6:50 am, October 25, 2024
Reeves confirms change to debt rule and warns of higher taxes as Budget looms
Taxes and borrowing are both set to increase as Rachel Reeves signalled she would rewrite the way Government debt is measured in her first Budget.
The Chancellor said she faced difficult choices but insisted her Budget would ‘begin to fix the NHS and start to rebuild our economy’.
The cost of Government borrowing increased in response to speculation the Chancellor would change debt rules to spend billions more on investments.
Consumer confidence falls again amid ‘despondent mood’ ahead of October Budget
Consumer confidence has fallen again amid further worsening sentiment around the upcoming autumn Budget, according to a long-running survey.
GfK’s Consumer Confidence Index fell one point in October to minus 21, as people’s predictions for the general economy worsened over the coming year despite a slight improvement in their forecasts for personal finances.
The drop was significantly less than the seven-point plunge in September. Experts said that was also driven by Labour’s gloomy messaging around the spending statement in late October.
British businesses grow at slowest rate in 11 months amid Budget uncertainty
Activity across the UK’s private sector slipped to an 11-month low in October, amid growing business uncertainty ahead of the Autumn Budget.
The S&P Global flash UK composite purchasing managers’ index (PMI) reported a reading of 51.7 in October, down from 52.6 in September.
It came in lower than expectations of economists, who had pencilled in a reading of 52.6 for the latest survey.
Barclays profit jumps nearly a fifth as investment bank cashes in on dealmaking
Barclays has revealed its earnings jumped by nearly a fifth in recent months, as the investment banking unit cashed in on an increase in dealmaking amid continued cost-cutting.
The bank reported a pre-tax profit of £2.2bn between July and September, nearly a fifth more than the £1.9bn made this time last year.
This beats forecasts, with analysts previously pencilling in a third-quarter profit of about £2bn.
Skoda adds more to its Karoq SUV with Edition models
koda has tweaked its Karoq range, boosting equipment and improving value for money.
In line with a similar update recently made to the Fabia, Scala and Kamiq, Skoda has added new ‘Edition’ trim levels in the form of SE Edition, SE L Edition, and SportLine Edition.
The new entry-level SE Edition now kicks off the range at £29,975, and gets front parking sensors, a rear-view camera, keyless entry and heated front seats and steering wheel.
Thursday on Car Dealer
SMMT repeats calls for incentives on new EVs as UK manufacturing slumps by over 20%
UK car manufacturing saw a significant decline of over 20% in September 2024, with 70,039 units produced, according to the Society of Motor Manufacturers and Traders (SMMT). This drop, which impacted both domestic and export markets, was anticipated as factories prepare for the transition to electric vehicles (EVs). Despite the decrease, 30.4% of cars produced were electrified models. The SMMT is urging more incentives for EV sales to stimulate market growth and support the UK’s automotive industry during its shift to electrification.
Stellantis sees European sales crash in difficult September as Skoda and Tesla benefit
Stellantis saw a 25% drop in European sales in September, with Fiat and Citroen suffering the most, falling by 43% and 41% respectively. Sales in key markets Italy and France dropped by 34% and 17%. Despite a rise in BEV demand across Europe, Stellantis had only one model in the top 10 best-sellers. The company may need to refresh its lineup to reverse the trend.
Volvo cuts growth forecast for 2024 despite beating Q3 profit expectations
Volvo has lowered its 2024 sales forecast despite surpassing third-quarter profit expectations with an operating profit of 5.8 billion Swedish Kroner (£423 million). The company cited declining demand for electric vehicles, slow infrastructure rollout, and competition from cheaper Chinese brands as key factors. It now expects sales growth of 7-8%, down from its earlier 12-15% projection, and anticipates no growth in Q4 .
Tesla increases profit and global sales in Q3 which defies expectations
Tesla reported a strong profit of $2.17bn (£1.68bn) for Q3 2024, up from $1.85bn (£1.42bn) a year earlier, marking a 17% increase in net income. Despite concerns over an ‘aging’ vehicle lineup, the company benefited from price cuts and low-interest financing, boosting revenues by 7.8% to $25.18bn (£19.48bn). Tesla’s sales grew by 6.4%, with 462,890 vehicles sold between July and September.
Sale of disposable vapes to be banned by next summer
The sale of disposable vapes will be banned by next summer, the Government has said.
New legislation to ban the sale of single-use vapes from June 1, 2025 has been laid out in Parliament, the Department for Environment, Food and Rural Affairs (Defra) confirmed on Wednesday.
It added that businesses will have until the deadline ‘to sell any remaining stock they hold and prepare for the ban coming into force’.
The markets
London stocks finished higher as positive updates from the likes of Unilever and Barclays helped boost the FTSE.
The City’s main indexes were in positive territory throughout the trading session, but saw their gains pared back, and pre-Budget caution weighed on some traders.
The FTSE 100 finished 10.74 points, or 0.13%, higher to end the day at 8,269.38. Meanwhile, in continental Europe, the Cac 40 ended 0.08% higher for the day and the Dax index was up 0.39%.
Weather outlook…
The weather today is expected to remain unsettled with low-pressure systems bringing rain, especially to central and southern areas.
The north may experience brighter spells with cooler temperatures, while southern regions will likely face milder but wetter conditions.
Winds may pick up slightly, particularly in exposed areas, and occasional frost is possible during the night.
