Newsletter Jan 25, 2023

UK Labour party outlines its vision for government

Labour's slogan contrasts with the "Global Britain" promised by Boris Johnson when he took the country out of the EU at the start of 2020.

Energy support, debt interest help to swell UK borrowing

Britain's government borrowed more last month than in any December since monthly records began 30 years ago, reflecting the huge cost of energy support and soaring debt interest linked to rising inflation.

Drop in business activity flags UK recession risk - flash PMI

British private-sector economic activity fell at its fastest rate in two years in January, a survey showed on Tuesday, as businesses blamed higher Bank of England interest rates, strikes and weak consumer demand for the slowdown.

Britain and EU unlikely to change Brexit deal much, despite issues - report

Britain and the European Union are unlikely to fundamentally change their underlying Brexit settlement, making sector-specific deals for financial services, fisheries and energy necessary to prevent more disruption, a report said.

EU financial services need shake-up to benefit retail investors, top official says

A potential ban on commissions paid by banks to financial advisers who sell their products could be part of a wider shake-up of retail financial services in the European Union, the bloc's finance chief said on Tuesday.

Bank of England to lift rates to 4% on Feb 2, finish at 4.25% in March - Reuters poll

The Bank of England will lift the Bank Rate by 50 basis points on Feb.

UK says 200 young unaccompanied asylum-seekers missing

Two hundred children who arrived in the UK seeking asylum without their parents in the last 18 months are missing, immigration minister Robert Jenrick said on Tuesday.

Eurostar recovery hampered by post-Brexit checks

Cross-Channel train operator Eurostar complained Tuesday that slower post-Brexit passport checks for travellers are forcing it to run some services almost one-third empty.

Banks demand deep changes to UK's accountability rules -sources

Banks are pushing the British government to relax core parts of post-financial crisis rules designed to hold bosses to account for misconduct on their watch, in order to make hiring easier, two industry sources told Reuters.

Euro zone business activity back to growth in January -PMI

Euro zone business activity made a surprise return to modest growth in January, adding to signs the downturn in the bloc may not be as deep as feared and that the currency union may escape recession, a survey showed.

European shares slip, euro firm as data tees up ECB rate hikes

The euro held near a nine-month high against the dollar on Tuesday, though European stocks eased after regional business activity data reinforced expectations that the European Central Bank (ECB) will raise rates by a further 50 basis points.

Microsoft's cloud business keeps profits flowing in tougher times

Microsoft Corp posted results on Tuesday that showed some strength in the face of a weak economy, buttressed by a cloud business that hit Wall Street targets for the end of 2022, but it may miss expectations in the current quarter.

US sues Google over dominance of online ad market

The US said the revenue was unlawfully maintained by a monopoly that had "corrupted legitimate competition in the ad tech industry."

J&J expects inflation, China COVID hit to carry into 2023

Johnson & Johnson on Tuesday said it sees the impact from high inflation carrying into 2023 and expects China's major COVID-19 outbreak to dent sales at its medical devices unit in the first half of the year.

Prada's Lorenzo Bertelli sets out 'soft transition' to new leadership

Italian fashion group Prada is hiring former Luxottica chief Andrea Guerra to smooth the transition to the next generation of the family, Lorenzo Bertelli, son of Miuccia Prada and Patrizio Bertelli said on Tuesday.

Tesla's slowing sales, shrinking margins in focus in EV price war

Tesla Inc on Wednesday is expected to report the slowest sales growth in 10 quarters on underwhelming deliveries, days after its move to stir demand and choke competition by slashing prices on its electric cars.

Twitter sued over 'unpaid rent' on London office

Twitter's British landlord said Tuesday it is taking the social media to court for not paying rent on its central London offices.

3M to cut 2,500 jobs, forecasts downbeat Q1 as demand weakens

3M Co said on Tuesday it would cut 2,500 manufacturing jobs and forecast a gloomy first-quarter as the U.S.

Jacinda Ardern replaced as New Zealand PM at official ceremony

Ardern said last week she no longer had "enough in the tank" after steering the country through natural disasters, its worst-ever terror attack and the Covid-19 pandemic.

Strikes: why refusing public sector pay rises won't help reduce inflation

Since industrial action first started to gather speed last year, concerns have been raised about a wage-price spiral causing entrenched inflation.