RACHEL Reeves was handed a pre-Budget boost as the economy is set to grow FASTER than expected this year, new figures show.

The Chancellor was given the boost by the International Monetary Fund declared the battle against inflation “has largely been won”.

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The upgrade comes after Ministers have been accused of peddling doom and gloom about the UK which has dented business and consumer confidence.

Growth in the UK is now expected to be 1.1 per cent for 2024 up from a forecast of 0.7 per cent projected back in July.

The IMF stated that the world economy this year will grow by 3.2 per cent rather than its previous estimate of 3.3 per cent.

Chancellor Rachel Reeves said: “It’s welcome that the IMF have upgraded our growth forecast for this year, but I know there is more work to do.

“That is why the Budget next week will be about fixing the foundations to deliver change so we can protect working people, fix the NHS and rebuild Britain.”

Sir Keir Starmer and Ms Reeves have put growth as a key mission at the start of their time in office.

Ministers have repeatedly said that strong economic growth will help deliver vital public services such as the NHS and education system.

But the Chancellor has warned of a £22 billion financial black hole as she prepares for next Wednesday’s Budget.

It’s also understood that the Treasury are also looking at a funding gap overall of some £40 billion which will include building a financial buffer to withstand economic shocks.

The IMF also said that UK inflation for the year will be higher than expected at 2.6 per cent, up from a previous forecast of 2.5 per cent.

Their inflation figure for next year was set at 2.1 per cent which is up from 2 per cent previously.

The rate for UK unemployment is set to have been 4.3 per cent for the whole of this year compared to the earlier estimate of 4.2 per cent.

But they warned in their World Economic Outlook that there is uncertainty in the forecasts due to a raft of elections – including the US on November 5.

They said that there could be “significant shifts” in trade and fiscal policy which could change future growth in different regions.

Reeves will travel to Washington DC at the end of the week to meet finance chiefs at the IMF annual meetings.

KLARNA, Britain’s biggest “buy now, pay later” firm, says it has saved customers nearly half a billion pounds in interest since its UK launch in 2014.

Around 10million — more than a third of households — have used Klarna to buy goods in the past year.

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And the boom in “buy now, pay later” has prompted the Government to say it will legislate the sector to protect shoppers.

Last week Tulip Siddiq, economic secretary to the Treasury, confirmed rules would come in next year.

And Klarna co-founder and CEO Sebastian Siemiatkowski welcomed the move.

He said: “We are in favour of regulation — I’m not an anarchist that doesn’t believe in rules.

“The main thing I’m worried about is if it will reduce competition against the banks who are raking in profits from customers.”

Klarna said that during its decade in the UK, the banks and traditional credit card firms such as American Express have made £160billion from customer interest charges.

The Swedish firm, co-founded by Mr Siemiatkowski in 2005, lets customers buy goods and split payments over three months without interest.

It made almost £1billion in revenues in the first half of this year from ads and charging retailers commission.

Klarna charges people who miss a payment a maximum £5 late fee.

However, it says its default rates are 30 per cent lower than traditional lenders’.

Mr Siemiatkowski, who started his working life flipping burgers at Burger King, told Sun Business: “We’ve saved consumers nearly half a billion pounds in interest — that’s real money in their pockets, not lining the banks’ coffers.

“We’ve proven that paying for everything — from flights to garden tools and getting your boiler fixed — doesn’t have to mean being gouged by high interest rates.”

Debt charities have argued that Klarna encourages people to buy things they can’t afford.

But Mr Siemiatkowski said: “Having fixed payment instalments without interest is a lot better than racking up credit card debt.”

HSBC to be split in two

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HSBC has announced a big shake-up that will split its UK and Hong Kong business into separate divisions.

The overhaul comes six weeks after Georges Elhedery, the bank’s former finance chief, was promoted to the top job.

HSBC also named Pam Kaur as its first female finance chief as part of its restructuring.

The bank said the overhaul is along geographic lines of “Eastern” markets and “Western”, which will include UK high street branches.

HSBC, founded in Hong Kong in 1865, has been in the middle of rising geopolitical and trade tensions between Beijing and the US and UK.

Its biggest investor, Chinese insurer Ping An, had tried unsuccessfully to agitate for a break-up of the company last year.

Mr Elhedery, who replaced Noel Quinn, said the revamp will result in “a simpler, more dynamic and agile organisation”.

Don’t let red tape ruin AI

ARTIFICIAL intelligence is not some sci-fi fantasy — it is here already.

In San Francisco today you can take a ride with a Waymo self-driving car.

At KLARNA, we have seen how our AI customer service agents help to resolve problems in just two minutes, compared to 12 minutes before.

Our lives and the way we work are already changing and it will affect jobs at an ­accelerating pace.

Governments need to stop dragging their feet.

While we need smart regulations to keep AI in check, we can’t afford to strangle it with red tape.

The looming threat is that if our governments dither too much we will fall behind less democratic countries who do not share our values.

The answer has to be to promote progress while also offering an answer to those people impacted by the changes.

AI is already shaking up the job market — and we’ve already paused hiring more staff because of AI efficiencies.

Some jobs will change, new roles will emerge and some will disappear. Some firms talk about retraining and upskilling ­but can we really expect a 55-year-old translator to magically become a TikTok star or influencer?

That’s why governments need to wake up and step up.

While AI is driving progress, they must ensure that it benefits society as a whole, not just a select few.

Failure of duty

THE VIRGIN WINES boss has attacked government plans to hike alcohol duty as “ill-thought through and amateurishly executed policies”.

Jay Wright, chief exec of the online wine seller, said the drinks industry had been “battered beyond belief” in recent years by people with “no understanding of the effects”.

Another duty hike is feared in next week’s Budget.

Mr Wright still toasted £1.7million of profits, after a loss of £700,000 in the year to the end of June.

A cost-cutting drive saved £1.4million.

THE new Minister for Investment, Poppy Gustafsson, is launching a scheme to attract more funding into women’s sport.

She will say today that women’s sport, including football, rugby, tennis and netball, could be worth over £1billion this year alone.

LABOUR’S massive public sector pay hikes led to a record-busting September of borrowing.

The Office of National Statistics say the government has borrowed £6.7 billion more than planned this year after the third highest September on record.

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It came despite an increase in tax take due to fiscal drag meaning more workers were stung on their wages.

The stats bosses said: “While tax revenue increased, this was outweighed by increased spending, partly due to higher debt interest and public sector pay rises.”

Government borrowing rose to £16.6billion in September – £2.1billion more than a year earlier.

Borrowing for the year stood at £79.6billion, £1.2billion more than a year earlier and £6.7 billion more than forecast.

This came despite the first fall in central government benefit payments since early 2022, in part due to Labour’s decision to test the winter fuel allowance, which is paid out in November and last year cost around £2 billion.

Treasury Chief Secretary Darren Jones said the state of the public finances meant there would be “difficult decisions” in the October 30 Budget.

City firm Blick Rothenberg said “Income Tax annual receipts were “up 8.6% in the last 12 months, equating to £22.6bn more in the Treasury’s coffers.

“The main cause of the income tax increase is fiscal drag which continues to bring more people into higher rates of tax.

“This has been created by wage rises over the past 12 months and the freezing of the personal allowances and tax bands.”

SPORTS Direct customers have been snapping up £14.99 urns to store their loved one’s ashes.

The retail giant, owned by businessman Mike Ashley, has offered the grey aluminium vase with ­silver trim on its website alongside its football boots.

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The 26cm by 18cm urns were heavily discounted — down from £114.99.

Described as a “cremation urn”, the listing added: “Ashes of your loved one are securely stored in this urn via a top lid.”

Engravings were also available for an extra £5 — with one example reading: “In Loving Memory, Grandad.

“Forever in our hearts.”

Shoppers were in hysterics about the merchandise at Europe’s biggest sports retailer, established in 1982 by the ex-Newcastle owner and now operating under Mr Ashley’s Frasers Group.

One Sports Direct customer joked: “I’ll have some Slazenger socks, some off-brand running shoes, and a cheap tin to stick nan in, please.”

Another said: “Stuff like this started after Mike Ashley bought House of Fraser a few years back.

“He’s merging all his other business into his existing Sports Direct stores.

“It’s more obvious online, as you wouldn’t necessarily be browsing in-store for football boots, and stumble into the urn section.”

Last night, after The Sun contacted Sports Direct, website links to the item stopped working.

The firm later refused to comment.

Sources said it had not been withdrawn, but had sold out.

The habits of millionaires are a topic of interest when it comes to financial advice. After all, unless they received a large chunk of money as an inheritance or gift, most millionaires had to be smart with their money to get where they are.

Learning how millionaires accumulate wealth — and where they keep it — can provide valuable insights for anyone focused on growing their money. One common question is whether or not millionaires keep money in checking accounts.

Studies show that in recent years, millionaires are keeping a significant portion of their wealth in cash. According to CNBC’s , that portion was about 24% in 2023. While this doesn’t necessarily mean a quarter of a millionaire’s wealth is sitting in a checking account, it does indicate the importance of maintaining liquid assets. And a checking account can be a helpful tool for doing so — whether or not you’re a millionaire.

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Anyone, regardless of net worth, can find value in a checking account. Checking accounts allow unlimited deposits and withdrawals, check writing, bill pay, and other features to help you manage your money day-to-day.

While millionaires may keep large portions of their wealth in other deposit accounts and investments, some may use a checking account to manage daily spending. Millionaires also recognize the importance of having liquid assets, like funds in checking and savings accounts. Accessible cash lets you cover unexpected expenses without needing to sell off investments, borrow money, or pay a penalty for tapping your retirement savings early.

The amount of money a millionaire keeps in their checking account is highly personal and depends on preference. However, because checking accounts rarely earn competitive — if any — interest, some millionaires intentionally limit their checking account balance. Some may choose to keep the bare minimum, such as a couple of months’ worth of essential expenses, in their checking accounts, keeping the rest of their wealth in more lucrative assets.

Regardless of preference, it would be surprising for a millionaire to keep more than $250,000 in a single checking account. That’s because the Federal Deposit Insurance Corp. (FDIC) only insures up to $250,000 in deposits per institution, per account holder.

While millionaires may use checking accounts for day-to-day financial transactions, they may also use some of the following accounts in addition to, or in place of, a checking account:

• Savings accounts: Like checking accounts, savings accounts provide a high degree of liquidity, allowing you to access your money as needed for regular or unexpected expenses. High-yield savings accounts, in particular, give millionaires an extra bang for their buck. Some of the best accounts currently offer rates upwards of 4% versus the national average savings account rate of 0.46%.

• Cash management accounts: Cash management accounts (CMAs) pay competitive interest rates while maintaining more accessibility than a savings account. Some CMAs come with a debit card and ATM access, and many provide extended FDIC coverage limits by “sweeping” additional deposits into partner banks. CMAs are available at brokerages, not banks, facilitating easy transfers between investment and cash accounts.

• Money market accounts: Similar to CMAs, money market accounts combine features of checking and savings accounts, often paying competitive interest rates and providing check writing and ATM access. Banks and credit unions offer these accounts, which are federally insured. Minimum opening deposit and minimum balance requirements are often higher than those for standard savings accounts.

• Retirement and tax-advantaged accounts: Millionaires understand the importance of investing for their later years, and retirement accounts such as 401(k)s and IRAs allow them to do so in a tax-advantaged way. Some retirement accounts, like 401(k)s, are offered by certain employers. Others, such as traditional and Roth IRAs, are available to anyone.

• Brokerage accounts: The IRS limits contributions to tax-advantaged accounts, and millionaires typically invest beyond these limits. They do so with taxable brokerage accounts, which can hold investments such as stocks, bonds, and mutual funds without contribution limits.

• Other investments, like real estate, commodities, and art: Some millionaires may decide to diversify their portfolio with other investment types. These could include real estate investments, such as investment properties or real estate investment trusts (REITs); commodities, such as metals or energy products; art; and more.

The amount of money millionaires keep in their checking accounts depends on personal preference. While some millionaires may keep six figures in their checking account to maintain a comfortable cash cushion, others may choose to keep the bare minimum in checking. You wouldn’t expect millionaires to keep more than $250,000 in a checking account, however, because balances over this threshold aren’t typically insured.

There’s no single bank that’s a favorite among millionaires; it’s another matter of preference. However, millionaires are likely to bank with institutions that offer private banking to those who meet specific financial requirements. Private banking may include wealth planning services, waived fees, dedicated bankers, and additional perks. J.P. Morgan Private Bank, Citi Private Bank, and Bank of America Private Bank are among some of the most popular banks for millionaires.

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Billionaires may have checking accounts, but they likely use accounts that cater to ultra-high-net-worth individuals. These accounts may come with perks such as a dedicated banker, waived fees, and competitive interest rates. Alternatively, billionaires may opt for a cash management account with higher FDIC insurance coverage limits and checking account features.

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No rule says you can’t have a million dollars in a checking account, but FDIC insurance typically only covers up to $250,000. Plus, you can get a bigger return on your investment by keeping $1 million elsewhere. One alternative is a cash management account, which acts like a checking account but generally earns higher interest. Plus, many cash management accounts insure more than the standard $250,000 by sweeping funds into multiple partner banks.

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Lumen Technologies, Inc. (NYSE:LUMN) shares are trading higher on Monday after the company announced it is partnering with Meta Platforms, Inc. (NASDAQ:META) to significantly increase Meta’s network capacity and help drive its AI ambitions.

Lumen’s partnership offers Meta enhanced flexibility with secure, on-demand bandwidth, supporting its complex computing requirements and enabling it to serve billions daily.

Ashley Haynes-Gaspar, Lumen’s EVP and chief revenue officer, said, “We’ve transformed our company to meet this demand. As Meta’s customers use more AI services across its platforms, we’re helping provide Meta with a seamless, effortless, and flexible network that will meet its growing needs.”

Lumen Technologies said its Private Connectivity Fabric enables long-term network capacity for Meta’s AI.

Alex-Handrah Aimé, director of Meta’s Network Investments stated, “Our AI tools are performing increasingly more complex tasks including enabling conversations in a variety of languages and translating text to images in real time, while helping people interact with the world around them in new, immersive ways.”

Read: Chinese Hackers Breach AT&T, Verizon Networks In Major Wiretap Data Theft Putting US National Security At Risk: Report

Lumen will report third quarter 2024 results on November 5, 2024.

Investors can gain exposure to the stock via Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU) and First Trust Cloud Computing ETF (NASDAQ:SKYY).

Price Action: LUMN shares are up 9.50% at $7.38 at the last check Monday.

Image via Shutterstock

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