Category Archives: Business

Southern Water considers shipping supplies from Norwegian fjords to UK

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Contingency plan using sea tankers to deal with future shortages would be paid for from customers’ bills

Southern Water, one of Britain’s biggest water companies, is drawing up contingency plans to tanker water from Norway to deal with future supply shortages and drought.

Southern, which has 2.7 million customers for drinking water supply in the south-east of England, could import water from Norwegian fjords to provide up to 45m litres a day, and would pay for it from customers’ bills.

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Mirror-like offering by supermarket giants may be stifling vigorous competition, ACCC report says

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Australian Competition and Consumer Commission uses special information gathering powers to examine ‘concerning’ reports from grocery suppliers

Australia’s major supermarkets provide broadly similar products, prices and loyalty programs in an oligopolistic market that may limit incentives to compete vigorously, the competition regulator has found in its interim report on the sector.

The Australian Competition and Consumer Commission also said grocery suppliers had raised “concerning” issues – such as being required to pay rebates for promotions to supermarkets – prompting the regulator to use its compulsory information gathering powers to examine the reported behaviour.

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China announces new measures to arrest housing slump and boost growth

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Benefits to rise for poorest and local authorities to be given powers to intervene in real estate markets

Chinese leaders have vowed to arrest a slump in the housing market and boost growth after conceding that measures by the central bank to stimulate investment this week were likely to prove inadequate.

Promising to deploy “necessary spending” by the state to meet this year’s economic growth target of 5%, China’s politburo said it would increase benefits for the poorest and give local authorities the cash and power to intervene to prevent further falls in house price values.

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OpenAI planning to become for-profit company, say reports

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Reported move follows recent departure of senior figures from ChatGPT developer

OpenAI is reportedly pushing ahead with plans to become a for-profit company, as more senior figures left the ChatGPT developer after the surprise exit of its chief technology officer, Mira Murati.

The San Francisco-based startup is preparing to change its corporate structure as it seeks $6.5bn (£4.9bn) of new funding, according to reports.

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Harrods chief apologises for failing colleagues over Fayed allegations

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Michael Ward says former Harrods owner ‘presided over a toxic culture’, describing it as ‘shameful period’

The managing director of Harrods has apologised and said the business “failed our colleagues” following sexual misconduct allegations against the department store’s former owner, Mohamed Al Fayed.

In a statement, Michael Ward said it is clear Fayed “presided over a toxic culture of secrecy, intimidation, fear of repercussion and sexual misconduct”.

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Morrisons agrees £331m property deal on extra long leases to cut debt pile

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Transaction will reportedly provide investment firm Song Capital with ground rent on 76 supermarkets for 45 years

Morrisons has raised £331m to cut its debt pile through the sale of ground leases on 76 supermarkets as part of a turnaround plan under the new chief executive, Rami Baitiéh.

If all the proceeds are used to pay down debt, Morrisons would have net debt of £3.6bn, down from as much as £8.6bn at the end of last year.

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Thames Water credit ratings slashed to lower levels of junk as default fears grow

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S&P and Moody’s cut ratings by five notches on risk troubled company will run out of cash

Thames Water’s debt rating has been slashed to the lower levels of junk by two major credit rating agencies, piling further pressure on the UK’s biggest water company, which is rapidly running through cash and fighting to stave off renationalisation.

S&P Global Ratings and Moody’s said the utility was fast running out of money and on the brink of default. S&P cut its rating on Thames’s £15bn top-ranking debt pile by five notches to CCC+, taking it into the triple-C category that is considered very risky. Thames lost its investment-grade credit rating in July.

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Opposition leader calls for university’s leaders to quit – as it happened

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The foreign affairs minister, Penny Wong, has joined an international push “to hold the Taliban to account” under the Convention on the Elimination of All Forms of Discrimination Against Women.

Wong says:

We know the women and girls of Afghanistan are effectively being erased from public life by the various edicts the Taliban … have issued.

The steps we are taking with Germany, Canada and the Netherlands are unprecedented. We are intending to use the Convention on the Elimination of All Forms of Discrimination Against Women, to which Afghanistan is a party, to take action.

If I can … say again to the Australian Lebanese community. This is a deeply distressing situation for so many of you. I know that there are many Australians in Lebanon. There are many Australians who have relatives, family and friends in Lebanon. I again urge Australians in Lebanon to leave now. There are flight cancelations and disruptions, and there is a risk that Beirut airport may close for an extended period of time.

Please do not wait for a preferred route. Please take the first option you can to leave. We continue to monitor the situation closely. We have been working with partners on contingency plans now for many months but I again say to anyone who any Australian who is in Lebanon: please leave now.

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Jaguar Land Rover to invest £500m in Halewood car plant

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Upgrade to Merseyside site will allow it to build hybrid cars and prepare for electric vehicle production

Jaguar Land Rover has said it will spend half a billion pounds to upgrade a Merseyside factory to build hybrid cars and prepare for electric vehicle production.

Britain’s largest automotive employer – officially known as JLR – said it has already spent £250m on new car production lines, machinery, people and digital technology at the Halewood plant, with plans for £250m more over the coming years.

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Labour to announce £10bn AI project in Northumberland backed by pro-Trump billionaire

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Stephen Schwarzman’s Blackstone Group will fund data centre bringing 4,000 jobs to north-east England

Keir Starmer is set to announce the creation of a £10bn AI datacentre, bringing 4,000 jobs to north-east England, which will be funded by a private equity firm run by a big Donald Trump supporter.

The prime minister is due to host chief executives in New York on Thursday, where he is trying to drum up interest in foreign investment into the UK. He will hail the investment in an “artificial intelligence datacentre” – due to be built in Blyth in Northumberland by Blackstone – as a “vote of confidence in the UK”.

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Harris says cost of living ‘still too high’ as she lays out economic agenda

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Democratic presidential nominee fleshed out economic vision for middle class and small businesses

Millions of Americans are struggling to make ends meet, Kamala Harris has said, as the Democratic presidential candidate fleshed out the economic agenda she hopes to adopt in the White House.

Conceding that the cost of living in America “is still just too high”, the vice-president argued this was true “long before” the Covid-19 pandemic ravaged the global economy, and she took office with the president, Joe Biden.

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Jared Kushner’s private equity firm faces inquiry as it fails to return profits

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Trump son-in-law’s Affinity Partners fuels Senate suspicions of foreign influence-buying before US election

A private equity firm owned by Jared Kushner, Donald Trump’s son-in-law, has been paid $157m in fees since 2021 without returning any profit to investors, according to a US Senate inquiry.

The finding from the Senate finance committee has fuelled suspicions that the Miami-based company, Affinity Partners, may be a foreign influence-buying operation established in anticipation of the former president returning to the White House.

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Labour crackdown on non-doms may raise no money, officials fear

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Exclusive: Watchdog may conclude that emigration of wealthy individuals could actually cost Treasury revenue

Keir Starmer’s promised tax crackdown on non-doms could yield no extra funds for the Treasury, leaving a £1bn hole in the government’s planned spending for schools and hospitals.

Labour planned to use the money raised from wealthy individuals who are registered overseas for tax purposes to invest in ailing public services.

But the Guardian understands that Treasury officials fear estimates due to be released by the government’s spending watchdog may suggest the policy will fail to raise any money because of the impact of the super-rich non-domiciles leaving the UK.

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UK economy to grow faster than Japan, Italy and Germany this year, says OECD

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Forecast upgrades UK to joint second after US but it is still expected to have highest inflation among G7 countries

The global economy is “turning a corner”, according to the Organisation for Economic Cooperation and Development, which has upgraded the UK’s growth forecast for this year to faster than that of Japan, Italy and Germany.

The OECD’s latest outlook ranked Britain joint second among the G7 developed countries in its latest outlook for the world economy. However, the UK is still expected to have the highest inflation in the group.

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Co-operative Group returns to profit as almost £40m lost to shoplifting

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Mutual reports half-year pre-tax profit of £58m despite soaring wage bill and rising cost of theft at retail stores

The Co-operative Group has laid bare the impact of shoplifting as it said the cost of crime in its stores soared by almost 20% to £40m in the first half of the year.

The member-owned mutual has spent £18m so far this year on measures to protect staff in its food business, including rolling out body-worn cameras and fortified kiosks.

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Greens MP invokes Whitlam in public housing push – as it happened

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Plibersek approves three coalmine expansions

We have more on environment minister Tanya Plibersek’s approval of three coalmine expansions on Tuesday from Graham Readfearn here.

There’s a range of everyday common health conditions that are unnecessarily blocking up our emergency departments and contributing to those wait times to see our precious general practitioners.

We would love to see more GPs. Who doesn’t love their local family doctor? My wife and I and our children certainly do. But we all know how difficult it is to not only find one, find one that bulk-bills, but find one that hasn’t closed their books and can take an appointment. That’s not just in the bush, that’s in our major capital cities as well, whether it’s after 6pm or on a weekend, when your local pharmacy is open.

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Rightmove rejects third bid from Rupert Murdoch’s REA Group

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Australian company says it is frustrated that UK property website has refused to engage over £6.1bn offer

Rightmove has rejected a third bid from Rupert Murdoch’s REA Group and said the offer was “unattractive” and undervalues the UK’s largest online property portal.

On Wednesday Rightmove confirmed that its board had “unanimously rejected” the non-binding cash-and-shares offer put forward on Monday, which valued the company at £6.1bn.

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‘Davos on the Mersey’: key conference takeaways as Labour tries to woo business

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As the budget looms, where the party stands on investment in the UK economy, workers’ rights and more

For a second year running, corporate Britain descended on Liverpool for Labour’s annual conference, in an event so packed with executives that some insiders joke the socialist gathering has developed into a full-blown “Davos on the Mersey”.

Like last year, the exhibition and conference fringe had sponsored events, lounge areas and advertising from exhibitors including Gatwick, National Grid, Ikea and Specsavers. This year, however, business leaders were looking for clues about how Labour will govern after July’s election landslide.

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Caroline Ellison sentenced to two years after serving as star witness against FTX’s Sam Bankman-Fried

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Ex-Alameda CEO and ex-girlfriend of fallen crypto mogul pleaded guilty, but prosecutors requested lenient sentence

Caroline Ellison, the former crypto executive and romantic partner of the disgraced FTX founder Sam Bankman-Fried, was sentenced to 24 months in prison in Manhattan federal court on Tuesday. Ellison was a central figure in the FTX bankruptcy saga and key witness for the prosecution in the $8bn fraud trial that ended with Bankman-Fried’s conviction.

Ellison served as the chief executive of Alameda Research, which was the trading arm of the now defunct FTX crypto exchange. The collapse of FTX, once valued at $32bn, was directly linked to revelations that it was attempting to financially prop up Alameda with fraudulent accounting. Subsequent investigations and criminal charges found that FTX and the hedge fund had used billions in customer funds for risky trades and lavish personal spending.

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‘Can’t afford health insurance’: California CVS workers take strike vote

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More than 7,000 workers to hold strike vote this week amid accusations of staff shortages and expensive healthcare

More than 7,000 workers at CVS stores across California are holding a strike vote this week after accusing the US’s largest pharmacy chain of shortchanging staff and failing to provide affordable healthcare.

CVS and its union remain far apart in negotiations on a new contract. Their current union contract expired on 30 June 2024.

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