Category Archives: Business

Why does the UK have the highest inflation in the G7?

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Analysis: UK among hardest-hit countries thanks to perfect storm of war in Ukraine, Covid and Brexit

Britain’s inflation rate has soared to the highest level since the early 1980s. After a record increase in gas and electricity bills in April, inflation is the highest in the G7. Having reached 9% last month, it is above the 8.3% rate in the US and Germany’s reading of 7.4%. Japan, an economy characterised by low inflation for decades thanks to an ageing population, has the lowest rate at 1.2%.

Here are some of the reasons why prices are rising faster in the UK than in other major economies.

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UK pub chains warn of price rises due to increase in food and fuel costs

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Marston’s phases out ‘two-for-one’ meal offer while Mitchells & Butlers increases prices to cope with rising costs of utilities, wages and food

Two of Britain’s largest pub groups have warned that punters may have to pay more for a meal and see fewer discounts on the menu as they struggle to absorb rising energy and food costs.

The pub and restaurant group Mitchells & Butlers, which runs pub chains including O’Neill’s and restaurant brands such as Harvester, said it was facing a difficult trading environment. Its rival Marston’s said it was working to mitigate inflationary rises through a combination of cost-cutting and “pricing strategies”.

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UK must accept border on Irish Sea is inevitable, says ex-WTO chief

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Pascal Lamy says row is solvable if PM stops using emotional Brexit politics to solve ‘technical problem’

Boris Johnson’s row with the EU over Northern Ireland’s Brexit arrangements is “absolutely solvable” but only if the UK accepts that a border is inevitable, the former head of the World Trade Organization has said.

But Pascal Lamy said the prime minister could only achieve a breakthrough if he stopped mixing “oil and vinegar” and throwing emotional Brexit politics on to what he said was essentially a technical problem.

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EU plans ‘massive’ increase in green energy to help end reliance on Russia

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European Commission says extra €210bn needed over next five years to pay for phasing out of Russian fossil fuels

The EU plans a “massive” increase in solar and wind power, and a short-term boost for coal, to end its reliance on Russian oil and gas as fast as possible.

In a plan outlined on Wednesday, the European Commission said the EU needed to find an extra €210bn (£178bn) over the next five years to pay for phasing out Russian fossil fuels and speeding up the switch to green energy.

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US sues casino mogul Steve Wynn to compel him to register as an agent of China

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Justice department says Wynn lobbied the Trump administration for China to protect his business interests in Macau

The US Department of Justice on Tuesday sued Steve Wynn, the billionaire former casino mogul and senior Republican fund raiser, to compel him to register under the Foreign Agents Registration Act as an agent of China.

The department said Wynn, 80, had contacted then-US president Donald Trump and members of his Republican administration in 2017 to convey China’s request to cancel the visa of or otherwise remove a Chinese businessperson who had sought political asylum in the United States.

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Ukraine farming group calls for urgent end to ports blockade

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Group warns of ‘cascade of export bans’ amid failure to ease grain bottlenecks fuelling shortages and inflation, MHP said

One of Ukraine’s largest farming groups has called for an urgent solution to unblock the country’s Black Sea ports as exports of grain, sunflower and rapeseed are being held up by the Russian naval blockade, driving inflation and shortages around the world.

G7 ministers have held urgent talks about trying to open routes through Romanian and Baltic ports, potentially fed with an army of 10,000 trucks making a five-day trip from Ukraine.

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Mexican farmers demand redress for illegal mining and violence on their land

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Owners of community land bought shares to join annual meeting of Fresnillo, a Mexican FTSE 100 company

Mexican farmers have travelled to London to demand that a FTSE 100 company compensates them for illegal mining on their land and explain violence against anti-mining activists.

Penmont mining, a subsidiary of Fresnillo, was ordered by an agrarian court in Mexico in 2013 to pay members of El Bajío community, co-owners of common land in Sonora, north-west Mexico, for the gold extracted and to restore the land to its original state.

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UK to table bill to scrap Northern Ireland Brexit protocol, Liz Truss says

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Foreign secretary confirms plans to ditch parts of deal, saying Good Friday agreement ‘under strain’

Liz Truss has claimed the east-west relationship between Great Britain and Northern Ireland has been “undermined” by the Northern Ireland protocol, as she confirmed plans to table legislation that would scrap parts of the agreement.

The UK foreign secretary, who is also responsible for Brexit, set out plans for the move in a statement in the House of Commons. The bill is not expected to be published for several weeks, but if enacted could spark a trade war with the EU.

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M&S chair attacks ‘pointless’ post-Brexit rules for Northern Ireland

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Archie Norman backs UK plans to scrap parts of protocol, saying lorries require ‘700 pages of documents’

The chairman of Marks & Spencer has backed government plans to override parts of the Northern Ireland protocol, saying that some food exported south of the border now requires 700 pages of customs documents, partly written in Latin.

Archie Norman, a former Conservative MP, called on the UK government and EU to come to an agreement, saying the rules for sending food between them were “highly bureaucratic and pretty pointless” given that British food standards were in line with or higher than those of Brussels.

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Elon Musk: Twitter deal cannot progress without proof on bot numbers

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Tesla CEO and world’s richest person expressed concerns about presence of fake accounts on platform

Elon Musk has cast further doubt over his $44bn (£35bn) takeover of Twitter after stating the deal “cannot move forward” until the social media company proves that less than 5% of its users are fake or spam accounts.

The Tesla chief executive used his Twitter account to say the agreed deal would not progress until the firm showed proof that only a small proportion of its users were fake.

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Industry call for Australia to ‘unlock wealth’ of new oil and gas fields at odds with IEA warning

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Increasing supply is ‘absolutely part of the solution’ to decarbonising the economy, Appea chair tells conference

Fossil fuel representatives have joined the Morrison government in rejecting scientific warnings that no new oil and gas fields should be opened if the world is to deal with the climate crisis, with a national conference hearing Australia should be “smart enough” to back continued expansion.

Increased gas and oil supply was “absolutely part of the solution” to decarbonising the economy, the annual conference of gas industry group the Australian Petroleum Production and Exploration Association (Appea) was told.

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Boris Johnson claims planned Northern Ireland protocol law is ‘insurance’ in case talks fail – live

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Latest updates: UK prime minister meets Sinn Féin and DUP as Mary Lou McDonald suggests forming Stormont assembly is not UK government priority

This is from my colleague Jennifer Rankin in Brussels on the UK government’s mixed messaging over the Northern Ireland protocol.

Taoiseach Micheál Martin and Sinn Féin’s leader in Northern Ireland, Michelle O’Neill, have said they recognise there are “serious issues” in relation to the implementation of the Brexit protocol that Boris Johnson is planning to override in part.

They expressed serious concern about possible unilateral moves on the protocol by the British government, which would have a destabilising impact on Northern Ireland.

They recognised that there are genuine issues regarding aspects of the implementation of the protocol but these can be taken forward in the context of EU-UK discussions.

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Tesco to pay out more to pig farmers as industry warns of ‘critical’ situation

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Extra £6.6m in support takes total to £10m, after criticism supermarket was not paying ‘fair price’ for pork

Tesco is to hand pig farmers £6.6m in additional support, taking the total to £10m, after warnings that a slew of producers could go out of business.

The UK’s biggest supermarket said farmers would get £6.6m until August on top of £3.4m handed out since March under an “accelerated and enhanced payment plan”, after being criticised for not paying a “fair price” for its pork.

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‘Apocalyptic’ food prices will be disastrous for world’s poor, says Bank governor

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Bank of England’s Andrew Bailey blames UK’s highest inflation rate for three decades on Russia-Ukraine war

The Bank of England governor has blamed the war in Ukraine for the highest inflation in the UK for three decades and warned that “apocalyptic” food prices caused by Russia’s invasion could have a disastrous impact on the world’s poor.

Giving evidence to MPs, Andrew Bailey said while he was unhappy about the level of price rises, 80% of the inflation overshoot was caused by factors outside the Bank’s control.

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Australian federal election 2022 live: Albanese calls Coalition housing scheme ‘an attack on future generations’; AEC finds signs in breach

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Anthony Albanese labels Coalition housing scheme ‘an attack on future savings’; AEC says Advance Australia ‘Greens’ signs in breach of electoral act; home price increases will be ‘marginal’ under new plan, Scott Morrison says; PM says Labor was informed about Aukus when they ‘needed to be’; NSW records four Covid deaths. Follow all the day’s news live

Labor campaign spokesperson Jason Clare has a new line.

He told ABC TV:

The next week is really important. Australians have a big choice to make this weekend. It is a choice between a better future under Labor and more Scott Morrison.

As Australians think about this, they would be thinking “Do you want to wake up on Sunday morning and roll over and see Scott Morrison?”

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Cutting City regulation risks another financial crash, say economists

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Leading economists publish letter to Rishi Sunak in response to proposed financial services and markets bill

A group of 58 leading economists and politicians, including the former business minister Vince Cable, has written to the chancellor to say that scaling back City regulation will put the UK at risk of another financial crash.

The open letter, which has also been signed by the former Greek finance minister Yanis Varoufakis and Columbia University professor Adam Tooze, was sent in reaction to the Queen’s speech, which outlined Rishi Sunak’s plans to “cut red tape” through a financial services and markets bill.

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Saudi oil giant Aramco reports 82% rise in quarterly profits

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Investors to get $4bn in bonus shares after record earnings of $39.5bn on higher demand and crude prices

Saudi Aramco, the world’s biggest oil company, has disclosed an 82% rise in quarterly profits to a new record of $39.5bn (£32.2bn), boosted by an increase in demand and higher crude prices.

The company, which last week overtook technology group Apple to become the world’s most valuable company, said it would pay an $18.8bn (£15.3bn) dividend and hand $4bn (£3.2bn) in bonus shares to its investors after the better-than-expected performance.

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Unite union seeks talks with Sturgeon over Grangemouth refinery

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Union says oil refinery’s ‘strategic importance’ means talks about possible threats are urgent

Trade union bosses are seeking an urgent meeting with Scottish first minister Nicola Sturgeon amid uncertainty surrounding the future of the Grangemouth oil refinery.

Grangemouth is one of just six oil refineries in Great Britain and supplies two-thirds of the petrol and diesel for forecourts in Scotland as well as large volumes for the north of England and Northern Ireland.

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The Northern Ireland protocol is said to be a blight on regional economy. That’s just not true

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After an initial shock to businesses, manufacturing jobs are growing four times faster here than the UK average

Whenever Boris Johnson’s government wades into battle over the Northern Ireland protocol, it wields one assertion like a broadsword: that the protocol is ruining the region’s economy. Checks on goods entering Northern Ireland are disrupting trade, increasing prices and bankrupting businesses, and the damage will worsen unless the protocol is changed, goes the argument.

The Institute of Economic Affairs (IEA), a rightwing thinktank, joined the fray last week with a report that estimated the annual cost of the agreement at £850m.

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Chile’s constitutional assembly rejects plans to nationalise parts of mining sector

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The proposal would have seen lithium and rare metal resources taken into state hands as part of the country’s wide-ranging political shakeup

A constitutional assembly in Chile has rejected plans to nationalise parts of the crucial mining industry in a blow to progressive hopes of overhauling the neoliberal Pinochet-era political settlement.

The proposal, known as article 27, would have given the state exclusive mining rights over lithium, rare metals and hydrocarbons and a majority stake in copper mines.

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