Chinese shadow bank admits £30bn shortfall after ‘management ran wild’

Zhongzhi, a wealth manager with links to China’s ailing property market, says it is ‘severely insolvent’

One of China’s biggest financial conglomerates with links to the country’s ailing property market has admitted a shortfall of nearly £30bn as it warned investors that it is “severely insolvent”.

Zhongzhi, an asset and wealth management company in China’s shadow banking sector, said its total assets amounted to 200bn yuan (£22.5bn) against obligations of up to 460bn yuan, in a letter to shareholders issued on Wednesday.

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Energy bills in Great Britain to rise by 5% from January as cap hits £1,928

Ofgem increases minimum price for energy suppliers to charge customers after rise in global gas prices

Households will begin the new year with a 5% increase in energy bills after the regulator raised the price cap to an average of £1,928 a year for the typical gas and electricity bill.

Ofgem raised the maximum price that energy suppliers can charge their customers from £1,834 a year for the typical household between October to December, after a rise in global gas market prices after the start of the Israel-Hamas war last month.

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Office of judge presiding over Trump’s New York trial bombarded with threats

Judge Arthur Engoron and his clerk have also received antisemitic abuse since a gag order imposed on the ex-president was lifted

The office of the New York judge overseeing Donald Trump’s civil fraud trial has been bombarded with death threats and antisemitic abuse following the former president’s online attacks.

Judge Arthur Engoron and his clerk, Allison Greenfield, are said to have received hundreds of threatening, harassing and disparaging messages via telephone and social media.

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Autumn statement live: Jeremy Hunt cuts national insurance as OBR downgrades UK growth forecast

Chancellor cuts employee national insurance to 10% while abolishing class 2 national insurance

Keir Starmer has said that a pause in hostilities between Israel and Hamas must be used to tackle the “urgent and unacceptable humanitarian catastrophe” in Gaza.

Welcoming the deal, which is expected to involve the release of 50 hostages being held by Hamas and a number of women and teenagers from Israeli jails, the Labour leader said his party had been calling for “a substantial humanitarian pause”. He said:

There must be immediate access to aid, food, water, fuel and medicine to ensure hospitals function and lives are saved. Aid and fuel need to not just get in but be distributed widely and safely.

We must also use the space this pause creates to take more steps on a path towards a full cessation of hostilities rather than an escalation of violence.

The real function of the projected spending squeeze is as a trap for Labour. If the opposition rejects the Tory trajectory, it will be accused of planning a profligate spree with public money. And if it pledges adherence to impossible targets, it will enter government with its hands bound too tight to deliver prompt satisfaction to the people who voted for it.

Keir Starmer and Rachel Reeves have so far operated a sensible policy of not walking into traps of this kind. That approach restored swing voters’ trust in Labour as stewards of the economy. But it tests the patience of an activist base that sees reversal of austerity as a moral imperative and can smell the incipient disappointment in promises of fiscal discipline.

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OBR halves UK growth forecast and warns inflation will exceed 2% target until 2025

Despite £27bn windfall for the autumn statement, government forecaster warns of generally more difficult outlook until 2028

The government’s official forecaster has slashed its predictions for economic growth over the next two years, and warned that inflation could take until 2025 to come back to the official 2% target.

In an updated financial health check to accompany the autumn statement, the Office for Budget Responsibility (OBR) said a more resilient economy this year had handed the chancellor a £27bn budget windfall, but it warned of a more difficult outlook up to 2028 than previously forecast at the time of the budget in March.

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UK minister intends to refer Barclay family’s offer for Telegraph to Ofcom

Government ‘minded to’ issue intervention notice to call in regulator on public interest grounds

The culture secretary intends to ask the media watchdog to examine the Barclay family’s proposed deal to hand control of the Telegraph and the Spectator magazine to an Abu Dhabi-backed consortium.

Lucy Frazer said on Wednesday she was “minded to” call in Ofcom to look at the investment fund’s plans to take over the titles in exchange for repaying £1.15bn of the family’s debts to Lloyds Banking Group.

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Eurozone banks starting to show ‘stress’ as loan defaults rise, ECB warns

Rising interest rates have boosted profitability but are likely to limit demand and increase risk of bad debts, says central bank

The balance sheets of eurozone banks are showing “early signs of stress” after a rise in loan defaults and late payments by customers, the European Central Bank has warned.

Higher interest rates have boosted banks’ income and profits for the time being, the ECB said, but lenders are facing pressures from higher funding costs, worsening asset quality and lower lending volumes.

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New Karate Kid movie with Ralph Macchio and Jackie Chan in the works

A global casting call from the two actors – looking for a new teenage star – suggests the separate strands of the series will be brought together

Following the success of the TV series Cobra Kai, a new Karate Kid movie featuring Ralph Macchio and Jackie Chan has been announced, along with a global casting call to find a teenage star for the film.

Macchio, who starred in the first three Karate Kid movies between 1984 and 1989 before returning to anchor Cobra Kai which first aired in 2018, and Chan, who appeared in the 2010 reboot starring Jaden Smith, appeared together in a short video to make the announcement. The casting notice suggested the film will also feature a new character called Li Fong, who is “Chinese or mixed-race Chinese [aged] between 15-17 years old [and] speaks fluent English”. The website added: “Conversational Mandarin is a strong plus. He’s smart, scrappy and a skilled martial artist.”

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B&Q owner issues another profit warning after weak sales in France

UK business lifted by ‘improve not move’ trend and interior design videos on TikTok

The owner of B&Q and Screwfix issued its second profit warning in three months after weak sales in France but said its UK business is being boosted by the “improve not move” trend and interior design videos on TikTok.

Kingfisher, which also owns Castorama and Brico Dépôt in France and operates in Poland, Iberia and Romania, too, reported an almost 4% sales decline in its financial third quarter, prompting a downgrade in its annual profit forecast from £590m to £560m.

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Labor to reconsider mandatory data retention laws for companies in light of major hacks

New cyber security strategy cites business concerns at having to store large amounts of data for excessive periods of time, increasing breach risk

Following several high-profile data breaches in the past year, the federal government will review laws requiring companies to retain data as part of its new cyber security strategy.

Released on Wednesday, the 2023-30 strategy notes that data is increasingly used for ransom attacks and as a tool for coersion.

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Crypto giant Binance admits to money laundering and agrees to pay $4.3bn

CEO Changpeng Zhao will resign and pay a $50m individual fine as part of a plea deal with the US Justice Department

Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange, agreed to resign from the company and plead guilty to money laundering on Tuesday.

As part of a guilty plea, Zhao agreed to pay a $50m fine and would be barred from any involvement in the business. Binance too agreed to plead guilty, accept the appointment of a monitor and pay a criminal fine of nearly $1.81bn as well as a $2.51bn order of forfeiture to settle three criminal charges. The US Justice Department had charged the company with conducting an unlicensed money transmitting business, a conspiracy charge and violating the International Emergency Economic Powers Act.

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Autumn statement: Jeremy Hunt looks to cut UK taxes and ‘turbo-charge growth’

Amid less gloomy OBR forecasts the chancellor is expected to take first steps towards cutting personal taxes

Jeremy Hunt will announce 110 measures to boost Britain’s stagnant economy and bow to demands from anxious Tory MPs for tax cuts when he delivers his second autumn statement on Wednesday.

In one of the last set-piece economic events before the general election, the chancellor will pledge to “turbo charge” growth while taking the first steps to cut personal taxes after recent sharp increases.

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Dyson tells libel trial Daily Mirror article was a distressing ‘personal attack’

Inventor is suing publisher over ‘rogues’ gallery’ article that stated he championed Vote Leave before moving global HQ to Singapore

An article that featured Sir James Dyson in a “rogues’ gallery” and stated that he had “championed Vote Leave … before moving his global head office to Singapore” was “damaging and distressing” to the inventor and entrepreneur, the high court has heard.

In a written statement to the court, Dyson described a Daily Mirror article published last year as a “personal attack on all that I have done and achieved in my lifetime” and said it was “highly distressing and hurtful”.

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‘Breakthrough battery’ from Sweden may cut dependency on China

Northvolt says new lithium-free sodium-ion battery is cheaper, more sustainable and doesn’t rely on scarce raw materials

Europe’s energy and electric vehicle industries could reduce their dependency on scarce raw materials from China after the launch of a “breakthrough” sodium-ion battery, according to its Swedish developer.

Northvolt, Europe’s only large homegrown electric battery maker, has said it has made a lower cost, more sustainable battery designed to store electricity which does not use lithium, nickel, graphite and cobalt.

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UK borrows less than expected this year as Hunt lines up giveaways

Chancellor says bringing down inflation remains one of his main aims as he prepares autumn statement

The UK government borrowed less than expected in the first seven months of the financial year as Jeremy Hunt puts the last-minute touches to a series of pre-election giveaways in his autumn statement on Wednesday.

Public sector borrowing between April and October was just above £98bn, according to the Office for National Statistics (ONS), and while this was £22bn higher than in the same period last year, it was almost £17bn less than the Office for Budget Responsibility (OBR) forecast in March.

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Shareholders of mining company Fortescue deliver protest vote against executive pay plans

Iron ore miner rebuked with 52% of investors voting against remuneration report amid senior staff departures

Iron ore miner Fortescue received a stern rebuke of its executive pay plans on Tuesday, with shareholders registering a strike against the company after a tumultuous period of senior staff turnover.

The Andrew Forrest-chaired company lost the chief executive of its mining business, its chief financial officer and a high-profile former director in quick succession earlier this year, causing shareholder angst.

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BoM provides El Niño update – as it happened

This blog is now closed

Birmingham says China ‘doesn’t appear to be acknowledging the facts’

Shadow foreign minister Simon Birmingham is speaking with ABC RN and is asked about sonar pulses from a Chinese warship that left one Australian naval diver injured.

The Australian navy and Australian defence force operates always with professionalism, and I’m confident that Australia’s version of events is a credible.

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Would Javier Milei’s dollar plan for Argentina be an economic experiment too far?

President-elect’s idea is a gamble that is likely to crash an economy paying the price for mistakes of his predecessor

Javier Milei’s bigger-than-expected victory in the Argentinan presidential election suggests voters in South America’s second biggest country have willingly opted for shock treatment to sort out the country’s deep economic malaise.

It is perhaps not hard to see why 56% of the electorate backed the rightwing libertarian: Argentina may have the world’s best football team but its economy has performed disastrously in recent years. Inflation is running at 140% and a three-year drought has led to a sharp fall in agricultural production. Two out of five people live in poverty and the currency has lost 90% of its value in four years.

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Wells Fargo workers at two US branches of bank launch efforts to unionize

Employees in Albuquerque, New Mexico, and Bethel, Alaska, make rare move to organize staff in financial industry

Workers at two Wells Fargo bank branches are planning to launch unionization efforts on Monday in a rare move to organize staff at a financial services company.

Employees in Albuquerque, New Mexico, and Bethel, Alaska, said they would notify the National Labor Relations Board that they plan to hold elections to decide whether to unionize, the Wall Street Journal reported.

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Sam Altman’s OpenAI exit leads to rollercoaster for sector

Firing of industry figurehead led to rebellion at his former employer and his hiring by its rival Microsoft


The blog headline was anodyne – “OpenAI announces leadership transition” – but the consequences for Silicon Valley were seismic.

On Friday the company behind the hit AI text-generating system ChatGPT announced that Sam Altman, figurehead for the business and the artificial intelligence revolution that has enthralled and alarmed the world in equal measure, had been fired as chief executive.

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