Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Chinese stocks tumbled more than 7 per cent on Wednesday, snapping a 10-day winning streak on investor fears that Beijing’s stimulus package will not be enough to revive growth in the world’s second-largest economy.
The CSI 300 index of Shanghai- and Shenzhen-listed shares fell 7.1 per cent, closing below the 4,000 mark in a partial reversal of the market’s historic equity rally over the past two weeks.
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The fall was sparked by a meeting of Chinese state planners on Tuesday — the first by policymakers after a week-long holiday — in which they provided no details of significant new spending plans to lift the economy. Wednesday’s drop was the biggest one-day decline for Chinese stocks since February 2020.
The sell-off came despite signs policymakers were preparing to announce more detailed measures this week. On Wednesday, officials announced that a finance ministry special briefing on Saturday focused on “intensifying countercyclical adjustment of fiscal policy”, which economists believe could point to additional stimulus measures.
Many economists and investors say a package of fiscal stimulus is needed to boost growth, on top of the monetary stimulus announced last month by the central bank.
“To exit deflation, we believe the need of the hour is a package of Rmb10tn geared towards supporting consumption and clearing the property inventory,” Morgan Stanley analysts said in a note.
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But they added that “policymakers appear hesitant to enact forceful fiscal easing”, with the size of any stimulus constrained by China’s already high public debt and declining tax revenues as local governments suffer a fall in land sales.
The yield on China’s 30-year government bonds fell 2.5 basis points to 2.345 per cent, and the renminbi weakened just under 0.1 per cent against the dollar to Rmb7.07.
Premier Li Qiang, China’s second-highest official, sought to boost investor sentiment, telling a gathering of economists and entrepreneurs on Tuesday: “When formulating and implementing policies, we should pay attention to . . . the voice of the market.”
Economists believe China needs to inject up to Rmb10tn ($1.4tn) to reflate its economy after a property slowdown and government crackdowns on sectors such as ecommerce, finance and private education weakened consumer confidence.
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While the country’s manufacturing sector is surviving on strong export volumes, household demand is weak as consumers save money out of concern over falling property values and pay cuts.
“We see limited fiscal measures in the near term,” the Morgan Stanley analysts said, adding that if “social dynamics weaken materially, it could act as a trigger for forceful fiscal easing”.
Many analysts believe Beijing is reluctant to issue large amounts of new debt to channel funds to consumers, as many western countries did during the pandemic, preferring investment-led stimulus instead.
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But if an economic downturn threatens social stability — the overriding priority of Communist party leaders — they might be forced to take more extreme measures to restore confidence, such as steps directly targeting household incomes.
SIR Keir Starmer has refused to rule out a National Insurance hike for employers despite Labour’s manifesto vowing not to do so.
Tory leader Rishi Sunak grilled the PM three times, demanding to know if he would stand by his pledge.
But Sir Keir dodged the questions, leaving the door wide open for a tax raid on employers.
Labour’s manifesto stated that “Labour will not increase taxes on working people, which is why we will not increase National Insurance, the basic, higher, or additional rates of income tax, or VAT” .
In their first exchange at Prime Minister’s Questions after party conferences season, Mr Sunak said: “Can he confirm that when he promised not to raise income tax, National Insurance or VAT that commitment applies to both employer and employee national Insurance contributions?”
Sir Keir replied: “As he well knows I am not going to get drawn on decisions that will be set out [at the Budget].
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“We made an absolute commitment in relation to not raising tax on working people.
“He of course was the experts’ expert on raising taxes.”
Asked the same question again, Sir Keir would only go so far as to say that he would stick to the promises made in Labour’s manifesto.
The PM also refused to rule out changing fiscal rules to increase Budget spending power.
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It comes amid speculation Rachel Reeves could do to potentially unlock up to £57bn in additional spending on infrastructure.
Replying to Mr Sunak, Sir Keir said: “This is literally the man who was in charge – 14 years they crashed the economy. What did they leave? A £22 billion black hole.”
The Tory leader then told the Commons: “He has opened the door to raising employer National Insurance contributions including on pensions and fiddling the figures that he can borrow more.”
Shadow Chancellor Jeremy Hunt also hit out on Twitter: “The Prime Minister has today left the door open to the Labour Party breaking their promises to the British people by raising taxes and increasing borrowing, leaving future generations to pick up the bill and risking higher interest rates.
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“Keir Starmer and Rachel Reeves should have had the courage and conviction to be honest about the tax and borrowing plans they always planned.”
What is National Insurance and what is the difference between employee and employers contributions?
NATIONAL Insurance (NI) is a tax on earnings and self-employed profits in the UK that helps pay for state benefits.
Both employees and employers must pay NI, but their contributions work differently.
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Employee contributions are deducted directly from their salary based on how much they earn.
Employer contributions, on the other hand, are additional payments that businesses make based on their employees’ wages.
This means that for every employee, the company pays extra to the government.
Employees’ NI contributions affect their eligibility for benefits like the state pension, while employers’ contributions are just a cost of hiring staff.
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An increase in employer NI means higher employment costs, which could impact hiring decisions and salaries.
The agreement will allow customers to book combined air and rail itineraries, with frequent flyers able to earn and redeem miles / points on eligible services
The outgoing boss of the Post Office has said its leadership were “part in denial, part in paralysis” about issues with the IT system behind the wrongful prosecution of hundreds of sub-postmasters when he joined in 2019.
Nick Read said bosses were instead focussed on the company’s financial performance, adding he was not made aware of the “scale and enormity” of the Horizon IT scandal.
He told an inquiry that when a High Court judgement was handed down that found serious bugs, errors and defects in the Horizon system, there were “no urgent calls or panicked discussions” among senior leadership.
He agreed with a lawyer’s suggestion that bosses were “living in something of a dream world”.
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He said it would be “impossible not to conclude that”, when asked by the inquiry’s lead counsel Jason Beer KC.
Between 1999 and 2015, hundreds of sub-postmasters were wrongly prosecuted when faulty Horizon accounting software made it look as though money was missing from branches.
But in 2017, some 555 sub-postmasters took legal action against the Post Office. In 2019, it agreed to pay them £58m in compensation, but much of the money went on legal fees.
The High Court judgement found the Horizon IT software contained a large number of software defects and was not “remotely robust”
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Mr Read told the inquiry that after the High Court judgement was handed down in 2019, he started working with Post Office lawyers so there was “more of a realisation from my perspective” compared with the other members of the leadership team.
Mr Read, who will step down from his role next year, is giving evidence to the inquiry into the scandal for three days.
He said he would be stepping back from front-line duties next year to give his “entire attention” to the final stage of the inquiry, which first started in 2022 and has heard evidence from scores of victims and executives.
When he took over Mr Read was tasked with turning around the loss-making Post Office at a time when the organisation was facing a crisis of faith as the scale of the Horizon scandal came to light.
Previously the title was held by the famous Kew Gardens design, which features the site’s iconic Chinese Pagoda and displays the years 1759 and 2009.
The new coin, which is one of the first released featuring King Charles’ face, features an engraving of salmon fish jumping out of Atlantic ocean water on the other side.
The value of the Salmon coin has since skyrocketed after the Royal Mint revealed to The Sun how few of the them have gone in to circulation.
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According to Changechecker, the piece, initially worth around £50, has shot up to £150 in the secondary market, with prices expected to rise further.
A Changechecker spokesperson said: “The circulation 2023 Salmon 50p has knocked the legendary Kew Gardens 50p off the top spot, meaning Britain has a new rarest 50p for the first time in 15 years.
“It was announced on October 7, 2024 that just 200,000 2023 Salmon 50ps entered circulation in November 2023.
“Due to it’s incredibly low mintage, just one in 335 people in the UK could have the chance of finding one in their change.
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“When the Kew Gardens 50p was first issued in 2009, collectors didn’t initially realise just how rare it would be, and many people who found one in their change parted with it and later kicked themselves.
“Now, 15 years later, the Kew Gardens coin regularly sells for between £150 to £250 on the secondary market, so it’s no surprise that they’re already selling on the secondary market for up to £200.
“For many, snagging a Salmon coin could be a second chance at coin-collecting glory.
“In terms of identifying rare coins, we would urge collectors to check mintage figures as well as keep up to date with our Scarcity Index which is updated quarterly.”
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Eager collectors are rushing to secure one before values spiral even higher.
Coins have already fetched high bids on eBay, with one coin selling for £164 on October 7.
Another listing currently sits at £185, and yet another is asking for a staggering £500 as demand surges – though there’s no guarantee that these will sell for that much.
A coin is only ever worth what someone else is willing to pay at the time.
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The Royal Mint confirmed that 200,000 Atlantic Salmon coins were distributed to banks and post offices late last year, as part of a commemorative series marking the ascension of King Charles III.
This figure beats the 210,000 Kew Gardens coins minted 15 years ago, making the Atlantic Salmon officially the rarest 50p in circulation.
Rebecca Morgan, director of commemorative coins at The Royal Mint said: “The releasing of mintage figures is an eagerly anticipated event among the coin collecting community.
“This year is particularly exciting as we reveal the Atlantic Salmon as the rarest 50p in circulation.”
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As the Atlantic Salmon swims to the top of the rarest 50p list, the Kew Gardens coin drops to second place, followed by other valuable pieces such as the Olympic Football and Olympic Wrestling coins.
Top ten rarest 50p list
The updated top ten now includes:
2023 Atlantic Salmon – 200,000 made
2009 Kew Gardens – 210,000 minted
2011 Olympic Football – 1,125,000 minted
2011 Olympic Wrestling – 1,129,500 minted
2011 Olympic Judo – 1,161,500 minted
2011 Olympic Triathlon – 1,163,500 minted
2018 Peter Rabbit – 1,400,000 minted
2018 Flopsy Bunny – 1,400,000 minted
2011 Olympic Tennis – 1,454,000 minted
2011 Olympic Goalball – 1,615,000 minted
Rare coins, especially those with low mintages, can fetch hundreds, even thousands of pounds.
Error coins, produced with manufacturing mistakes, are also highly sought after by collectors.
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Some have been known to sell for as much as £1,500 to £2,500.
How to sell a rare coin
There are three ways you can sell rare coins – on eBay, Facebook, or in an auction.
If you’re selling on Facebook, there are risks attached.
Some sellers have previously been targeted by scammers who say they want to buy a rare note or coin and ask for money up front to pay for a courier to pick it up.
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But the courier is never actually sent and you’re left out of pocket.
Rather than doing this, it’s always best to meet a Facebook seller in person when buying or selling a rare note or coin.
Ensure it’s a public meeting spot that’s in a well-lit area and if you can, avoid using payment links.
Next, you can sell at auction, which is generally the safest option.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
I went to Lisboeta to try chef Nuno Mendes’s white-bean feijoada, a vegetarian version of the Portuguese staple. But I was sidetracked by the bread porridge. Now there’s a sentence I never thought I’d write. This was thanks in equal part to the surprise factor of stale bread being transformed into something so rich and comforting, and also the effortless (and easily replicated) glamour of any plate crowned with an egg yolk.
This recipe is the result of some back and forth, testing and retesting, to create a version of the dish that is simple enough to cook at home, without losing any of its sophistication.
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To drink Dry Madeira and mushrooms are a classic combination and “super under the radar,” says Nuno. Use the same one you use in the recipe.
Substitutions The depth of flavour from shiitake mushrooms makes them preferable to other varieties. You can use Madeira throughout instead of port. Stale sourdough has the best texture, but any bread would work, including fresh.
Tip Because of their high water content, mushrooms take far longer to cook than most people realise, particularly for a dish like this where you’re trying to create an intense flavour.
Nuno Mendes’s Mushroom Açorda
To serve four
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For the stock and mushrooms
For the açorda
The night before cooking, soak the bread in 300ml of water and leave it in the fridge. Turn the bread occasionally so that the water penetrates evenly. (If you need to use more water, that’s fine, but make sure to drain well afterwards so it’s not waterlogged.)
To make the stock
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Start by peeling and cutting the onion in half, and cutting the mushrooms into 1cm-thick slices.
Add the olive oil, halved onion and mushrooms to the pan, and cook on a low heat, then a higher heat once they have released their water. Get the mushrooms to the point where they are golden-brown — this will take about half an hour.
Add half the Madeira and let it cook off, so there is no liquid in the pan.
Add the water, bring to the boil and simmer for 20 minutes.
Set aside for 10 minutes to cool and then strain, discarding the onion but making sure to retain the mushrooms in a bowl. Add the rest of the Madeira to the stock and season to taste.
To make the açorda
Finely dice the white onion and garlic.
Add the olive oil and garlic to a medium pan on a low heat then, after two minutes, add the onion, coriander stems, spices and half the mushrooms from the strained stock and fry everything until golden brown.
Add the port, soaked bread and 50ml of the stock, cooking on a low heat until everything comes together into a pastelike texture. Check for seasoning and keep adding more stock if you need to loosen the mix.
Fry the remaining cooked mushrooms separately in a touch of olive oil until they are crispy again.
To serve
Place the açorda in the middle of a plate. Distribute the just-fried mushrooms on top of the dish, then add a raw egg yolk to the middle. Before serving, top with two tbs of mushroom stock.
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Aviva has completed a £1.5bn bulk purchase annuity full-scheme buy-in with the Michelin Pension and Life Assurance Plan.
The transaction, completed in September 2024, includes an in-specie transfer of assets. It secures the benefits for c15,000 members of the Michelin Pension scheme.
CEO of insurance, wealth, and retirement at Aviva, Doug Brown, said: “This is a significant deal showing the strength of our bulk purchase annuity business in securing good outcomes for pension scheme members.
“We are well positioned to carry out large-scale transactions in addition to our capability in the small and medium scheme market.”
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Vincent Dormieux, chair of trustees for Michelin Pension and Life Assurance plan added: “The Trustee is delighted to have improved the long-term security of members’ benefits by completing this buy-in transaction with Aviva.
“I’d like to place on record our sincere thanks to our full advisory team and to the Michelin Group for its support through the process.”
The Michelin Pension and Life Assurance Plan Trustee was advised by XPS Group and legal advice was provided by Pinsent Masons LLP.
Head of risk settlement at XPS Group, Stephen Purves, said: “We’re really pleased to have led on this important transaction and to have helped the Trustee secure its members’ benefits with Aviva.”
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Aviva operates in the UK, Ireland and Canada and also has international investments in India and China.
The insurance giant has 19.5 million customers and its total assets under management were £398bn as of 30 June 2024.
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