Yahoo Finance Train drivers to disrupt June half term as unions announce new strikes
Rail passengers face fresh travel chaos over the June half term after unions announced new strikes.
Members of the Rail, Maritime and Transport union (RMT) will walkout across England on Friday 2 June.
The strike action involves 20,000 rail workers at 14 train operators, including station staff, train managers and catering workers, the union announced on Thursday.
It means further disruption for passengers already impacted by planned walkouts of train drivers' union Aslef that same week.
Aslef train drivers are staging walkouts on Wednesday 31 May and Saturday 3 June and have banned employees working overtime on Thursday 1 June, which can lead to last-minute cancellations.
Passengers have also been warned that services will likely be disrupted and start later on the day immediately following strike action.
The combination means the country’s railways will be in disarray for almost all of the week-long half term school holiday next month.
The final day of strike action on June 3 coincides with the FA Cup final at Wembley, the Epsom Derby and Beyoncé’s “Renaissance” world tour concert at the Tottenham Hotspur Stadium.
The latest announcement comes after strikes impacted thousands of people travelling to the Eurovision final in Liverpool last week.
The latest strike action from the RMT is part of a long running dispute between the union and operators over pay and working conditions.
The RMT described the previous pay offer and associated conditions as "unacceptable".
The trade union claimed it has not received a revised proposal, despite being in contact with the Rail Delivery Group (RDG), which represents the train operators, since last week's walkout.
RMT general secretary Mick Lynch said: "The government is once again not allowing the Rail Delivery Group to make an improved offer that we can consider. Therefore, we have to pursue our industrial campaign to win a negotiated settlement on jobs, pay and conditions."
The RDG accused RMT of prolonging the pay dispute “without ever giving their members a chance to have a say on their own offer”.
An RDG spokesman added: “Instead, they will be subject to yet more lost pay through industrial action, customers will suffer more disruption, and the industry will continue to suffer huge damage at a time when the railway is taking more than its fair share from taxpayers to keep trains running post COVID.”
RMT’s members voted to renew the union’s industrial mandate for strikes earlier this month, meaning passengers could face another six months of disruption.
08:14 PM
See you tomorrow!
Okay, that's all from me. We'll be back tomorrow with the latest.
07:50 PM
City worker strikes threaten to shut down tourist hotspots
Tower Bridge and the Barbican are among the popular London tourist attractions which could be forced shut as City workers prepare to strike over pay next week.
More than 900 employees of the City of London Corporation will stage a 24-hour walk out on Thursday 25 May, GMB union announced.
This could force museums, gardens, parks and markets across the City of London to close.
GMB said the industrial action was supported by 77pc of balloted union members.
The trade union claimed that its members had no alternative as demands for fair pay have been “falling on deaf ears for months".
GMB organiser Anna Lee said: "This vote and support for strike action confirms how strongly our members feel and how this cost-of-living crisis is having such a devastating impact on them and their families."
07:26 PM
OpenAI debuts ChatGPT app for iPhone
OpenAI is planning to roll out its ChatGPT generative artificial intelligence tool across smartphones, after debuting on Apple's App Store earlier today.
The chatbot is now available to be downloaded on iPhones in the US, with the tech company planning to offer the app in more countries in coming weeks. It expects to introduce the Android version soon.
Unlike the web version, you can also ask it questions using your voice. Users who pay for OpenAI’s ChatGPT Plus subscription can also use its most powerful large language model, GPT-4, via the app, the company said.
“We’re starting our rollout in the U.S. and will expand to additional countries in the coming weeks,” OpenAI said in a blog post announcing the new app.
06:25 PM
Bank of England plans to reject Revolut’s bid for banking licence
The Bank of England has told the Treasury that it is planning to reject Revolut's application for a banking licence, after a two-year campaign by Britain's most valuable fintech company.
Banking correspondent Simon Foy has the story:
The Prudential Regulation Authority (PRA), the arm of the Bank responsible for licensing, informed the Government in March that it planned to issue a statutory warning notice to Revolut within a few weeks.
It said the company’s initial application would be turned down owing to concerns over its balance sheet, disclosed in overdue accounts that same month.
However, it is understood that the warning notice has not been served and there are now urgent talks taking place behind the scenes in a bid to rescue the licence application.
There are signs the Government is growing increasingly frustrated over the conduct of regulators towards companies in emerging industries, which has led to accusations that Britain is seen as a hostile environment for entrepreneurs.
05:55 PM
Asda considers cutting pay for south eastern workers
Supermarket chain Asda is considering cutting pay for employees across the south east of England to bring them in line with its other stores.
According to GMB union, the grocery giant is planning to tell staff at 39 stores outside of London that they will lose a 60p-per-hour "location supplement" and have their night supplement reduced.
The trade union claimed that workers who don't agree to the changes will have the new contract imposed on them and could be dismissed if they refuse to sign.
GMB said there were plans to implement the change in November.
GMB national officer Nadine Houghton said: "Cutting the pay of 7,000 low-paid retail workers during a cost-of-living crisis is inexcusable."
Asda confirmed that it is consulting in a small number of stores where staff were paid a "legacy location supplement" which was out of line with the retail market.
An Asda spokesperson said:
We are holding a collective consultation in a small number of stores outside the M25 where colleagues are currently paid a legacy location supplement of 60p per hour on top of their existing rate of £11.00 per hour.
This supplement is out of line with the wider retail market and has created an anomaly where some Asda colleagues in stores that are close together are paid different rates.
As part of this consultation, we are discussing a compensatory payment for colleagues in return for the removal of this location supplement, if the proposal goes ahead. These discussions are ongoing and no final decision has been taken.
05:50 PM
Rail Delivery Group responds to further strike action
However, the Rail Delivery Group accused RMT of prolonging the pay dispute without giving members the chance to vote on the offers made.
It added that industrial action damages the rail industry which is "taking more than its fair share from taxpayers" to keep trains running following Covid disruption.
A spokesman for the Rail Delivery Group said:
In recent discussions with the RMT we have continued to stand by the fair, industry level dispute resolution proposal agreed line by line with their negotiating team, which would have resolved this dispute and given our lowest paid staff a rise of up to 13pc
By calling more strike action the RMT leadership have chosen to prolong this dispute without ever giving their members a chance to have a say on their own offer.
Instead, they will be subject to yet more lost pay through industrial action, customers will suffer more disruption, and the industry will continue to suffer huge damage at a time when the railway is taking more than its fair share from taxpayers to keep trains running post COVID.
We remain open and willing to engage in national level-talks so that we can secure a pay rise for our people and the long-term future of an industry vital to Britain's economy.
05:41 PM
'Ministers cannot just wish this dispute away," says rail union boss
The RMT said that the previous offer and associated conditions made by the Rail Delivery Group, which represents the train operators, were "unacceptable".
RMT claimed that no new proposals have been made, despite contact between the parties since last week's walkout.
RMT general secretary Mick Lynch said:
The government is once again not allowing the Rail Delivery Group to make an improved offer that we can consider. Therefore, we have to pursue our industrial campaign to win a negotiated settlement on jobs, pay and conditions.
Ministers cannot just wish this dispute away. They underestimate the strength of feeling our members who have just given us a new 6-month strike mandate, continue to support the campaign and the action and are determined to see this through until we get an acceptable resolution.
The government now needs to unlock the RDG and allow them to make an offer that can be put to a referendum of our members.
The latest strike action, which falls within the half term holiday, will disrupt train services across the country.
It signals further travel chaos for passengers already impacted by planned walkouts by members of train drivers' union Aslef that same week.
05:07 PM
Rail unions announce fresh strikes in June
RMT members working for 14 train companies will stage a fresh strike next month in the long-running dispute over pay, jobs and conditions, the union has announced.
The industrial action will take place on June 2.
The walkout will involve 20,000 railway workers including station staff, train managers and catering workers.
04:21 PM
Nike faces $530m tax fine over claims it misclassified temporary workers
Nike is facing more than $530m (£430m) in tax fines over claims that it misclassified temporary workers in the UK, the US and Europe.
A report by workplace services group People2.0 suggested that Nike may have incorrectly classified as many as a quarter of independent contractors, law firms and individuals in the US over the three years to July 2022, according to the Guardian. The levels of potentially incorrect classifications were similar in the UK, Belgium and the Netherlands, the People2.0 report reportedly claimed, affecting thousands of people.
The allegations are said to centre around rules in many major Western countries over the use of the independent contractors. Classifying workers as contractors rather than workers can mean companies avoid having to give those people holiday pay and pensions.
People2.0's report said: "There is currently no [fully comprehensive] company-wide process for determining whether an independent contractor should be engaged as an independent contractor or employee at Nike.
“People2.0’s Risk Assessment has revealed a variety of practices and circumstances at Nike, which, in many cases, indicate a high risk of audit failure under the scrutiny of a taxing authority."
In total, Nike could face fines of more than $530m, including $53.7m in the UK.
Nike did not immediately respond to requests for comment.
04:15 PM
Princess of Wales's parents' party business saved as buyer found
A party goods business owned by the Princess of Wales's parents has been sold after going into administration.
Associate editor Gordon Rayner reports:
Party Pieces, which was founded in 1987 by Carole and Michael Middleton, was bought by a company that sells teddy-bear making kits.
The 12 staff at the Berkshire-based firm were told on Thursday about the buyout, which comes after months of speculation about the company’s future.
Party Pieces Holdings, the parent company of the firm that once employed the Princess, had racked up a deficit of £1.35 million and the Middletons failed to find new investors or a buyer willing to take on the company with the entirety of the debt.
Instead, the firm was bought by Teddy Tastic Bear, one of several businesses owned by entrepreneur James Sinclair, through a device known as a pre-pack administration.
Here's why the business has suffered in recent years...
04:04 PM
Andrew Bailey warned that he risks causing a recession with further rate rises
Andrew Bailey has been warned that he risks plunging Britain into a recession later this year if the Bank of England’s rate-setters push ahead with further rises in borrowing costs.
Senior economics reporter Eir Nolsøe has more:
Andy Haldane, who previously served as the Bank's chief economist, has urged his former colleagues on the Monetary Policy Committee (MPC) to pause the current cycle of rate hikes.
The Bank last week raised interest rates from 4.25pc to 4.5pc in its 12th consecutive increase.
“What I’d be doing in this situation is probably pressing the pause button, actually,” Mr Haldane told the New Statesman.
“I think there’s a lot of tightening in the pipeline already, most of which we haven’t yet seen the full effects of, as it hits people’s mortgage payments later in the year. The recovery is still on pretty unsteady legs,” he added.
03:33 PM
Handing over
That's all from me today. You'll be guided through the evening's events by Adam Mawardi.
Take a look at this chart on what the EU has paid for imports of Russian energy since 2007:
in Q1 2022, the EU paid Russia Є43 bn for oil (black), gas (blue) and coal (red). That number in Q1 2023 is down to Є11 bn. Maybe this is progress, but this number should be zero. Any flow of cash to Russia enables Putin to keep his war economy going and puts pressure on Ukraine. pic.twitter.com/q4uUj6Vnzy
— Robin Brooks (@RobinBrooksIIF) May 18, 2023
03:27 PM
Oil prices fall as storage sites fill up
Oil prices have fallen amid rising stockpiles.
Brent crude, the international benchmark, has fallen 1.2pc to nearly $76 despite comments by Joe Biden that the US will resolve its debt crisis.
The President's attempt to improve optimism for the world economy could not stop West Texas Intermediate futures fall 1.1pc to nearly $72, after surging by almost 3pc on Wednesday.
Tamas Varga, an analyst at PVM Oil Associates, said that whilst a US debt default "cannot be ruled out, the chances of it are minimal for now".
Oil is still lower for the year as factors including US monetary tightening and uncertainty about China's economic recovery weigh on the demand outlook.
Russia's crude exports — seemingly unaffected by sanctions related to Moscow's war in Ukraine — have supported global supplies.
US crude inventories rose by 5 million barrels last week, the biggest gain since February, according to the Energy Information Administration.
03:14 PM
Climate protesters disrupt Lloyds AGM
Lloyds' AGM got off to a slow start after protesters from Extinction Rebellion interrupted chairman Robin Budenburg before he could begin his opening speech.
He got as far as saying "hello and welcome" before four protesters stood up and interrupted with speeches over the bank's contribution to financing fossil fuel projects.
The livestream of the AGM was paused for around 10 minutes before the chairman could continue.
Extinction Rebellion said Lloyds increased fossil fuel funding by $500m (£402m) in 2022 compared with 2021.
The campaign group asked Lloyds renounce the funding of fossil fuels altogether, and accused it of greenwashing.
It follows other British banking giants including Barclays and HSBC facing more significant disruption from climate protesters at their AGMs this month.
03:06 PM
'No decisions taken' on flexible working, says Lloyds boss
A separate union member at the Lloyds AGM read out a testament from an unnamed married couple who both work at the bank.
It said the policy will not allow them to look after their child who has additional needs.
Chairman Robin Budenberg responded:
At this stage we are conducting two pilots and have asked colleagues to share their views. I would stress that no decisions have been taken.
Any outcomes will be based on individual discussions between colleagues and their line managers.
He said he was proud of the bank for being leaders in the field with its flexible working policy, adding: "We want to do something that is fair for everyone."
03:04 PM
We didn't fuel house price boom, says Bank of England
The Bank of England has insisted it did not fuel a boom in house prices following the global financial crisis.
Governor Andrew Bailey told MPs that "real asset prices have not increased during QE", referring to the Bank's programme of quantitative easing, where it bought up bonds and assets in the aftermath of the credit crunch in 2008.
Instead, he said that the real surge in house prices happened in the decade leading up to 2007, which he said had helped create a "greater degree of inter generational inequality".
Deputy Governor Ben Broadbent insisted there has "not been some great huge boom in asset prices".
He said "really rapid growth of house prices" occurred between 1997 and 2007, on average 11.5pc a year, and that the average over the period of quantitative easing has been 4pc a year.
He told the Treasury select committee: "What is true is there has been rise in intergenerational inequality which occurred between 1995 and 2005.
"Anyone who happened to get into housing market before mid 90s are better off than those who bought first house after 2007."
He added: "The real value of UK equity prices today is where it was in 2005."
The Office for National Statistics said the average UK house price was £288,000 in February this year. That figure has increased 63pc since February 2007, when prices stood at £177,000.
The average UK house price was £61,000 in February 1997, increasing by 190pc a decade later.
02:52 PM
Petrofac boosted by £1.2bn Algeria contract
Petrofac shares have risen as much as 14.7pc after the oil services company was awarded a $1.5bn (£1.2bn) contract in Algeria as part of a joint venture.
It will carry out the downstream project west of Algiers with China Huanqiu Contracting & Engineering Corporation.
Petrofac's share of the deal has been valued at over $1bn.
Analysts at Barclays said the deal had "kicked off its recovery story" after its shares hit a record low in December following forecasts of an annual operating loss of about $100 million due to cost overruns in its largest division.
02:34 PM
Wall Street mixed at the opening bell
The Dow Jones Industrial Average has opened lower after Cisco shares fell amid slowing demand for its products.
The US's blue-chip index slumped 0.3pc to 33,318.93 after the opening bell despite Walmart's strong annual forecast and optimism over a potential deal to avoid a catastrophic debt default.
The broad-based S&P 500 fell 0.1pc to 4,154.63 while the tech-rich Nasdaq Composite rose 0.2pc to 12,525.53.
02:18 PM
US jobless claims fall after jump caused by fraud
Applications for US unemployment benefits fell by the most since 2021 after fraudulent claims boosted the numbers in previous weeks.
Initial unemployment claims fell by 22,000 to 242,000 in the week ended May 13, Labor Department data showed.
On an unadjusted basis, claims decreased by the most in two months, to 215,810, largely due to a drop in Massachusetts.
Some economists have been wary about drawing strong conclusions from the data amid reports that fraudulent claims have been behind the recent upward trend in filings.
Massachusetts accounted for nearly half of the nationwide increase in unadjusted claims in the week through May 6, and state officials said it was mainly due to fraud.
Continuing claims, which include people who have received unemployment benefits for a week or more and are a good indicator of how hard it is for people to find work after losing their jobs, edged down to 1.8m in the week ended May 6.
Lowest continuing claims print since March 3rd — not seeing the bank impact: pic.twitter.com/Nkow03MPhU
— Coin-er Sen 🪙 (@conorsen) May 18, 2023
02:08 PM
Sixth of shareholders vote against Next bosses' pay
One in six votes cast by Next shareholders have opposed the pay policy for the company's top bosses.
The company said 16pc of the votes submitted at the annual general meeting were cast against the policy.
One in 20 votes - 5.2pc - opposed last year's remuneration report, which handed a £4.4m total pay deal to chief executive Lord Simon Wolfson.
More than one in five (20.8pc) votes were cast against the re-election of Next chairman Michael Roney.
01:49 PM
Slow Alibaba growth fuels China recovery fears
Alibaba Group has again posted single-digit revenue growth, reinforcing concerns that a Chinese consumer spending rebound may not come as quickly as anticipated.
The company said it formally approved the spinoff of its cloud services division by distributing stock to shareholders, while exploring float options for its Cainiao logistics arm and Freshippo grocery chain.
Alibaba will also look for external financing for its international commerce division.
It reported sales of 208.2bn yuan (£23bn) for the March quarter, versus an average analyst estimate for 209.2 billion yuan.
Net income was 23.5bn yuan (£2.7bn), reversing losses a year ago thanks to once-off gains.
As China's largest e-commerce company, Alibaba remains a barometer for consumer demand in the country.
Its lackluster showing underscores how China may be recovering from years of zero-Covid restrictions at a slower pace than projected.
01:28 PM
Walmart boosts grocery market share
US retail giant Walmart has raised its full-year profit forecast after strong sales growth fuelled by gains in grocery and other household staples.
The company has been considered a winner amid rising inflation because of its ability to keep prices lower through economies of scale.
It pointed to gains in grocery market share in the United States with higher-income households.
Walmart now sees full-year adjusted profits of $6.10 to $$6.20 per share, up from the prior range of $5.90 to $6.05 following the results.
Profits were $1.7bn (£1.4bn), down 18.5pc from the year-ago period. Revenues were $152.3bn (£122.4bn), up 7.6pc.
In the Walmart US division, which accounts for more than two-thirds of sales, the company scored a lofty 7.4pc gain in comparable store sales.
Results in the United States benefited from a moderation in supply chain and freight costs.
Shares of Walmart rose 1.9pc to $152.30 in pre-market trading.
01:15 PM
Montana becomes first US state to ban Tiktok on personal phones
Montana has become the first US state to ban TikTok on personal mobile phones as its governor vowed to protect locals from Chinese surveillance.
Senior technology reporter Gareth Corfield has the latest:
The ban, described by Chinese-owned TikTok as an infringement on the right to freedom of speech, is the first such prohibition in the Western world.
It comes after intense scrutiny of the social media platform over fears that its Chinese owners could use the app to steal data from users.
National security laws in China mean any company can be secretly compelled to do the bidding of state officials, including spying on their behalf.
Greg Gianforte, the software engineer-turned-Republican governor of Montana, signed the ban into law on Wednesday.
This chart shows TikTok's massive growth since 2018.
12:39 PM
'Age of massive rises of house prices may be nearing an end,' says OBR
The "age of massive rises of house prices may be nearing an end", according to the government's spending watchdog.
David Miles, a senior economist at the Office for Budget Responsibility, said Britons buying property in coming years are unlikely to see the same vast uplift in house prices that past generations have enjoyed.
Slowing population growth and a rise in working remotely will likely mean that homes will appreciate less in value, according to Mr Miles.
"If anything, this unusual age of massive rises of house prices may be nearing an end," Mr Miles said in a speech.
He added: "Those forces driving them up are going to be much weaker I suspect, in the next 40 years than they have been in the past 40 years."
The average home cost £288,000 in February according to the Office for National Statistics, an increase of around 91pc since 2005.
House prices have risen faster in the UK than in many other similar countries because of constrained supply and large falls in real interest rates, Mr Miles said.
12:29 PM
Pound falls as investors cautious on UK economy
The pound has fallen back towards a three-week low against the dollar, as investors remained cautious after sterling's recent rally, with the economy stagnating and the labour market softening.
The pound was last down 0.4pc against a broadly stronger dollar and heading toward $1.24. On Wednesday it hit a three-week low.
Data on Tuesday showed Britain's jobless rate rose to 3.9pc in the three months to March, while basic pay increased 6.7pc.
TraderX strategist Michael Brown said:
You have persistently high core inflation, very slow growth and a softening labour market.
Things don't look great at the moment so it's perhaps no surprise to see sterling lower.
The dollar has benefitted from optimism around the debt ceiling, with US President Joe Biden and senior congressional Republican Kevin McCarthy underscoring their determination to reach a deal to raise the $31.4trn debt limit and avoid an unthinkable default.
12:05 PM
Home repossessions and arrears surge 50pc
The number of homes being repossessed and homeowners in arrears jumped in the first quarter of this year, according to figures from a trade association.
There was a 50pc increase in the number of homeowner mortgaged properties being repossessed in the first quarter of 2023, compared with the previous three months, UK Finance said.
Some 750 homeowner mortgaged properties were taken into possession in the first quarter of 2023.
UK Finance said the increase in repossessions is from a very low base, as cases make their way through the courts.
The number of buy-to-let homes being repossessed also increased.
UK Finance said that 410 buy-to-let mortgaged properties were repossessed in the first quarter of 2023, which was 28pc more than in the previous quarter.
In a further sign of borrowers struggling, the number of homeowners in arrears also ticked upwards by 2pc.
11:46 AM
Quantitative tightening not behind banking turmoil, says Bank of England
The Governor of the Bank of England denied there was a link between recent quantitative tightening - which saw the central bank reduce its stock of government bonds - and pressures in the wider banking sector.
Andrew Bailey told MPs at the Treasury Committee:
I don't there is any connection between quantitative tightening effects and the events in the banking system that we have seen in recent months, not least because the UK banking system has not experienced stress in recent months.
As we discussed, the Silicon Valley Bank UK failure was a very idiosyncratic issue in that it was a subsidiary of a bank that failed in the US.
11:23 AM
Improving property market expected to boost housebuilder Vistry
Housebuilder Vistry said it expects profit to grow this year despite pressure that has been squeezing many of the country's property businesses in recent months.
The company, formerly known as Bovis Homes, said it expects to make a pre-tax profit "in excess of £450m" during the current financial year.
It would be an increase from just over £418m in 2022. Shares have risen 3.8pc.
The builder said that it had a strong order book, although the number of forward sales had decreased to 1,408 in mid-May compared with 1,563 a year earlier.
Chief executive Greg Fitzgerald said:
We have continued to see improving market conditions and the group has traded in line with our expectations for the year to date.
The homes and places that Vistry is creating continue to respond directly to the needs of society, delivering mixed tenure housing for new communities across the country.
He said that Vistry was able to keep its costs down because of the size of the business, as companies and individuals have been forced to deal with runaway prices for the goods and labour they buy.
11:04 AM
Pace of quantitative tightening may increase, Bank of England tells MPs
The Bank of England may yet ramp up the pace of quantitative tightening, although it will not return its balance sheet to levels seen before quantitative easing began after the 2008 financial crisis, MPs have been told.
The Banks' balance sheet grew to around £1trn in the pandemic as asset purchases increased to £895bn in a bid to prop up the shutdown economy.
It has since shrunk to £880bn as quantitative easing has been unwound.
Governor Andrew Bailey told the Treasury select committee that the Bank wants to reduce the size of it balance sheet further to give it headroom to respond to events in the future, but indicated that it will remain in the hundreds of billions of pounds.
Deputy Governor Sir Dave Ramsden said the pace of quantitative tightening may increase, adding he cannot see its pace slowing.
10:47 AM
More companies face misconduct claims, says scandal-hit CBI
The new head of the beleaguered Confederation of British Industry (CBI) has said the lobby group is "not alone in facing issues around workplace misconduct".
Rain Newton-Smith told Bloomberg TV that she sees "many organisations" not dealing with the issue.
Dozens of organisations have cancelled their membership of the CBI, while Jeremy Hunt has said there is "no point" engaging with the organisation.
The CBI is battling for survival as members head for the exit amid police investigations into two cases of alleged rape.
10:22 AM
Bank of England's balance sheet will not return to pre-financial crisis levels
The Governor of the Bank of England is giving evidence to MPs about its programme of quantitative tightening.
Andrew Bailey said the Bank's balance sheet will not return to its levels before quantitative easing began before the global financial crisis.
It means the Bank of England will continue to hold more bonds than it did before 2008.
10:11 AM
Era of huge house price rises nearing end, says OBR economist
The age of huge UK property price increases may be coming to an end as population growth slows and working from home booms, according to a senior economist at the Office for Budget Responsibility.
David Miles, one of three members of the UK budget watchdog's top committee, said that changing working habits, a flattening population and an end to a decades-long fall in borrowing costs make explosive house price growth less likely.
In a speech at a Economic Statistics Centre of Excellence conference in London, he said:
Those forces driving them up are going to be much weaker, I suspect, in the next 40 years than they have been in the past 40 years.
If anything, this unusual age of massive rises of house prices may be nearing an end.
Mr Miles, who was also on the Bank of England's Monetary Policy Committee, said the UK has suffered particularly rapid
house price growth compared with other countries because it suffered from a weaker supply of housing as well as a bigger
fall in real interest rates.
10:00 AM
Apple chip supplier IQE raises £30m to avoid cash crunch
Apple supplier IQE's share price has dropped 12pc this morning as the company raised £30m to stave off a cash crunch.
Senior technology reporter Gareth Corfield has the latest:
The British company is making just under a tenth of its 650 staff redundant as bosses tighten their belts amid what they describe as a "semiconductor market downturn".
Results unveiled yesterday showed net cash inflow at the computer chip maker more than halved over the last year, down from £18.9m to just £8.9m.
Losses ballooned on paper to £73m, following a £62m writeoff of goodwill in IQE's wireless chip business.
Demand is slowing after the pandemic years, where chip shortages spurred the industry to ramp up production.
Now stock levels are high - and chipmakers such as IQE are hurting from a lack of demand.
09:46 AM
Premier Foods boosts sales as cash-strapped families turn to noodles
Super Noodles sales have surged at Mr Kipling maker Premier Foods as families seek to cut costs during the cost-of-living crisis.
Batchelors, which makes the snack, has now become the company's largest grocery brand, increasing revenues by over 20pc this year.
It comes as Premier Foods increased revenues by 11.8pc to more than £1bn, with adjusted pre-tax profits rising 13pc to £137.2m.
Chief executive Alex Whitehouse said:
We know that consumer budgets remain under pressure in the current environment and our broad portfolio of brands continue to provide great options to prepare and eat good value, delicious meals at home.
We are continuing to see consumers looking for convenient, affordable and tasty meal solutions and Batchelors and Nissin were two of our best branded performers in the year which benefitted from this trend.
Batchelors, well known for its tasty Super Noodles, has now become our largest grocery brand, increasing revenues by over 20pc this year.
09:34 AM
Gas prices fall as weather warms up
European natural gas prices resumed their decline as forecasts for warmer weather in parts of the region added to signs of weaker demand.
Benchmark front-month futures dipped below €31 for the first time since June 2021.
Prices are now less than a tenth of the record set last year, helped by seasonally high storage levels and flows of liquefied natural gas.
Central and northern Europe are set to see warmer weather next week, with cities including Berlin and Helsinki seeing
unusually high temperatures, forecaster Maxar Technologies said.
Even as supply glitches remain a risk, the continent finds itself on stronger footing following extreme volatility last
year, when Russia curtailed supplies.
Dutch front-month gas, Europe's pricing benchmark, were last 1.8pc lower at just over $31. The UK equivalent also edged lower.
09:24 AM
Tourism workers to go on strike
Workers at tourist attractions across London are to strike in a dispute over pay after voting overwhelmingly in favour of industrial action.
The GMB union said 900 of its members employed by the City of London Corporation will walk out on May 25 at attractions including Tower Bridge, Barbican, museums, gardens, parks and markets.
GMB London region organiser Anna Lee said:
This vote and support for strike action confirms how strongly our members feel and how this cost-of-living crisis is having such a devastating impact on them and their families.
This 'them and us' culture within the Corporation of London has to end.
It is not OK for workers to be using food banks whilst corporation bosses spend thousands of pounds of taxpayers' money on hospitality - while telling staff there's no money for pay.
Our members do not take this action lightly, but our demands for fair pay have been falling on deaf ears for months.
GMB calls on the City of London Corporation to properly value and respect their staff and return to the negotiating table.
09:13 AM
Union 'deeply concerned' over BT job cuts plan
The Prospect union, which represents thousands of managers at BT, has responded to the announcement of large scale job cuts by 2030.
John Ferrett, Prospect National Secretary, said:
Prospect are deeply concerned by the scale of these cuts. Announcing such a huge reduction in this way will be very unsettling for workers who did so much to keep the country connected during the pandemic.
As a union we want to see the details behind this announcement in order to understand how it will impact upon members and have demanded an urgent meeting with the chief executive.
We have always opposed compulsory redundancies in BT and has been able to ensure over the years that any reductions have been achieved on a voluntary basis.
Prospect has a partnership agreement with BT which governs how the company and the union manage change in the organisation.
We will be ensuring that the partnership agreement is fully adhered to during any consultations with BT over job reductions.
09:02 AM
Aston Martin tops FTSE 250 as China’s Geely to double stake
Aston Martin Lagonda's shares have surged after it said China's Geely Automobile Holdings will double its stake and become the UK sportscar maker's third biggest shareholder.
The transaction will unlock £95m for the British sportscar maker, whose shares rose as much as 25pc in early London trading.
As part of a £234m deal, Geely will acquire a 17pc stake in the company, purchasing 42m shares from chairman Lawrence Stroll's Yew Tree consortium along with 28m new shares, Aston Martin said.
Geely will also get the right to appoint one director on Aston Martin's board.
Aston Martin has perennially struggled with cash and roped in Saudi Arabia's Public Investment Fund as a shareholder last year as Mr Stroll looks to turn the carmaker around and pivot to battery-powered sports cars.
Analysts have in the past said that Aston Martin's lack of scale and precarious cash balance made it vulnerable.
As part of the agreement with Aston Martin, Geely agreed to a standstill until August 2024 to not acquire shares that will take its stake in the company to more than 22pc, the filing said.
08:50 AM
BT leads declines on FTSE 100 but market rebounds
The FTSE 100 recovered, tracking optimism in global markets, but shares of BT Group tumbled and touched over a three-month low after reporting plans to cut up to 55,000 jobs and weak cash flows.
BT Group dropped 8.6pc after UK's biggest broadband provider reported annual cash flows for the year at the lower end of expectations, and said it expects to cut up to 42pc of its workforce by 2030.
The FTSE 100 rose 0.5pc, reflecting an upbeat mood in global markets on hopes that Washington is edging closer to a deal to raise the US debt ceiling and avert a default.
Aston Martin said that Geely Automobile Holdings had committed to invest about £234m in the luxury carmaker, sending its shares up over 21pc.
The carmaker was the biggest gainer on the domestically focused FTSE 250, which added 0.3pc.
Burberry Group reported stronger-than-expected fourth-quarter sales, though shares of the luxury fashion brand lost 6.6pc.
08:34 AM
BT to cut up to 55,000 jobs - and replace a fifth with AI
BT is to cut up to 55,000 jobs by the end of the decade - with around 10,000 of those roles replaced by AI.
Our media and communications reporter James Warrington has been scrutinising the telecoms giant's latest numbers:
BT said its total workforce including contractors will fall from 130,000 to between 75,000 and 90,000 by the end of the 2030 financial year.
Mr Jansen said the new round of cuts will come through a reduction in use of contractors as BT's full-fibre broadband rollout ends.
Around 10,000 roles will also be replaced by automation thanks to artificial intelligence, he added.
The cuts, which represent more than 40pc of the workforce, mark a significant escalation of BT's cost-saving efforts as it looks to offset soaring inflation and energy costs.
In November, Mr Jansen increased the group's cost-saving target from £2.5bn to £3bn by the end of 2025. He warned of further job cuts but did not give a figure.
BT's last round of job cuts resulted in a 13,000 reduction in employees over three years.
08:21 AM
BT will need fewer staff once fibre broadband roll-out finished, says boss
BT Group's plan to cut by up to 55,000 jobs by the end of the decade comes as its new boss has been working through a transformation plan to build a national fibre network.
Chief executive Philip Jansen said after completing the fibre roll-out, digitising the way it worked and simplifying its structure, BT would rely on a much smaller workforce and significantly reduced cost base by the end of the 2020s.
He said: "New BT Group will be a leaner business with a brighter future."
The group's total number of workers would reduce from 130,000 to between 75,000 and 90,000 by its 2030 financial year at the latest, it said.
The bulk of its full-fibre network build will be completed by the time it reduces its workforce to between 75,000 and 90,000 by 2030.
Reporting full year results, Jansen said BT had made good progress while navigating an "extraordinary macro-economic backdrop".
However, free cashflow fell 5pc to £1.3bn, at the lower end of its guidance, due to increased cash capital expenditure.
08:12 AM
National Grid grows in the US
National Grid posted a strong full-year profit as its business grew in Britain and the US.
The sprawling power network reported adjusted earnings per share of 69.7 pence, just beating the 69.5 pence estimate of analysts. Underlying operating profit jumped to £4.6bn.
National Grid is a central pillar of Britain's transition to net zero emissions but also is working abroad.
The company welcomed Joe Biden's Inflation Reduction Act, saying it is "a major step forward for our zero fossil strategy" and has the potential to lower the cost of hydrogen and renewable natural gas.
National Grid's American arm runs pipelines in the northeast US in which it is preparing to use greener fuels.
However, the company warned in April that earnings might be hit after a measure in the Chancellor's Budget on tax expenses affected revenue from transmission and distribution.
The group also faces strict cost controls in the UK after Ofgem said in November that it would allow the utility to invest less than it hoped to until 2028.
08:04 AM
Markets move upwards as US default fears ease
The markets climbed in London as traders' appetite for risk was boosted by optimism over an eventual breakthrough for US debt-ceiling talks.
The FTSE 100 has risen 0.4pc after the open to 7,757.76 while the midcap FTSE 250 has lifted 0.3pc to 19,269.15.
07:55 AM
Burberry sales rise as Chinese shoppers splash the cash
Burberry sales were given a boost by Chinese consumers giddy on their regained freedom after the end of pandemic restrictions.
The British fashion company increased comparable store sales by 7pc in the year ending April 1, while adjusted operating profit rose to £634m. Both were better than analysts had expected.
Jonathan Akeroyd took over the running of the trench-coat maker more than a year ago promising to revive excitement in the brand.
He has since named a new designer, Daniel Lee, whose debut collection in February sought to reassert the "Britishness" of Burberry.
Revenue accelerated in the last quarter as growth rebounded in China to 13pc.
Burberry kept its guidance for its medium-term targets, however, adding it is "mindful" of the macroeconomic and geopolitical environment.
07:47 AM
Energy companies to pay £4m after overcharging households
Around 18,000 households are set to receive £4m in compensation after the regulator found suppliers Ovo Energy and Good Energy had overcharged customers during the energy crisis.
Ofgem said errors by the two suppliers meant some people were charged above the maximum rates allowed under either the energy price cap or the Government's Energy Price Guarantee scheme.
The affected households will receive a combined total of £2.7m from the two companies while an extra £1.3m will go to vulnerable customers in the UK.
The average amount paid to Good Energy customers will be £109 while Ovo customers will receive an average of £181, Ofgem said.
07:37 AM
Royal Mail blames strikes for £1bn loss
Royal Mail has blamed strike action for helping send it slumping to a full-year loss of more than £1bn.
The group's owner, International Distributions Services (IDS), revealed Royal Mail swung to an operating loss of £1.04bn for the year to March 26, against earnings of £250m the previous year.
On an underlying basis, Royal Mail saw operating losses of £419m, against profits of £416m the previous year.
IDS said the losses were due to crippling industrial action, while it also booked a £539m writedown on the value of Royal Mail due to the impact of strikes and the "current risk backdrop".
IDS overall posted a £748 million annual operating loss, against profits of £577m the previous year, but IDS said it was targeting a return to underlying earnings over 2023-24.
The figures come after Royal Mail last month agreed a deal with the Communication Workers Union (CWU).
But it faces further turbulence with chief executive Simon Thompson recently announcing he will step down by the end of the year and news last week that Royal Mail is being investigated for failing to meet its delivery targets in the past year.
07:35 AM
EasyJet cuts losses by a quarter
EasyJet has slashed first-half net losses on strengthening demand from holidaymakers and despite jumping costs.
The group faced a loss after taxation of £307m in the six months to the end of March, down 28pc from a loss of £431m a year earlier, it revealed in its annual results.
Chief executive Johan Lundgren said: "EasyJet's optimised network combined with the strong demand seen for flights and holidays, enhanced revenue capabilities and operational resilience means we enter the summer with confidence.
"Recent research has shown that travel is the number one priority for household discretionary spend, with customers safeguarding their holidays and increasingly opting for low-cost airlines and brands which provide great value."
07:24 AM
BT plans to cut 42pc of jobs
BT plans to cut its workforce by as much as 42pc over the next seven years as it battles to reduce costs.
Total workers, including employees and contractors employed by third parties on BT's behalf, will drop to 75,000 to 90,000 by 2030 from about 130,000 currently.
Chief executive Philip Jansen has been quietly shrinking the workforce over the last five years as he works to grow profit, targeting savings of £3bn a year by the end of 2025.
The company's been weighing more dramatic cuts since at least 2019.
Shares fell 1.5pc to 148.10 pence on Wednesday. The stock is up 32pc so far this year.
07:03 AM
PM unveils £18bn of Japanese investment in Britain
Rishi Sunak has announced £18bn of new investment by Japanese businesses in the UK.
The agreement covers mostly in clean energy, as well as a bilateral "semiconductor partnership" aimed at boosting supply chain resilience amid fears over Chinese interference in Taiwan.
The "Hiroshima Accord" seeks to deepen economic, security and tech cooperation between the two countries, Mr Sunak said as he landed in Japan ahead of the G7 summit.
Stress testing and strengthening supply chains are a key aim of the leaders in the wake of Russia's war in Ukraine and the Covid-19 pandemic, with their reliance on chips from Taiwan high on the agenda. The UK will unveil its long-awaited Semiconductor Strategy tomorrow.
Mr Sunak said he and Japanese Prime Minister Fumio Kishida are "closely aligned on the importance of protecting peace and security in the Indo-Pacific and defending our values, including free and fair trade".
Trading house Marubeni Corporation and its partners intend to invest some £10bn in the UK over the next decade, largely in offshore wind.
Sumitomo Corporation will invest about £4bn in offshore wind projects off the coasts of Suffolk and Norfolk, while Mitsubishi Estate and Mitsui Fudosan will invest £3.5bn to build affordable housing and office space.
06:56 AM
Deutsche Bank to pay £60m to settle lawsuit by Epstein accusers
Deutsche Bank has agreed to pay $75m (£60.1m) to settle a lawsuit by women who say they were abused by the late financier Jeffrey Epstein, and accused the German bank of facilitating his sex trafficking.
The agreement resolves claims filed last year in New York by an anonymous woman on behalf of herself and other accusers, alleging Deutsche Bank did business with Epstein for five years knowing he was engaged in sex-trafficking.
Epstein had been a Deutsche Bank client from 2013 to 2018. He died in August 2019 in jail while awaiting trial for sex trafficking, in what New York City's medical examiner called a suicide.
A Deutsche Bank spokesman declined to discuss the agreement, but referred to a 2020 statement in which the bank acknowledged error in making Epstein a client.
He also said Deutsche Bank has invested more than €4bn to bolster its controls, processes and training, and hired more people to fight financial crime.
David Boies, one of the accusers' lawyers, said in a statement that Epstein's abuses "could not have happened without the collaboration and support of many powerful individuals and institutions. We appreciate Deutsche Bank's willingness to take responsibility for its role."
Deutsche Bank agreed to the settlement after US District Judge Jed Rakoff ruled in March that the lawsuit filed by an anonymous victim may proceed against it, as well as a separate but nearly identical suit filed by another victim against JPMorgan Chase.
It was not immediately clear how the lender's settlement might affect JPMorgan, which faces larger lawsuits by Epstein's accusers and by the US Virgin Islands, where the financier had a home.
Epstein was a JPMorgan client from 1998 to 2013, a period when he allegedly trafficked many more women and girls.
Court papers have outlined many details about the bank's alleged ignoring or turning a blind eye to Epstein's activities.
JPMorgan declined to comment.
It is separately suing Jes Staley, a former private banking chief who had been friendly with Epstein, to help cover its losses in the two lawsuits it faces.
Staley is also a former Barclays chief executive. Tesla's Elon Musk is among those who have been subpoenaed in the JPMorgan litigation.
06:42 AM
Good morning
Deutsche Bank has agreed to pay $75m (£60.1m) to settle a lawsuit in which victims of Jeffrey Epstein's sexual abuse accused the bank of facilitating his sex-trafficking operation.
The lender agreed to settle after US District Judge Jed Rakoff ruled in March that the lawsuit filed by an anonymous victim may proceed against it, as well as a separate but nearly identical suit filed by another woman against JPMorgan Chase.
A Deutsche Bank spokesman declined to discuss the agreement, but referred to a 2020 statement in which the bank acknowledged error in making Epstein a client.
5 things to start your day
1) Brussels tariffs are endangering net zero, carmakers warn | Crackdown on imported batteries is happening too fast for industry to prepare
2) Starmer vows to wage war on property-owning ‘blockers’ preventing new development | Labour leader promises to redesign planning rules to unlock explosion in housebuilding
3) Andrew Bailey admits Britain is suffering a wage-price spiral | Bank of England governor signals UK faces a longer crisis than expected in battle to tame inflation
4) Barclays to hire 200 traders in Paris as City struggles after Brexit | French capital closer to becoming Europe’s main trading hub as banks expand presence
5) Working from the office must be the 'default', says Hunt | The Chancellor fears British businesses would struggle to generate new ideas if employees were allowed to work remotely indefinitely
What happened overnight
Asian stock markets followed Wall Street higher on on hopes US political leaders can reach agreement to avoid a potentially disastrous default on government debt.
The Shanghai Composite Index gained 0.6pc to 3,302.46 and the Nikkei 225 in Tokyo advanced 1.5pc to 30,533.64. The Hang Seng in Hong Kong rose 1.3pc to 19,807.06.
The Kospi in Seoul was 0.6pc higher at 2,509.30 and Sydney's S&P-ASX 200 added 0.6pc to 7,239.60.
New Zealand and Southeast Asian markets also rose.
It comes after Wall Street stocks rallied on Wednesday on hopes for an agreement on the debt ceiling crisis after both President Joe Biden and House Speaker Kevin McCarthy said they are confident there will be no debt default.
The Dow Jones Industrial Average closed 1.2pc higher at 33,420.77. The broad-based S&P 500 gained 1.2pc to 4,158.77, while the tech-rich Nasdaq Composite Index advanced 1.3pc to 12,500.57.
The yield on 10-year Treasuries advanced two basis points to 3.56pc.
