6:38 am, November 1, 2024
Chancellor seeks to calm markets amid jitters after Budget borrowing spree
Chancellor Rachel Reeves is seeking to calm the markets and provide reassurance of the UK’s stability after her Budget borrowing spree sparked jitters.
The Budget increased state spending by almost £70bn per year – a little over 2% of gross domestic product (GDP) – funded by increased taxes and borrowing. The scale of extra borrowing – around £32bn a year on average – saw yields on government bonds increase as the market responded to the Chancellor’s plans.
The International Monetary Fund (IMF) endorsed the investment but the verdict of the IMF appeared not to reassure financial markets. The yield – or interest rate – on a 10-year gilt, an indicator for the cost of state borrowing, hit 4.568% on Thursday afternoon, the highest point since August 2023, while the pound also weakened against the dollar.
Shell calls for ‘certainty’ after Labour increases oil and gas windfall tax
Shell’s finance chief has called for ‘certainty’ on the government’s oil and gas policy, the day after Labour confirmed plans to raise a windfall tax on North Sea oil and gas firms.
Chancellor Rachel Reeves said she will increase the tax, known as the energy profits levy, to 38% from 35% in the autumn Budget.
Shell’s Sinead Gorman said on Thursday: ‘Elected officials just have to balance budgets in the best way they see fit. We have to look for policies that provide certainty… We invest over the long term.’
Hyundai’s Initium concept previews hydrogen still holds a place in the future
Hyundai has revealed its latest concept car, the Initium, which could become the next Nexo hydrogen SUV.
It uses Hyundai’s new ‘Art of Steel’ design language can do up to 403 miles between fill-ups, and that the electric motor produces 201bhp.
It’s unclear at this stage whether Hyundai will bring the production version of the Initium to the UK, however with the country’s limited hydrogen infrastructure and very low Nexo sales, it seems unlikely.
The markets
Top global markets tumbled into the red on Thursday while the pound also weakened, as Wednesday’s autumn Budget statement continued to spark a sell-off in the UK gilts market. London’s FTSE 100 was down 49.53 points, or 0.61%, to close at 8,110.1.
In Paris, the Cac 40 dropped 1.05% and in Frankfurt, the Dax was down 0.93% at close. The S&P 500 was down 1.4%, and Dow Jones was 0.5% lower by the time European markets closed.
The pound also weakened on Thursday, and was down about 0.75% to 1.286 US dollars, a more than two-month low.
Angela Rayner declares £3,550 worth of clothes from Lord Alli
Angela Rayner has declared £3,550 worth of clothes donated by Lord Alli earlier this year.
The deputy prime minister updated her entry in the register of interests to reflect that the donation received in June was for ‘work clothes for use while undertaking duties’. She originally described it as a ‘donation in kind for undertaking parliamentary duties’ from Lord Alli.
Rayner, Sir Keir Starmer and chancellor Rachel Reeves stopped accepting donations to pay for clothes in September after the prime minister and his top team received criticism for accepting freebies. The prime minister has paid back £6,000 worth of gifts and hospitality he received since entering Number 10.
Search for bodies continues with 158 dead in Spain’s floods
Crews searched for bodies in stranded cars and sodden buildings as residents salvaged what they could from their ruined homes following monstrous flash floods in Spain that claimed at least 158 lives, with 155 deaths confirmed in the eastern Valencia region alone.
More horrors emerged on Thursday from the debris and ubiquitous layers of mud left by the walls of water that produced Spain’s deadliest natural disaster in living memory.
An unknown number of people are still missing and more victims could be found.
Thursday on Car Dealer
Car finance slowly starting up again as lenders change systems and some freeze commission payments
The car finance industry is scrambling to adjust systems after a Court of Appeal ruling against undisclosed commissions. Many providers paused services, disrupting dealer operations. Some lenders resumed with compliance changes, while uncertainty and legal concerns continue across the sector.
Has the government quietly reinstated the 2030 petrol and diesel car ban?
It would appear the UK government has confirmed a 2030 ban on new pure petrol and diesel cars, allowing hybrids until 2035. The Budget supports EV transition with funding for chargers, incentives, and accessible EVs, but industry calls for hybrid standards clarification persist.
Jaguar Land Rover sees surge in customer demand for plug-in hybrid models
Jaguar Land Rover (JLR) saw a 29% rise in global plug-in hybrid sales, led by Range Rover’s 47% growth. With significant investment in EV facilities, JLR aims for carbon neutrality by 2039, expanding its electric lineup by 2030.
McLaren Automotive set to be sold to Abu Dhabi-owned investor CYVN Holdings
CYVN Holdings, owned by Abu Dhabi’s government, plans a full takeover of McLaren’s automotive division, alongside a partial stake in McLaren Group. The partnership aims to advance McLaren’s growth, especially in EVs, leveraging CYVN’s expertise and cross-industry synergies.
Volkswagen tables 10% pay cut for workers as profits fall by 42% in third quarter
Volkswagen faces financial strain after a 42% profit drop and low third-quarter earnings. To regain competitiveness amid weak China sales, VW proposes a 10% pay cut for workers, though unions resist, warning of strikes if factory closures aren’t ruled out.
Weather outlook
A dry and cloudy day for most, although Scotland will see rain sink from northern areas to the south during the day, reports BBC Weather. Slightly colder but still mild at 14 degrees.
Rain possible for northern England, Scotland and the south-east of England, tonight. An area of high pressure will push in for the weekend, bringing dry weather.
