6:39 am, January 16, 2025
Bank of England should cut rates pre-emptively, says committee member
The Bank of England should move quickly to cut interest rates ‘pre-emptively’, according to rate-setter Alan Taylor.
Taylor, the most recently appointed member of the Bank’s monetary policy committee (MPC) said the UK is ‘in the last half mile on inflation’. It came after the Office for National Statistics said earlier on Wednesday that UK consumer prices index (CPI) inflation slowed down last month.
Bank of England rate-setters started cutting interest rates last year after inflation temporarily dipped below the target rate but voted to hold rates at 4.75% at the most recent meeting in December. Taylor was among three of the nine-strong committee who voted for a 0.25 percentage point cut at the meeting.
Lloyds to close second UK office and cut roles as part of major shake-up
Lloyds has announced a series of major changes across the banking group which will see more than 1,000 roles impacted as it accelerates plans to cut costs and digitise the bank.
It also confirmed plans for the closure of a second office in Scotland after plans to shut a site in Liverpool were announced earlier on Wednesday.
The Accord union, which represents thousands of Lloyds employees, said about 1,300 roles were being put up for review within its consumer relationships divisions. Hundreds of roles will be removed, while new ones will be created as part of the overhaul.
Volkswagen ID.7 Pro S achieves 585 miles on a single charge
A Volkswagen ID.7 Pro S has just achieved 585 miles on a single charge at the Nardo race track in southern Italy.
The car was being driven by Volkswagen driving experience pro drivers, with track temperatures ranging from five to 15 degrees – perfect for EV batteries. It has the larger 86kWh battery pack and no modifications were carried out to the car.
VW’s Martin Sander said: ‘We are seeing a positive trend in incoming orders in Europe and are currently selling more ID.7 models than Passat. This shows that the ID.7 is a meaningful all-electric addition to the brand’s product portfolio and, in addition to our successful Passat, is also suitable for long distance drivers and as a company car.’
The markets
London’s equity markets and the pound both rebounded as traders and investors welcomed lower-than-expected inflation data. The FTSE 100 bounced back and finished 99.59 points, or 1.21%, higher to end the day at 8,301.13.
The Cac 40 ended 0.94% higher for the day and the Dax index was up 1.7%.
The pound was up 0.06% at 1.222 US dollars and up 0.3% at 1.187 euros when London’s markets closed.
Starmer travels to Ukraine to sign partnership deal lasting ‘for generations’
Vladimir Putin’s invasion of Ukraine has been a ‘monumental strategic failure’, Sir Keir Starmer said as he travelled to the country to sign a new long-term partnership deal with Volodymyr Zelensky.
The 100 Year Partnership includes defence and scientific collaboration but will also forge new community links between the UK and Ukraine. The agreement will bolster military collaboration on maritime security and will bring together experts in areas including drone technology.
The prime minister, visiting Ukraine for the first time since entering No 10, said the deal showed Putin’s attempts to pull Ukraine away from the West had backfired.
Reeves looking at regulatory reforms in search for economic growth
Rachel Reeves will hope for some more economic good news after a difficult start to the year when the latest monthly growth figures are announced on Thursday.
The chancellor acknowledged the UK was facing ‘economic headwinds’ after government borrowing costs increased and the value of the pound slumped. But the markets appear to have calmed after official figures showed a surprise fall in inflation in December.
She will hold a meeting with regulators in No 11 as she attempts to cut red tape and remove barriers to investment to kickstart sluggish growth.
Wednesday on Car Dealer
Video: The new cars that COLLAPSED in price last year are all EVs bar one
Watch our video to see the extent of losses – one car lost more than £33k in just 12 months.
Arnold Clark set to buy Vauxhall Edinburgh site as Evans Halshaw continues to re-shape network
Evans Halshaw has sold its Edinburgh Vauxhall site to Arnold Clark, continuing its network reshaping under Lithia’s ownership. Staff and stock will transfer without job losses. The site may adopt a multi-franchise model post-sale, boosting Arnold Clark’s Edinburgh presence.
Land Rover Discovery Sport and Ford Kuga top most profitable used car lists for 2024
The Land Rover Discovery Sport topped Dealer Auction’s 2024 Retail Margin Monitor as the most profitable used car, with a £3,700 average margin. The Ford Kuga led in the sub-£10,000 category, highlighting SUVs’ dominance in profitable sales trends.
Automotive 30% Club reveals winners of Inspiring Automotive Women Awards 2025
The Automotive 30% Club’s 2025 Inspiring Automotive Women Awards celebrate women creating inclusive workplace cultures and excelling in traditionally male-dominated roles. With 508 nominations, winners include those promoting female talent pipelines and engaging EV customers, who will recognised at ceremonies in March.
Leapmotor signs franchise agreement with Arnold Clark as brand continues UK growth
Leapmotor, Stellantis’s Chinese EV brand, has partnered with Arnold Clark as its 31st manufacturer, launching branches in Glasgow, Edinburgh, Perth, and Aberdeen. Initial models include the budget-friendly T03 and Tesla Model Y rival, the C10.
Weather
A cloudy and foggy start for the far south and south-east of England, which will take time to lift, reports BBC Weather. Elsewhere, it will be dry and bright; breezier in the north. Highs of nine to 10 degrees.
Low cloud for most parts tonight; clearer in the north-east and more showery in far north of Scotland.
