Business
Business news live: Contactless payments cap could be scrapped, no interest rates cut
Beware the QR code: How a new scam is costing consumers £10,000 per day
Whether you’re ordering drinks to your table in a pub or want to pay for car parking, QR codes make life simple.
A quick scan of a black-and-white grid on your mobile phone takes you straight to a website to carry out the transaction.
But that harmless-looking square can hide a cunning scam.
Karl Matchett10 September 2025 15:40
Business and Money blog – 10 September
Morning all – we’re back again to bring you all things business and money, the latest economic updates, what our esteemed leaders are up to and how it all affects our pockets and bank accounts.
Stock market updates to come too as usual along the way, with Primark’s owner providing an update this morning.
Karl Matchett10 September 2025 07:54
Primark owner says sales improving despite ‘consumer caution’
The parent firm of Primark has said the retail chain saw trading improve in recent months despite “consumer caution”, as its UK and Ireland stores recovered ground.
Associated British Foods (ABF) said Primark sales are set to have grown by 1% over the half-year to September 13, as womenswear and more favourable weather conditions helped support UK stores.
George Weston, chief executive of ABF, said: “I’m pleased with how the group has performed in the second half of our financial year in what continues to be a challenging environment, characterised by consumer caution, geopolitical uncertainty and inflation.”
Primark opened 15 new stores including two in the UK.
Karl Matchett10 September 2025 08:00
FCA propose for banks to set contactless cap – £100 could become limitless
Right now, you’re doubtless used to paying for things in contactless fashion: hover your card, waft your phone.
Only one of those has a spending limit though: you need a PIN to use your card for payments over £100, the cap which has been in place since 2021.
However, the FCA (who sets the rules) have proposed a change which could come into play in just a few months, whereby your bank will instead set the card contactless limit – which means it could in theory be limitless.
That would match paying by device, even though almost four in five (78%) of consumers said they didn’t want a change in rules.
“People are still protected. Even with contactless, firms will refund your money if your card is used fraudulently,” said the FCA’s David Geale.
Karl Matchett10 September 2025 08:20
Contactless pay cap scrap continues ‘red tape bonfire to speed up growth’
One expert has detailed how binning the contactless pay cap is intended to help us spend more, and more quickly… to help the economy of course.
Whether that’s something consumers actually want – or whether they even think about if they were spending £101 rather than £99 – is up for debate.
But the reminder is there that in fraudulent cases it’s the merchants on the line, not the card owner, so the onus is still on them to check if it’s a big payment or an unusual purchase.
“UK retailers may be hopeful that a further spending boost could come from an expected relaxation of contactless card payment limits,” said Susannah Streeter, head of money at Hargreaves Lansdown.
“The Financial Conduct Authority is proposing to scrap the £100 cap for potentially unlimited transactions, although these would still be set by banks and other providers.
“This is part of a red tape bonfire to try and reduce financial regulation and speed up growth. The idea is that it will be more efficient for retailers and customers alike and will make it easier for consumers to spend more, more quickly.
“This would bring the process more into line with mobile wallets, which can used already for higher-value transactions. There is the potential for increased fraud, but consumers will still have their money protected in the same way, when flagged to a bank.
“It’s the merchants who ultimately pay the price for fraudulent transactions, via the Chargeback process. So, investment in more advanced detection and prevention methods will be even more crucial, including real time monitoring and behavioural analytics to mitigate risks.
“These are investments larger retailers will be better placed to make, but small retailers are likely to be more reluctant to wave through big payments, without extra checks.’”
Karl Matchett10 September 2025 08:40
Vistry profits tumble as home buyers remain wary
Housebuilder Vistry has seen half-year profits more than halve as buyer demand comes under pressure from worries over the wider economy and slower-than-hoped cuts to interest rates.
The group reported pre-tax profits tumbling 55% to £40.9 million in the six months to June 30.
Vistry – formerly Bovis Homes group – said its forward order book was lower than a year ago, standing at £4.3 billion against £5.1 billion this time last year.
It said it was looking to boost flagging demand with “sales and marketing initiatives”.
Karl Matchett10 September 2025 09:23
More Bank of England interest rate cuts no longer likely
Analysts and markets alike are predicting that the Bank of England – or its MPC – may not vote to cut interest rates below 4% for the rest of 2025.
Higher inflation, an uncertain jobs market and the prospect of taxes in the Budget mean many have altered their expectations, with it previously expected the MPC would continue with this year’s pattern of one cut per quarter.
The MPC meets next week, then again in November and December.
HSBC and Pantheon Macroeconomics both now expect no cuts in any of those three meets, with Deutsche Bank switching to only a cut in December rather than the previously anticipated November.
Karl Matchett10 September 2025 09:31
Major analyst still backing one cut – and Budget could impact
Sticking with interest rates, earlier this week, Barclays analysts said in a research note that they are sticking with a November cut as their prediction:
“We see a November cut as finely balanced but, without upside news relative to our forecast in CPI outturns in the coming months, we think that balance continues to tip to a 25bp cut.”
However, they also cite “divergent views [within the MPC voters] and heightened uncertainty” due to the Budget as being big factors at play which could change matters quickly.
The note also points to Rachel Reeves’ big issue:
“We calculate the chancellor will have to find £26.5bn of fiscal consolidation … to meet her fiscal rule.”
Friday’s July GDP release is expected to come out to show no growth month to month, they add.
Karl Matchett10 September 2025 09:45
FTSE 100 rises 0.2 per cent – AI shares on the rise again
Pre-markets show some AI-based US stocks are set to rise later today, while the FTSE 100 on these shores is also up – though at 0.2 per cent, it’s being out-shone so far by France’s CAC 40 at 0.3 per cent in the green.
“European shares pushed ahead on a busy day for corporate news,” said Russ Mould, investment director at AJ Bell.
“A record-breaking day for Wall Street yesterday helped to calm investor nerves over Poland shooting down Russian drones that violated its airspace. Geopolitical concerns have been front and centre for multiple years, and investors had been hoping for tensions to ease.
“Oracle shares soared amid optimism about AI-related revenue, sending a strong message to the broader market that the tech revolution is still red hot. That had a positive read-across to Nvidia which advanced 2% in pre-market trading.
“The FTSE 100 advanced 0.2% to 9,263 as financials and healthcare stocks were in demand.”
Karl Matchett10 September 2025 10:00
Several businesses hope to go public on London Stock Exchange
The London Stock Exchange could get a real boost with 11 new firms looking to list on it.
A report in the FT says several firms are hoping to IPO within the next 12 months, including private equity businesses.
Beauty Tech Group announced their intention to join the LSE this week, with tech firm Visma one of the high-profile names aiming to go public next year.
Only seven companies have done so in London this year so far – the worst in almost three decades, says the FT.
Karl Matchett10 September 2025 10:20
Business
OpenAI shares data on ChatGPT users with suicidal thoughts, psychosis
OpenAI has released new estimates of the number of ChatGPT users who exhibit possible signs of mental health emergencies, including mania, psychosis or suicidal thoughts.
The company said that around .07% of ChatGPT users active in a given week exhibited such signs, adding that its artificial intelligence (AI) chatbot recognizes and responds to these sensitive conversations.
While OpenAI maintains these cases are “extremely rare,” critics said even a small percentage may amount to hundreds of thousands of people, as ChatGPT recently reached 800 million weekly active users, per boss Sam Altman.
As scrutiny mounts, the company said it built a network of experts around the world to advise it.
Those experts include more than 170 psychiatrists, psychologists, and primary care physicians who have practiced in 60 countries, the company said.
They have devised a series of responses in ChatGPT to encourage users to seek help in the real world, according to OpenAI.
But the glimpse at the company’s data raised eyebrows among some mental health professionals.
“Even though .07% sounds like a small percentage, at a population level with hundreds of millions of users, that actually can be quite a few people,” said Dr. Jason Nagata, a professor who studies technology use among young adults at the University of California, San Francisco.
“AI can broaden access to mental health support, and in some ways support mental health, but we have to be aware of the limitations,” Dr. Nagata added.
The company also estimates .15% of ChatGPT users have conversations that include “explicit indicators of potential suicidal planning or intent.”
OpenAI said recent updates to its chatbot are designed to “respond safely and empathetically to potential signs of delusion or mania” and note “indirect signals of potential self-harm or suicide risk.”
ChatGPT has also been trained to reroute sensitive conversations “originating from other models to safer models” by opening in a new window.
In response to questions by the BBC on criticism about the numbers of people potentially affected, OpenAI said that this small percentage of users amounts to a meaningful amount of people and noted they are taking changes seriously.
The changes come as OpenAI faces mounting legal scrutiny over the way ChatGPT interacts with users.
In one of the most high-profile lawsuits recently filed against OpenAI, a California couple sued the company over the death of their teenage son alleging that ChatGPT encouraged him to take his own life in April.
The lawsuit was filed by the parents of 16-year-old Adam Raine and was the first legal action accusing OpenAI of wrongful death.
In a separate case, the suspect in a murder-suicide that took place in August in Greenwich, Connecticut posted hours of his conversations with ChatGPT, which appear to have fuelled the alleged perpetrator’s delusions.
More users struggle with AI psychosis as “chatbots create the illusion of reality,” said Professor Robin Feldman, Director of the AI Law & Innovation Institute at the University of California Law. “It is a powerful illusion.”
She said OpenAI deserved credit for “sharing statistics and for efforts to improve the problem” but added: “the company can put all kinds of warnings on the screen but a person who is mentally at risk may not be able to heed those warnings.”
Business
UK airline Eastern Airways suspends operations with all flights cancelled
UK domestic airline Eastern Airways has suspended operations and all of its flights have been cancelled.
Customers of the airline, which operated regional services from airports across the UK, are being urged not to go to the airport as flights will not be operating, the UK Civil Aviation Authority said.
Destinations the airline flew to included Aberdeen, Humberside, London Gatwick, Newquay, Teesside International and Wick, according to its website.
Eastern Airways customers are being urged to make their own alternative travel arrangements via other airlines, rail or coach operators.
On Monday morning Eastern Airways (UK) Ltd filed a notice of intention to appoint an administrator at the Insolvency and Companies Court, which is within the High Court.
Selina Chadha, consumer and markets director at the UK Civil Aviation Authority, said: “We urge passengers planning to fly with this airline not to go to the airport as all Eastern Airways flights are cancelled.
“Eastern Airways customers should visit the Civil Aviation Authority’s website for the latest information.”
Following the suspension of Eastern Airways operations, London and North Eastern Railway, ScotRail, TransPennine Express, and Northern will offer free standard class travel to Eastern Airways staff and customers on October 28 and 29, on suitable routes operated by each train company, the UK Civil Aviation Authority said.
To access this support, present either an Eastern Airways employee ID, boarding pass, or flight confirmation to station staff.
Business
EU sanctions on Russia: New opportunities for Indian businesses; bilateral trade up, says IBA – The Times of India
The European Union’s latest package of sanctions on Russia has opened new avenues for Indian businesses to expand trade with Moscow, according to the Moscow-based Indian Business Alliance (IBA).On October 23, the Council of the European Union adopted its 19th round of restrictive measures targeting key Russian sectors—including energy, finance, and defense — in response to what it called “Russia’s illegal invasion of Ukraine.”In a statement, the IBA said, “The EU sanctions against Russia have had an unexpected effect — instead of weakening the Russian economy, they have spurred local production and innovation. Russian industries have responded dynamically, filling the gaps left by the withdrawal of Western companies,” as cited by PTI.The alliance added that the measures have deepened Russia’s partnerships with “friendly nations, particularly India.” As Western firms exited Russia, Indian businesses stepped in to meet growing demand. “Bilateral trade between India and Russia has now reached a record $68.7 billion, reflecting the growing momentum in bilateral relationship,” the statement, signed by IBA president Sammy Manoj Kotwani, said.The 19th sanctions package also bans exports of several goods — including sanitaryware, electric motor toys, and tricycles — to Russia. The IBA said Indian companies have been quick to capitalize on these gaps. “Indian generic drug manufacturers, who in the past have been targets of western rivals’ smear campaigns, are today ensuring stable supplies for Russian hospitals and pharmacies,” it said.Indian exporters of engineering goods and machinery have expanded shipments of equipment, components, and spare parts, while Indian consumer products have reappeared on Russian shelves. The IBA noted that Indian tea, rice, spices, and garments are increasingly replacing European brands.“This cooperation benefits both nations — Russian consumers enjoy stable access to quality products, while Indian exporters gain new and growing markets,” Kotwani said, as quoted by PTI. He added that the IBA is actively helping businesses from both countries connect, facilitating logistics, partnerships, and guidance to build mutual trust. “Together, Russia and India are transforming global challenges into new opportunities — and emerging more resilient, united, and forward-looking than ever,” he said.The EU sanctions came a day after the United States announced its own measures against Russia. On October 22, Washington imposed sanctions on Rosneft and Lukoil, Russia’s two largest crude oil producers, prohibiting all American entities and individuals from doing business with them.At the same time, the US levied a 25% tariff on India for purchasing Russian oil, in addition to existing reciprocal duties on Indian exports. Indian goods are currently subject to nearly 50% additional import tariffs in the US. New Delhi has called these duties “unfair, unjustified and unreasonable.”Meanwhile, India on Monday reviewed progress in negotiations for a proposed free trade agreement (FTA) with the European Union. Commerce and Industry Minister Piyush Goyal met with EU Commissioner for Trade and Economic Security Maros Sefcovic in Brussels to discuss the ongoing talks.
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