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Stock markets in the UK, US and Europe have hit fresh record intra-day highs today.<\/p>\n
The FTSE 100 in London, Wall Street and Spain\u2019s Ibex have scaled new all-time peaks, and Apple briefly touched a market value of $4tn for the first time, boosted by the popularity of its new iPhone models.<\/p>\n
Microsoft also topped that level as its share price jumped as much as 4% at the open, taking its market cap to $4.06tn, after announcing a new deal with OpenAI.<\/p>\n
Both companies report quarterly results in the next couple of days.<\/p>\n
Rachel Reeves has expressed confidence that a trade deal with Gulf countries can be done quickly, saying she had \u201creally good\u201d meetings in Riyadh.<\/p>\n
\u201cI am really confident we can get that deal over the line,\u201d the UK chancellor said at Saudi Arabia\u2019s flagship investment summit held in the Saudi capital, adding she was hopeful that the agreement could be reached \u201cvery soon\u201d.<\/p>\n
The UK government hopes to deepen its relationship with Saudi Arabia, even though it has been widely criticised for human rights abuses<\/a>.<\/p>\n Our other main stories today:<\/p>\n Thank you very much for reading. We\u2019ll be back tomorrow with the latest business news. Take care! \u2013 JK<\/p>\n Share<\/a>FTSE 100, US stocks at all-time highs; Apple, Microsoft top $4tn market cap<\/p>\n The UK\u2019s FTSE 100 has hit a new intra-day record and Wall Street shares are also at all-time highs \u2013 with Apple hit a $4 trillion market value for the first time.<\/p>\n The FTSE 100 has hit a record peak of 9,715.22, and is currently trading 0.5% higher at 9,698.4.<\/p>\n US stocks also hit new peaks after the opening bell on Wall Street, with gains of between 0.3% and 0.7% for the S&P 500, tech-heavy Nasdaq and Down Jones.<\/p>\n The Apple share price rose by around 1% to $269.86, taking the company\u2019s market cap to $4tn, boosted by the popularity of its latest iPhone models. It has dipped just below that level again. The tech company is due to report quarterly results on Thursday.<\/p>\n Microsoft jumped as much as 4% to a market value of $4.06tn after announcing a deal with OpenAI, and ahead of its earnings report tomorrow.<\/p>\n Other tech companies such as Google owner Alphabet, Amazon and Facebook and Instagram parent Meta are also reporting earnings this week.<\/p>\n Investors have been willing to take more risks after signs of easing trade tensions and ahead of a likely interest rate cut from the Federal Reserve at the end of its two-day meeting tomorrow.<\/p>\n Share<\/a><\/p>\n Updated at\u00a010.54 EDT<\/p>\n Wizz Air uses AI to cut fuel consumption and improve customer service Wizz Air is using artificial intelligence to help cut its fuel consumption, as the new tech monitors weather patterns and calculates optimal speeds and altitudes for its planes. <\/p>\n Michael Delehant, chief commercial and operations officer at the budget airline, told reporters that AI and machine learning now saves it 4 kilograms of fuel per flight. He said:<\/p>\n How do you constantly manage a web of never-ending movements, day and night? It\u2019s 24\/7, all weekends, no time off. AI in the middle of our operations has been a significant step forward.<\/p>\n The budget airline, which is headquartered in Hungary and listed on the London Stock Exchange, carries tens of millions of passengers every year. It operates short-haul flights from nine UK airports including London Gatwick, Birmingham, Edinburgh and Luton.<\/p>\n However, it has ranked among the lowest scores for customer satisfaction for short-haul economy airlines. This year the consumer group Which? found it had an overall customer score of 51%, just above Ryanair in bottom place at 49%. <\/p>\n The airline said it was using AI to help improve its customer service, as well as hiring more English-speaking call centre agents. Its new chatbot, Amelia, is also taking thousands of calls in a matter of hours, in what would normally take human agents \u201cweeks\u201d, the airline said. <\/p>\n Delehant said:<\/p>\n The way we look at AI is not about replacing jobs. I know there\u2019s a lot of fear across many industries that AI is going to replace us. You shouldn\u2019t look at it this way: I think what AI\u2019s opportunity really is right now is to make us more bionic.<\/p>\n Wizz Air will also be testing a business class-style booking in December, which allows a passenger to block the middle seat so they can have more room. Delehant said:<\/p>\n There will be no big seat or anything like that\u2026But a bit more space by blocking the middle seats…There are so many low cost business travellers. They own their own businesses, they don\u2019t want to spend first class prices or business class…but they\u2019d like a little more space.<\/p>\n Share<\/a>Pimco sells down debt position in Thames Water, Sky reports<\/p>\n The bond fund manager Pimco has reportedly sold most of its debt position in Thames Water as the crisis-hit water company edges closer to a private sector rescue deal, aimed at staving off temporary nationalisation.<\/p>\n Sky News reported<\/a> that Pimco, run by the former Man Group boss Emmanuel Roman, has in recent weeks reduced its exposure to Thames Water\u2019s mountain of debt by selling hundreds of millions of pounds of debt \u2013 the majority of its holdings \u2013 to fellow investors including Apollo Global Management, Elliott Advisors and Silver Point Capital.<\/p>\n Earlier this month, it emerged that Thames Water may not fully comply with rules on pollution of England\u2019s waterways for as long as 15 years, according to a new plan by creditors who are scrambling to avoid the utility being forced into government administration.<\/p>\n The group of financial institutions, under the new London & Valley Water holding company, has been locked in talks with Ofwat since May over acceptable terms for the hugely complex restructuring of Britain\u2019s biggest water company.<\/p>\n Thames Water has been crippled by huge debts built up over two decades by owners who have been criticised for paying out dividends without investing enough in its leaking pipes and malfunctioning treatment works, leading to repeated sewage spills into Britain\u2019s rivers and seas, and fines from the regulator.<\/p>\n Share<\/a>Ben & Jerry\u2019s owner stopped brand developing flavour for peace in Gaza<\/p>\n The co-founder of Ben & Jerry\u2019s has accused its owner of being part of a movement of \u201ccorporate butt kissing\u201d of Donald Trump<\/a> and says management blocked the ice-cream brand from producing a flavour in support of peace in Gaza.<\/p>\n Ben Cohen told the Guardian that Unilever was pursuing a \u201ccorporate attack on free speech\u201d by blocking the development of a special flavour in solidarity with the Palestinian people. It is understood the flavour had been approved by Ben & Jerry\u2019s independent board and first mooted about a year ago.<\/p>\n Magnum, the group\u2019s ice-cream arm, confirmed it had not gone ahead with the board\u2019s suggestion for a Palestine<\/a> product this summer.<\/p>\n Cohen has mounted a \u201cFree Ben & Jerry\u2019s\u201d campaign<\/a> to persuade Unilever to sell the brand to a group of socially minded investors who he says have pledged to allow it to continue its \u201csocial mission.\u201d<\/p>\n With an increasingly authoritarian Trump in the White House, Cohen says now is the time that \u201ccompanies and anyone who believes in justice, freedom and peace stands up. This is the moment when it is most needed for Ben & Jerry\u2019s to be able to raise its voice.<\/p>\n \u201cIt seems like since Trump got elected anything that Trump is against, DEI, black history, protesters\u2019 rights to free speech, all those things got censored.\u201d<\/p>\n Previous Ben & Jerry\u2019s flavours with an activist bent have included \u201cSave Our Swirled\u201d to highlight the need for action at the 2015 Paris climate meetings, \u201cI Dough, I Dough\u201d to celebrate the legalisation of same-sex marriage at a US federal level, and \u201cHome Sweet Honeycomb\u201d in support of resettling refugees in Europe.<\/p>\n Cohen\u2019s criticisms are the latest blow in the acrimonious spat between the brand\u2019s founders and owners. Unilever is planning to spin off the Magnum Ice Cream Company into a separate business, which it hopes to list in Amsterdam with secondary listings in London and New York.<\/p>\n Those plans were this week delayed because of the US government shutdown, although they could proceed by the end of the year. Unilever said remained confident of implementing its demerger plans this year.<\/p>\n Ben Cohen and Jerry Greenfield, of Ben and Jerry\u2019s Ice Cream, joined actress and political activist Jane Fonda for a climate protest in front of the White House in 2019. Photograph: Sipa US\/AlamyShare<\/a>BT \u2018considering low-cost mobile brand\u2019 as Revolut and Monzo plan launches<\/p>\n BT is reportedly considering the launch of new a low-cost mobile brand, as the telecoms group explores ways to compete with new rivals in the market including the fintech companies <\/a>Revolut<\/a> and <\/a>Monzo<\/a>.<\/a><\/p>\n The group is exploring options to enter the budget market, which could involve creating a new brand in-house or buying an existing virtual network operator, according to the Financial Times.<\/a><\/p>\n The move would mark a strategy shift from the former state-owned company, which now only offers mobile services through its premium EE brand. BT<\/a> owns Plusnet, but decided last year to use the low-cost brand only for its broadband services.<\/p>\n However, it is now looking at how it can stay competitive as new rivals, including from the fintech sector, start taking slices of the UK mobile market as virtual network operators, which piggyback on the existing networks of other mobile services.<\/p>\n Share<\/a><\/p>\n Asked whether higher spending on new drugs will require additional funding for the NHS, Vallance said yes.<\/p>\n We\u2019ve discussed the fact that if there\u2019s a rise in price for innovative medicines, that comes with a cost load and that needs to be met. And I\u2019ve described the percentage change of spend on medicines, and there\u2019s an overall budget question, and that\u2019s really for DHSC [department of health and social care] to to consider, how they\u2019re going to deal with that. But I mean, yes there will be an increased cost. You can\u2019t escape that.<\/p>\n He stressed the importance of \u201cgetting the commercial environment right\u201d or you won\u2019t get medicines launched in the UK.<\/p>\n It\u2019s worth reflecting that if we\u2019re in a situation where companies don\u2019t want to sell their medicines in the UK, that\u2019s not great for anybody.<\/p>\n If you don\u2019t get these things right, the commercial environment right,particularly in the era of comparative pricing going on in the US, then you don\u2019t get medicines launched in the UK, patients suffer. So that\u2019s why we have to get this price point, this ability to be competitive in the commercial arena, right at the same time as doing all the other things we\u2019re doing on the life sciences plan.<\/p>\n Earlier, Sam Roberts, the chief executive of National Institute for Health and Care Excellence (NICE), which assesses which new drugs should be offered on the NHS, said \u201c91% of medicines that NICE looks at we say yes to\u201d.<\/p>\n So where does that put us? 91% puts us at sixth in Europe. So six out of 37 countries, top quarter. We\u2019re not the best. We\u2019re definitely not the worst, and there\u2019s been no deterioration in that over the last five years.<\/p>\n NICE has come under heavy criticism from drugmakers for keeping its cost effectiveness thresholds unchanged in recent decades, and ministers have acknowledged that they should be reviewed.<\/p>\n Roberts defended the thresholds, saying<\/p>\n Society thinks that we should pay more for severe disease than for non severe disease. So we were given some freedoms in 2022 that said we can pay about 20% to 70% more. For rare diseases\u2026 we\u2019re allowed to pay three to 10 times more.<\/p>\n Share<\/a><\/p>\n Updated at\u00a009.55 EDT<\/p>\n Head of Office for Life Sciences says ‘good US deal’ would ‘quickly resolve’ standoff with pharma<\/p>\n Steve Bates, executive chairman of the Office for Life Sciences, said \u201ca good US deal\u201d would \u201cquickly resolve\u201d the issue of a lack of confidence of big pharmaceutical companies such as AstraZeneca and MSD in the UK, and its impact on investment decisions.<\/p>\n Quizzed by MPs on the science committee, Bates, who took up his new job at OLS in September after running the BioIndustry Association for 13 years, said:<\/p>\n So I think a good deal with the USA can quickly resolve it, is the simple answer for that.<\/p>\n I\u2019m saying that if the UK can get a fantastic domestic business environment allied to access to global markets, that\u2019s a fantastic base from which any companies would want to grow for the world.<\/p>\n MSD, known as Merck in the US, AstraZeneca and other big pharma companies have scrapped or paused investments in the UK, while ramping up investments in the US. The UK head of Novartis called Britain \u201clargely uninvestable\u201d as negotiations between the industry and UK government over a new pricing agreement broke down in late August.<\/p>\n Meanwhile, Donald Trump has been putting pressure on drugmakers to invest more in the US, and to cut drug prices, or face trade tariffs.<\/p>\n This means any UK decisions on higher drug pricing and NHS spending are tied to a deal with the US. Varun Chandra, business adviser to Keir Starmer, has been leading negotiations with officials in Washington.<\/p>\n Sir Patrick Vallance, former GSK executive, now science minister. Photograph: Reuters<\/p>\n Science minister Patrick Vallance, a former GSK executive, said in front of the same committee that \u201csome degree of price increase is inevitable in the UK,\u201d referring to higher NHS spending on new medications that the pharma industry has long called for.<\/p>\n I think for brand new, innovative medicines, it\u2019s likely there will be some price increase.<\/p>\n If you go back to 2015 the spend on medicines was about 12% [of total NHS spending] if you go back earlier, it was higher, it was about 14%. It\u2019s now about 9%. So there is a possibility of increasing percentage spend.<\/p>\n Share<\/a><\/p>\n Updated at\u00a007.04 EDT<\/p>\n European shares ease from all-time highs after FTSE 100, Ibex hit new peaks<\/p>\n European shares have eased from all-time highs, after the UK and Spanish stock markets hit new peaks.<\/p>\n The pan-European Stoxx 600 index dipped by 0.35% after its third consecutive record closing high, as traders were cheered by Donald Trump\u2019s optimism over a trade deal with China. He is due to meet Chinese president Xi Jinping in South Korea on Thursday.<\/p>\n A trade truce between the two countries is set to expire on 1 November, which could bring higher US tariffs and Chinese curbs on rare earth exports, unless a deal is struck before then.<\/p>\n The FTSE 100 index rose to a new record high in early trading as did Spain\u2019s Ibex but are now broadly flat.<\/p>\n AJ Bell investment director Russ Mould said:<\/p>\n Results from some of the big names which dominate the US market will likely dictate whether the market can extend its recent momentum into November, as will the Federal Reserve\u2019s latest decision on interest rates tomorrow.<\/p>\n A cut is widely expected but, with most US data releases paused thanks to the shutdown in Washington, the Federal Reserve\u2019s ability to make an informed decision is impaired.<\/p>\n Share<\/a>Reeves confident Gulf trade deal can be done ‘very soon’<\/p>\n Rachel Reeves has expressed confidence that a trade deal with Gulf countries can be done quickly, saying she had \u201creally good\u201d meetings in Riyadh.<\/p>\n \u201cI am really confident we can get that deal over the line,\u201d she said at Saudi Arabia\u2019s flagship investment summit held in the Saudi capital, adding she was hopeful that the agreement could be reached \u201cvery soon\u201d.<\/p>\n The chancellor hopes to deepen the UK\u2019s relationship with a state that has been widely criticised for human rights abuses<\/a>.<\/p>\n Reeves, who is the first UK chancellor to visit the region in six years, wants to use the trip to speak with her counterparts from Bahrain, Kuwait and Qatar to advance a trade deal with the Gulf Cooperation Council (GCC), a six-nation group.<\/p>\n British administrations have sought to reach an agreement with the GCC after Britain left the European Union in 2020.<\/p>\n Reeves is also expected to meet senior Saudi royals, members of Donald Trump\u2019s administration and business figures while in Saudi Arabia.<\/p>\n Last year Saudi Arabia\u2019s Public Investment Fund bought a 15% stake in London\u2019s Heathrow Airport from Spanish construction company Ferrovial, and Britain expects further investment announcements this week.<\/p>\n New state-owned airline Riyadh Air, which ordered 25 partly British-built Airbus A350 aircraft in June, has announced its inaugural flight will be to Heathrow.<\/p>\n Trade minister Chris Bryant told parliament this month that talks with the GCC were at \u201can advanced stage\u201d, despite concerns from trade unions close to the Labour Party about poor rights for workers and other perceived abuses in the region.<\/p>\n The Treasury estimates a Gulf trade deal would add \u00a31.6bn a year to UK economic output – equivalent to about 0.06% of annual gross domestic product.<\/p>\n The Treasury said on Sunday that Reeves would be \u201chonest over areas of divergence and cultural differences\u201d during her conversations with her Gulf counterparts.<\/p>\n Share<\/a><\/p>\n Updated at\u00a006.19 EDT<\/p>\n Reeves faces \u00a320bn-plus hit from UK productivity cut<\/p>\n Here\u2019s our full story: Rachel Reeves will have to account for a bigger-than-expected \u00a320bn hit to the public finances in next month\u2019s budget, the Guardian understands, as the Treasury\u2019s forecaster prepares to cut predictions for UK productivity.<\/p>\n The Office for Budget Responsibility<\/a> (OBR) is planning to cut its trend productivity growth prediction by 0.3 percentage points, in a move that increases the likelihood of the chancellor announcing tax rises on 26 November.<\/p>\n Reeves told the Fortune Forum in Saudi Arabia on Monday:<\/p>\n Our independent forecaster is likely to downgrade the forecast for productivity in the UK based not on anything this government has done, but on our past productivity numbers, which, to be honest, since the financial crisis and Brexit have been very poor, and that just shows how essential growth is.<\/p>\n So I\u2019m not going to do anything in the budget that reduces our opportunities to grow the economy. That\u2019s very important.<\/p>\n The estimated impact is based on calculations by the Institute for Fiscal Studies (IFS) thinktank, first reported in the Financial Times, which has said that each 0.1-percentage-point downgrade to productivity would increase public sector net borrowing by \u00a37bn in 2029-30. That suggests that a 0.3-point reduction could result in a \u00a321bn hit to the public finances.<\/p>\n Some analysts had been forecasting a 0.1 to 0.2-point downgrade in the OBR\u2019s productivity outlook, resulting in smaller hit to the public finances of between \u00a37bn and \u00a314bn, based on IFS calculations. This would result in a total fiscal hole of \u00a320bn to \u00a330bn, according to some estimates.<\/p>\n A larger downgrade to productivity by the OBR would increase that shortfall. However, the final number could be offset by other factors including lower borrowing costs and faster-than-expected growth.<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.50 EDT<\/p>\n Britain\u2019s second-biggest drugmaker GSK has struck another deal to bolster its pipeline of medicines, a day before announcing its quarterly results, the last presented by outgoing chief executive Emma Walmsley.<\/p>\n The company has acquired a treatment for COPD, a severe lung disease, that is in early clinical studies, from the Californian biotech Empirico.<\/p>\n GSK said the drug\u2019s novel mechanism of action, discovered by Empirico, targets a distinct inflammatory pathway introducing the potential for a therapeutic approach that is agnostic of baseline type 2 inflammation, smoking or co-morbid disease. The target is backed by extensive genetic data.<\/p>\n Kaivan Khavandi, global head of respiratory, immunology & inflammation research & development at GSK, said:<\/p>\n This agreement reflects our ambition to transform care in COPD by advancing novel targets, backed by data, to address underlying drivers of disease. With its expected long-acting characteristics and ability to target distinct inflammatory pathways, EMP-012 complements our pipeline of diverse modalities in COPD and builds on the current landscape of inhaled and biologic therapeutics in this area of substantial unmet need.<\/p>\n GSK will pay $85m upfront and up to $660m in success-based development, regulatory and commercial milestones, as well as tiered royalties on sales worldwide.<\/p>\n Yesterday, GSK<\/a> <\/a>struck a deal for a prostate cancer medication<\/a> from a French biotech firm.<\/p>\n Separately, the pharma firm\u2019s treatment for small-cell lung cancer has received orphan drug designation in the EU, as it addresses a significant unmet need for an aggressive form of lung cancer with poor outcomes and limited treatment options, GSK said. The status, awarded to medicines for rare conditions, means the drug can benefit from incentives such as protection from competition once on the market.<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.36 EDT<\/p>\n Shrinkflation hits everyday staples, piling more pressure on households<\/p>\n Toothpaste, coffee and even heartburn medicine are among the latest products quietly shrinking in size while shoppers pay the same price, piling more pressure on household grocery budgets.<\/p>\n Consumer watchdog Which? found a range of new examples of shrinkflation as brands cut back on quantity and quality in an effort to reduce their own costs.<\/p>\n One of the worst instances was Aquafresh complete care original toothpaste, which went from \u00a31.30 for 100ml to \u00a32 for 75ml at Tesco, Sainsbury\u2019s and Ocado \u2013 a 105% increase per 100ml.<\/p>\n Haleon Great Britain and Ireland, which was spun off from GSK three years ago and owns the Aquafresh brand, told the Guardian:<\/p>\n We understand that people across the UK are facing pressure on their finances. Prices go up and down for a variety of reasons, and we always work hard for people to receive the highest quality products at the lowest price so that the whole family can take care of their teeth.<\/p>\n Gaviscon heartburn and indigestion liquid shrank from 600ml to 500ml, with Sainsbury\u2019s keeping the price at \u00a314 \u2013 equivalent to a 20% increase per 100ml. They did not respond to a request for comment.<\/p>\n Nescaf\u00e9 original instant coffee was cut from 200g to 190g at Tesco, Morrisons and Asda \u2013 about a 5% rise per 100g. A Nestl\u00e9 spokesperson said:<\/p>\n Like every manufacturer, we have seen significant increases in the cost of coffee, making it much more expensive to manufacture our products \u2026 Retail pricing is always at the discretion of individual retailers.<\/p>\n Chocolate has also been hit by rising cocoa prices<\/a>, with Quality Street tubs reduced from 600g to 550g and prices at Morrisons increasing from \u00a36 to \u00a37 \u2013 a 27% rise per 100g. Club and Penguin biscuits, both made by McVitie\u2019s, can no longer be described as chocolate biscuits<\/a>, as they now contain more palm oil and shea oil than cocoa, a change first reported by trade journal The Grocer.<\/p>\n Share<\/a>TUC warns 2m workers at risk from unfair dismissal if six-month qualifying period introduced<\/p>\n The TUC has warned that more than 2 million workers would be denied protection from unfair dismissal if a six-month qualifying period was implemented before those rights kick in.<\/p>\n The employment rights bill is designed to ensure workers are protected from being sacked unfairly from day one in the job. It will also ban exploitative zero-hours contracts by giving workers a right to a contract which reflects their regular hours.<\/p>\n But it is being delayed by a series of amendments by Tory and Lib Dem peers, including one that would provide a loophole for workers to be denied a guaranteed hours contract and another that would introduce a qualifying period of 6 months for protection from unfair sackings.<\/p>\n TUC general secretary Paul Nowak said Lords blocking the Bill should \u201cstep aside\u201d so government can deliver its flagship workers\u2019 rights bill that will improve the lives of millions of workers \u2013 a key manifesto commitment at the last election.<\/p>\n The TUC warns some in the business community \u2013 and on the opposition benches – are \u201cwillfully misrepresenting\u201d the policy, and says employers can still have probation periods for staff, but they just won\u2019t be able to sack staff unfairly.<\/p>\n Share<\/a>UK\u2019s Eastern Airways to go into administration, with all flights cancelled<\/p>\n The UK domestic airline Eastern Airways has suspended operations and all of its flights have been cancelled, as it teetered on the brink administration, putting jobs at risk. The move affects hundreds of thousands of passengers.<\/p>\n Customers of the airline, which operated regional services from airports across the UK, are urged not to go to the airport as flights will not be operating, the UK Civil Aviation Authority said.<\/p>\n The airline served different destinations in England and Scotland, including Aberdeen, Humberside, Gatwick, Newquay, Teesside International and Wick John O\u2019Groats, according to its website.<\/p>\n On Monday morning the company filed a notice of intention to appoint an administrator at the insolvency and companies court within the high court.<\/p>\n Selina Chadha, consumer and markets director at the UK Civil Aviation Authority, said:<\/p>\n We urge passengers planning to fly with this airline not to go to the airport as all Eastern Airways flights are cancelled.<\/p>\n Eastern Airways customers should visit the Civil Aviation Authority\u2019s website<\/a> for the latest information.<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.27 EDT<\/p>\n HSBC profits fall 14% amid hit from Hong Kong property downturn and Madoff provision Here\u2019s more on HSBC<\/a>.<\/p>\n HSBC has reported a 14% drop in third quarter profits to $7.3bn (\u00a35.5bn), as it took a dual hit from both a real estate downturn in Hong Kong, and a lawsuit over the Bernard Madoff ponzi scheme. <\/p>\n It came as the London-based bank reported a 24% jump in operating costs to $10.1bn, which included restructuring costs – severance for bankers let go as part of the process – linked to a major shake-up under chief executive Georges Elhedery announced last year. <\/p>\n But those operating costs also reflected a $1.1bn provision to cover a lawsuit by investors who lost money in the Madoff ponzi scheme. It comes after a Luxembourg court turned down HSBC\u2019s appeal. <\/p>\n Madoff admitted in 2009 to defrauding thousands of investors, losing them $65bn (\u00a348.8bn). He died in prison in 2021. HSBC has been battling a 2009 lawsuit against its Luxembourg arm, with investors trying to recoup losses from the fraud. HSBC said it plans to file a further appeal with the Luxembourg Court of Appeal and, if that fails, it will dispute the final amount in later proceedings.<\/p>\n HSBC also put aside another $1bn to deal with the ripple effects of China and Hong Kong\u2019s real estate downturn, which has hit the banking sector, with a rise in bad debts linked to the crash in property prices.<\/p>\n Chief executive Georges Elhedery said:<\/p>\n We are becoming a simple, more agile, focused bank, built on our core strengths. The intent with which we are executing our strategy is reflected in our performance this quarter, despite taking legal provisions related to historical matters.<\/p>\n He added:<\/p>\n We remain fully focused on helping our customers navigate new economic realities, putting their changing needs at the heart of everything we do.<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.51 EDT<\/p>\n Introduction: UK reportedly faces more than \u00a320bn hit from steeper productivity downgrade, fuelling tax rise speculation<\/p>\n Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n The chancellor faces a bigger-than-expected hit to the public finances of around \u00a320bn, because of poor productivity in the UK economy.<\/p>\n The Office for Budget Responsibility (OBR), the government\u2019s official forecaster, is expected to cut its trend productivity growth prediction by 0.3 percentage points, the Financial Times reported<\/a>. It is expected to deliver its forecasts to Rachel Reeves on Friday, and they will be published on budget day on 26 November.<\/p>\n The Institute for Fiscal Studies think-tank has said that each 0.1 percentage point downgrade to productivity would increase public sector net borrowing by \u00a37bn in 2029-30, so a 0.3 point reduction could create a \u00a321bn hit.<\/p>\n Analysts have been expecting a smaller downgrade to productivity that would result in a \u00a37bn to \u00a314bn fiscal hit under the IFS calculation.<\/p>\n This would result in a total fiscal hole of \u00a320bn to \u00a330bn according to analysts\u2019 estimates. A larger-than-expected productivity downgrade would increase the size of that hole, but the final number could be offset by other factors.<\/p>\n A bigger hit from worse productivity would make Rachel Reeves\u2019 job much harder. She hinted at the downgrade on Monday, saying productivity was \u201cpoor\u201d and blamed the financial crisis and Brexit. Speaking to business leaders in Saudi Arabia, she said:<\/p>\n Our independent forecaster is likely to downgrade the forecast for productivity in the UK, based not on anything this government has done but on our past productivity numbers, which, to be honest, since the financial crisis and Brexit, have been very poor.<\/p>\n Poor productivity has long been a problem for the UK economy, to be fair.<\/p>\n The mooted downgrade will increase expectations that the chancellor will be forced to breach Labour\u2019s election manifesto pledge on tax, with speculation around an income tax hike in the budget.<\/p>\n![\"Lauren](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/1761663617_573_Lauren_Almeida.png\")
Lauren Almeida<\/p>\n![\"Kalyeena](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/1761663617_340_Kalyeena_Makortoff,_L.png\")
Kalyeena Makortoff<\/p>\n