Latest news with #AlexKerr
The National
09-05-2025
- Politics
- The National
SNP chief 'threatens' members amid 'stitch up' claims
Toni Giugliano's departure from the Falkirk West selection contest was triggered at the eleventh hour after he was accused of misconduct, believed to be an accusation of bullying. His rival Gary Bouse will contest the seat at next year's Scottish Parliament election. But Giugliano's expulsion from the race has sparked claims he was pushed out by SNP chiefs. Now, the party's national secretary Alex Kerr (below, right) has written to members urging them not to speculate on the circumstances of the case – warning that doing so could make them fall foul of internal rules. (Image: Supplied) In an email first reported by The Scottish Sun, Kerr said that he would not get into the reasons for Giugliano, who has ran unsuccessfully for a number of SNP seats in the past, saying only that a 'process was followed'. He noted that there were local rumours that a campaign had been orchestrated to frustrate Giugliano's campaign but said this was 'a blatant misrepresentation of the facts'. Kerr said: 'Anyone perpetrating this myth, and seeking to apportion 'blame' on any individual for the outcome of a disciplinary hearing has most likely breached the member code of conduct themselves." READ MORE: Gillian Mackay launches Scottish Greens leadership bid The top SNP officer said that 'rules and procedures will not always lead to conclusions we like", and added: 'If anyone cannot accept them then perhaps they need to reconsider whether they can be a member of an organisation that acts for all of its members, and not just for those that we have personal regard.' A Falkirk SNP source told The Scottish Sun: 'Alex Kerr is lashing out at local members because we won't accept his kangaroo court ruling. "He's now threatening us with disciplinary action if we don't accept his decision. What on earth has the SNP turned into? "Kerr's contempt for local members is astounding – this is the sort of stuff we expect from the Tories, not the SNP. "What on earth was HQ thinking, excluding a candidate who was about to win – did they think we'd all go along with it? (Image: Toni Giugliano) "This selection result carries no legal or political weight and it will be challenged. "They've made a situation a hundred times worse – Alex Kerr needs to recognise this and offer his resignation.' A source close to Giugliano added: 'Toni was booted out for having a conversation - witnessed by three other people - where he expressed a different point of view. If he'd chosen not to stand this complaint would never have seen the light of day.' The SNP said: 'Any internal disciplinary matters are dealt with in a manner that is confidential to the parties concerned.'
Yahoo
21-03-2025
- Business
- Yahoo
FTSE 100 LIVE: London stocks slide as UK borrowing hits £10.7bn in February
The FTSE 100 (^FTSE) and European stocks were lower on Friday morning as UK public borrowing hit £10.7bn in February, higher than the £6.6bn forecasted by City economists. According to the Office for National Statistics (ONS), government borrowing hit £132.2bn overall in the financial year to February, which is £14.7bn more than the same period a year earlier. The Treasury's surplus for January was also revised down to £13.3bn. Meanwhile, national debt has climbed to around 95.5% of gross domestic product (GDP), leaving it at levels last seen in the early 1960s. Public sector net debt excluding public sector banks was 0.1 percentage points higher than at the same point last year. It comes ahead of next week's spring statement where chancellor Rachel Reeves is set to announce spending cuts, alongside fresh economic and public finance forecasts from the Office for Budget Responsibility. Read more: Rachel Reeves under pressure as UK government borrowing overshoots Alex Kerr, UK economist at Capital Economics, said: "Although they will have no impact on the fiscal update next week, the significant overshoot in borrowing in February highlights the chancellor's tight fiscal backdrop. The OBR will still most likely conclude that the chancellor's headroom against her fiscal rules has been wiped out. "So we expect her to announce further non-defence spending cuts, on top of the welfare cuts already unveiled earlier this week." Traders will also have their eyes on airline stocks on Friday as markets assess the fallout of the fire near Heathrow which forced the UK's largest airport to close. More than 1,300 flights are expected to be affected by the fire at the North Hyde electrical substation in west London. A nearby fire triggered a 'significant' power cut. Shares in British Airways owner IAG (IAG.L) have already fallen more than 4%. London's benchmark index (^FTSE) was 0.5% lower in early afternoon trade with airlines in the red Germany's DAX (^GDAXI) dipped 0.9% and the CAC (^FCHI) in Paris headed 0.8% into the red The pan-European STOXX 600 (^STOXX) was down 0.7% Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green The pound was 0.2% lower against the US dollar (GBPUSD=X) at 1.2939 Follow along for live updates throughout the day: Wall Street opened down this afternoon amid worries over the possible fallout from Donald Trump's tariff plans weighed on the market. The S&P 500 is down 0.9% the Dow Jones is down 1% and the Nasdaq is down 0.6%. AstraZeneca (AZN.L) said on Friday that it will spend $2.5bn on a research and development hub in Beijing as it looks to revive business in its second-biggest market. It comes after scandals including the arrest of its China president last year. Boss Pascal Soriot was in Beijing and met with the city's mayor to reveal the investment, along with two licensing deals with Chinese companies, and a joint venture with a third Chinese firm on vaccines. "This $2.5bn investment reflects our belief in the world-class life sciences ecosystem in Beijing, the extensive opportunities that exist for collaboration and access to talent, and our continued commitment to China", Soriot said in a statement. The R&D centre "will partner with the cutting-edge biology and AI science in Beijing and be a critical part of our global efforts to bring innovative medicines to patients worldwide", Soriot said. The centre in Beijing will be the company's second R&D site in China - a centre in Shanghai opened in 2024 - to match two such centres each that AstraZeneca has in the U and Europe, respectively, a company spokesperson said. The Chinese government has launched several investigations into AstraZeneca's executives and activities in the country, where the drugmaker has invested billions of dollars to build factories and license experimental drug candidates from Chinese biotech firms. China accounted for about 12% of group revenue last year. Four of the UK's biggest sports broadcast and production companies have been fined more than £4m for illegally colluding on freelance pay rates. The UK's competition regulator said the BBC, BT (BT-A.L), IMG and ITV (ITV.L) must pay a combined £4.24m after being found to have shared information about fees for freelance workers including camera operators and sound technicians. Sky also admitted breaking the law but avoided a fine after alerting the Competition and Markets Authority (CMA) to its involvement before the investigation began. Freelancers are used by all five firms to create sports content and work on productions of live matches and events. The CMA said it found 15 examples of two companies illegally sharing information about pay — such as day rates and increases - in order to co-ordinate how much to pay freelancers. Elon Musk urged Tesla (TSLA) employees to 'hang on' to their shares in a meeting that addressed concerns about the electric carmaker's tumbling share price and arson attacks on its showrooms and vehicles. The Telegraph has the details: In an unannounced 'all hands' gathering, the billionaire said recent news coverage of the company felt 'like Armageddon' but insisted its prospects remain strong. His comments come after a 37pc drop in Tesla's share price this year, which has slashed the carmaker's market capitalisation from around $1.2 trillion (£930bn) to $740bn in less than three months. The downturn followed warnings that Mr Musk's strong support of Donald Trump – and key role in running the US president's new department of government efficiency (Doge) – was scaring off customers. The backlash against Mr Musk recently led to protestors launching violent attacks against some Tesla dealerships, which has prompted an FBI investigation. Speaking to staff in Texas on Thursday, Mr Musk insisted things were better than they appeared. He said: 'Overall, it's good. If you read the news, it feels like Armageddon. 'I can't walk past the TV without seeing a Tesla on fire. You're like, 'What's going on?' You know, some people, it's like, 'I understand if you don't want to buy our product, but you don't have to burn it down, that's a bit unreasonable.' 'Like, this is psycho. Stop being psycho!' Nike (NKE) beat modest earnings expectations with new CEO Elliott Hill, but investors remain jittery over the impact of Trump tariffs. Shares in Nike fell by more than 5.5% in pre-market trading on Friday. The footwear giant posted its fiscal third quarter earnings on Thursday after market close. Its revenue of $11.3bn (£8.7bn) surpassed estimates of $11bn, though a drop compared to the $12.4bn from a year ago. Adjusted earnings per share came in at $0.54 compared to estimates of $0.30, but also under last year's $0.98. The earnings report is the second under Hill, a company veteran who took the helm on 14 October. Shares initially popped, then dropped roughly 5% in after-hours trading as the company shared its fourth quarter guidance. CFO Matthew Friend warned of the impact of US president's Donald Trump's tariffs, including a 20% duty on all goods from China. "We expect fourth quarter gross margins to be down approximately 400 to 500 basis points, including restructuring charges during the same period last year. We have included the estimated impact from newly implemented tariffs on imports from China and Mexico," Friend said on the earnings call. UK-listed stocks also took a hit. JD Sports (JD.L) fell around 4.7% in early trade as the fashion industry digests a potential wider problem. Time has run out for first-time buyers hoping to take advantage of the current stamp duty exemption on homes up to £425,000. From 1 April, those completing on a property in England and Northern Ireland will be liable for duty on purchases over £300,000, substantially increasing the costs of buying. But it's not all bad news as plenty of properties are on the market within the lower £300,000 threshold — even in London and the south east where prices are highest. Here's a selection to get you started Investors woke up to news that London's Heathrow airport is closed until midnight after a fire at an electricity substation in the local area caused a "significant" power outage, hitting more than 1,000 slights and 16,000 homes. Flights that were already enroute to the west London airport were forced to divert, according to the specialist website Flightradar24. Video footage shows an enormous blaze at the substation in Hayes, west London. Here's what been happening in equity markets in London this morning: Unsurprisingly, airlines were under the cosh, with BA and Iberia owner IAG (IAG.L), easyJet (EZJ.L) and Wizz Air (WIZZ.L) all down. JD Sports (JD.L) was the biggest loser on the FTSE 100 (^FTSE), however, after a disappointing update from Nike (NKE). Pub owner JD Wetherspoon (JDW.L) slumped as it reinstated its interim dividend after a solid increase in first-half underlying sales, but warned of the impact of rising labour costs on the business, which will hit each of its pubs by £1,500 per week. Chair Tim Martin said that increases in national insurance contributions and minimum wages, announced in the last budget, would increase company costs by £60m a year. Ferrexpo (FXPO.L) slid as it said that Ukrainian tax authorities have suspended VAT refunds totalling UAH 512.9m ($12.5m) for January to its subsidiaries FPM and FYM, citing personal sanctions on major shareholder Kostiantyn Zhevago. The FTSE 250 (^FTMC) company said the sanctions were not directed at Ferrexpo or its subsidiaries, and criticised the move as unjustified financial pressure. It said the suspension would strain its liquidity, forcing cuts to production and sales, with broader negative impacts on local procurement, tax contributions, and Ukraine's economy. On the upside, Sainsbury's (SBRY.L) rose on the back of an upgrade to 'buy' from 'hold' at HSBC. Gas producer Energean (ENOG.L) gained after saying it has pulled its $945m deal to sell some of its assets to private equity fund Carlyle (CG) due to pending regulatory approvals in Italy and Egypt. Housebuilder Crest Nicholson (CRST.L) rallied after an upgrade to 'outperform' from 'sector perform' at RBC Capital Markets. Asos (ASC.L) surged after the online fashion retailer lifted its profit outlook for the first half. Ahead of the new financial year, consumer group Which? has revealed its 2025 rankings for providers of stocks and shares individual savings accounts (ISAs). ISAs offer tax-free growth on savings and investments, with an annual allowance as to what you can save into these types of account of £20,000. That allowance resets at the start of the new tax year, which begins on 6 April. Stocks and shares ISAs are one of four types of ISA — along with cash, lifetime and innovative finance ISAs. As the name suggests, stocks and shares ISAs allow people to invest their savings in stocks, bonds and funds. Savers can open stocks and shares ISAs with a number of providers, including banks and investment platforms, though the fees they charges for using this service do vary. In January, Which? surveyed more than 3,600 investors about their experiences using 25 different providers over the last 12 months which they rated on criteria including value for money, ease of use and customer service. The consumer group also looked at each provider's fee structure, analysing a total of 350 fee scenarios to establish the best value platforms. Which? looked at the impact of fees on seven different sizes of ISA portfolio, ranging from £5,000 to £500,000. The consumer group found that the differences were particularly significant for the largest portfolios, with analysis showing that investors could save as much as £2,000 per year in fees by picking a cheaper platform. With a new financial year around the corner, Which? said that now was the perfect time for investors to review their fees to ensure that they're maximising returns on their savings. Find out more here Russia's central bank has kept its key interest rate unchanged 21%, just days after president Vladimir Putin urged economic officials to avoid 'excessive cooling' of the economy 'like in a cryotherapy chamber.' Russian policymakers hiked the interest rate to 21% in October, marking the highest level since the early 2000s, but today said more rate hikes could be on the cards as inflationary pressures remain high. The Bank of Russia said in a statement on Friday: "The Bank of Russia estimates that the achieved tightness of monetary conditions creates the necessary prerequisites for returning inflation to the target in 2026. "If inflation dynamics do not ensure achieving the inflation target, the Bank of Russia will consider raising the key rate." It comes as inflation in Russia remains stubbornly high, the latest data showed the annual rate slipped slightly but remained above 10%. The central bank's target is 4% JD Wetherspoon (JDW.L) has reported an increase in first-half sales and earnings for the period to 26 January and reintroduced its dividend as the British pub chain sounded the alarm on rising staffing costs. Like-for-like sales were 4.8% higher versus the previous year, while basic earnings per share rose from 20.3p to 21.5p, it announced on Tuesday. The company also said that in the last seven weeks, to 16 March 2025, like-for-like sales increased by 5%. Although sales were on the up, the company warned of the impact a hike in national insurance payments will have on 1 April, with an estimated increase in cost of approximately £60m per year. 'Since labour costs are around 35% of the pub industry's sales, compared to around 11% for supermarkets, increases of this nature inevitably have a disproportionate impact on pubs, exacerbating the already-wide price differential for customers between the on and off-trade," said company chairman Tim Martin in an emailed statement. 'The combination of much higher VAT rates for pubs than supermarkets, combined with increased labour costs will weigh heavily on the pub industry," he added. For its first half, operating profit was down 4.3% to £64.8m. Profit before tax also fell 8.6% to £32.9m. "The cost of a burger and pint will have to rise to help mitigate this pressure, which hardly encourages more punters through the door," said Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club. "In all, aside from the depths of the pandemic, life has probably never been tougher for pub and bar operators. Wetherspoons has scale advantages others lack and a mightily loyal customer base, which really helps. But it is not immune to industry pressures." Read the full article here UK consumer confidence went up one point in March with marginal improvements in the perception of the economy. The index rose for the second month in a row, edging upwards to -19 from a measure of -20. The new reaching represents a three-month high but is still below the survey's long-run average of -10. Personal financial situation The index measuring changes in personal finances during the last year is down two points at -9; this is four points better than March 2024. The forecast for personal finances over the next 12 months is down one point at +1, which is one point worse than this time last year. General economic situation The measure for the general economic situation of the country during the last 12 months is up two points to -42; this is three points better than in March 2024. Expectations for the general economic situation over the next 12 months have improved two points to -29; but this is six points worse than March 2024. Major Purchase Index The Major Purchase Index is unchanged at -17; this is ten points better than this month last year. Savings Index The Savings Index has tumbled five points to +25 in March; this is the same as this time last year. Neil Bellamy, consumer insights irector, NIQ GfK, said: 'Consumer confidence remains subdued with a headline score of -19 for March. Views on personal finances for the past year are slightly down from -7 to -9, while perceptions of the wider economy over the last 12 months and looking ahead a year are each up two points at -42 and -29 respectively. But this is only a marginal improvement. Since September last year, the headline has been in a range of -17 to -22. "This is more positive than mid-2022 into early 2023 at the height of the cost-of-living crisis, which delivered the worst headline scores ever including nine months at -40 or worse. But we are still below the long-term average of -10. If consumer confidence were a patient languishing in a hospital bed, a doctor would say there is little evidence of a recovery as yet. Where do we go from here? The current stability is to be welcomed but it won't take much to upset the fragile consumer mood.' Inheritance tax (IHT) receipts have already reached a record high with a month of the tax year still to come, according to the latest data from HMRC. This is £700m higher than the same ten months last year and continues the upward trajectory over the last two decades. HMRC raised £7.499bn in 2023-4 tax year, but these figures show that they are well on track to smash through this figure for the 2024-5 tax year end. Nicholas Hyett, investment manager at Wealth Club said: 'Inheritance tax continues to be a meal ticket for HMRC. It may only affect a small percentage of estates, but that number is growing. OBR estimates suggest nearly 10% of estates will pay death duties by 2030 due to increasing house prices, changes to inheritance tax rules and years of allowance freezes. While we don't expect to see any more changes to Inheritance Tax announced at next week's Spring Statement, the changes announced in the autumn are yet to kick in and will increase the inheritance tax take substantially over the next few years. The main inheritance tax allowance has now been frozen at £325,000 for 15 years, and remains frozen for another 5 years until 2030, while the £175,000 residence nil rate band hasn't changed since 2020. These freezes are a form of stealth tax, which allows the government to increase their take without a backlash from a headline grabbing tax hike, but still contribute to the highest tax burden in 70 years. With inheritance tax reliefs for AIM and private businesses set to be severely restricted, it has rarely been more difficult to avoid the taxman having your cake and eating it too. Lifetime gifts are probably more attractive than ever, particularly regular gifts out of leftover income since these are immediately free of inheritance tax. This approach is particularly popular with grandparents, who use it to pay for things like school or university fees. Avoiding double taxation from inheritance tax is a nice added sweetener.' Traders have their eyes on airline stocks at the moment as markets assess the fallout of the fire near Heathrow which forced the UK's largest airport to close. More than 1,300 flights are expected to be affected by the fire at the North Hyde electrical substation in west London. A nearby fire triggered a 'significant' power cut and more than 4,900 homes have been left without power. Passengers are being urged to avoid travelling to the airport "until further notice". Shares in British Airways owner IAG (IAG.L) have already fallen more than 4% on the back of the news. UK government borrowing significantly exceeded expectations in February, according to official data, intensifying the pressure on chancellor Rachel Reeves as she prepares for her spring statement next week. In February, the government borrowed £10.7bn, marking the fourth-highest February figure since records began in 1993, according to the Office for National Statistics (ONS). This was well above the City's forecast, which had anticipated borrowing of around £7bn. For the financial year to February, borrowing totalled £132.2bn, a rise of £14.7bn compared to the same period in the previous year. In October, the Office for Budget Responsibility (OBR) had projected that public sector borrowing would reach £127.5bn for the entire financial year, which ends in March. An updated OBR forecast is expected to be published during her spring statement on Wednesday. Jessica Barnaby, deputy director for public sector finances at the ONS, said: "At £10.7bn, public sector borrowing in the month of February was virtually unchanged on the same month last year. However, borrowing over the financial year to date was up nearly £15bn on the equivalent period last year." The borrowing figure refers to the difference between what the government spends on the public sector and what it receives in income from tax and other receipts. Overall spending on public services increased compared with the same month last year, with things like social benefits and investment spending more than had been forecast, the ONS said. Reeves is set to use the spring statement to announce further cuts to government spending in an effort to maintain fiscal discipline. Under her fiscal rules, the chancellor has committed to balancing the current budget, which excludes government investment, by 2029-30. Read the full article here Asian shares were mixed overnight, after Wall Street retreated, as investors were rattled by uncertainties brought by US president Donald Trump. The Nikkei (^N225) fell 0.2% on the day in Japan as the markets reopened after a holiday on Thursday. Japan reported its core inflation rate fell less than forecast, partly boosted by a surge in rice prices due to a shortage of supplies. The Hang Seng (^HSI) slumped 2.2% in Hong Kong and the Shanghai Composite ( was 1.3% down by the end of the session, declining for a second day after China kept its key lending rates unchanged. Traders have been unloading technology shares following recent gains. Across the pond on Wall Street, the Dow Jones (^DJI) was almost flat, closing at 41,953.32, the S&P 500 (^GSPC) fell 0.2% ending at 5,662.89, and the Nasdaq (^IXIC) fell 0.3% to finish at 17,691.63. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.237%, from 4.256% late on Wednesday. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets, and all that's happening across the global economy. Here's a quick look at what's on the agenda for today: 12:01am: GFK Consumer Confidence 7am: Trading updates: JD Wetherspoon, Coca-Cola Euro, Ceres Power 7am: UK Public Sector Net Borrowing 10:30am: Russian interest rate decision 2pm: US Existing Home Sales 3pm: Eurozone consumer confidence (preliminary) for March 3pm: EU Consumer Confidence
Yahoo
21-03-2025
- Business
- Yahoo
FTSE 100 LIVE: Stocks slip as UK borrowing hits £10.7bn in February
The FTSE 100 (^FTSE) and European stocks were lower on Friday morning as UK public borrowing hit £10.7bn in February, higher than the £6.6bn forecasted by City economists. According to the Office for National Statistics (ONS), government borrowing hit £132.2bn overall in the financial year to February, which is £14.7bn more than the same period a year earlier. The Treasury's surplus for January was also revised down to £13.3bn. Meanwhile, national debt has climbed to around 95.5% of gross domestic product (GDP), leaving it at levels last seen in the early 1960s. Public sector net debt excluding public sector banks was 0.1 percentage points higher than at the same point last year. It comes ahead of next week's spring statement where chancellor Rachel Reeves is set to announce spending cuts, alongside fresh economic and public finance forecasts from the Office for Budget Responsibility. Alex Kerr, UK economist at Capital Economics, said: "Although they will have no impact on the fiscal update next week, the significant overshoot in borrowing in February highlights the Chancellor's tight fiscal backdrop. The OBR will still most likely conclude that the chancellor's headroom against her fiscal rules has been wiped out. "So we expect her to announce further non-defence spending cuts, on top of the welfare cuts already unveiled earlier this week." Traders will also have their eyes on airline stocks on Friday as markets assess the fallout of the fire near Heathrow which forced the UK's largest airport to close. More than 1,300 flights are expected to be affected by the fire at the North Hyde electrical substation in west London. A nearby fire triggered a 'significant' power cut. Shares in British Airways owner IAG (IAG.L) have already fallen more than 4%. London's benchmark index (^FTSE) was 0.5% lower in early trade Germany's DAX (^GDAXI) dipped 0.7% and the CAC (^FCHI) in Paris headed 0.6% into the red The pan-European STOXX 600 (^STOXX) was down 0.7% Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green The pound was 0.2% lower against the US dollar (GBPUSD=X) at 1.2939 Follow along for live updates throughout the day: Traders have their eyes on airline stocks at the moment as markets assess the fallout of the fire near Heathrow which forced the UK's largest airport to close. More than 1,300 flights are expected to be affected by the fire at the North Hyde electrical substation in west London. A nearby fire triggered a 'significant' power cut and more than 4,900 homes have been left without power. Passengers are being urged to avoid travelling to the airport "until further notice". Shares in British Airways owner IAG (IAG.L) have already fallen more than 4% on the back of the news. UK government borrowing significantly exceeded expectations in February, according to official data, intensifying the pressure on chancellor Rachel Reeves as she prepares for her spring statement next week. In February, the government borrowed £10.7bn, marking the fourth-highest February figure since records began in 1993, according to the Office for National Statistics (ONS). This was well above the City's forecast, which had anticipated borrowing of around £7bn. For the financial year to February, borrowing totalled £132.2bn, a rise of £14.7bn compared to the same period in the previous year. In October, the Office for Budget Responsibility (OBR) had projected that public sector borrowing would reach £127.5bn for the entire financial year, which ends in March. An updated OBR forecast is expected to be published during her spring statement on Wednesday. Jessica Barnaby, deputy director for public sector finances at the ONS, said: "At £10.7bn, public sector borrowing in the month of February was virtually unchanged on the same month last year. However, borrowing over the financial year to date was up nearly £15bn on the equivalent period last year." The borrowing figure refers to the difference between what the government spends on the public sector and what it receives in income from tax and other receipts. Overall spending on public services increased compared with the same month last year, with things like social benefits and investment spending more than had been forecast, the ONS said. Reeves is set to use the spring statement to announce further cuts to government spending in an effort to maintain fiscal discipline. Under her fiscal rules, the chancellor has committed to balancing the current budget, which excludes government investment, by 2029-30. Read the full article here Asian shares were mixed overnight, after Wall Street retreated, as investors were rattled by uncertainties brought by US president Donald Trump. The Nikkei (^N225) fell 0.2% on the day in Japan as the markets reopened after a holiday on Thursday. Japan reported its core inflation rate fell less than forecast, partly boosted by a surge in rice prices due to a shortage of supplies. The Hang Seng (^HSI) slumped 2.2% in Hong Kong and the Shanghai Composite ( was 1.3% down by the end of the session, declining for a second day after China kept its key lending rates unchanged. Traders have been unloading technology shares following recent gains. Across the pond on Wall Street, the Dow Jones (^DJI) was almost flat, closing at 41,953.32, the S&P 500 (^GSPC) fell 0.2% ending at 5,662.89, and the Nasdaq (^IXIC) fell 0.3% to finish at 17,691.63. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.237%, from 4.256% late on Wednesday. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets, and all that's happening across the global economy. Here's a quick look at what's on the agenda for today: 12:01am: GFK Consumer Confidence 7am: Trading updates: JD Wetherspoon, Coca-Cola Euro, Ceres Power 7am: UK Public Sector Net Borrowing 10:30am: Russian interest rate decision 2pm: US Existing Home Sales 3pm: Eurozone consumer confidence (preliminary) for March 3pm: EU Consumer ConfidenceTraders have their eyes on airline stocks at the moment as markets assess the fallout of the fire near Heathrow which forced the UK's largest airport to close. More than 1,300 flights are expected to be affected by the fire at the North Hyde electrical substation in west London. A nearby fire triggered a 'significant' power cut and more than 4,900 homes have been left without power. Passengers are being urged to avoid travelling to the airport "until further notice". Shares in British Airways owner IAG (IAG.L) have already fallen more than 4% on the back of the news. UK government borrowing significantly exceeded expectations in February, according to official data, intensifying the pressure on chancellor Rachel Reeves as she prepares for her spring statement next week. In February, the government borrowed £10.7bn, marking the fourth-highest February figure since records began in 1993, according to the Office for National Statistics (ONS). This was well above the City's forecast, which had anticipated borrowing of around £7bn. For the financial year to February, borrowing totalled £132.2bn, a rise of £14.7bn compared to the same period in the previous year. In October, the Office for Budget Responsibility (OBR) had projected that public sector borrowing would reach £127.5bn for the entire financial year, which ends in March. An updated OBR forecast is expected to be published during her spring statement on Wednesday. Jessica Barnaby, deputy director for public sector finances at the ONS, said: "At £10.7bn, public sector borrowing in the month of February was virtually unchanged on the same month last year. However, borrowing over the financial year to date was up nearly £15bn on the equivalent period last year." The borrowing figure refers to the difference between what the government spends on the public sector and what it receives in income from tax and other receipts. Overall spending on public services increased compared with the same month last year, with things like social benefits and investment spending more than had been forecast, the ONS said. Reeves is set to use the spring statement to announce further cuts to government spending in an effort to maintain fiscal discipline. Under her fiscal rules, the chancellor has committed to balancing the current budget, which excludes government investment, by 2029-30. Read the full article here Asian shares were mixed overnight, after Wall Street retreated, as investors were rattled by uncertainties brought by US president Donald Trump. The Nikkei (^N225) fell 0.2% on the day in Japan as the markets reopened after a holiday on Thursday. Japan reported its core inflation rate fell less than forecast, partly boosted by a surge in rice prices due to a shortage of supplies. The Hang Seng (^HSI) slumped 2.2% in Hong Kong and the Shanghai Composite ( was 1.3% down by the end of the session, declining for a second day after China kept its key lending rates unchanged. Traders have been unloading technology shares following recent gains. Across the pond on Wall Street, the Dow Jones (^DJI) was almost flat, closing at 41,953.32, the S&P 500 (^GSPC) fell 0.2% ending at 5,662.89, and the Nasdaq (^IXIC) fell 0.3% to finish at 17,691.63. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.237%, from 4.256% late on Wednesday. Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets, and all that's happening across the global economy. Here's a quick look at what's on the agenda for today: 12:01am: GFK Consumer Confidence 7am: Trading updates: JD Wetherspoon, Coca-Cola Euro, Ceres Power 7am: UK Public Sector Net Borrowing 10:30am: Russian interest rate decision 2pm: US Existing Home Sales 3pm: Eurozone consumer confidence (preliminary) for March 3pm: EU Consumer Confidence Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
Pound, gold and oil prices in focus: commodity and currency check, 21 February
The pound edged lower against the dollar on Friday morning, dipping 0.1% to $1.2651, as investors weighed the UK public finances and retail sales data. Data from the Office for National Statistics (ONS) showed that the public sector was estimated to be in surplus by £15.4bn in January, which was the highest amount for the month since records began. However, Capital Economics UK economist Alex Kerr noted that this figure was smaller than the Office for Budget Responsibility's (OBR) forecast for £20.5bn. He highlighted that the current budget surplus, which is what chancellor Rachel Reeve's fiscal mandate is couched against, of £24.6bn is also less than the OBR's forecast of £30.4bn. "Overall, today's release will do nothing to reduce the chancellor's challenges," Kerr said. He explained that higher interest rate expectations and gilt yields than at the time of the autumn budget in October implied that Reeve's headroom against her fiscal mandate had been whittled down to £2.8bn from £9.9bn. "Combined with the recent weakness of productivity and GDP [gross domestic product] growth, it may have been wiped out completely," Kerr said. "So in order to meet her fiscal rules, the chancellor will need to raise taxes and/or cut spending in the fiscal update on 26 March [in the spring budget]." Read more: FTSE 100 LIVE: Markets make small moves as UK retail sales beat expectations in January Meanwhile, separate ONS data released on Friday showed retail sales volumes rose 1.7% in January 2025, beating expectations of a 0.3% increase and followed a decline of 0.6% in December. Charlie Huggins, head of equities at the Wealth Club, said the figures were not as good as they first appear. He pointed out that while food sales volumes were up 5.6%, non-food store sales volumes fell by 1.3% and clothing sales volumes were down 2.6%. "Overall, aside from the major supermarkets, few retailers will cheer these figures," he said. "With inflation still elevated, and the dire state of government finances suggesting further tax rises could be on the cards, UK consumers are unlikely to be splashing the cash in 2025." Sterling was slightly higher against the euro (GBPEUR=X) on Friday, rising nearly 0.1% to €1.2082. Gold prices fell on Friday morning, after surging to record highs in Thursday's session on concerns about US trade tariffs and geopolitics. The spot price fell 0.6% to $2,922.71 per ounce, while gold futures were down 0.7% to $2,935.10 per ounce. The precious metal jumped to fresh highs on Thursday against a backdrop of uncertainty over attempts at a deal to end the Russia-Ukraine war. The US and Russia met in Saudi Arabia this week to hold peace talks about the war in Ukraine without the presence of representatives from Kyiv. Stocks: Create your watchlist and portfolio US president Donald Trump then on Wednesday called Ukrainian president Volodymyr Zelenskyy a "dictator" in a social media post. This came after Zelenskyy said earlier in the day that US proposals on Ukrainian minerals were "not a serious conversation". Zelenskyy had said earlier in the week that Trump was "living in a disinformation space". Meanwhile, Trump said on Tuesday that he would impose tariffs on autos "in the neighbourhood" of 25%, while for semiconductors and pharmaceuticals tariffs would be 25% "and higher, and it'll go very substantially higher over a course of a year." Oil prices fell on Friday but still looked on course for a weekly gain, amid concerns around supply. Brent crude futures were down 0.6% to $75.60 a barrel, while US West Texas Intermediate (WTI) crude fell 0.5% to $72.13 a barrel. Susannah Streeter, head of money and markets at Hargreaves Lansdown (HL.L), said: "A drone attack on part of a pipeline complex in Kazakhstan a key crude export route has led to sharply lower flows from Russia, leading to expectations of greater demand from other producers. Read more: Rachel Reeves under pressure as UK budget surplus misses forecasts "The OPEC+ cartel is also considering delaying an increase in production, given the concerns about medium term demand amid worries over the impact of Trump's tariffs on the global economy." In broader market movements, the FTSE 100 (^FTSE) was flat on Friday morning, trading at 8,661.53 points at the time of writing. For more details, check our live coverage here. Read more: How AI could change the internet Best UK mortgage deals of the week What you need to know about the car finance scandalSign in to access your portfolio
The Guardian
21-02-2025
- Business
- The Guardian
‘Bad news continues' for Rachel Reeves as UK's January budget surplus misses forecasts
Show key events only Please turn on JavaScript to use this feature Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. A flurry of data this morning will show how the UK economy is faring in early 2025, including the latest borrowing data, retail spending statistics, and a healthcheck on businesses across the country. And the breaking news is that Britain recorded its highest January budget surplus on record last month – but the windfall is not as large as expected. The Office for National Statistics has estimated that the public sector was in surplus by £15.4bn in January 2025, as tax receipts exceeded government spending. That's the highest January surplus since monthly records began in 1993. This is much better than in December, when borrowing jumped by more than expected. January is usually a bumper month for tax receipts, as the deadline to file self-assessment tax returns falls at the end of the month. But unfortunately, January's surplus is £5.1bn smaller than the £20.5bn surplus which the Office for Budget Responsibility had pencilled in for the month. A chart showing the UK public finance Photograph: ONS The ONS also reports that combined self-assessed income and Capital Gains Tax receipts were provisionally estimated at £36.2bn for January – the highest January receipts since monthly records began in 1999, and £3.8bn more than a year earlier, So far this financial year, government borrowing has now reached £118.2bn – £11.6bn more than at the same point in the last financial year and the fourth-highest financial year-to-January borrowing since monthly records began in 1993. In a small fillip for the chancellor, research group GfK has reported this morning that consumer confidence rose a little last month – but it still weaker than a year ago. The agenda 7am GMT: UK public finances for January 7am GMT: Great British retail sales for January 9am GMT: Eurozone flash PMI report for February 9.30am GMT: UK flash PMI report for February 2.45pm GMT: US flash PMI report for February Share Show key events only Please turn on JavaScript to use this feature City consultancy Capital Economics have a blunt verdict on January's record budget surplus – the 'bad news continues for the chancellor'. That's because January's budget surplus, of over £15bn, is more than £5bn less than the Office for Budget Responsibility had forecast – which means Rachel Reeves's headroom to keep within her fiscal rules has narrowed. Alex Kerr, UK economist at Capital Economics, explains: While January's disappointing public finances figures may not be as bad as they first appear, they continue the run of bad news for the Chancellor in 2025 and underline the difficult choices she faces. While there is increasing pressure on the government to commit to higher defence spending, the OBR is likely to conclude that the Chancellor's headroom against her fiscal rules has been wiped out and she will probably need to tighten fiscal policy as a result. Kerr explains that the undershoot was largely driven by disappointing tax receipts, which were £4.6bn below the OBR's forecast (see earlier post), 'reflecting the recent weakness of the economy'. It's possible, though, that the timing of tax returns is responsible too – meaning receipts in February are stronger than expected. But, Kerr concludes, the current budget deficit is on track to overshoot the OBR's 2024/25 fiscal year forecast of £55.5bn (2.0% of GDP) by £10.0bn. He fears that Reeves's options ahead of next month's spring statement are 'bleak', given the additional pressures to increase defence spending, and warns: Higher market interest rate expectations and gilt yields than at the time of October's Budget alone suggest the Chancellor's headroom against her fiscal mandate has been whittled down from £9.9bn to £2.8bn. Combined with the recent weakness of productivity and GDP growth, it may have been wiped out completely. So in order to meet her fiscal rules, the Chancellor will need to raise taxes and/or cut spending in the fiscal update on 26th March. Share The cost of servicing Britain's government debt rose year-on-year last month, taking a bite out of the budget surplus. The interest payable on central government debt was £6.5bn in January 2025, a £2bn jump compared with January 2024. That's the second highest January figure since monthly records began in 1997, after the record bill in January 2023. It's lower than in December, though, when the interest bill hit £9bn. These figures are driven by changes in the interest rates on index-linked debt, which rises or falls in line with the RPI inflation rate. Share Darren Jones, chief secretary to the Treasury, has responded to January's public finances data, saying: 'This Government is committed to delivering economic stability and meeting our non-negotiable fiscal rules. 'We will never play fast and loose with the public finances, that's why we're going through every pound spent, line by line, for the first time in 17 years, ensuring every penny delivers on the country's priorities in our plan for change.' Share The Office for National Statistics' deputy director for public sector finances Jessica Barnaby says: 'While the public finances are often in surplus in January, this year saw the biggest monthly surplus on record, with high January self-assessment receipts bolstering income. 'However, over the financial year to date as a whole, borrowing was still up on last year and was the fourth-highest on record for the year to date.' Share Although it's a record level, the UK's budget surplus was lower than forecast last month – because self-assessment taxes rose by less than expected. The Office for National Statistics reports that : Self-assessment income tax receipts rose by £4.2bn year-on-year in January to £25.9bn – a strong figure, but £3bn less than the £28.9bn forecast by the Office for Budget Responsibility. Self-assessment Capital Gains Tax receipts fell by £300m year-on-year to £10.3bn, and £1.1bn less than the £11.4bn forecast by the OBR. Share Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. A flurry of data this morning will show how the UK economy is faring in early 2025, including the latest borrowing data, retail spending statistics, and a healthcheck on businesses across the country. And the breaking news is that Britain recorded its highest January budget surplus on record last month – but the windfall is not as large as expected. The Office for National Statistics has estimated that the public sector was in surplus by £15.4bn in January 2025, as tax receipts exceeded government spending. That's the highest January surplus since monthly records began in 1993. This is much better than in December, when borrowing jumped by more than expected. January is usually a bumper month for tax receipts, as the deadline to file self-assessment tax returns falls at the end of the month. But unfortunately, January's surplus is £5.1bn smaller than the £20.5bn surplus which the Office for Budget Responsibility had pencilled in for the month. A chart showing the UK public finance Photograph: ONS The ONS also reports that combined self-assessed income and Capital Gains Tax receipts were provisionally estimated at £36.2bn for January – the highest January receipts since monthly records began in 1999, and £3.8bn more than a year earlier, So far this financial year, government borrowing has now reached £118.2bn – £11.6bn more than at the same point in the last financial year and the fourth-highest financial year-to-January borrowing since monthly records began in 1993. In a small fillip for the chancellor, research group GfK has reported this morning that consumer confidence rose a little last month – but it still weaker than a year ago. The agenda 7am GMT: UK public finances for January 7am GMT: Great British retail sales for January 9am GMT: Eurozone flash PMI report for February 9.30am GMT: UK flash PMI report for February 2.45pm GMT: US flash PMI report for February Share
