Australian restaurants on a knife edge as inflation bites and food costs soar

Hospitality businesses adapt menus and cut staff hours amid cost-of-living pressures

Restaurants and cafes are constantly adapting their menus to try to mitigate the rising cost of produce and cutting staff hours, as inflation hits profit margins in the hospitality sector.

Jackie Middleton, who co-owns Earl Canteen, a small sandwich chain in Melbourne, and Dame, a high-end cafe on Collins Street, says not a single day goes by when she doesn’t get an email saying the price of a product has increased.

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Warning Dover port chaos could spill into weekend as queues last six hours

Kent port apologises for delays and blames French border control as summer getaway kicks off

Holidaymakers have been warned chaos that triggered six-hour queues at Dover could spill into the weekend, after the port declared a “critical incident” that it blamed on “woefully inadequate” French border control staffing.

The Kent port apologised to travellers facing long waits to cross the Channel on an extremely busy day for travel across the UK, as schools across England and Wales break up for the holidays.

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Ukraine and Russia sign UN-backed deal to restart grain exports

Shipping of millions of tonnes from blockaded Black Sea ports could avert global food crisis

Ukraine and Russia have signed a UN-backed deal to allow the export of millions of tonnes of grain from blockaded Black Sea ports, potentially averting the threat of a catastrophic global food crisis.

A signing ceremony at Dolmabahçe Palace in Istanbul was attended by the UN secretary general, António Guterres, and Recep Tayyip Erdoğan, Turkey’s president, who had played a key role during months of tense negotiations.

A coalition of Turkish, Ukrainian and UN staff will monitor the loading of grain on to vessels in Ukrainian ports before navigating a pre-planned route through the Black Sea, which remains heavily mined by Ukrainian and Russian forces.

Ukrainian pilot vessels will guide commercial vessels transporting the grain in order to navigate the mined areas around the coastline using a map of safe channels provided by the Ukrainian side.

The vessels will then cross the Black Sea towards Turkey’s Bosphorus strait while being closely monitored by a joint coordination centre in Istanbul, containing representatives from the UN, Ukraine, Russia and Turkey.

Ships entering Ukraine will be inspected under the supervision of the same joint coordination centre to ensure they are not carrying weapons or items that could be used to attack the Ukrainian side.

The Russian and Ukrainian sides have agreed to withhold attacks on any of the commercial vessels or ports engaged in the initiative to transport vital grain, while UN and Turkish monitors will be present in Ukrainian ports in order to demarcate areas protected by the accord.

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Prices fall as UK heatwave produces glut of soft fruit

Yields of cherries, strawberries and blueberries could more than double on the same time last year

The UK heatwave has produced a glut in strawberry, cherry and blueberry harvests prompting a wave of discounts in stores and lower prices for British farmers.

Strawberry farmers said they were picking as much as 30% more fruit than usual, and blueberry growers at least 50% more this week as temperatures topped 40C on Tuesday in some parts of England. Yields are expected to be double that of the same week last year in the week ahead. Blackberry harvests are expected to be up 80% on the same time last year this week according to the British Berry Growers association.

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Co-op Group to cut 400 jobs at Manchester head office

The group blamed rising inflation for job losses as it vows to protect shoppers from higher prices

The Co-op Group is cutting 400 jobs at its head office in Manchester as the retailer said it faced tough trading conditions amid rising inflation.

The job cuts come after the Co-op, which employs more than 63,000 people including 4,000 at its head offices, warned in April of continuing problems with food supplies and inflation after its annual profits more than halved amid supply chain disruption and higher staff wages.

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Russian sponsorship row overshadows opening of Salzburg festival

The festival defends decision not to cancel Teodor Currentzis’s appearance despite links to ‘Putin’s private bank’

The official opening of one of the world’s leading classical music festivals is being overshadowed by the appearance of a conductor whose orchestra and choir are funded by a bank controlled by the Russian government.

Cultural commentators have described Austria’s Salzburg festival, which is also receiving sponsorship money from a foundation with close ties to the Kremlin, of being in the grip of Vladimir Putin’s influence. Along with other classical music events in the region, they argue it has turned itself into a paradise for dubious and often intransparent cultural-corporate partnerships, referred to as “toxic sponsorship”.

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Shares in Snapchat owner slump 25% amid slowdown in ad revenue

Parent company Snap talks of ‘incredibly challenging’ conditions as it seeks new sources of revenue

Shares in Snapchat’s parent company have fallen 25% after it confirmed investors’ fears of a slowdown in advertising revenue for social media firms.

Snap painted a grim picture of the effects of a weakening economy on social media in quarterly results on Thursday and declined to make a revenue forecast in “incredibly challenging” conditions, hitting its share price in after hours trading and setting off a chain reaction among listed rivals.

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Government establishes new measures at airports to stop FMD; 63 Covid deaths – as it happened

US ambassador arrives in Australia

The new US ambassador to Australia, Caroline Kennedy, has arrived this morning and told the media she feels “lucky … to serve here and to live here.”

There’s a big agenda and I can’t wait to get started. Personally this means a great deal to me. My my husband is here with me. We first came to Australia on our honeymoon 36 years ago, almost exactly, because three days ago was our anniversary. Then we are were fortunate to come back with our children when we were in Japan. So we met so many wonderful people and I can’t believe that I’m lucky enough to get a chance to serve here and to live here and get to know even more people.

The weather and staff shortages were all worse than expected.

We are doing the best we can – the show will go on rain, hail or shine.

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Tory leadership race: Rishi Sunak calls himself ‘common sense’ Thatcherite – as it happened

Former chancellor says UK ‘needs to control borders’ and again references Margaret Thatcher

In an interview with GB News, Liz Truss was asked if she would keep the expensive wallpaper in the Downing Street flat, installed as part of Boris Johnson’s controversial refurbishment, if she became PM. In what is being seen by some as a dig at Johnson, she replied:

I’m not going to have the time to be thinking about the wallpaper in No 10, because we’ve only got two years until the general election – we need to hit the ground running.

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Liz Truss’s tax and spending plans sow consternation among economists

Analysis: experts are lining up to warn that her policies will increase inflation and leave the UK with higher debt

Liz Truss claims her economic agenda of tax cuts and public spending will revitalise the UK economy, but it is not just her rival prime ministerial candidate Rishi Sunak arguing that the measures will be self-defeating.

Economists have lined up to warn that her £30bn package – including the reversal of this year’s national insurance rise, the suspension of green levies on power bills, and the cancellation of a sharp rise in corporation tax in 2023 – will increase inflation and leave the government with higher debt bills.

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Former US Coinbase employee and two others charged with insider trading

Cryptocurrency exchange manager and his brother arrested in Seattle in what is described as the first case of its kind

A former Coinbase employee and two others have been charged in what federal authorities described as the US government’s first cryptocurrency insider trading case.

Ishan Wahi, a product manager at the cryptocurrency exchange, and his brother Nikhil Wahi were arrested in Seattle on Thursday. They and a third defendant, their friend Sameer Ramani, who remains at large, also face civil charges from the US financial watchdog, the Securities and Exchange Commission (SEC).

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Labor resists calls to close border to Indonesia after foot-and-mouth viral fragments detected in SA

Agriculture minister Murray Watt says federal government confident new biosecurity measures enough to protect livestock industry

The federal government is resisting calls to close Australia’s border to Indonesia over the foot-and-mouth disease threat, after more fragments of the potentially devastating livestock virus were detected in South Australia.

The agriculture minister, Murray Watt, said he was confident that new federal biosecurity measures would be sufficient to keep out foot-and-mouth disease, which could threaten Australia’s entire meat industry, as farmers call on the government to not overreact.

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Rise in insurance fraud fuelled by cost of living crisis, says UK insurer

Zurich UK says fraudulent property claims from 1 January to 31 May 25% higher than in same period in 2021

A growing number of financially squeezed households are “turning to crime” by submitting bogus insurance claims, with data revealing a sharp rise in cases over the past year.

Zurich UK, one of Britain’s biggest insurers, said the cost of living crisis was fuelling the increase in insurance fraud, where people exaggerate or make up claims for items such as jewellery and electrical goods.

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Tesla sells 75% of its bitcoin as profits slump due to production challenges

CEO Elon Musk said the cryptocurrency sale was to maximize its cash position only, but prices still slid after Wednesday’s report

Tesla’s second quarter of 2022 came to a shaky end as the electric carmaker reported a drop in profit after it struggled to meet demand due to a shutdown of its Shanghai factory and production challenges at new plants. The company also sold 75% of its bitcoin holdings, leading to a slide in the cryptocurrency price.

Tesla’s second-quarter profit fell 32% from record levels in the first quarter, with the company reporting a $2.26bn net profit on Wednesday.

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EU urges member states to slash gas use by 15% to counter ‘Russian blackmail’

Call for voluntary cut until March 2023 with binding reduction targets possible when Moscow ‘likely’ halts supplies

The European Union’s executive body has urged member states to slash their gas consumption by 15%, as it warned that a complete shutdown of Russian supplies was “likely”.

The EU has been scrambling to wean itself off Russian gas since the invasion of Ukraine, but is alarmed about a potential energy crisis this winter.

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Indonesian islanders sue cement producer for climate damages

Claimants say they are experiencing serious negative impacts and demand Swiss-based Holcim pay compensation

Residents of an Indonesian island threatened by rising sea levels have begun legal action against the cement producer Holcim.

The claim for compensation, filed in Switzerland by three men and one woman, is understood to be the first major climate damages lawsuit against a cement company.

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Mortgage holders should brace for short-term pain as RBA signals steady interest rate rises to tackle inflation

Philip Lowe says reserve bank looking for its ‘neutral rate’ which could see cash rate almost double in coming months

Mortgage holders should brace themselves for interest rate rises of at least another 1.15 percentage points before the end of the year as the Reserve Bank of Australia attempts to hose down inflation before it takes hold of the economy.

The RBA governor, Philip Lowe, said he believed inflation was on track to hit 7% by the end of 2022, with an unemployment rate of 3.5% but said the bank was confident inflation would return to the “target range” of between 2% and 3% in a “short while”.

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UK inflation hits fresh 40-year high of 9.4% as fuel prices rise

Annual rate in June up from May’s 9.1% figure and exceeds analysts’ expectations

Rising petrol and diesel prices for motorists and dearer food pushed Britain’s annual inflation rate to a fresh 40-year high of 9.4% last month.

Figures from the Office for National Statistics showed the government’s preferred measure of the cost of living – the consumer prices index – was up from May’s 9.1% figure.

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Rising costs pose threat to independent film-making in UK, says BFI

Indie productions struggling to compete with well-financed, studio-backed projects, research shows

There are serious questions about the long-term viability of independent film-making in Britain, the British Film Institute (BFI) has said.

Making Oscar-winning films such as The King’s Speech and Slumdog Millionaire has become all the more difficult, with “significant challenges” putting the sector on a downward trend, research shows.

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Mortgage holders could face large jump in repayments if interest rates increase by 3%, RBA says

Deputy reserve bank governor, Michele Bullock, says most Australians are ‘well placed’ to absorb impact of rate rises

Up to 30% of mortgage holders could struggle to keep up with their home repayments if interest rates were to increase by 3%, according to the Reserve Bank of Australia, which says first-home owners, late entrants to the market and low-income loan holders are most at risk.

With the bulk of low fixed-rate loans due to expire in the next two years, about half of those coming into the new variable market will face increases in their repayments of at least 40%. For those whose fixed loans expire in the middle of next year, the reserve bank estimates a median increase of about $650 a month in repayments, or a 45% increase.

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