Business
Bank of England rate-setter says inflation not a ‘particularly British problem’

A Bank of England policymaker has dismissed suggestions that inflation is a problem unique to Britain, as she called for more interest rate cuts.
Swati Dhingra, a member of the Bank’s Monetary Policy Committee (MPC), argued there was no need to be “overly cautious” about lowering borrowing costs.
Writing in The Times, Ms Dhingra said: “It’s become commonplace to assert that inflation in the UK is out of step with other economies, requiring a more careful approach to cutting interest rates as a result.
“With prices for services and food rising more quickly than in the major eurozone countries, inflation looks like a particularly British problem.”
But she said that was not the case and that the factors putting pressure on UK inflation “will fade”.
A report from the Organisation of Economic Co-operation and Development (OECD) earlier this week found that Britain will experience the highest level of inflation among the G7 group of advanced economies this year.
In 2026, the overall inflation rate will be the second highest in the G7, behind only the US, according to its forecasts.
Ms Dhingra said food prices are often a named “culprit for accelerating inflation”, having risen at a faster pace in the UK than in the eurozone.
“But it’s not clear that this gap reflects anything other than global trends and slightly different supply chains and shopping baskets in the two economies,” she wrote.
“The difference in inflation between the UK and our continental neighbours can be largely explained by administered prices and global commodity shocks.
“These should pass.
“We can afford to cut rates further and not put additional strain on economic growth without threatening the inflation target.”
Her comments contrast to remarks made by fellow MPC member Megan Greene earlier this week, who said risks to the UK’s inflation outlook may have increased.
Ms Greene said a “cautious approach to rate cuts going forward” was appropriate in the face of “uncertainty and risks” to the economy.
Business
Brighter US outlook fires up European stocks

The FTSE 100 recorded strong gains on Friday as US data pointed to resilient consumer spending and relatively subdued inflation, keeping hopes for rate cuts across the pond on track.
The FTSE 100 index closed up 70.85 points, 0.8%, at 9,284.83. The FTSE 250 ended 93.71 points higher, 0.4%, at 21,681.48, and the AIM All-Share ended up 3.91 points, 0.5%, at 777.53.
For the week, the FTSE 100 rose 0.7%, the FTSE 250 advanced 0.4% and the AIM All-Share climbed 0.4%.
Figures from the Bureau of Economic Analysis showed US inflation pressure was largely steady in August.
The core personal consumption expenditures price index, which is the Federal Reserve’s preferred inflationary measure, rose 2.9% on-year in August, matching the pace of growth from July and landing in line with FXStreet cited consensus.
The core reading excludes food and energy. The headline PCE price index rose 2.7% on-year last month, picking up speed slightly from 2.6% in July, as expected.
In addition, the report showed personal income rose 0.4% month-over-month, the same as in the month prior. Consumer spending grew 0.6% month-on-month in nominal terms, coming on the heels of 0.5% gains in the two months prior.
Personal income beat consensus of 0.3%, while spending beat a forecast of 0.5%.
Barclays analyst Pooja Sriram called the inflation figures subdued although she expects core inflation to firm in the coming months amid tariff pass-through.
Analysts at TD Economics said the data, following strong economic growth figures on Thursday, suggests that the US consumer is in “somewhat better shape than previously thought”.
“Overall, an improved growth trend and persistent inflation lean in favour of the Fed potentially having to do a little less in the way of rate cuts to support the economy. This may put some doubt on the interest rate path, though it does not derail the case for two more rate cuts by the end of this year,” the broker said.
The CME FedWatch tool puts an 86% chance of a quarter point rate cut at the Federal Open Market Committee meeting in October, unchanged from Thursday.
The pound was quoted higher at 1.3399 dollars at the time of the London equity market close on Friday compared with 1.3348 dollars on Thursday. The euro stood at 1.1692 dollars, higher against 1.1676 dollars. Against the yen, the dollar was trading at 149.51 yen, lower compared with 149.74 yen.
The yield on the US 10-year Treasury was quoted at 4.18% trimmed from 4.20% on Thursday. The yield on the US 30-year Treasury stood at 4.75%, narrowed from 4.76%.
In European equities on Friday, the CAC 40 in Paris closed up 0.8%, as was the DAX 40 in Frankfurt.
Stocks in New York were mixed at the time of the London close. The Dow Jones Industrial Average was up 0.4%, the S&P 500 index was 0.2% higher, while the Nasdaq Composite was down 0.1%.
On the FTSE 100, Intercontinental Hotels topped the blue-chip leaderboard, rising 4.0%, as JP Morgan double upgraded the hotel operator to ‘overweight’ from ‘underweight’.
IHG is a “quality compounder” benefiting from superior earnings visibility and execution, in JPM’s view, adding this is “key” in times of revenue per average room uncertainty.
Pharmaceutical stocks shrugged off new tariffs from the US with AstraZeneca up 0.4% and GSK up 1.1%.
Russ Mould, investment director at AJ Bell, explained that drug companies are exempt from the 100% tariffs on US imports if they are building a factory in the country.
“That means AstraZeneca and GSK are safe as they’ve both unveiled big investments in the US in what look like strategic moves to get on the right side of Trump,” he said.
“Being exempt is a big win for these companies given previous uncertainty over how they might be affected by Trump’s repeated threats for tariffs on the pharmaceutical sector,” he added.
Phoenix Group rose 1.9% as RBC Capital Markets raised its share price target and reiterated an ‘outperform’ rating.
“Phoenix shares continue to trade at a notable valuation discount versus peers, likely reflecting perceptions that are increasingly unwarranted, in our view,” RBC said.
The broker expects Phoenix to start deploying excess capital supporting buybacks alongside financial 2026 results.
Pennon Group climbed 0.2% as it said its financial performance remains on track, although guidance fell short of consensus, amid the benefits and challenges from the hot weather.
In a trading statement covering April 1 to September 25, the Exeter-based water utility company explained that high demand for water over the summer due to the hot weather was more than offset in revenue by increased meter usage, deferring sales into financial 2027.
In addition, the hot weather also resulted in higher operational costs to respond to the increased demand and operational pressure on the networks.
Despite this, Pennon said it has made a “strong return” to profitability, with earnings before interest, tax, depreciation and amortisation anticipated to increase by 60% year-on-year, net of revenue deferred into financial 2027.
In the financial year to March 2025, Pennon reported underlying Ebitda of £335.6 million.
Analysts at Jefferies said this was slightly below consensus of 66%/67% although part of the variation could be driven by the profiling of revenues from the current year into next to manage the bill profile.
Brent oil advanced to 70.64 dollars a barrel on Friday from 69.15 dollars late on Thursday. Gold firmed to 3,775.97 dollars an ounce on Friday, up against 3,729.67 dollars on Thursday.
The biggest risers on the FTSE 100 were Intercontinental Hotels Group, up 350.0 pence at 9,124.0p, Hikma Pharmaceuticals, up 52.0p at 1,644.0p, Babcock International, up 39.0p at 1,273.0p, NatWest, up 15.2p at 520.4p and Kingfisher, up 8.2p at 301.0p.
The biggest fallers on the FTSE 100 were Rio Tinto, down 84.5p at 4,831.5p, Coca-Cola Europacific Partners, down 80.0p at 6,620.0p, Spirax, down 80.0p at 6,795.0p, Bunzl, down 24.0p at 2,336.0p and Scottish Mortgage Investment Trust, down 11.0p at 1,120.0p.
Monday’s global economic calendar has UK mortgage approvals figures, US pending home sales numbers and Spanish CPI data. Later in the week, a slew of data on the US jobs market will be released, culminating in Friday’s nonfarm payrolls.
Monday’s UK corporate calendar sees third quarter results from cruise operator Carnival. Later in the week, food retailer Tesco reports half-year results while bakery chain Greggs issues a third quarter trading statement.
Contributed by Alliance News
Business
JLR suppliers with ‘days of cash’ left, MP says

Sarah JulianBBC Radio WM and
Eleanor LawsonWest Midlands

Some businesses in the Jaguar Land Rover (JLR) supply chain have just seven to 10 days of money left, an MP has told the BBC.
Ten companies within the supply chain voiced their concerns about their businesses, in the wake of the cyber attack at JLR, at a meeting with the government’s Business and Trade Committee on Thursday.
Labour MP for Tamworth Sarah Edwards, who is a member of the committee, said some of the companies had not been paid by JLR since the end of August.
“They’re very worried, they are concerned,” Ms Edwards said. “It’s imperative suppliers are paid very very quickly.”
JLR, which has plants in Solihull, Wolverhampton and Merseyside, employs about 30,000 people directly, with an additional 100,000 in the supply chain.
Ms Edwards said the 10 companies in attendance at Thursday’s meeting covered a “cross section” of first-line direct suppliers, covering the “whole eco-system” of the supply chain.
She expressed particular concerns about the smaller suppliers and their cashflow concerns.
“It’s very worrying and that’s because we’re nearly a month into this – some of those suppliers had not been paid,” she said.
“We heard from one supplier who had still not received payment from JLR since 29 August, so it’s really good to hear that the [JLR] invoicing system is coming back online.”
JLR said on Thursday that it had begun a “phased restart” of its operations with parts of its IT system back up and running.

Ms Edwards said some of the suggestions from the businesses were how to keep money within the supply chain and how the government might be able to support that.
“The feeling was [the need to] retain the work force and skills and having the immediate cash flow to keep these places open,” she said.
“We heard from one smaller supplier who’s already had to sell machinery, sell one of their trucks and go from two buildings down to one.
“Some people are at home already, they do not know whether they’ll be returning to work and when.”
The MP added that JLR needed “to be much clearer on the timeframe” for the return to production, as suppliers were unable to plan, meaning “they’re at a much higher risk of not being able to weather this.”
She said that some of the businesses thought that JLR “could have done more to communicate with them” and wanted clarity on the situation.
One idea the government is exploring is for it to buy the component parts built by the suppliers to keep them in business until JLR’s production lines are up and running, and then sell on those parts to JLR.
Ms Edwards said the businesses were pleased to hear it was an option being discussed but believed there would be “logistical challenges”.
“This is a ‘just in time’ operation, so storing those parts, making sure they’re not damaged, making sure that quality control is intact would be difficult,” she said.
“One of the thoughts [from the suppliers] therefore was that you could buy forward, so you’d essentially place the orders knowing you were going to start production but pay now. That’s an option they thought was more likely.”
Addressing the role of the government in supporting the supply chain, the MP said: “This is JLR and their issue, it shouldn’t really lie with the taxpayer, but it may be the taxpayer needs to step in temporarily.”
The Conservative Party said it would back a targeted emergency loan scheme for UK firms after the cyber attack affecting JLR.
The Tories have also called on the government to look into new cyber insurance measures.
“JLR’s supply chain is significant in the West Midlands and nationally,” said shadow business secretary Andrew Griffith.
Business
Trump announces new tariffs on trucks, drugs and kitchen cabinets

Osmond Chia and
Charlotte Edwardsbusiness reporters

US President Donald Trump has announced a new wave of tariffs, including a 100% levy on branded or patented drug imports from 1 October unless a company is building a factory in the US.
Washington will also impose a 25% import tax on all heavy-duty trucks and 50% levies on kitchen and bathroom cabinets, the president said as he unveiled the industry-focused measures.
“The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” Trump wrote on his Truth Social platform on Thursday, citing the need to protect US manufacturers.
The announcements come despite calls from US businesses for the White House to not impose further tariffs.
However, Neil Shearing, chief economist at Capital Economics, said the tariff announcement on pharmaceuticals was “not quite as big a move as it appears at first sight”.
This was due to the exemptions available to generic drugs and to those firms building factories in the US.
“Many of the world’s largest pharmaceutical companies either already have some production in the US or have announced plans to build production in the near future,” he said.
The European Federation of Pharmaceutical Industries and Associations has called for “urgent discussions” to make sure Trump’s plans for new tariffs do not cause any harm to patients in the EU or the US.
The UK exported more than $6bn (£4.5bn) worth of pharmaceutical products to the US last year, according to the United Nations.
In the trade agreement signed by the US and UK in June the two countries said they intended to negotiate “significantly preferential treatment outcomes on pharmaceuticals”.
In response to Trump’s latest announcement, a UK government spokesperson said: “We know this will be concerning for industry, which is why we’ve been actively engaging with the US and will continue to do so over the coming days.”
Among the UK’s biggest pharmaceutical companies, GlaxoSmithKline already has US manufacturing plants and last week pledged to invest $30bn (£22bn) in research and manufacturing in the US over the next five years.
AstraZeneca also has plants in the US and in July said it planned to invest $50bn in the country by 2030.
William Bain, head of trade policy at the British Chambers of Commerce, said: “The UK’s leading pharmaceutical companies have committed to significant investment in the US, including in advanced manufacturing. We believe this should give them protection from any new duties.”
In the past couple of weeks, several pharmaceutical companies have pulled investment from the UK, citing a poor environment for the sector.
But Jane Sydenham, investment director at Rathbones, said the need to focus on the US was a key factor in these decisions.
“I think there’s been this ongoing narrative that the UK can’t attract investment and we’re a low growth economy,” she told the BBC’s Today programme.
“But the reality in this particular sector is that it is really more about Donald Trump’s agenda and the uncertainty that’s creating for these companies and where they might need to invest to handle the tariff proposals.”

The tariffs on heavy trucks would protect US manufacturers from “unfair outside competition” and the duties would help lift American companies such as Peterbilt and Mack Trucks, Trump said.
The new levies on kitchen and bathroom cabinets, as well as some other furniture, were in response to high levels of imports, which hurt local manufacturers, the president said.
He added that the US would start charging a 30% tariff on upholstered furniture from next week.
Swedish furniture giant Ikea said the tariffs on furniture imports make doing business “more difficult”.
“The tariffs are impacting our business similarly to other companies, and we are closely monitoring the evolving situation.”
Trump’s tariff policies have been a key feature of his second term in the White House.
His sweeping tariffs on more than 90 countries came into effect in early August, as part of his policies aimed at boosting jobs and manufacturing in the US, among other political goals.
Trump had previously imposed sector-specific tariffs on steel, copper, aluminium, cars and vehicle components.
Earlier this year, the US Chamber of Commerce urged the White House to not introduce new tariffs, arguing that many parts used in truck production are sourced “overwhelmingly” from countries like Mexico, Canada, Germany, Finland and Japan.
Mexico and Canada are among the biggest suppliers of parts for medium and heavy-duty trucks, accounting for more than half of total US imports in the sector last year, said the chamber.
It warned that it was “impractical” to expect many of these parts to be sourced domestically, resulting in higher costs for the industry.
The new tariffs favour domestic producers but are “terrible” for consumers as prices are likely to rise, said trade expert Deborah Elms from research firm Hinrich Foundation.
The levies would cover more products at higher rates than Trump’s reciprocal tariffs, which were aimed at correcting trade imbalances with other countries.
These industry-specific import taxes could serve as a back-up plan to secure revenues as Trump’s sweeping duties on global trading partners are being challenged in court, said Ms Elms.
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