6:45 am, February 6, 2025
Bank of England expected to resume interest rate cuts
The cost of borrowing is expected to fall to its lowest point in more than 18 months.
Senior economists at the Bank of England will announce later on Thursday whether they are cutting the UK’s base interest rate, which currently sits at 4.75%.
Most experts predict a quarter point reduction to 4.5%, continuing a series of cuts which started last summer.
Firms raising prices ahead of trade tariff hikes, report finds
Nearly one in four UK businesses are hiking prices in response to the threat of tariff hikes as fears grow over a global trade war kicked off by US president Donald Trump, according to a survey.
A poll of 1,500 businesses by banking giant HSBC found 39% are increasing prices in anticipation of higher tariffs.
It also revealed that half of firms are shifting their export markets to countries with lower trade barriers in an effort to side-step the worst of the hit from any trade war.
Volkswagen previews upcoming entry-level electric model
Volkswagen has teased a look at its upcoming compact electric vehicle due to be fully unveiled at the beginning of March.
Ahead of a production-ready model premiering in 2027, this early look showcases a compact car that will sit at the smaller end of the current Volkswagen range. In a social media clip, both the Lupo and Up! – two of Volkswagen’s previous most-compact models – are shown preceding the arrival of the brand-new car.
Volkswagen is targeting an entry price of €20,000 – around £16,650 – for the new model, which is predicted to only be offered with an electric powertrain, rather than with a petrol or hybrid alternative.
The markets
The FTSE 100 rose on Wednesday, clawing back some of the falls seen earlier in the week caused by US President Donald Trump announcing trade tariffs on some countries. It gained 53 points to finish the day at 8,623, or a 0.6% rise.
n Europe, France’s Cac 40 fell 0.2%, and in Frankfurt the Dax was up 0.2%. On Wall Street, the S&P 500 was 0.2% in the green and the Dow Jones had climbed 0.3%.
The pound had gained against the dollar, up 0.3% to 1.252 after markets closed. It was 0.1% down against the euro at 1.201.
Grenfell United claim bereaved ignored on decision to demolish tower
Bereaved families have been told Grenfell Tower is to be demolished but concerns have been raised over how many loved ones were spoken to before the decision was taken.
Deputy prime minister Angela Rayner, who is also housing secretary, met with relatives and survivors on Wednesday evening.
But Grenfell United, which represents some of the bereaved and survivors of the June 2017 fire, claimed the voices of many loved ones had been ignored.
Netanyahu praises Trump’s ‘remarkable idea’ for Gaza
Israeli prime minister Benjamin Netanyahu has called US president Donald Trump’s plan to relocate Palestinians from Gaza a ‘remarkable idea’ even as officials walked back the idea that the US take ownership of the territory.
Trump on Tuesday called for ‘permanently’ resettling Palestinians from war-torn Gaza and left open the door to deploying American troops there as part of a massive rebuilding operation.
But secretary of state Marco Rubio and White House press secretary Karoline Leavitt said he only sought to move the roughly 1.8 million Gazans temporarily to allow for reconstruction. Even that proposal has drawn criticism from Palestinians, who are worried they may never be allowed back in if they flee, and from the Arab nations that Trump has called on to take them in.
Wednesday on Car Dealer
New car registrations slump for fourth month in a row but EVs continue to boom
Electric cars took 21.3% of January’s market as total new car registrations fell 2.5%. EV sales surged 41.6%, while petrol and diesel declined. The SMMT urged policy changes to boost EV adoption, warning current incentives and taxes may hinder progress.
Record demand in January but dealers are still underpricing top used cars – Auto Trader
Auto Trader saw record traffic in January, with used cars selling faster than ever. Dealers underpriced 61,000 high-demand cars, losing £24m in potential profit. Prices remained stable, and 2025 sales are projected to rise, despite economic uncertainty and market challenges.
Honda and Nissan merger talks could collapse following ‘aggressive’ proposals
Nissan-Honda merger talks stalled as Honda proposed making Nissan a subsidiary. Reports suggest differing agendas and aggressive negotiations caused delays. Both firms deny talks are ending, while Renault urged Nissan to seek a higher price for its stake amid discussions.
Manor Park Classics begins expansion with acquisition of Barons Classic Car Auctioneers
Manor Park Classics is expanding across the UK after acquiring Barons Classic Car Auctioneers. The deal strengthens its southern presence, with no staff changes planned. MPC aims to open multiple auction houses nationwide, enhancing services and accessibility for classic car buyers and sellers.
‘Has anyone seen Grandma?’: The oddest things left inside vehicles at WeBuyAnyCar sites in 2024
WeBuyAnyCar found 104,000 forgotten items in vehicles last year, including a microwave, divorce papers, and even a grandmother. Phone accessories were most commonly left behind. The company advises sellers to double-check their cars before handing them over to avoid surprises.
Car dealer Glyn Hopkin appoints Paul Stapylton as new group operations director
Glyn Hopkin appointed Paul Stapylton as group operations director, bringing experience from Marshall Motor Group. His leadership in operations and customer service impressed directors. Stapylton aims to drive growth and innovation, working closely with COO Tim Murphy to enhance customer experience.
Weather
Today will be dry and sunny after morning mist and fog clear, with breezy conditions in north-west Scotland, reports BBC Weather. After a frosty start, temperatures will recover to around nine degrees.
Tonight remains dry with clear spells, though light showers may affect the Channel Islands. Mist and fog will develop in northern areas overnight.
