Where are consumers spending their money

Online electricals retailer AO World has seen shares plunge amid worries over its financial strength after it emerged a credit insurer cut cover for the firm’s suppliers. The group saw shares fall by more than 18% at one stage in morning trading on Monday following a Sunday Times report revealing AO was hit by a cut in credit cover by Atradius. AO confirmed a credit insurer had slashed its cover in May, “reflecting post-Covid sales levels”, but insisted trading remained in line with its expectations and assured over its financial strength. It said the cover was reduced “from the heightened levels that had been in place and required through the period of the pandemic”. “To date this rebased cover has had no effect on AO’s liquidity position which remains in-line with the board’s expectations for full-year 2022-23,” it said. Recommended Over £130m handed to housing providers named and shamed by regulator Credit insurance protects suppliers … [Read more...] about AO World shares dive on cash crunch fears

Inflation is delivering a serious blow to real incomes and living standards. But is everyone suffering in this process? Or are there some winners who are benefiting at the expense of the losers? Inflation, pure and simple, is a process through which all money values that are free to move rise in lockstep. An inflation of this sort can have practically no real effects, beneficial or harmful. But the trouble is that inflation of this sort exists only in the textbooks. In particular, not all prices are free to rise. The consequence is often a substantial shift in relative prices and incomes. And the battle to preserve positions often leads to wrangling and disputes that waste resources and reduce production, thereby making the economic situation worse. This is exactly what is happening now with the current wave of industrial disputes. Moreover, the current bout of inflation originates partly from the sharp increases in external costs, principally energy . These increases reduce … [Read more...] about Public sector pensioners will be the winners from this inflation disaster

T he American owners of Boots may revive plans for stock market float next year after scrapping the sale of Britain’s biggest chemist to a Wall Street buyout fund and Indian billionaire Mukesh Ambani. Walgreens, which merged with Boots in 2014 in a deal worth £9bn, said none of the offers for the “adequately reflects the high potential value of Boots and No7 Beauty Company”. The Illinois-headquartered company said bidders had struggled to arrange bank loans to buy Boots after financial markets “suffered unexpected and dramatic change”. Private equity fund Apollo and Mr Ambani had been in pole position to acquire Boots after Walgreens chairman Stefano Pessina put the business up for sale in January. But a £5bn approach — considerably lower than the £7bn Mr Pessina is said to have wanted — fell through. Ornella Barra, Boots operating chief, wrote to the company’s 56,000 staff saying she was “happy to confirm that it has been decided that Boots and No7 Beauty Company will … [Read more...] about Boots stock market float back on the table as £5bn sale collapses

Fossil fuel power plants are set to be temporarily freed from planned checks on their emissions in a scramble to prevent blackouts as Britain turns back to coal . Coal and gas stations providing back-up supply in 2023 will not have to get reports on their emissions signed off by an independent expert under changes being proposed by Whitehall officials. There is growing concern over energy security amid fears Russia will shut off gas supplies to Europe in retaliation for sanctions imposed in response to its war on Ukraine. The gradual retirement of the UK’s nuclear fleet in coming years as well as problems with France’s nuclear stations are adding to the pressure in energy markets. Coal-fired plants have already been asked to stay open this winter , while gas quality rules could also be relaxed to allow more from the North Sea into Britain’s pipes. Under rules from 2019, fossil fuel facilities bidding to take part in National Grid ESO’s market for back-up power supply … [Read more...] about Net zero red tape to be ditched as Britain returns to coal

The rent has come due for America's small businesses and at a very inopportune time. Landlords were lenient about rent payments during the first two years of the pandemic. Now, many are asking for back rent, and some are raising the current rent as well. Meanwhile, most of the government aid programs that helped small businesses get through the pandemic have ended while inflation has sharply pushed up the cost of supplies, shipping, and labor. Martin Garcia, owner of gift and décor store Gramercy Gift Gallery in San Antonio, Texas, survived the first part of the pandemic in part by paying his landlord whatever rent he could each month. Then in August 2021, after the federal moratorium on evictions ended, his landlord asked for the full amount of back rent that he owed. "I needed $10,000 in 15 days," Garcia said. He took whatever loans he could find – often at high interest rates – and barely met the deadline. A strong holiday season helped him pay back his loans, but so far … [Read more...] about Small businesses are hit with back rent demands amid high inflation

New research claims a third of New Zealanders have shopped online boozed up, buying anything from pets to airfares If you ask the people around you, everyone seems to have a confessional story about when they’ve succumbed to impulsive online shopping after one too many drinks . One person I asked admitted to buying a border collie puppy after some beer-fuelled TradeMe browsing with her boyfriend at the time. Someone else bought a treehouse ladder to hang out her window so she could get in and out of her room without having to make small talk with her flatmates. READ MORE: Top tips for teaching children and young people about money Why makeup shares may be about to boom Why Millennials are New Zealand's top second-hand shoppers Drunk shopping is big business Another spent an eye-watering $700 on an oversized wearable blanket - known as an Oodie ; someone else bought tap shoes with the best intention of learning how to dance with them. It’s clear these … [Read more...] about Kiwis splash out online under the influence

In years gone by, an invitation to a summer wedding in Italy would have meant Francesco Mellino, 30, and his wife booked flights to get to the destination nuptials. But prices are now so high that the couple have opted to travel for a day and a half by train to get there instead. “Prices were 60pc to 80pc more than we were expecting,” Mr Mellino said of flights. “They were the kind of prices you would expect to see for business class.” The cost of the trip to Sicily would have been around £400, far more than the £250 each they had expected to pay. Instead, they have paid £400 each to make the journey by train. “The cost is comparable, but instead of being overcharged to travel on a budget airline, we have our own apartment on a night train and a few legs in first class,” Mr Mellino said. He and his wife have been caught up in a summer price spike that is causing misery for many would-be holidaymakers this summer. Airlines have ramped up prices as travel demand picks up to … [Read more...] about Summer getaways in jeopardy as flight prices surge by 150pc

Published 1 day ago Share close Share page Copy link About sharing Some families in Kenya are eating just once a day, or not at all, because of rising food prices, writes the BBC's Catherine Byaruhanga in Nairobi. Early in the morning, I find Florence Kambua hunched over, digging through the dump site outside her front door to collect plastic, glass, clothes - anything she can sell in Kenya's capital. The 40-year-old is dressed in a black sweater and knee-high plastic boots. Her job is not for the faint-hearted. It is hazardous too. Rotting food and filled nappies squelch under her feet in the Mukuru Kwa Njenga slum. "Sometimes you end up with diarrhoea, sometimes you get a chest infection. I have persevered, because I don't have an alternative," Ms Kambua tells me. The mother of six has fallen on hard times. She first moved to Nairobi, East Africa's biggest metropolis, 19 years ago … [Read more...] about Kenya’s cost-of-living crisis: ‘I can’t afford rice for my children’