Latest Developments

Europe
BBC Business

'It could cost me £10k but I need the money now': Why Gen Z are opting out of pensions

Until early September, Hassan Nassar, 26, was saving around £430 every month into his NHS workplace pension. But the trainee GP, who works in the West Midlands, says he was "really cash strapped" and decided to stop putting money aside for around "six to 12 months". He needs the money to help take care of a sick family member, save for his first home and cover rent and student loan repayments. But he's aware there is a cost to opting out, estimating he could lose between "£5,000 and £10,000" in future retirement income due to the decades of compound interest he will miss out on by not saving now. "People will say, you're silly, look at what you'll be missing out in the future," he tells the BBC. "But I need to look at what I'd be losing now if I didn't opt out." All employees will be automatically enrolled, external in a workplace pension if they are aged 22 or above and earn over £10,000, although there are exceptions. A percentage is taken directly from the worker's pay - usually around 5% - with tax relief added on top, and the employer must also pay a minimum contribution on top. But a growing number of Gen Z and millennials are opting out of these schemes due to cost-of-living pressures and the government has warned they could be on track for lower private pension incomes than people retiring today. That is a problem, because while most people in the UK will eventually get a state pension, it only provides a minimum level of retirement income and many will rely on a private pension to supplement it. Image source, Guido Mieth via Getty ImagesHassan says he was paying 10.7% of his gross earnings each month into his workplace pension, while the NHS contributed a substantial amount on top. But unlike some employers, the NHS doesn't allow staff to reduce their contributions when times are hard. Overall, however, he is confident he will have enough to retire on at the end of his "30-40" year career and is determined to opt back in to his pension as soon as he can.

'It could cost me £10k but I need the money now': Why Gen Z are opting out of pensions
Europe
BBC Business

The wealthy Cuban Americans ready and waiting for Havana to fall

At the lavish home of one of Miami's top plastic surgeons, overlooking the Biscayne Bay, some of the wealthiest Cuban-American families in Florida have gathered. They are there to thrash out their vision of Cuba's future at the fourth meeting of the newly created Cuban-American National Chamber of Commerce (CANCC). Rum in hand and Rolexes on wrists, this is Miami's old money. People with well-recognised Cuban-American surnames – like Bacardi and Babun – chat around the pool about the lamentable state of the island's economy, and share titbits of gossip about the latest political rumblings. "The intention of this evening is to gather under one roof the most prominent Cuban-American entrepreneurs in Miami-Dade County," says CANCC president Juan Omar Sixto, "and the objective is to be in Cuba once the regime falls". This influential community of Cuban exiles has detested the Communist-run government ever since the late revolutionary leader Fidel Castro expropriated their lands and nationalised their families' companies after taking power in 1959. And they have wielded their political and economic clout in Florida over the years to shape Washington's policies towards their homeland. Sixto fled the island as a teenager. Now a real estate developer in his early 80s, his organisation is drafting plans for what he calls "the day after" in Cuba. The CANCC has created a proposal for a Cuban Stock Exchange and formed committees on everything from energy infrastructure to food security. Countless documents and logistical plans have been drawn up by interest groups over the decades, some of them more sober and measured than others. The difference now, insists Sixto, is the Trump administration's push to force total change on the island. And he says they have the ear of some high-profile contacts including people close to the Secretary of State, Marco Rubio. "Together with deliveries of humanitarian aid and medical supplies, we'd go and do business in Cuba right away," says Sixto. In the face of Washington's "maximum pressure" campaign on Cuba, the island's leadership recently announced 176 economic liberalisation measures. The Cuban President, Miguel Díaz-Canel, said they were "to advance the defence of socialism, to support and widen social justice".

The wealthy Cuban Americans ready and waiting for Havana to fall
North America
CNBC Economy

China saw 'surprise' jump in U.S. orders ahead of Trump-Xi summit, private survey shows

American businesses ramped up orders for Chinese goods in the weeks leading up to the high-stakes summit this week, as companies positioned for continued stability between the world's two largest economies. The jump in orders was a "surprise," with shipments to the U.S. rising on both a yearly and monthly basis "as China's relative tariff position improved," according to China Beige Book, a New York-based research firm that surveyed 1,295 Chinese companies between Sept. 1-22. The gauge measuring orders from the U.S. — calculated as the proportion of surveyed firms reporting an increase minus the share reporting a decrease — jumped to 13 in September, from negative-12 a year earlier and 3 in August, according to the report. Even so, overall Chinese domestic and export orders remained below their levels a year earlier, and new orders weakened from August, the report showed. The upswing in U.S.-bound orders came as businesses positioned for a friendlier outcome at the summit between President Donald Trump and Chinese leader Xi Jinping, who is in Washington this week for his first state visit in more than a decade. The two countries agreed to extend by two months to January a trade truce that keeps tariffs lower, suspends restrictive controls on rare earth exports and holds off higher port fees on ships. The U.S. also reportedly planned to delay a threatened round of tariffs tied to industrial overcapacity until at least after this week's summit, easing near-term pressure on Chinese exporters. The effective U.S. tariff rate on Chinese goods of around 23% remains well above the average levy the U.S. imposes on other major trading partners, according to Barclays. The export order figures align with recent official data that showed China's ports saw their busiest week on record in the run-up to the summit, another sign that trade flows were recovering amid hopes for a further thaw in bilateral relations. Following the truce extension, Eurasia Group raised its odds of continued stability in the bilateral relationship to the highest level since Trump returned to office. The shorter-than-expected extension of the truce is also unlikely to reignite tensions, the consultancy firm said. "Neither government has an interest in renewed escalation," said Dan Wang, China director at Eurasia Group, who expects both sides to press each other for near-term commitments to maintain the fragile stability. Washington is likely to seek further progress on expedited Chinese approval of rare-earth export licenses for U.S. end users, as well as increased purchases of U.S. agricultural goods, Wang said, and in return, Beijing would expect the White House to maintain its current pause on arms sales to Taiwan.

China saw 'surprise' jump in U.S. orders ahead of Trump-Xi summit, private survey shows
Europe
BBC Business

UK tries to stop Trump's diesel export ban

The UK is in talks with US authorities over a potential stoppage of diesel exports and has started preparing for a ban, Chancellor John Healey has told BBC News. Diesel prices in the UK reached a new high on Monday due to supply pressures springing from the US-Israel conflict with Iran and Russia's war with Ukraine. Fuel prices are rising globally and US President Donald Trump has threatened to ban diesel exports, stating at the weekend: "We're thinking about it very seriously." Healey, who admitted that UK diesel prices are "extreme", said the government was in discussions with the US, adding: "We're also making the provision that we may need to and we have our own stocks in the UK." Speaking on the sidelines of the annual Labour Party Conference in Liverpool, Healey said: "We work very closely with the Americans. "In the end, we're also working with the Americans where we can try and put in place what will solve this, or at least significantly ease it, which would be a diplomatic settlement [and] an end to the fighting with Iran." The UK depends on the US for around a third of its diesel imports and a ban would send prices even higher. US sources suggest that Trump is considering a ban to attempt to bring down prices for domestic consumers ahead of the critical midterm elections. In the UK, the average price for a litre of diesel reached 199.33p on Monday, according to the RAC motoring organisation, surpassing a previous high of 199.09p in June 2022 after Russia launched its full-scale invasion of Ukraine. Over the past seven months, the Iran war has severely disrupted the production and transportation of wholesale oil across the region, causing the price of fuels made from oil to surge. The RAC said diesel prices had entered "uncharted territory" and served as a reminder of "just how exposed the UK is to events occurring far away". Healey said he was "very aware" of these cost of living pressures as he prepared what he called a "breathing space" Budget on 28 October.

UK tries to stop Trump's diesel export ban
Europe
The Guardian

US borrowing costs hit 24-year high as global bond sell-off intensifies

Traders on the floor of the New York Stock Exchange. Photograph: Sarah Yenesel/EPAView image in fullscreenTraders on the floor of the New York Stock Exchange. Photograph: Sarah Yenesel/EPAGovernment borrowingUS borrowing costs hit 24-year high as global bond sell-off intensifiesFears that US deficit is unsustainable also drive UK 30-year bond yields briefly above 6% for first time since 1998 The global bond sell-off intensified on Thursday, driving 10-year US government borrowing costs to their highest level in 24 years in a frantic day’s trading. The threat of a renewed round of inflation from the persistently high cost of oil has spooked investors on both sides of the Atlantic, with central banks expected to raise interest rates in the coming months to prevent price increases from becoming embedded. The sell-off drove the yield, or interest rate, on 10-year US Treasuries to 5.34% – the highest level since 2002. In the UK, where surging borrowing costs are increasing the pressure on the chancellor, John Healey, before his first budget later this month, the yield on 30-year bonds hit 6% for the first time since 1998, before easing slightly later in the day. Yields on five- and 10-year UK bonds were also up. Stock market investors sold heavily too, knocking almost 1.7% off the FTSE 100 in London – its worst daily fall since May. Bourses in other parts of Europe were also hit, with Germany’s DAX falling 1% and France’s CAC 40 losing 1.6%. “There is carnage in the bond market, which is hitting stocks hard,” said Neil Wilson, the investor strategist at Saxo UK. “It looks like the relentless rout in the bond market is sending investors running for cover.” The bond sell-off around the world is being driven by fears of high inflation, as the Middle East conflict continues to restrict oil supplies from the region. US bonds weakened despite inflation data on Wednesday coming in lower than forecast, which was expected to calm investors’ nerves about the prospect of further increases in the cost of borrowing by the US Federal Reserve. Traders remain anxious that the Fed will continue to raise interest rates to fight inflation, mainly in response to the strength of the US economy and the prospect of workers bidding up their wages. Mohit Kumar, an economist at Jefferies, said there was growing concern at the amount of debt being issued to fund government deficits, as well as inflation concerns. “Inflation, deficit and issuance concerns continue to weigh on the bond market,” he said.

US borrowing costs hit 24-year high as global bond sell-off intensifies
North America
CNBC Finance

Boeing 737 Max 10 certification delayed by software issue, FAA says

The head of the Federal Aviation Administration said a software problem will delay its certification of the Boeing 737 Max 10 as the agency assesses whether it poses a safety issue, a potential setback for the manufacturer as it seeks to complete government approval of its best-selling family of aircraft. Boeing had expected to receive a green light from its regulator on the years-delayed planes "very soon," CEO Kelly Ortberg told investors earlier this month. But Boeing said Saturday that last month it flagged a software glitch on some 737 Max aircraft that could affect certain landing procedures. "We haven't concluded whether this is a safety-of-flight issue or not, but we will be delaying the 10 ... until we're satisfied that we don't have an issue here," FAA Administrator Bryan Bedford said at a press conference on air traffic modernization in Washington, D.C., on Monday. The FAA said in a statement that "safety dictates the certification timeline." It added that the agency was "following our safety review process to investigate this software glitch and won't hesitate to take action if needed." Boeing shares extended earlier losses after Bedford's comments, shedding nearly 7% Monday, as investors assessed another delay after years of setbacks for the aircraft. "We continue to follow the lead of the FAA as we work through the certification process," Boeing said in a statement. Boeing said over the weekend that the issue could occur with a vertical navigation system after an aircraft misses an approach and has to go around and line up to land again, such as in situations when there is an obstruction on the runway, for example. Both the company and Bedford said pilots are trained for those circumstances. "The pilots remain in control of the airliner, train for these scenarios," Bedford said Monday. "The issue that we're looking at right now is the workload component." The FAA certified the Max 7, the smallest of the family, last month. Those planes have the most updated version of the software, which the FAA is evaluating. It isn't clear how that could affect deliveries of those planes to customers like Southwest Airlines. U.S. airlines said they don't have any Max aircraft with the issue, in part because they are allowed to revert to older software on those models, if needed, not the newer version that has the potential issue. Bedford said Boeing had fixed a previous bug in the system but "unexpectedly ... introduced a new bug." Boeing has been trying to move on from years of safety crises, including two crashes of the Max 8 in 2018 and 2019. A flight control system was implicated in those crashes.

Boeing 737 Max 10 certification delayed by software issue, FAA says
North America
CNBC Economy

China posts weakest industrial profit growth this year, expanding 4.2% in August

China's industrial profits grew 4.2% in August from a year earlier, official data released Monday showed, as manufacturers grapple with persistent weakness in consumer demand and a sustained rise in energy costs. For the first eight months of this year, profits at large industrial firms climbed 15.7%, easing from a 17.6% rise in the January-July period. That would mark the fourth straight month of deceleration from the 24.7% pace set in April. While growth has been slowing, industrial earnings have staged a notable reversal this year, swinging from a barely-positive 0.6% gain for all of 2025 — the first increase after three straight years of declines — to double-digit growth. That expansion has been led by the artificial-intelligence-fueled boom in chips and computing equipment and has coincided with the end of nearly three years of factory-gate deflation. Profits at the computer, communication and electronic equipment manufacturing industry more than doubled for the January-to-August period, rising 110% from a year earlier. The automobile manufacturing industry, however, saw profits drop by 16% during the same period as the sector sees cut-throat competition. Dragged by tepid consumer demand, growth in the world's second-largest economy softened to its slowest pace in more than three years in the second quarter. The official purchasing managers' index indicated that manufacturing activity contracted for two consecutive months in July and August. Retail sales slowed further, and the urban investment slump deepened in August, while industrial output rebounded on the back of exports. Economists expect Beijing to lean harder on stimulus to stabilize corporate profitability, as consolidation accelerates in sectors already facing sluggish demand, fierce competition and cutthroat price wars. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

China posts weakest industrial profit growth this year, expanding 4.2% in August
North America
CNBC Finance

Ex-Disney CEO Bob Chapek says he raised concerns with the board 'weekly' during Iger power battle

Former Disney CEO Bob Chapek said Monday he voiced concerns about then-Executive Chairman Bob Iger to the company's board "weekly" during his brief tenure as head of the House of Mouse. Chapek has remained tight-lipped about his firing from the media giant nearly four years ago, but opened up about his experience in a new tell-all memoir, "Behind the Castle Walls: My Thirty Years at the Happiest Place on Earth," and in an interview with CNBC's "Squawk Box." Once head of Disney's theme park and experiences division, Chapek was tapped to take the helm of the company just weeks before the Covid pandemic shuttered movie theaters and amusement parks around the globe in 2020. As Chapek worked to navigate these challenges, Iger remained with the company to handle Disney's content initiatives like Disney+. However, Iger slowly began to reassert control, Chapek says. The ensuing power struggle was detailed in a CNBC report in 2023. "When I started hearing about lunches that he had and dinners that he had where he was absolutely trashing me, and I'd hear it two, three times in the same week, the same bullet points, the same talking points, I was like, 'I've got a problem,'" Chapek told CNBC. He noted that when he brought concerns to the Disney board about Iger, he was told, "'He'll be gone in two years. It's OK. That's Bob being Bob.'" But almost three years after being named CEO, Chapek was ousted and replaced by Iger, who returned to the post until March 2026. "It would have been great if, like other CEOs, he acted as a steward of my new role," Chapek said. "It would have been one thing if he was neutral, but to be actually working against me, actively, I thought was just unbelievable." Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Ex-Disney CEO Bob Chapek says he raised concerns with the board 'weekly' during Iger power battle
Asia
The Hindu BusinessLine

Ex-Flipkart Executives press Walmart to buy out their stock options

A group of former Flipkart executives is urging parent Walmart Inc. to buy out their stock options, seeking to cash in while the US retailer weighs options including a separate listing for the India e-commerce operator. With no visibility regarding the timing of any Flipkart initial public offering, the group of eight former C-suite and senior executives said a purchase of their shares by Walmart would allow them to liquidate their holdings. The former executives appealed to Walmart’s board in a letter seen by Bloomberg News and earlier reported by the Economic Times. Flipkart, the e-commerce leader in India, has been preparing for a stock market debut for some years, including by shifting its incorporation to India from Singapore this year and planning to start the process for banks to pitch for its IPO. Yet those plans have since been deferred with no clear timeline for a listing, according to people familiar with the matter. “Many of us joined the company during its earlier, more uncertain years, when the future value of these options was far from certain. We accepted the risk and opportunity associated with equity compensation and continued to hold our interests long after leaving the organisation,” the former executives said in the letter. “We therefore request that Walmart gives a complete exit opportunity to all eligible former employees holding vested options.” The ex-employees said they’ve held the stock options for as many as 15 years in some cases. Current Flipkart employees were offered the opportunity this year to sell stock options, the group said. Flipkart was founded in Bangalore in 2007 by two former Amazon.com Inc. engineers, Sachin Bansal and Binny Bansal (who are not related). Just like Amazon, they began by selling books online before expanding to more expensive products such as electronics and smartphones. In 2018, Walmart acquired a controlling stake in the company for $16 billion — its biggest-ever deal, bringing its high-stakes battle for online retail supremacy with Amazon to India. Sachin sold off his entire stake to Walmart and left. Binny too exited within months, and sold off his remaining shares by 2023. Flipkart has said that its priority is to serve customers, and that an IPO is a target for the company. “An IPO remains an active part of our strategic roadmap, and we will move forward when the timing is right,” Flipkart and Walmart said in a joint statement last month. “By focusing on readiness today, we can ensure that when we are ready to make our public debut, we do so from a position of clear operational and financial strength.” Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Ex-Flipkart Executives press Walmart to buy out their stock options