6:35 am, August 28, 2024
Retailer sales drop for third month in a row, says CBI
Retail sales fell for the third consecutive month in August although the rate of the downturn eased back, according to the latest data.
The Confederation of British Industry’s (CBI) latest Distributive Trades Survey pointed to continued weakness in the retail sector. The survey question deducts the number of firms saying they reported a decline in sales from the number reporting growth for the period.
On Tuesday, the latest report’s headline retail sales balance hit -27% for the month, as significantly more retailers witnessed a dip in sales. However, it represented an improvement, following a balance of -43% in July.
‘Painful’ Budget is needed for ‘long-term good’, says PM
Sir Keir Starmer warned that the government’s forthcoming Budget will be ‘painful’ as he asked the country to ‘accept short-term pain for long-term good’.
In a speech in the Downing Street rose garden, the prime minister claimed his government has done more in seven weeks than the Conservative government did in seven years.
But he warned ‘things are worse than we ever imagined’ because of a £22bn ‘black hole’ in the public finances, claiming to have found out last week that the Tories had borrowed almost £5bn more than the Office for Budget Responsibility expected. He said: ‘There is a Budget coming in October, and it’s going to be painful. We have no other choice, given the situation that we’re in.’
VW ID. 3 GTX Performance goes on sale this week
The Volkswagen ID. 3 GTX Performance officially goes on sale this week, offering 322bhp and the promise of hot hatch thrills without the tailpipe emissions.
Billed as a pure-electric alternative to the Golf GTI Clubsport, often deemed the pinnacle of VW’s hot hatch prowess, the ID. 3 GTX Performance is capable of accelerating from 0-62mph in just 5.7 seconds, making it the German marque’s fastest accelerating EV to date.
Volkswagen says the ID. 3 GTX Performance offers a top speed of 124mph (somewhat down on the Golf GTI Clubsport) and 369 miles of range. It’ll be available to order at VW dealers from tomorrow, August 29, priced at £46,225.
The markets
Burberry and easyJet are set to be relegated from the FTSE 100 next month, reports Sky News. A stock market stalwart for 15 years, Burberry’s market value has plunged by more than 70% since April 2023.
EasyJet’s ranking, meanwhile, has long been volatile; a determination of both businesses will been made at the close of business next Tuesday (Sept 3).
The FTSE 100 closed at 8,345.46, plus 17.68 points or 0.21%. France’s Cac 40 was down 24.59 points/0.32% to 7,565.78 while the Dax closed 0.35%/64.79 up at 18,681.81. The S&P 500 rose by 0.16% to 5,625.80, while the Dow Jones rose 9.98 points/0.02% to 41,250.50.
PM to hail ‘once-in-a-generation opportunity’ to reset relationship with Europe
Sir Keir Starmer says the UK has a ‘once-in-a-generation opportunity to reset our relationship with Europe’ as he heads for two days of meetings in Berlin and Paris.
The prime minister is expected to say on the trip that ‘we must turn a corner on Brexit’ and will meet German chancellor Olaf Scholz in Berlin to launch negotiations on a new treaty aiming to boost business and increase joint action on illegal migration.
After Germany, Sir Keir is then expected to travel to Paris for the Paralympics opening ceremony on Wednesday evening, before a breakfast meeting with French business leaders on Thursday morning, and a summit with president Emmanuel Macron at the Elysee Palace.
‘100 spaces left in men’s prisons in England and Wales’
There are 100 spaces left in men’s prisons in England and Wales, it is understood.
The system, already in the middle of an overcrowding crisis, is normally under greater pressure after a bank holiday weekend, which eases once courts reopen.
On Friday magistrates were told to delay jailing criminals as the number of people in prison hit a new weekly high. The prison population then stood at 88,234, the highest end of week number since weekly data was first published in 2011.
Tuesday on Car Dealer
Video: Used car prices slipped by ‘just’ 0.6% in August as strong demand propped up values
Used car prices declined by just 0.6% in August, indicating market stability, with demand remaining strong. Cap HPI’s Derren Martin highlighted that while dealer demand is robust, supply constraints persist due to past low registrations. EVs under £20,000 are selling quickly, presenting a growth opportunity. September is expected to be stable, with minor market volatility likely towards year-end due to regulatory changes.
Ford of Britain’s TrustFord dealer group saw profits slide by over 42% in 2023
TrustFord’s pre-tax profit fell by 42.7% to £15.1m in 2023 despite leading UK vehicle sales. Revenues increased by 9% to £1.88bn, with vehicle and parts sales rising significantly. The company invested heavily in new dealerships, expanding its presence in Scotland.
Demand for new cars ramping up ahead of plate change in September – Auto Trader
Auto Trader reports a nearly 7% rise in new car platform visits this month, ahead of September’s key plate-change period. New car listings have surged 23% since January, driven by improved affordability and selection. MG leads in electric vehicle inquiries, outperforming Hyundai and Honda.
Used car dealer ordered to pay more than £1,000 after refusing to identify BMW driver
Swindon-based Greenacre Cars was fined £1,022 after pleading guilty to failing to identify a BMW driver suspected of a motoring offence. This follows a trend of similar cases where dealerships, including LR Trans Ltd and Vansco Ltd, faced fines for similar offences.
Opinion: No boo-hoos for Cazoo but failed online used car retailer has left some positives as its legacy
Columnist James Litton thinks disruptors like Cazoo, Tesco, and Virgin failed to reshape the used car market, as predicted. Cazoo’s transparency with service history and damage reports has improved consumer acceptance of car conditions, aiding independent dealers. However, Cazoo’s model, including fixed pricing and returns, didn’t resonate with mainstream buyers.
MotorTrust UK to open third used car supermarket with Lancaster chosen as location
MotorTrust UK is opening its third dealership in Lancaster on September 16, creating around 20 jobs. The 1.5-acre site will house 250 cars and a purpose-built showroom, expanding the family-owned business’s offerings. MotorTrust UK specialises in high-quality ex-Motability and fleet vehicles.
The weather
A band of showery rain will push into the north and west but weakening as it does so, reports BBC Weather. It’ll be very warm and dry in the east and south with plenty of sunny spells.
Rain will ease tonight leaving a clear night for all areas. It’ll be a dry night, too.
