In This Article:
A Bank of England rate-setter has warned that Donald Trump’s trade war could hit growth and push up consumer prices in the UK.
Catherine Mann, who sits on the Monetary Policy Committee deciding interest rates, said the splintering of the world economy would “likely put upward pressure on costs and prices”.
Her remarks at the Annual Conference of the Society of Professional Economists in London come as Mr Trump is poised to re-enter the White House in January on a mandate of cutting taxes by aggressively raising tariffs.
Ms Mann said that even uncertainty more broadly about trade policy risked having “damaging economic effects and increase volatility”.
She said: “The latest political developments across the Atlantic have not made a disorderly trade scenario less likely, which would have consequences for output and inflation in the UK.”
The rate-setter is known as the hawk-in-chief on the Bank of England’s nine-person panel setting interest rates, preferring higher borrowing costs when faced with uncertainty.
Ms Mann said that factors like protectionism, climate change and higher government spending could trigger more unstable inflation in coming years.
This will lead to higher interest rates in the long-term, she believes.
Read the latest updates below.
06:30 PM GMT
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06:25 PM GMT
UK must keep EU close, says Bank of England chief
Britain must rebuild trade ties with Europe to help stem the economy’s long-term decline, the Bank of England Governor has told Rachel Reeves. Szu Ping Chan and Eir Nolsøe report:
Andrew Bailey will urge the Chancellor to “welcome opportunities to rebuild” post-Brexit relations with the Continent as Ms Reeves orders regulators to focus on growth as part of plans to fire up the City.
05:52 PM GMT
Bitcoin drops after US election boost
The value of the cryptocurrency Bitcoin dipped today by 1.4pc, to $89,249, after climbing strong on hopes of favourable policies under Donald Trump.
Earlier in the week it exceeded $93,000 for the first time. Bitcoin is still up 40pc over the past month.
05:35 PM GMT
Trump’s transition team aims to kill Biden’s tax credit for electric cars
President-elect Donald Trump’s transition team is discussing killing a $7,500 (£5,900) consumer tax credit for electric vehicle purchases as part of broader tax-reform legislation, according to sources who spoke with Reuters.
Ending the tax credit could have grave implications for an already stalling transition to electric cars in the US.
Earlier this year, Elon Musk, one of Trump’s biggest backers and the world’s richest person, said: “It would be devastating for our competitors, and it would hurt Tesla slightly but long term probably actually helps Tesla would be my guess”.
Separately, on X, he wrote: “Take away the subsidies. It will only help Tesla.”
Repealing the subsidy, which has been a signature measure of Joe Biden’s Inflation Reduction Act (IRA), is being discussed in meetings by an energy-policy transition team, the sources said.
Donald Trump repeatedly pledged to end Mr Biden’s “EV mandate” on the campaign trail.
05:26 PM GMT
One of Britain’s oldest tea companies lines up administrators
Typhoo Tea, one of Britain’s oldest tea companies, is close to falling into administration after years of setbacks including a costly break-in at its Wirral factory.
Typhoo has filed a notice to appoint administrators, according to court filings on Thursday. The step can be used by companies to give them some breathing space from creditors to try to pay back their debts.
It is understood Typhoo is using the process to explore rescue options, with administrators from EY lined up. The court notice does not mean that Typhoo is in administration.
Typhoo, which was founded in 1903 by Birmingham grocer John Sumner, was once one of the UK’s best-selling tea brands.
However, sales have struggled in recent years. Revenues fell from £34m in 2022 to £25m last year, while losses ballooned to £38m from £9.7m a year earlier, according to publicly available accounts.
The steep jump in losses came after the company suffered a break-in at its mothballed factory in Merseyside, which involved “extensive damage” to machinery and tea stock. This delayed the sale of the factory, which was then completed in June 2024.
05:17 PM GMT
European stocks jump as energy and tech lead the charge
Europe’s Stoxx 600 bounced back with a 1.1pc gain, driven by strong performances in the energy and technology sectors, while positive earnings reports added to the upbeat mood.
The pan-European index was, none the less, pinned near a three-month low, after falling in the previous two sessions.
ASML gained 6.9pc after Europe’s largest tech firm said it expects sales to grow by 8pc-14pc over the coming five years, boosting the tech sub-sector 3.1pc.
Telecoms was among the top five major gainers in the sub-sectors, adding 1.8pc, while heavyweight energy stocks advanced 1.7pc.
Deutsche Telekom advanced 3.3pc after Europe’s largest telecoms group by market capitalisation raised its full-year core profit forecast and marginally beat third-quarter core profit expectations.
05:14 PM GMT
Reeves’s tax raid could spell end of the barman, says pub boss
Rachel Reeves’s £25bn tax raid on businesses could mean last orders for bartenders, industry chiefs have suggested, as higher costs prompt pubs to rely more on apps.
Simon Dodd, the chief executive of pub group Young’s, said he planned to increase the use of app and tablet-based ordering to save money after large increases in employers’ National Insurance (NI) contributions and National Living Wage in the Budget.
Mr Dodd said: “We have our app, which we have over a million customers on. How can we make that more efficient? How can we make order at the table more efficient? How can we use [devices] like tablets?”
The pub chief stressed that Young’s was not looking at job cuts but wanted to drive “efficiencies” through technology. His comments suggest pubs could keep the same number of staff but focus them on delivering food and drink to tables rather than handling orders at the bar.
Such a system may enable them to get through a higher volume of orders, helping to increase revenues while keeping costs stable.
Mr Dodd is the latest pub chief to raise the prospect of fewer bartenders as a result of the Budget. The British Institute of Innkeeping (BII), which represents the pub sector, has said that three quarters of its members plan to cut staff hours, meaning fewer people would be working at any given time.
05:06 PM GMT
World stocks drop despite upward push in Europe
A gauge of global stocks is lower for a third day in a row today, despite a strong push upwards from European stock markets.
The MSCI World index dropped 0.1pc during trading, but the major European indexes were all up. Losses, however, were seen in Tokyo, Shanghai and Hong Kong.
On Wall Street, US stocks were little changed after the data as investors looked towards comments from Federal Reserve chairman Jerome Powell later today.
04:57 PM GMT
FTSE closes up
The FTSE 100 closed up 0.5pc.
The top riser was B&M, which gained 5pc. The budget retailer had reported higher sales this morning as it said its food and homeware was appealing to shoppers at a time when budgets remain under pressure and taxes are rising.
Engineering group Spirax was close behind, adding 4.7pc.
At the other end of the index, medical technology business ConvaTec fell 3.5pc and Experian lost 2.9pc.
Meanwhile, the mid-cap FTSE 250 rose 0.8pc.
Burberry was the biggest riser, adding 18.7pc, followed by City firm Close Brothers, up 14pc.
Construction-related group Kellar was the biggest faller, down 9.8pc, followed by defence technology company Qinetic, which lost 9.2pc.
04:45 PM GMT
Wall Street drifts near its records as its momentum slows
US stocks are drifting this afternoon as the market’s big burst following Donald Trump’s election continues to cool.
The S&P 500 was 0.1pc lower but still near its all-time high set on Monday. The Dow Jones Industrial Average was practically flat, and the Nasdaq Composite was down 0.1pc.
Disney helped lead the market with a jump of as much as 11.8pc in trading after the entertainment giant reported stronger profit for the latest quarter than analysts expected.
Robert Iger, its chief executive, credited improved profits at its streaming businesses and strong box-office results for its movies, including Inside Out 2 and Deadpool & Wolverine, among other things.
04:20 PM GMT
Apple AirPods stifle growth in headphone market, says WH Smith boss
Apple’s AirPods have killed off newness in the headphone market, the boss of WH Smith has said, as it plans to switch in more power banks and charging cables into its airport stores.
Carl Cowling, the chief executive of WH Smith, said: “Everybody has AirPods now. That has become the headphone market in many ways and has stifled growth elsewhere.”
WH Smith said this meant there was less innovation coming through from makers of headphones, prompting a rethink of what it stocks in its airline stores.
The retailer has 256 stores in airports, including its magazine and book stores, and 124 InMotion stores, which sell technology products.
WH Smith said it will now be tripling the space set aside in the InMotion stores for its own range of “tech accessors” such as battery packs, cables and chargers.
Mr Cowling said: “If you’re in an InMotion store in an airport today, we’ve probably got about three metres of that product. If you go in this time next year, you’ll see 10 metres.”
Mr Cowling said the company would be bringing a “designer edge” to these accessories.
It follows years where Apple has moved ahead in the headphone market. According to Kantar figures, around 27pc of people who have wireless headphones use Apple products, compared to 6pc who use Beats and 6pc who use Bose.
04:01 PM GMT
‘Dip buyers’ help push European stocks higher
European stocks are rising today in what has been a difficult week.
The pan-European Stoxx 600 has jumped 1pc, while the FTSE 100 is up 0.5pc. France’s Cac 40 is up 1.2pc and Germany’s Dax has risen 1.3pc.
“Dip buyers” have gone shopping in European stocks, according to Chris Beauchamp, chief market analyst at IG:
European indices finally got a bit of a break today, as dip buyers came in and prompted substantial gains in these beaten-down markets. Key levels were defended and the broad-based buying augurs well for a near-term recovery.
03:57 PM GMT
US stocks flat as inflation concerns linger
Wall Street indexes are sliding around close to flat this afternoon, with investors digesting inflation data which added to concerns that price increases might remain sticky.
Patrick O’Hare of Briefing.com said:
The economic data released this morning is causing a bit of a stir and a little bit of pause because it’s demonstrating that inflation at the producer level is sticky itself.
The producer price index climbed 0.2pc last month according to Labor Department data, accelerating from September.
From a year ago, wholesale prices rose 2.4pc, up as well from September’s figure.
This could give the Federal Reserve some pause as it tries to balance its fight against inflation with a healthy jobs market.
“The higher interest rates, I think, are kind of acting as a headwind of sorts for the equity market right now,” Mr O’Hare added.
03:50 PM GMT
Ford hit with penalty over slow car recalls
Ford will pay a penalty of up to $165m (£130m) to the US government for moving too slowly on a recall and failing to give accurate recall information.
The US National Highway Traffic Safety Administration (NHTSA) said that the civil penalty is the second-largest in its 54-year history.
The agency says Ford was too slow to recall vehicles with faulty rear view cameras, and it failed to give the agency complete information, as required by law.
Under the order, an independent third party will oversee the automaker’s recall performance obligations for at least three years.
The carmaker told The Telegraph: “We appreciate the opportunity to resolve this matter with NHTSA and remain committed to continuously improving safety and compliance at Ford.
“Wide-ranging enhancements are already underway with more to come, including advanced data analytics, a new in-house testing facility, among other capabilities.”
03:44 PM GMT
Trump’s trade war could hit Britain, warns Bank of England ratesetter
A Bank of England rate-setter has warned that Donald Trump’s trade war could hit growth and push up consumer prices in the UK.
Catherine Mann, who sits on the Monetary Policy Committee deciding interest rates, said the splintering of the world economy would “likely put upward pressure on costs and prices”.
Her remarks at the Annual Conference of the Society of Professional Economists in London come as Mr Trump is poised to re-enter the White House in January on a mandate of cutting taxes by aggressively raising tariffs.
Ms Mann said that even uncertainty more broadly about trade policy risked having “damaging economic effects and increase volatility”.
She said: “The latest political developments across the Atlantic have not made a disorderly trade scenario less likely, which would have consequences for output and inflation in the UK.”
The rate-setter is known as the hawk-in-chief on the Bank of England’s nine-person panel setting interest rates, preferring higher borrowing costs when faced with uncertainty.
Ms Mann said that factors like protectionism, climate change and higher government spending could trigger more unstable inflation in coming years.
This will lead to higher interest rates in the long-term, she believes.
03:42 PM GMT
ECB policymakers divided on inflation risks, say minutes
European Central Bank policymakers were divided at their meeting last month about the risks of inflation coming in too low over a sustained period, according to minutes released today.
The ECB lowered rates in October after also cutting the previous month. These were its first back-to-back reductions in the current easing cycle, as eurozone growth worries increasingly outweigh inflation concerns.
Data released before the last meeting showed eurozone consumer prices rose by 1.7pc in September, the first time in three years the figure had dipped below the central bank’s two-percent target.
That fired debate about whether the ECB had waited too long to start cutting borrowing costs, and whether there was now a risk of inflation falling well below target for a long time.
At the October meeting, while policymakers agreed inflation would settle at around two percent earlier than previous forecasts for the end of 2025, some argued that “a large, persistent undershooting” of the target was unlikely.
Factors needed to cause it were not present, such as “disappointing economic growth that moved into recessionary territory, a weakening in the financial system, wage pressures fading away”, according to the account of the gathering.
Others however worried that recent falls in inflation had been stronger than expected and said there was “an increasing risk of undershooting the target in the course of 2025, possibly in a sustained manner”.
“This could now be seen as a greater risk than overshooting the target,” they believed.
Since the ECB’s last meeting however, data have been released showing that eurozone inflation rose to two percent in October, more strongly than expected.
ING economist Carsten Brzeski said the minutes showed concerns about the weak eurozone economy were now clearly overtaking those about inflation.
03:38 PM GMT
UK stocks rise amid signs of strong American economy
The FTSE 100 has turned higher after data showing the US economy is fairing well in the face of high interest rates.
The UK’s blue chip index was up 0.5pc while the midcap FTSE 250 was up 0.6pc as American unemployment claims fell to a six month low.
Meanwhile, a rise in US wholesale inflation was only slighly higher than expected.
With that I will hand you over to Alex Singleton, who will keep you updated on the markets from here.
03:21 PM GMT
The Onion buys conspiracy theorist Alex Jones’s Infowars
The parody website The Onion has bought conspiracy theorist Alex Jones’ Infowars brand and website in a bankruptcy auction, court documents show.
Jones filed for bankruptcy protection in 2022 after courts ordered him to pay $1.5bn for defaming the families of 20 students and six staff members killed in the mass shooting at Sandy Hook Elementary School in Newtown, Connecticut.
Unable to pay those legal judgments, Jones was forced to auction his assets, including Infowars, in bankruptcy.
“They’re shutting us down,” Jones said in a post on X, the social media site formerly known as Twitter. “I’m going to be here until they come in here and turn the lights off.”
The Connecticut families of eight victims of the Sandy Hook school shooting backed the Onion’s bid, saying it would put “an end to the misinformation machine” that Jones operated.
The Onion will acquire Infowars’ intellectual property, including its website, customer lists and inventory, certain social media accounts and Jones’ Infowars’ production equipment, the families said.
03:08 PM GMT
B&M billionaire Bobby Arora to step down next year
B&M billionaire Bobby Arora will step down from the value retailer next year, despite having agreed a £16m “golden handcuff” package to stay until 2026.
B&M said Mr Arora would retire next March from his role as trading director after almost 20 years.
Bobby, 52, was the last of the three Arora brothers to have an active role with the retail giant, which they had built from a struggling Northern chain in 2004 into a £3.9bn powerhouse.
It follows the exit of his brother Simon, who stepped down as chief executive of B&M in September last year. Simon had led B&M for 17 years.
Robin, the third brother, also had been involved with the discount retailer but no longer has an active role.
B&M boss Alex Russo said the decision for Mr Arora to step down came after the company “identified the right individual” to take up his role. Gareth Bilton, its UK store director, will be moving into the trading director post.
Mr Arora will be acting as an advisor for a “number of months” after his retirement, Mr Russo said.
However, he declined to give details of how much of the £16m bonus Mr Arora would receive by stepping down before 2026.
Mr Russo said: “When we make those decisions, that will be part of our accounts. I don’t think it’s appropriate for me to comment on anybody’s pay.”
According to the Sunday Times Rich List, Mr Arora and his family have a net worth of almost £2.7bn.
02:55 PM GMT
Meta hit with near €800m fine over classified ads business
The European Union has hit Facebook-owner Meta with a fine of nearly €800m (£665m) for what they call “abusive practices” involving its Marketplace business.
The European Commission issued the penalty after its long-running investigation found that the company abused its dominant position and engaged in anti-competitive behaviour in its online classified ads section.
The commission had accused Meta of distorting competition by tying Marketplace to its social network, automatically exposing Facebook users to the online classified ads section “whether they want it or not” and shutting out competitors.
It was also concerned that Meta was imposing unfair trading conditions with terms of service that authorised the company to use ad-related data to benefit Marketplace.
This data was generated from competing classified ad platforms who advertise on Facebook or Instagram.
Margrethe Vestager, the commission’s executive vice-president in charge of competition policy, said Meta’s practices gave it “advantages that other online classified ads service providers could not match”.
She said: “This is illegal under EU antitrust rules. Meta must now stop this behaviour.”
Meta said in a statement that the decision fails to prove any “competitive harm” to rivals or consumers and “ignores the realities of the thriving European market for online classified listing services”.
02:35 PM GMT
US stocks rise as unemployment claims hit six-month low
Wall Street rose at the opening bell after unemployment benefit claims in the US fell to the lowest level in six month.
The Dow Jones Industrial Average was up 0.2pc to 44,047.26 after Labor Department data showed jobless claim applications fell by 4,000 to 217,000 for the week of November 9, which was less than the 225,000 analysts forecast.
The benchmark S&P 500 gained 0.1pc to 5,989.64 while the tech heavy Nasdaq Composite rose 0.2pc to 19,272.93.
02:21 PM GMT
‘Governments seem to think that they can just raid this money’
Telegraph readers say they are reducing their pension contributions, as the Chancellor prepares to announce a series of reforms.
Here is a selection of what your fellow readers have been saying in the comments below ahead of Rachel Reeves’ Mansion House speech and you can join the debate here:
02:01 PM GMT
Trader makes £5.2m bet on jumbo interest rate cut amid Trump tariff fears
A trader has bet that the eurozone is on the cusp of a jumbo-sized interest rate cut next month as policymakers brace for potential tariffs under Donald Trump’s presidency.
The investor has placed a bet that will pay out €6.25m (£5.2m) if the European Central Bank (ECB) announces an interest rate cut of three-quarters of a percentage point in December, according to Bloomberg.
The wager would also pay out if policymakers announce a half a point cut next month followed by a quarter point cut in January.
Mr Trump has pledged to impose tariffs on foreign goods entering the US market, promising levies of up to 60pc on goods from China.
ECB policymaker Joachim Nagel warned tariffs on European goods risk derailing the German economy, which has already been plunged into turmoil by the snap election called by chancellor Olaf Scholz.
Money markets have already priced in a quarter-point reduction by the ECB for next month but since last week’s US election the chances of a larger half-point cut have lifted to 28pc.
By contrast, Britain’s economy is expected to be relatively unscathed by the threat of tariffs under the incoming Trump administration.
Paul Dales, chief UK economist at Capital Economics, said: “The UK is not as exposed to US import tariffs as many other economies and we suspect any resulting reduction in UK GDP would be very small.”
01:47 PM GMT
US unemployment claims fall to six-month low
The number of Americans applying for unemployment benefits fell to their lowest level in six months last week.
The Labor Department reported that jobless claim applications fell by 4,000 to 217,000 for the week of November 9, which was less than the 225,000 analysts forecast.
The four-week average of weekly claims, which evens out some of the weekly ups and downs, fell by 6,250 to 221,000.
Weekly applications for jobless benefits are considered representative of US layoffs in a given week.
Continuing claims, the total number of Americans collecting jobless benefits, fell to 1.87m for the week of November 2, in line with analysts’ expectations.
01:33 PM GMT
US wholesale inflation rises more than expected
The rate of wholesale inflation in the US increased by more than expected ahead of the Donald Trump presidency, which is expected to increase pressure on prices.
The producer prices index (PPI) rose from 1.8pc in September to 2.4pc in October, which was higher than analysts had expected.
It comes after data on Wednesday showed consumer prices inflation rose from 2.4pc to 2.6pc last month.
01:17 PM GMT
Wall Street inches up ahead of Powell speech
US stock indexes edged higher as investors awaited a speech by Federal Reserve chairman Jerome Powell later.
Mr Powell will provide an update on his economic outlook to business leaders in Dallas, a day after inflation figures showed consumer prices rose at an annual pace of 2.6pc in October, as expected.
Meanwhile, the producer price index (PPI) reading for October and weekly jobless claims data are expected shortly.
Paul Donovan, chief economist at UBS Global Wealth Management, said: “These numbers (PPI) better reflect corporate pricing power than the consumer price data, the tone should be consistent with a December rate cut.”
Traders are broadly pricing in a 79pc chance of a quarter of a percentage point interest rate cut at the Fed’s December meeting.
Bets on a December cut increased after Wednesday’s consumer inflation data.
In premarket trading, the Dow Jones Industrial Average was up 0.2pc, the S&P 500 was up 0.1pc and the Nasdaq 100 was little changed.
12:56 PM GMT
Disney claws back profit with films like Deadpool & Wolverine
Disney has reported better-than-expected profit in its latest quarter thanks to a strong rebound for the media giant’s film studio.
The House of Mouse posted a net profit of $460m (£363m) in its fourth quarter, up from $264m (£208m) in the same period last year.
The figures, which beat Wall Street expectations, came as Disney shrugged off recent troubles to enjoy one of the best quarters in the history of its studio.
New releases Inside Out 2 and Marvel blockbuster Deadpool & Wolverine helped drive a $316m profit in its content sales and licensing division.
Shares surged 10pc in premarket trading as Disney’s streaming division also performed strongly, generating its second straight quarter of profits. There are now 123m subscribers to the Disney+ service, excluding its Hotstar platform in India.
The figures suggest Disney is starting to reap the benefits of a turnaround plan implemented by chief executive Bob Iger. He has slashed costs at the media giant and refocused its efforts on quality of output over quantity following a string of box office flops.
Mr Iger said: “This was a pivotal and successful year for The Walt Disney Company, and thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future.”
12:40 PM GMT
Restaurant berates customers for not ordering a starter
Feeling hungry? You better be if you are heading out to The Yellow Bittern in Islington, north London.
The chef of the restaurant has berated his customers for not ordering starters with their meals.
Hugh Corcoran, who is also the co-owner and founder of the venue, made the move after a lacklustre first week of trade.
Alex Barton reveals why he expressed his dissatisfaction with the appetite of diners.
12:03 PM GMT
Hopes of lower petrol prices as world faces looming oil glut
Motorists could face lower fuel prices next year amid an expected glut in oil supplies, the AA has said.
The world’s demand for oil will fall short of supply by more than one million barrels per day next year, the International Energy Agency has said.
Edmund King, AA president, told the Telegraph: “It is notoriously difficult to speculate on where oil prices might go in the next few months due to the considerable geo-political unrest; uncertainty about how Opec may react; and the US election.
“However, prices do generally reflect supply and demand and if the IEA predictions are correct, we could see pump price reductions in the new year due to a glut of oil.
“UK drivers and businesses were spared a fuel duty hike in the Budget so will be hoping for more good news in the new year with reduced prices at the pumps.”
11:57 AM GMT
Pound hits four-month low ahead of Reeves speech
The pound dropped to its lowest against the dollar since early July amid the US currency’s relentless rise following Donald Trump’s election victory.
Sterling was down as much as 0.6pc to $1.263, its lowest since July 2, amid expectations that the incoming US administration will enact inflationary policies, keeping interest rates higher.
Meanwhile, Rachel Reeves will deliver her first Mansion House speech to leaders of the City. Bank of England governor Andrew Bailey will also speak.
Ms Reeves said in advance that she wants Britain to build a slew of “megafunds” with up to £80bn in fresh investment firepower, under plans for the biggest shake-up in British pensions seen in decades.
11:23 AM GMT
Gold slump deepens in ‘Trump trade’
Gold prices have fallen to a two-month low as the value of the dollar surged in the wake of the election of Donald Trump.
Bullion slipped as much as 1.8pc to less than $2,540 an ounce, which is its lowest point since September amid expectations the President-elect’s policies will boost economic growth and corporate profits.
There are also concerns his tariff plans will be inflationary and force the US Federal Reserve to keep interest rates higher for longer.
A stronger dollar - a beneficiary of so-called “Trump trades” since the election result - makes commodities priced in the currency more expensive for most buyers.
The pound was last down 0.3pc against the dollar to $1.271.
10:59 AM GMT
Britain’s migration surge ‘bigger than all other rich nations’
Britain saw the biggest surge in migration of any rich country last year, according to the Organisation for Economic Co-operation and Development (OECD).
A total of 746,900 new “permanent-type” migrants moved to the UK last year, the OECD said, up from 488,400 in 2022.
The 52.9pc year on year rise in migration outpaced all other OECD members. Of the wealthy nations that make up the OECD club, only South Korea had an increase anywhere near the UK’s level. Migration there rose by 50.9pc to 87,100 last year.
Read on for details on the analysis which piles more pressure on Sir Keir Starmer to make good on his promise to get a grip on immigration.
10:42 AM GMT
Reeves tax raid to deliver £11m hit to Young’s
Young’s expects to take an £11m annual hit from a rise in employer taxes announced in the Budget.
Chief executive Simon Dodd said the impact of a rise in employer National Insurance contributions (Nics), combined with an increase to the minimum wage, would result in “significant increased costs for our industry in the near term”.
The pub chain’s boss said: “We will work to see how we can mitigate these headwinds without passing on all the cost to our loyal customers.
“We would like to see certainty and delivery of real business rate reform which will benefit all hospitality businesses”
Young’s joins fellow pub group JD Wetherspoon in criticising the measures, announced by Rachel Reeves, with the latter’s boss, Tim Martin, saying costs would jump “substantially” as a result.
It comes as Young’s reported higher half-year profit, helped by a bump in sales from the Euros football tournament over the summer.
Pre-tax profit for the half ending September 30 was £25.3m, up 3.3pc on the same period last year, while revenue rose 27.2pc to £250m.
10:21 AM GMT
‘Big isn’t always beautiful’ says ex-minister amid pension reforms
High-quality small pension schemes should not be “driven out” in Government reform plans, a former pensions minister has said.
Sir Steve Webb, who was a minister in David Cameron’s coalition government, said on BBC Radio 4’s Today programme that Ms Reeves’ plans to create “megafunds” will be an evolution in the current local government system.
“It is certainly true by international standards Britain’s pensions are pretty small and fragmented,” Sir Webb said, but added the Government should remember that “big isn’t always beautiful” when it comes to pensions.
Sir Steve said: “The worry is there are some very high-quality smaller pension schemes run by very good employers... which wouldn’t meet a size test.
“The Government has to remember that big isn’t always beautiful.
“What matters isn’t only size but quality, investment returns, quality of service and really high quality small schemes shouldn’t be driven out.”
10:16 AM GMT
Ben & Jerry’s claims it was silenced over Palestine
Ben & Jerry’s is suing its parent company Unilever in a row over support for Palestinian refugees.
The ice cream maker has accused Unilever of attempting to block Ben & Jerry’s from making public statements about the plight of refugees from the conflict in Gaza.
Ben & Jerry’s alleges that Unilever has breached the terms of a confidential settlement made in 2022. The lawsuit claims Unilever was required to “respect and acknowledge the Ben & Jerry’s independent board’s primary responsibility over Ben & Jerry’s social mission”.
It added: “Ben & Jerry’s has on four occasions attempted to publicly speak out in support of peace and human rights.
“Unilever has silenced each of these efforts.”
Read how Ben & Jerry’s is known for speaking out on various social, climate and human rights issues.
09:45 AM GMT
Mr Kipling maker’s profits sweetened by falling inflation
Mr Kipling maker Premier Foods has posted rises in revenue and profit rises, as easing inflation gives shoppers more confidence to indulge in treats.
Revenue grew by 4.6pc to £498.7m during the six months ending September, while profit was up by 5.5pc.
Chief executive Alex Whitehouse said sales from its brands, which includes Bisto, Loyd Grossman and Sharwood’s, were the “engine room” of its performance.
He said: “As inflation has begun to ease and shoppers are starting to feel more confident, we’ve seen consumers treat themselves more.”
He said the tax rises from the Budget were not “particularly significant” for the business, which employs more than 4,000 people, since it is “quite automated”.
Shares were down marginally by 0.1pc.
09:30 AM GMT
World oil demand to fall short of supplies next year, says IEA
World oil demand will grow at a slower pace next year amid waning demand from China, the International Energy Agency (IEA) has said.
The world’s demand for oil will fall short of supply by more than 1 million barrels per day (bpd) next year even if Opec+ cuts remain in place, the Paris-based agency said in its monthly oil market report.
The IEA left its 2025 oil demand growth forecast little-changed on the month, expecting oil demand to rise by 990,000 bpd next year.
The IEA saw China’s third-quarter consumption 270,000 bpd below the same period for 2023 after six-straight months of contractions up to September.
The IEA also made a slight upward adjustment to its 2024 oil demand growth forecast, up by 60,000 bpd on the month to 920,000 bpd, on higher-than-expected gasoil demand in OECD countries in the third quarter.
The price of Brent crude, the international benchmark, was last down 0.3pc to nearly $72 a barrel, having dropped 6.5pc so far this year.
09:11 AM GMT
Burberry shares surge as it announces £40m cost-cutting plan
Burberry shares surged after it announced a turnaround plan to kickstart the brand as it reported tumbling profits and a drop in sales.
The fashion house rose 14.2pc in early trading as its recently appointed chief executive Joshua Schulman announced a new strategic plan to reshape the brand.
It announced an operating loss of £53m in the first half of its financial the year, down from a profit of £223m in the same period in 2023, as the luxury fashion sector navigates weak demand, particularly in China.
Overall, stock markets in London were little changed in early trading after weak sessions on Wall Street and in Asia overnight.
The FTSE 100 was flat while the FTSE 250 was up less than 0.1pc.
Boohoo shares rose 0.6pc after it announced it has raised £39.3m from shareholders, who it urged to reject Mike Ashley’s attempts to take control of the fashion brand, claiming the Sports Direct billionaire could have “ulterior motives” in his approach.
WH Smith shares fell 6.3pc after its pre-tax profits came in below analyst estimates.
Aviva shares rose 3.7pc after it released a trading update on its third quarter performance.
08:40 AM GMT
Drivers aren’t ready to go electric, says Europcar chief
Drivers do not want electric cars because of fears over charging infrastructure, the British boss of a European car rental giant has warned.
Gary Smith, the UK managing director of Europcar, said leisure customers from airports do not want to drive electric vehicles.
He said the Government would need to “incentivise people to make that switch” but warned Britain’s charging infrastructure “is just not large enough to be able to cope” with a transition away from petrol and diesel emission cars.
When he was prime minister, Rishi Sunak delayed the ban on the sale of new petrol and diesel vehicles from 2030 to 2035 to give industry more time to catch up.
Mr Smith told BBC Radio 4’s Today programme: “We’re split between corporate activity and commercial and leisure activity and the leisure market is really not ready for electric vehicles.
“There are a lot of people who will come into the country from one of our airport locations and they won’t be familiar with the road and where they are travelling to.
“They certainly won’t be familiar with the charging infrastructure.
“That really does give us a challenge because our leisure customers are telling us that they don’t want to rent electric vehicles right now.
“The country isn’t quite ready.”
08:33 AM GMT
Airlines face fines from regulator after air traffic control chaos
Airline passengers will benefit from tougher enforcement of consumer protection laws following an inquiry into the August 2023 air traffic control (ATC) meltdown, Transport Secretary Louise Haigh has said.
The Cabinet minister said she wants to ensure “all passengers feel confident when they fly”.
More than 700,000 passengers suffered disruption when flights were grounded at UK airports on August 28 last year after ATC provider National Air Traffic Services (Nats) suffered a technical glitch while processing a flight plan.
An investigation into what happened found a number of travellers waited “many weeks, and in some cases months” for airlines to refund their out-of-pocket expenses.
It recommended that regulator the Civil Aviation Authority (CAA) is given the power to “take consumer enforcement action” without going through the courts.
This could include the ability to issue fines, which would bring it into line with regulators in some other sectors.
08:07 AM GMT
UK markets lack direction at open
The FTSE 100 edged lower as trading began after a lacklustre finish on Wall Street and weak performance in Asia overnight.
The UK’s blue-chip index fell 0.1pc to 8,022.27 while the midcap FTSE 250 was little changed at 20,356.81.
07:59 AM GMT
Pension reforms step in right direction, says boss
The Chancellor’s planned pension reforms are “a step in the right direction”, says a pension insurance boss.
Tracy Blackwell, chief executive of Pension Insurance Corporation, said Ms Reeves’ plans to create pension “megafunds” will benefit the taxpayer.
Ms Reeves is expected to use her first Mansion House speech this evening to announce plans to consolidate defined contribution (DC) schemes and pool assets from 86 local government pension scheme authorities in a new Pension Schemes Bill next year.
Ms Blackwell told BBC Radio 4’s Today programme: “We think it’s a really important step in the right direction. It really mirrors what has already happened in the defined benefit private sector world.
“We can use our economies of scale and expertise to invest in complex projects in the UK.
“It doesn’t solve all the issues but it is very much a step in the right direction.”
07:54 AM GMT
WH Smith travel shops drive profits higher
Retailer WH Smith has recorded a 16pc hike in annual profits as its travel arm continued to drive sales higher.
The group reported underlying pre-tax profits of £166m for the year to August 31, up from £143m the previous year.
Trading profits jumped by 15pc to £189m at its shops based in railway stations, airports and hospitals worldwide, with these outlets in the UK seeing earnings leap by a fifth.
Earnings remained flat at its traditional high street arm, at £32m, despite a 2pc drop in like-for-like sales.
Chief executive Carl Cowling said: “The group has delivered an excellent performance throughout the year, particularly over the key summer trading period.”
“While there is some economic uncertainty, we are confident that 2025 will be another year of good progress for the group.”
07:46 AM GMT
Global cryptocurrency worth more than $3 trillion
The value of the global cryptocurrency market has topped $3 trillion after the election of Donald Trump raised hopes that friendlier US regulation could usher in a new boom for the digital assets.
The sum market value of cryptocurrencies touched a high of nearly $3.2 trillion in the early hours of today, according to analytics and data aggregator CoinGecko.
That puts it above even the heady days of 2021, when pandemic-era stimulus pumped up speculative investments, and marks a stunning revival from just a few months ago when crypto prices and turnover had been flatlining and the outlook was humdrum.
Bitcoin dominates the market and the market value milestone coincided with the token’s rise to a record $93,480 .
Mr Trump’s election, and that of several pro-crypto candidates to Congress, has driven the wave of euphoria by apparently clearing some of the uncertainty around US regulations.
Bitcoin has doubled this year and is up 30pc since Election Day. Smaller cryptocurrency ether is up about 33pc since the election to $3,220.
Dogecoin, an alternative and volatile token promoted by billionaire Trump-ally Elon Musk, has gained 140pc.
07:39 AM GMT
Burberry announces £40m cost-cutting plan after swinging to loss
Burberry has announced plans to cut costs by £40m after swinging to a £53m loss in six months.
Joshua Schulman, who joined the fashion house in July as chief executive, said he wanted to focus on “productivity, simplification and financial discipline” in a bid to “stabilise the business”.
Burberry suspended its dividend for 2025 after it fell a loss in the six months to September after recording a £223m profit during the same period last year.
In its strategy update, Burberry signalled that its price increases had gone too far, saying prices, particularly in leather goods, “did not always align with our category authority”.
Mr Schulman said his turnaround plan would involve improving its website and in-store productivity, shaking up pricing and focusing more on the company’s core products.
He said: “Our recent underperformance has stemmed from several factors, including inconsistent brand execution and a lack of focus on our core outerwear category and our core customer segments.”
He added: “Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a return to sustainable, profitable growth.”
07:35 AM GMT
Gas prices surge to highest point this year after Russia supply warning
Gas prices surged to their highest level in a year after one of Europe’s key energy companies warned that supplies from Russia could be hit by a legal row.
Dutch front-month futures - the benchmark contract used in Europe - rose as much as 5.4pc after the intervention by Austrian energy group OMV.
Gas prices breached €46 per megawatt hour for the first time since November last year after the company received an award of €230m (£191m) from an arbitration council this week relating to Russian oil and gas supplier Gazprom.
It follows a legal row over “irregular” gas supplies to OMV from Gazprom in 2022.
OMV said it will immediately seek to recover the settlement by off-setting claims against invoices from the Kremlin-backed supplier.
It warned that this may hurt contractual relations with Gazprom and potentially lead to a halt of supplies.
Europe has become susceptible to swings in supply levels on the global gas market after pipeline supplies were largely switched off by Russia following Vladimir Putin’s decision to invade Ukraine.
07:31 AM GMT
Good morning
Thanks for joining me. We begin the day with a look at Europe’s energy market, where the cost of gas has hit the highest point this year.
Austrian energy group OMV has been awarded €230m (£191m) after a legal dispute with Russian supplier Gazprom.
It said its efforts to recover the amount quickly could impact supplies from the Kremlin-backed group.
5 things to start your day
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How Rachel Reeves wants to use your pension to fuel growth | Chancellor is weighing up plans that could unlock vast fiscal firepower from UK retirement funds
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British-made Typhoon jet production ‘essentially stopped’ as orders dry up | Union chief warns over ‘hammer blow’ to British aircraft industry as RAF eyes American-built jets
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Boohoo pleads with shareholders to reject Mike Ashley approach | Sports Direct founder could have ‘ulterior motives’, says fast fashion brand
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Mohsin Issa’s petrol forecourt empire pays off debt in scramble to improve finances | EG Group clears immediate debt obligations after selling string of convenience stores
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UK iPhone users seek £3bn from Apple over ‘rip-off’ charges | Tech giant accused of ‘trapping’ customers into paying excessive storage fees on iCloud
What happened overnight
Shares retreated in Asia after a lackluster finish on Wall Street following a report showing an uptick last month in inflation in the US.
The dollar was trading near 156 Japanese yen, up from 155.49 yen, reflecting expectations that the dollar will gain against other currencies under the policies anticipated with the incoming administration of President-elect Donald Trump.
Japan’s Nikkei 225 index fell 0.4pc to 38,535.70 and the Kospi in South Korea gave up 0.1pc to 2,415.23. Australia’s S&P/ASX 200 gained 0.4pc to 8,224.00.
Chinese markets tumbled, with the Hang Seng in Hong Kong falling 2pc to 19,435.95. The Shanghai Composite index lost 1.7pc to 3,379.84.
Bangkok’s SET lost 0.2pc and Taiwan’s Taiex fell 0.6pc, while the Sensex in India shed 0.2pc.
On Wall Street, the Dow Jones Industrial Average of 30 leading American companies rose 0.1pc, to 43,958.19, the S&P 500 was little changed at 5,985.38 and the Nasdaq Composite fell 0.3pc, to 19,230.74.
In the bond market, the yield on 10-year US Treasury notes rose to 4.468pc from 4.430pc late on Wednesday.