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Rising Middle East violence piles pressure on Kamala Harris

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Kamala Harris’s hopes of limiting the political fallout from the conflict in the Middle East have been dashed by escalating tensions between Israel and Lebanon and the rising danger of all-out war in the region.

On the US presidential campaign trail, Harris has vowed to keep pursuing a ceasefire deal in the year-long war in Gaza that could pave the way for a return to stability across the Middle East.

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But with little more than a month to go before the November election, the reality on the ground has moved in the opposite direction: the US has failed to broker a truce in Gaza while Israel has intensified its operations against Hizbollah, the Iranian proxy group that has been launching missiles from Lebanon into northern Israel for months.

On Friday, Israeli forces took their assault on Hizbollah to a new level with massive strikes on Beirut, the Lebanese capital, killing Hassan Nasrallah, the group’s leader. This has further increased the prospect of a widening conflict that the Biden administration has been trying to avoid.

Harris at the weekend issued a statement reiterating that the White House did not “want to see conflict in the Middle East escalate into a broader regional war” and “diplomacy remains the best path forward to protect civilians and achieve lasting stability in the region”.

US officials insist that the strike on Nasrallah had not been co-ordinated with Washington. “I can tell you the United States had no knowledge of or participation in the [Israel Defense Forces] action,” President Joe Biden said on Friday.

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The risk for Harris is that her repeated calls for an easing of tensions in the Middle East will ring hollow as Israel’s government led by Prime Minister Benjamin Netanyahu continues to reject de-escalation and presses ahead with its offensives.

To critics, it is a sign that the Biden administration has been unable or unwilling to exercise its leverage over Netanyahu, a dynamic that has dogged Washington’s response to the conflict since Hamas’s October 7 attack on Israel last year.

The surging hostilities in Lebanon are a particular blow to Harris because they will make it harder for her to patch up relations with parts of the Democratic coalition — including Arab Americans and young voters — who have been especially critical of the administration’s handling of the war in Gaza and are threatening to stay out of the election. Even just a few thousand defections could make a difference in key battleground states such as Michigan, Pennsylvania and Wisconsin.

“In a close race, every little audience matters,” said Mary Anne Marsh, a Democratic strategist. While Middle East policy is not a broad-based issue like the economy or abortion, she said it was “important to certain groups of voters” such as Jewish and Arab-American people. “Those audiences will be paying attention to all this,” she said.

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Many Republicans are criticising Harris from a different perspective, arguing that the administration has failed to deter Iran and its proxies from attacking Israel and has been too hesitant in its support for Israel.

They say Trump would be better positioned to calm the region as part of a broader pitch that Biden and Harris have blundered on foreign policy and struggled to rein in US adversaries under their watch.

“The Biden administration is paralysed by fear of Iran. In the name of not escalating, the world is on fire. So I promise you, if Trump does win, we’re going to fix this pretty quick”, Lindsey Graham, the Republican senator from South Carolina, told CNN on Sunday.

Tom Cotton, the Republican senator from Arkansas, told CBS that rather than calling for de-escalation, the US “should help Israel drive Hizbollah to the mat and choke it out and finish it off once and for all” so that “Iran would be exposed on its flanks with no terror proxy capable of devastating Israel”.

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Democrats insist that Harris would be a far more stable leader on the international stage than Trump, pointing to her recent endorsements from former military and diplomatic officials who have served under administrations of both parties.

But the developments in the Middle East are causing increasing alarm in Washington. US officials said they were prepared for a response to the attacks from Iran, noting that the country had shifted more resources to the region, though it was too soon to tell what Tehran might do.

In a separate announcement, the US military said it had launched two strikes in Syria, killing 37 people including senior members of al-Qaeda and Isis.

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“I would urge both sides, Israel and Hizbollah, to take a look at the far ridge line,” Stanley McChrystal, the retired army general who led US forces in Afghanistan and Iraq and has backed Harris for president, told CBS, referring to the need for them to take a longer-range view. “Just spiralling the violence is unlikely to produce a good outcome.”

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Travel

Virgin Atlantic moving to dynamic pricing for reward seat redemptions

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Virgin Atlantic moving to dynamic pricing for reward seat redemptions

Flying Club members will be able to redeem points against any Virgin flight, but pricing will “vary in line with demand, in a similar way to standard tickets”

Continue reading Virgin Atlantic moving to dynamic pricing for reward seat redemptions at Business Traveller.

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Aston Martin and Stellantis shares slump after profit warnings

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Aston Martin and Stellantis shares slump after profit warnings
Getty Images An Aston Martin on an English country roadGetty Images

Luxury carmaker Aston Martin’s share price sank more than 20% after it said profits will be lower than expected this year.

The company, famed for its links to fictional superspy James Bond, has been hit by supply chain issues and falling sales in China.

The share price of Stellantis, the owner of brands such as Peugeot, Citroen, Fiat and Jeep, also plummeted on Monday after a profit warning.

Carmakers across Europe have been suffering lately, with disappointing sales and increased competition from abroad taking a heavy toll on earnings.

Aston Martin is a prestige brand which makes upmarket cars in relatively small quantities.

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Last year, it sold 6,620 vehicles, with about a fifth of those going to the Asia-Pacific region.

However, the company says it has been hit by a fall in demand in China, where a slowing economy has affected sales of luxury cars.

It has also been affected by problems at a number of suppliers, which have affected its ability to build a number of new models.

As a result, Aston says it will make about 1000 cars fewer than originally planned this year.

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Sales, which had originally been forecast to rise, are now expected to be lower than in 2023, and earnings will fall short of current market expectations.

Adrian Hallmark, who became Aston Martin’s chief executive a few weeks ago, said it had become clear that “decisive action” was needed to adjust output.

But he added that he was “even more convinced than before” about the brand’s potential for growth.

Industry giants suffering

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Meanwhile, Stellantis has become the latest large-scale carmaker to revise its financial forecasts, thanks to a deterioration in the industry outlook.

The company has been struggling with weak demand in the US, a key market, where it has been forced to offer discounts in order to shift unsold stock.

It has also been facing increased competition from Chinese brands, which have been expanding aggressively abroad.

As a result, it sais it expects its profit margins to be significantly lower than previously thought this year.

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The announcement sent its shares tumbling. By lunchtime on Monday, the price was down more than 14%.

The problems at Stellantis and Aston Martin reflect a wider malaise in the European car industry.

On Friday, Volkswagen issued its second profit warning in three months, while it has also suggested it might have to close plants in Germany for the first time in its history.

Its German rivals Mercedes-Benz and BMW have also downgraded their profit forecasts in recent weeks.

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Among the common issues are falling sales in China – until recently a highly lucrative market for expensive and profitable high-end models – coupled with growing competition from Chinese brands in other markets.

EV sales falter

Sales of electric cars, which manufacturers have invested huge sums in developing, have been faltering badly in Europe.

According to data from the European Automobile Manufacturers Association, sales of battery-powered cars were down nearly 44% in August compared to the same period a year ago, while their share of the market dropped to 14.4%, compared to 21% in 2023.

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The decline has followed the removal or reduction of incentives for electric car buyers in a number of European markets, including France and Germany.

On Friday, EU nations are due to vote on plans to impose steep tariffs on imports of electric vehicles from China.

The measures are designed to protect local producers from unfair competition. The European Commission claims Chinese manufacturers benefit from illegal subsidies from the Chinese government – and believes tariffs will create a level playing field.

But the plan is controversial, and has received a mixed reception from manufacturers.

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Money

FCA and BoE open applications for Digital Securities Sandbox

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Victims to stage protest outside FCA’s headquarters

The Financial Conduct Authority and the Bank of England have opened applications for their Digital Securities Sandbox (DSS).

In a statement released today (30 September), the FCA and the Bank urged firms that are innovating in financial market infrastructure to apply.

They said the DSS will “reshape” how they regulate by allowing firms to test legislative changes in real-world scenarios before the changes are implemented.

DSS gives firms the opportunity to explore new technologies in traditional financial markets.

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The new tech includes distributed ledger technology (DLT), a system for storing and managing information distributed across participants in a network.

It has the potential to improve efficiency and reduce costs in wholesale markets, benefitting industry and investors.

“We believe the DSS could also lead to a quicker, more effective and collaborative way of delivering regulatory change,” the statement said.

“The DSS supports innovation, helps protect financial stability and strengthens the UK’s leading position as a global and vibrant financial centre, built on globally respected high standards.”

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The authorities said there is a range of support available to firms to help them through the application process.

Firms can arrange pre-application meetings to better understand the DSS requirements.

The DSS is open to legally established firms of all sizes and at all stages of development.

The firms could be an existing financial institution that is already authorised or recognised under current regulation or a new entrant to the market.

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Find out more about the support available here.

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Frasers Group makes £83mn offer for Mulberry

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Mike Ashley’s Frasers Group has made a conditional offer for Mulberry, valuing the UK luxury brand at £83mn, after a “wholly unsatisfactory” response to an initial approach at the weekend.

Frasers, which owns about 37 per cent of Mulberry’s shares, said it had been taken by surprise when Mulberry proposed on Friday to raise almost £11mn from existing shareholders, including its largest investor — the Singapore-based Ong family that holds a 56 per cent stake.

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Frasers said it had not been aware of the plan, which was designed to prop up the luxury group’s balance sheet, until “immediately prior to its announcement”, and would have been willing to fund it on potentially better terms.

Frasers has offered 130p per share, a premium of 11 per cent to the closing price on Friday, and said it was “the best steward to return Mulberry to profitability”. The board provided a “holding response” to its conditional offer on Sunday, a move that Frasers considered inadequate. Mulberry shares rose 11 per cent on Monday.

Mulberry said on Friday that it needed to raise cash to give it financial flexibility, after falling to an annual pre-tax loss of £34mn, from a £13mn profit the previous year, on a 4 per cent drop in revenue to £153mn.

Frasers said that as an existing shareholder it would “not accept another Debenhams situation where a perfectly viable business is run into administration” after Mulberry noted a “material uncertainty related to going concern” in its annual report.

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Debenhams went into administration in 2020, having rejected a last-ditch rescue plan by Frasers — then called Sports Direct — which was a shareholder as part of an acrimonious battle with Debenhams’ board for control of the business.

Mulberry declined to comment on Monday. Frasers has until October 28 to either make a formal offer or walk away.

In July Mulberry appointed Andrea Baldo, the ex-boss of Ganni, as its new chief executive, replacing Thierry Andretta, who left with immediate effect, after the company became the latest luxury brand to warn of a slowdown in spending among affluent shoppers.

In 2020, Frasers, the retail conglomerate controlled by sportswear tycoon Ashley, bought a stake in Mulberry, which is a significant supplier to House of Fraser, the department store group also owned by Frasers following its collapse in 2018.

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Ashley’s group also has a stake in Hugo Boss and owns upmarket department store chain Flannels.

Clive Black, head of consumer research at Shore Capital, said: “No doubt there will be much emotion and potential shenanigans around this illiquid stock that has had to face into well-versed UK luxury market headwinds in recent times.

“Quite whether the two large and dominating shareholders can come to an agreement will be at the heart of the next steps.”

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Major mobile providers promise not to hike bill prices for some customers ahead of proposed mega merger

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Major mobile providers promise not to hike bill prices for some customers ahead of proposed mega merger

TWO major mobile phone providers have promised not to push up monthly bills for millions of customers ahead of their proposed merger.

Three and Vodafone have said that they will maintain certain social tariffs at £10 or less for two years from the date that their merger is complete.

Three and Vodafone announced their £15 billion merger last year

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Three and Vodafone announced their £15 billion merger last yearCredit: Alamy

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These tariffs include some customers on the SMARTY name and social tariffs on both the SMARTY and VOXI For Now brands.

SMARTY is currently owned by Three, while VOXI is a Vodafone brand.

Both companies have not confirmed whether the price of their main tariffs will change as a result of the merger.

Social tariffs are cheaper broadband and phone packages for people who claim Universal Credit, Pension Credit and some other benefits.

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They are provided in the same way as normal packages, just at a lower price.

The companies will also keep measures to protect customers who are registered as vulnerable.

Three and Vodafone announced their £15billion union last year, which will bring 27million customers together under one network.

If the deal goes ahead, it would create the largest mobile network in the UK.

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But last week the competition watchdog issued a warning that the deal could have a negative impact on customers.

The Competition and Markets Authority (CMA) flagged a number of concerns about the merger, which included fears that it could push up prices for customers.

It also launched an in-depth investigation into the merger in April over fears that it could “result in a substantial lessening of competition”.

This could mean that there are fewer providers to choose from, forcing customers to settle for more expensive deals than the ones they had previously.

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The CMA also said that it had “concerns that higher bills or reduced services would negatively affect those customers least able to afford mobile services as well”.

Three and Vodafone have said the deal would help to improve network quality and provide faster 5G.

The latest promise not to hike bills has been put forward to ease the CMA’s concerns.

Both firms have said that they will continue to work with the regulator and the merger can only go ahead with its final approval.

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What social tariffs are currently on offer?

The SMARTY social tariff is a low-cost unlimited plan and is available for new and existing customers who are on certain benefits.

It is offered as a one month rolling plan, which can be cancelled at any time.

Once accepted, you can keep the plan for as long as you are eligible.

For £12 customers can make unlimited UK calls and texts, 5G at no extra cost and EU Roaming up to 12GB.

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How to save on your mobile phone bill

NOT happy with your current mobile phone deal?

If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.

But don’t just switch contracts because the price is cheaper than what you’re currently paying.

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Take a look at how many minutes and texts, as well as how much data you’re using, to find out which deal is best for you.

For example, if you’re a heavy internet user it’s worth finding a deal that accommodates this so you don’t end up spending extra on bundles or add-ons each month.

Also note that if you’re still in your contract period, you might be charged an exit fee.

Ready to look elsewhere? Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.

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It’s worth using comparison websites, such as MoneySupermarket and uSwitch.com, to compare tariffs and phone prices.

Billmonitor also matches buyers to the best pay-monthly deal based on their previous three months of bills.

It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.

There’s also MobilePhoneChecker, which has a bill monitoring feature that recommends a tariff based on your monthly usage.

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If you’re happy with your provider then it might be worth using your research to haggle a better deal.

There are fast eligibility checks and no credit checks.

To apply contact SMARTY and complete its short form.

These details will then be shared with the Department for Work and Pensions to confirm that you are in receipt of the eligible benefits.

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The VOXI For Now is another tariff available to those receiving financial support.

If you are receiving government benefits then you can get unlimited data, calls and texts for £10 a month.

If you are eligible you will get the deal for six months.

After this point you will be switched to the standard £10 a month plan but you will still have access to unlimited social media, calls and texts.

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There is no contract so you can change, pause or cancel the deal at any time.

To be eligible you must be receiving a benefit such as Jobseeker’s allowance, Universal Credit, Employment and Support Allowance, Disability allowance or Personal independence payment.

VOXI will run a quick eligibility check to make sure that you qualify before you are granted the deal.

The company has partnered with Moneyhub to run the security checks and confirm that you do receive government benefits.

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The process is simple and Moneyhub will check your bank account for government benefits and will then advise VOXI if you qualify for the tariff.

Other providers such as EE and Vodafone also offer social tariffs.

You can find a full list of providers and rules on the Ofcom website.

Help if you are struggling to pay your bill

If you are struggling to pay your mobile phone bill or you owe your provider money then there are things you can do.

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You may be able to switch providers or move to a different contract to get a cheaper deal.

Or if you provider has told you they’re increasing the price of your contract then you may be able to cancel.

Some providers will give you 30 days to cancel your contract without a fee if the price is going up.

Always tell your provider if you are struggling to pay so they can tell you about any support they have on offer.

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Most providers will charge you a fee to leave your contract before it ends.

However, some providers will let you leave early without paying a fee if you are struggling to keep up with your payments.

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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US opposition to Nippon Steel deal ‘very unsettling’, Japan PM hopeful says

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US warned Nippon Steel its U.S. Steel bid risks harming American industry

Business & FinanceEconomy

Reuters exclusively reported that one of the frontrunners to become Japan’s next premier said that any U.S. move to block Japan’s Nippon Steel from buying U.S. Steel on national security grounds would be “very unsettling.” Shigeru Ishiba, a former defence minister, told Reuters in an interview that the move could dent trust between the allies. The White House is close to announcing that President Joe Biden will block the $15 billion deal, Reuters reported this week. 

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Topics of Interest: Business & FinanceEconomy

Type: Reuters Best

Sectors: Business & Finance

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Regions: Asia

Countries: Japan

Win Types: Exclusivity

Story Types: Exclusive / Scoop

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Media Types: Text

Customer Impact: Significant National Story

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