6:27 am, October 29, 2024
Shop prices ease for third month amid warnings of potential volatility
Shop prices continued to ease in October amid warnings they remain vulnerable to ongoing geopolitical tensions, climate change and government regulation.
Overall prices are now 0.8% cheaper than a year ago, the third consecutive monthly fall and a drop from September’s 0.6% deflation, according to the British Retail Consortium (BRC)-NielsenIQ Shop Price Index.
Prices of non-food items remained 2.1% cheaper overall than a year ago, unchanged from September, however, fashion prices edged up slightly for the first time since January. Food inflation eased to 1.9%, down from last month’s 2.3%, particularly for meat, fish and tea as well as chocolate and sweets amid Halloween deals.
Four-day week ‘no threat to the economy’, says Angela Rayner
A four-day working week is ‘no threat to the economy’, the deputy prime minister has said as she vowed to ‘work with’ town halls.
Angela Rayner suggested four-day weeks, which the previous government described as ‘part-time work for full-time pay’, could improve productivity in local government.
Conservative shadow local government secretary Kemi Badenoch described the arrangement as ‘unacceptable’ at the House of Commons despatch box on Monday.
New Abarth 600e goes on sale priced from £36,975
Abarth has announced prices and specifications for its upcoming 600e.
There will be two versions on offer, 600e and Scorpionissma. Both come with the same 54kWh battery pack, with the former getting a 235bhp electric motor, while the latter gets a 277bhp motor. Abarth claims both models can cover 207 miles between charge-ups.
The new model gets a bold bodykit, colour palette and interior detailing. The suspension has also been lowered by 30mm at the front and 25mm at the rear. Prices start at £36,965 for the standard 600e and rise to £41,975 for the Scorpionissima version – which will be limited to just 1,949 units. Order books will open in mid-November.
The markets
Top UK stocks made some afternoon gains after a slow start to trading on Monday, despite plummeting oil prices weighing on energy stocks. The FTSE 100 moved 36.78 points higher, or 0.45%, to close at 8,285.62. Earlier in the day it had been down as much as 0.5%.
In the US, the S&P 500 was up about 0.4%, and Dow Jones was 0.7% higher. In Paris, the Cac 40 climbed 0.79%, and in Frankfurt, the Dax moved 0.35% higher.
The pound was more or less flat against the US dollar, at 1.3, and was down 0.1% against the euro, at 1.2.
Budget will end NHS ‘neglect’ but improvement will take time, ministers warn
The Budget’s tax hikes and borrowing increases may not be enough to undo ’14 years of damage’ to the NHS, Rachel Reeves warned.
The chancellor is expected to pump billions of pounds into the health service, including £1.5bn for new surgical hubs and scanners and £70m for radiotherapy machines.
Health secretary Wes Streeting said ‘it will take time to turn the situation around’ but the injection of funding would help meet Labour’s pledge to deliver two million extra NHS appointments a year.
£2 bus fare cap to increase to £3 in Budget, Starmer announces
The £2 bus fare cap will be replaced by a new £3 cap until the end of 2025 at this week’s Budget, the prime minister has confirmed.
Sir Keir announced the change during a speech in Birmingham, in which he also defended looming tax rises and confirmed millions in funding for local services to help get people back to work.
The bus fare increase will be part of chancellor Rachel Reeves’ first Budget on Wednesday, as the government tries to bridge what it has called a £22bn ‘black hole’ in the public finances, but has already been labelled a ‘bus tax’ by one opposition party.
Monday on Car Dealer
Honda ‘pulls car finance and delays customer handovers’ in wake of Close Brothers ruling
Following a Court of Appeal ruling requiring full disclosure and customer consent for broker commissions last week, Honda Finance has paused car finance payouts. The decision impacts customers awaiting vehicle deliveries and has caused widespread industry disruption, with lenders reassessing compliance.
MotoNovo issues important update and pauses new finance proposals
MotoNovo has paused new finance proposals following an October 25 court ruling on commission disclosure, joining Close Brothers and Honda Finance. MotoNovo aims to quickly update its processes, assuring existing customers their agreements remain unaffected during this temporary pause.
Lookers crashes to £1.8m loss as delayed accounts reveal impact of Global Auto Holdings takeover
Lookers reported a pre-tax loss of £1.8m for 2023, driven by doubled finance costs, inflation, and £16.6m in acquisition-related fees. Despite revenue growth and higher vehicle sales, underlying profits fell 53.4% from 2022. The takeover led to redundancies, with 14% of staff affected
Lloyds Bank ‘assessing potential impact’ of car finance ruling on commissions
Lloyds Bank is reviewing the impact of a recent court ruling that mandates full disclosure of dealer commissions on car loans. Following the ruling, shares dropped, Honda Finance paused payments, and Close Brothers stopped underwriting, raising concerns over compensation claims and stricter compliance standards.
Sytner sees profit drop as interest fees soar and it writes off £25m goodwill
Sytner’s 2023 profit fell nearly 30% to £125.9m despite record revenue of £7.4bn, impacted by increased borrowing costs and reduced used car profitability. The group closed some dealerships, acquired Rybrook sites, and restructured under new leadership, maintaining strong Mercedes-Benz partnerships.
Auto Trader exec says challenger brands are bringing ‘choice and diversity’ to new car market
Auto Trader’s Bex Kennett told the Car Dealer Podcast, sponsored by Carwow, that increasing consumer choice and reduced brand loyalty with new car brands, especially Chinese entrants, gaining traction through competitive technology, pricing, and warranties. She also hopes for government incentives to boost slowing EV sales.
Dealer management systems provider Pinewood rebrands to bring AI to the fore
Pinewood has rebranded as Pinewood.AI, emphasising its shift to a standalone SaaS model under ‘Pinewood Automotive Intelligence’. The rebrand aligns with strategic growth, including AI-driven customer insights and expanded partnerships with UK sites and Marshall, enhancing its global market reach.
Comment: Reflections on Tesla’s Cybercab reveal: What went wrong with the ‘Robotaxi’ launch?
In a column for Car Dealer, David Bailey, professor of business economics at Birmingham Business School, believes Tesla’s Cybercab reveal disappointed investors and consumers alike, failing to deliver on promises of full autonomy and innovative urban mobility. The vehicle’s divisive design, partial automation, high cost concerns, and limited practicality fuelled criticism, underscoring the risks of overhyped expectations.
Vertu Motors becomes latest dealer group to end Sunday trading in aid of work-life balance
Vertu Motors is to close its dealerships on Sundays as part of a drive to improve the work-life balance of staff. The move will come into effect from the start of December.
Weather
A mostly cloudy day although sun will burst through this afternoon for many areas, reports BBC Weather. North-west Scotland will have light rain along with cloud. Temperatures will reach a high of 17 degrees.
A mild night with cloud and the odd spot of rain for northern areas. Further south, fog will develop during the night.
