Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Regulator Ofwat has signalled that it will allow water companies to lift bills further than initially proposed after the industry argued that it needed more money to invest in Britain’s ailing infrastructure.
Ofwat said on Tuesday the industry had made a fresh push to increase prices beyond the regulator’s draft decision in July to fund an additional £7bn of investment, which would take the total to £108bn.
Advertisement
“This increased expenditure request will, if approved, increase customer bills compared to our draft determinations,” it said.
Water companies are currently negotiating with Ofwat the extent to which they can raise real terms bills over the five years until 2030, with a final decision expected in December or January.
In July the water regulator for England and Wales angered the sector by rejecting its demand for an average 29 per cent increase in bills in favour of a 19 per cent rise.
Now companies have come back with a request to raise them by 40 per cent, which would take the average household bill to at least £615 a year in five years’ time compared with £439 now — even without inflation.
Advertisement
Water companies argue that the need for bill increases reflects a rise in the scope of their proposed investment schemes, and increased regulatory costs. They are also facing higher labour, chemical, energy and financing charges.
“Ofwat usually improves its offer between the draft and its final decision and in this case its initial proposals would not have been high enough to finance the need for investment,” said Dominic Nash, analyst at Barclays.
Southern Water has proposed the largest 84 per cent increase in bills after initially proposing a 73 per cent rise. Ofwat had proposed a 44 per cent increase for Southern during its draft determination in July.
Southern said: “We are taking this approach in response to what our communities have told us they want us to deliver.”
Advertisement
However, there is a wide range of requests from companies with Northumbrian Water seeking the lowest rise at just 21 per cent.
Thames Water has gone back to Ofwat to ask for a 53 per cent rise in real terms after the water regulator rejected its proposal for a more modest 44 per cent jump earlier this year.
The troubled water giant, which is teetering on the brink of collapse, had been told in July by the regulator that it would be limited to a 23 per cent increase in household bills.
The company provides water and sewerage services to about 16mn households in London.
Advertisement
Thames Water needs the bill increases to raise new equity after existing investors declared that the business was “uninvestable” under Ofwat’s current regime.
The company is scrambling to find new equity and risks running out of cash by Christmas. It has already warned that its ageing infrastructure is a risk to public safety.
Thames Water and Northumbrian declined to comment.
Water UK, which represents the industry, said: “Since first submitting their investment plans over a year ago to Ofwat, water companies have new legal additional requirements to fulfil, along with inflation costs to bear.”
Larissa Dos Santos Lima’s Transformative Plastic Surgery Journey: Empowerment or Excess?
Larissa Dos Santos Lima, known for her captivating presence on 90 Day Fiancé, has made headlines for her extensive plastic surgery journey, investing over $72,000 in various procedures to transform her look. As a social media personality constantly in the spotlight, Larissa takes pride in sharing her experiences with fans, showcasing her quest for beauty and self-improvement.
In a revealing interview with Life & Style in September 2020, Larissa opened up about her motivations for these transformations. “I have family in Brazil and a younger boyfriend who is 28,” she explained. “Being in the public eye can be challenging. While I do face criticism, many of my supporters are genuinely curious about my procedures and fashion choices. I want to feel good about myself, support my family back home, and build a life for myself here.”
Courtesy of Larissa Dos Santos Lima/Instagram
The Belly Button Mishap
However, her journey hasn’t been without its challenges. Larissa faced a distressing setback when she revealed that her belly button was “removed” during what she described as a “botched procedure.” In an emotional update, she disclosed that she underwent “three very painful revisions to create a belly button,” but unfortunately, it was never successfully fixed.
Advertisement
During a candid Instagram Story Q&A in September 2022, Larissa shared her thoughts on her body image post-surgery. Despite the hardships, she expressed that she is “pretty happy” with her current appearance and has decided to halt further cosmetic procedures. When a fan asked about the possibility of future surgeries, Larissa thoughtfully replied, “Sometimes I think about how my waist looks when I pose, but honestly, it’s a bit crazy to consider going under the knife just to have a smaller waist. At what point do you stop? I want to enjoy my life now … without worrying about my appearance.”
Larissa’s journey serves as a reminder that beauty is subjective and that the pursuit of self-love and acceptance often comes with its own unique challenges. As she moves forward, fans are eager to see how she continues to embrace her evolving identity in the public eye.
Courtesy of Larissa Dos Santos Lima/Instagram
The Hidden Dangers of Plastic Surgery Addiction: What You Need to Know
Plastic surgery can be a powerful tool for enhancing one’s appearance and boosting self-confidence, but it’s important to recognize the potential risks involved—both medical and psychological. The pursuit of beauty can sometimes lead to unhealthy obsessions, fueled by societal pressures and unrealistic beauty standards that the industry perpetuates.
Advertisement
When celebrities like the Kardashians share their experiences with procedures like lip fillers or breast augmentations, it can spark a trend among fans and followers. This phenomenon helps explain the rising popularity of procedures such as Brazilian butt lifts (BBLs) and buccal fat removal. The desire to alter one’s body often stems from an aspiration to mirror the looks of beloved movie stars. However, a study published in the 2024 Journal of Media Psychology emphasizes the importance of managing expectations. It highlights the vast difference between the polished images we see on screen and the everyday realities of life.
Courtesy of Larissa Dos Santos Lima/Instagram
While cosmetic procedures can produce satisfying results, it’s essential to remember that they aren’t miraculous solutions. Celebrities benefit from a team of professionals, including makeup artists, nutritionists, publicists, and stylists, all contributing to the flawless images we admire. Unfortunately, these depictions can distort our perception of beauty, leading many to believe they need drastic changes to feel worthy or attractive.
The journey can become even more complicated when individuals find themselves unhappy with their results, often leading to additional surgeries in a quest for their ideal appearance. The American Society of Plastic Surgeons reported a consistent rise in cosmetic procedures in 2022, raising concerns about the potential for addiction to aesthetic changes. This underscores the necessity for thorough psychological assessments by medical professionals before agreeing to multiple or repeated surgeries.
Advertisement
Courtesy of Larissa Dos Santos Lima/Instagram
Empower Yourself with Thoughtful Choices
Cosmetic surgery can be transformative when approached with care and mindfulness. To minimize the psychological risks associated with surgery, here are some practical tips to consider:
Set Realistic Expectations: Aim for achievable results rather than striving for perfection. Recognize that every individual’s experience is unique, and it’s unrealistic to expect drastic changes.
Encourage Open Dialogue: Keep communication lines open with your plastic surgeon and your loved ones. Discuss your motivations, concerns, and emotional well-being throughout the process.
Seek Professional Support: If you find yourself struggling with your emotions post-surgery, don’t hesitate to reach out for help from mental health professionals.
Cultivate Media Awareness: Develop critical thinking skills when engaging with media portrayals of beauty and surgical outcomes. Understand that the notion of a “perfect look” is often a fantasy.
The relationship between plastic surgery and mental health is intricate and varies from person to person. Plastic surgeons play a vital role that extends beyond the operating room. By being aware of potential challenges and promoting informed decision-making, cosmetic surgery can become a source of empowerment rather than insecurity or disappointment. Remember, true beauty comes from within, and making thoughtful choices can help you feel confident in your skin, no matter what.
Conclusion
Navigating the world of plastic surgery requires careful consideration and self-reflection. It’s vital to prioritize your mental health while exploring ways to enhance your appearance. By fostering a healthy relationship with beauty standards and seeking the right support, you can embark on a journey that truly celebrates you.
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
HSBC’s new chief Georges Elhedery is engaging in a reshuffle. It could be the purposeful reshaping of a supertanker towards a promising new future — or it could be merely some drag-reducing furniture rearrangement. Either way it should raise questions about the bank’s broader direction of travel.
It is not hard to see why Elhedery may be looking to declutter his vessel. The bank, listed in both Hong Kong and London, is in a sweet spot: expenses consume just under 50 per cent of its income, and it generated a 15 per cent return on tangible equity in 2023, where 10 per cent is the least shareholders tend to demand. Yet its seas can only get choppier.
Advertisement
Widely expected rate cuts are one menace. For every 100 basis points that interest rates decline, HSBC’s illustrative sensitivity analysis yields a $2.6bn cut from full-year net interest income.
Indeed, a Barclays analysis suggests that, should 2026 rates fall to 3 per cent, the bank will need to cut $1.4bn of costs to keep its returns on equity above 13 per cent. That’s a glum prospect for HSBC’s 214,000 employees. Gold-standard Singaporean competitor DBS is 50 per cent more profitable per employee, Barclays reckons.
Elhedery hasn’t put a number on what level of costs his rejig will save. HSBC’s unmoved share price on Tuesday suggests investors think not much. Yet there’s virtue in simplicity. The bank is unshackling its two home markets, Hong Kong and the UK, from any regional-and-product matrix and turning them into standalone full-service banks. That may make them sprightlier. Crunching together its investment banking and commercial lending businesses should help reduce some overlap.
What results, though, is still somewhat ungainly. The bank is headquartered in the UK despite making nearly three-fifths of its profits in Asia. Major shareholder Ping An, the Chinese insurer, has unsuccessfully pushed for the separation of its Asian business from the rest of its operations.
Putting UK and Hong Kong businesses in their own divisions, meanwhile, shows their lack of synergies with each other and the rest of the organisation. And a further split in the way the businesses are managed between ‘Eastern’ and ‘Western’ looks odd for a global bank. HSBC’s valuation reflects its uncomfortable straddle. Its shares trade at an undemanding valuation of 1.1 times tangible book — a premium compared to the beleaguered European banking sector, but a big discount to the largest US banks and DBS.
HSBC may insist that it is simply aligning its workforce with its strategy. For a new chief executive with something to prove, it’s helpful to make an entrance. But having changed what HSBC looks like, his next challenge is to be clearer about where it’s going.
NS&I has announced that it will slash Premium Bonds prizes from DecemberCredit: Alamy
The Treasury-backed savings provider has revealed that prize fund rates will be reduced to 4.15% from 4.40% currently – weakening the chances of you winning big.
NS&I, which is backed by the Treasury, has a duty to balance the needs of savers, taxpayers and the wider financial market.
Andrew Westhead, NS&I retail director, said: “As the savings market continues to change, we need to lower the rates on some of our products to help us meet our net financing target, while also ensuring we continue to balance the interests of our savers, taxpayers and the broader financial services sector.
“Even with the changes, we’re still expecting to pay out over 5.7million prizes worth over £435million in the December Premium Bonds draw.”
Advertisement
Not only that but for the first time since November 2020, NS&I will cut interest rates for Direct Saver and Income Bonds.
Unclaimed Lottery Riches: Are You A Winner?
From November 20, the variable interest rate for Direct Saver and Income Bonds will change to 3.75% AER (annual equivalent rate), from 4% at the moment.
A new two-year issue of British Savings Bonds has also gone on sale offering 4.10% AER for the Guaranteed Growth Bond option and 4.09% AER for the Guaranteed Income option, both down from previously offered rates of 4.25%.
What do the experts say?
And finance experts at AJ Bell revealed that most Premium Bond holders will never win a prize.
Advertisement
Recent figures from an FOI obtained by AJ Bell showing two-thirds of those holding the bonds have never won.
Laura Suter, director of personal finance at AJ Bell, said: “Premium Bonds will see their ‘effective prize rate’ drop to 4.15% and their odds reduced to 22,000 to 1 from the December draw, something which may prompt some of the around 22.5million bond holders to reconsider their position.
“The prize rate only accounts for the average rate paid out on prizes, but in reality there is no guarantee of receiving any return as many bond holders will never win a prize, particularly those with smaller amounts of cash saved in the bonds.”
When you factor in that many people will have been holding Premium Bonds for decades, perhaps receiving them as gifts when they were young, that means they may have missed out on significant returns in a higher paying cash account or by investing.”
Advertisement
She also said the change is a sign that the savings market is preparing for more interest rate cuts from the Bank of England.
She said: “Despite the interest rate cuts, these accounts are still likely to continue to be very popular as they are backed by NS&I and many savers have huge brand loyalty to the organisation.
“But with another interest rate cut now expected at the next Bank of England monetary policy meeting in November, as well as potentially a further cut in December, savers should remain alert to the changes in the savings market and explore the best rates where they can.”
Sarah Coles, head of personal finance, Hargreaves Lansdown, agree that the news reflects the market and that the Premium Bond prize rate has “finally been hit with the business end of the savings rate scythe”.
Advertisement
She explained: “This was always going to happen eventually. NS&I has a duty not to overpay for the money it raises for the Treasury, which means the prize rate needs to be middle of the pack within the easy access savings market.
“After the Bank of England rate cut, these have been heading downhill, albeit impressively slowly. Moneyfacts figures show the average easy access account is currently offering 3.04% – compared to 3.13% two months ago, and Premium Bonds have finally succumbed.”
Ms Coles did point out that the prize rate doesn’t reflect what you’ll make in these bonds, and because of the “lumpy” way that prizes are awarded, the average person with £1,000 in bonds will still win nothing in the average month.
“The lengthening of the odds of a win should be food for thought for anyone who is holding money in these accounts and losing money after inflation,” she added.
Advertisement
Referring to the rate reductions on the new launch of British Savings Bonds, Ms Coles added: “You can do far better elsewhere, with the best on the market offering 4.6%.
“And while the Treasury guarantee of your savings and the attraction of the brand will go a long way, for plenty of people it’s not going to make up enough ground. These bonds look unlikely to shake or stir anyone.”
Where to find the best savings rates
Many savings accounts offer miserly rates meaning that money is generating little or no return.
Advertisement
However, there are ways to get your cash working hard. Sun Savers Editor Lana Clements explains how to make sure you money is getting the best interest rate.
Easy access savings accounts offer flexibility for customers, meaning they can dip in and out of cash when needed. However, the caveat is that rates can change at any time.
If you’re keeping your money in an easy access account, you’ll need to keep checking whether it’s the best paying account for your circumstances and move if not.
Check in at least once a month to see what is happening in the market.
Advertisement
Check what is offered by your bank – sometimes the best rates are for customers only.
But do search the wider market as often top savings accounts are offered by lesser known providers.
Comparison sites are a good place to check for the top rates. Try Moneyfactscompare.co.uk or Moneysupermarket.
You can search by different account type. You’ll usually get a better interest rate if you can lock your money away for a fixed amount of time, but it’s always a good idea to keep some money in an easy access account in case of emergencies.
Advertisement
Don’t overlook regular savings accounts often pay some of the best rates, but you’ll need to commit to monthly payments. This can be a great way to get into a savings habit while earning top rates at the same time.
What are Premium Bonds?
Premium Bonds are a type of savings account that don’t offer interest payments like conventional accounts.
Instead, you’re given the chance to win a prize worth up to a whopping £1million every month.
Premium Bonds can be bought from the government-backed National Savings and Investments (NS&I) which also offers a variety of other savings products too.
Advertisement
Because Premium Bonds are government-backed, your money is safe and there’s no risk of losing your cash.
You can put money in and take it out whenever you want but need to put in a minimum of £25 to get started and you can invest up to £50,000.
Each £1 you put in Premium Bonds is an entry into the monthly prize draw.
What are the Premium Bond prizes?
The draw is held each month and the winning number is picked by a computer called ERNIE (which stands for electronic random indicator equipment).
Advertisement
There are three kinds of prizes:
Higher value prizes of £5,000, £10,000, £25,000, £50,000, £100,000 and £1million
Medium value prizes of £500 and £1,000
Lower value prizes of £25, £50 and £100
How likely am I to be a winner?
The chance of winning a prize with an individual bond right now is 21,000 to one.
Each bond has an equal chance of winning and the more you buy, the more your chances improve.
You can check your odds depending on how many bonds you have and how long you’ll keep them using MoneySavingExpert.com’s helpful calculator.
This makes it easier to see if Premium Bonds are right for you, or if you’d be better off with another savings account.
Advertisement
It’s also worth noting that Premium Bond winnings are tax-free.
Anyone who has used up their annual ISA limit or personal savings allowance could benefit by saving into Premium Bonds.
How do I check if I have won?
You can use the NS&I Premium Bond prize checker online to see if your numbers have come up.
You’ll need to know the numbers of your Premium Bonds which you can find on your Bond record or online account.
Advertisement
If you’ve lost track of your numbers you can reach out to NS&I and ask for them.
There’s also an official app for iPhones and for Androids for checking prizes too, and even an App for Amazon Echo which means you can just ask Alexa.
For this, you will need to use your NS&I number rather than each Premium Bond number.
It’s 11 digits long and should be on any communication you’ve had with NS&I.
Advertisement
You don’t always need to check your numbers as you can get prizes under £5,000 paid straight into your bank account, or automatically buy more Premium Bonds.
For higher value prizes worth more than £5,000 NS&I will contact you by post and if you scoop the £1million jackpot, someone will pay you a visit to let you know!
Note that NS&I will no longer send out prize cheques in the post.
Before you sign up, it’s important to check how it compares to the rest of the market to make sure you get a good deal.
Advertisement
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
DUBAI has revealed its major tourism plans with new oasis holiday destination.
The Saih Al Salam Scenic Route is part of the Dubai 2040 Urban Master Plan, which is expanding its cities.
7
Dubai has revealed plans for a new oasis holiday destination
7
Advertisement
Saih Al Salam Scenic Route is part of the Dubai 2040 Urban Master PlanCredit: Dubai Media Office
7
There will be five zones along the routeCredit: Dubai 2040 Urban Master Plan
The scenic route will have five tourist “stations” with an 100mile cycling route.
The Main Hub Station near Al Qudra Lakes will have a traditional market, selling local wars, as well as an open-air cinema.
Flamingo Lake will be home to The Wildlife Station, with activites including hot air balloon rides and luxury camps.
Advertisement
Walking trails will link the area to other tourist stations.
There will also be the Adventure Station, located near Expo 2020 Lake.
Here will be an adventure park, fitness tails and cheaper camping spots, along with restaurants.
The Desert Adventure Station will have adventure sports such as dune climbing, sandboarding and desert safari tours.
Advertisement
While The Cultural Experience Station will have traditional activities such as locally-cooked meals and camel rides.
Across the lakes will be water activities too, such as kayaking tours.
It hopes to open the first phases by 2028.
Inside the trendy Dubai hotel with rooftop pool, cinema and and five restaurants
The Crown Prince of Dubai Sheikh Hamdan bin Mohammed bin Rashid Al Maktou said it wants to attract tourists from around the world.
Advertisement
He said: “We have approved the development of several facilities, along with increasing activities, events, and services within the Saih Al Salam Scenic Route project to boost tourist numbers from around half a million annually currently to over three million visitors by 2040.
“This will enhance the area’s position as one of Dubai’s main tourist destinations while expanding investment opportunities for locals and preserving the region’s unique nature and identity.”
It’s not the only change coming to Dubai.
7
Advertisement
An open-air cinema will show the latest filmsCredit: Dubai Media Office
7
Markets, restaurants and camping will bar part of the tourist attractionCredit: Dubai Media Office
7
It hopes to ‘boost tourist numbers from around half a million annually currently to over three million visitors by 2040’Credit: Dubai Media Office
Dubai’s Jebel Ali Beach Dubai will become the longest public open beach, stretching 4 miles.
Split into three zones, there will be beach clubs, kids zones, cafes restaurants and public swimming pools.
Advertisement
Environmental conservation zones will include turtle rehabilitation programs, along with educational activities.
If you fancy a holiday to Dubai, The Sun’s Hayley Richardson recently visited.
She said: “You can’t go to Dubai and not visit the tallest building in the world — the Burj Khalifa, twice the height of the Empire State Building and nearly three times that of the Eiffel Tower.
“Go to Sky Lounge on Level 154, for amazing views and free coffee from 585m above ground.
Advertisement
“Otherwise a cheaper way of seeing the city from on high is at the Dubai Frame which costs about £10 to visit.”
You must be logged in to post a comment Login