UK Economy Recovered From Pandemic More Strongly Than Thought
New figures that incorporate methodological and data source changes indicate that gross domestic product was 2.2% above end-2019 levels in the fourth quarter of 2023, instead of only 1.9% higher, a release from the Office for National Statistics showed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
10 minutes ago
- Yahoo
Asia shares slip, dollar steadies ahead of Jackson Hole
By Rae Wee SINGAPORE (Reuters) -Shares in Asia fell on Wednesday, weighed down by a tech-led selloff on Wall Street, while the dollar gained some ground ahead of a key meeting of central bankers later in the week. Oil prices inched higher after falling in the previous session, as traders bet that talks over a possible agreement to end the war in Ukraine could ease sanctions on Russian crude oil, boosting global supply. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.47%, as did stock futures in Europe and the U.S.. EUROSTOXX 50 futures slid 0.55%, while DAX futures lost 0.5% and FTSE futures eased 0.14%. S&P 500 futures dipped 0.2% and Nasdaq futures lost 0.34%, extending its fall from the cash session overnight. [.N] "The S&P 500 and Nasdaq slumped overnight as investors ditched high-flying tech stocks with their lofty valuations," said Tony Sycamore, a market analyst at IG. Adding to headwinds for the sector, news that Nvidia and AMD have agreed to give the U.S. government 15% of the revenues from chip sales in China, as well as reports that the U.S. is considering taking a 10% stake in Intel, have stoked investor worries of the Trump administration's growing influence on tech companies. Sources also told Reuters that U.S. Commerce Secretary Howard Lutnick is looking into the federal government taking equity stakes in computer chip manufacturers that receive CHIPS Act funding to build factories in the country. "These developments signal that U.S. government is heading in a concerning and more interventionist direction," said Sycamore. Other bourses in Asia were similarly in the red on Wednesday, with Japan's Nikkei down 1.2%, while China's CSI300 blue-chip index fell 0.5%. Much of investors' attention at the start of the week was on a meeting between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskiy and a group of European allies over the Russia-Ukraine war. While the talks concluded without much fanfare, Trump said the United States would help guarantee Ukraine's security in any deal to end Russia's war there. He later said on Tuesday that the United States might provide air support to Ukraine, while ruling out putting U.S. troops on the ground. "The U.S. is not categorically underwriting anything, any security for Ukraine, even if they're open to provide some, because we don't know the conditions under which they will. So there's quite a bit of risk left out there," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. Oil prices recovered after a fall in the previous session, with Brent crude futures last up 0.46% at $66.09 a barrel. U.S. crude advanced 0.6% to $62.72 per barrel. [O/R] AWAITING JACKSON HOLE All eyes are now on the Kansas City Federal Reserve's August 21-23 Jackson Hole symposium, where Fed Chair Jerome Powell is due to speak on the economic outlook and the central bank's policy framework on Friday. Focus will be on what Powell says about the near-term outlook for rates, with traders almost fully pricing in a rate cut next month. "Given the apparent tensions between U.S. CPI and PPI data, (it) does come across as... premature to declare one way or the other. And most importantly, given this kind of dilemma embedded within the data, it is hard to decipher whether the Fed would take or would emphasise the risks that start to mount on the job side of the equation or (the) need to sit firm," said Mizuho's Varathan. Ahead of the gathering, the dollar firmed slightly, pushing the euro down 0.13% to $1.1633, while sterling fell 0.16% to $1.3470. The New Zealand dollar eased 0.17% to $0.5885 ahead of a rate decision by the Reserve Bank of New Zealand due shortly on Wednesday, where a rate cut is expected. Elsewhere, spot gold fell 0.07% to $3,312.89 an ounce. [GOL/] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
39 minutes ago
- Yahoo
Xiaomi Plans Europe Foray in 2027 After EV Sales Gains Pace
(Bloomberg) -- Xiaomi Corp. intends to sell its first electric vehicle in Europe by 2027, declaring plans to take on Tesla Inc. and BYD Co. globally after gaining traction with its year-old Chinese EV business. President Lu Weibing shed more light on the company's expansion plans after reporting a 31% rise in quarterly revenue, riding the successful launch of its second EV over the summer. That helped counter slowing demand for smartphones. Why New York City Has a Fleet of New EVs From a Dead Carmaker Chicago Schools Seeks $1 Billion of Short-Term Debt as Cash Gone A Photographer's Pipe Dream: Capturing New York's Vast Water System Trump Takes Second Swing at Cutting Housing Assistance for Immigrants A London Apartment Tower With Echoes of Victorian Rail and Ancient Rome Xiaomi has previously described ambitions to go global, though it's never specified a target market. While Europe is a common destination for Chinese EV makers seeking to tap a more lucrative arena, considering they can often sell their cars with higher margins there, they do face punitive tariffs. Were Xiaomi to export its EVs to Europe, it would likely be subject to tariffs of up to 48%, including a base 10% import duty and additional countervailing levies of around 35% to 38%. Those measures were imposed by the European Union in response to what it deems unfair state subsidies provided to Chinese EV makers, which the bloc argues distorts market competition and threatens local manufacturers. Chinese EV makers also face tariffs of 100% if they want to sell their cars in the US. That's effectively shut them entirely out of the market. Read: Europe Warms to China's Investments in Face of US Tariffs Regardless, strong demand for the YU7 sport utility vehicle, which co-founder Lei Jun released at the end of June, is propelling Xiaomi's $10 billion gamble on the increasingly crowded EV arena. The company aims to become one of the world's top five carmakers within 15 to 20 years, despite a production crunch that's testing its ability to scale up. Wait times for the SUV have stretched to more than a year. 'The business model we have developed in China can also apply in overseas market when we get into Europe,' Lu told analysts on a call. 'We're doing the research and preparation. So far we have not got the specific product plan yet.' Revenue climbed to 116 billion yuan ($16.2 billion) in the June quarter, just edging past average analyst estimates. The tech giant delivered 81,302 cars, taking the total to more than 157,000 in the first half — on track to surpass 2024's haul. But smartphones — its original and largest business — slid 2.1% and missed the average projection by about 5%. While Xiaomi doesn't expect smartphones to see much growth this year, the company's goal is to increase its market share in China by 1% every year, Lu told reporters on a post-earnings call Tuesday. It expects growth of about 5 to 6 percentage points in shipments this year to 175 million devices, executives said. Losses from the EV division narrowed to about 300 million yuan during the period. Lei said at an investor meeting in June that the automaking venture is expected to turn profitable in the second half of this year. Xiaomi has gained some $120 billion of market value over the past year, galvanized by its drive into EVs that's gained momentum against much larger and more experienced rivals. The company seems to have shaken off a fatal accident involving one of its SU7 sedans in March, which had its Autopilot turned on. The crash prompted regulators to rein in the deployment of advanced driver assistance technology nationwide. The Chinese government also intervened in June to try to stop a long-running price war that has squeezed margins all along the auto supply chain. Xiaomi has avoided getting embroiled in the discounting thanks in large part to demand for its vehicles remaining very high. Xiaomi's overall net income roughly doubled to 11.9 billion yuan, helped by fair value gains on financial instruments. Still, the stock is now trading at more expensive valuations than BYD as well as global smartphone rival Samsung Electronics Co. What Bloomberg Intelligence Says Xiaomi's robust 3.2 percentage point EV gross margin sequential growth in 2Q reflects improving economies of scale and a favorable product-mix shift, helping together with solid internet-of-things growth to offset smartphone headwinds. The ramp-up of Xiaomi's second EV factory and a rising sales mix of the YU7 SUV could boost margin, supporting breakeven in the EV segment by end-2025 and potentially driving a 2025-26 profit beat. - Steven Tseng and Sean Chen Click here for the research. Xiaomi is grappling with a slowdown in its core business and sluggish consumer spending. Along with rivals Apple Inc. and Huawei Technologies Co., it's been offering steep discounts over the big June shopping festival in an attempt to lure shoppers, pressuring margins. AI and chip design is another arena where Xiaomi is ramping up resources. The Beijing-based firm unveiled a 3-nanometer chip called the Xring O1 chip, designed to power devices including the Tablet 7 Ultra. Lei said the company would invest $7 billion this decade into semiconductors. (Updates throughout with context, comments from press call.) Foreigners Are Buying US Homes Again While Americans Get Sidelined What Declining Cardboard Box Sales Tell Us About the US Economy Women's Earnings Never Really Recover After They Have Children Americans Are Getting Priced Out of Homeownership at Record Rates Survived Bankruptcy. Next Up: Cultural Relevance? ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
ATO warning for millions as tax office hunts down $50 billion debt with 'aggressive' tactics
The Australian Taxation Office (ATO) is chasing down more than $50 billion worth of unpaid debt, and business owners have been warned they had better be ready to cough up. The ATO was lenient to many across the country during the pandemic, as it was a trying time for millions. But now that the country is well and truly out of that, the tax office's days of "playing nice" appear to be over, according to 2GB Radio host Ben Fordham. A spokesperson for the ATO told Yahoo Finance it is simply chasing money that is owed to them. "Collectable debt is at a record high, and we are committed to collecting this using all the tools at our disposal - we're now seeing the growth in collectable debt stabilise under firmer recovery strategies," they said. RELATED ATO tax return warning to millions over common car deduction Centrelink alert for retiring Baby Boomers wanting to caravan around Australia Little-known superannuation rule sparks warning for millions of Aussies While the pandemic days are long-gone, small businesses in many industries are still struggling. Some have been affected by the rising cost of goods, while others are struggling to keep up with other services that have suffered price hikes recently, like electricity, rent, and gas. Business insolvencies have plateaued but remain at "historically elevated levels", according to CreditoWatch, which revealed 14,716 businesses became insolvent in of these businesses are now being targeted by the ATO for not keeping up to speed with their repayments. Out of that more than $50 billion of unpaid debt, nearly two-thirds belonged to small businesses. "The ATO has been and continues to be transparent that reducing unpaid tax owed to the government is a key priority for us," the spokesperson told Yahoo Finance. "With just 1 per cent of taxpayers responsible for 20 per cent of the debt, we're focused on targeted action to protect revenue, ensure fairness and maintain confidence in the system." What actions is the ATO taking on businesses? Fordham recently relayed gripes from accountants over alleged "aggressive" tactics being used by the ATO on certain businesses to get their money. "Small businesses are being fined $1,500 if they lodge a BAS statement late," the radio host told his listeners. "A tax accountant says director penalty notices are flying out the door, thick and fast. "And then there's garnishee notices... the ultimate smash and grab, no warning, no negotiation. This veteran accountant tells us, 'I've only seen one of these notices issued in my career, but in the last 12 months, I've seen three of them.'" These are some of the ways that the ATO can claw back unpaid debts or encourage taxpayers to submit their affairs on time. Let's break down what those mean. Failure To Lodge penalty Small businesses earning under $20 million per year have to submit a business activity statement (BAS) every quarter. This is how businesses report and pay their taxes, including GST and PAYG, and there is a deadline that everyone has to follow. You can receive a Failure To Lodge (FTL) penalty if you miss that deadline. The ATO said one-off mistakes or isolated cases usually don't attract a penalty. The first penalty amount is $330 for small businesses, and you have 28 days to pay that. If you fail to pay, you'll get hit with another $330 fine. That can happen five times, meaning the maximum fine you can receive is $1,650. For medium-sized businesses (assessable income of more than $1 million and less than $20 million), the first penalty is $660 and can go up to $3,300. Changes were made on April 1 that forced some businesses to lodge monthly BAS statements if they had a history of missed or incorrect payments. Director Penalty Notices A director penalty notice (DPN) is applied to the director of a company, who is personally responsible for ensuring that certain obligations are reported and paid on time. They can cop a DPN if they don't comply with those deadlines for the following payments: Pay as you go withholding (PAYG withholding) Goods and services tax (GST) Super guarantee charge (SGC) If the company has more than one director, the amount owed will likely be the same for all directors. If you resign as a director but the infringements happened while you were in charge, you can still be personally liable for them. The ATO is able to make you pay a DPN through the following methods: issuing a garnishee notice offsetting any of your tax credits against the director penalties initiating legal recovery proceedings against you to recover the director penalty Garnishee Notices A garnishee notice can be issued to a person if there is outstanding money owed to someone. This effectively forces them to pay up, and the ATO can take the cash from: Financial institution accounts, like the person's bank account Tax refunds/credits Rental bond refunds Share/debenture dividends The tax office can contact your employer or contractor, banks, financial institutions and building societies where you have accounts, and people who owe money to you from the sale of real estate, such as purchasers, real estate agents and solicitors, to get their money. ATO issues stark warning as collection tactics shift The ATO warned last year that it would be changing the way it would approach unpaid tax and super. Fast forward to now and the tax office making good on that promise. "Taxpayers, including businesses, big and small, who repeatedly refuse to engage and continue to ignore reminders to pay, can expect ATO actions to escalate quickly," the spokesperson told Yahoo Finance. "If a taxpayer is experiencing difficult circumstances and cannot meet their tax obligations, we encourage them to talk to their registered tax professional, or contact us directly to understand the support that may be available to them. You can organise payment plans with the ATO and, in some cases, get general interest charges reduced. "The ATO recognises that while it's our job to collect tax, it's important that we carefully differentiate those taxpayers who may be experiencing vulnerability," the spokesperson added. "To support this, we are implementing a vulnerability capability that will strengthen and coordinate the way we support those who need it most."Error in retrieving data Sign in to access your portfolio Error in retrieving data
