Category Archives: Business

RBA interest rates: banks split on future rate hikes as uncertain economic outlook prompts pause

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Homeowners with a mortgage will be breathing a sigh of relief after RBA paused rate rising at Tuesday’s board meeting

Australian borrowers have had a reprieve after the Reserve Bank paused its interest rate hikes for only the second time in the past 14 meetings, giving the central bank more time to assess the state of the economy.

The RBA left its official cash rate at 4.1% on Tuesday, which is still the highest level in 11 years. Economists had been divided in their forecasts, with about half predicting the pause and the others expecting another 25 basis point increase.

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Watchdog summons UK bank bosses to discuss weak savings rates

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Financial Conduct Authority to meet executives on Thursday as part of its investigation into savings market

UK bank bosses have been summoned to a meeting with the financial watchdog this week amid mounting concerns that they are profiting from rising interest rates by offering paltry savings rates to customers.

Executives from the big high street names Lloyds Banking Group, NatWest, HSBC and Barclays, as well as from smaller lenders, are due to attend a meeting at the Financial Conduct Authority (FCA) on Thursday to discuss concerns that savings rates are lagging far behind the soaring costs of mortgages and loans.

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International Energy Agency warns of higher bills this winter

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Fatih Birol says China’s economic recovery combined with harsh winter could pile pressure on gas supplies

The head of the International Energy Agency has said energy prices may spike again this winter, forcing government to subsidise bills – just days after state support for UK households fell away.

Fatih Birol said a rapid improvement in the Chinese economy, coupled with a harsh winter, could put pressure on gas supplies and push up bills for consumers.

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GMB accuses gas network of ‘money-grabbing’ cuts to pension scheme

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Exclusive: Cadent Gas, owned by Australia asset manager Macquarie, is considering closing its defined benefit scheme

The former owner of crisis-hit Thames Water has been accused by union leaders of staging a “cost-cutting money grab” at another critical UK infrastructure asset under its control, as it emerged that Cadent Gas is considering cuts to its pension scheme.

Macquarie, the Australian banking powerhouse that owned Thames for a decade, has led a consortium controlling Cadent since 2016. Cadent, Britain’s biggest gas network, serving 11 million people, was formerly part of National Grid.

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M&S offers money off children’s clothes in exchange for used school uniforms

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Promotion is designed to help parents who are struggling to afford clothes amid cost of living crisis

Families are being offered money off children’s clothes in Marks & Spencer if they donate school uniform hand-me-downs, as part of a push designed to help parents struggling to afford them amid the cost of living crisis.

The second-hand uniform collected will be sold via Oxfam’s high street chain as well as via a new “back-to-school” eBay shop. The tie-up is an extension of M&S’s existing “shwopping” partnership with Oxfam, in which customers drop off old clothing in exchange for loyalty card perks.

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Ex-offenders could help cut UK labour shortages, says report

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Good Jobs Project from ReGenerate aims to help ex-prisoners, neurodivergent people, asylum seekers and other groups into work

Unemployed ex-offenders are being overlooked for jobs and could help fill the 1.1 million vacancies in the UK job market, a report has claimed.

Britain is “facing one of the worst labour shortages in its history”, the year-long study said, arguing that the vast numbers of people commonly overlooked for jobs should be targeted.

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US Treasury secretary Janet Yellen to visit China to build ‘healthy’ ties with Beijing

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Yellen heads to Beijing this week in move one expert calls an attempt to ‘put some floor’ under strained economic ties

US Treasury secretary Janet Yellen will visit Beijing this week, marking the second trip by a cabinet official to China since ties between the world’s top two economies deteriorated earlier this year.

Yellen is expected to discuss with her counterparts the importance for both countries “to responsibly manage our relationship, communicate directly about areas of concern, and work together to address global challenges”, said the Treasury Department in a statement on Sunday.

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Thames Water shareholder gives backing to crisis-hit firm

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USS support for turnaround plan comes as water company buckles under £14bn debt burden

One of Thames Water’s big shareholders has given its backing to the embattled water company, after the surprise departure of its chief executive and crisis talks with the government over its viability.

Thames Water, which is buckling under a £14bn debt burden and has embarked on an eight-year turnaround plan, is owned by a series of pension funds and other governments’ sovereign wealth funds. The second-biggest shareholder is a UK pension fund for academics, the Universities Superannuation Scheme (USS), which holds about 20% and is the first investor to make public its support for the company.

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UK airports say they can reach net zero and still expand. Is it just pie in the sky?

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Despite the Climate Change Committee’s warnings to stop growing capacity, Gatwick is gearing up for another try at a second runway

So what bit of “no new airport capacity” did airports not understand? The Climate Change Committee (CCC) spelled it out again on Wednesday: flying accounted for 7% of UK carbon emissions last year, the trend is upwards, and more airport capacity is “incompatible” with national net zero targets.

Of course, they’ve said it before: but as the committee noted in its 2023 progress report, airports have since have been racing to expand. This time, hammering it home, the CCC says that no expansion at all should go ahead until the government sorts out a proper way to manage it.

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Exclusive: UK water giants recruit top staff from regulator Ofwat

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Demands for an end to the ‘revolving door’ as ex-Ofwat directors are hired by key firms

Two-thirds of England’s biggest water companies employ key executives who had previously worked at the watchdog tasked with regulating them, the Observer can reveal.

Cathryn Ross, the new interim joint chief executive of Thames Water and a former head of watchdog Ofwat, is one of several ex-employees working for water companies in senior roles such as strategy, regulation and infrastructure.

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Direct Line ordered to review five years of car claims after underpayments

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Insurer told to reassess vehicle write-offs to identify any unfair settlements

Britain’s second-biggest car insurer, Direct Line, has been ordered to go back through five years of claims after admitting it had underpaid some customers who had their cars and vans written off.

After an investigation into the car insurance market that began in December 2022, the Financial Conduct Authority (FCA), this week ordered Direct Line to conduct a review of claims where vehicles had been written off “to identify any policyholders who received unfair settlements and provide them with appropriate redress”.

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Councils in England hit by ‘unsustainable’ £450m bill for free bus passes

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LGA says services being put at risk by huge cost and calls way Whitehall funds scheme not fit for purpose

Councils in England are being hit by a “completely unsustainable” annual bill of more than £450m to prop up the free bus pass scheme, according to an analysis.

The Local Government Association (LGA), which calculated the figure, said the enormous cost was putting services at risk.

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Many high-street frappés contain more sugar than a Mars bar

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Which? finds some Starbucks, Costa Coffee and Caffè Nero coffees contain more sugar than recommended daily allowance

An iced coffee is a cool pick-me-up on a hot day, but it might not be the caffeine boosting your mood as many of the blends sold by well-known high street coffee chains contain more sugar than a Mars bar or can of Coke.

The consumer group Which? looked at the sugar load in frappés and Frappuccinos being served up this summer by three of the biggest coffee chains, Starbucks, Costa Coffee and Caffè Nero, and found many “regular” size drinks contained more than an adult’s recommended daily allowance.

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Influencer Dylan Mulvaney condemns Bud Light’s response to transphobia

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Trans social media star says company largely abandoned her amid bullying responses to beer promotion

Dylan Mulvaney has spoken out against Bud Light, criticizing the brand for not supporting her amid transphobic backlash to an advertisement featuring the influencer.

In a TikTok video captioned “Trans people like beer, too”, Mulvaney, who is trans, called out Bud Light for largely abandoning her after she was bullied for posting a sponsored video to Instagram with the beer brand.

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Thames Water could delay accounts as turmoil in water industry grows

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Firm refuses to say when it will publish annual report; pressure builds on regulator Ofwat

Thames Water has refused to say when it will publish its annual report and accounts, which had been expected by investors next week, as concerns mount over the company’s financial viability.

The risk of delay will add to the turmoil engulfing England’s 11 privatised water companies, after a day in which board directors, ministers and regulators scrambled to restore calm as discussions continued over a potential temporary nationalisation of Thames Water.

The Environment Agency (EA) announced it was sending specialist investigators into water companies across England to secure evidence in the biggest criminal investigation into illegal sewage dumping since privatisation.

The experienced City troubleshooter Sir Adrian Montague was parachuted in to take over as chairman of Thames, a role he will take up on 10 July.

The prime minister’s spokesperson said it was for Ofwat “in the first instance” to monitor the financial resilience of water companies, adding to pressure on the regulator.

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Guards at Del Monte pineapple farm in Kenya accused of killings

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An investigation by the Guardian and the Bureau of Investigative journalism has uncovered claims from villagers in Kenya of violence and even killings linked to guards on a Del Monte pineapple farm. Emily Dugan reports


Emily Dugan, a senior reporter with the Guardian who has been working on a story with the Bureau of Investigative Journalism for the past few months, tells Michael Safi how they uncovered claims from villagers living near Thika, in Kenya, of guards assaulting and killing people suspected of trespassing on one of the country’s biggest pineapple farms, owned by Del Monte.

The guards are typically armed with wooden clubs called rungus. Their use in security is legal and common in Kenya because of the risk of violent theft, including from young men who regularly go in organised groups to steal pineapples, but the claims suggest the guards’ use of violence has been excessive.

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Crown estate enjoys huge rise in profits thanks to offshore wind

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Fees for accessing UK seabeds help boost profits to £443m while King Charles says some of surplus will go towards public good

The crown estate has generated record profits of almost half a billion pounds from Britain’s offshore windfarms, as talks continue over how much of the windfall should be shared with King Charles.

The royal property manager made £443m in profits in its last financial year, up by almost £130m from the year before, in large part thanks to payments made by renewable energy companies for the right to access the seabed.

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Ofcom investigating BT after disruption to 999 emergency call service

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Telecoms firm, which manages 999 phone system, says it will publish findings of own inquiry on Thursday

The communications watchdog has launched an investigation into BT after technical faults hit the 999 emergency call service on Sunday.

Ofcom said it would look into the incident to find out whether the telecoms company failed to comply with its regulatory duties. Police forces, ambulance services and fire and rescue services across the UK asked people not to phone 999 on Sunday morning due to a “technical fault”.

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Water firms push for bills in England to rise by up to 40%, say reports

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Plans drawn up to pay for cost of dealing with sewage crisis and climate emergency

Water companies are reportedly pushing for bills in England to rise by up to 40% under plans being drawn up to pay for the cost of dealing with the sewage crisis and the climate emergency.

The increases are due to be announced next year and could drive annual bills up from an average of £450 to £680 in parts of the country by the end of the decade, according to a Times report citing consultation documents.

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Bank of England’s quantitative easing scheme let ‘inflation take root’

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UK economy became reliant on cheap money due to the Bank’s actions, warns former permanent secretary to the Treasury

The Bank of England’s quantitative easing money-printing programme enabled high inflation to take root in Britain, while creating “windfall gains” for the rich, a former Treasury mandarin has warned.

Nick Macpherson, who was permanent secretary to the Treasury under the last Labour government and during David Cameron’s premiership, said the central bank’s £895bn bond-buying stimulus programme had gone “too far” and made the inflation shock hitting Britain worse.

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