Brussels promises to cap price of Russian oil after Putin escalation

European Commission also proposes extra curbs on hi-tech trade as part of sanctions to ‘make Kremlin pay’ over Ukraine war

The EU executive has promised to cap the price of Russian oil and impose further curbs on hi-tech trade, as part of the latest round of sanctions to “make the Kremlin pay” for the escalation of the war against Ukraine.

The president of the European Commission, Ursula von der Leyen, said Russia had ramped up the invasion to “a new level”, listing the sham referendums in Russian-occupied territory, the partial mobilisation order and Vladimir Putin’s threat to use nuclear weapons. “We are determined to make the Kremlin pay for this further escalation,” she said.

Continue reading...

Truss ‘standing by Kwarteng’ as Treasury defends plans despite market turmoil – as it happened

No 10 says PM has faith in chancellor, as Treasury minister says tax cuts are the ‘right plan’. This blog is now closed

Q: When would you get debt falling as a proprotion of GDP?

Starmer says Labour does want to get that down.

Continue reading...

‘Great British Railways is dead’: rail industry at lowest ebb since the days of Railtrack

Grant Shapps ‘revolutionary’ GBR plan faces huge challenges

Barely 18 months have elapsed since a starry-eyed Grant Shapps unveiled the blueprint for a “revolutionary” Great British Railways, but it already has the flavour of an optimistic misnomer. Even an adequate British railway would be welcomed by those passengers stranded by everything from Avanti’s collapse to failing infrastructure and unprecedented strikes.

Only a fraction of the timetabled trains continue to run between London and Britain’s biggest cities, though operator Avanti has pledged to start its recovery to full service this week. National strikes, the likes of which had not been seen for 30 years, are now a regular occurrence, with little sign of breakthrough in talks. Infrastructure projects have been pared back or shelved, with the public all but gaslit with reannounced schemes for new railways.

Continue reading...

Homeowners warned of ‘significant’ rise in UK interest rates

Bank of England’s chief economist speaks out after mini-budget, with financial markets expecting rates to reach up to 6%

Britain’s homeowners have been warned to brace themselves for a “significant” increase in interest rates from the Bank of England in response to Kwasi Kwarteng’s tax-cutting mini-budget last week.

Huw Pill, Threadneedle Street’s chief economist, added to the concerns of millions of mortgage payers who have already seen hundreds of home loan products pulled by lenders in anticipation of a big increase in the cost of borrowing.

Continue reading...

Great British Energy: what is it, what would it do and how would it be funded?

The details behind Keir Starmer’s proposed publicly owned energy company when Labour take power

The key pledge of Keir Starmer’s Labour conference speech was the proposed launch of Great British Energy, a publicly owned energy company to invest in clean UK power as part of the party’s commitment to “fight the Tories on economic growth”. But how does it work, and is it the same as renationalising energy?

Continue reading...

‘Fiscal sustainability’ plus rising borrowing costs could add up to cuts

To make the sums work, some suggest Kwasi Kwarteng may include deep spending reductions in his medium-term fiscal plan

When Kwasi Kwarteng met City figures on Tuesday, the Treasury said he had “reiterated the government’s commitment to fiscal sustainability”: though the grim faces of attendees in the official photos suggested they may not have been terribly reassured.

Some analysts are now warning that with borrowing costs rising sharply, and the chancellor determined not to water down his radical tax plans, “fiscal sustainability” points to one thing: spending cuts.

Continue reading...

Apple shifts some iPhone 14 production from China to India

Move taken against background of China’s Covid lockdowns and geopolitical tensions between Beijing and Washington

Apple has begun making iPhone 14s in India, as it moves some production away from China for the first time against a backdrop of Chinese Covid-19 pandemic lockdowns and geopolitical tensions between the US and the country’s communist government.

A production line in Chennai has begun operation, assembling the iPhone 14 for the domestic Indian market. The move, which marks the first time the company has assembled iPhones outside of China in the same year they were released, is part of a plan to disentangle its manufacturing operations from the Chinese state.

Continue reading...

Terra founder wanted by Interpol tweets he is making ‘zero effort’ to hide

Search for crypto entrepreneur Do Kwon after Luna and UST collapse drags down rival currencies

The crypto entrepreneur Do Kwon has denied being in hiding, even as Interpol issued a “red notice” for his arrest after the collapse of the Terra project he founded.

After South Korean prosecutors said he was “obviously on the run”, Kwon tweeted that he was making no attempt to evade law officers. “I’m writing code in my living room … I’m making zero effort to hide,” he said. “I go on walks and malls, no way none of [crypto Twitter] hasn’t run into me the past couple weeks.”

Continue reading...

Keir Starmer promises to launch publicly-owned UK energy company as he hails ‘Labour moment’ – UK politics live

Latest updates: the Labour party leader used his conference speech to spell out his plan for the UK

The decision to pay Liz Truss’s new chief of staff, Mark Fullbrook, through a private company has been dropped after criticism from within the Conservatives as well as from opposition parties.

The government admitted over the weekend that Fullbrook would be paid through his lobbying firm, a move that could have helped him avoid paying tax. He had previously claimed the firm had stopped all commercial activities.

The world we are heading for is a bumpy few weeks. The chancellor is now going to have quite a tough time because he has now set out plans to balance the books in November. That is going to be very hard.

Actually balancing the books in November is going to be harder than it would have been to show you are balancing the books last week because higher interest rates will make it harder to do. You might need £15bn worth of tough choices now that you didn’t need last Friday.

In the end, lower taxes will mean worse public services, or other people’s taxes having to go up, and it is those choices and ducking those choices that markets are looking at and saying that is not what serious policymaking looks like.

Continue reading...

Labour says financial turmoil is ‘just the tip of the iceberg’

Shadow health secretary condemns Kwasi Kwarteng’s ‘reckless gamble’ and says Labour ‘cavalry is coming’

The shadow health secretary, Wes Streeting, has said the “cavalry is coming” with the Labour party as he warned that the current turmoil on financial markets was “just the tip of the iceberg”.

Streeting criticised last week’s mini-budget from the chancellor, Kwasi Kwarteng, as a “reckless gamble”.

Continue reading...

China growth lags Asia-Pacific for first time in decades as World Bank cuts outlook

East Asia and Pacific annual growth forecasts downgraded from 5% to 3.2% as China’s economy cools, largely due to zero-Covid policy

Covid-zero policies and the housing market crisis have put China’s economic growth behind the rest of the Asia-Pacific region for the first time in more than 30 years, according to World Bank forecasts.

In a biannual report released on Tuesday, the US-based institution said the annual growth outlook for East Asia and the Pacific region had been downgraded from 5% to 3.2%. However much of that decline was down to economic woes in China, which constitute’s 86% of the region’s economic output.

Continue reading...

Australia’s financial sector will pay customers $7.2bn for wrongdoing, regulator says

Australian Securities and Investments Commission issues guide for paying compensation and tells companies to pay up quickly

The compensation banks and other financial institutions will pay as a result of their wrongdoing towards customers will reach $7.2bn, the corporate regulator says.

The deputy chair of the Australian Securities and Investments Commission, Karen Chester, said the regulator wanted to stop its hands-on involvement in remediation schemes – a program that’s been under way since the mid-2010s, when widespread misconduct in the sector was first uncovered.

Sign up to receive an email with the top stories from Guardian Australia every morning

Continue reading...

Bumper City bonuses expected from takeover frenzy after pound hits record low

UK firms now temptingly cheaper, with a ‘wave of bids’ from overseas buyers meaning payouts for bankers

Bankers could rake in bumper bonuses from a “wave of bids” by overseas buyers for UK businesses made temptingly cheaper as a result of the plunge in the pound against the dollar. A fresh frenzy of merger and acquisition activity would mean a ramp-up in payouts for City dealmakers.

Sterling fell by nearly 5% at one point on Monday to $1.0327, its lowest since Britain went decimal in 1971. The currency has fallen by more than a fifth against the dollar this year.

Continue reading...

Weak controls failing to stop illegal seafood landing on EU plates, investigation shows

EU financial watchdog blames small fines and feeble controls in some states for amount of illegal seafood


Illegally fished seafood continues to end up on the plates of EU citizens due to weak controls and insignificant fines in some member states, auditors have found.

The European Union, the world’s largest importer of fishery products, requires member states to take action against fishing vessels and EU nationals engaged in illegal fishing activities anywhere in the world.

Continue reading...

Labour delegates urged to back PR to end ‘trickle-down democracy’ – UK politics live

Latest updates: Labour delegate says current electoral system allows Tories to get away with measures like ‘protecting bankers’ bonuses’

In June, as the RMT union launched what has become an ongoing series of strikes, Keir Starmer ordered Labour frontbenchers and shadow ministerial aides not to join picket lines. This infuriated leftwing Labour MPs and some union leaders, notably Sharon Graham, the general secretary of Unite.

At one point it looked as if there might be a huge row at conference about whether shadow ministers should or should not be allowed to join picket lines. But, in an interview with the Today programme this morning, Graham suggested that a truce of sorts has been agreed – even if the two sides do not entirely see eye to eye.

My issue about this … isn’t necessarily around one person on a picket line because, quite frankly, that isn’t the issue. The issue is the mood music [ordering shadow ministers not to join picket lines] suggests. It suggests a mood music that being on the picket line is somehow a bad thing. It’s a naughty step situation.

The party who is there to stick up for workers should not give the impression – that’s the problem, it gives the impression – that they are saying picket lines are not the place to be. And I think that it was unfortunate. I think it was a mistake. I think, to be honest with you, Labour knows it was a mistake. And I don’t actually think it’s holdable.

When people go on strike it is a last resort at the end of negotiations. And I can quite understand how people are driven to that … I support the right of individuals to go on strike, I support the trade unions doing the job that they are doing in representing their members.

I’m incredibly disappointed that as delegates we’ve been excluded from this key part of the conference’s democratic process.

This is an unprecedented move silencing members’ voices. Our CLP sent us here to Liverpool to promote our motion on public ownership and a Green New Deal, but we’ve been unfairly denied that right.

Continue reading...

Sterling slides back towards record low despite Bank of England and Treasury attempts to reassure markets – business live

Bank of England issues statement saying it ‘will not hesitate’ to change interest rate but has not implemented an emergency rise

We’ve now reached the point where the Bank of England needs to step in in order to regain the initiative, warns Paul Dales of Capital Economics.

Dales says governor Andrew Bailey has two options.

That could involve something like a 100bps or 150bps hike in interest rates (to 3.25%/3.75%), perhaps as soon as this morning.

By bringing forward a lot of the policy tightening that might needed to have happened anyway, the Bank would demonstrate in no uncertain terms that whatever the government does it will ensure that inflation returns to 2%. This would go a long way to easing the crisis.

“The bank, and indeed the Government, have indicated that they are going to take their next decision in November and publish forecasts and, so on that point, the worry is that they may have to take action a bit sooner than that.”

Continue reading...

City sceptical about benefits of scrapping cap on banker bonuses

Sources at largest banks say the did not lobby for move nor expect it to result in major changes to pay packets

When City of London executives were summoned to No 11 Downing Street earlier this month, they were promised reforms that would boost growth, attract talented bankers and usher a new era of prosperity for financial services.

But what the chancellor, Kwasi Kwarteng, failed to mention to bank bosses was that their pay would become a lightning rod for controversy in the mini-budget that followed.

Continue reading...

Nord Stream 2 pipeline pressure collapses mysteriously overnight

German authorities have ‘no clarity’ as they try to establish if Russian-owned undersea gas line has leak

Authorities in Germany are trying to establish what caused a sudden drop in pressure in the defunct Nord Stream 2 gas pipeline, with a spokesperson for its operator saying it could have been a leak.

The pipeline has been one of the flashpoints in an escalating energy war between Europe and Moscow since Russia’s invasion of Ukraine in February that has pummelled western economies and sent gas prices soaring.

Continue reading...

Clare O’Neil suggests Labor may legislate fines after Optus data breach – as it happened

The Nationals want to get back to their roots – the regions.

The country party are launching a “regional listening tour” to find out what is affecting people in the country.

Migration is not the only solution to the challenges our regions are up against,” Littleproud said.

We need to look at what can be done now to help those Australians that are already in town.

We know distance is one of the greatest barriers to opportunity. So we’re coming to your town to create this opportunity to share your concerns and help us come up with the solutions.

For example, would a Regional University Centre stop our children from leaving town? Or could paying their HELP debts be the incentive they need to stay where we need them?

Continue reading...

Cost of using electric car charging point in UK up 42% since May

Soaring energy prices after invasion of Ukraine have added almost £10 to cost of charging family-sized car, says RAC

The price of charging an electric car using a public rapid charger has jumped by almost £10 since May because of soaring energy costs after Russia’s invasion of Ukraine.

The increased price of wholesale gas and electricity has pushed up the price to charge an average family-size car by 42% to above £32, according to analysis by the RAC. That was £9.60 more than in May, and £13.59 more than a year earlier.

Continue reading...