End of the road for Ford Fiesta: UK’s all-time bestselling car halts production

Owners mourn ‘modern-day classic’ as last factory in Germany switches to new electric models

“I don’t know what I’d go for if I didn’t have the Fiesta,” said Karen Fox, a civil servant in Edinburgh. She is due to pick up her fourth version of the model on Saturday, but it is likely to be her last: Ford on Wednesday confirmed it will end production of the UK’s all-time bestselling car next June.

The model’s end will become only the latest symbol of the shift from internal combustion engines to batteries: the factory in Cologne, Germany, where the last Fiestas are being made will switch to producing two new electric models.

Continue reading...

Bank of England left in the dark ahead of new interest rate decision

With fiscal statement deferred and mixed government messaging on tax and spending the BoE has little to go on

The Bank of England will next week consider how much to raise interest rates without having received any guidance from the government about its tax and spending policies, after Jeremy Hunt pushed back the date for this year’s “autumn statement”.

Its policymakers meet on 3 November to decide the increase in the cost of borrowing required to tackle a rate of inflation that climbed above 10% in September.

Continue reading...

Heathrow passengers may have to fly outside peak times in run-up to Christmas

Airport still has shortage of 25,000 staff and is keen to avoid disruption of summer

Heathrow has said passengers may have to fly outside peak times on some days in the run-up to Christmas to avoid further travel chaos, as Europe’s busiest airport admitted it is still short of 25,000 staff to meet high demand.

The airport, which this Sunday is due to lift the current cap of 100,000 passengers a day that was introduced in July as summer holiday travel descended into chaos, said it was in talks with airlines over the selective cap.

Continue reading...

US mortgage rates hit 21-year high as Fed action weighs on housing sector

Average interest rate on 30-year fixed-rate mortgage rose by 22 basis points to 7.16% last week

The average interest rate on the most popular US home loan rose to its highest level since 2001 as tightening financial conditions weigh on the housing sector, data from the Mortgage Bankers Association (MBA) showed on Wednesday.

The average contract rate on a 30-year fixed-rate mortgage rose by 22 basis points to 7.16% for the week ended October 21 while the MBA’s Market Composite Index, a measure of mortgage loan application volume, fell 1.7% from a week earlier. Mortgage application activity is at its slowest pace since 1997.

Continue reading...

Wealth taxes could raise £37bn for UK public services, campaigners say

Tax Justice UK calls on Rishi Sunak’s government to introduce five reforms targeting the richest people

Rishi Sunak’s new government could raise up to £37bn to help pay for public services and the energy bills support scheme if it introduced a string of “wealth taxes”, according to tax equality campaigners.

Tax Justice UK called on the government to introduce five tax reforms targeting the very wealthy, who the campaign group said had done “really well financially” during the coronavirus crisis and national lockdowns, rather than seek to save money with further cuts to public services.

Equalising capital gains tax with income tax could raise up to £14bn a year. At present many well-paid people collect their salaries via sole trader or business partnership companies, and can pay capital gains tax at a rate of 20% rather than income tax, which is as high as 45% for earnings over £150,000. CGT also applies to income from renting out a second home, and dividend income on stocks and shares.

Applying national insurance to investment income could raise £8.6bn.

Closing loopholes on inheritance tax could raise £1.4bn.

Scrapping the non-dom regime and taxing their offshore income could generate £3.2bn.

And introducing a 1% tax on super-rich people’s assets over £10m could raise an additional £10bn.

Continue reading...

Republicans want working-class voters — without actually supporting workers

GOP courts blue collar voters but most favor anti-union ‘right to work’ laws and reject laws that would protect right to organize

After years of struggle, America’s labor unions enjoy greater public approval than at any time in more than 50 years. Yet even as the Republican party seeks to rebrand itself as the party of the working class, its lawmakers, by and large, remain as hostile as ever toward organized labor. It doesn’t look like that situation is about to change.

With the midterm elections approaching, and many polls indicating that the Republicans will win control of the House, nearly all Republican lawmakers in Congress oppose proposals that would make it easier to unionize. One hundred and eleven Republican House members and 21 senators are co-sponsoring a bill that would weaken unions by letting workers in all 50 states opt out of paying any fees to the unions that represent them. And at a time when many young workers – among them, Starbucks workers, Apple store workers, museum workers, grad students – are flocking into unions, Republican lawmakers often deride unions as woke, leftwing and obsolete.

Continue reading...

Tory backer says UK economy is ‘frankly doomed’ without Brexit renegotiation

Guy Hands says Conservatives are putting country ‘on a path to be sick man of Europe’

The billionaire businessman Guy Hands has accused the Conservatives of putting the UK “on a path to be the sick man of Europe”, as he issued a series of stark predictions about what could lie ahead for the post-Brexit economy, including higher taxes and interest rates and fewer social services.

The founder and chair of the private equity firm Terra Firma, a longtime Tory supporter, called for the government to renegotiate Brexit, stating that otherwise the British economy was “frankly doomed”.

Continue reading...

Outsourcer Interserve fined £4.4m for failing to stop cyber-attack

Watchdog says phishing email enabled hackers to steal personal information of 113,000 employees

Britain’s data watchdog has fined the construction group Interserve £4.4m after a cyber-attack that enabled hackers to steal the personal and financial information of up to 113,000 employees.

The attack occurred when Interserve ran an outsourcing business and was designated a “strategic supplier to the government with clients including the Ministry of Defence”. Bank account details, national insurance numbers, ethnic origin, sexual orientation and religion were among the personal information compromised.

Continue reading...

Starmer ‘should bring in workplace pension for the self-employed’

Fabian Society also says Labour needs to be radical and introduce better provision for the lowest paid

Sir Keir Starmer should promise that a future Labour government would introduce a new workplace pension for self-employed workers and more generous retirement provision for the low paid, a leading left-of-centre thinktank has said.

Calling for the biggest shake-up of the pensions’ system in two decades, the Fabian Society said Labour needed to copy the radical approach of the Turner Commission two decades ago, which encouraged saving through opt-out schemes.

Increasing the minimum contributions for workplace auto-enrolment pensions to 12% of total earnings from the current 8%. This would be done by phasing in higher contributions from employers over time.

The introduction of new pension credits for carers, who are primarily women, to reduce the “gender pensions gap”

Changes to how people access pensions at retirement so that separate pensions are automatically consolidated into a single fund and then converted into new whole-of-retirement pension plans designed to increase with inflation.

Continue reading...

Rishi Sunak enters race to replace Liz Truss as UK prime minister

Ex-chancellor announces candidacy for Tory leadership contest as allies of Boris Johnson say he is planning to run

Rishi Sunak has won the backing of former rival Suella Braverman as he formally declared he would stand to be Conservative leader, while allies of Boris Johnson said he was still planning to run.

The former chancellor announced his candidacy on Twitter, after coming second in the previous contest against Liz Truss.

Continue reading...

Frasers builds 5% stake in Asos to become fourth-largest investor

Mike Ashley’s increased holding comes after online retailer reported slowing sales and full-year loss

The billionaire retailer Mike Ashley has built up a stake of more than 5% in the online fashion retailer Asos.

His fashion and sportswear retailer Frasers Group informed Asos on Friday that it had become one of the company’s most signifiant shareholders.

Continue reading...

Peak power: hydrogen to be injected into UK station for first time

Exclusive: Joint venture with Centrica is aimed ultimately at reducing carbon intensity at the site

Hydrogen will be injected into an emergency gas-fired power station for the first time in a pilot backed by the owner of British Gas.

Centrica has invested in an industry joint venture which will trial using hydrogen at an existing “peaking plant” at its Brigg station in Lincolnshire, the Guardian can reveal.

Continue reading...

Rocketing costs and drop in ticket sales force musicians to pull tour dates

Animal Collective, Bonobo and Mercury prize winner Little Simz among acts to cancel concerts

Musicians are cancelling concerts and entire tours because the rising costs of staff and materials coupled with a drop off in ticket sales is making them too expensive to run.

Earlier this month, US band Animal Collective cancelled forthcoming European dates as“not sustainable”. Within days, the UK downtempo producer Bonobo called time on future live shows in America, describing them as “exponentially expensive”. Then electronic musician Tourist rescheduled a US stint, saying “sometimes tickets just don’t get sold”.

Continue reading...

Business racing to use facial recognition technology, raising concerns the law is too slow to catch up

Clubs NSW says the scheme will be used to combat problem gambling, but experts warn of a lack of safeguards and regulation

The rollout of facial recognition technology in all New South Wales pubs and clubs shows how business is forging ahead collecting biometric information before the law has had a chance to catch up, experts warn.

The NSW government this week introduced new laws allowing the use of facial recognition throughout pubs and clubs, despite not yet developing rules to guide the rollout.

Sign up for our free morning newsletter and afternoon email to get your daily news roundup

Continue reading...

UK economic outlook downgraded to ‘negative’ by rating agency

Moody’s say downgrade from ‘stable’ was driven by political instability and high inflation

The UK’s economic outlook has been downgraded from “stable” to “negative” by the rating agency Moody’s because of political instability and high inflation.

Moody’s said the change in outlook was driven by “heightened unpredictability in policymaking amid weaker growth prospects and high inflation” and “risks to the UK’s debt affordability from likely higher borrowing and risk of a sustained weakening in policy credibility”.

Continue reading...

Great save? Lower league clubs mull early kick-offs to cut energy bills

With budgets always tight some smaller football clubs are looking to offset their soaring power costs

Shrewsbury Town’s fans had long since filed out of the Montgomery Waters Meadow stadium after the defender Chey Dunkley had scored an injury-time winner against Exeter, when Brian Caldwell looked angrily skyward. The League One club’s chief executive was unimpressed to see the ground’s floodlights still burning bright.

Caldwell is among the football executives trying to limit the financial pain from huge energy bills. Faced with an even bigger surge in his annual costs, Caldwell was forced to settle for a £100,000 increase, to £180,000, when signing a new energy contract in April. “It’s a massive dent in our finances. Football clubs are not normal businesses, they’re set up to break even and put the money you can into the playing budget,” he said.

Continue reading...

After eight rounds, is there space for further EU sanctions on Russia?

Baltic states and Poland have a long shopping list, but host of others seen as cautious of new measures

Russia-Ukraine war – latest news updates

Since Vladimir Putin launched his invasion of Ukraine, Russia has been subjected to the heaviest sanctions of any country in the world.

A fossil fuel superpower, Russia is no longer able to export coal to the European Union and will soon lose 90% of its oil sales to the bloc. In the other direction, the EU has banned the export of hundreds of goods to Russia, from hi-tech military kit and semiconductors that could aid Russia’s military, to makeup, handbags and clothes that may turn a handsome profit for Russian entrepreneurs.

Continue reading...

UK energy suppliers ask Rees-Mogg to reverse part of bill granting new powers

Companies including EDF, Centrica and Octopus express ‘alarm’ over bill allowing ministers to overrule Ofgem

The UK’s big energy suppliers have urged the government to reverse part of its energy prices bill, saying it grants “extensive” new powers to ministers and puts billions of pounds worth of investment in jeopardy.

The bill, which is making its way through parliament, was introduced as part of efforts to reduce household costs and address the broader energy crisis.

Continue reading...

Barclays could be fined £50m for failing to disclose 2008 Qatari deal

Provisional fine relates to £322m bank paid to Gulf state allegedly in exchange for £4bn investment to save lender from bailout

The City watchdog could fine Barclays up to £50m for failing to disclose a deal struck with Qatar at the height of the financial crisis, reviving a controversial episode that failed to gain traction in UK courts.

The provisional fine – which Barclays is in the process of appealing against – relates to the £322m the bank paid to Qatar in 2008, allegedly in exchange for the gas-rich Gulf state investing £4bn, helping save the lender from a UK government bailout.

Continue reading...

Australia’s jobless rate is steady as she goes – and so too is the economy

Unemployment has come in at 3.5% for the second month in a row. That’s good news for economic growth – if people have jobs, they’re more likely to spend

September’s jobless figures may have remained steady, but a deeper dive shows the seemingly dull and inert data is worth a closer look.

The labour market numbers from the Australian Bureau of Statistics are, on the face of it, almost as steady as is statistically feasible.

Continue reading...