News

BUSINESS LIVE: UK inflation slows to 10.7%; TUI Group swings to profit

BUSINESS LIVE: UK inflation slows to 10.7%; TUI Group swings to profit; Watches of Switzerland revenues jump By Live Commentary Published: 07:25 GMT, 14 December 2022 | Updated: 09:05 GMT, 14 December 2022 e-mail 5 View comments The FTSE 100 is down 0.5 per cent in early trading. Among the companies with reports and trading updates today are TUI Group, Watches of Switzerland, SThree and BT. Read the Wednesday 14 December Business Live blog below. > If you are using our app or a third-party site click here to read Business Live Harry Wise Host commentator Mike Sheen Host commentator 09:05 Science lab tower block planned for Canary Wharf as owner looks to reduce its reliance on financial firms Canary Wharf’s owner plans to build one of Europe’s largest science laboratories. Canary Wharf Group, which is owned by Qatar’s sovereign wealth fund and real estate firm Brookfield Properties, wants to build an 823,000sq ft, 23-storey tower block to form part of a life sciences quarter in the northern section of the former London Docklands. The company is looking to reduce its reliance on financial services firms. Science lab planned for Canary Wharf as owner eyes the future Canary Wharf Group, which is owned by Qatar’s sovereign wealth fund and Brookfield Properties, wants to build a 23-storey tower block. This is Money 08:58 Market open: FTSE 100 down 0.5%; FTSE 250 off 0.6% London-listed stocks are in the red this morning, dragged down by the losses in miners’ shares, as lower-than-expected US and UK inflation data raised optimism for slower pace of the Federal Reserve’s interest rate hikes. Miners have slipped 0.6 per cnet, as copper prices fell on worries that the Fed’s monetary policy would temper demand for the red metal. HSBC, on the other hand, has risen 0.2 per cent as the lender said it will no longer finance new oil and gas fields, an update to its energy policy. BT Group is up 2.5 per cnet after the telecoms and network provider submitted its new Equinox 2 wholesale fibre offer to the British regulator Ofcom. 08:33 Cost-of-living crisis to push more firms over the edge, experts warn The cost of living squeeze and soaring energy bills will push more firms over the edge in the new year, experts have warned. Insolvency adviser Begbies Traynor expects higher demand for its services in the coming months after reporting a 12 per cent rise in revenues to £58.5million for the half-year to the end of October while profits jumped to £5million from £2.7million. Cost-of-living crisis to push more firms over the edge, experts warn Insolvency adviser Begbies Traynor expects higher demand for its services in the coming months after reporting a 12pc rise in revenues. This is Money 08:23 TUI: Back on track but uncertainty lingers Sophie Lund-Yates, equity analyst at Hargreaves Lansdown: ‘ TUI is back on track, as pent-up travel demand and a return to more normal travel patterns helped jet-fuel profits in the fourth quarter. The number of passengers in the core Markets & Airlines business doubled – with the per-seat margin benefit shining through in the numbers. Demand for winter bookings is also looking bright which means all-in-all, TUI is doing well. ‘However, for all the progress, TUI’s mindful of the unforgiving economic uncertainty. A cost-of-living crisis means it’s almost impossible to map demand accurately. Sunny getaways are far from front of mind for much of ‘TUI’s core demographic these days, and exactly what this will mean for the first quarter is yet to be seen. Strikes from Border Force officials is another spanner in the works, with disruption on an operational and demand level highly likely in the coming weeks.’ 08:07 FCA launches campaign warning Britons of loan fee fraud Britain’s financial services regulator has launched a new campaign urging the public to avoid falling victim to loan fee fraud. The Financial Conduct Authority said the worsening cost-of-living crisis meant more people were likely to borrow money over the festive period to indulge on gifts and food, putting them at greater risk of scammers. FCA launches campaign warning Britons of loan fee fraud Cases of loan fee fraud, whereby a person pays a commission for a loan they never receive, have already surged by 21 per cent from the previous year, according to research by the FCA. This is Money 07:52 HSBC ends lending and financing of new oil and gas fields HSBC will no longer provide new lending or capital markets finance for new oil and gas fields, the British bank said, as part of a wider update to its energy policy. The bank said it will continue funding natural gas projects for now, given the global energy crisis and the pressures placed on supply by the war in Ukraine. 07:42 Has inflation FINALLY peaked? Headline CPI rate eases to 10.7% in November – below expectations – offering hope to struggling Britons There were signs that inflation might have peaked today as the figure for last month dipped to 10.7 per cent. The headline CPI rate fell from the eye-watering 11.1 per cent recorded in October, and further than the 10.9 per cent analysts had expected. Chancellor Jeremy Hunt admitted that families and businesses are ‘struggling’ with surging prices, but delivered a strong message amid a wave of strikes by warning that the ‘wrong choices’ would only prolong the agony. Has inflation FINALLY peaked? CPI rate eases to 10.7% in November The headline CPI rate fell from the eye-watering 11.1 per cent recorded in October, and further than the 10.9 per cent analysts had expected. Mail Online 07:42 Beyond the headline inflation figure: Price of everyday goods remains excessively high Andrew Tully, technical director, Canada Life said: ‘While the headline numbers grab the news, the reality is underlying personal inflation rates for the things we buy every week, like food and energy, are running way above these headline figures, and our wages and pensions are simply not keeping up. ‘We are heading into a period where our living standards are predicted to fall by the largest amount since records began, and today’s inflation numbers will offer little comfort. As an example of the price pressures we face, four pints of milk cost £1.17 in September 2021 but that had increased rapidly to £1.52 by Sept 22. However, even as inflation slows, the price of that milk is likely to stay high, with the price simply not rising as fast as previously. The official economic forecasts are predicting a deep and protracted fall in living standards while we wait for our incomes to catch up. ‘For retirees on fixed incomes, the confirmation of a double-digit rise in the state pension from next April is helpful but is likely to offer little comfort in the winter months as the prices pensioners pay for everyday goods is still much higher.’ 07:40 TUI Group swings to profit TUI , the world’s largest holiday company, swung to a profit for its last financial year, showing its recovery after two years of pandemic losses. The group, which operates holidays, hotels, cruise ships and an airline, posted underlying earnings of €409million (£352million) for the 12 months to the end of September, compared to the €2billion loss it recorded the previous year. 07:35 Household pressure to mount as interest rates rise and banks rein in lending, warns Bank of England Households and businesses face ‘significant pressure’ as interest rates rise and banks rein in lending, the Bank of England warned. Central bank officials said 4m households would be hit with more expensive mortgage bills over the next year. And higher unemployment would pile further pressure on families, the Bank said yesterday. Household pressure to mount as interest rates rise, warns Bank Central bank officials said 4m households would be hit with more expensive mortgage bills with higher unemployment piling more pressure on families, This is Money 07:34 Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 9.3% in the 12 months to November 2022 – down from 9.6% in October. CPI rose by 10.7%, down from 11.1% in October. ➡️ https://t.co/WvjenB0zyA pic.twitter.com/knHW9PLeKw — Office for National Statistics (ONS) (@ONS) December 14, 2022 07:34 Inflation peak: ‘There is still a vertiginous descent to navigate before it’s back down to less dangerous levels’ Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown: ’Inflation may be past the peak but given that prices for UK consumers have scaled a mountain, there is still a vertiginous descent to navigate before it’s back down to less dangerous levels. ‘Lower fuel and second-hand car prices have helped bring down the headline CPI rate but price pain continues in many parts of the economy with increases in alcohol costs in pubs, cafes and restaurants particularly onerous. The Bank of England is still expected to raise rates by 0.5% tomorrow, increasing borrowing costs yet again for households and businesses, to try and shove away demand and push prices down. ‘The dark clouds hovering as a recession rolls in are likely to hasten the path lower, but policymakers will still want to tread carefully, fearful that the economy could be shoved into a deep crevasse of contraction if rate rises are too steep. It’s likely that the next moves by the Bank of England will be more moderate 0.25% hikes with an expectation of reaching 4.75% by the middle of 2023.’ 07:32 UK inflation slows to 10.7% Britain’s annual rate of consumer price inflation fell more sharply than expected in November to 10.7 per cent, slipping from October’s 41-year high of 11.1 per cent and below economist expectations of a 10.9 per cent rise, official figures show. Chancellor Jeremy Hunt said: ‘I know it is tough for many right now, but it is vital that we take the tough decisions needed to tackle inflation – the number one enemy that makes everyone poorer. ‘If we make the wrong choices now, high prices will persist and prolong the pain for millions.’ {“id”:”11536445″,”channel”:”/money”,”pageUrl”:”https://www.dailymail.co.uk/money/markets/article-11536445/BUSINESS-LIVE-UK-inflation-slows-10-7-TUI-Group-swings-profit.html”,”status”:”running”,”greenBox”:{“body”:””},”lastDate”:1671008702283} Share or comment on this article: BUSINESS LIVE: UK inflation slows to 10.7%; TUI Group swings to profit e-mail Add comment Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence. Toggle Search POPULAR MONEY SECTIONS Take me to… Best savings rates tables Find the best mortgage calculator Power Portfolio investment tracker Stock market data and share prices This is Money’s podcast This is Money’s newsletter The best DIY investing platforms The best bank accounts The best cash Isas The best credit cards Save on energy bills Compare broadband and TV deals How to find cheaper car insurance Investing Show videos Financial calculators Search Enter search term Search Search within All articles Share prices Comments 5 Share what you think Newest Oldest Best rated Worst rated View all The comments below have not been moderated. View all The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. Add your comment Enter your comment By posting your comment you agree to our house rules . Submit Comment Clear Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. No Yes Close Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy . More top stories

See also  Senior Citizens Above 65 Years of Age Can Now Invest in National Pension Scheme

Published on : 2022-12-14 08:23:09

Source :dailymailuk

Article from : See Article