6:36 am, September 28, 2022
Kwarteng seeks to calm City nerves after IMF urges change of course
Kwasi Kwarteng will today step up efforts to reassure the City about his economic plans after the International Monetary Fund criticised the measures and the Bank of England signalled sharp interest rate rises could be on the way.
The chancellor will meet investment banks following days of turmoil that saw the pound buffeted and government borrowing costs increase after his mini-Budget spooked the markets with its package of tax cuts and increased borrowing.
In an extraordinary statement, the IMF said it was ‘closely monitoring’ developments in the UK and was in touch with the authorities, urging the chancellor to ‘re-evaluate the tax measures’. Meanwhile, the Bank of England signalled it was ready to significantly ramp up interest rates to shore up the pound and guard against increased inflation.
Royal Mail workers to stage 19 further strikes over next two months
Royal Mail workers are to stage a further 19 strikes in the next two months in a deteriorating dispute over pay and conditions.
The Communication Workers Union announced that the action in October and November will be a mixture of single days and rolling action across Royal Mail Group’s network.
The union said it will have a ‘dramatic impact’ and will cover peak mail periods such as Black Friday, Cyber Monday and the Christmas build-up.
Shoppers hit with record 10.6 per cent food inflation
Food inflation has hit its highest rate on record, with shoppers now paying 10.6 per cent more than a year ago, figures show.
Overall shop price inflation accelerated to 5.7 per cent in September – up from 5.1 per cent in August – to mark another record since the British Retail Consortium-Nielsen IQ index began in 2005.
Food price inflation soared past last month’s 9.3 per cent to 10.6 per cent, driven by the war in Ukraine continuing to push up the price of animal feed, fertiliser and vegetable oil.
Half-term flights ‘42 per cent more expensive than pre-pandemic’
Flights for half-term getaways are an average of 42 per cent more expensive than before the pandemic, according to new analysis.
Consumer group Which? said the typical price of a one-way ticket for the week-long school holiday in October booked six months, three months and six weeks in advance was £212 versus £150 for the same period in 2019.
The increase has been blamed on rising fuel costs, pent-up demand for travel and airport passenger caps, with Which? analysing prices from data company Skytra for flights from Heathrow, Gatwick, Manchester, Stansted, Luton and Birmingham to Alicante, Antalya, Dubai, Dublin, Malaga and Tenerife.
Yorkshire Water hosepipe ban could last ‘well into’ next year
Yorkshire Water has told its five million-plus customers the hosepipe ban could continue ‘well into’ 2023 if there is a dry winter.
The firm’s first ban in 27 years came into effect on August 26, when it said hot, dry weather and ‘the lowest rainfall since our records began more than 130 years ago’ caused reservoir levels to fall below 50 per cent full.
Yorkshire Water’s director of water, Neil Dewis, told the BBC there had since been ‘a slight reduction in demand’ but revealed average levels at the region’s reservoirs had plunged to 35 per cent, with one West Yorkshire reservoir only about 20 per cent full.
Just Eat eyes up tasty profit
The company behind takeaway firm Just Eat has said it will become profitable earlier than first thought after work to get the business into the black.
Bosses at Just Eat Takeaway.com said they think it will make an adjusted earnings profit in the second half of the year – better than previous expectations.
Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) will swing from a loss of 134m euros (circa £120m) in the first half of 2022 to a profit in the second, it added.
Millions urged to get flu and Covid jabs as experts predict ‘difficult winter’
Millions of people are being urged to have flu and Covid vaccines after experts said they were increasingly worried about a bad flu spike this winter.
Officials at the UK Health Security Agency (UKHSA) warned there will be lower levels of natural immunity to flu this year after a few winters when people socialised far less because of the Covid pandemic.
One expert said they were more worried about flu this year than they had been for several years. The UKHSA warned of a possible ‘difficult winter’ ahead as respiratory viruses, including flu and Covid, circulate widely.
Shakira to face trial accused of £13m tax fraud in Spain
A Spanish judge has approved a trial for Colombian pop singer Shakira on charges of tax fraud.
Spanish prosecutors accused the entertainer in 2018 of failing to pay 14.5m euros (circa £13m) in taxes on income earned between 2012 and 2014.
They are seeking an eight-year prison sentence and a hefty fine if she is found guilty of tax evasion. The 45-year-old singer has repeatedly denied any wrongdoing and rejected a deal with authorities to avoid going to trial.
World-first interior radar system from Volvo aims to cut risk of tragedy
Volvo engineers have developed a new interior radar feature that is accurate and sensitive enough to detect the tiniest movements at sub-millimetre scale – such as those of a sleeping toddler.
To be included in the forthcoming EX90 all-electric SUV plus other future Volvo models and covering the entire interior – said to be a world-first – it is designed to help address a cause of terrible tragedy.
US government statistics show that since 1998 more than 900 children in the US have died after being left in hot cars – the majority of them because someone forgot that their child was in the car at the time. Volvo says it wants to help ensure that no one will be left behind or forgotten.
Tuesday’s stories you might have missed on Car Dealer
- Shock rise in used car prices in September
- Hedin Group declares it will block any rival bid for Pendragon
- Nearly 700 MOT testers disqualified by DVSA in past two years
- Bentley selling cars for an average of £189k as profit margins soar
- Revealed: The used car stock that was hot over the summer
- Lookers to plough £4.5m into transformation of Crewe BMW dealership
- Citroen reveals new retro-inspired logo
- Big Mike: Crafty Keith was quids in twice over with Range Rover that didn’t have a key
- Dealerships are warned to innovate quickly as energy crisis and looming legislation pile on pressure
Market movements
The FTSE closed 36.36 points down yesterday to finish on 6,984.59 – the first time it has dropped below 7,000 points since March.
Meanwhile, the Cac 40 lost 15.57 points, ending on 5,753.82, the Dax was down 88.24 points at 12,139.68, and the Dow Jones shed 125.82 points, ending on 29,134.99.
Weather outlook
Today will be less windy than yesterday but will remain cool, says BBC Weather. Much of the UK will see a mix of sunny spells and some isolated showers. Eastern Scotland and northern England will have heavy rain this afternoon.
Thursday will see variable cloud and sunny spells, with some further showers in England and Wales, but it’ll turn drier for most towards the evening.
