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

Yes, yes, everyone’s very excited about gold:

Sequential record highs for so-called analogue bitcoin have understandably been attracting a lot of attention, given normally what’s good for gold…

…is generally seen as bad for the world.

Over on Unhedged, our esteemed and dapper colleague Rob Armstrong has been writing about the rally for a while, and took a look at the metal’s mysterious new marginal buyers in today’s newsletter. He looked at several potential culprits:

— Jewellery demand
— Geopolitics
— Investors seeking cash alternatives
— Fiscal profligacy

Also gazing at the gold stuff is Bank of America, which in a note today posed the question “Is gold a safer investment than Treasuries?”.

Their most immediately relevant finding is that — after a long period of gains driven by Chinese demand — this is now a Western-led rally:

Flows have changed markedly in recent months. Indeed, China’s non-monetary gold imports fell from an all-time high in 1Q24 to multi-year lows over the summer, as the government signalled another round of monetary and fiscal stimulus, boosting equity markets. At the same time, Western investors stepped in, after holding back for a while as they waited for the Fed to kick-start the monetary easing cycle.

Notably, non-monetary market participants have increased their exposure on both the physical and paper markets, and our contrarian analysis suggests the latter is not overbought. Still, markets are also now factoring in a no-landing scenario for the US and a slower pace of rate cuts. This may curtail the potential upside near-term. There is also a risk that gold may give back some of the recent gains, although we ultimately see prices supported at $2,000/oz.

In terms of motives, BofA is firmly Team Fiscal Profligacy:

10-year real rates have historically been a critical gold price driver. Yet the correlation between the two assets has weakened: a decline in rates is still bullish, but higher rates do not necessarily put pressure on gold. This reflects a number of factors, not least concerns that fiscal policy in both the US and elsewhere may not be sustainable. Indeed, the Committee for a Responsible Federal Budget notes that the national debt is projected to reach a new record high as a share of the economy only three years from now, well within the next presidential term, pushing up interest rate payments as a share of GDP. In turn, this makes gold an attractive asset, so we reaffirm our $3,000/oz target. Indeed, with lingering concerns over US funding needs and their impact on the US Treasury market, the yellow metal may become the ultimate perceived safe haven asset.

As spending and debt climb globally, this dynamic will only increase, BofA’ analysts reckon:

Neither Kamala Harris nor Donald Trump seem to prioritise fiscal consolidation, but the US is not alone. An analysis of policy platforms in advanced economies suggests policymakers strongly favour fiscal expansion… Central banks in particular could further diversify their currency reserves: the share of gold holdings is now at 10%, up from 3% a decade ago.

They add (our emphasis):

Spending commitments will in all likelihood increase, as countries adapt to and tackle climate change, demographics become more challenging and defence spending likely goes up. The IMF estimates that this new spending could amount to 7-8% of GDP annually on average for the global economy by 2030. Ultimately, something has to give: if markets become reluctant to absorb all the debt and volatility increases, gold may be the last perceived safe haven asset standing.

It’s an interesting possibility, and fits with the conventional goldbug argument: global debt is surging (hello, $100tn), and the gold long thesis follows that eventually this debt will have to be monetised, which will cause inflation, and gold will keep its value etc etc. If that argument appeals, more power to you: go buy some gold and just hope everybody keeps their nerve.

Does that make gold the ultimate safe haven investment? Well, no — that’s probably still a war rig, or a lot of tinned beans.

Further reading:
— Explaining the commodity warehouse trade with scripture (FTAV archives)

HUGE changes to Buy Now, Pay Later rules that will protect shoppers are set to kick in within months under major new plans by the government, The Sun can reveal.

The new Labour government has confirmed that it intends to legislate to bring the Buy Now, Pay Later (BNPL) sector under the City watchdog’s rule by early 2025

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This would mean the regulation would kick in in early 2026, The FCA said.

Proposals to regulate BNPL products were first touted in 2021, but have been repeatedly delayed.

We revealed earlier this year that the previous government had shelved the plans over fears that it would drive BNPL firms out of the market during a cost of living crisis.

But the lack of regulation around BNPL is bad news for shoppers as it means these firms don’t have to follow the same rules as major credit lenders and customers aren’t protected if things go wrong.

However, in an exclusive interview, economic secretary to the Treasury Tulip Siddiq told The Sun that the government has now finalised its “bespoke” plans and intends to pass the legislation “as soon as possible” in early 2025.

The plans will bring the products under FCA regulation while ensuring they also adhere to a large proportion of the Consumer Credit Act and Section 75, which give shoppers various rights.

The Treasury will run a short six-week consultation ending November 29 to iron out any final changes with stakeholders.

This would enable them to pass the legislation early in the New Year.

The City watchdog, the Financial Conduct Authority (FCA), will then have to run its own short consultation.

“The whole government is really behind this policy – the chancellor is really keen on it – because we don’t want a situation where people are trying to manage their debt and end up making it worse, which is what’s happening now,” Ms Siddiq said.

“But, we don’t want to get rid of BNPL, as there is a need in the market for it.”

What will the new rules mean for shoppers?

If a product or firm is regulated, it means that customers are covered by certain protections if they are treated unfairly or something goes wrong with their product or service.

We understand the current plans will mean the following:

Firms will have to operate in consumers’ best interests – or face FCA enforcement action

This means firms will have to be clear and transparent about any late fees, interest, or if they could affect customers’ credit ratings and how.

They should also signpost customers towards debt help in any correspondence.

“Firms will be under the supervision of the FCA who can bring enforcement action [against them] if we feel they are not treating consumers right or don’t have the consumers’ best interests at heart,” Ms Siddiq told The Sun.

Firms will have to carry out strict affordability checks

Ms Siddiq added that affordability checks will be the “number one” thing the FCA will be supervising.

Banks, for example, must review customers’ credit histories and financial situations to ensure they aren’t lending more money than they can afford.

But BNPL providers aren’t currently required to carry out such stringent checks, although some firms, like Klarna, have introduced them voluntarily.

Shoppers will be able to complain to the Financial Ombudsman Service (FOS) if they feel they’ve been treated unfairly

Consumers who deal with regulated financial firms are protected by the FOS, which settles disputes between companies and customers, if things go wrong.

But BNPL users can’t take complaints to the FOS if they have an issue.

“This supervision means there are certain rights consumers will have in terms of referring a complaint to the Financial Ombudsman Service (FOS), which you can’t do at the moment,” Ms Siddiq explained.

Firms will largely have to adhere to the Consumer Credit Act

Consumer credit in the UK is regulated by the Consumer Credit Act, which means these firms have to adhere to certain rules.

For example, firms are required to provide certain information documents and must advertise their products in a certain way.

Ms Siddiq said BNPL firms will largely have to follow these rules.

However, it is understood the Treasury has created bespoke plans to remove certain requirements around interest rates, as this doesn’t apply to BNPL firms.

It has also removed certain requirements around sending paper forms as BNPL is largely online-based.

Number of people relying on BNPL is growing

Image: Economic secretary to the Treasury Tulip Siddiq speaks to Citizens Advice workers about BNPL

By Laura Purkess, consumer features editor and consumer champion

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I was invited to join City minister Tulip Siddiq in speaking to Citizens Advice staff at a branch in Southwark, London, about Buy Now Pay Later and I was blown away by how passionately the workers wanted to get this regulation over the line.

These workers hear day in, day out from people who have spiralled into debt that has followed them around for months or years after getting accepted for a BNPL product “in seconds”.

And they said some of the worst actors are sending people threatening letters with no explanation of where they can get proper debt help.

Some people are coming into branches with a pile of letters they’re too scared to open.

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One staff member told me the number of people who rely on BNPL for basic living costs is clearly rising over time – but it’s those who are most vulnerable who are turning to it and ending up in an even worse situation.

“The majority of our clients are very vulnerable, English is not their first language, they’re not ‘offsite ‘au fait’ with this kind of thing, and they end up in a lot of trouble,” one worker told me.

“At the moment, if we hit a wall with a firm, we can’t direct them to anywhere else, we can’t point them to the FOS, that’s the end of the line.

“The sooner these regulations come in the better.”

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Shoppers will be able to return items for a full refund if they are faulty or were mis-sold

The new plans will also bring BNPL products under Section 75 – a type of protection for shoppers which means they can return faulty items within a certain timeframe.

Currently, as BNPL products don’t have this protection applied to them, shoppers may not be able to get a refund or replacement of broken or damaged items bought this way.

Dame Clare Moriarty, chief executive of Citizens Advice, said of the plans: “We’ve long called for regulating the BNPL market and are glad to see the government making this a priority. We know the difference this can make to so many people’s lives.

“The FCA must act swiftly to set rules that protect consumers from unaffordable borrowing once the necessary legislation is in place.”

Sheldon Mills, executive director for consumers and competition at the FCA, added: “We welcome the government’s consultation on the regulation of buy now pay later products.

“We’re already preparing and will consult on the rules firms will need to follow once the law is changed. We will ensure consumers are appropriately protected while enabling firms to innovate and grow.’   

What will it mean for people who rely on BNPL?

Like the previous government, Ms Siddiq is keen to ensure BNPL remains a viable payment method for people who need it.

Instead, the hope is that it will prevent people from taking on more than they can realistically afford to pay back.

“I’m not that concerned [about restricting access to BNPL] as I think what they will probably do is not borrow at such a high level,” Ms Siddiq told The Sun.

“If the firm carries out affordability checks and look at their credit ratings, they will say they can still get some form of credit, but they might also be able to come up with a repayment plan to pay it back.”

‘A real opportunity to provide protection’

Ms Siddiq has been working on BNPL regulation plans for several years and has regularly called for the rules to be implemented from the Opposition bench.

“I started looking into it a bit more and asking the government if they would do something, and they sort of paid lip service but didn’t do anything and they kept pushing it back,” she said.

So when the Labour Party won the general election in July, she decided to make it a top priority.

The plan was to confirm the plans within Labour’s first 100 days in government – a deadline they have just about missed.

Ms Siddiq was keen to get it right and has spent the past few weeks – and years – speaking with major players in the BNPL market to make sure the plans would work.

“I realised if we did win the election, this was a real opportunity to provide some protection for consumers and my own constituents,” she said.

“If you are using a BNPL product, you are probably struggling, you don’t use it on a whim, so for me it was about giving those people protection and rights.”

Sebastian Siemiatkowski, Co-founder and CEO of Klarna said: “Congratulations to Tulip Siddiq and the government on moving quickly! They have been working with the industry and consumer groups long before coming into office.

“We’re looking forward to carrying on that work to put proportionate rules in place that protect consumers while fostering growth.” 

Consumer champion Martin Lewis has since posted on X, formerly Twitter: “The last Chancellor promised to regulate, then the tumbleweed rolled as he went silent, so I am delighted the new Government has quickly restarted the process.

“Too many are in trouble with multiple BNPL repayments, leading to debt-chasing and credit file damage. 

“Regulation will mean firms must be overt that it’s a debt, have proper affordability rules, and will crucially let people go to the ombudsman if things go wrong.”

If you’re struggling with debt, there is plenty of free help available.

You can contact Citizens Advice’s advice line on 0800 144 8848 or speak to someone via chat on its website.

Charity Turn2Us, which helps people in financial need, can be contacted for free on 0808 802 2000 Monday to Friday between 9am and 5.30pm.

Workers at Meta have reportedly been sacked for abusing the tech firm’s meal voucher system, such as using it to buy toothpaste and washing powder.

Other breaches of the policy included sharing the vouchers with others or going over budget, according to people who said they work at Meta.

There are differing accounts over how much warning, if any, the owner of Instagram, Facebook and WhatsApp gave the workers before firing them.

Separately, the company has reportedly cut jobs across the business. Meta has been contacted for comment.

Meta staff are given $25 (£19) for lunch, $20 for breakfast, and $25 for dinner in vouchers which are meant to be used for ordering food from Grubhub, the US name for takeaway website Just Eat.

Posts on anonymous work social message board Blind appear to confirm elements of the story, originally reported by the Financial Times.

One user wrote that more than 30 people were fired last week because they used the credits for “non-food items, shared credits with people, or went above budget”.

Examples of the non-food items bought included toothpaste, toothbrushes and wine glasses.

“They were given a warning to stop which most of them did, but were still fired three months later even after stopping,” the user said.

Some repeated the claim the staff were warned, though other users wrote that there were no warnings.

The company has also reportedly made job cuts at WhatsApp, Instagram and Reality Labs, its virtual reality business responsible for the Oculus headset.

Jane Manchun Wong, a former security engineer at Meta, said on Wednesday that she had lost her job as part of the wider layoffs.

“I’m still trying to process this but I’m informed that my role at Meta has been impacted,” she wrote on X, formerly Twitter.

Ms Wong was hired just over a year ago as a software engineer after making 2022’s Forbes 30 under 30 list.

The layoffs were first reported by Verge, with a spokesperson telling the tech publication: “A few teams at Meta are making changes to ensure resources are aligned with their long-term strategic goals and location strategy.

“This includes moving some teams to different locations, and moving some employees to different roles. In situations like this when a role is eliminated, we work hard to find other opportunities for impacted employees.”

SAVERS looking for a top rate are being warned to act quickly after inflation fell by more than expected.

Savings rates have fallen since August when the Bank of England cut its base rate from 5.25% to 5%.

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The rate is a key benchmark used by high street banks to set the interest rates it offers customers on borrowing and savings.

Inflation this week fell to 1.7% , the latest official figure reveal, which could prompt the central bank to slash rates again.

Rachel Springall, finance expert at MoneyFactsDaily, said savers may wish to “act quickly”.

She explained: “Those looking for guaranteed return may wish to act quickly to grab a top rate as there are expectations for interest rates to come down over the next couple of months.”

“Savers need to prepare themselves for interest rate cuts, so if fixed-rate bond or fixed Cash ISA rates plummet, savers may wish to choose a longer-term deal to secure a competitive rate for the next few years.”

A fixed-rate on savings means you have an account that locks away your money for a set period of time in exchange for a guaranteed interest rate.

It’s also known as a fixed-term bond. You may be able to choose how long your savings are locked away for, or it may be an amount of time set by your lender. 

Locking in now could mean you secure e higher rate before they are cut.

These type of accounts are different to an easy-access account which lets you get hold of your cash immediately, but has a rate of interest that can change at any time.

Last month, and for the first time since January, the average interest rates for both fixed-term and easy access savings accounts declined across the board.

What’s on offer

There are only a few fixed deals currently on the market offering interest of 5%.

Two of the 5% deals are one-year fixes from the Union Bank of India.

The first offers 5% interest on a minimum deposit of £1,000 while the other offers the same on a minimum investment of £5,000. 

The third is from Conister Bank which also offers 5% interest on a minimum deposit of £5,000 over one year. 

There are a number of different savings accounts, but the fixed type often offers the most bang for your buck if you are looking to save money over a long period of time.

That is because if you fixed before a base rate cut your rate would stay the same.

Other examples include notice accounts which offer slightly lower rates in exchange for more flexibility when accessing your cash.

These accounts don’t lock your cash away for as long as a typical fixed bond account.

There are also regular savings accounts and easy-access accounts, which give you quick access to your money at a lower return.

Springall said: “Challenger banks and building societies continue to offer some of the top returns and have the same deposit protections in place as the more familiar high street banks, so there is little reason to overlook them in favour of a well-known brand.

“Whichever account savers decide to open, its essential they pick one that suits their needs, but if it’s an easy access account, make time to review the rate regularly.”

If you are looking to save and do not need access to your money for a few years then a two-year fix might be for you.

The best deal is from Market Harborough Building Society which offers 4.61 interest over a two year period.

However, you will have to invest a minimum of £10,000. Interest on this deal is paid yearly.

If you are looking to stow away your money for away for longer, a three-year fix could also be an option.

The more competitive option on the market for a three-year fix is by Principality Building Society.

It is offering 5% interest on a minimum of £500. With this type of account, the interest is paid on the anniversary of when you opened your account.

Four-year fixes operate just like all other fixed accounts, the only difference is you are kept away from your savings for longer.

Principality Building Society again has the best offer for four-year fixed deals.

The bank is offering 5% interest on a minimum investment of £500.

A cash ISA is a type of savings account that offers tax-free interest on your money.

This means you can earn interest on your savings in a bank or building society without paying tax.

You can save up to £20,000 each year tax-free in a cash ISA.

Virgin Money has the most competitive fixed one-year ISA.

The bank is offering 4.61% interest and the minimum amount you need to pay in a quid.

If you are looking for a two-year fixed ISA, State Bank of India is offering interest of 4.50% but the minimum you need to invest is £1,000.

If you are keen on something more long-term, UBL UK is offering customers 4.31% interest if they create a three-year fix ISA.

What is going on with interest rates?

Experts believe that September’s low rate of inflation could prompt the BoE to cut rates again.

This could single the end of attractive deals on fixed savings accounts, which have been slowly dwindling since the initial rate cut back in August.

Alice personal finance analyst at Bestinvest said that “locking in a top rate now” before the best deals disappear could be a “sensible strategy”.

Inflation, which measures how quickly the prices of things increase over time, fell below the Bank of England‘s 2% target for the first time in three years.

It’s important to note that when inflation drops it doesn’t mean that prices have stopped rising, it just means they are doing so at a slower pace.

The BoE can make changes to interest rates as a way to control inflation and keep it on target.

In recent years inflation has been far higher, creating the cost of living crisis, and the bank responded by hiking rates.

This has been bad news for borrowers especially homeowners with mortgages as interest rates on loans are far higher.

But it’s been good news for those with cash in the bank as rates on savings increased.

But as inflation falls that looks set to go into reverse with saving rates falling.

The BoE started raising its base rate in December 2021 from a historic low of 0.1% as the UK economy emerged from the coronavirus pandemic.

It reached 5.25% but the BoE cut that to 5% in August, marking the first cut since 2020.

How you can find the best savings rates

If you are trying to find the best savings rate there are websites you can use that can show you the best rates available.

Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what’s out there.

These websites let you tailor your searches to an account type that suits you.

There are three types of savings accounts fixed, easy access, and regular savers.

A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.

This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.

Some providers give the option to withdraw but it comes with a hefty fee.

An easy-access account does what it says on the tin and usually allows unlimited cash withdrawals.

These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.

Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.

A UK train station was once the world’s largest has opened a new lounge for parents to take the kids.

York Railway Station confirmed the second family-friendly zone will open next month, after the success of the one at London Kings Cross. which opened in 2022.

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The new family lounge is being built by rail operator LNER, with works already staring.

Inside is a children’s play area that’s based on the city’s historic walls with a fake castle.

There will also be beach huts with tabletop games, wall games, soft flooring and crawl spaces.

A series of specially designed murals focusing on York’s famous landmarks will decorate the walls inside the lounge.

Other features are set to include a breastfeeding area for new mums as well as ample seating for the entire family.

The family lounge is due to open in mid-December, giving families travelling for Christmas an additional space to unwind at the Victorian train station.

Colette Casey, LNER’s Customer Experience Director, said: “As a parent, I’m delighted that LNER is introducing Family Lounges with a new space in York our latest addition.

“York is a major hub station for us with millions of customers starting or ending their journeys here each year.

“We constantly strive to deliver improved experiences for all our customers as they travel with us and providing these new facilities is bound to aid that.”

York Railway Station was the largest in the world when it first opened in 1877.

The northern railway station had 13 platforms, a train shed, station buildings and a hotel.

It has undergone several renovations in its 147-year history, with the family lounge being the latest feature to open at the station.

Visitors to York Railway Station have previously raved about their time at the train station, with one person writing on TripAdvisor: “A beautiful historic railway station.”

Another person added: “This is an impressive old train station.”

Even if you aren’t in York, you can head to London Kings Cross Station to see what the lounge is like.

Located next to the Travel Centre in London Kings Cross, the family lounge is accessible for families who are booked on to trains departing from the station.

Inside are four brightly-coloured beach huts complete with tabletop toys and games.

There’s also a bespoke Hornby train set, keeping both big and little kids entertained, and a soft play area with a slide and a tiny black boulder doubling as a climbing frame.

Other features include a breastfeeding area for new mums, ample seating for the entire family and interactive screens with films.

The lounge can be used by families travelling with any rail operator, not just those who have a ticket with LNER.

Meanwhile, the world’s most beautiful train station is just one hour from the UK, and it is like “travelling back in time to golden age of rail”.

And a derelict train station dating back to 1881 could be transformed into a holiday park.

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The US Secret Service should change its leadership, a review into the “failures and breakdowns” that led to the attempted assassination in July of former president Donald Trump has found.

The 52-page report released on Thursday said the July attack at the Pennsylvania rally that left the Republican presidential candidate with a bloodied ear was caused by the Secret Service’s “troubling lack of critical thinking” and “cohesion” with other law enforcement bodies.

It also singled out failures by senior staff to “take necessary ownership regarding the security planning and execution”.

“The Secret Service must be the world’s leading governmental protective organisation,” concluded the bipartisan commission set up by US President Joe Biden in the wake of the assassination attempt. “The events at Butler on July 13 demonstrate that, currently, it is not.”

Ronald Rowe, acting director of the service, which is charged with protecting presidential candidates, said the agency “will carefully examine the report and recommendations”. He added it had already made improvements in its communications, as well as in liaising with other law enforcement agencies and other areas.

The report comes just 20 days before the 2024 presidential election, which has been rocked by plots to kill Trump.

The Secret Service has come under intense scrutiny following the events in Butler, where a gunman shot at the ex-president and killed a spectator, as well as an apparent second assassination attempt last month that was foiled by agents in Florida.

The panel argued that “a failure of the magnitude” that happened in Pennsylvania warranted urgent leadership change, including at the highest level of the service.

“A refreshment of leadership, with new perspectives, will contribute to the Service’s resolution of . . . deeper concerns” tied to the agency’s culture, the report said.

The panel recommended that a new leadership team be recruited from outside the Secret Service and that the new director be allowed to bring in a team of their choosing.

Alejandro Mayorkas, secretary of homeland security, which is responsible for the Secret Service, said the agency would “fully consider” the panel’s recommendations, in a bid to address the shortcomings in July as well as what the report described “as systemic and foundational issues that underlie those failures”. 

The review found that no officers from the Secret Service or other law enforcement agencies in Butler had been “specifically tasked” with securing the building from which the gunman shot at Trump. 

It also pointed out that law enforcement officers first became aware of the shooter more than 90 minutes before he opened fire. He was also spotted using a rangefinder 40 minutes before the shooting began.

The panel said the Butler rally was “plagued” by a string of other failures, with communications staff for the Secret Service and other law enforcement agencies operating from different locations. 

“The structural inadequacy of the communications set-up on July 13 is particularly glaring given the heavy presence of local law enforcement personnel staffing the event, none of whom had a direct line of radio communication with the Secret Service,” the report said.

The commission also criticised the Secret Service’s approach to resource allocation, best described in the informal mantra “do more with less” — which had “inevitable corrosive effects on protective decision-making over time”.