Connect with us

Business

Capital investment is meh

Published

on

Line chart of US capital expenditures as % of GDP showing Software>hardware

Unlock the Editor’s Digest for free

This article is an on-site version of our Unhedged newsletter. Premium subscribers can sign up here to get the newsletter delivered every weekday. Standard subscribers can upgrade to Premium here, or explore all FT newsletters

Good morning. In case you have not been following the news, there is an election today. And it appears that investors have finally accepted that the two candidates are neck and neck. The dollar and the 10-year Treasury fell yesterday as investors started to unwind their “Trump trades”. Let’s hold hands and jump into the abyss of uncertainty together. Email us: robert.armstrong@ft.com and aiden.reiter@ft.com.

Advertisement

Capital investment

There is a broad Wall Street consensus, shared by many academic economists, that investment is going to rise in the medium to long term, globally and in the US. The world needs a new, green power grid; the AI revolution requires massive infrastructure; governments are enthusiastic about industrial policy. This means higher investment, higher rates and higher growth.

At the same time, there is a view that corporations in the US underinvest, spending their cash on profit-flattering share repurchases or acquisitions designed to reduce competition, rather than on productivity-increasing investment. 

The two views are not directly opposed. Government and private investment must be distinguished. Within private investment the picture varies by sector. No one accuses the Magnificent Seven tech stocks of underinvesting, for example — on the contrary (see below). But the situation bears some looking at. Is corporate America investing more?

Here is capital investment, by category, as a portion of GDP over the past 50 years or so. Investment in buildings has been stable relative to the size of the economy for 30 years. Spending on equipment has been falling by fits and starts. Spending on software and intangibles has steadily grown. Put the three together and capital expenditures are stable at about 12-14 per cent of GDP over the long term.  

Advertisement
Line chart of US capital expenditures as % of GDP showing Software>hardware

Capex is not a huge part of the economy. It would have to grow very fast indeed to noticeably change the rate of GDP growth. The issue is whether investment is growing fast enough to support increasing productivity. And you will notice to the right of the chart that in the past few years, investment is not expanding faster than the economy — not even software investment.

Recently, there has been only one growth story in investment, and it has been equipment. Here is year-over-year growth in the three investment categories. See how the light blue line has perked up this year:

Line chart of Year over year % growth in capital expenditures showing AI to the rescue

It’s a pretty good guess that the rise in equipment investment comes down to hardware for AI data centres. Some evidence of that comes from the capex at S&P 500 companies. S&P capex surged from 2021-23 but is flat over the past 12 months, except for the Magnificent Seven, which are charging ahead with AI investment:

Column chart of S&P 500 capital expenditure, $bn showing Past the peak

The broad picture is pretty clear. Corporate investment is not growing as a portion of GDP. The only type of investment that has been accelerating recently has been equipment, and that looks to be an AI effect. The same pattern is evident at large companies: investment is stagnant this year, except for Big Tech’s AI budgets.

The Mag 7: high expectations, meet high investment

Last week, Meta beat Wall Street’s earnings expectations by a comfortable margin. But its stock fell and has been trading poorly since. The culprit was AI-related capital expenditures.

Capital expenditures in the quarter were more than $9.2 billion, and according to CEO Mark Zuckerberg, the company “continue[s] to expect significant capital expenditure growth in 2025”. Zuckerberg acknowledged that news of higher infrastructure investment “is maybe not what investors want to hear in the near term”. But executives were vague about how and when all the capital expenditure would transform into revenue.

Meta is feeling a squeeze that other members of the Magnificent Seven may experience soon. The stocks are expensive, and investors expect astonishing levels of revenue and earnings growth every quarter. At the same time, the investment requirements for staying in the AI game are tremendous, and the spending is not yet generating much revenue and profit. Unless AI products start bringing in money soon, this dilemma is only going to become more acute.

Advertisement
Line chart of Year-end capex spending ($bn) showing Big budgets

Microsoft and Apple also beat earnings expectations last week, and also saw their stocks slide. Microsoft CEO Satya Nadella said the company expected capital expenditures, already double what they were last year, to increase going forward. He attributed the growth in Azure revenue to AI capabilities. But investors seemed unsure. According to Gregg Moskowitz at Mizuho, “most of the Azure F1Q upside was driven by greater than expected in-period revenue recognition”, and Azure forward guidance was below expectations. Apple, whose AI capex is small by comparison, but rising, gave cautious forward guidance, as the use case for its Apple Intelligence AI system remains unclear. 

Microsoft, Amazon and Google all sell computing capacity to other companies who want to run AI applications. Nvidia sells AI chips to everyone involved. But “selling shovels in the gold rush” pushes off the revenue problem rather than solving it. Someone has to pay to use AI if the AI economy is going to keep churning, and AI stocks are going to keep rising. With the market riding high, those who are confident that AI will be a money spinner need to worry about when the spinning will start.

(Reiter)

One good read

The life of Q.

FT Unhedged podcast

Can’t get enough of Unhedged? Listen to our new podcast, for a 15-minute dive into the latest markets news and financial headlines, twice a week. Catch up on past editions of the newsletter here.

Recommended newsletters for you

Due Diligence — Top stories from the world of corporate finance. Sign up here

Advertisement

Chris Giles on Central Banks — Vital news and views on what central banks are thinking, inflation, interest rates and money. Sign up here

Source link

Continue Reading
Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Business

inside Donald Trump’s new White House

Published

on

Donald Trump seen discussing the election with Elon Musk and Dana White at Mar-a-Lago

Nibbling on crabs, sushi and sugar cookies, some of the richest and the soon-to-be most powerful people in the world waited for the election results on Tuesday night at Mar-a-Lago, Donald Trump’s gilded fortress on the sea.  

At one of the tables, Trump sat with Elon Musk, the billionaire technology executive, and Dana White, chief executive of the Ultimate Fighting Championship.

Hours before the final outcome was established, Musk decided to call the whole race. “Game, set and match,” he posted on X, the platform he owns, to his 200mn followers, at 10.32pm. 

The next day, after it was confirmed that the Republican had defeated Kamala Harris, Trump and Musk ate together on the terrace of the resort, with Musk wearing a T-shirt of astronauts walking on the moon with Mars in the distance. 

Advertisement

“Novus Ordo Seclorum,” Musk wrote on X, the Latin expression for “a new era is born”.

Amid the jubilant scenes at Mar-a-Lago, there were plenty of signs about how a second Trump presidency might be different than the first one — and, in particular, just how changed his new inner circle will be.

The 78-year-old Republican appears to be even more influenced by his billionaire donors and allies than he was during his first term in office — particularly Musk. He is also more willing to embrace the ideology of the politically ascendant new American right, and more determined to press ahead with his aggressive agenda from his very first day in office.


Trump’s inner circle

Eight years ago, Trump was forced to lean on the Republican establishment for counsel: this time, the group of individuals who have his ear are largely Maga loyalists, ranging from his vice-president-elect JD Vance and his eldest son Don Jr to a circle of wealthy allies pitching for plum jobs in the administration.

Advertisement

On Thursday, Trump made his first big personnel announcement, tapping Susie Wiles, his top campaign strategist and a longtime political operative in Florida, to be the next White House chief of staff.

It marks the opening move in what is expected to be a flurry of personnel announcements over the coming week that will reveal Trump’s team, including his cabinet, as he prepares to move back into the White House on January 20.

Trump’s goal will be to quickly implement policies ranging from the mass deportation of undocumented immigrants to sweeping tax cuts and across-the-board tariffs on imports that he promised on the campaign trail, along with exacting retribution against his political opponents.

At this stage in 2016, after defeating Hillary Clinton, many in Trump’s entourage were political novices who were unprepared for the task of building a new government. Trump eventually turned to his then vice-president-elect, Mike Pence — a former governor and member of Congress with deep roots in the Republican party — to run his transition operation. 

Advertisement
Donald Trump seen discussing the election with Elon Musk and Dana White at Mar-a-Lago
Donald Trump on election night with Ultimate Fighting Championship chief Dana White, centre, and Tesla chief Elon Musk. Trump appears to be even more influenced by his billionaire donors and staunch allies than in his first term © Elon Musk/X

He also tapped Reince Priebus to be chief of staff, Steven Mnuchin as treasury secretary and Rex Tillerson for secretary of state — all figures who were palatable to traditional business groups and the national security apparatus, but whom he did not know particularly well.

Trump has come to regret those choices for restraining the populist agenda he really wanted to pursue and has been desperate to avoid that scenario again.

“It was a free-for-all. Nobody expected Trump to win,” says John Feehery, Republican former congressional aide now at EFB Advocacy, a consultancy, about the aftermath of the 2016 election.

“People are now understanding that instead of pursuing their own visions, they’re trying to pursue Trump’s vision.”


It is not unusual for chief executives and business leaders to have close access to politicians, especially during a campaign, but Musk’s proximity to Trump has been especially remarkable — and a sign that the next administration may have a distinctively plutocratic element to it.

Advertisement

Musk publicly endorsed Trump, bankrolled a Super Pac that spent $172mn on the 2024 election, hosted him on X for a lengthy conversation, and canvassed the crucial state of Pennsylvania, which ended up flipping to Trump.

In return, Trump has said he will appoint the Tesla and SpaceX chief to a commission that will roll back regulations and drastically cut government spending. Musk has said the election is crucial for his vision of colonising Mars.

“He actually helped Trump get elected. He got his fingernails dirty and got it done,” says Feehery. “The level of his work . . . gives him tons of loyalty from Trump.”

Susie Wiles
Susie Wiles, centre, in Palm Beach on election night. Trump this week appointed his top campaign strategist as the next White House chief of staff © Carlos Barria/Reuters

Their alliance carries big risks in terms of potential conflicts of interest, which Trump allies deny, as well as potential disagreements down the line over policy. But, for now, it seems to be suiting both men.

There are other top executives in Trump’s new orbit. Two billionaires are chairing his transition team. Personnel is being led by Howard Lutnick, the long-standing boss of Cantor Fitzgerald, the financial services firm that lost hundreds of employees in the September 11 attack on the World Trade Center. Lutnick is an old friend of Trump and even once appeared on The Apprentice.

Advertisement

The transition’s policy programme is being led by Linda McMahon, the former chief executive of World Wrestling Entertainment who is also chair of the America First Policy Institute, a think-tank that has been trying to develop an agenda to support Trump’s ideas.

Both are considered potential cabinet picks — Lutnick for treasury and McMahon for commerce — after writing multimillion dollar checks to the campaign. But other top billionaires in the inner circle are also angling: hedge fund managers John Paulson and Scott Bessent, who was in Palm Beach wearing a pro-Trump pin on his lapel this week, are also in contention for Treasury.


The Trump family will remain influential in the new administration, but this time with a more Maga flavour. 

In 2016, Trump’s daughter Ivanka and her husband Jared Kushner took on senior White House positions. Kushner, who was a Democrat when he was younger, was considered by some foreign governments to be one of the more pragmatic people to deal with amid the chaos of the first Trump term. But neither Ivanka Trump or Kushner are expected to join this administration.

Advertisement

The most influential family member this year has been Donald Trump Jr, the 46-year-old eldest child. He played an important role in persuading his father to back JD Vance, the Ohio senator, to be his running mate, and he was one of the voices pushing for Trump to engage more with podcasts popular among young men. 

Trump Jr also helped build the campaign’s relationship with Robert F Kennedy Jr — the scion of the Democrats’ most famous family who was at one stage running a third-party bid for the presidency, before swinging behind Trump. During the campaign, donors got the chance to win a day of falconry together with the two men. “A true Renaissance man,” Trump Jr described Kennedy.

Trump Jr has not always appeared to be his father’s favourite. But more than any other family member, he has been an energetic champion of the new right, including on his own podcast. 

Don Jr and Robert F Kennedy Jr
Donald Trump Jr helped build the campaign’s relationship with Robert F Kennedy Jr. During the campaign, donors got the chance to win a day of falconry together with the two men © robertfkennedyjr/instagram

Although he appears to have little appetite for taking a formal position in the administration, he intends to play an important role in the transition, policing potential appointments for their loyalty. Before the election, he talked about the need to create a “Maga bench” of potential officials and keeping “bad actors” out of the administration, as he believes happened in 2016. 

“Now we know who the real players are, the people who will actually deliver on the president’s message, the people who don’t think that they know better than the duly elected president of the United States,” he told Fox and Friends this week. “I want to make sure that those people are in this administration.”

Advertisement

Vance, 40, will also play an influential role in setting the direction of the White House. As the youngest vice-president since Richard Nixon served in the role seven decades ago, he is in prime position to shape the future of the Republican party.

He has risen from poverty to become a senator, picking up along the way a Yale Law School diploma, four years in the Marines, Silicon Valley venture capitalist experience under Peter Thiel and a best-selling book, Hillbilly Elegy. He has also helped overturn the GOP’s old country club image.

“We won’t cater to Wall Street. We’ll commit to the working man,” Vance said at the Republican party’s convention this summer.

A person close to Vance said that tech and immigration were two core policy interests; he told the Financial Times in August that Google “ought to be broken up”, but Trump later questioned whether that would be going too far.

Advertisement

According to Oren Cass, chief economist at the think-tank American Compass and also an FT contributing editor, “Vance has been an integral leader within the new right since its formative stages.”

In August, Trump added Kennedy and Tulsi Gabbard — another Democrat turned Trump supporter — to his transition team. Both were at Mar-a-Lago this week, but it was unclear what kind of role they would get. Kennedy is in “meeting after meeting after meeting. And he dislikes meetings,” says a person close to the Trump campaign.

But Kennedy has been speaking to reporters about potential roles in the new administration in the areas of health and science, vowing to review research on vaccines and calling for the elimination of fluoride from drinking water.

Many of the candidates for top jobs have been present in Palm Beach this week. North Dakota Governor Doug Burgum, a potential pick for energy secretary, was standing right in front of the stage at the victory rally on election night, while former acting national intelligence director Ric Grenell and Tennessee Senator Bill Hagerty — rumoured as top State Department picks — were also spotted around town. Kash Patel, former US defence department chief of staff who could be given a top job in intelligence, was also in attendance at Mar-a-Lago.

Advertisement
Donald Trump and Melania Trump arrive at the home of John Paulson and Alina de Almeida
Donald and Melania Trump visit the Palm Beach home of hedge fund manager John Paulson and Alina de Almeida, who is engaged to Paulson, earlier this year © Alon Skuy/Getty Images

Amid the speculation, there is little tolerance for anyone who criticised Trump in the past. Trump adviser Tim Murtaugh says former staffers who turned against Trump are “trying to figure out how to pivot for their own professional betterment”. He adds: “We’re all aware of who those people are.”

Even the wealthiest Palm Beach locals worry about the impact of all the well-to-do people coming to pitch for positions.

Thomas Peterffy, the billionaire chair of Interactive Brokers and a Trump donor, who lives two minutes from Mar-a-Lago, laments that his neighbour’s victory will increase road closures on the island.

“I remember, eight years ago, after he got elected, people kept coming and going because he was constantly interviewing people for ambassadorships and various cabinet positions,” says Peterffy. “So, this traffic jam is going to go on for a while.”

Source link

Advertisement
Continue Reading

Travel

British Airways is axing all flights from UK’s biggest airport to TWO destinations early next year

Published

on

British Airways is cancelling flights to Bahrain and Kuwait from next year

BRITISH Airways is cancelling services from the UK’s biggest airports to two locations next year.

From late March in 2025, the airline giant is scrapping two of its major flight routes.

British Airways is cancelling flights to Bahrain and Kuwait from next year

2

British Airways is cancelling flights to Bahrain and Kuwait from next yearCredit: Getty

Flights have flown from the UK to Bahrain for 92 years and to Kuwait for 63.

Advertisement

Now, just in time for the Bahrain Grand Prix, services to both these countries will be cut from one a day to none.

BA has claimed this is due to delays on receiving engine parts from Rolls-Royce.

A spokesperson for BA said: “The impact of this supply chain issue has meant we’ve been using standby aircraft from our 777 fleet to avoid cancellations.

“What’s more, equipment manufacturers and suppliers globally are struggling to meet demand, increasing the risk of further disruptions to our flying schedule.”

Advertisement

The airline, owned by Anglo-Spanish conglomerate IAG, said the they have been working to ensure our aircraft are available to meet the needs of the flying schedule but it’s no longer sustainable.

They added: “A more substantial course of action is now needed.”

The cancellations have been put down to to issues with the Rolls Royce-manufactured jet engines, particularly in the Rolls-Royce Trent 1000 engines.

This has led to the cancellation of flights between London Gatwick and New York until 2025

Advertisement

Some services to Kuala Lumpur were axed shortly before they supposed to go ahead as well.

Jet2 Flight LS190 Lands Safely After Mid-Air Emergency

Many other routes were cut due to the delay in supply and BA have apologised to customers for the inconvenience.

They relayed that the issue would not be one that has a quick fix and are “disappointed” they had to further change their schedule.

BA added: “We’ve taken this action because we do not believe the issue will be solved quickly, and we want to offer our customers the certainty they deserve.

Advertisement

“We’ve apologised to those affected and are able to offer the vast majority a flight the same day with British Airways or one of our partner airlines. “

The global company has stated it is working closely with Rolls-Royce and reassures it’s customers that they’re in the process of finding a solution.

Rolls-Royce released a statement claiming they are aware that the supply issue is “affecting the whole aerospace industry.”

There are multiple ways to find out if BA is still flying to a certain destination, or you want to check if there have been further cancellations.

Advertisement

You can download the BA app which will give information about flight schedules and bookings.

This will allow you to board, board, and access information about your flights.

On the BA website you can access company updates, news, as well as current flight information.

The Sun has reached out to British Airways for a comment.

Advertisement
Dr Liam Fox said 'it’s the worst possible decision at the worst possible time'

2

Dr Liam Fox said ‘it’s the worst possible decision at the worst possible time’Credit: AFP

Source link

Continue Reading

Business

What is the point of polling?

Published

on

Unlock the White House Watch newsletter for free

How did the polls in the US fare over the past week? This may sound like a simple question, but depending on what you’re actually asking, your chosen yardstick and possibly even your fundamental beliefs about the human psyche, there are half a dozen equally legitimate answers.

Let’s start with the basics. At the national level, the polling average on election eve had vice-president Kamala Harris winning the popular vote by around one and a half percentage points. At the time of writing, Donald Trump is on course to win by that same margin, for a combined miss of around three points. This is a smaller error than four years ago, and almost bang on the long-term average.

Advertisement

At the state level, the polls were on average closer to the outcome this year than in either 2016 or 2020. However, for the first time in 50 years of public polling, the average survey in every single state underestimated the same candidate — Trump.

But the thing is, these same statistics provoke wildly different reactions in different people. For the average left-leaning American who had spent weeks staring at a blue number that was marginally higher than a red number, Tuesday’s results were earth shattering proof that polling is broken. The three-point miss might as well have been 20 points.

But from the perspective of pollsters, political scientists and statisticians, the polls performed relatively well. The misses, both at national and state level, were all well within the margin of error, and the fact that the polls were no worse at capturing the views of Trump states than of deep blue ones — a marked contrast to 2016 and 2020 — suggests the methodological refinements of recent years have worked.

If your temptation is to scoff at that last paragraph, let me offer you this: Google searches in the US for terms like “why were the polls wrong” peaked far higher last week and in 2016 than they did in 2020, despite the fact that the polls underestimated Trump by even more in 2020.

Advertisement

The reason is fairly obvious, but it has nothing to do with statistics or polling methodology. The human brain is much more comfortable with binaries than probabilities, so a close miss that upturns the viewer’s world stings much more than a wider miss that doesn’t.

But I don’t mean to let the industry completely off the hook, and to that end there are two separate issues that need to be addressed.

The most obvious is that although the polls fared slightly better this year, this was still the third successive underestimation of Trump. The methodological tweaks that pollsters have made since 2016 have clearly helped, but the basic problem remains. Whether due to new sources of bias introduced by these tweaks, or to further shifts in the rates at which different types of people answer surveys, pollsters appear to be walking down the up escalator.

The second is a more fundamental issue with how the numbers are presented. It’s true that pollsters and polling aggregators have been giving loud and clear warnings for weeks about how a very narrow margin in the polls not only could, but quite likely, would still see one side or the other win decisively. But such a proliferation of health warnings raises the question of whether polls, polling averages and their coverage in the media are doing more harm than good.

Advertisement
Chart showing that a different representation of polling data could help shape a narrative that more accurately reflects reality and reduces the risk of unpleasant shocks

Let’s say that you the pollster and I the journalist know that the true margin of error in a poll is at best plus-or-minus three points per candidate — that is, a poll with candidate A leading by two points is not inconsistent with that candidate losing by four on election day even if the poll was perfect. And suppose that we also know that humans instinctively dislike uncertainty and will fixate on any concrete information. Then who is served when we highlight only a single number?

If we want to minimise the risk of nasty shocks for large portions of society, and we want pollsters to get a fair hearing when the results are in, both sides need to accept that polls deal in fuzzy ranges, not hard numbers.

john.burn-murdoch@ft.com, @jburnmurdoch

Source link

Advertisement
Continue Reading

Money

M&S shoppers go wild for giant festive tubs branded better than Quality Streets

Published

on

M&S shoppers go wild for giant festive tubs branded better than Quality Streets

THERE’S a new favourite chocolate tub and it has sent shoppers into frenzy – with one declaring it would replace Quality Streets.

Shoppers have flocked to M&S to pick up a giant festive tub branded better than all of the Christmas faves.

With Christmas just around the corner, M&S has mixed its iconic Mini Bites into a family sharer for the first time ever.

M&S Mini Bites selection box is on sale now for £10

2

Advertisement
M&S Mini Bites selection box is on sale now for £10Credit: M&S
Two new flavours will also be available to buy

2

Two new flavours will also be available to buyCredit: M&S

The epic mix is three times the size of the classic tubs, and includes the bestselling double chocolate mini rolls, caramel crispies, and new festive flavour, cranberry and yoghurt clusters.

An M&S icon since 2001, there are 14 tubs in the range, plus three new tubs for the festive season.

The new tub is set to fly off the shelves, after the brand announced the new festive treats on Instagram, sending shoppers in a frenzy.

Advertisement

On person said: “This will definitely replace Quality Streets this Christmas.”

A second person commented: “This is the best idea EVER. Totally obsessed!.”

While a third summed up the delicious treat with a simple: “Yum”.

M&S is also launching two new festive Mini Bites flavours tMint Choc Chip Mini Bites (£3.75, 215g) and Extremely Chocolatey Yule Log Bites (£3.75, 295g).

Advertisement

The family sized mini bites selection is £10 for a 700g tin and can be found in the M&S food hall and online on Ocado.

Christmas Treats

Everyone loves a sweet treat during the festive season and whether your preference is for Cadbury Heroes, Celebrations or a classic tub of Quality Street these are the cheapest prices.

If you’re partial to a tub of Quality Street, both Aldi and Lidl are selling 600g tubs for £4.49 – making them the cheapest out there.

In comparison Sainsbury’s and Tesco are selling the chocolates for £4.50 for Nectar and Clubcard holders, while Asda has priced them at £6 individually, or £9 for two.

Advertisement

Morrisons is also pricing the tubs at £6, while Ocado is charging £5.

Quality Street was launched in 1936 and has been a favourite with families since.

The selection includes ‘the purple one’ which brings together hazelnut and caramel, the toffee finger, orange chocolate crunch, strawberry delight and ‘the green triangle’.

Cadbury Heroes lovers can also pick up 550g tubs for £4.50 from Sainsbury’s and Tesco if they are Nectar or Clubcard members.

Advertisement

Asda has Heroes tubs included in its two for £9 deal, meaning if you’re happy to double up you can pick them up at the supermarket for the same price as Tesco and Sainsbury’s shoppers.

Meanwhile, Aldi is selling the tubs for £4.99 and Morrisons for £6.

The Heroes selection includes Cadbury Dairy Milk, Twirl and Crunchie.

Celebrations are also available for £4.50 from Tesco for Clubcard members, or as part of Asda’s two for £9 deal.

Advertisement

Aldi is selling the tubs for £4.99, Sainsbury’s for £6 and Morrisons for £6.

The Celebrations selection includes Mars, Snickers, Twix, Bounty and Galaxy.

If you’re sharing chocolates with family this year and want to pick up a selection of tubs Asda’s two for £9 deal, which includes Quality Street, Cadbury Heroes, Celebrations, Cadbury Roses and a Swizzels assortment, may be the way to go.

How to save money on chocolate

Advertisement

We all love a bit of chocolate from now and then, but you don’t have to break the bank buying your favourite bar.

Consumer reporter Sam Walker reveals how to cut costs…

Go own brand – if you’re not too fussed about flavour and just want to supplant your chocolate cravings, you’ll save by going for the supermarket’s own brand bars.

Shop around – if you’ve spotted your favourite variety at the supermarket, make sure you check if it’s cheaper elsewhere.

Advertisement

Websites like Trolley.co.uk let you compare prices on products across all the major chains to see if you’re getting the best deal.

Look out for yellow stickers – supermarket staff put yellow, and sometimes orange and red, stickers on to products to show they’ve been reduced.

They usually do this if the product is coming to the end of its best-before date or the packaging is slightly damaged.

Buy bigger bars – most of the time, but not always, chocolate is cheaper per 100g the larger the bar.

Advertisement

So if you’ve got the appetite, and you were going to buy a hefty amount of chocolate anyway, you might as well go bigger.

Source link

Continue Reading

Business

Trump tariffs could cost UK £22bn of exports

Published

on

Trump tariffs could cost UK £22bn of exports

The UK could face a £22bn hit to its exports if Donald Trump imposes a blanket 20% tariff on all imports into the US, according to a new analysis.

UK exports to the world could fall more than 2.6% due to lower trade with the US and knock-on effects globally, economists at the University of Sussex’s Centre for Inclusive Trade Policy (CITP) said.

This fall could happen if the President-elect went through with his repeated campaign promise to levy a 20% tax on all imports, and a 60% tariff on Chinese imports.

The decline in trade would be the equivalent of an annual hit to UK economic output of 0.8%.

Advertisement

Although Trump’s aggressive pledges could be a negotiating tactic, the “possibility of these tariffs being imposed is certainly there”, researcher Nicolo Tamberi said in a blog post.

The main UK sectors likely to be hit would be fishing, petroleum, and mining, which could see exports fall by around a fifth.

The pharmaceutical and electrical sectors would also be hit.

Even businesses that are not exporters themselves could be affected.

Advertisement

For example, firms supplying transportation services, which rely on strong trade flows, would take a hit.

Insurance and finance services also support the underlying goods trade.

However, some sectors could benefit from reduced China exports to the US.

Textiles and clothing could see gains due to reduced competition, if Chinese exports were hit by much higher Trump tariffs.

Advertisement

Just how sharp the increase in border taxes under Donald Trump might be remains unclear. Some diplomats have pointed to more pragmatic suggestions about lighter tariffs for US allies.

But Trump’s top adviser on trade, former Trade Representative Robert Lighthizer, is a strong supporter of the tactic.

The Foreign Secretary David Lammy recently told the BBC’s Newscast podcast: “We will seek to ensure and to get across to the United States – and I believe that they would understand this – that hurting your closest allies cannot be in your medium or long-term interests, whatever the pursuit of public policy in relation to some of the problems posed by China.”

But the British ambassador in the US under Trump’s previous administration, Lord Darroch, has warned the UK should not underestimate the risks.

Advertisement

“I’m a pessimist,” he told BBC Newsnight on Thursday. “Trump did tariffs in his first term on steel and aluminium. He wants to go much bigger this time. He believes in it – it’s not a bluff. I think he will do it.”

Chancellor Rachel Reeves and Bank of England Governor Andrew Bailey have both said they will continue to make the argument for free trade.

The UK might be in a position to have to choose whether to try to cut a side deal with the Trump White House to avoid tariffs.

Alternatively the UK could join with other Western and European allies to send a clear message to Trump and the US Congress that American exporters would also be badly hit by such policies.

Advertisement

The CITP numbers only assume that the US sets tariffs on the world, and do not assume a likely trade retaliation from Europe or Asia.

The IMF recently warned that a large scale trade war would drive up inflation and lead to the world economy shrinking 7%, effectively the size of the French and German economies combined.

Source link

Advertisement
Continue Reading

Travel

UK’s best holiday park revealed – with nearby sandy beach, heated swimming pool and indoor soft play

Published

on

Trevornick Holiday Park in Cornwall has been named the AA Holiday Park of the Year

THE best holiday park in the UK has been named – and it has a heated swimming pool, adventure trails for kids and an indoor soft play area.

Located in Holywell, Cornwall, Trevornick Holiday Park has been named the AA Holiday Park of the Year at the AA Caravan & Camping Awards.

Trevornick Holiday Park in Cornwall has been named the AA Holiday Park of the Year

5

Trevornick Holiday Park in Cornwall has been named the AA Holiday Park of the YearCredit: Trevornick
The Cornish holiday park has a heated on-site swimming pool and a splash play zone with tipping buckets and water fountains for kids

5

Advertisement
The Cornish holiday park has a heated on-site swimming pool and a splash play zone with tipping buckets and water fountains for kidsCredit: Trevornick

The awards celebrated 12 sites across the country, with a team of experts choosing the winners based on their quality and customer satisfaction.

Simon Numphud, Managing Director at AA Media, said, “As local travel continues to grow and sustainable tourism gains momentum, we are excited to announce the best camping and caravanning destinations for the upcoming year.

“This year’s winners have demonstrated outstanding quality along with a strong dedication to eco-friendly practices and customer satisfaction, making them excellent options for UK travellers.”

It’s easy to see why the Cornish holiday park has won favour with industry experts.

Advertisement

Read More on Holiday Parks

Family-run Trevornick Holiday Park has an on-site heated swimming pool with a poolside terrace.

For younger guests, there’s also a smaller, shallower pool and a splash zone with tipping buckets, jets and fountains.

There’s also a jacuzzi and a spa for adults.

It’s also a short walk from Holywell Bay Beach – a National Trust site boasting a mile-long stretch of sand.

Advertisement

The beach is popular with surfers and bodyboarders, with one two-hour surf lesson at a local school available for Trevornick Holiday Park guests.

Inside Haven’s biggest holiday park with huge pool and new tube slides

There are plenty of on-site activities for kids too, including a kids’ club called Wild Tribe.

Kids can take part in craft activities and a talent show.

There’s also the Bear Den – an indoor soft play area – and an on-site arcade with amusement games.

Advertisement

Outside, there’s a sports field, a playground with swings, slides and climbing ropes, and a forest trail with climbing frames, a balance beam and climbing nets.

There’s also an 18-hole golf course

The evening entertainment includes singers, magicians and comedians.

Other facilities include a washroom, a laundrette, WiFi and an on-site hire shop where guests can rent surfboards and bodyboards.

Advertisement

There is one on-site restaurant, Woody’s Bar and Restaurant, with guests also able to order takeaway grub like fish and chips and pizzas from the Courtyard Takeaway.

The Farm Club and the Lounge Bar are the two on-site bars at the Cornish holiday park.

There are a range of overnight accommodation options for guests to book, including lodges and holiday cottages

5

There are a range of overnight accommodation options for guests to book, including lodges and holiday cottagesCredit: Trevornick
The holiday park has one restaurant on-site

5

Advertisement
The holiday park has one restaurant on-siteCredit: Trevornick

An on-site farm shop sells a range of local produce

There are a range of overnight accommodation options to choose from, including static caravans, luxury lodges, holiday cottages and touring pitches.

Sun Online Travel have found three-night stays in a static caravan from £153 per night for four people.

Guests who want to stay during the winter months will need to book overnight accommodation in either the luxury lodges or the holiday cottages, with other options re-opening for the summer season in April.

Advertisement

Trevornick Holiday Park has been praised by visitors, with a 4/5 star rating on TripAdvisor.

One person wrote: “Brilliant campsite with the most friendly and helpful staff”.

Another added: “We’ve enjoyed holidaying at Trevornick so much, we don’t look anywhere else”.

Three camping tips from an expert

Advertisement

David Scotland owns camping equipment retailer Outdoor World Direct and knows all about how to make a camping trip run smoothly.

When visiting any campsite this summer it’s important to make sure you’re not making simple mistakes that could ruin your holiday.

Check your tent

David recommends putting your tent up a couple of weeks before you’re due to travel to give you enough time to repair or replace any damaged parts.

Advertisement

He told Sun Online Travel: “You’d be surprised how many people turn up with broken tents.”

Test the ground

Picking a good spot to pitch your tent is difficult, with lots of things to consider.

One of those should be the condition of the ground you’re putting your tent on top of, according to David.

Advertisement

He said: “Once you’ve found the perfect spot, test the ground with your pegs before you commit to camping there to make sure the ground is soft enough.”

Don’t nap in your tent

It may seem the perfect place for it, but a nap in a tent could end badly, if it’s done at the wrong time of the day.

David explained: “If the sun’s shining and it’s hot inside your tent – don’t do it!

Advertisement

“One of our friends nodded off in his tent during a heatwave at Glastonbury and ended up at the medical tent with heatstroke.”

Instead, he recommends finding some shade outside or somewhere well ventilated.

Last week, Robbie revealed England’s top three underrated holiday parks – with private beaches, indoor water parks and jet skis for kids.

And here are the other lesser-known holiday parks named among the best in the UK.

Advertisement
Trevornick holiday park is within walking distance of Holywell Bay Beach - a popular spot with surfers and dog walkers

5

Trevornick holiday park is within walking distance of Holywell Bay Beach – a popular spot with surfers and dog walkersCredit: Trevornick

Source link

Continue Reading

Trending

Copyright © 2024 WordupNews.com