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British Airways owner IAG reports bigger than expected profits

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British Airways owner International Airlines Group has reported a second summer of strong profits as demand for travel in Europe and across the Atlantic remained robust.

The Anglo-Spanish company reported an operating profit before exceptional items of €2.01bn for the third quarter, 15 per cent higher than a year earlier and well above analysts’ expectations. Shares rose 6 per cent in early trading on Friday in London.

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IAG, which owns five airlines including BA, also announced a €350mn share buyback programme, reflecting “our confidence in the strategy and business model, as well as the long-term prospects for the business”.

“Demand remains strong across our airlines and we expect a good final quarter of 2024 financially,” said IAG’s chief executive Luis Gallego.

IAG’s bullish outlook contrasts with its rivals in Europe, which have struggled to match last summer’s record-breaking profits.

It also comes despite BA facing major operational problems. Flight delays and cancellations have risen significantly at the UK-based carrier since the Covid-19 pandemic, even though the company put extra resources into this summer’s operations at Heathrow, which suffers from congestion and air traffic delays

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Industry executives believe BA will have to do more, even at the expense of future financial returns, and the airline has trimmed back its winter flying schedule.

IAG said the group had an “ongoing focus on improving our customer propositions and operational resilience”, and cut its forecast for annual capacity growth from 7 per cent to 6 per cent.

The company pinned this on “the impact of disruption and aircraft availability”.

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IAG’s direct rivals Lufthansa Group and Air France-KLM both reported a drop in third-quarter earnings amid higher costs and operational problems. Europe’s two major low-cost airlines Ryanair and Wizz Air also both reported substantial falls in quarterly profits.

IAG is not immune to the wider trends facing the industry, but its particular exposure to the transatlantic market and high-spending holidaymakers travelling in business and first class have left it particularly well-placed, analysts said.

Its strong quarterly performance was built on its two core markets: flying passengers across the Atlantic and on shorter regional trips in Europe.

IAG said passenger unit revenue, a rough proxy for ticket prices, rose 1.2 per cent, “despite an exceptionally strong comparative quarter in 2023“, again bucking a trend seen at many other airlines that have been unable to keep raising fares.

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BA’s unit revenue across the Atlantic was “particularly strong”, but Ireland’s Aer Lingus suffered from a pilots’ strike and more competition in its Dublin base.

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Travel

Victorian seaside town often overlooked by larger resorts has two-mile beach and one of the UK’s best pubs

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Bexhill-on-Sea is often overlooked in favour of other larger resorts nearby

A SEASIDE town with huge beach is often passed over in favour of nearby larger resorts, despite having an important part in UK history.

Bexhill-on-Sea in Sussex is near the bigger St Leonard’s, and welcomes far fewer tourists.

Bexhill-on-Sea is often overlooked in favour of other larger resorts nearby

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Bexhill-on-Sea is often overlooked in favour of other larger resorts nearbyCredit: Alamy
It has some amazing attractions including the Art Deco Art Deco De La Warr Pavilion, now an art gallery

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It has some amazing attractions including the Art Deco Art Deco De La Warr Pavilion, now an art galleryCredit: Alamy
You can still find your traditional seaside snacks along the beach

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You can still find your traditional seaside snacks along the beachCredit: Alamy

This is despite having a long two-mile beach, made of shingle, and with quaint cafes, beach gardens and beach hunts along the promenade.

Some even say it’s better than the nearby Brighton – one tourist wrote: “Compare this to busy Brighton and there’s no comparison if you just want a quiet day on the beach.”

It is also one of the sunniest places in the UK, being along the Sussex coastline.

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One of the main seafront attractions is the Art Deco De La Warr Pavilion, built in 1934 and one of the country’s first modernist buildings.

Read more on seaside towns

Costing £80,000 to build (working out to £1.8million in today’s money), it is now used as an art gallery.

Bexhill-on-Sea has also been dubbed the ‘birthplace of British motor racing’.

The town hosted the UK’s first motor race in 1902, won by French driver Leon Serpollet with speeds up to 54mph

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Petrol heads can now head to Bexhill Museum to learn about it’s motor history, as well as the town’s history in general including dinosaurs and shipwrecks in the area.

While not short of pubs, there is one you should pick that was named one of the best in the country.

Brickmakers Alehouse was listed as one the UK’s top pubs by Campaign for Real Ale (CAMRA) this year.

The up-and-coming English seaside town with cheap booze and huge beaches

Otherwise there is also the The Picture Playhouse, a Wetherspoons pub built into a 1921 cinema.

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TV presenter Graham Norton previously lived in Bexhill, putting up his house for sale for £2.3million back in 2017.

Other famous celebs include Eddie Izzard and Spike Milligan.

The town is also getting a multi-million pound renovation, as part of the government’s £20 million levelling up scheme.

The town is getting a multi-million revamp too

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The town is getting a multi-million revamp tooCredit: Alamy

Fancy staying? Most of the places in Bexhill-on-Sea are B&Bs and home rentals although there are a few hotels.

There is the coastal The Relais Cooden Beach, with it’s own private beach, or the boutique The Driftwood with just six rooms.

Trains to Bexhill take just under two hours from London, with routes from St Pancras and Victoria.

Or its an hour’s drive from Brighton, for day-trippers.

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Another Victorian seaside town is Frinton-on-Sea in Essex, which was loved by royals and even visited by Winston Churchill.

Or there is Matlock Bath, a ‘seaside’ town that isn’t on the beach – and we sent a reporter down to explore.

The town is around two hours from London

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The town is around two hours from LondonCredit: Alamy

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Asda, Primark, Sainsbury’s and M&S bosses issue urgent warning for shoppers as there’s ‘no magic money tree’

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Now self-checkouts for RETURNS appear at major supermarket in first-of-its kind trial

BOSSES of major retailers including Asda, Primark, Sainsbury’s and M&S have issued an urgent price rise warning.

Shoppers have been told to expect price increases after Chancellor Rachel Reeves announced a hike in employers’ National Insurance costs in last week’s Budget.

Retailers have warned that shoppers will face higher prices at the checkout

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Retailers have warned that shoppers will face higher prices at the checkout

Retailers have said the tax raid will cost them millions of pounds and mean they have to look at cutting costs and rising prices.

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Asda chairman Stuart Rose said the increase would cost the supermarket giant £100million, and inevitably lead to price increases at the checkout.

He explained: “You cannot absorb £100milion of cost. We don’t have a magic money tree in Leeds.”

The price rise warning followed that by Sainsbury’s chief executive Simon Roberts, who said the supermarket “just didn’t have the capacity to absorb this level of unexpected cost inflation”.

Mr Roberts predicted the National Insurance hike would cost the business £140million and added that it would “feed through into higher inflation”.

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Wetherspoon boss Tim Martin said the pub giant would aim to remain competitive on pricing, but would see its tax bill rise by two-thirds next year.

Martin said: “Cost inflation, which had surged to high levels in 2022, gradually diminished over the subsequent two years.

“However, it has now significantly increased again following the Budget.

“All hospitality businesses, we believe, plan to increase prices, as a result.

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Wetherspoon will, as always, make every attempt to stay as competitive as possible.”

Four ways to save money at M&S

The pub giant predicted tax and business costs would increase by approximately £60million over the next year, including an estimated 67% rise in National Insurance contributions.

Wetherspoon’s warning on prices comes as M&S chief executive Stuart Machin also cautioned it was looking at a £120millin hit.

The retailer, which had reported a 20% increase in half-year profits, also said it would do “everything we can” to avoid passing on the extra burden to customers through price hikes.

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The chief executive of Primark’s parent company Associated British Foods, George Weston, said he felt “the weight of tax rises” in the Budget was falling on the UK high street.

He said the company’s National Insurance bill would rise by “tens of millions” of pounds, but it would try to “hold prices”.

While Weston said Primark would not immediately look to price increases, he added that the increase in costs would prevent it from cutting prices as quickly as it would have hoped.

In the Budget, Rachel Reeves hiked the employer rate of National Insurance from 13.8% to 15%.

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She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.

It’s estimated that the move will raise £25billion – the equivalent of around £800 per employee for each firm.

Businesses were quick to warn that the increased financial burden would lead to higher operating costs, which may ultimately be passed on to consumers through price rises.

In the aftermath of the Budget Reeves also conceded that hard-working employees will be affected by their bosses playing more National Insurance.

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What is the UK’s cheapest supermarket?

WE’RE all looking for ways to save on our supermarket shops. But which store should you go to if you’re on a strict budget?

According to Which?, who compare thousands of prices at the top eight UK supermarkets – Aldi, Asda, Lidl, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose – every month, there’s one place that outweighs the rest in terms of being budget-friendly.

In April 2024, Aldi was at the top of the list, with Which? comparing 67 popular groceries costing an average of £112.90.

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Lidl isn’t far behind, at £115.23, followed by Asda in third place with a bill of £126.98.

Tesco was next, at £128.17, while Sainsbury’s rounded out the top five with £131.02.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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Giorgia Meloni launches renewed effort to detain migrants in Albania

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The Italian navy ship Libra arrives at the port of Shengjin, Albania, on Friday, with the second group of migrants

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Italy made a second attempt at detaining Europe-bound asylum seekers in Albania on Friday, after a court sent the first group back last month.

The Italian government’s plan to hold up to 3,000 asylum seekers in two Italian-run centres in Albania is a cornerstone of Prime Minister Giorgia Meloni’s effort to curb the influx of irregular migrants into Italy from across the Mediterranean Sea.

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Her controversial plan suffered a serious setback last month, when an immigration judge in Rome ruled against the government’s move to hold 12 asylum seekers from Bangladesh and Egypt in Albania. The judge said the migrants had the right to be taken to Italy because their countries of origin could not be labelled as “safe countries”.

The ruling infuriated Meloni who complained that it was not “the judges’ competence to determine which countries are safe and which are not”. Her cabinet has since formally declared 19 countries, including Bangladesh and Egypt, as ‘safe’ for returns.

The latest group of eight asylum seekers who arrived in Albania on Friday all come from Bangladesh and Egypt. They were selected from hundreds of irregular migrants rescued by Italian authorities in the Mediterranean Sea in recent days. The men are expected to appear within 48 hours before an immigration judge, who must decide whether to approve their continued detention in Albania, or order their transfer to Italy.

Meloni said on Friday that her Albania scheme had drawn “extraordinary interest” from other European leaders at a summit in Budapest as they were all keen to find ways to curb irregular migrant inflows into their own countries.

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She said some leaders shared her concern about judges rejecting what a government deems as ‘safe’ for the return of those without genuine asylum claims.

According to those rulings, Meloni said there was a “risk of facing a reality where there are no safe countries”, which would undermine efforts to curb illegal migration.

Under Italy’s deal with Albania, only healthy adult men who come from countries that Rome deems safe can be held in the centres, which have the capacity to hold up to 3,000 people at a time. Once their asylum process is complete, those whose claims are rejected will be sent back, while those found eligible will get the right to stay in Italy.

Critics, including Italy’s opposition parties, have slammed the scheme as costly political theatre given the small percentage of irregular migrants arriving in Italy that are actually likely to be held there.

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So far this month, nearly 2,500 irregular migrants have arrived in Italy by boat from across the Mediterranean, according to interior ministry statistics.

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Rightmove reports ‘softer’ than expected activity on new build homes

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Murdoch’s REA ups Rightmove offer to £6.2bn

While Rightmove’s new homes developer partners are encouraged by the government policy support, new build activity remains softer than last year.

The post Rightmove reports ‘softer’ than expected activity on new build homes appeared first on Property Week.

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Ducati’s new 2025 Streetfighter V2 and V2S heading to India, priced at…- The Week

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Ducati's new 2025 Streetfighter V2 and V2S heading to India, priced at...- The Week

Indian Ducati fans are in for a treat as the new V2-based motorcycles, which are both powerful and light on the bank, make their way to India. Over the past few days, the Indian website of the Italian superbike brand has undergone significant changes, headlining the new Panigale and Streetfighter. While Panigale is a racing model, Indian markets were awaiting the nimble and powerful naked models under the Streetfighter tag.

Ducati has finally provided a much-needed update on its V2 motorcycles. The 2025 Streetfighter V2 and V2S are not your typical can’t-afford-a-V4-so-here-we-are bikes.

Earlier, V2s were getting the rap with many a rider opting for 208HP V4 over the 153HP V2—carrying a hefty price tag of USD 18,000 (about Rs 15.1 lakhs). But the latest 2025 Streetfighter V2 with a 120HP-producing 890cc V2 V-twin engine will cost you just below USD 15,000 (around Rs 12.5 lakhs) according to their global page, widening its gap from the V4. And suddenly, the Streetfighter could be an attractive buy that will go to war against the likes of KTM Duke 990, Triumph Street Triple, and Yamaha MT-09.

ALSO READ | EICMA 2024: India’s Royal Enfield goes all out at Milan

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The new Streetfighter V2S will now cost a bit more than the earlier V2, but it bears the Ducati’s “S” brand, making it a top-shelf beast. Both V2 and V2S get a 5-inch TFT dashboard derived from the one you stop in their new Panigale V4.

The India Ducati page has yet to update the price specs for the V2-based Streetfighters, but the V4 and V4S begin at ex-showroom tags of Rs 24.6 lakhs and Rs 27.8 lakhs, respectively. Indian buyers hope for a much more affordable price range, for these new V2s may have more takers.

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Sesame Bankhall acquires strategic stake in mortgage broker

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7IM buys Rockhold Asset Management

Sesame Bankhall Group (SBG) has acquired a strategic stake in New Homes Mortgage Services (NHMS) LLP.

NHMS is the largest appointed representative mortgage and protection firm in SBG’s Sesame Network, of which it has been a member for almost 30 years.

The deal sees SBG acquire a significant stake in the 40-adviser strong business, with the option to increase the shareholding in the future.

This is the first advice firm investment since SBG launched its new business growth strategy under CEO Richard Harrison earlier this year.

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The Cannock-based NHMS is a mortgage and protection advisory business specialising in the new build market.

It has 40 advisers and 80 employees and looks after the needs of 45,000 clients, with over £760m of mortgage lending and £1.4m of protection premiums annually.

While Richard Harrison will join the NHMS Board, the management team will remain unchanged, as will the roles and responsibilities of employees.

The news follows the recent announcement of a new strategic partnership between SBG’s PMS Mortgage Club and Bankhall businesses and intermediary platform Acre to jointly invest and create bespoke technology solutions for the Directly Authorised (DA) adviser market.

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Harrison said: “The investment in New Homes Mortgage Services is a significant step in our own journey and a clear indication of our ambitious business strategy and commitment to grow and develop our adviser network and the wider Group, through both organic growth and investment in like-minded adviser businesses.

NHMS managing director, Stewart Bartle, added: “We have ambitious plans to grow the business, and this was a natural next step in our journey to enable us to do that.

“From day one, it was clear that Sesame Bankhall Group’s own adviser-led growth strategy and vision matched ours, making them the perfect partner to support our long-term aim to become the UK’s largest mortgage broker, helping more people to achieve their home ownership goals.”

Sesame Bankhall Group is wholly owned by Aviva and provides support services to financial advisers across the UK. It is currently home to over 10,000 advisers.

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