Bracket creep is cooling Australia’s economy – it’s good news for interest rates but not for household budgets

The weak economy probably means the next RBA rates move – short of an inflation surprise next month – will be a cut

Philip Lowe used his final speech as Reserve Bank governor to call on fiscal policy to “provide a stronger helping hand” in managing inflation so the central bank didn’t have to carry most of the load – and the ire.

“Raising interest rates and tightening policy can make you very unpopular, as I know all too well,” Lowe said on 7 September, 10 days before many battling borrowers cheered him out the door.

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Australia’s economic growth slows, reducing chance of another interest rate rise next year

Economy grows more slowly than expected, with consumer spending flat under the pressure of high interest rates

Australia’s economy surprisingly slowed in the September quarter, as the toll of higher interest rates hit consumers and trade turned negative.

Gross domestic product expanded 0.2% in the September quarter compared with the previous three months, marking an eighth consecutive quarter of growth, the Australian Bureau of Statistics said on Wednesday. Economists had forecast GDP growth would quicken to 0.5% from 0.4% in the June quarter.

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Millions will struggle to heat homes this Christmas, says UK’s National Debtline

About 2.7m will have to choose between buying food or presents as cost of living crisis bites

Millions of people will have to make stark financial choices this Christmas including choosing between buying food or presents and be unable to afford to keep their homes warm through the festive season, according to new research by National Debtline.

About 6.5 million people will struggle to heat their homes sufficiently this festive season, while 2.7 million will have to choose between buying food or presents, highlighting the drastic impact the cost of living crisis continues to have on household budgets.

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EE launches streaming TV with custom Apple TV box in UK first

Live and on-demand TV over broadband replaces BT TV as firm continues brand and service revamp

The BT-owned EE is rolling out its revamped TV over broadband offering, which delivers live and on-demand services streamed to a choice of set-top boxes that includes a customised Apple TV – a first for the UK.

The new IPTV service continues the firm’s replacement of the BT brand with EE and ditches the aerial while still offering free-to-air and premium channels in a range of packages starting at £18 a month on top of the required EE broadband subscription.

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London borough of Richmond is ‘happiest place to live in Great Britain’

Access to huge parks, restaurants and transport links plus a Ted Lasso-factor lead area to top Rightmove’s ‘happy at home’ index

It is home to London’s largest royal park as well as big-hitting tourist attractions such as Kew Gardens and Hampton Court Palace, and has more recently become a place of pilgrimage for fans of the hit TV comedy Ted Lasso. Now, the borough of Richmond upon Thames in south-west London has been named “the happiest place to live” in Great Britain.

It received the accolade from property website Rightmove, which runs a “happy at home” index – now in its 12th year – where it asks residents how they feel about their area based on 13 “happiness factors”.

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EU set to suspend Brexit tariffs on EVs for three years in major boost for car industry

Commission moves to delay 10% sales charge after intense lobbying by EU and UK carmakers

The European Commission looks set to propose a three-year delay to a 10% tariff on sales of electric vehicles between the EU and the UK, in a major boost for car industries across Europe.

Duties were due to kick in on 1 January 2024 but all the major carmakers in the UK and Europe including BMW, Volkswagen and Stellantis have been lobbying for a temporary reprieve.

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EU expected to issue veiled warning to China over supply of cut-cost goods

European Commission chief Ursula von der Leyen to meet Chinese president Xi Jinping at summit on Thursday

The EU is to tell China that its €400bn (£343bn) trade deficit is not sustainable long term amid fears that it will flood the bloc with subsidised electric cars, solar panels and medical devices, threatening European manufacturing and jobs.

Ursula von der Leyen, the European Commission chief, and Charles Michel, the European Council president, will meet Xi Jinping at a summit on Thursday, the second of its kind this year.

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Moody’s cuts China credit outlook to negative as economy slows

Rating agency says Beijing may need to bail out local governments as property sector collapses

China’s ability to repay its government borrowing has been downgraded by the credit rating agency Moody’s, which said the ripple effects from a crisis in the property sector would undermine efforts to revive its flagging economy.

Moody’s warned that Beijing would need to bail out local and regional governments and state-owned enterprises that were struggling with rising debts, hampering efforts to boost investment and growth.

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Thames Water says it is taking ‘radical’ action but turnaround will take time

Company announces plunge in profits after being told by auditors it could run out of money by April

The ailing utilities firm Thames Water has said it is taking “immediate and radical” action to turn around the business, days after it emerged its auditors had warned it could run out of money by April.

The debt-laden water supplier said it was working on a three-year turnaround to overhaul its environmental, operational and financial performance, as profits more than halved to £246m in the six months to 30 September, largely due to changing valuations of its assets.

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Jim Chalmers open to clean energy investment reforms pushed by super funds

Treasurer says government ‘committed to consider’ proposals, including concessional finance to bankroll new transmission infrastructure

Jim Chalmers has signalled the Albanese government is open to considering sweeping reforms being championed by industry superannuation funds to unlock billions in private capital to fund Australia’s clean energy transition.

After meeting on Tuesday with banks, venture capital firms, super funds and investor groups in Canberra, the treasurer told journalists he had committed to consider specific measures proposed by AustralianSuper, cbus, HostPlus, CareSuper, Hesta, UniSuper and the behemoth Australian fund IFM Investors.

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Australia news live: Reserve Bank to deliver year’s last interest rates decision as economists tip no change

Poll finds 28 of 30 economists expect central bank to keep cash rate steady at 4.35%. Follow the day’s news live

Good morning, and happy Tuesday.

I’m Emily Wind and I’ll be with you on the blog today – many thanks to Martin for kicking things off.

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CBI warns of ‘material uncertainty’ over future after sexual misconduct claims

In a statement released with annual accounts, business lobby group says it has had to deal with ‘exceptional costs’

The Confederation of British Industry has said it is suffering a “considerable level of financial stress” and there remains “material uncertainty” that it can continue operating in the long term after sexual misconduct allegations.

The scandal-hit business lobby group said it was “emerging from an unprecedented situation” that had led to “exceptional costs”, warning there was also “material uncertainty arising from the CBI’s financial performance since the year end”.

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The broken state of UK economy is clear; Hunt and Starmer’s solutions are less so

Resolution Foundation report underlines lack of progress by Tories but Labour proposals seem woolly

Britain’s economy is broken. That was the simple message given by the Resolution Foundation thinktank in the final report of its long-running look into the state of the nation.

Monday’s conference to launch the report was a high-powered affair, containing past and present members of the Bank of England’s monetary policy committee, the head of the Office for Budget Responsibility, Richard Hughes, and other members of the great and good.

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James Cleverly tells MPs crackdown will cut annual immigration numbers by about 300,000 – as it happened

Home secretary to announce big hike in salary requirement for migrants to the UK as Rishi Sunak tries to cut net migration figures

Hunt says the government wants to speed up the time it takes to get a connection to the national grid by 90%.

Zanny Minton Beddoes, the editor of the Economist, is interviewing Hunt. She says he has mentioned the 110 policies, but she wants to know what the growth strategy is.

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China’s Evergrande wins more time to restructure debts

Hong Kong court gives property developer until 29 January to formulate deal for creditors

The property developer Evergrande has been granted an extension until late January to try to restructure its debts and avoid liquidation in one of the most high-profile cases in China’s long-running property crisis.

Evergrande was once China’s biggest property developer, but a default on offshore debt obligations in 2021 started a lurch from one crisis to another. It has reported debts of more than $300bn (£237bn), much of it to individuals whose properties were never built.

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Dutton urges PM to put preventive detention on national cabinet agenda – as it happened

Follow the day’s news live

Assistant climate change minister asked whether Australia ‘can be taken seriously’ without fossil fuel phase-out promise

The assistant minister for climate change and energy, Jenny McAllister, was also making the rounds this morning amid the Cop28 summit.

We, of course, are working towards transforming our national electricity system to incorporate 82% renewables by 2030. This is a really ambitious transformation, but one that we believe will lay the foundations for a cleaner and more affordable energy system for Australians.

If you think about what it means to take our energy system from 33% renewables to 82%, that does mean that our fossil fuel use within our own energy system at home is changing very dramatically over the course of a decade.

We know that globally, we need to see similar changes and similar investments in the new technologies to drive low emissions power, not just here in Australia, but actually, right across the world.

… or any electorate around the country where it is proven to be technologically feasible, has a social licence and it is going to get prices down.

We have to be humble enough at these conferences at Cop to say what are other countries doing? What peer countries are doing is they are saying we are looking at nuclear energy as part of the balanced mix.

We must in Australia be driven not by ideology, but by economics and engineering and learn from those countries and that includes consideration for zero emissions nuclear energy, and people may be arguing all they like, but we will be very open and transparent as we always have been.

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Rockall fishing rights dispute between Scotland and Ireland deepens

Countries at loggerheads over access to fishing grounds in north Atlantic since Brexit referendum in 2016

Irish fisheries leaders have warned of fresh conflicts with Scotland over fishing rights around the north Atlantic islet of Rockall as evidence emerged about the roots of the long-running sovereignty dispute.

Scotland and Ireland have been at loggerheads over access to fishing grounds within 12 nautical miles of Rockall since the Brexit referendum in 2016, which signalled an end to the UK’s membership of the common fisheries policy.

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Europe is ‘miles behind’ in race for raw materials used in electric car batteries

EU and UK carmakers have secured just 16% of lithium, cobalt and nickel needed to hit 2030 targets, says study

European carmakers have secured less than a sixth of the key raw materials they will need by 2030 to make electric vehicle batteries, according to analysis that highlights the expected scramble for green-tech resources.

Carmakers have secured contracts for 16% of the lithium, cobalt and nickel required to hit their 2030 electric car sales targets, according to public disclosures analysed by Transport & Environment (T&E), a Brussels-based campaign group.

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Alaska Airlines to buy Hawaiian Airlines in deal that may face regulator scrutiny

Deal for $1.9bn, which includes $900m in Hawaiian Airlines debt, would keep both airlines’ brands

Alaska Airlines said Sunday it agreed to buy Hawaiian Airlines in a $1.9bn deal, including debt, putting it on track for a potential clash with a Biden administration that has shown wariness about higher fares in the industry.

The combined company would keep both airlines’ brands, rooted in the nation’s 49th and 50th states. Alaska will pay $18 in cash for each share of Hawaiian, whose stock closed Friday at $4.86 after losing just over half its value in the year so far.

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Brexit-backer Richard Desmond invokes EU law to sue Gambling Commission

Ex-Express owner is expected to claim regulator made errors during bidding war for national lottery contract

Richard Desmond, the Brexit-backing media tycoon, is invoking EU law to sue the gambling regulator after it rejected his “fanciful” bid to run the national lottery, in a suit that could deprive good causes of millions of pounds.

The former owner of the Daily Express has vowed previously to seek damages from the Gambling Commission after his company Northern & Shell missed out on a 10-year contract, worth £6.5bn, to run the lottery from next year.

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