Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Britain is considering imposing sanctions against far-right Israeli ministers, Sir Keir Starmer has revealed, as pressure grows on Israel over its conduct in Gaza, the occupied West Bank and Lebanon.
Lord David Cameron, the former Tory foreign secretary, had been planning to blacklist Israeli finance minister Bezalel Smotrich and national security minister Itamar Ben-Gvir ahead of the general election, he revealed this week.
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Asked about the Labour government’s view on the proposal by Liberal Democrat leader Sir Ed Davey, the UK prime minister told MPs on Wednesday: “We are looking at that.”
Davey drew attention to Smotrich’s remarks this summer, in which the far-right minister suggested it might be “justified and moral” to starve 2mn people in Gaza. Ben-Gvir also praised settlers suspected of murdering a teenage Palestinian in the West Bank last year as “heroes”.
Starmer condemned the “abhorrent” comments by the Israeli ministers and highlighted “really concerning activity” in the West Bank. He added: “The humanitarian situation in Gaza is dire. The death toll has passed 42,000 and access to basic services is becoming much harder.
“Israel must take all possible steps to avoid civilian casualties, to allow aid into Gaza in much greater volumes and provide the UN humanitarian partners the ability to operate effectively.”
Foreign secretary David Lammy said on Wednesday that Britain, France and Algeria had called for an urgent meeting of the UN Security Council to address the “dire” situation in northern Gaza, where he said access to basic services was worsening.
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His intervention came after the US issued an ultimatum at the weekend to Benjamin Netanyahu’s government to take “urgent and sustained actions” to improve the dismal humanitarian situation in Gaza, or jeopardise the supply of military aid from Washington.
The UK on Tuesday unveiled a raft of fresh sanctions targeting illegal outposts and organisations supporting extremist Israeli settlers in the West Bank.
Cameron said earlier this week that he had been “working up” plans to designate Smotrich and Ben-Gvir in the days before the general election was called in May.
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The proposal was then considered “too much of a political act” to pursue during the six-week purdah period before British voters headed to the polls, Cameron added.
Speaking to the BBC, he branded the two Israeli ministers “extremist” and urged Starmer to consider sanctioning them to put pressure on Israel to comply with international law.
The prime minister’s official spokesperson declined to provide further details on the sanctions under review, but said: “We will continue to take action to challenge those responsible for illegal settlement and violence.”
In the past 24 hours I’ve written more than 100 WhatsApp messages.
None of them were very exciting. I made plans with my family, discussed work projects with colleagues, and exchanged news and gossip with some friends.
Perhaps I need to up my game, but even my most boring messages were encrypted by default, and used WhatsApp’s powerful computer servers, housed in various data centres around the world.
It’s not a cheap operation, and yet neither I nor any of the people I was chatting with yesterday, have ever parted with any cash to use it. The platform has nearly three billion users worldwide.
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So how does WhatsApp – or zapzap, as it’s nicknamed in Brazil – make its money?
Admittedly, it helps that WhatsApp has a massive parent company behind it – Meta, which owns Facebook and Instagram as well.
Individual, personal WhatsApp accounts like mine are free because Whatsapp makes money from corporate customers wanting to communicate with users like me.
Since last year firms have been able to set up channels for free on Whatsapp, so they can send out messages to be read by all who choose to subscribe.
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But what they pay a premium for is access to interactions with individual customers via the app, both conversational and transactional.
The UK is comparatively in its infancy here, but in the Indian city of Bangalore for example, you can now buy a bus ticket, and choose your seat, all via Whatsapp.
“Our vision, if we get all of this right, is a business and a customer should be able to get things done right in a chat thread,” says Nikila Srinivasan, vice president of business messaging at Meta.
“That means, if you want to book a ticket, if you want to initiate a return, if you want to make a payment, you should be able to do that without ever leaving your chat thread. And then just go right back to all of the other conversations in your life.”
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Businesses can also now choose to pay for a link that launches a new WhatsApp chat straight from an online ad on Facebook or Instagram to a personal account. Ms Srinivasan tells me this is alone is now worth “several billions of dollars” to the tech giant.
Other messaging apps have gone down different routes.
Signal, a platform renowned for its message security protocols which have become industry-standard, is a non-profit organisation. It says it has never taken money from investors (unlike the Telegram app, which relies on them).
Instead, it runs on donations – which include a $50m (£38m) injection of cash from Brian Acton, one of the co-founders of WhatsApp, in 2018.
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“Our goal is to move as close as possible to becoming fully supported by small donors, relying on a large number of modest contributions from people who care about Signal,” wrote its president Meredith Whittaker in a blog post last year.
Discord, a messaging app largely used by young gamers, has a freemium model – it is free to sign-up, but additional features, including access to games, come with a pricetag. It also offers a paid membership called Nitro, with benefits including high-quality video streaming and custom emojis, for a $9.99 monthly subscription.
Snap, the firm behind Snapchat, combines a number of these models. It carries ads, has 11 million paying subscribers (as of August 2024) and also sells augmented reality glasses called Snapchat Spectacles.
And it has another trick up its sleeve – according to the website Forbes, between 2016-2023 the firm made nearly $300m from interest alone. But Snap’s main source of revenue is from advertising, which brings in more than $4bn a year.
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The UK-based firm Element charges governments and large organisations to use its secure messaging system. Its customers use its tech but run it themselves, on their own private servers. The 10-year old firm is in “double digit million revenue” and “close to profitability”, its co-founder Matthew Hodgson tells me.
He believes the most popular business model for messaging apps remains that perennial digital favourite – advertising.
“Basically [many messaging platforms] sell adverts by monitoring what people do, who they talk to, and then targeting them with the best adverts,” he says.
The idea is that even if there is encryption and anonymity in place, the apps don’t need to see the actual content of the messages being shared to work out a lot about their users, and they can then use that data to sell ads.
“It’s the old story – if you the user, aren’t paying, then the chances are that you are the product,” adds Mr Hodgson.
A MAJOR price comparison firm is handing a £250 car insurance fee back to drivers and £11 million has already been claimed.
GoCompare is offering customers the free excess refund reward when they purchase car insurance.
The price comparison site has revealed that its customers have been millions through its £250 Excess Refund Reward since the scheme began in July 2019.
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The Excess Refund Reward allows any customer who purchases a car insurance policy through GoCompare to opt in and receive money back when the claim is settled.
For example, if your total excess is £300, you pay this to your insurer, and GoCompare refund £250 after your claim is settled.
The price comparison firm will refund you if you have damage to your car, if you’re at fault and have comprehensive insurance.
You can also get a refund for claims for fire or theft as well as uninsured driver claims.
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However, GoCompare stress that you will not be able to use your free excess cover for windscreen repair and replacement, damage caused by a breakdown or misfuelling or claims from outside the UK.
Repairs to your own car, without comprehensive cover are also not included in the free excess cover.
GoCompare say that making a claim is a straightforward process and you should be able to fill out the online form in about ten minutes.
Once you’ve submitted your claim, and it’s been approved, expect to get your refund within five working days.
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An excess is included on most insurance policies and is the amount that the policyholder needs to pay upfront before they can make a claim.
Regarding car insurance, the excess is split into two parts: compulsory and voluntary.
The real Go Compare man shows off impressive opera skills
The insurer sets the compulsory excess while the policyholder can choose the voluntary excess – then when you make a claim the two are added together and must be paid before a claim can be made.
Previous research from Go.Compare revealed that only 49 per cent of motorists fully understand the meaning of voluntary and compulsory excesses on their policy.
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Meanwhile, only 7 per cent of drivers aged 18 to 24 said they understood compulsory excess.
Tom Banks, car insurance expert at Go.Compare, said: “Seeing that over £11 million has been refunded to our customers through this offer is amazing.
“The process of making a claim on an insurance policy can be a stressful one so we hope that this refund reward can help ease some of the stresses, both mentally and financially.
“Our aim is to help motorists make informed decisions when it comes to insurance, making sure they get the cover they need and help them save some money – the excess refund reward is a great example of this.
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“It’s great to see that so many customers have been able to benefit from the scheme.”
And the destinations you can fly to from there are the coastal resorts of Bodrum, Dalaman and Antalya, when changing at Istanbul Sabiha Gökçen Airport.
To take advantage of the cheap flights, Brits have to sign up to the airline’s loyalty programme BolBol, although this is free.
The flights don’t include taxes and have to be booked either today or tomorrow.
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However, travel can take place anytime between March 30 and October 2025 next year.
The cheapest fares are likely to sell out quickly, with 200,000 seats on offer.
The tickets are part of the airline’s Light package which only includes an underseat bag.
But you can easily add checked luggage for just €5 (£4.20), as part of the deal.
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Inside the ‘amazing’ Turkish hotel with on-site waterpark, seven pools & bowling alley
Jet2 also launched more flights to Bodrum this year, extending into the winter season.
Antalya
Antalya welcomes more than one million Brits a year.
Beaches follow the city’s crescent-shaped bay, with a pebble beach and crystal-clear water along the flank bordering the new city and a long expanse of sand stretching away from the picturesque old port.
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It is home to the the Land of Legends theme park — visible for miles around thanks to its towering Disney-style castle.
Dalaman
Dalaman’s famous attraction is the rock tombs of Fethiye, built into the huge cliff faces.
This article is an on-site version of our FirstFT newsletter. Subscribers can sign up to our Asia, Europe/Africa or Americas edition to receive the newsletter every weekday. Explore all of our newsletters here
In today’s newsletter:
Billionaires fight over satellite internet in India
Hong Kong slashes its liquor tax
Switzerland’s wealth managers bank on a future in Asia
Good morning. We start with the latest on the race to launch satellite internet service in India.
Elon Musk appears to have won a contest with Indian telecom tycoons Mukesh Ambani and Sunil Bharti Mittal over the way satellite spectrum should be awarded.
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Ambani, Asia’s richest man and chair of oil-to-digital services conglomerate Reliance Industries, along with Mittal’s Bharti Airtel, have been trying to persuade India’s government to auction satellite spectrum, in line with the usual competitive method in the mobile market they dominate, rather than just allocate it.
Musk, chief executive of SpaceX and owner of the Starlink satellite broadband service, has voiced his opposition to the auction method in posts to his social media site X.
And on Tuesday, Indian communications minister Jyotiraditya Scindia said there were no plans afoot to auction space spectrum. “Much appreciated!” Musk posted on X in response.
One industry expert described the tussle as an “ego battle”. They said: “It’s more about ensuring that the telecom industry remains in control of the local players rather than foreigners coming in and dictating their agenda.” Read the full story.
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Here’s what else I’m keeping tabs on today:
Economic data: Japan, Singapore and Hong Kong report trade statistics.
Monetary policy: The European Central Bank is overwhelmingly expected to cut interest rates by 0.25 percentage points, to 3.25 per cent.
TSMC: Taiwan Semiconductor Manufacturing Company, the world’s largest chipmaker, reports quarterly earnings.
Five more top stories
1.Hong Kong has slashed its liquor taxas the Chinese territory seeks to boost nightlife and revive its struggling economy. Until now, spirits with alcoholic content of more than 30 per cent, including brandy, whisky and gin, had been subject to a 100 per cent duty in Hong Kong. Here’s the new duty rate for spirits announced in chief executive John Lee’s annual address.
2.Woodside Energy, Australia’s largest oil and gas developer, will delist its shares from the London Stock Exchange next month. The company said yesterday that the cost of maintaining the secondary listing was no longer justified, in the latest blow to the UK market’s status as a natural resources hub.
3. An Israeli air strike killed the mayor of a southern Lebanese city and at least 15 other people after it struck municipal buildings in Nabatiyeh, the health ministry said. The attack raised fears that Israel is widening its campaign against Hizbollah’s Shia militants to include government offices and civilian officials.
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4. Elon Musk has given nearly $75mn to help Donald Trump’s bid to win back the White House. The Tesla and X owner made several multimillion-dollar donations during the third quarter to his political action committee, according to a federal filing released yesterday, giving the group a huge budget to support Trump’s re-election bid.
More on the US election: Kamala Harris is stepping up her media appearances with direct appeals to Black voters as she struggles to take on Donald Trump with just three weeks to go in the White House race.
5. Luxury shares tumbled yesterday after industry bellwether LVMH reported a bigger than expected fall in quarterly sales as a result of weak consumer demand in China. The group’s chief financial officer Jean-Jacques Guiony told analysts that consumer confidence in mainland China had reached Covid-era lows.
FT Wealth
For three centuries, Switzerland’s stability and geopolitical neutrality — combined with its strict adherence to banking discretion — supported a thriving and world-leading wealth management industry. But in recent years, those foundations have begun to crack, while Hong and Singapore have emerged as competing hubs for offshore wealth. Now, some European wealth managers are relocating to Asia as they seek to capitalise on the growth in the region.
We’re also reading . . .
Chinese economy: Investors are counting on a large and well-targeted fiscal stimulus, writes the FT editorial board. A market rally that peters out would do more harm than good.
Shameless: The brazenness of US politicians in the face of scandals is a defining feature of the era. Ed Luce asks: has America lost its shame?
Cheapflation: Prices of inexpensive goods have risen faster than more expensive varieties. Governments and businesses are now trying to figure out who is to blame, writes Brooke Masters.
PETROL and diesel prices falling an average ten per cent have seen inflation dip to the lowest level in three years.
Official figures yesterday showed consumer price inflation fell to 1.7 per cent in September — down from 2.2 per cent in August.
That is below the Bank of England’s two per cent target, lower than forecasts and way down on the 11 per cent rate in October 2022.
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Myron Jobson, analyst at Interactive Investor, said: “The pace of price rises hasn’t been this low since the days of Covid lockdowns.”
The drop boosted money markets’ predictions of interest rate cuts next month — which would be a big help for businesses, borrowers and mortgage holders.
Markets have put a 91 per cent likelihood of the Bank lowering rates from five per cent to 4.75 per cent at its meeting in November.
Some economists highlighted Governor Andrew Bailey’s recent comments that the Bank could be more “aggressive” and suggested a cut to 4.5 per cent.
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However the drop in inflation will deal a blow to millions of Brits on benefits.
Rises in universal credit, and disability living and carers allowance, are pegged to September’s figure.
It means the standard allowance of universal credit, for a single person under 25, is expected go up in April by just £5.30 a month to about £317.
For a couple over 25, the rise is likely to be £10.50 to £628 a month.
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Danni Hewson, at investment platform AJ Bell, said: “Last year the standard allowance for a couple over the age of 25 jumped by almost £40 a month.”
UK inflation rate rises for the first time since December and what it means for your money
The City is still nervous, with inflation set to rise above two per cent in October due to higher energy bills following the regulator raising its price cap.
THE fizz has gone flat at Louis Vuitton Moet Hennessy after around £10billion was knocked off its value yesterday amid slowing demand for luxury goods.
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LVMH, which has called on Game of Thrones actress Sophie Turner to be the latest face of Louis Vuitton handbags, recorded a 5 per cent slip in fashion and leather goods, the first fall since the start of the pandemic.
Shares in LVMH fell as much as 7 per cent, closing down 4.5 per cent, valuing the business at £250billion.
Champagne sales fell, knocking sales in its wine and spirits division by 8 per cent.
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LVMH is counting on Beyonce’s new whisky brand, SirDavis, for an uplift.
LVMH said sales in Asia fell by 16 per cent in the past three months
FIRMS’ TAX FEAR
SHOPS, pubs and restaurants face a £2.63billion “double whammy” hit from business rates rises, unless the Chancellor makes good on reforms.
Business rate bills are based on September’s inflation figures.
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Research by property firm Altus Group forecasts the 1.7 per cent inflation rate announced yesterday means business rates will jump by £488million in England.
Some £224million will be paid by retail, hospitality and leisure.
Small firms also face the loss of the last government’s 75 per cent rates discount.
JUST EAT’S SWELL
TAKEAWAY delivery firm Just Eat has posted a 6 per cent rise in sales to £1.5billion in the UK and Ireland.
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The firm yesterday said a 1 per cent drop in food orders was offset by higher menu prices, bringing its best UK sales in three years.
The company recently launched a tie-up with adult retailer Lovehoney and is focusing on partnerships with retailers including Boots and Lush.
Just Eat’s US sales slumped by 12 per cent.
Boss Jitse Groen said the UK continued with “positive momentum”.
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JOHN LEWIS will lend customers up to £35,000 in a partnership deal with digital lender Zopa.
The department store said loans can be approved in minutes, with no “hard searches” affecting credit scores and a “representative” 9.9 per cent interest rate.
CALL FOR BRAKE ON CARS BAN
THE boss of Vertu Motors car dealership group has called on the government to delay its 2030 net zero deadline.
It comes amid manufacturers now rationing petrol and diesel motors to avoid fines if they sell too many this year.
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Vertu’s Robert Forrester said some drivers buying a car this winter may have to wait for new year when next quotas kick in.
Manufacturers have to ensure 22 per cent of all the vehicles sold this year are electric, or face a £15,000 fine for every car over the limit.
Vertu posted a 3 per cent rise in half year sales to £2.5billion.
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Profits slumped by 27 per cent to £22million following minimum wage increases.
Mr Forrester also took aim at the Chancellor’s proposed tax changes amid warnings it could destroy London’s junior Aim stock market, where Vertu launched in 2006.
He said he would “urge the Government to carefully consider the impact”.
INN’S JOB VACUUM
PREMIER INN is turning to robot vacuum cleaners at its hotels to reduce human staff.
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Boss of parent company Whitbread, Dominic Paul, did not rule out more redundancies as he ramps up cost cutting by £20million to £60million.
Whitbread has already axed 1,000 jobs in a year.
The group posted a 22 per cent tumble in half year pre-tax profits to £309million.
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