means October’s ‘painful’ Budget may not be the last
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Ambrose Evans-Pritchard: France is playing with fire: an IMF bailout is no longer unthinkable | The collapse of the European project’s twin-anchor threatens dramatic consequences for the Continent
What happened overnight
Shares were mixed in Asia after U.S. stocks rose to records despite Donald Trump’s latest talk about tariffs, which caused only ripples on Wall Street.
Tokyo’s Nikkei index fell nearly 1pc, to 38,081.10 as the Japanese yen surged in value against the US dollar.
The dollar fell to 152.31 yen from 153.08 yen. It had traded above 155 yen recently, but uncertainty over the future course of US trade policy has led investors to buy yen as a safe haven, analysts said.
South Korea’s Kospi dropped 0.6pc to 2,505.49 as Samsung Electronics lost 3.3pc after the company announced a shift in its top management.
The company said the reshuffle, which included appointing Young Hyun Jun, a Samsung vice chairman who heads its Device Solutions division, to be chief executive was intended to strengthen Samsung’s competitiveness, focusing on computer chips.
Chinese markets advanced, with Hong Kong’s Hang Seng gaining 0.5pc to 19,259.77, while the Shanghai Composite index added 0.7pc to 3,283.55. A 10% drop in industrial profits
Australia’s S&P/ASX gained 0.5pc, to 8,400.10, while India’s Sensex edged 0.1pc lower. Taiwan’s Taiex sank 1.4pc and the SET in Bangkok shed 0.6pc.
Weakness in Asian equities contrasts with gains for all three of the major Wall Street bourses overnight.
The Dow Jones Industrial Average rose 0.3pc, to 44,860.31; the S&P 500 rose 0.6pc, to 6,021.63; and the Nasdaq Composite rose 0.6pc, to 19,174.30.
In the bond market, the yield on benchmark 10-year US Treasury notes rose to 4.293pc, from 4.263pc late on Monday.