Connect with us

Business

UK secures £10bn deal to supply Norway with warships

Published

on

UK secures £10bn deal to supply Norway with warships


Jonathan BealeDefence correspondent and

Jessica RawnsleyBBC News

UK MOD Crown Copyright HMS Glasgow, aType 26 Frigate, makes its way to Scotstoun shipyard after being successfully floated on the Clyde.UK MOD Crown Copyright

The UK has secured a £10bn deal to supply the Norwegian navy with at least five new warships.

The agreement to provide Type 26 frigates will be the UK’s “biggest ever warship export deal by value”, the Ministry of Defence (MoD) said, while Norway said it would be its largest “defence capability investment” to date.

The government said the deal would support 4,000 UK jobs “well into the 2030s”, including more than 2,000 at BAE Systems’ Glasgow shipyards where the frigates will be built.

UK Prime Minister Sir Keir Starmer said the agreement would “drive growth and protect national security for working people”.

“This success is testament to the thousands of people across the country who are not just delivering this next generation capabilities for our Armed Forces but also national security for the UK, our Norwegian partners and Nato for years to come,” he added.

The deal is also expected to support more than 400 British businesses, including 103 in Scotland, the MoD said.

Speaking to the BBC, defence minister Luke Pollard called it the “biggest British warship deal in history” and “a huge vote of confidence in British workers and the British defence industry”.

But the move was criticised by some in Norway, including Tor Ivar Strømmen, a naval captain at the Norwegian Naval Academy, who said French and German frigates were superior to British.

“The British Navy builds vessels for one role,” he told Norwegian outlet NRK. “It simply has old-fashioned and quite limited air defence.”

The agreement represents a victory for the British government and defence industry over France, Germany and the United States – which were also being considered by Norway as possible vendors.

It will create a combined UK-Norwegian fleet of 13 anti-submarine frigates – eight British and five Norwegian vessels – to operate jointly in northern Europe, significantly strengthening Nato’s northern flank.

The warships will be constructed at the BAE Systems yard in the Govan area of Glasgow, where frigates for the Royal Navy are currently being built.

Scottish Secretary Ian Murray said the choice of the UK “demonstrates the tremendous success of our shipbuilding industry and showcases the world-class skills and expertise of our workforce on the Clyde”.

Norway’s Prime Minister Jonas Gahr Støre, who informed Sir Keir of the decision to select the UK in a phone call on Saturday night, said the partnership “represents a historic strengthening of the defence cooperation between our two countries”.

Støre said the government had weighed two questions in its decision: “Who is our most strategic partner? And who has delivered the best frigates?… The answer to both is the United Kingdom.”

PA Media Members of staff watch Prime Minister Sir Keir Starmer during a visit to BAE Systems in Govan, Glasgow, to launch the Strategic Defence Review.PA Media

Members of staff at BAE Systems shipyard in Glasgow during a visit by Prime Minister Keir Starmer to launch the strategic defence review

The Type 26 frigates purchased by the Royal Norwegian Navy will be as similar as possible to those used by their British counterparts, and have the same technical specifications.

They are specifically designed to detect, track, and destroy enemy submarines, with deliveries expected to begin in 2030.

UK Defence Secretary John Healey said the UK would “train, operate, deter, and – if necessary – fight together” under the defence deal.

“Our navies will work as one, leading the way in Nato, with this deal putting more world-class warships in the North Atlantic to hunt Russian submarines, protect our critical infrastructure, and keep both our nations secure,” he added.

Citing this year’s strategic defence review, Pollard said Russia had been identified “as the principal threat to not just the UK’s security but NATO’s security”.

“A key threat of that is Russian submarines in the North Atlantic,” he told the BBC. “These new Type 26 frigates are world-class submarine hunters.”

PA Media Prime Minister Sir Keir Starmer and Defence Secretary John Healey listen to Type 26 Programme Director, BAE Systems David Shepherd during a visit to BAE Systems in Govan, GlasgowPA Media

Starmer and defence secretary John Healey speak to the Type 26 programme director David Shepherd

Eight Type 26 frigates are currently being built at BAE Systems’ Glasgow shipyards for the Royal Navy, to replace its ageing Type 23 frigates – whose service life has already had to be extended.

It is not yet clear how the Norway deal will impact the delivery of the new vessels to the Royal Navy.

A UK defence source said the plan was still to deliver all 8 Type 26 frigates to the Royal Navy within the next decade. Norway has said it wants its first Type 26 delivered by 2029.

British officials told the BBC that the sequencing of delivery for both Norway and the UK still had to be worked out.

Two of the warships, HMS Glasgow and HMS Cardiff, have been built and are currently being fitted out at a second BAE shipyard, Scotstoun. They are due to enter service in 2028.

Another three, HMS Belfast, HMS Birmingham and HMS Sheffield, are under construction.

BAE has also licensed the Type 26 design to Canada and is building the warships in Australia under contract.

As part of a £300m modernisation at BAE Systems, a new shipbuilding hall – dubbed the “frigate factory” – was opened earlier this year.

The Janet Harvey Hall, named after a pioneering female electrician, is large enough for two frigates to be built simultaneously.

The Royal Navy is also buying 5 new Type 31 General Purpose Frigates – which are being built at Rosyth.



Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Modi Govts MASSIVE Festive Bonanza: GST Council Approves 2-Slabs Tax Structure; To Be Implemented From 22 September 2025

Published

on

Modi Govts MASSIVE Festive Bonanza: GST Council Approves 2-Slabs Tax Structure; To Be Implemented From 22 September 2025


New Delhi: GST Council Meeting: The 56th meeting of the GST Council that kick off on Tuesday morning has announced the much anticipated big-bang reforms in GST tax structure. 

The GST Council has accepted Group of Minister’s (GoM) proposal to retain two slabs — 5 percent and 18 percent. 

Till date, As per Indian GST rules,  a four-slab GST system was being followed — 5 percent, 12 percent, 18 percent, and 28 percent — along with an additional cess on sin and luxury goods.

Add Zee News as a Preferred Source




Source link

Continue Reading

Business

UK Government bond sell-off eases after Budget date confirmed

Published

on

UK Government bond sell-off eases after Budget date confirmed



UK long-term borrowing costs have eased back from fresh 27-year highs after the Treasury revealed the keenly-awaited autumn Budget will take place on November 26 – also helping to take the pressure off the pound.

The yield on 30-year UK Government bonds – also known as gilts – edged lower to 5.691% at one stage, having earlier hit a new high not seen since 1998.

Gilt yields move counter to the value of the bonds, meaning their prices fall when yields rise.

The pound, which suffered hefty losses on Tuesday, also reversed early session falls to stand 0.1% higher at 1.341 US dollars and was flat at 1.15 euros.

Financial markets have been heavily focused on the upcoming Budget, with the sell-off in gilts largely down to worries over Britain’s public finances and as investors look for reassurances on how Ms Reeves will plug a black hole in the nation’s public finances – estimated by some to be as much as £51 billion.

But recent pressure on gilts have also come amid a bond sell-off globally, with European and US government bonds likewise seeing yields jump due to political uncertainty and public finance concerns.

Japan was the latest to see its 30-year yield sent soaring as it hit an all-time high on worries over rising debts.

The Governor of the Bank of England has stressed that rising UK long-term government borrowing costs are part of a global pattern and said it is “important not to focus too much” on longer-term bond yields.

It came after the yield on 30-year Government bonds, called gilts, rose to a 27-year high earlier on Wednesday before dropping back later in the session.

Andrew Bailey told the Treasury Select Committee: “We’ve seen a steepening of yield curves across the developed world – the underlying driver of this is global.

“When you look at UK yields regarding the steepening, we are broadly in the middle of the pack. Germany and Japan have gone up significantly more than us, the US less than us.

“It’s important not to focus too much on the 30-year-bond rate.

“It’s a number that gets quoted a lot. It is quite a high number but it is not what is being used for funding at all at the moment actually.

“There is a lot of dramatic commentary on this but I wouldn’t exaggerate the 30-year bond rate.”

Rising yields on these bonds mean it costs more for governments to borrow from financial markets.

But experts believe a driver of weakness in the UK bond market this week could have been compounded by concerns over the Prime Minister’s Government reshuffle on Monday and Chancellor Rachel Reeves’s position.

No 10 insisted on Tuesday that the Chancellor’s authority was not being dealt a blow by Sir Keir Starmer’s shake-up in a bid to calm market jitters.

This week’s reshuffle saw the Chancellor’s deputy, Darren Jones, move into a new role as chief secretary to the Prime Minister.

Health Secretary Wes Streeting told Sky News: “The Chancellor, since she came in last year, has been determined to restore stability to our economy, to get growth back into our economy, and to create the conditions where we can get the nation’s finances back to health.”

He said while there are “encouraging signs”, there is “much more to do”.

Mr Streeting added: “Britain is not out of the woods, and that is why the discipline and the focus that she (the Chancellor) has brought on cost of living, on economic growth and creating the conditions for businesses to be successful is really important, and the discipline we show as a Cabinet in terms of public spending is really important.”

London’s FTSE 100 Index lifted 35.6 points to 9152.3 in Wednesday mid-morning trading, while gold earlier hit new record highs once again – above 3,530 US dollars – as nervous investors flocked to the safe haven asset.

Kathleen Brooks, research director at XTB, said the “focus is likely to remain on the Budget for some time” and cautioned that bond markets will continue to see volatility.

She said: “UK bond yields have been on an upward trajectory for most of this year and have risen significantly since Labour took office.

“The bond market will need some hefty persuading that Labour will rein in public sector spending and bring the UK’s finances under control.

“This is why we expect to see bouts of UK bond market volatility in the coming months.”



Source link

Continue Reading

Business

Netflix will let users customize and share clips on mobile

Published

on

Netflix will let users customize and share clips on mobile


Netflix on Wednesday announced a new update to its “Moments” feature, allowing viewers to choose a start and end point on clips to save and share.

The feature, which is only available on mobile devices, was first rolled out last year, for viewers to save scenes that they love and share them.

The new update coincides with the release of the second part of season 2 of the popular show “Wednesday.”

Netflix’s new update to the “Moments” feature is looking to capitalize on viral moments in shows such as “Wednesday.” The update includes a “clip” option on the screen to adjust the length of a segment. After it’s clipped, the video will save to viewers’ “My Netflix” tab for rewatching or sharing.

During the first season of the series — a spin on the classic TV show “The Addams Family” — a scene of the title character, Wednesday, dancing went viral and became one of the series’ most popular moments. “Wednesday” is the most popular Netflix show to date, with more than 252 million views, according to the company’s website.

The first part of the series debuted in August and has raked in tens of millions of views so far.

The new update comes as Netflix is revamping its brand, with a redesigned homepage and a vertical video feed on mobile that looks similar to TikTok.

The streaming giant has implemented a variety of strategic moves since its brief period of stagnation in 2022, from updating its features to business initiatives such as a cheaper ad-supported subscription plan and a password-sharing crackdown.

Netflix no longer releases subscription data, but the streamer reported it had more than 300 million paid memberships in January.

Don’t miss these insights from CNBC PRO



Source link

Continue Reading

Trending