Category Archives: Business

Bank of England cuts interest rates to 5% in first reduction since March 2020

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Committee voted by five votes to four in favour of cut as governor says inflationary pressures have eased enough

The Bank of England has cut interest rates for the first time since the start of the Covid pandemic, moving to ease the pressure on households after ratcheting up borrowing costs to combat the worst inflation shock in four decades.

In a finely balanced decision after holding borrowing costs at the highest level since the 2008 financial crisis for a year, the Bank’s monetary policy committee (MPC) voted by a narrow majority to cut its base rate by a quarter of a percentage point to 5%.

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Chip designer Arm Holdings reports 39% surge in revenue but shares fall

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Even as shares fall about 9%, chief financial officer says firm is seeing ‘more investment’ in AI than ‘even 90 days ago’

Chip designer Arm Holdings on Wednesday reported a stronger-than-expected 39% surge in quarterly revenue, and forecast fiscal second-quarter sales broadly in line with Wall Street estimates, yet its shares fell about 9% in extended trading.

For the current fiscal second quarter, Arm forecast revenue in a range between $780m and $830m, compared with an average analyst estimate of $804.1m, according to LSEG data.

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Strong earnings report pushes Meta shares up amid heavy AI spending

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Stock price grew around 5%, which revealed the company outperformed analysts’ expectations for its second quarter

Meta’s shares rose in after-hours trading on Wednesday off the back of a strong earnings report that comes as the company is spending heavily on AI tools.

The company’s stock price grew around 5% following the report, which revealed the company outperformed analysts’ expectations for its second quarter.

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Labor’s planned anti-scam laws are too complicated, too lenient and too slow, advocates say

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Federal government’s promise to force banks to reimburse scam victims criticised as ‘too vague’ and ‘a mess’

The government’s proposed reforms to laws on financial scams let the banking system off the hook, are inferior to policies applied overseas, are complicated for victims and will not be legislated before Australians lose many more billions of dollars, according to consumer advocates.

The scathing criticism comes after an address by the assistant treasurer, Stephen Jones, who vowed on Wednesday to force banks, telcos and social media platforms to reimburse scam victims if their systems prove inadequate, as techniques used by fraudsters grow increasingly sophisticated.

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As many as 360 workers sacked at Rex with hundreds more jobs to go

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Employees reportedly told the airline will no longer operate flights between capital cities

As many as 360 staff at Rex Airlines have been sacked already and hundreds more are on the chopping block after administrators were called in to run the embattled carrier, with remaining staff told they may not get paid until a new buyer is found.

It comes amid speculation that Asia-based private equity firm PAG, which funded Rex’s $150m expansion to jet operations, was considering becoming the airline’s new owner out of administration.

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Hidden cost of UK workplace sickness rockets to £100bn a year, report finds

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Rising bill largely result of ‘staggering’ levels of presenteeism causing loss of productivity

The hidden cost of rising workplace sickness in the UK has increased to more than £100bn a year, largely caused by a loss of productivity amid “staggering” levels of presenteeism, a report warns.

Analysis by the Institute for Public Policy Research (IPPR) shows the cost of staff sickness has grown by £30bn a year to £103bn in 2023. The annual bill was £73bn in 2018, its study found.

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Labour tries to attract clean energy contracts with record £1.5bn for auction

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The new budget comes after the previous government failed to award a single new offshore wind contract in 2023

The Labour government will make record amounts of funding available to clean energy developers after it increased the value of its summer subsidy auction by 50%, to £1.5bn.

The addition, compared with figures previously announced, means the total budget is seven times the amount available at last year’s auction, the government said.

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Greggs adds 5p to cost of sausage rolls despite plan not to raise prices

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Bakery chain says price of meal deals will stay the same but increased costs have put it under pressure

Greggs has increased the amount it charges for some of its items, including an extra 5p on sausage rolls and their vegan equivalent, despite the bakery chain having said earlier this year it had no plans to increase prices.

Roisin Currie, chief executive of the Newcastle-based group, said it had increased prices on a small number of products, including cheese sandwiches, in recent weeks as it continued to come under pressure from a growing wage bill.

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Rex has entered voluntary administration. What happens next to the embattled regional airline?

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Virgin Australia has offered to rebook Rex passengers due to travel on now-grounded capital city flights on an equivalent Virgin service free of charge

There is uncertainty about the future of Rex – Australia’s third-largest airline – after it entered voluntary administration and grounded all of its flights between capital cities.

The Albanese government held crisis talks with Rex on Tuesday and appeared willing to step in to save parts of the airline’s operations.

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Standard Chartered plays down fears of US-China trade war under Trump

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Chief executive says tensions ‘not impacting’ business as bank reports pre-tax profits of $1.6bn for second quarter

Fears of a China trade war erupting under a second Trump presidential term are overblown, according to bosses at Standard Chartered bank, as they suggested that the country’s real estate woes were “largely in the rearview mirror”.

While the London-headquartered bank makes most of its money in Asia, particularly in Hong Kong and Singapore, its chief executive, Bill Winters, played down the impact that increasingly strained relations between Washington and Beijing might have on the business.

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Rex airlines enters voluntary administration with all flights between capital cities grounded

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Federal government says Rex ‘will have a future’ with minister suggesting Labor will step in to save troubled company

All Rex flights between capital cities have been grounded and the airline has entered voluntary administration just hours after the Albanese government suggested it would intervene to ensure the nation’s third-largest carrier didn’t collapse.

Late on Tuesday, EY – formerly known as Ernst & Young – announced it had been appointed as administrators of the company, and that the airline’s Boeing 737 operations between capital cities such as Sydney, Melbourne and Brisbane had been grounded, with Virgin Australia stepping in to offer impacted passengers rebooking “free of charge”.

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France’s GDP gets €1bn lift from giant cruise ship as German economy shrinks

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Analyst says eurozone could have turned a corner as it avoids recession with 0.3% growth

The delivery of the world’s second-largest cruise ship lifted France’s economy in the second quarter, according to official data that also showed Germany heading into a recession.

Built in Saint-Nazaire for the cruise ship operator Royal Caribbean, the Utopia of the Seas added €1bn (£840m) to French economic output, helping to increase trade growth to 0.6% in the three months to the end of June and gross domestic product to 0.3%.

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Chinese firms win record 11% EV share in Europe as buyers rush to beat tariffs

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State-owned SAIC, parent of the British brand MG, was responsible for biggest jump in sales in June

Chinese carmakers secured a record 11% of the European electric vehicle market in June, as buyers raced to beat EU tariffs on imported EVs that came into force this month.

The figures, which include the UK, show that about 23,000 battery electric vehicles were registered in June, up 72% on the previous month as consumers raced to beat the price hike in the EU.

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Labor ignored Bonza’s plea for help, as questions linger over what transport officials knew and when

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Exclusive: Documents reveal what transport minister Catherine King was advised to say in public as budget Australian airline headed for collapse

The Albanese government turned down a plea from budget airline Bonza for financial assistance 10 days before it entered voluntary administration and ultimately collapsed, and new documents have questioned what transport department officials knew and when.

Documents obtained by Guardian Australia through freedom of information laws reveal the transport department prepared a brief on Bonza’s financial assistance request for the transport minister, Catherine King, on 20 April. Ten days later the airline’s planes were repossessed and thousands of passengers stranded across the country.

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Rex forced into trading halt amid questions about the airline’s future

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The carrier promises to respond to reports that it has called in turnaround experts as Anthony Albanese says the airline is ‘important’

Turbulence at Rex Airlines appears to be deepening after the carrier requested a trading halt following speculation it would appoint consultants to turnaround its financial woes.

On Monday, the ASX announced it had suspended trade in the airline’s shares after it had requested the move pending an announcement related to a news article published on Saturday, understood to be a report in the Australian that the airline had appointed turnaround experts from Deloitte.

Rex’s request suggested an imminent related announcement, with the halt in place until the commencement of trade on Wednesday.

The prime minister, Anthony Albanese, said an airline running into trouble was a weekly occurrence in the tough, global industry.

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Rachel Reeves paves way for cuts and tax rises to fill shortfall left by Tories

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Chancellor will announce pause in work on a number of infrastructure projects, saying Conservatives ‘covered up’ true state of finances

Rachel Reeves will lay the ground for cuts to public spending, tax rises and delays to some major infrastructure projects on Monday as she sets out the toxic inheritance the Labour government inherited from the Tories.

She is expected to pause work on a string of infrastructure projects, including Boris Johnson’s flagship plan to build 40 new hospitals and the proposed two-mile road tunnel bypassing Stonehenge.

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Wealth taxes could raise £10bn to help plug Tory budget hole, say economists

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Reforms to inheritance and capital gains taxes could reduce £20bn shortfall and combat UK’s widening wealth gap

Rachel Reeves could quickly find around £10bn a year to plug half of the fiscal hole left by the Conservatives if she were to raise taxes on soaring levels of unearned wealth, according to leading economists.

New research by the independent Resolution Foundation published today finds that Britain is a country of “booming wealth” but “busted wealth taxes”, leaving ample potential for the chancellor of the exchequer to raise desperately needed funds by raising taxes on the richest.

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Top pilots’ union sounds alarm as regulators consider smaller crew sizes

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Firms accused of putting profits over safety as EU group weighs cutting minimum number of pilots from two to one

Aerospace giants have been accused of putting profits ahead of safety as officials consider cutting the minimum number of pilots required on commercial flight decks from two to one.

The move, which is currently being evaluated by the European Union Aviation Safety Agency (EASA), would weaken standards to the “lowest common denominator”, the world’s largest union of airline pilots has warned.

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Further Eurostar cancellations hold up Paris 2024 passengers

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The rail operator has pulled four of 15 trains from its Saturday schedule, affecting more than 3,000 people

Eurostar passengers hoping to catch the start of the Paris Olympics have continued to face difficulties after an arson attack in France caused train cancellations.

People travelling by Eurostar from London to Paris on Friday were asked to postpone trips if possible after the rail operator cancelled one in four trains over the weekend as a result of arson attacks that lead to widespread disruption to France’s high-speed rail network hours before the start of the Olympics.

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London Eurostar passengers asked to postpone journeys after arson attack

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High-speed rail services have been disrupted, hours before Olympics opening ceremony, by ‘acts of malice’

Eurostar passengers travelling from London to Paris on Friday were asked to postpone trips if possible, with trains delayed and cancelled after arson attacks took place on high-speed rail lines hours before the start of the Olympics.

Most services were leaving St Pancras International station on time but journeys were expected to be prolonged by at least an hour in France. Two afternoon departures have been cancelled.

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