Closing post
Time for a recap….
The outlook on China’s sovereign credit rating has been cut to negative today by rating agency Moody’s Investors Service.
Moody’s warned that Beijing would need to bail out local and regional governments and state-owned enterprises that were struggling with rising debts, hampering efforts to boost investment and growth.
China’s finance ministry said it was “disappointed” with Moody’s decision when the economy was on the mend. It said the agency’s concerns were “unnecessary” when the recovery “has been advancing steadily”.
Rupert Soames, the former chief executive of the outsourcing company Serco, has been named as the next president of the Confederation of British Industry, as the scandal-hit lobby group aims to rehabilitate its image following allegations of sexual misconduct.
Soames, the chair of Smith & Nephew, a London-listed medical tech group, will take up the role in the new year before being formally elected by CBI members at its next annual general meeting in June.
Trading in London today has been disrupted by technical problems that temporarily prevnted the buying and selling of small company shares.
Only stocks on the FTSE 100 and 250 indices, plus some overseas companies, were tradable during two different outages today, as the LSE battled to fix its latest technical problems.
In the energy industry, a Guardian investigation has shown that Sellafield, Europe’s most hazardous nuclear site, has a worsening leak from a huge silo of radioactive waste.
Ministers are facing calls for answers, after the Guardian revealed Sellafield had been hacked by groups linked to Russia and China.
In retail, UK households are expecting to spend an extra £105 this Christmas, as shrinkflation hits the size of festive chocolates, mince pies and cheese.
UK retailers are on course for a budget Christmas after shoppers cut back on the purchase of non-essential items in November to cope with rising food prices.
But in better news for households, grocery inflation has slowed:
UK car sales have risen again, with a 9.5% increase in registrations last month.
But sales of electric cars fell 17%, which analysts are attributing to a fall in Tesla sales.
Troubled Thames Water is likely to be called back to be questioned by MPs over concerns raised by its auditors that its parent company could run out of money by April.
In the US, job vacancies have fallen to the lowest since 2021, with 8.7m openings recorded.
Inflation across the OECD has hit a two-year low….just as bond prices rally as investors bet that interest rates have peaked….
Reports: Brussels proposes three-year delay to EV sales tariffs
The Financial Times are reporting that Brussels has proposed delaying the introduction of tariffs on electric vehicle sales between the UK and EU by three years.
They say:
The European Commission will on Wednesday approve the plan, officials familiar with its thinking told the Financial Times. The 27 member states must then agree, with the vast majority in favour.
Brussels proposes three year delay to EV sales tariffs between UK and EU https://t.co/f4vwPZA3XF
— FT Europe (@ftbrussels) December 5, 2023
This should please the automotive industry in the UK, and across Europe, which had been pushing for the tariffs to be delayed.
Under the Brexit trade agreement, from 1 January any electric vehicle exported from the EU to the UK or vice versa must be at least 45% made in either the EU or the UK or it will be subjected to a tariff.
Several manufacturers have called for the tariff to be suspended for three years to allow time for new battery factories and their associated supply chains to get up and running.
Bloomberg is also reporting that the European Commission is set to recommend delaying tariffs on electric vehicles traded with the UK by three years.
They explain:
France has long resisted a straightforward extension, preferring instead alternatives to mitigate the impact of the tariffs on the industry. Paris had signaled in recent weeks that it was open to finding a flexible solution.
EU Set To Propose Three-Year Delay to Tariffs on UK EV Trade
— Alex Wickham (@alexwickham) December 5, 2023
Big scoop @AlbertoNardelli @europressos >> https://t.co/SqsbTWfjCy
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