Business
Eurozone inflation: Prices edge up to 2.1% in August, ECB likely to hold rates steady – The Times of India

Inflation in the eurozone rose slightly to 2.1% in August from 2% in July, official data showed on Tuesday, fuelling expectations that the European Central Bank (ECB) will keep interest rates unchanged at its policy meeting next week.The EU’s statistics agency Eurostat said the uptick was mainly driven by a smaller fall in energy prices. While energy costs continued to decline, they fell by 1.9% compared with 2.5% in July, AFP reported.Analysts polled by Bloomberg had expected inflation to remain at 2%, in line with the ECB’s target. The increase now reinforces expectations that policymakers will leave rates unchanged at their September 11 meeting. The ECB had already paused rate cuts in July, ending a streak of consecutive reductions that began in September 2024.Core inflation — which excludes volatile categories like energy, food, alcohol and tobacco — remained steady at 2.3% in August.Meanwhile, food, alcohol and tobacco prices eased to 3.2% from 3.3% in July, while services inflation also softened marginally to 3.1% from 3.2%.
Business
High-caffeine energy drinks to be banned for under-16s in England – Streeting

High-caffeine energy drinks will be banned for under-16s in England to prevent harm to children’s health, the Government has said.
The plan will make it illegal to sell energy drinks containing more than 150mg of caffeine per litre to anyone under 16 across all retailers, including online, in shops, restaurants, cafes and vending machines.
Lower-caffeine soft drinks – such as Coca‑Cola, Coca‑Cola Zero, Diet Coke and Pepsi – are not affected, and neither are tea and coffee.
However, high-caffeine energy drinks such as Red Bull, Monster, Relentless and Prime would all breach the limit.
Major supermarkets including Tesco, Sainsbury’s, Waitrose, Morrisons and Asda have already stopped sales of the drinks to youngsters, but the Department of Health said research suggests some smaller convenience stores are still selling them to children.
According to ministers, a ban could prevent obesity in up to 40,000 children and will help prevent issues such as disrupted sleep, increased anxiety and lack of concentration, as well as poorer school results.
Around 100,000 children are thought to consume at least one high-caffeine energy drink every day.
Health and Social Care Secretary Wes Streeting said: “How can we expect children to do well at school if they have the equivalent of a double espresso in their system on a daily basis?
“Energy drinks might seem harmless, but the sleep, concentration and wellbeing of today’s kids are all being impacted while high sugar versions damage their teeth and contribute to obesity.
“As part of our plan for change and shift from treatment to prevention, we’re acting on the concerns of parents and teachers and tackling the root causes of poor health and educational attainment head on.
“By preventing shops from selling these drinks to kids, we’re helping build the foundations for healthier and happier generations to come.”
A newly-launched consultation will now run for 12 weeks to gather evidence from experts in health and education as well as retailers, manufacturers, local enforcement leaders and the public.
Drinks containing more than 150mg of caffeine per litre must already carry warning labels stating they are not recommended for children.
Gavin Partington, director general of the British Soft Drinks Association, said firms do not market or promote the drinks to under-16s.
He added: “Our members have led the way in self-regulation through our long-standing energy drinks code of practice.
“Our members do not market or promote the sale of energy drinks to under-16s and label all high-caffeine beverages as ‘not recommended for children’, in line with and in the spirit of this code.
“As with all Government policy, it’s essential that any forthcoming regulation is based on a rigorous assessment of the evidence that’s available.”
According to the Department of Health, up to one in three children aged 13 to 16, and nearly a quarter of children aged 11 to 12, consume one or more high-caffeine energy drink every week.
Education Secretary Bridget Phillipson said: “This Government inherited a scourge of poor classroom behaviour that undermines the learning of too many children – partly driven by the harmful effects of caffeine-loaded drinks – and today’s announcement is another step forward in addressing that legacy.”
Professor Steve Turner, president of the Royal College of Paediatrics and Child Health, said: “Paediatricians are very clear that children or teenagers do not need energy drinks.
“Young people get their energy from sleep, a healthy balanced diet, regular exercise and meaningful connection with family and friends.
“There’s no evidence that caffeine or other stimulants in these products offer any nutritional or developmental benefit, in fact growing research points to serious risks for behaviour and mental health.
“Banning the sale of these products to under-16s is the next logical step in making the diet of our nation’s children more healthy.”
Carrera, from the youth-led group Bite Back, which campaigns for changes to the way unhealthy foods are made, marketed and sold, said: “Energy drinks have become the social currency of the playground – cheap, brightly packaged, and easier to buy than water.
“They’re aggressively marketed to us, especially online, despite serious health risks.
“We feel pressured to drink them, especially during exam season, when stress is high and healthier options are hard to find.
“This ban is a step in the right direction, but bold action on marketing and access must follow.”
Amelia Lake, professor of public health nutrition at Teesside University, said: “Our research has shown the significant mental and physical health consequences of children drinking energy drinks.
“We have reviewed evidence from around the world and have shown that these drinks have no place in the diets of children.”
Barbara Crowther, of the Children’s Food Campaign at Sustain, an alliance of food, farming and health organisations, said the drinks were “branded and marketed to appeal to young people through sports and influencers, and far too easily purchased by children in shops, cafes and vending machines”.
Professor Tracy Daszkiewicz, president of the Faculty of Public Health, said: “Mounting evidence shows us that high-caffeine energy drinks are damaging the health of children across the UK, particularly those from deprived communities who are already at higher risk of obesity and other health issues.
“We welcome this public health intervention to limit access to these drinks and help support the physical and mental wellbeing of our young people.”
James Lowman, chief executive of the Association of Convenience Stores, said: “The majority of convenience stores already have a voluntary age restriction in place on energy drinks, and will welcome the clarity of regulation on this issue.
“Our members have a long-standing track record of enforcing age restricted sales on different products, but it is essential that the Government effectively communicates the details of the ban to consumers to avoid the risk of confrontation in stores.”
Business
Political ad spending expected to hit new record, surpassing 2022 midterms by 20%

(L-R) Mikayla Newton and Katerra Jones, reporters with the Prince George’s County during a news broadcast on May 15, 2025 in Largo, MD.
Michael A. McCoy | The Washington Post | Getty Images
Spending on political advertisements is projected to hit a new record, with this midterm season expected to reach a total of $10.8 billion, according to advertising company AdImpact.
That number for the 2025-2026 midterm season makes it the most expensive midterm cycle in history, surpassing spending for 2021-2022, which clocked in at $8.9 billion, by more than 20%. And it’s inching close to AdImpact’s price tag for the 2024 presidential election cycle, which reached $11.2 billion.
“We anticipate record spending across all race types due to the highly competitive national environment, with congressional spending specifically set to reach new heights,” the report said.
The race to snag control of Congress this year remains close, as Republicans hope to hold onto their 53-47 majority in the Senate and their 219-212 majority in the House. Key races in battleground states could determine or flip those majorities.
This cycle’s boost is largely expected to come from the connected TV, or CTV, category, which covers any television that connects to streaming apps and services. That spending will surge to $2.5 billion, AdImpact said, growing by 2% and earning a spot as the fastest-growing media type.
Broadcast television is forecast to continue to hold the largest share of spending at 49%, and local cable and social media spending are expected to decline slightly, the report said. That comes even as legacy cable TV has been bleeding millions of subscribers each year as streaming takes over as the primary way the world watches television.
“With $2.5 billion projected, CTV is now a core marketing strategy for 2026 campaigns, offering advertisers the ability to maximize both efficiency and overall reach,” said John Link, AdImpact’s senior vice president of data.
The forms of media vary based on types of elections, though, with down-ballot campaigns more likely to invest in cable and radio than larger races, according to AdImpact.
The most spending is expected to be in California, followed by Michigan, Georgia and North Carolina, all of which have highly competitive races this cycle. Advertising on Senate races is projected to reach $2.8 billion, while spending for House races is expected to surpass $2 billion for the first time ever as Republicans aim to hold onto their majority.
The midterm season has also already seen a surge in early spending, AdImpact noted. Though the off-year spending typically only amounts to 10% to 15% of total spending, 2025 has already surpassed records, hitting roughly $900 million by Aug. 26. That’s 37% higher than the same point in 2023 and 58% higher than 2021.
This season’s surge comes amid a particularly charged election cycle. Local elections have also garnered national attention and big spending, like the New York City mayoral race between Democratic nominee and state assemblyman Zohran Mamdani and former Gov. Andrew Cuomo, which has raked in millions in campaign funds and capitalized on social media ads.
Business
Stocks slide and pound dives as bond yields spike

Stocks in London fell sharply on Tuesday and the pound sank, unnerved by a renewed spike in bond yields.
“Warning lights are flashing about increasingly tricky economic conditions and geopolitical risk,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“As concerns collide about the global outlook, inflationary pressures and worrisome public finances, the FTSE 100 remains on the back foot, with other European indices also largely in the red.”
The FTSE 100 index closed down 79.65 points, or 0.9%, at 9,116.69. The FTSE 250 ended 470.80 points lower, or 2.2%, at 21,162.89 and the AIM All-Share finished down 3.07 points, or 0.4%, at 765.57.
In Europe, the Cac 40 in Paris ended down 0.7%, while the Dax 40 in Frankfurt closed 2.3% lower.
“Investors are finding little reason to chase stocks higher when bond markets continue to promote the need for caution,” said Rostro analyst Joshua Mahony.
The yield on UK 30-year government bonds – also known as gilts – jumped to the highest level since 1998, at 5.71% on Tuesday, up seven points from Monday, while the yield on the 10-year bond stretched to 4.81%, up six points.
Gilt yields move counter to the value of the bonds, meaning their prices fall when yields rise.
Bond yields also soared across Europe. In Germany, the 10-year bond climbed four points to 2.79%, while in France, the 10-year bond yield widened to 3.59%, up five points. The yield on 30-year government bonds hit 4.50% in France, a 14-year high. In Italy, the 10-year bond yield increased seven points to 3.71%.
The latest gains came amid political instability in France and concerns over rising government debt across Europe.
Kathleen Brooks at XTB Research said a driver of weakness in the UK bond market could be a delayed reaction to the Government reshuffle on Monday.
“The Prime Minister beefed up his economic team in the lead-up to the budget. This has not gone down too well, with concerns that there is still a strategy void when it comes to the economy, as the Government struggles to deliver the growth that it promised,” she said.
The shake-up saw the chancellor’s deputy Darren Jones move into a new role as Chief Secretary to the Prime Minister.
Sir Keir Starmer also brought in Minouche Shafik, a former Bank of England deputy governor, as his chief economic adviser.
Treasury minister James Murray replaced Mr Jones as Treasury chief secretary, while Chipping Barnet MP Dan Tomlinson replaced Mr Murray as Treasury exchequer secretary.
Simon French, head of economics at Panmure Liberum, said Mr Jones and Ms Shafik were a “sensible” duo of appointments and “long overdue” given the lack of economic expertise in the Prime Minister’s team.
But he noted gilts were sold off partly because Mr Murray and Mr Tomlinson “are seen as more left wing than Darren.”
Ms Brooks said the UK was not an “outlier” as European bond yields were also moving higher.
“A rise in UK yields always garner more attention, because our yields are at a higher level to begin with. However, if UK yields continue to rise, and if they start to rise at a faster rate than elsewhere, then it could be a sign the market is pricing in a growing probability that Rachel Reeves will throw away her fiscal rules and borrow more at the budget to fund spending, rather than increase taxes and stymie growth.”
Deutsche Bank thinks the autumn budget will be a “defining moment” for the UK as the Chancellor looks to fill a fiscal hole worth around £20 billion to £25 billion.
“How the Chancellor decides to fill the fiscal hole will be important,” Deutsche said.
“While we expect fiscal headroom to be restored, we expect the Chancellor to adopt a slightly looser fiscal policy path in the near term, compared to March, with a good chunk of fiscal consolidation likely to be backloaded,” the bank said.
The pound dropped to 1.3389 dollars late on Tuesday afternoon in London, compared with 1.3548 at the equities close on Monday. The euro fell to 1.1659 dollars, against 1.1705 dollars. Against the yen, the dollar was trading higher at 148.20 compared with 147.27.
On the FTSE 100, insurer Legal & General fell 4.5%, while wealth management firms Phoenix Group and St James’s Place declined 4.2% and 3.6% respectively.
Rate sensitive housebuilders Persimmon and Taylor Wimpey fell 3.4% and 3.2%, with the latter not helped by a rating downgrade by Bank of America to “neutral” from “buy”.
Retailer Marks & Spencer tumbled 4.0% on fears consumer spending could stall amid slowing economic growth, and as house broker Shore Capital lowered earnings forecasts.
Electricity generator SSE fell 3.7%, which JPMorgan attributed to “rising UK bond yields and concerns around the company’s balance sheet”. However, JPM sees the weakness as a “buying opportunity”.
On the FTSE 250, Ithaca Energy tumbled 13% as its two leading shareholders sold a 3% stake.
Peel Hunt confirmed DKL Energy, a wholly owned subsidiary of Delek Group, and Eni UK, an indirect wholly owned subsidiary of Eni, offloaded 49.6 million shares. They were placed by Peel Hunt with institutional investors at a price of 213.75p per share for a value of £106.0 million.
Gold hit another record high, climbing to 3,511.91 dollars an ounce on Tuesday against 3,476.94 on Monday.
UBS said elevated political and geopolitical risks underline the appeal of gold, which tends to benefit from uncertainty.
“Gold’s status as a durable long-term portfolio diversifier is strengthening amid higher government debts, persistent inflation, geopolitical risks, and the desire of ex-G10 central banks to raise their longer-term holdings as a percentage of total reserves,” the Swiss bank said.
A barrel of Brent traded at 68.81 dollars late on Tuesday afternoon, up from 68.63 on Monday.
The biggest risers on the FTSE 100 were Fresnillo, up 94.0p at 1,919.0p, Endeavour Mining, up 40.0p at 2,664.0p, Unilever, up 64.0p at 4,728.0p, BP, up 3.1p at 434.2p and Haleon, up 2.5p at 363.2p.
The biggest fallers were Whitbread, down 142.0p at 2,983.0p, Legal & General, down 11.0p at 236.1p, Unite Group, down 30.5p at 674.5p, Phoenix Group, down 28.5p at 653.0p and Land Securities, down 23.0p at 529.0p.
Contributed by Alliance News
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