Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Boeing has withdrawn its pay offer to striking machinists as negotiations between the aircraft maker and union members stall and the company’s debt teeters on the edge of a junk rating.
“Our team bargained in good faith,” Stephanie Pope, chief executive of Boeing Commercial Airplanes, wrote to employees in a letter released late on Tuesday. “Unfortunately, the union did not seriously consider our proposals.”
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The International Association of Machinists and Aerospace Workers District 751 said in an update on its website that Boeing was “hell-bent” on sticking to its now-rescinded offer made on September 23.
On Tuesday, S&P Global Ratings put the company’s triple B minus credit and senior unsecured debt ratings on a negative credit watch. Anything below triple B minus is considered a junk credit rating.
“The CreditWatch listing reflects the increased likelihood of a downgrade if the strike persists toward the end of the year,” S&P said.
Boeing’s September 23 offer sparked fury among the 33,000 IAM members employed by the plane maker who have been on strike since September 13. The union said the 30 per cent pay increase offered by the company circumvented normal bargaining by taking the offer directly to workers.
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“When we surveyed our members on that offer, the response was overwhelming — those who participated said it was not good enough,” IAM said on Tuesday.
The union added that Boeing, in its most recent negotiations, “refused to propose any wage increases, vacation/sick leave accrual, progression, ratification bonus [and] also would not reinstate the defined benefit pension”.
Pope, in withdrawing Boeing’s pay offer, said IAM “made non-negotiable demands far in excess of what can be accepted if we are to remain competitive as a business”.
IAM’s original demand was for a 40 per cent pay rise, as well as improved conditions. The machinists’ pay has risen 4 per cent over the past eight years.
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Boeing is struggling to improve its finances and operations after five punishing years that included two fatal crashes, a pandemic that curtailed travel demand and, most recently, an incident in which a door panel blew off one of its aircraft mid-flight.
The company has used billions of dollars in cash this year as it has slowed production to try to improve its manufacturing and quality processes. Analysts have said the company is also considering issuing equity of about $10bn to shore up its cash position.
Shares of Boeing are down about 5 per cent since the strike began on September 13.
ALL flights to Florida from the UK have been cancelled after the majority of airports confirmed they would be ceasing operations this morning.
A state of emergency has been declared ahead of category 5 Hurricane Milton expected to make landfall today.
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All flights to Florida have been cancelled due to Hurricane Milton (stock image)Credit: Getty
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Hurricane Milton is to make landfall later tonight
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Most airports have been forced to closeCredit: AFP
The storm is set to be one of the worst in 100 years, President Joe Biden warned, to hit the Tampa area, with more than six million people warned to evacuate.
Disney World has closed its park until at least tomorrow, along with Universal Orlando.
And airlines including TUI, British Airways and Virgin Atlantic have been forced to cancel more flights.
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Most airports in the state have already closed.
Read more on hurricane milton
Orlando Airport have stopped all operations, effective from 8am today.
The airport is yet to confirm when they will reopen.
Tampa Airport said on social media: “We will suspend flight operations at 9 a.m. Tuesday and reopen when safe to do so.”
VS225 – Edinburgh to Orlando has been delayed by 23 hours and is expected to operate on October 10
Thursday 10 October
VS091 – London Heathrow to Orlando
VS129 – London Heathrow to Tampa
VS130 – Tampa to London Heathrow
VS073 – Manchester to Orlando
VS074 – Orlando to Manchester
VS075 – Manchester to Orlando
VS076 – Orlando to Manchester
VS091 – London Heathrow to Orlando
VS092 – Orlando to London Heathrow
VS135 – London Heathrow to Orlando
VS136 – Orlando to London Heathrow
VS225 – Edinburgh – Orlando has been delayed by a further 23 hours and will now operate on Friday 11 October.
A Virgin Atlantic spokesperson asked passengers to “check the status of their flights” before travelling.
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Disney World is closing until at least tomorrowCredit: Reuters
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British Airways, Virgin and TUI have been affectedCredit: Getty
British Airways has cancelled the following flights.
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Wednesday 9 October
BA 2167 from London Gatwick to Tampa
BA 2037 from London Gatwick to Orlando
BA 2039 from London Gatwick to Orlando
Thursday 10 October
BA 2167 from London Gatwick to Tampa
BA 2037 from London Gatwick to Orlando
BA 2039 from London Gatwick to Orlando
A British Airways spokesperson said they were “adjusting flight schedules” and offering flight rebooking options or full refunds.
TUI has already cancelled a flight today, with more being ‘watched’ although are also likely to be cancelled, including:
A spokesperson said they were contacting customers directly who are affected.
Wednesday 9 October
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TOM070 from London Gatwick Airport
Thursday 10 October
TOM742 from Glasgow Airport
TOM 664 from Birmingham Airport
Other airlines that operate flights from the UK to Florida include American Airlines, Delta, JetBlue, Spirit Airlines, Norse Airways and Finnair, who have also cancelled flights.
Hurricane Milton is expected to make landfall just south of the city on Wednesday night.
Storm surges of 15ft are expected, with winds up to 165mph.
The storm was upgraded back to a Category 5 hurricane on Tuesday, hours after being downgraded to a Category 4 earlier in the day.
The National Hurricane Center (NHC) said: “It will be an extremely dangerous hurricane when it reaches shore”.
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Flight compensation rules
A look at your rights if a flight is delayed or cancelled, when your entitled to compensation and if your travel insurance can cover the costs.
What are my rights if my flight is cancelled or delayed?
Under UK law, airlines have to provide compensation if your flight arrives at its destination more than three hours late.
If you’re flying to or from the UK, your airline must let you choose a refund or an alternative flight.
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You will be able to get your money back for the part of your ticket that you haven’t used yet.
So if you booked a return flight and the outbound leg is cancelled, you can get the full cost of the return ticket refunded.
But if travelling is essential, then your airline has to find you an alternative flight. This could even be with another airline.
When am I not entitled to compensation?
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The airline doesn’t have to give you a refund if the flight was cancelled due to reasons beyond their control, such as extreme weather.
Disruptions caused by things like extreme weather, airport or air traffic control employee strikes or other ‘extraordinary circumstances’ are not eligible for compensation.
Some airlines may stretch the definition of “extraordinary circumstances” but you can challenge them through the aviation regulator the Civil Aviation Authority (CAA).
Will my insurance cover me if my flight is cancelled?
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If you can’t claim compensation directly through the airline, your travel insurance may refund you.
Policies vary so you should check the small print, but a delay of eight to 12 hours will normally mean you qualify for some money from your insurer.
Remember to get written confirmation of your delay from the airport as your insurer will need proof.
If your flight is cancelled entirely, you’re unlikely to be covered by your insurance.
Friends who live nearby and whose children attend the same school as ours have asked if we would consider a nanny share, as both of them have to be back in the office. We’re happy to share. Our children all get along well and our nanny, who will earn more caring for four children, has said she’s happy with the new arrangement. But how does this work in practice with pay, holiday and so on? We already have her payroll and pension set up as she’s worked with us for more than a year.Kirsty Wild, a nanny employment and payroll expert from Nannytax.co.uk
Kirsty Wild, a nanny employment and payroll expert from payroll services provider Nannytax.co.uk, says nanny shares are increasingly popular as parents look for ways to lower the cost of childcare while getting the kind of flexibility and at-home childcare that childminders and nurseries can’t provide. One nanny looks after the children of two families at the same time, sometimes at one family’s house or alternating between their homes, so there are social benefits for the kids, too.
Under this new arrangement, your nanny will now have two employers. You must pay her separately and at least the national minimum wage each. Nanny shares are typically a win-win arrangement for everyone involved. Typically, parents pay less per hour than they would for an exclusive nanny, while nannies can increase their earnings.
In the UK, nannies earn, on average, £15.51 per hour (gross), according to the latest Nannytax nanny salary index. That figure rises to £16.93 per hour in Greater London and the Home Counties and to £17.78 per hour in London. The minimum wage at the time of writing is £11.44 per hour for those over the age of 21. So, a nanny who cares for the children of two families will be paid at least £22.88 an hour before tax, while families can cut their childcare costs to minimum wage of £11.44.
Both of you will need employers’ liability insurance as well as separate employment contracts with the nanny and I suggest you take the time now to update your existing contract. This will be helpful if one family chooses to exit the arrangement before the other. The contract could specify a fair notice period of around four to six weeks to allow you to find another family to join the nanny share, and what the salary change would be if the nanny were to work with you exclusively again.
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The contract should also make clear how your nanny’s annual leave is to be agreed. A fair way to work this out might be for each family to decide on one week and the nanny to decide when she takes the remainder of her leave.
As for the question of payroll, some families want to split the nanny’s tax code, which is entirely at her discretion. This makes it fairer as it prevents just one of you paying basic rate tax on all of the nanny’s earnings. However, if both families are paying a gross salary this won’t be necessary, so I would suggest you both decide on a gross rate of pay with the nanny, which also makes life easier for you when budgeting. If you use a nanny payroll provider they’ll sort all the PAYE admin for you.
Don’t forget that if you’re eligible, and your nanny is Ofsted-registered, you can both pay her through the tax-free childcare scheme.
Should I abandon my plans to move to Italy?
I have been a UK resident non-dom for 10 years and, in anticipation of the new tax rules, I am in the process of buying a house in Italy to retire to, but I understand there have been some tax changes there which may affect my plans. Should I reconsider my decision and stay in the UK?
Alice Pearson, a partner at accountants Mercer & Hole, says that in a surprise move announced on August 7, the Italian government announced that anyone transferring their residence to Italy after August 10 2024 would pay a higher annual flat rate of tax, which has doubled from €100,000 to €200,000.
This is an optional flat rate tax available to new Italian residents for the first 15 years of residence, as an alternative to paying tax on foreign-sourced income and certain capital gains.
If you were hoping to access this special tax regime when you retire to Italy, you will potentially face the increased annual charge. With this in mind, you will need to decide whether Italy continues to offer you a more favourable tax regime compared with the UK.
UK tax rules for non-doms are also changing from April 6 2025 and you may find yourself exposed to UK tax on your worldwide income and gains for the first time. However, whether or not you will be better off under the Italian tax system depends on the scale of your income and gains, even more so now that the annual flat rate has doubled.
The main concern for many UK non-doms is around exposure to inheritance tax (IHT). It has been proposed that individuals who have been UK-resident for at least 10 years will be subject to IHT on their worldwide estate and will remain exposed for 10 years after giving up their UK residence. This again makes Italy’s flat tax system very appealing, as it exempts foreign assets from IHT.
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However, even if you were to move to Italy in the current tax year, it is still uncertain whether you will escape the 10-year rule. It is also not yet clear how this continued UK IHT exposure would interact with the UK/Italy estate double tax treaty.
You also need to consider what it is you need to do to break UK residence and whether that is possible with your lifestyle.
Our next question
I own a second home in Cornwall that I bought 25 years ago. I am aware there are likely to be changes in the October Budget that could significantly raise tax liabilities arising from the house. Before this happens, I plan to transfer half of the property to my adult son who already spends a few weeks there each year and to whom I was planning to leave the house. I would however like to continue to spend a few weeks there each year myself — will this cause any issues with HM Revenue & Customs? Does he also need to pay for the ongoing maintenance of the house for it to be valid?
The sudden change to the Italian flat tax is a stark reminder that the tax rules in any country could change at any time and you don’t want to jump from the frying pan and into the fire — particularly before the new UK tax rules have been confirmed.
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It is important to focus on the reason behind your decision to make the move. After a full discussion regarding their wealth, their objectives for the family and their future, many are choosing to stay in the UK and manage their exposure. You too might find you don’t need to leave the UK at all to achieve the objectives and retirement you want.
With the speed of these changes to the Italian tax rules, it is important for those who are considering a move to take advice relating to their individual wealth and circumstances, especially as the Italian parliament could make further changes to the law which are still in provisional form.
The opinions in this column are intended for general information purposes only and should not be used as a substitute for professional advice. The Financial Times Ltd and the authors are not responsible for any direct or indirect result arising from any reliance placed on replies, including any loss, and exclude liability to the full extent.
Do you have a financial dilemma that you’d like FT Money’s team of professional experts to look into? Email your problem in confidence to money@ft.com.
EBAY is set to ban private sales of a popular product in the UK, citing increasing safety concerns.
The move will come into effect on October 31, with only “eligible business sellers” allowed to continue offering the item on the platform.
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eBay is set to ban private sales of a popular product on its website in the UK
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The ban comes over fears of fire risks associated to the item
The clampdown focuses on e-bikes and their batteries, following a sharp rise in incidents involving battery fires.
The London Fire Brigade reported 155 e-bike fires so far this year, a jump of 78% compared to 2022.
E-bikes, equipped with electrically-assisted pedals and battery power, have surged in popularity, but their safety has come under scrutiny.
In one tragic case, a man died when a battery pack he was charging overheated and ignited, leading to a house fire.
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Read more on banned items
The UK’s regulatory body recently classified e-bike battery packs as “dangerous products,” further intensifying calls for better consumer protection.
An eBay spokesperson said: “Consumer safety is a top priority for eBay,” adding that the firm would audit sellers to ensure they meet CE mark safety standards for listed products.
The charity Electrical Safety First has praised eBay’s decision but insists new laws are necessary to safeguard consumers across all online platforms.
A spokesperson said: “We are encouraged to see eBay take proactive steps in an attempt to reduce the risk of substandard batteries entering people’s homes, as they pose a serious risk of fire if they fail.
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“Whilst this voluntary move is welcome, we continue to call for online marketplaces to be legally obligated to take reasonable steps to ensure products sold via their sites are safe.
“We hope the Product Regulation and Metrology Bill will mandate this.
Explosion Rocks Alloa: Major Emergency Response Deployed
“This legislation must also be used to prevent battery fires by introducing mandatory third-party certification for e-bikes, e-scooters and their batteries to stop poor quality products from entering the market.
“It should also introduce more robust standards for conversion kits and regulations for charging.“
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The Product Regulation and Metrology Bill, currently progressing through Parliament, could eventually make these obligations law.
For now, eBay’s ban on private e-bike sales is seen as a crucial step toward reducing fire risks associated with the product.
Despite the impending restrictions, nearly 3,000 used e-bikes are still available on eBay, highlighting the challenge of managing the growing demand for these vehicles while ensuring safety.
Last year, 11 people lost their lives to fires involving e-bikes and e-scooters, with hundreds injured as a result of the fires caused by the lithium-ion batteries.
Other victims include Sofia Duarte, who died in London on New Year’s Day 2023 at the age of 21, when a converted e-bike caught fire during the night.
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Sofia was unable to escape the building with the fire blocking her escape route.
Alda Simoes, a friend of Ms Duarte, said: “We are out of time to save our beautiful Sofia and everyone that has passed away like her.
“But we will do everything in our power to prevent others going through what Sofia’s mum, me, family and friends are going through.
“This problem is a public safety issue that needs action from all political parties to introduce new measures to tackle the increasingly problem of e-bike battery fires.
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“The number of these fires caused by these batteries keeps rising and we urgently need intervention to protect the public.
“Change needs to happen. There are people dying, what are we waiting for? Sofia’s death must have a purpose. If nothing changes, her death will be in vain.
“I am urging the next Government and all political parties to please, help us create change.”
On March 21, fire crews were called to an exploding e-bike on a train platform in Sutton, London, with dramatic footage showing flaming battery cells being projected from the battery across the platform.
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Fire crews in Wakefield, West Yorkshire, were called to a property fire on April 6 following a severe fire that resulted in one person being taken to hospital with serious injuries.
The cause was deemed to be a charging e-bike.
Five others suffered minor injuries.
Four children were among six people taken to hospital due to smoke inhalation following an e-bike fire near Croydon at the beginning of April that caused serious damage to their maisonette, destroying the staircase between the first and second floor
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Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
The head of KPMG US says the industry urgently needs to make it easier to become an accountant, and the EU is suing Hungary’s government over a new security law it says is in breach of citizens’ fundamental rights. Plus, India races to extract as much oil as possible while there remains a market for crude.
The FT News Briefing is produced by Niamh Rowe, Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Michela Tindera, Breen Turner, Sam Giovinco, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Our engineer is Joseph Salcedo. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.
Scottish Widows has launched a flexible income protection product to help bridge the gender protection gap.
The product has been designed to be simple and easy to understand for established protection advisers, holistic advisers and those who may be new to advising in this area.
Research by Scottish Widows found that just 8% of people in the UK have cover in place if their income stopped suddenly.
Meanwhile, 42% of UK adults worry that their household wouldn’t cope if they were unable to work.
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The data also revealed a gender protection gap with 29% of surveyed women saying they could not afford protection compared with 23% of men.
Over a quarter (29%) of women surveyed said they would expect to rely on a partner’s income if they could not work.
Scottish Widows’s intention with its new product is to build financial resilience for clients against financial shocks in their moment of need and enable a greater number of advisers to incorporate income protection into their recommendations.
The launch enhances the suite of products available through the recently digitised Scottish Widows Protect platform and via the UnderwriteMe Protection Platform portal; the product will be available on other protection portals in the coming weeks.
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These latest developments provide advisers with a streamlined application process, an accelerated underwriting journey, and a better client experience.
As part of the launch, Scottish Widows has joined the Income Protection Task Force (IPTF), formalising its long-term commitment to open dialogue on ways to extend income protection across the country.
Product benefits
Fracture and hospitalisation cover – included as standard with no extra charge.
Rehabilitation/Proportionate benefit – a top-up payment to help clients resume work.
Partnership benefits- clients can benefit from a range of partnerships available through Scottish Widows Protect:
‘Clinic in a Pocket’ (included in cover) to receive a GP sick note quickly and access to a GP 24/7
A dedicated personal nurse service in partnership with Red Arc.
Immediate income payment – received whilst the claim is still being assessed, provided a GP note is supplied and once the deferred period has passed.
Mental health underwriting – Scottish Widows won’t decline an income protection application for mental health without an underwriting review conducted by a real person, rather than AI. We also ask the customer if they’re doing anything to improve their condition, for example improved nutrition, sleep or exercise. Where customers are proactively taking steps to improve their mental health we can provide better underwriting rates.
Price lock promise – guarantees the quote for up to 12 months, subject to underwriting terms being imposed.
Reduced earnings with our minimum benefit guarantee, even if your client’s earnings have reduced, as long as their monthly claim payment is more than £1,500, we won’t pay them less than this.
Scottish Widows protection director Rose St Louis said: “Life doesn’t always go in a straight line and an unexpected adverse health event can have a significant impact on our ability to remain financially stable.
“This is where products like income protection can come to the rescue and have a meaningful impact in reducing income ‘troughs’ if you’re unable to work due to illness or disability.
“Launching income protection is part of our effort to help customers feel prepared, no matter what life throws at them.
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“Our research shows women are less likely to have protection, and we want to be part of the solution towards closing the gender protection gap while also making it easy for established protection writers, as well as those new to protection, to write this type of business.”
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Israeli troops and Hizbollah fighters clashed near the Lebanese border in the early hours of Wednesday, a day after Israel carried out one of its largest waves of air strikes on southern Lebanon since the conflict erupted a year ago.
Israeli air strikes pounded targets across Lebanon on Tuesday and overnight, including in southern Beirut, as its invading ground forces attempted to push into the south of the country and fought battles with Hizbollah fighters embedded in the rugged terrain.
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Videos shared on social media showed soldiers raising the Israeli flag in the border village of Maroun al-Ras where fighting had taken place in recent days. It is not clear if the Israeli troops remain there. Hizbollah said it had fired rockets at soldiers south of the village on Wednesday.
The Iran-backed militant group said overnight that its fighters had confronted Israeli troops trying to “infiltrate” the border village of Blida after targeting them with an explosive device. Hizbollah also said its militants fired rockets and artillery shells, forcing the retreat of Israel Defense Forces trying to advance near Labbouneh in the south-west.
Israel said at least three soldiers were wounded in the fighting this week, as its ground offensive swelled to four combat divisions — as many as 20,000 troops at maximum strength. The Israeli army is breaching the border in at least four locations after launching its invasion last week, with each division probably supporting each point of entry, an Israeli official said, declining to provide more details.
While much of the direct fighting between Israeli troops and Hizbollah fighters continues to be limited to an area close to the border, the Israeli air force has carried out a large series of co-ordinated air strikes concentrating on southern Lebanon but extending into the Bekaa Valley, the IDF said.
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Hizbollah has responded by firing projectiles into northern Israel and as far south as Haifa, a commercial and cultural hub. A handful of rockets were also launched towards Tel Aviv this week.
The IDF said it had tracked 180 “projectiles” crossing from Lebanon into Israeli territory through late Tuesday night, including a major barrage at Haifa during a defiant video address by Hizbollah deputy leader Naim Qassem, who said the group’s military capabilities remained intact despite Israel’s escalating offensive in recent weeks.
Israeli bombardment has decimated the command structure of the group, including killing Hassan Nasrallah, its top leader.
The air strikes on Tuesday were the second-largest wave of attacks since Israel dramatically intensified its air campaign against Hizbollah in Lebanon late last month, two Israeli officials said, as it focuses on a large bank of targets identified by military intelligence.
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That wave of bombings, which began around September 20, eventually included nearly 5,000 air strikes over several days, according to a Financial Times tally.
Israeli strikes have killed more than 2,100 people over the past year and forced about 1.2mn from their homes, mostly in the past two weeks, according to Lebanese authorities.
Tuesday’s bombings were aimed at more than 125 “significant targets”, the IDF said. Dozens of underground structures for at least three Hizbollah military units were destroyed — killing at least 50 Hizbollah operatives — as were 30 different locations involving Hizbollah rockets, the IDF said.
Israel has said its Lebanon offensive is aimed at securing its northern border area to allow about 60,000 Israelis to return to their homes, after a year of exchanging cross-border fire with Hizbollah. The Lebanese group had started firing rockets towards Israel in support of Gaza a day after the October 7 2023 Hamas-led attacks on southern Israel.
IDF spokesperson Rear Admiral Daniel Hagari said late on Tuesday after the air strikes had mostly concluded that the Hizbollah fighters killed had been trained to infiltrate the border to “murder and abduct Israeli civilians”.
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