May 12: Interest rates rise; Rail strikes begin; MG Cyberster makes debut; Musk's mystery Twitter CEO

6:54 am, May 12, 2023

UK interest rates rise again amid food price ‘shock’

The Bank of England has warned inflation is likely to remain higher for longer than it previously thought, as borrowing costs were raised to the highest level since 2008.

Soaring food prices have cast some doubt over the Government’s promise to halve inflation by the end of the year.

The new forecast comes as the Bank raised the base interest rate to 4.5 per cent from 4.25 per cent, the 12th time in a row that rates have risen.

Rail passengers face fresh travel disruption due to strikes

Rail passengers face fresh travel disruption over the next few days because of strikes by train drivers and other workers in long-running disputes over pay.

Members of the drivers’ union Aslef will walk out today at more than a dozen train operators, crippling services across the country.

Further strikes will be held on May 31 and June 3 – the day of the FA Cup final at Wembley.

Rolls-Royce says trading on track as transformation plan ‘moves at pace’

Engineering giant Rolls-Royce has said its financial performance is ‘improving’ as it pushes forward with its transformation plan.

The aircraft engine manufacturer said trading has been in line with expectations over the four months to April as it continues to benefit from growth in its key markets.

The group cut thousands of jobs following the heavy impact of the pandemic and launched a transformation programme to reduce costs and create efficiencies in a bid to improve profits.

Elon Musk appoints mystery woman to take over running of Twitter

Elon Musk said on Thursday that he has found a new CEO for Twitter, or X Corp, as it is now called.

He did not name the person but said she will be starting in about six weeks.

Mr Musk, who bought Twitter last fall and has been running it since, has been insisting he is not the company’s permanent CEO.

Shares fall in London after interest rates rise

Fears over the Chinese economy weighed on London’s top index on Thursday as separately the Bank of England decided to hike interest rates once again.

By the end of the trading day in the City, the FTSE 100 had lost 10.75 points, a 0.1 per cent fall which took it down to 7.730.58.

In Germany the Dax index dropped 0.4 per cent on the day, while Paris’s Cac 40 rose 0.3 per cent

Thursday’s Car Dealer headlines you might have missed

New MG Cyberster sports car makes debut in London

MG’s new electric sports car, the Cyberster, has made its debut at a preview event in London.

The Cyberster will be the first all-new sports car to wear an MG badge since 1995 when the MGF made its debut.

Following a recent reveal at the Shanghai motor show, the Cyberster has now been shown in Europe for the first time at an event held at MG’s UK HQ in Marylebone, London.

State pension age could rise to 68 by ‘2040 or thereabouts’, says government

The Work and Pensions Secretary said the state pension age is not likely to be raised to 68 until the 2040s — but it is not a decision to be made by the current UK Government.

Mel Stride said there was “no reason why you need to take the decision now” on any change, having pledged to inform voters 10 years ahead of time.

A state pension age increase from 66 to 67 is set to occur between 2026 and 2028, a move which has been legislated for since 2014.

UK’s first driverless bus service launched over Forth Road Bridge

A driverless bus has taken passengers across the Forth Road Bridge, marking the launch of the UK’s first autonomous bus service.

Scotland’s transport minister Kevin Stewart was one of the first to strap in for the short journey as the Stagecoach vehicles were tested on the service between Ferry Toll near Inverkeithing, Fife, and Edinburgh Park.

The service will operate on a trial basis until 2025 and each bus will have two members of staff – a safety driver who can take control of the vehicle, and another ‘captain’ to sell tickets and provide customer service.

Weather outlook…

Today, spells of sunshine but also the chance of the odd shower for much of Scotland, Northern Ireland, Wales and western parts of England. Largely cloudy elsewhere, with some rain in the south-east, the BBC reports.

Tonight, Wales, the north-west and far south-west of England, much of Scotland, and Northern Ireland will be dry and mostly clear, but local mist or fog may develop. Cloudy but largely dry elsewhere.

Tomorrow will see low cloud, mist or fog gradually dissipate for most to leave a largely dry and sunny day, but low cloud may linger in a few spots. Chance of the odd shower in the south-west.