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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Japan’s ruling party wrapped up campaigning to choose the country’s next prime minister with three clear frontrunners in what was the Liberal Democratic party’s most open leadership contest for years.

The latest polling pointed to a wide-open contest between Sanae Takaichi, who could become Japan’s first female prime minister, Shinjirō Koizumi, who would be its youngest, and Shigeru Ishiba, a divisive LDP stalwart making his fifth bid to lead the party.

The winner from a record field of nine candidates will be picked on Friday to succeed Fumio Kishida, who announced his resignation in August, and is then expected to lead the ruling party into a general election that must be called by the end of October 2025.

The leadership contest came at a sensitive moment for the Japanese economy, which has re-emerged as a favoured destination for foreign investment while grappling with an ageing and shrinking population.

Traders said the candidates’ divergent positions on how to steer Japan’s economy could spark further volatility in financial markets.

In particular, the leading candidates differ over the Bank of Japan’s efforts to “normalise” monetary policy and raise rock-bottom rates after years of ultra-loose conditions.

On other critical policies, however, there is more alignment, such as the urgency of restarting Japan’s shuttered fleet of nuclear power plants and pressing ahead with expanded defence spending in the face of a more assertive China. 

Takaichi, a right-wing revisionist, who has pitched herself as the heir to the late former prime minister Shinzo Abe’s “Abenomics” programme of fiscal spending and low rates, has suggested that rate rises were “stupid”.

She is seen as a potential boost for Japanese stocks, though analysts suspect any bump would be short lived.

Takaichi also appears keen to visit the Yasukuni Shrine, where Japan’s war casualties, including war criminals, are honoured, as prime minister, despite the risk that such a move would enrage Beijing, as it has in the past, and potentially refreeze recently thawed relations with Seoul.

Ishiba, a former defence minister, has proposed an “Asian Nato”, which could force countries in the region to pick sides in a US-China rivalry.

Nomura Securities chief market strategist Naka Matsuzawa said markets tentatively expected a victory for Koizumi, the 43-year-old US-educated former environment minister, who in his campaign has advised cash-strapped households to give up drinking imported mineral water to free up disposable income.

Under a government led by Koizumi or Takaichi, there would probably be a positive tailwind for stocks as foreign investors took a fresh look at Japan, said Astris Advisory strategist Neil Newman.

“Under Ishiba, I think we could see the stock market stall, relations in Asia damaged and foreign investors ignoring the change in leadership,” Newman said, adding that it was unlikely that any of the candidates could influence the direction of the Bank of Japan on tightening monetary policy.

“We will see higher rates, a stronger yen and continuing outperformance of the banking sector regardless,” he said.

But it was nearly impossible to predict the poll’s result, political analysts and LDP parliamentarians said, after the ruling party’s old organisational system of factions was dismantled in the wake of a funding scandal.

The initial vote, which polls both LDP MPs and rank-and-file party members and is expected to yield a result at 2pm on Friday, is unlikely to produce a clear winner. A run-off between the two leading candidates, polling MPs and representatives of local party chapters, will be held immediately afterwards, meaning a winner should be declared later in the afternoon.

Media surveys of MPs’ voting intentions put Koizumi ahead of the others, while polls of the general party membership show Ishiba and Takaichi neck-and-neck, and both some way ahead of Koizumi.

But attempts to accurately poll rank-and-file members are complicated by the LDP’s refusal to share membership lists with media, analysts noted.

The LDP leadership race frontrunners

Sanae Takaichi, 63

Current economic security minister, former newsreader. Would be Japan’s first female prime minister

Seen as torchbearer for “Abenomics” policies of former PM Shinzo Abe

Favours fiscal spending and loose monetary policy, has suggested interest rate rises are ‘stupid’ at this point

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Proposed creating a cabinet-level intelligence bureau

Shinjirō Koizumi, 43

US-educated son of charismatic ex-PM Junichiro Koizumi. Former environment minister would be Japan’s youngest PM

Positioned as a change candidate, but likely closest to Kishida policy agenda

Broadly supports BoJ policy normalisation, neutral on fiscal policy

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Would favour close alignment with US foreign policy

Shigeru Ishiba, 67

Former banker, in politics since 1980s. Former defence minister.

Contesting LDP leadership for fifth time. Popular with voters but less so in his party

Proposes an ‘Asian Nato’ and favours more independence from US in foreign policy

Favours normalising monetary policy

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A MAJOR energy firm with more than five million customers is set to pay thousands of customers a £150 discount on their bills.

EDF Energy is giving eligible customers extra cash through the Warm Home Discount to help lower bills this winter.

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The eligibility requirements for the Warm Home Discount are the same as last year.

Between now and December, the government will issue letters to households that are eligible for the scheme.

EDF Energy has now said that it will aim to pay the discount by the end of February 28, 2025.

However, payments could begin being issued as early as next month.

To qualify for the Warm Home Discount, you need to claim either the guaranteed credit element of pension credit or a different qualifying benefit form the list below:

If you weren’t claiming any of the above benefits on August 11, 2024, you won’t be eligible for the payment.

Where someone claims a qualifying benefit, the government will assess their energy costs based on the type, age and size of property. 

This means that you may not be considered eligible for the Warm Home Discount if you live in a more energy-efficient property for instance, even if you receive a qualifying benefit.

However, this rule doesn’t apply to recipients of the guarantee credit portion of pension credit.

Around 800,000 pensioners are eligible for pension credit but not claiming it.

As well as missing out on a £300 winter fuel payments, they won’t get the £150 Warm Home Discount payment.

Even if you weren’t getting pension credit on August 11, thousands of pensioners who apply for the benefit now can still qualify for the £150 payment.

This is because pension credit rules allow first-time claimants to backdate their benefit entitlement by three months.

So you’ll need to launch your claim by Friday, October 11 and then successfully get it backdated to cover the August 11 Warm Home Discount qualifying date.

But if you fail to apply before this date you’ll miss out.

We’ve explained everything you need to know about EDF Energy‘s scheme below.

Do I need to apply for the discount?

Households in England and Wales don’t have to apply to get the cash and receive it automatically.

You should look out for a letter between October 2024 and early January 2025 telling you:

• You’re eligible and you’ll get the discount automatically; or
• You might be eligible, and you need to give more information.
• The letter will tell you to call the helpline by 29 February 2024 to confirm your details.

If you don’t get the letter by early January 2024 and you think you’re eligible, you need to call the helpline on 0800 030 9322.

If you’re eligible, your electricity supplier will apply the discount to your bill by 31 March 2025. 

Some Scottish households do have to apply for the discount.

In Scotland there’s a “core group” that’ll receive an automatic payment and a “broader group” which has to apply for the scheme with their energy provider.

You’ll need to check with your energy supplier directly to see the eligibility requirements and details on how to apply.

The scheme will have more applicants than places, so make sure you apply as soon as possible.

EDF Energy customers can apply by visiting edfenergy.com/help-support/whd-application-form.

How will I receive the discount from EDF Energy?

If you pay by direct debit or on receipt of your bill the £150 Warm Home Discount will be added to your electricity account as a credit.

Once it has been applied, it will show on your next bill.

If you have a traditional prepayment meter, EDF Energy will send you a letter explaining how you’ll get your discount.

You’ll receive a Post Office voucher in the post and instructions on redeeming it. 

If you have a smart prepayment meter, EDF Energy will automatically credit your meter with the discount.

WETHERSPOONS pubs are known for being inside some of the UK’s most beautiful buildings, from old cinemas to converted bingo halls.

And one of the most beautiful is in a trendy seaside town.

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The Samuel Peto in Folkestone is in a former church with many of the features still in place.

The Samuel Peto is one of my local Wetherspoons, having moved to the seaside town last year.

Funded by Sir Samuel Morto Peto, who was also an MP, he was known for being one of the major Victorian railway designers, connecting more than 750 miles of track across the UK.

As well as being part of the team behind Nelson’s Column, he also designed the Salem Chapel which opened in 1874.

It was Grade II listed in 1975 and has been serving booze as a Wetherspoons since 1998.

And if you want to see some of that history, a lot of it is intact inside the pub.

The painted cloud ceilings are a classy touch, with the huge organ still sitting at the back of the pub.

Ornate chandeliers and wooden balustrades line the interiors, with huge stained glass windows letting in most of the light.

It’s certainly one of my favourites I’ve ever been to.

While it isn’t quite on the seaside – that accolade is reserved for the biggest ever Wetherspoons in Ramsgate – it is just a short walk from the beach.

But going inside is a cosy affair, with many of the booths being perfect to settle in for the night thanks to the wooden privacy screens between each of them.

Expect a classic Wetherspoons walk to the toilets – if you’re at the top you have 94 steps to go.

The food is what you’d expect from a Wetherspoons. I often go for the pizza or chicken curry which are exactly what you’d expect for the pub grub – nothing special but certainly enough for an affordable dinner out.

And I’ll always return for the cheap booze – where else can I get a glass of wine for less than £2?

Sure, the bar is almost constantly sticky, and it’s definitely an older crowd that you will find in the day.

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But local couple Holly and Pete say they love the crowd it brings.

They told Sun Online Travel: “We love the crowd that the Wetherspoons brings.

“There’s always a bunch of eclectic characters in there, so there’s never a dull moment.

“And it’s beautiful when the sun comes in through the huge stain glass windows”.

And if you really want a different venue for the evening, you can head to the nearby Brewing Brothers on the harbour for some great beers, or Burrito Buoys for amazing frozen cocktails.

Why you should head to the seaside town of Folkestone

The Sun’s Deputy Travel Editor Kara Godfrey has revealed why its a great seaside break, being a local herself.

“Folkestone was named the Best Place to Live in the southeast in a 2024 study by the Times.

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“And having made the move myself, I can see why.

“There is the Harbour Arm, with trendy bars and eateries ranging from Japanese to Mexican, or the multicoloured high street with local cafes and shops.

“There are amazing local vineyards and breweries, although I can hope on the Channel Tunnel and be in France within 35 minutes if I fancied a cheap booze run.

“It even has F51, the worlds first multi storey skate park with climbing wall too.

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“I can see why it is called the new Brighton too – not only is it less than an hour by train from London, but house prices are a fraction of the cost compared to the other seaside destination.”

We’ve also rounded up some of the most beautiful Wetherspoons in the UK you can visit.

And the world’s most beautiful McDonald’s has reopened – here’s how to find it.

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Argentina’s poverty rate has surged to 52.9 per cent under its government’s austerity programme, in a warning sign for libertarian President Javier Milei as his popularity begins to falter.

The rate, published by the national statistics agency on Thursday, is the worst in two decades and 11.2 percentage points higher than in the second half of 2023, when it stood at 41.7 per cent, meaning 3.4mn Argentines have fallen into poverty this year.

Milei, who took office in December, has slashed public spending in an effort to bring down annual inflation that peaked at close to 300 per cent in April. The price increases have eroded the purchasing power of workers and pensioners.

Economists say the root cause of the high inflation is the money printed to fund spending by previous left-leaning Peronist governments, but the removal of price controls and a devaluation of the peso under Milei have also contributed.

Milei’s spokesperson, Manuel Adorni, on Thursday claimed Argentina would have tipped into hyperinflation without the austerity programme. “They had left us on the cusp of becoming a country where practically all the residents are poor,” he said ahead of the data’s publication.

The government has struggled to pull the country out of a deep recession during a collapse in consumer spending, and a drop in industrial activity and construction because of inflation and austerity.

Opposition politicians say the cost-cutting is making the economy worse. “The government’s relentless austerity is battering working families and the elderly, deepening the crisis instead of generating solutions,” Victoria Tolosa Paz, a lawmaker for the Peronist bloc in Congress, said on X after the data was published.

Polls in recent weeks have shown Milei’s popularity ratings, which have hovered reliably around 50 per cent since his victory in last November’s election, have dipped.

A closely watched index of confidence in the government compiled by Torcuato Di Tella university fell 14.7 per cent in September, by far the biggest fluctuation this year.

The share of Argentines with a positive view of Milei dropped 7 percentage points between August and September to 40 per cent, according to pollster Poliarquía, although overall approval of his government fell only two points, to 53 per cent.

Cristian Buttié, director of pollster CB Consultora, said his numbers showed Milei’s support falling 4.2 per cent in September from August, to 46.4 per cent.

He said there was “a particularly sharp drop” among retirees, following Milei’s veto of an increase in pension spending approved by Congress in August.

At least 136,000 jobs have been wiped out since Milei took office, and experts say the losses may be greater in the country’s massive informal sector.

But official data published on Wednesday showed economic activity had grown 1.7 per cent month on month in July, compared with a 0.6 per cent increase projected by a Bloomberg analysts’ poll. Activity was down 1.3 per cent year on year, much less than analysts expected.

But Buttié cautioned the news would “only help Milei if and when the improvement becomes palpable for the average citizen”.

“For now it seems we’ve entered a recession climate, a feeling that things are worse than before. [If it wants to succeed] the government has to regain the narrative that things are moving in the right direction,” he added.

BARCLAYS has become the latest major lender to make significant changes to its mortgages.

The high-street bank has shortened the amount of time customers have to lock in a new interest rate ahead of their current deal ending.

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So, if you are a mortgage holder nearing the end of your fixed term, the clock is ticking to negotiate a new offer.

The length of time a borrower with Barclays has to secure a new fixed term deal has dropped from six months to three.

This is in line with similar moves by Halifax, Lloyds, Nationwide, and Santander in recent months. 

The changes at Barclays will come in from September 25, and apply to customers who already hold a mortgage product with the bank and are looking to switch to another deal.

Choosing a new deal before your current ones ends means you can secure a good deal now in case interest rates rise later on.

If at the end of your current deal you find a better rate, you can choose that instead as there’s no penalty for ditching the one you chose before the end of the term.

Barclays said the move was down to greater stability in the mortgage market, and that over 70% of Barclays customers applying for product transfers did so within the last three months of mortgage terms meaning the extended window was no longer necessary.

A Barclays spokesperson, says: “In a more stable mortgage market and with rates coming down, the majority of our customers are choosing to apply for transfers within 90 days before their mortgage matures. 

“In response, we will be moving back to a product transfer window of 90 days, as we continue to deliver the best value and product range to our customers.”

At the start of the month, Halifax and Lloyds reduced the time frame for those remortgaging from six to four months.

Nationwide and Santander made the same move in June.

Other lenders, such as HSBC, NatWest and Virgin Money still offer customers six months to lock in their new deal.

An estimated 700,000 loans are up for renewal in the second half of 2024, says industry body UK Finance.

A real concern for borrowers needing to remortgage is how much fixed rates have risen in the last few years.

The average two-year fixed rate deal has increased from 2.34% in December 2021, to 5.56% as of September 2024.

Meanwhile, the average five-year deal has risen from 2.64% to 5.20%, according to the latest data from Moneyfacts.

Different types of mortgages

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We break down all you need to know about mortgages and what categories they fall into.

A fixed rate mortgage provides an interest rate that remains the same for an agreed period such as two, five or even 10 years.

Your monthly repayments would remain the same for the whole deal period.

There are a few different types of variable mortgages and, as the name suggests, the rates can change.

A tracker mortgage sets your rate a certain percentage above or below an external benchmark.

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This is usually the Bank of England base rate or a bank may have its figure.

If the base rate rises, so will your mortgage but if it drops then your monthly repayments will be reduced.

A standard variable rate (SVR) is a default rate offered by banks. You usually revert to this at the end of a fixed deal term, unless you get a new one.

SVRs are generally higher than other types of mortgage, so if you’re on one then you’re likely to be paying more than you need to.

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Variable rate mortgages often don’t have exit fees while a fixed rate could do.

The second half of the year has also been marked with repossessions, highlighting the financial struggles many are under right now. 

UK Finance says that 980 homeowner mortgaged properties were repossessed in the second quarter of 2024.

This is an 8% increase compared to the previous quarter, and a 31% uplift on the same quarter in 2023.

But it’s not all doom and gloom. There is in fact a positive outlook on the housing market. 

The Bank of England reduced the base rate for the first time since March 2020 in August, dropping the rate from 5.25% to 5%.

As a result, lenders have already started to follow suit and drop their fixed rates.

In fact, Nationwide is leading the way, currently offering a 3.74% home purchase plan deal.

Rachel Springall, finance expert at Moneyfacts Compare, said: “Each lender will have their own processes and timescales for getting applications through, so they can change the window of opportunity from time to time to cope with demand, but also as a reflection on changing interest rates. 

“Interest rates have been falling, so condensing the window can help lenders avoid re-applications. The same window can extend, depending on the situation of the market. 

“Borrowers would be wise to seek out independent advice from a broker to navigate the deals available, but ensure they allow a couple of months to refinance before their current deal ends.”

The move also comes as Barclays announced a reduction in rates by as much as 0.34% for new buyers and those remortgaging. 

Meanwhile a major building society is now lending first-time buyers up to six times their income for a mortgage.

How to get the best mortgage deal

If your mortgage deal is nearing the end of its term, you should start to compare rates now and speak to a mortgage broker to assess your options. 

It is then worth speaking with your current lender to see what deal they might be able to offer you. 

Getting the best rates depends entirely on what’s available at any given time.

There are several ways to land the best deal.

Usually the larger the deposit you have the lower the rate you can get.

If you’re remortgaging and your loan-to-value ratio (LTV) has changed, you’ll get access to better rates than before.

Your LTV will go down if your outstanding mortgage is lower and/or your home’s value is higher.

A change to your credit score or a better salary could also help you access better rates.

And if you’re nearing the end of a fixed deal soon it’s worth looking for new deals now.

You can lock in current deals sometimes up to six months before your current deal ends.

Leaving a fixed deal early will usually come with an early exit fee, so you want to avoid this extra cost.

But depending on the cost and how much you could save by switching versus sticking, it could be worth paying to leave the deal – but compare the costs first.

To find the best deal use a mortgage comparison tool to see what’s available.

You can also go to a mortgage broker who can compare a much larger range of deals for you.

Some will charge an extra fee but there are plenty who give advice for free and get paid only on commission from the lender.

You’ll also need to factor in fees for the mortgage, though some have no fees at all.

You can add the fee – sometimes more than £1,000 – to the cost of the mortgage, but be aware that means you’ll pay interest on it and so will cost more in the long term.

You can use a mortgage calculator to see how much you could borrow.

Remember you’ll have to pass the lender’s strict eligibility criteria too, which will include affordability checks and looking at your credit file.

You may also need to provide documents such as utility bills, proof of benefits, your last three month’s payslips, passports and bank statements.

Once you have taken a look at all your different options, you will want to consider the most important aspects. 

These include your current rate, the terms and length and any exit fees, as well as your loan-to-value (LTV).

When your fixed rate ends you will automatically roll on to your lender’s standard variable rate (SVR), and these often are considerably higher than a standard fixed rate.

These can be as high as nearly 8% so switching before the end of your current term is a high priority.

Jaguar Land Rover (JLR) will spend half a billion pounds upgrading a factory for electric vehicle production, it has been announced.

The manufacturer said the investment would transform its historic Halewood facility on Merseyside to support the production of electric vehicles, alongside existing combustion and hybrid models.

The move is part of a £15bn global investment by the car giant in electric vehicles announced in 2023 alongside plans in to produce the first emission-free model at Halewood in early 2025.

JLR said it had already spent £250m on new car production lines, machinery, people and digital technology at the Merseyside plant, with plans for £250m more over the coming years.

JLR has not announced which electric model would be manufactured at Halewood first.

However, the investment would allow the factory to produce electric versions of its Range Rover Evoque and Discovery Sport models alongside the existing combustion and hybrid versions, the company said.

JLR said the factory upgrades would include robots, a new body shop capable of producing 500 vehicle bodies per day and new ovens for drying paint.

The company, owned by India’s Tata Motors, said it was also investing a total of £18bn in its reimagine programme, which aimed to have all its vehicles electric-only by 2030.

Barbara Bergmeier, executive director of industrial operations, said Halewood would be the company’s first “all-electric production facility”.

She added the site had been the “heart and soul of JLR in the north-west of England for well over two decades”.