# data[].attributes.attachment_link.title
Trump’s 25% tariffs on US car imports could threaten 25,000 UK jobs

# data[].attributes.attachment_link.description
The Institute for Public Policy Research said the President’s levies on UK-made cars entering the US would put ‘extreme pressure’ on Britain’s car makers’.

# data[].attributes.attachment_link.readable_text
From buyers to dealers, the effects of the tariffs will be widespread, for better or for worse, experts say.

In the US, there are 908 motor vehicles per 1,000 people. About 92% of households own a vehicle.

Car ownership is typically higher in the US than in Europe, surveys suggest, partly because, in the absence of extensive public transport, many Americans have no other choice of how to get around.

Cars are also more than just a means of transportation. As symbols of both freedom and success, cars have a unique place in the national identity, from the show Pimp My Ride to Janice Joplin singing "Oh Lord, won't you buy me a Mercedes Benz".

John Heitmann, a University of Dayton professor and automobile historian, who in his free time likes to polish his 1982 Mercedes SL, said that tariffs will have an existential, as well as an economic, impact.

"New cars are really out of the reach of a good number of Americans to begin with," he told the BBC.

"Consumers will not benefit, prices will go up," particularly amongst more affordable vehicles made in Korea, like Hyundais, he said.

As a vintage-car enthusiast, he said tariffs have added a layer of uncertainty to his hobby.

"About 50 minutes ago, I got an email from a part supplier in the UK saying, 'Don't worry... they're not going to go up, probably'," he said.

"'We haven't seen anything in writing yet.' That's what they said."

Higher-end imported vehicles, such as Audis, BMWs and Mercedes, will increase in price, too, Prof Heitmann said, though many of those who buy from such brands might be able to absorb a heftier price tag.

# data[].attributes.attachment_link.title
US car buyers against Donald Trump's automotive tariff deadline

# data[].attributes.attachment_link.description
"The prices in the wholesale market have skyrocketed already and it's going to get worse," one car seller tells the BBC.

# data[].attributes.attachment_link.title
What are tariffs, which countries is Trump targeting and will prices rise?

# data[].attributes.attachment_link.description
The cost of cars, fruit and pharmaceuticals could increase because of Trump’s tariff announcement.

# data[].attributes.attachment_link.title
The electric shock behind Europe’s stuttering EV future - and how China has leapfrogged major car-exporting nations

# data[].attributes.attachment_link.description
Sky’s Ed Conway explains how the rest of the world was caught napping in the electric vehicle race, which means our car prices and auto industry jobs are within China’s grip.

# data[].attributes.attachment_link.title
Swiftonomics: The Economic Influence of Taylor Swift

# data[].attributes.attachment_link.description
The musician’s Eras Tour grossed over $1 billion and counting. This guide explains the meaning of Swiftonomics and uncovers Taylor Swift’s economic impact on economies in the U.S. and abroad.

# data[].attributes.attachment_link.readable_text
"Workers united, will never be defeated!" a man shouts into a loud hailer. He is part of a crowd marching through the streets of Manchester in a May Day parade, organised by some of Britain's biggest trade unions.

The sun is shining and there's a festival atmosphere, as his fellow marchers hold aloft placards about workers' rights and fair pay.

Among the marchers is Jason Wyatt, a steelworker from South Wales. He is here to shine a spotlight on what's happening in his hometown of Port Talbot, where several thousand of his colleagues are facing redundancy.

There's applause as Jason takes to the stage.

"They are trying to destroy the livelihoods of 2,800 people," he says. "Port Talbot is the last bastion of heavy industry in South Wales. We have to fight."

There has been a steelworks in Port Talbot, which sits on the south coast of Wales, for 125 years.

These days the large, sprawling site is owned by Tata Steel, an Indian company which employs around half of its 8,000 workforce in Port Talbot.

The local economy is heavily reliant on the manufacturing sector, which provides approximately a fifth of jobs in the area, according to Welsh government figures.

But the British steel industry has struggled to remain competitive in a fierce global market, and that means uncertain futures for communities like Port Talbot.

In 2019, the UK produced seven million tonnes of steel, behind seven EU nations - including Germany's 40 million tonnes. Meanwhile, China produced 996 million tonnes.

Steelworks also cost huge amounts to run because they use massive amounts of energy.

The Port Talbot plant has, by far, the biggest bill and uses as much electricity, for example, as the whole of the city of Swansea a few miles along the motorway.

The sums do not add up, says Tata Steel. It claims its UK business loses £1m a day.

The other huge issue facing the company, and its Port Talbot plant, is how polluting it is. The steelworks is the single biggest emitter of greenhouse gases in Britain.

And Tata thinks that by moving away from its existing coal-powered blast furnace to a greener way of making steel - using scrap metal as fuel - it could reduce the UK's entire carbon emissions by around 1.5 per cent.

The UK government has agreed to pay Tata £500m towards the building of a new electric arc furnace.

But to do that, Tata says it needs to shut down the two remaining blast furnaces, resulting in the loss of 2,800 jobs.

The drive to go green is costing jobs in Port Talbot. And that's a dilemma that companies across the UK - and around the world - are facing.

"Tata are asking people to save the business with a forfeit in their jobs. It's awful," says Jason, who has worked at the Port Talbot plant for 25 years.

It is estimated that around 1.3 million workers in carbon-intensive so-called "brown" jobs will need to adapt to cleaner technologies and processes, according to the Resolution Foundation think tank.

But the numbers on the cost of going green are disputed.

The TUC estimates that 800,000 manufacturing and supply chain jobs could be axed without support from the government.

While the Climate Change Committee, an independent body set up by the government in 2008, says anywhere between 8,000 and 75,000 jobs could go in the transition.

The government says the UK is the first major economy to halve its emissions - and is leading the way in the transformation of the energy industry, with over 80,000 green jobs currently supported or in the pipeline since 2020.

"Much of the transferable expertise from industries such as steelworks and oil and gas will be crucial for the transition to net zero," a government spokesperson said.

"And our Green Jobs Plan will ensure we have the sufficient skills to tackle emerging and future workforce demands across the economy."

Inside the plant, it's hot and the smell of sulphur hangs in the air, a by-product of the manufacturing process. Peter Quinn is leading Tata's move to green steel.

He says the idea that its arc furnace could be up and running in four years is still "approximate" and that consultations with stakeholders, including the workers, would need to be completed first.

The unions and local politicians have called on Tata to keep one blast furnace operational while the new one is built. But Tata says that is not cost-effective.

Quinn says the only other option is abandoning steelmaking in Port Talbot altogether.

Jason thinks Tata should opt for a more gradual transition that would avoid the need to make redundancies.

"We're not opposing the green steel agenda," he says. "What we're opposing is the way in which we're transitioning."

This shift is already impacting his family. His son, Tyler, is 19 and had hoped to apply for an apprenticeship at Tata.

"I'm at a point in my life where I need to start securing my future, buy a house and settle somewhere," says Tyler. "But it's too risky now to think that there are opportunities [at Tata] for me."

As Jason and his family take a windswept walk on the town's beach with their dogs, their gaze is drawn towards the harbour where the cranes used to unload iron ore from around the world, dominate the view.

But out to sea, hope could be on the horizon. There are plans for a huge wind farm in the Celtic Sea with enough wind turbines to power four million homes.

And Tata hopes it can make the football pitch-sized platforms that the turbines will sit on.

But this potential new chapter in the story of Britain's journey to a greener economy still seems too far away for the steelworkers.

Ashley Curnow, a divisional manager for Associated British Ports in Wales, hopes the towns along the shore like Port Talbot will benefit from the new development.

"I understand there's an immense amount of worry at the moment throughout the community, and I think our role in this project is to deliver the project, as soon as we can and bring those job opportunities forward."

At home, Jason and his family reflect on what the future might hold.

His wife, Stacey, thinks Tata is treating its workers unfairly.

"I think it's wrong what Tata Steel are doing to their workers. They don't really care about how it's going to affect people and their families."

"It's a hard time for all of us," Jason adds. "We've got to fight to protect our livelihoods".

# data[].attributes.attachment_link.title
'We've got to fight for our livelihoods': Port Talbot's uncertain future as the cost of going green hits home

# data[].attributes.attachment_link.description
The local economy is heavily reliant on the manufacturing sector, but the British steel industry has struggled to remain competitive in a fierce global market - and that means uncertain futures for communities like Port Talbot.

# data[].attributes.attachment_link.readable_text
Wall Street titan Jamie Dimon, the boss of JP Morgan, said the "booming" US economy was "unbelievable", with the average consumer "much wealthier than before".

The state of Georgia is one of the big beneficiaries of this spending spree. It is part of the so-called Battery Belt, an area of land largely across the south east where factories for electric car batteries and related components are springing up.

Covington is best known as the small town where the Vampire Diaries was filmed, but it is now the site of a factory for Archer Aviation, which will be completed this year. It plans to mass-produce what it describes as flying cars, though the model I saw looked more like a giant drone-copter, with a dozen propellers and wheels.

Across town, the ground has been prepared for a factory for electric trucks. Once finished, it's expected to produce thousands of $100,000 trucks every year. On the Georgia coast, within a year a brand new Hyundai "meta factory" for electric cars and batteries will start production, with plans to produce half a million cars a year.

Yet at the local Scoops ice cream parlour, both locals and tourists say they don't feel they are living through a boom. Prices remain high. Families are depending on their credit cards. This is an industrial boom, taking place in factories and not something people have noticed in their everyday lives.

"It's not terrible," one customer told me. "I mean, we adjust to it, the cost of everything, and you just kind of move on. We're not going to stop living life as things are, but just work harder. That's our motto."

That prices are still rising by more than expected means interest rates are staying high. The cost of borrowing in the US is currently at its highest level for 22 years as the US central bank tries to slow inflation.

But in Georgia's capital, the Atlanta Federal Reserve president Raphael Bostic says many people are "less sensitive" to interest rate rises than they were. He says this is because of the trend in the US for long-term, 30-year mortgages - people's biggest loans are often fixed at a much lower rate.

Yet the US decision to keep rates higher for longer has a knock-on effect outside the US. If you are facing a rise in mortgage rates in the UK, that can be directly traced back to European markets following the US and assuming interest rates will come down more slowly than expected.

# data[].attributes.attachment_link.title
Faisal Islam: Could the US economy be doing too well?

# data[].attributes.attachment_link.description
The US economic boom has consequences for the global balance of power - and for the UK.

# data[].attributes.headline
Potential government failure with smoking ban???

# data[].attributes.subject
Potential government failure with smoking ban???

# data[].attributes.attachment_link.readable_text
Just because Liz Truss and Boris Johnson - both opposed to the government's proposed new smoking ban - hold a belief does not make it wrong. Smoking is unpleasant, but in this week's parliamentary debate, the word nicotine could have been replaced by cannabis, alcohol, ultra-processed foods, base jumping or mobile phones for children. All have their dangers. But in each case those in favour of restrictions rely on the same argument; if something produces a burden on the state it should be banned. Personal liberty can go hang.

Rishi Sunak's anti-smoking bill carried the same smudgy fingerprints as his bill on Rwanda. It suggested a late-night Downing Street cabal desperate for somethingeye-catchingto inject into the election campaign. It does not ban anyone from smoking, despite appearances. It bans shops from selling cigarettes to an ever-expanding age cohort, currently anyone under 18, with the legal cutoff increasing by one year each year. People born in or after 2009, in other words, will never be able to legally buy a cigarette in Britain. The bill's target is shopkeepers, charged with juggling the ID cards of hordes of adult purchasers and presumably proxy buyers. The smugglers must be cheering.

So far Britain's efforts to curb smoking - built on the nudge principle - have been remarkably effective. This has been achieved, as many economists would advise, by working on demand rather than supply. Cigarette use has fallen over the past half-century from about 45% of the population in 1974 to about 12% today and it continues to fall. The method has been to stop smoking indoors, in public enclosed spaces and around children. Advertising has been banned, vending machines abolished and children cannot buy cigarettes. The introduction of vaping, though controversial when it's young people doing it, is understood to have helped accelerate the fall in smoking, as per the drug policy charity Transform. That vaping can reduce smoking is backed up by data from Australia, where vapes were effectively banned in 2021 and the result has been no cut in smoking - indeed, there's been a small rise.

For all that, more than 6 million Britons still smoke, their burden on the NHS relieved only by their paying £10bn in tobacco taxes and dying - on average - younger. Despite the comfort smoking has long brought to many people - not everyone is a nicotine addict - there must be a public interest in discouraging its consumption. In its lengthy study of this debate, Transform comes down firmly in favour of simply extending what has worked. When in 2007 Britain raised the age from 16 to 18 it led to an estimated 30% fall in smoking by that age group, a remarkable achievement. In the US, raising the age to 21 in 2019 led to an even greater fall of 39%. A similar raise to 21 is surely what the British government should now do. Unlike Sunak's staggered ban, which may take five years to take effect, this change could be introduced at once. The only other country to propose his "ID-card ban" has been New Zealand. Its unpopularity and a change of government have seen it abandoned.

We also see the heavy hand of the state in Britain's failed drugs policies. The global "war on drugs" has been an unmitigated disaster, built as it was on the thesis that demand would end if supply was stamped out. The only regime to prove remotely effective in curbing supply is the Taliban in Afghanistan - and that may not last. Politicians everywhere have preferred to see gangsters triumph, crime soar, jails become crammed and their children ruined, rather than show the guts to decriminalise, regulate and control the hugely lucrative and dynamic drugs industry.

Governments across Europe - most recently in Germany - are testing how to handle recreational and other sorts of drug. They are experimenting with licensing, taxation, product regulation, publicity and public education. Some approaches work, some do not. The British government has adopted a workable policy on the smoking of tobacco by young people. Its record on nicotine control is widely regarded as a success - as its record on other narcotics is a raging failure. As Transform points out, "Tobacco control ... is one key aspect of drug policy where the UK has not been shockingly poor by global standards." The reason appears to be that it has treated "smoking as a public health challenge, led by health agencies, rather than an enforcement challenge led by the Home Office". Sunak's smoking ban would have the same defects as the cannabis ban. Complicated government is always bad government.

Tobacco control offers an intriguing testing ground for what is now the fast-liberalising market for drugs across Europe. Realistic and fair regulation will be hard but it must come in if millions are not to die prematurely. The misuse of opioids is now approaching pandemic status across the US.

At every turn, the state is inviting itself to delve ever deeper into the lives and ethics of its citizens - accusations that are constantly thrown at authoritarian governments. It seeks to relieve us of responsibility for personal decisions and deny us freedom of choice. It rules on the food we eat and the drinks we drink, on the right to criticise and on how we discipline or indulge our children. Britain does not need gimmicks such as cigarette passports. Tobacco is a menace but one that's on the way out. Other addictions should now claim our attention.

# data[].attributes.attachment_link.title
The UK's smoking ban is government meddling at its worst and most pointless | Simon Jenkins

# data[].attributes.attachment_link.description
Tobacco is already on its way out. The state should not deny adults the right to make personal decisions for themselves, says Guardian columnist Simon Jenkins

# data[].attributes.attachment_link.readable_text
Like in the UK, interest rates around the world had been on the increase, but in recent months, other central banks - including the US Federal Reserve and the European Central Bank - have also paused their rate rises.

# data[].attributes.attachment_link.title
Bank of England expected to hold interest rates

# data[].attributes.attachment_link.description
The Bank is widely expected to keep rates at 5.25% for now, but cut them later in the year.

# data[].attributes.attachment_link.readable_text
"The Conservative government crashed the economy and unleashed a cost of living crisis, pushing families across the country into poverty and a million children into destitution", said shadow employment and social security minister Alison McGovern.

# data[].attributes.attachment_link.title
Absolute poverty: UK sees biggest rise for 30 years, figures show

# data[].attributes.attachment_link.description
The energy price crisis caused the sharpest increase in absolute poverty in 30 years, official figures show.

# data[].attributes.attachment_link.readable_text
Some small businesses that received tax breaks for their innovation work are now being chased to pay the money back.

HMRC is reassessing past research and development (R&D) tax relief claims, after underestimating the level of error and fraud over many years.

Business groups say the process is being "mishandled" and is "crippling" small firms.

The tax authority said it has to make sure that claimants are entitled to the reliefs.

It only seeks to recover money where it hasn't been claimed legally, it added.

Dhruvin Patel is being asked to return £49,000 he got for his start-up.

"R&D relief was a great opportunity for innovating my business," says Mr Patel, "but these retrospective challenges mean start-ups will actually shy away from innovating."

Optometrist and entrepreneur Mr Patel, the founder of Ocushield, received the money in 2022 for work during 2020-21 on a potential new lighting product, a portable device which would project light that looked like daylight, even though it filtered out shorter wavelength blue light.

In January 2023 he got a "notice of enquiry", informing him that a compliance check on his claim found similar products already in existence.

Mr Patel says that the product he was working on was innovative at the time. He has almost finished developing it but hasn't brought it to market yet.

The dispute is now going to arbitration.

"For start-ups like us it's time, resources, mental bandwidth and, if we lose, it's cash too," says Mr Patel.

He knows several companies facing the same situation and the BBC understands thousands may be affected.

Many small businesses have been in touch about this issue, according to the Federation of Small Businesses (FSB).

"It's very clear that HMRC is mishandling its approach to past and present R&D claims in a way that undermines the innovative small firms who are needed if we are to grow our economy," says Tina McKenzie, policy chair for the FSB.

"The tax authority needs to recognise the importance of a predictable and supportive tax environment for those businesses at the cutting edge of technological change, which are increasingly small firms."

Dom Hallas, executive director of Startup Coalition, a lobby group for tech start-ups, is aware of this trend too. "These retrospective challenges on R&D tax relief are widespread in the start-up community and crippling," he says.

R&D tax credits were introduced in 2000 and are designed to help start-up companies, by giving them tax relief when they invest in innovation.

However, it has been reported that in recent years some companies have been abusing the system.

HMRC has estimated that more than £1bn was lost to error and fraud in tax relief to smaller businesses at the height of the pandemic in 2020-21, the year Mr Patel made his claim.

The National Audit Office spending watchdog recommended in January "compliance work on older claims" for the R&D scheme because HMRC had underestimated for years the level of error and fraud.

Chancellor Jeremy Hunt committed to improve the functioning of the R&D tax relief system in the Budget, announcing a new expert advisory panel to support HMRC in the scheme.

"We've seen a rise in these retrospective enquiries in the past six months and they are scary for companies," says Benedict Conry, R&D tax lead at the law firm SeedLegals.

He is not surprised that the R&D tax relief scheme has proved problematic to implement.

It is not straightforward to claim, or administer, he says. "It can be bewildering for start-ups and even some very experienced accountants don't understand it and won't touch it."

One big problem relates to how you define "innovation", says Mr Conry. "It can be very subjective and the grey areas quite large."

All of this matters because if genuinely innovative start-ups can thrive, this will benefit the economy. But if some companies abuse the scheme to cut their tax bill, this takes money out of the public purse, which could otherwise be spent on things like hospitals and schools.

HMRC told the BBC that it could not comment on individual cases, but said in a statement: "We recognise the importance of R&D in driving innovation and economic growth and we are determined to ensure that the claims process is straightforward for genuine claimants.

"We have to make sure that claimants are entitled to the reliefs they claim and will only seek to recover money where it hasn't been claimed in accordance with the law."

# data[].attributes.attachment_link.title
'HMRC gave me £49,000 tax relief, but wants it back'

# data[].attributes.attachment_link.description
Some UK start-ups who received tax breaks for innovation are being pursued to repay the money.

# data[].attributes.headline
Nosto's rebrand is a look-book of inspiration

# data[].attributes.subject
Nosto's rebrand is a look-book of inspiration

# data[].attributes.attachment_link.readable_text
The changes to our visual identity and product positioning energize the Nosto brand for the now and strengthen it for the future. Let us explain what's changed, why, and how it makes a difference for our customers and partners.

As a brand, Nosto has always embraced the human side of commerce. The emotion. The feeling. The experience. The company was born out of the idea that commerce should be personal. And over a decade since our founding, this now holds true more than ever. Our purpose, our mission, and our vision have all remained constant.

We exist to create lovable commerce. Loved by those entrusted with delivering beautifully designed and executed commerce experiences. And loved by those receiving experiences as they interact with their favorite online brands.

But we can only make commerce lovable for everyone if we achieve our mission: to make every impression relevant. In making every impression relevant, we can ensure every interaction between a brand and a human is intelligently personalized.

From our founding in 2013 to becoming the world's leading CXP

While those founding mantras remain unchanged, things have moved quickly since we were formed over a decade ago.

We've released thousands of product updates. Announced hundreds of game-changing technology integrations and partnerships. We've grown in size and location. We've acquired companies. We've advanced our proprietary algorithms and AI.

And we've helped global commerce brands deliver billions of dollars in online revenue.

But as we've evolved, we've also seen the needs of brands and retailers evolve. Technology consolidation is more acute. Monolithic and archaic platforms are out: nimble, powerful platforms, with simplicity, scalability, and cost-effectiveness are in. And holistic data actionability remains a prevalent battle.

Flexible, frictionless, intelligent commerce

Shoppers crave personalized experiences more than ever, but brands and retailers have lacked a single platform to manage the intelligence and actionability required to deliver on those demands. It is this duality that continues to inspire our product roadmap, positioning and brand identity.

So now, at the start of 2024, we feel it's right to bring all of our successes, learnings, people, and technologies under a new brand identity and product positioning that is fit for the now and ready for the future.

2024: A new chapter for Nosto

So what's happening?

1. A new brand identity

2. A new tagline

3. experience.AI™ becomes the neural core of our CXP

4. A market-leading integrated UGC offering

5. A new and streamlined platform user interface

1. A new brand identity

The new brand identity will come to life across all of our channels and every touchpoint. Let's look at what's changing.
Logo
We're excited to introduce our new logo for 2024. Our logo has always embodied the meaning of our name (Nosto; Finnish; to uplift, to raise), and that's why we've always had a prominent arrow pointing upwards to represent the uplift our technology delivers for online brands and retailers. This isn't changing for 2024.

Our new logo is designed to:

Value our heritage and always uplift. The logo represents the core sentiment of 'uplift' and helping brands grow.

Represent a new chapter for Nosto. After several acquisitions, a logo change signifies the bond of everyone and everything; we've combined companies, people, and technologies.

Deliver a vibrant modernity. Sleek, modern, understatedly powerful, clean, unfussy. These are the positive emotions our logo evokes and those our customers associate with our platform.

Symbolize our AI. The arrow is extrapolated into our graphic language with the lines grouped into four sets of four, representing the strides we've made in AI across the four key pillars of predictive AI, semantic AI, visual AI, and generative AI.

Colors
A small update has taken place to our color palette. Firstly, our magenta has evolved. It's more muted and mature, but still carries our heritage into this new chapter. This is our key accent color. Used to add personality in places where it matters.

Other colors have been chosen to best represent our strive toward our new modernity, work better together in multiple contexts, and are still rich, impactful, and vibrant.

Typeface
Our typeface has also evolved. Our new header font is Forma DJR (replacing Aeonik) and our body copy font is Albert Sans (replacing Apercu Mono).

Imagery
Real-life first, illustrative second.

When it comes to our imagery, you'll see real people. Real examples of commerce experiences. This is because authenticity and relevance are critical to our purpose and mission.

When we talk about our customers, we use real images.

When we talk about our platform, you'll see our actual platform. We're proud of the way it looks and proud of how easy it is to use. So there are no photoshopped mock-ups. If you see a platform image, that's what you'll get when you use it.

When we talk about our company and our people, you'll see actual employees.

And when we illustrate our platform's capabilities, you'll see custom illustrations by our in-house brand team.

2. A new tagline: Experience Intelligent Commerce

This is our strapline and mantra. We want everyone to experience intelligent commerce. And we're not using these words simply because they sound (or look) good together. They mean something to us.

Experience. We use this as a noun and a verb. It reflects the human behind, or in front of, the commerce experience. This links to our mission of making every impression (ergo: experience) relevant.

Intelligent. This refers to our technology and AI that powers every single commerce experience through Nosto. And this links to our vision of a world where every interaction between a brand and human is intelligently personalized.

Commerce. This is who we are at our heart. It's our platform and it's why we exist. This links to our purpose of making commerce lovable for everyone. experience.AI™, our core platform, is trained specifically on retail and commerce data, differentiating us from generic experience platforms.

3. experience.AI™ becomes the neural core of our Commerce Experience Platform

experience.AI™ is the neural AI core powering our Commerce Experience Platform (CXP). It captures intent-rich commerce data everywhere and unifies it in a single engine so you can action it anywhere in the commerce experience. And, of course, manage everything from a single platform.

experience.AI™ is made up of four distinct capabilities:
This brings together your owned commerce data and lets you import and integrate additional data through our extensive APIs, bringing understanding and actionability to large datasets.

Artificial Intelligence (AI). Our AI is made up of four key competencies: Predictive AI, AI, AI, and Generative AI. This AI engine powers every feature of our platform, helping automate repetitive tasks, streamline tedious workflows, and deliver intelligent commerce experiences that drive growth.

Business Intelligence (BI). Our Business Intelligence tooling enables you to monitor key website and campaign metrics with Business Analytics, your catalog performance with Product Intelligence, your traffic's on-site behavior with Audience Insights, as well as any user-generated content your customers are sharing about your brand on social media with our UGC Monitoring.

Dynamic Targeting. This enables you to build hyper-targeted segments for specific campaigns. You can create high-performing audience segments with Audience Builder, apply tactful merchandising across your store with our Global Merchandising Rules, optimize and test all on-site campaigns with A/B Testing and Optimization, and implement them ahead of time with Adaptive Scheduling.
Billions of behavioral profiles train experience.AI™
experience.AI™ captures billions of online signals specific to every shopper when they interact with your website, content, and products. These online signals, such as page views, clicks, add-to-carts and cart events, transactions, times, product returns, log-ins, cart abandonment, site abandonment, search queries, filtering and sorting, sign-ups, and location data are all stored in individual behavioral profiles. We then take the behavioral profiles and use this data to fuel the machine learning models within experience.AI™.

The behavioral profiles accumulate for 36 months for each site or store. This ensures optimal results and understanding of annual and seasonal behaviors.

The more online signals captured and behavioral profiles created = the more powerful and predictive experience.AI™ becomes. The more powerful and predictive experience.AI™ becomes = the more personalized the commerce experiences become.
Action data with the Experience Clouds
While experience.AI™ brings together your data and gives you the tools to understand it, your commerce experiences come to life by taking that data and actioning it by way of our Experience Clouds. Here, you'll find all the modules that allow you to create specific experiences.
Product Experience Cloud

Product Recommendations

Personalized Search

Category Merchandising

Dynamic Bundles

Personalized Emails

Content Experience Cloud

Content Personalization

Behavioral Pop-Ups

UGC Publisher Center

Ambassador Builder

4. An integrated personalization and UGC offering for commerce

Two of the largest challenges for digital commerce remain content velocity and content performance. Our platform is solving these challenges by integrating our personalization and user-generated content (UGC) solutions into a single platform.

Today's consumers expect online interactions with brands to be both personalized and authentic. Amid this backdrop, brands face a mounting challenge in capturing the attention of scroll-happy shoppers who have developed exceedingly high expectations, yet have a low trust in brands.

Obtaining enough (and the right kinds of) data, content and delivery methods to produce relevant experiences for individual shoppers is expensive and resource-intensive-making it an unreachable goal for most retailers.

By being the first in the commerce experience space to offer UGC natively alongside search, merchandising, and product recommendations we are helping brands meet the ever-increasing expectations of their shoppers and allowing them to seamlessly leverage UGC to further personalize user experiences all while building brand advocates and loyal customers along the way.

As part of experience.AI™, our new UGC Monitoring module gives all brands and retailers the ability to see what valuable content is being created, and shared, across more than 25+ social media channels (including TikTok, Meta, X, YouTube), and then embed that UGC into their product discovery strategies.

As part of our integrated personalization and UGC offering, every single new and existing customer will get access to UGC Monitoring so they can take valuable user-generated content and use that anywhere in the commerce experience-all from a single platform.

Adding Visual UGC to our CXP reflects the shift from brand-centric strategies to customer-centric strategies, helping brands make their commerce experiences more relevant and authentic.

5. A new and streamlined platform user interface

A new and streamlined platform user interface has been launched to support our rebranding and product positioning.

In addition to visual changes to align with the new brand, the interface will feature a more intuitive navigation and unlock additional information and features for users, such as UGC Monitoring. Our product naming has also been updated to reflect our new product positioning.

The changes in the user interface realize our ambition of a single platform for complete commerce experience management. Intelligence, targeting, and actionability are all managed from a single tool.

# data[].attributes.attachment_link.title
Nosto | Inside our brand and product evolution for 2024

# data[].attributes.attachment_link.description
The changes to our visual identity and product positioning energize the Nosto brand for the now and strengthen it for the future.

# data[].attributes.headline
Apple cracks down on PWAs in response to EU Digital Market Act

# data[].attributes.subject
Apple cracks down on PWAs in response to EU Digital Market Act

# data[].attributes.attachment_link.readable_text
Well, it turns out it's not a bug that broke iPhone web apps, also known as progressive web apps (PWAs), in the EU. Following developer complaints and press reports about how PWAs were no longer functional in the EU after installing the most recent iOS betas, Apple has updated its website to explain why. No surprise, the tech giant is blaming the new EU regulation, the Digital Markets Act, for the change, saying that the complexities involved with the DMA's requirement to allow different browser engines is the root cause.

To catch you up, security researcher Tommy Mysk and Open Web Advocacy first noticed that PWAs had been demoted to website shortcuts with the release of the second beta of iOS 17.4. Initially, it was unclear if this was a beta bug - stranger things have happened - or if it was intended to undermine the functionality of PWAs in the EU, a market where Apple is now being forced to allow alternative app stores, third-party payments, and alternative browser engines, among other things. In the betas, PWAs, which typically allow web apps to function and feel more like native iOS apps, were no longer working. Developers noticed that these web apps would open like a bookmark saved to your Home Screen instead.

As MacRumors pointed out at the time, that meant no "dedicated windowing, notifications, or long-term local storage"; iOS16.4 also allowed PWAs to badge their icons with notifications, as native apps could. Beta users of iOS 17.4 reported that when they opened a web app while running the iOS beta, the system would ask them if they wanted to open the app in Safari or cancel. The message indicates that the web app will "open in your default browser from now on," it said. Afterward, users said they experienced issues with data loss, as a Safari website shortcut doesn't offer local storage. Notifications also no longer worked.

Still, there was reason to be cautious about whether or not the change was intentional. Multiple staff at TechCrunch repeatedly asked Apple for comment but received no reply. (We had wanted to know if the company would confirm if this was a beta bug or an intentional change, and if the latter, what Apple's reasoning for it was.) After the next beta release emerged, The Verge ran a report indicating that Apple "appears to be " breaking PWAs in the EU, after also not likely getting a formal response from the tech giant.

Now Apple has responded, in its way. Today, it updated its website detailing its DMA-related changes in the EU to address the matter. In a new update, the company explains how it's had to make so many changes to the iOS to comply with the EU guidelines that continued support for PWAs was simply off the table.

Traditionally, the iOS system provided support for Home Screen web apps by building directly on WebKit (Safari's browser engine) and its security architecture, Apple said. That allowed web apps to align with the same security and privacy models as found in other native apps. But with the DMA, Apple is being forced to allow alternative browser engines. It argues that without the isolation and enforcement of the rules applied to WebKit-based web apps, malicious apps could be installed that could do things like read data from other web apps or "gain access to a user's camera, microphone or location without a user's consent," Apple said.

"Addressing the complex security and privacy concerns associated with web apps using alternative browser engines would require building an entirely new integration architecture that does not currently exist in iOS and was not practical to undertake given the other demands of the DMA and the very low user adoption of Home Screen web apps. And so, to comply with the DMA's requirements, we had to remove the Home Screen web apps feature in the EU," the website reads.

The company informs EU users they will be able to access websites from their Home Screen through bookmarks as a result of the change, confirming developers' concerns that PWAs were effectively being disabled in the EU.

"We expect this change to affect a small number of users. Still, we regret any impact this change - that was made as part of the work to comply with the DMA - may have on developers of Home Screen web apps and our users," Apple says.

Critics have argued that Apple's desire to hold on to its power in the iOS app ecosystem was so strong that it would break web app functionality for users of its devices. Apple's defenders, meanwhile, will probably argue that the company's explanation is reasonable and aligns with Apple's desire to keep iOS safe for its users. The truth, as it often does, likely lies more in the middle.

Apple still has not responded to requests for comment.

# data[].attributes.attachment_link.title
Apple confirms it's breaking iPhone web apps in the EU on purpose | TechCrunch

# data[].attributes.attachment_link.description
Well, it turns out it's not a bug that broke iPhone web apps, also known as progressive web apps (PWAs), in the EU. Following developer complaints and

# data[].attributes.body
Klarna AI assistant handles two-thirds of customer service chats in its first month

# data[].attributes.attachment_link.readable_text
General News

Klarna

Since 2005 Klarna has been on a mission to accelerate commerce with consumer needs at the heart of it. With over 150 million global active users and 2 million transactions per day, Klarna's fair, sustainable and AI-powered payment and shopping solutions are revolutionizing the way people shop and pay online and in-store, empowering consumers to shop smarter with greater confidence and convenience. More than 500,000 global retailers integrate Klarna's innovative technology and marketing solutions to drive growth and loyalty, including H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. For more information, visit Klarna.com .

OpenAI's mission is to create safe and powerful AI that benefits all of humanity.

# data[].attributes.attachment_link.title
Klarna AI assistant handles two-thirds of customer service chats in its first month

# data[].attributes.attachment_link.description
New York, NY - February 27, 2024 - Klarna today announced its AI assistant powered by OpenAI. Now live globally for 1 month, the numbers speak

# data[].attributes.headline
Example of Cartels and the CMA intervention

# data[].attributes.subject
Example of Cartels and the CMA intervention

# data[].attributes.attachment_link.readable_text
The UK competition watchdog has opened an investigation into eight housebuilders after evidence they may be sharing commercially sensitive information.

The Competition and Markets Authority (CMA) launched the investigation amid concerns it could be affecting the development of sites and prices of new homes.

It came as the regulator warned that the housebuilding sector "needs significant intervention" amid concerns over the quality of new homes, "high and unclear" estate management charges and planning problems.

The CMA formally started an investigation into state of the housebuilding sector and the private rental market in February last year.

On Monday, it said in its final report that the current planning system and limitations of speculative private development "have seen too few homes built".

It highlighted "persistent shortfalls" in the number of homes built across England, Scotland, and Wales, with fewer than 250,000 built last year across Great Britain, compared with a target of 300,000.

Complex and unpredictable planning rules across the three nations are partly to blame for this, it said.

The report highlights that many planning departments are underresourced, some do not have up-to-date local plans, and do not have clear targets or strong incentives to provide the numbers of homes needed in their area.

It also said shortfalls were linked to requirements to speak with a wide range of stakeholders.

In addition, there were concerns over limitations to private speculative development, highlighting that developers often produce houses based on pricing rather than diversifying the types and numbers of homes they build to meet the needs of communities.

The report also found a rise in developers using estate management charges for facilities, such as roads, drainage and green spaces.

It said these charges are "often high and unclear to homeowners" and flagged that some unplanned charges can cost thousands of pounds.

Concerns were also raised that builders "don't have strong incentives" for high quality and consumers have unclear routes of how to receive any redress when problems arise, with the CMA also highlighting an increase in snagging issues.

The watchdog said it is recommending the government sets up a new homes ombudsman to support homeowners over quality problems and requirements for councils to take over amenities on all new housing estates.

skip past newsletter promotion

Sign up to Business Today

Get set for the working day - we'll point you to all the business news and analysis you need every morning
Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.
after newsletter promotion

It came as the CMA also found signs that some housebuilders may be sharing commercially sensitive information with their competitors, which could affect property prices and weaken competition.

The investigation will look into Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry. It has not reached any conclusions about whether the law has been infringed.

The CMA chief executive, Sarah Cardell, said: "Housebuilding in Great Britain needs significant intervention so that enough good-quality homes are delivered in the places that people need them.

"Our report, which follows a year-long study, is recommending a streamlining of the planning system and increased consumer protections.

"If implemented, we would expect to see many more homes built each year, helping make homes more affordable.

"The CMA has also today opened a new investigation into the suspected sharing of commercially sensitive information by housebuilders which could be influencing the build-out of sites and the prices of new homes.

"While this issue is not one of the main drivers of the problems we've highlighted in our report, it is important we tackle anti-competitive behaviour if we find it."

# data[].attributes.attachment_link.description
Watchdog says there is need for 'significant intervention' over supply and quality of new homes

# data[].attributes.attachment_link.readable_text
Influencers on TikTok are to be paid by the British government to urge migrants not to cross the Channel in small boats.

The Home Office has run campaigns attempting to deter illegal migration in Albania, France and Belgium for the last three years, but now Home Secretary James Cleverly has agreed an expansion into several new countries.

Mass advertising campaigns will take place in Albania, Iraq, Egypt and Vietnam, with plans to also introduce them in Turkey and India, according to draft documents seen by The Times.

A shortlist of influencers drawn up in Albania reportedly includes a rapper, two comedians, lifestyle bloggers, TV personalities and a travel writer, who were chosen for their ability to appeal to young men.

The paper said the Home Office had a budget of about £30,000 to pay the Albanian influencers - which would be capped at £5,000 per person.

A £15,000 budget had been set to pay influencers in Egypt and Vietnam, The Times said, adding that the budget for Turkish, Iraqi and Indian influencers has yet to be decided but a total of £576,500 had been signed off for the five countries.

A spokesperson for the Home Office told Sky News: "People smugglers frequently use social media to peddle lies and promote their criminal activities, and it is vital that we utilise the same platforms to inform migrants about the truths about crossing the Channel and coming to the UK illegally.

"The relentless action we have taken reduced crossings by 36% last year, which saw similar weather conditions to 2022.

"We make no apologies for using every means necessary to stop the boats and save lives."
Read more from Sky News:
Labour suspends parliamentary candidate over 'unacceptable' Israel comments
Grant Shapps accused of igniting 'weird culture war spat around wokery' over armed forces diversity plan
Pro-Palestinian protesters hold demonstration outside MP's home
0:38

Nearly 116,000 people have entered the UK by making the dangerous journey across the Channel on small boats since 2018, according to Home Office data.

More than 1,600 migrants have made the crossing so far this year, with leaked Border Force documents suggesting the number could rise to around 35,000 in 2024.

# data[].attributes.attachment_link.title
Home Office to pay influencers to post on TikTok urging migrants not to cross Channel

# data[].attributes.attachment_link.description
The Home Office has run campaigns attempting to deter illegal migration in Albania, France and Belgium for the last three years, but now Home Secretary James Cleverly has agreed an expansion into several new countries.

# data[].attributes.attachment_link.title
IMF warns Jeremy Hunt against tax cuts in budget

# data[].attributes.attachment_link.description
Lower tax levels may not be possible without extra borrowing or post-election spending reductions, says Washington-based body

# data[].attributes.attachment_link.title
Will curbs to migration hit the UK economy?

# data[].attributes.attachment_link.description
The government’s new plans attempt to balance the impact across different industries.

# data[].attributes.attachment_link.readable_text
The government is spending more on public services than it raises in tax.

To bridge this gap it borrows money, but this has to be paid back - with interest - and that can influence wider tax and spending plans.

Why does the government borrow money?

The government gets most of its income from taxes. For example, workers pay income tax, everyone pays VAT on certain goods and companies pay tax on their profits.

It could, in theory, cover all of its spending from taxes, and in some years that happens.

But if it can't, it will cover the gap by raising taxes, cutting spending or borrowing.

Higher taxes mean people have less money to spend, so businesses make less profit, which can be bad for jobs and wages. Lower profits also mean companies pay less tax.

So, governments often borrow to boost the economy. They also borrow to pay for big projects - such as new railways and roads - which they hope will help the economy.

How does the government borrow money?

The government borrows money by selling financial products called bonds.

A bond is a promise to pay money in the future. Most require the borrower to make regular interest payments over the bond's lifetime.

UK government bonds - known as "gilts" - are normally considered very safe, with little risk the money will not be repaid.

Gilts are mainly bought by financial institutions in the UK and abroad, such as pension funds, investment funds, banks and insurance companies.

How much is the UK government borrowing?

The amount the government borrows varies from month to month.

For instance, when people submit tax returns in January, they often pay a large chunk of their annual tax bill in one go, so the government sees a jump in the amount of money it takes in.

So it is more helpful to look at the whole year, or the year-to-date.

In the 2022-23 financial year, the government borrowed £127.8bn. That was £5bn higher than in the previous year.

The total amount the government owes is called the national debt. It is currently about £2.6 trillion.

That current level is more than double what was seen from the 1980s through to the financial crisis of 2008.

The combination of the financial crash and the Covid pandemic pushed the UK's debt up from those historic lows to its current level.

But in relation to the size of the economy, today's debt figures are still low compared with much of the last century, as shown above, and also compared with some other leading economies.

How much money does the government pay in interest?

The larger the national debt gets, the more interest the government has to pay.

That extra cost was not as big when the interest rates due were low through the 2010s, but it is more noticeable now that interest rates have been rising.

If the government has to set aside more cash for paying its debts, it may mean it has less to spend on the public services which it borrowed to fund in the first place.

The most significant figures tracking the cost of debt are published monthly by the Office for National Statistics (ONS).

According to this data, two months in 2022 saw record levels of money set aside for debt interest: £20bn in June and £18bn in December.

June 2023 saw the third largest monthly amount - £12.8bn.

The most recent October figure revealed interest on government debt was £7.5bn.

During the 2022-23 financial year, the government spent £108bn on debt interest - more than it spent on education.

Why does it matter if governments borrow more?

Some economists fear the government is borrowing too much, at too great a cost.

Others argue extra borrowing helps the economy grow faster - generating more tax revenue in the long run.

In an ageing population, the proportion of people of working age drops, meaning the government takes less in tax while paying out more in pensions.

The OBR says debt could rise to more than 300% of GDP by 2070.

What is the government's plan for debt?

Responding to the OBR report, Chancellor Jeremy Hunt said the government would take "difficult but responsible" decisions on the public finances.

He previously blamed the "twin global emergencies of a pandemic and Putin's war in Ukraine" for driving up government costs.

The chancellor has set a target of getting underlying debt to fall in five years' time.

What is the difference between the government deficit and debt?

The deficit is the gap between the government's income and the amount it spends.

When a government spends less than its income, it has what is known as a surplus.

Debt is the total amount of money owed by the government that has built up over years.

It rises when there is a deficit, and falls in those years when there is a surplus.

# data[].attributes.attachment_link.title
How much money is the UK government borrowing, and does it matter?

# data[].attributes.attachment_link.description
How does government borrowing work, and how and when is the money paid back?

# data[].attributes.attachment_link.readable_text
Netflix is raising prices for some of its subscription plans, despite the success of its recent crackdown on password sharing.

The streaming giant said monthly charges for its UK basic service would rise by £1 to £7.99 and the premium option will increase by £2 to £17.99.

It reflects the firm's growing confidence, after adding 8.8 million subscribers from July to September.

It was the most in more than two years.

For viewers in the US, the premium plan will cost $3 more per month at $22.99 (£19.00). In France, premium subscribers will pay an extra €2 at €19.99 (£17.40).

Netflix has been facing doubts about whether it can continue to draw in new members, as competition rises, prices climb and a Hollywood strike delays new releases.

In the first half of last year, it lost about one million subscribers, sending alarm bells ringing.

Much of the subscriber growth in the most recent quarter was driven by its move to start charging an extra fee - which amounts to a little less than half the £10.99 cost of its "standard" advert-free plan - to have more than one household on the same account.

The launch of a cheaper plan, with adverts, accounted for about 30% of sign-ups in countries where it was available, Netflix said.

"Management's working hard to squeeze every last drop of cash possible from the available subscriber base," said Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown.

"As that cup begins to run dry, it will be a lot more important to understand exactly how successful the next phase of growth can be."

Netflix said it believed it had the right mix of original hits and licensed fan favourites in its library to keep audiences coming, spotlighting Suits, the legal drama now known for starring Meghan Markle.

First released in 2011 on an American network, the series spent several weeks among the top 10 of Netflix's most-watched English television shows over the summer, racking up more than a billion viewing hours globally.

Netflix, which has been emphasising its own productions in recent years, said in its quarterly update to investors that licensing had always been important and it saw potential opportunities to license more hits "as the competitive environment evolves".

Analysts said licensed material was likely to prove increasingly important, as audiences feel the hit of the Hollywood strikes that have shut down new productions for several months.

Writers recently reached a deal, but the actors guild and the major studios, including Netflix, are still fighting over issues of compensation and artificial intelligence.

Studios are facing pressure from investors, who have grown increasingly sceptical of the big losses posted by some of Netflix's rivals in the streaming business, such as Disney.

From that perspective, Netflix is in a strong position.

It reported quarterly revenue up 7.8% year-on-year at $8.5bn, while profits hit $1.67bn.

The company has been trying to nudge customers on to the advertising-funded plan, which it sees as having big potential to drive profits. That is one reason for the price hike to its "basic" advert-free plan, which is no longer widely promoted on its website.

"They're certainly generating more revenue from the ad-tier subscribers than they are from the standard and premium subscribers," Simon Gallagher, former director of content acquisition at Netflix, told the BBC.

"So they are very motivated to push their subscribers across to that ad-funded tier."

Paolo Pescatore, analyst at PP Foresight, said he thought customers should expect to see even higher prices in the years ahead as the company looks to protect its profits and reckons with costs from licensing and new initiatives.

The company recently revealed plans to start opening a select number of bricks-and-mortar destinations for shopping, dining and Netflix "experiences", something like a Netflix version of Disney World.

"Price rises are inevitable and we can expect this most likely on an annual basis, akin to traditional pay TV and other services," he said.

Netflix shares jumped more than 10% in after-hours trade.

# data[].attributes.attachment_link.title
Netflix raises prices despite password crackdown success

# data[].attributes.attachment_link.description
The streaming giant raises monthly charges in the US, UK and France after gaining millions of new subscribers.

# data[].attributes.headline
Wages overtake inflation for first time in nearly two years

# data[].attributes.subject
Wages overtake inflation for first time in nearly two years

# data[].attributes.attachment_link.readable_text
Average pay growth rose above inflation for the first time in almost two years, in a sign that the squeeze on living costs may be starting to ease.

Wages rose at an annual rate of 7.8% between June and August, figures show.

That was higher than average inflation over the same three months, which measures the rate at which prices rise.

Revised figures showed pay overtook inflation in the three months to July, meaning wages are outpacing prices for the first time since October 2021.

However, the rise in wages is an average and does not mean that cost of living pressures are subsiding for everyone.

There continues to be a big gap between public and private sector pay.

Wage growth for public sector workers reached 6.8% between June and August, which the Office for National Statistics (ONS) said was the biggest increase since comparable records began in 2001.

But the average pay rises for private sector employees was 8%.

People employed in finance and business services saw the largest rise in annual pay, followed by those in the manufacturing sector.

The rate of inflation has been slowing but, at 6.7% for the year to August, it remains more than three times higher than the Bank of England's 2% target.

New inflation figures will be released on Wednesday, which are expected to show price rises are continuing to slow.

Chancellor Jeremy Hunt, said: "It's good news that inflation is falling and real wages are growing, so people have more money in their pockets."

The Bank of England has been increasing interest rates in an attempt to curb inflation.

However, it held borrowing costs at 5.25% last month and, following the latest wage growth figures, analysts at Capital Economics believe rates will not rise any further for now.

"Cooling labour market conditions appeared to start feeding through into an easing in wage growth in August," said Ashley Webb, UK economist at the research firm. "That supports our view that interest rates have peaked at 5.25%.

"But as we suspect wage growth will fall only slowly, interest rates will probably stay at their peak until late in 2024."

The number of job vacancies in the UK continued to fall, dropping by 43,000 to 988,000 between July and September.

Real estate companies had the sharpest fall in available jobs compared to other industries, with vacancies plunging by almost 30% compared to the previous three months.

Despite the decline in overall figures, the total number of vacancies remains 187,000 above that seen in January to March 2020 before the Covid pandemic hit the economy.

As inflation eases and employers grapple with the impact of higher interest rates, economists expect wage rises to slow.

More comprehensive unemployment figures next week are expected to add to the picture of a weaker jobs prospects; previous releases have already revealed 200,000 posts lost over the early summer.

And the freezing of personal allowances and tax brackets, at which the basic and higher rates of income tax become payable - a policy dating back to 2021 - are siphoning more money out of pay packets.

By 2028, the Institute for Fiscal Studies is warning this will equate to a tax rise of £50bn.

Moreover, Dr Swati Dhingra, one of the Bank of England's rate-setting committee, warned the BBC last week that the bulk of the impact of interest rates has yet to filter across the economy, via changes in spending and so employment.

It may ultimately be younger and less skilled workers who are worst affected, she said.

'Very difficult'

While some sectors had seen average pay growth rise sharply, others did not fare so well, the ONS said.

Average wage growth for construction workers was the lowest compared to other industries at 5.7% between June and August.

Wages are a concern for Alex Patrick-Smith, the executive chairman of Dudley brick-making firm Ketley Brick.

He told the BBC that after overcoming soaring energy prices, demand has now fallen by 30%.

Meanwhile, Ketley Brick's commitment to paying the living wage, which is set to increase to £11 an hour from next April, has had a knock-on effect for all employees across the company.

"This has unfortunately arrived at a time where it's been very, very difficult for us because demand has fallen and we've got this cost increase that's put upon us," Mr Patrick-Smith said.

But he is reluctant to lay off any of his 64-strong team.

"Without a workforce that is going to be here when we come through the other side, we're not going to be able to produce at the level that we would like to, and so we're doing everything we possibly can to maintain the levels of employment," Mr Patrick-Smith said.

Are you feeling the benefit of a pay rise? How is the rising cost of living affecting you? Share your experiences by emailing haveyoursay@bbc.co.uk.

Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways:

If you are reading this page and can't see the form you will need to visit the mobile version of the BBC website to submit your question or comment or you can email us at HaveYourSay@bbc.co.uk. Please include your name, age and location with any submission.

Choose the right time - Scheduling a talk in advance will allow you and your boss time to prepare, and means you're more likely to have a productive conversation

Bring evidence - have a list of what you've achieved at work and how you've developed yourself

Be confident - Know your worth and don't be shy about speaking up

Have a figure in mind - look at job adverts online to see the salaries for comparable jobs

Don't give up - keep talking to your employer if it doesn't work this time and if you can't get what you want be prepared to look elsewhere

# data[].attributes.attachment_link.title
Wages overtake inflation for first time in nearly two years

# data[].attributes.attachment_link.description
Average pay growth outpacing inflation suggests the squeeze on living costs may be starting to ease.

# data[].attributes.attachment_link.readable_text
Borrowing costs for governments around the world have risen to the highest level in decades as investors bet that stubbornly high inflation will force global central banks to leave interest rates higher for longer.

UK 30-year bond yields - which dictate the country's long-term cost of borrowing - rose to the highest level since 1998 on Wednesday, surpassing the levels seen a year ago in the panic after Liz Truss's mini-budget. US Treasury yields have climbed to a 16-year high, while EU nations and Japanese government borrowing costs have also risen sharply.

What are bond yields?

A bond is a form of loan that investors make to a borrower, or bond issuer. Governments, companies and other organisations issue them to raise money. The bond market is the biggest securities market in the world, worth almost $130tn (£107tn). The US bond market is the largest, accounting for about 40% of debt worldwide. UK government bonds are also commonly referred to as gilts, while US ones are known as Treasuries, and German vbersions as bunds.

Bond yields represent the amount of money an investor receives for owning the debt as a percentage of its current price. When the price of a bond falls, yields rise. The yield is also commonly referred to as an interest rate, or the "cost of borrowing" to an issuer.

Rising bond yields suggest dwindling appetite to own the debt among investors, which can be influenced by a range of factors - including an issuer's ability to repay. For governments, this centres on the prospects for the economy and national finances.

Inflation expectations also have a significant impact. This is because inflation undercuts the future value of money received for owning the debt. This means investors could demand a higher yield to compensate for the risk.

Why are yields rising now?

Investors are betting that the world's most influential central banks will keep their official interest rates set at high levels for longer than previously anticipated. Central bank base rates determine the interest commercial lenders receive for depositing money with them. In turn, this affects the rates those banks charge on loans and savings, and influences the wider market for bonds.

Inflation has remained stubbornly high this year, having surged after the Covid pandemic and Russia's invasion of Ukraine. Meanwhile, economic growth has been more resilient than expected, despite the most aggressive round of interest rate increases in decades from central banks.

Investor appetite for bonds also depends on supply and demand. The economic shock, leading to ballooning government budget deficits, has boosted the number of bonds issued to finance them. Central banks have also stopped buying debt through their post-2008 quantitative easing programmes, including the Bank of England actively selling bonds it holds on its balance sheet to investors.

Most developed nations' central banks have warned that interest rates would need to remain at "higher for longer" levels to tackle inflation, including the US Federal Reserve and the Bank of England, although many investors had been betting that rate cuts would be required sooner, as inflation fades and the risk of recession mounts in several advanced economies.

However, figures from the US economy this week suggest a more resilient outlook than anticipated, including in the jobs market - reinforcing the prospect of higher-for-longer interest rates. Oil prices have also risen sharply in recent months to almost $100 a barrel, posing renewed inflationary pressures.

skip past newsletter promotion

Sign up to Business Today

Get set for the working day - we'll point you to all the business news and analysis you need every morning
Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply.
after newsletter promotion

Why does it matter?

Higher bond yields push up governments' debt servicing costs, with a potential impact for tax and spending decisions. In the UK, the rise comes as the chancellor, Jeremy Hunt, prepares for next month's autumn statement amid demands from Conservative MPs for tax cuts, and as public services come under pressure.

A year ago turbulence in the UK bond market led to the downfall of Truss as prime minister. Global bond yields had been rising at that time. However, the UK was an international outlier, with larger moves than for other advanced economies.

Higher yields are expected to slow the economy, because they will raise the cost of borrowing for businesses and households - weighing on company investment and consumer spending.

Companies with high debt levels could come under greater strain, while there could be pressure in the financial system. Earlier this year, rising bond yields led to problems for medium-sized US banks, including the failure of Silicon Valley Bank.

# data[].attributes.attachment_link.title
What are bond yields and why are they at a 25-year high in UK?

# data[].attributes.attachment_link.description
Inflation expectations have pushed up government's long-term cost of borrowing, which is expected to slow economy

# data[].attributes.headline
All of the World’s Exports by Country, in One Chart

# data[].attributes.subject
All of the World’s Exports by Country, in One Chart

# data[].attributes.attachment_link.title
All of the World’s Exports by Country, in One Chart

# data[].attributes.attachment_link.description
We visualize nearly $25 trillion of global exports by country, showing you the top exporting nations and the data behind it all.

# data[].attributes.attachment_link.readable_text
James Clayton & Tom Espiner

US regulators have sued Amazon, alleging that the internet giant is illegally maintaining monopoly power.

The Federal Trade Commission (FTC) said Amazon uses "a set of interlocking anticompetitive and unfair strategies" to push up prices and stifle competition.

Amazon said the lawsuit was "wrong on the facts and law, and we look forward to making that case in court".

It is the latest technology giant to be sued by US regulators.

The FTC's boss, Lina Khan, has had Amazon in her crosshairs for years.

In 2017, Ms Khan, then only 29, published a major academic article arguing the online retailer had escaped anti-competition scrutiny.

"With its missionary zeal for consumers, Amazon has marched toward monopoly," she said at the time.

Since her surprise appointment as FTC Chair in 2021, this case has been widely expected - and viewed as a crucial test of her leadership.

The dominance of a handful of powerful tech firms has led some US politicians to call for action that would promote more competition in online search, retail and social media.

However, the FTC under Ms Khan has had little to show for its strong rhetoric against Big Tech.

In February it lost its attempt to stop Meta from buying VR company Within.

And in July it lost an attempt to block Microsoft from completing its deal to buy the maker of Call of Duty.

There is pressure on Ms Khan to make at least one high profile complaint stick - and at the FTC they have high hopes for this case.

The agency, along with 17 state attorneys, claims that Amazon is a "monopolist" that stops rivals and sellers from lowering prices.

The regulator also alleged the internet giant's actions "degrade quality for shoppers, overcharge sellers, stifle innovation, and prevent rivals from fairly competing against Amazon".

However, Amazon says that if the "misguided" FTC lawsuit is successful, it would mean fewer products to choose from, higher prices, and slower deliveries for consumers.

The key part of the case involves consumers losing money - getting worse deals - because of the alleged monopoly.

US anti-competition legislation is complicated, but generally, prosecutors have to show companies have acted in a way that hurts consumers financially.

That isn't always an easy thing to prove when it comes to Big Tech, as many of their services are free - like Google's search engine or Meta's Instagram.

Earlier this month, a court battle began between Google and the US government, which has accused it of having an advertising technology monopoly.

# data[].attributes.attachment_link.title
Amazon: US accuses online giant of illegal monopoly

# data[].attributes.attachment_link.description
The Federal Trade Commission alleges Amazon uses "unfair" and "illegal" strategies to keep power.

# data[].attributes.attachment_link.description
‘The Economics Of’ unpacks innovative businesses, brands and products that have revolutionized modern life.

# data[].attributes.attachment_link.keywords[]
cnbc "cnbc international" "cnbc world" "cnbc europe" "cnbc asia" "cnbc explains" "cnbc reports" "cnbc profiles" "what drives you" "office envy" "journey thro...

# data[].attributes.attachment_link.description
Welcome to CNBC International's YouTube channel. Our channel is run by a dynamic, digital-first unit that creates educational and entertaining videos for our viewers. Based in London and Singapore, our aim is to help you become more knowledgeable about all things money. Subscribe to get a new video delivered to your feed every week.

# data[].attributes.attachment_link.keywords[]
"the economist" news politics "world affairs" economist magazine business finance science technology arts history

# data[].attributes.attachment_link.description
The Economist videos give authoritative insight and opinion on international news, politics, business, finance, science, technology and the connections between them. We're also producing full films such as The Disrupters, an original series exploring how major industries-from music and cars to hospitality-are currently being disrupted by the latest wave of digital innovation.

# data[].attributes.attachment_link.keywords[]
bloomberg television business news financial stock bond currencies anchor wall street money nyse nasdaq futures technology innovation ipad iphone samsung elo...

# data[].attributes.attachment_link.description
Bloomberg Originals offers bold takes for curious minds on today's biggest topics. Hosted by experts covering stories you haven't seen and viewpoints you haven't heard, you'll discover cinematic, data-led shows that investigate the intersection of business and culture. Exploring every angle of climate change, technology, finance, sports and beyond, Bloomberg Originals is business as you've never seen it.

# data[].attributes.attachment_link.title
Prof. Werner brilliantly explains how the banking system and financial sector really work.

# data[].attributes.attachment_link.title
A healthy economy should be designed to thrive, not grow | Kate Raworth

# data[].attributes.attachment_link.description
A complete introduction to economics and the economy; student-centred and motivated by real-world problems and real-world data.

# data[].attributes.attachment_link.description
tutor2u is a leading support service for A-Level, GCSE, and Vocational students and teachers preparing for assessments, mocks and final exams.

# data[].attributes.attachment_link.description
Economics Help.org has over 2,000 articles and revision notes for economics students. Latest economic news, videos, blog and graphs. All the resources for helping to improve your economics.

# data[].attributes.attachment_link.readable_text
Take a seat at the table and learn about the biggest stories in financial markets, the economy and business. Each week our editors and correspondents explore how economics influences the world we live in and share their insights across a range of topics. From inflation and recession risk to all things crypto and even the commercial success of K-pop, we have you covered. Published every Thursday.
Sign up for Economist Podcasts+ now and get 50% off your subscription with our limited time offer. You will not be charged until Economist Podcasts+ launches.
Sign up at www.economist.com/podcastsplus-moneytalks
If you're already a subscriber to The Economist, you'll have full access to all our shows as part of your subscription.
For more information about Economist Podcasts+, including how to get access, please visit our FAQs page at https://myaccount.economist.com/s/article/What-is-Economist-Podcasts.

Hosted on Acast. See acast.com/privacy for more information.

Take a seat at the table and learn about the biggest stories in financial markets, the economy and business. Each week our editors and correspondents explore how economics influences the world we live in and share their insights across a range of topics. From inflation and recession risk to all things crypto and even the commercial success of K-pop, we have you covered. Published every Thursday.
Sign up for Economist Podcasts+ now and get 50% off your subscription with our limited time offer. You will not be charged until Economist Podcasts+ launches.
Sign up at www.economist.com/podcastsplus-moneytalks
If you're already a subscriber to The Economist, you'll have full access to all our shows as part of your subscription.
For more information about Economist Podcasts+, including how to get access, please visit our FAQs page at https://myaccount.economist.com/s/article/What-is-Economist-Podcasts.

Hosted on Acast. See acast.com/privacy for more information.

Recommend

Pod is going from strength to strength - keep going!

Simplistic.

Overall I enjoy listening to Money Talks, but was disappointed by the presenter's simplistic characterisation of crypto, lumping it all into one and conflating it to a "meme stock". A few bad actors like FTX do not mean all crypto is a "meme stock" and The Economist should know that Gary Gansler's (SEC) view of most crypto as an "unregulated security" is being challenged by the House Financial Service Committee as well as others. Meanwhile, the EU and UK are acting much more favourably to crypto with the MiCA regulation and recent meetings with Coinbase in the UK.

There are thousands of talented people developing exciting blockchain technologies all around the world, including in the UK (like Arweave) with billions being invested by well know companies - Hedera for example, has Boeing, Dell, Google, IBM, LG and others on its Governing Council - hardly a meme stock.

Excellent

Brilliant combination of top guests and focus on the economics issues of the moment.

# data[].attributes.attachment_link.title
‎Money Talks from The Economist on Apple Podcasts

# data[].attributes.attachment_link.description
Take a seat at the table and learn about the biggest stories in financial markets, the economy and business. Each week our editors and correspondents explore how economics influences the world we live in and share their insights across a range of topics. From inflation and recession risk to all thin...

# data[].attributes.attachment_link.readable_text
Understanding inflation will help you understand why your shopping is getting more and more expensive and why prices rarely seem to come down.

What is inflation, why does it matter, and is someone to blame if it goes up? Understanding inflation will help you understand why your shopping is getting more and more expensive and why prices rarely seem to come down. Tim Harford explains why the inflation figure you see on the TV might not reflect the price rises you're experiencing and economic historian Victoria Bateman tells us why having a boat load of silver coins isn't always a good thing.

Everything you need to know about the economy and what it means for you. This podcast will cut through the jargon to bring you clarity and ensure you finally understand all those complicated terms and phrases you hear on the news. Inflation, GDP, Interest rates, and bonds, Tim Harford and friends explain them all. We'll ensure you understand what's going on today, why your shopping is getting more expensive or why your pay doesn't cover your bills. We'll also bring you surprising histories, from the war-hungry kings who have shaped how things are counted today to the greedy merchants flooding Spain with silver coins. So if your eyes usually glaze over when someone says 'cutting taxes stimulates growth', fear no more, we've got you covered.

Guest: Richard Davies, Professor of Economics at Bristol University

Producer: Phoebe Keane

Researchers: Drew Hyndman and Marianna Brain

Editor: Clare Fordham

Theme music: Don't Fret, Beats Fresh Music

A BBC Long Form Audio Production for BBC Radio 4

# data[].attributes.attachment_link.title
BBC Radio 4 - Understand: The Economy, Series 1, The Economy: 1. Inflation

# data[].attributes.attachment_link.description
Understanding inflation will help you understand why your shopping is getting more and more expensive and why prices rarely seem to come down. What is inflation, why does it matter, and is someone to blame if it goes up?

# data[].attributes.attachment_link.readable_text
The Bank of England has held interest rates at 5.25%.
The decision followed 14 successive increases since November 2021 as the Bank tried to control inflation, which has been slowing but remains high.

The Bank of England is the UK's central bank. It is independent of government but works closely with the Treasury.

Despite the latest fall, CPI is still more than three times the Bank's target.

"Core" inflation - which excludes the price of energy, food, alcohol and tobacco - dropped to 6.2% in August, down from 6.9% in July.

The recent sharp increases in inflation were initially due to rising energy and food costs - largely caused by global events such as the war in Ukraine - but other factors, things like wage increases in the UK, have also helped keep prices high.

The bank's traditional response to rising inflation is to increase the UK's official interest rate.

This influences the saving and borrowing rates charged by High Street banks to individuals and businesses.

Since November 2021, the Bank has increased interest rates on 14 successive occasions.

Fewer people wanting to buy things should, in theory, mean that prices rise less quickly.

It also makes it harder for firms to borrow money and expand.

Alternatively, if the bank cuts interest rates, borrowing becomes cheaper, and people have more money to spend on other things.

This can encourage businesses and people to borrow and spend more, boosting the economy.

Despite the recent falls in the headline rate of inflation, the Bank of England was still expected to raise Interest rates again in September.

The Bank's Monetary Policy Committee (MPC) meets eight times a year to set rates.

Minutes of the meeting at which the decision was taken are also published.

Bonds are a bit like an "I owe you" from the government, which uses them to raise money to help meet its spending commitments.

Once that intervention ended, the bank said it would go ahead with a plan - first announced in August 2022 - to sell off some of the government bonds it holds.

produces banknotes and oversees credit and debit card payments

regulates banks and building societies

monitors risks in the UK financial system and acts to reduce them, like lending to banks if they need it. It shares responsibility for this with the Treasury and financial regulator, the Financial Conduct Authority

stores the UK's gold reserves - 400,000 bars worth more than £200bn - as well as those of other central banks.

He was the bank's chief cashier from January 2004 until April 2011, which meant his signature appeared on billions of UK banknotes.

As well as being responsible for overseeing the bank, the governor also chairs three important committees that help it work towards its targets: the Monetary Policy Committee, the Financial Policy Committee and the Prudential Regulation Authority.

# data[].attributes.attachment_link.title
What is the Bank of England and why does it change interest rates?

# data[].attributes.attachment_link.description
The Bank of England has held rates at 5.25%, after 14 successive increases since November 2021.

# data[].attributes.attachment_link.readable_text
By Noor Nanji & Faisal Islam

Slowing food prices helped drive a surprise fall in inflation in August, with prices now rising at their slowest rate in a year-and-a-half.

Inflation, which measures how prices change over time, fell to 6.7% in the year to August, down from 6.8% in July, official figures show.

It is the third month in a row that the figure has dropped.

Prices for milk, cheese and vegetables all fell last month, but the price of cereals rose.

Most experts had expected inflation to increase due to a rise in the cost of petrol and diesel last month, driven by higher oil prices.

But a slowdown in rising food prices and a drop in air fares and accommodation costs all helped drive the overall rate of inflation lower.

When the rate of inflation falls, it does not mean prices are coming down, but that they are rising less quickly.

Grant Fitzner, chief economist at the Office for National Statistics, said it remained "a mixed picture", but said food manufacturers were "paying less for food than a year ago," and this was "starting to pass through to consumers."

The drop in food prices is potentially good news for consumers who have seen shopping and restaurant bills soar.

Nick Collins runs Lounges, which owns cafes, bars, restaurants and roadside diners. He told the BBC that rising food costs had forced him to put up prices by 8% across the business over the last year.

"In normal years, we'd increase our prices by around 1.5% or 2%," he said.

However, Mr Collins said he had seen "absolutely no shift in customer behaviour" and people were not "tightening their belts".

"If they were you'd see fewer people out at the start of the week. You'd see less spending as you approach payday... We haven't seen any of that."

Food prices went up around the world following Russia's invasion of Ukraine, which was one of the factors pushing up prices at supermarket tills.

The war disrupted supplies from the two countries, which are major exporters of goods such as sunflower oil, wheat, and fertiliser.

The drop in inflation has raised doubts over whether the Bank of England will raise interest rates on Thursday. Ahead of the inflation figure, the 15th rise in a row to 5.5% from 5.25% was widely expected, but now only half of investors expect an increase.

How does UK compare?

The government has pledged to halve inflation this year and chancellor Jeremy Hunt said the latest figures showed "the plan to deal with inflation is working".

But Labour's shadow chief secretary for the Treasury, Darren Jones, said the surprise fall in inflation was "nowhere near" enough.

At 6.7%, the UK's inflation rate remains high compared to other rich countries.

According to latest figures, inflation is 6.4% in Germany, 5.7% in France, 5.5% in Italy and 2.5% in the US.

On Tuesday, a new forecast from the Organisation for Economic Co-operation and Development suggested prices will rise faster in the UK than any other advanced economy this year.

How can I save money on my food shop?

Look at your cupboards so you know what you have already

Head to the reduced section first to see if it has anything you need

Buy things close to their sell-by-date which will be cheaper and use your freezer

Additional reporting by Priya Patel and Raphael Sheridan.

# data[].attributes.attachment_link.title
UK inflation: Slowing food prices drive surprise fall

# data[].attributes.attachment_link.description
Prices are now rising at their slowest rate in a year-and-a-half with inflation falling to 6.7% in August.

# data[].attributes.headline
Microsoft takeover of Activision blocked

# data[].attributes.subject
Microsoft takeover of Activision blocked

# data[].attributes.attachment_link.readable_text
By Tom Espiner & Will Harris

Business reporters, BBC News

One of Microsoft's senior leaders has hit out after the software giant's deal to buy US video game company Activision Blizzard was blocked by UK regulators.

The move was "bad for Britain" and showed that the European Union was a better place to set up a firm than the UK, Brad Smith told the BBC.

But the Competition and Markets Authority (CMA) said its job was not to serve the interests of merging firms.

The CMA added that its decision would encourage growth.

The proposed $68.7bn (£55bn) takeover would see Microsoft get hold of massively popular games titles such as Call of Duty, Candy Crush, and World of Warcraft.

But on Wednesday the regulator said it was concerned the deal would hit innovation and give gamers less choice in the fast-growing cloud gaming market, where people buy subscriptions to access games online.

Microsoft has already said the decision may have an impact on its UK investment.

In an interview with the BBC Radio 4 Today programme, Mr Smith, who is Microsoft's vice chair and president, said the company was "very disappointed" about the CMA's decision, "but more than that, unfortunately, I think it's bad for Britain."

"There's a clear message here - the European Union is a more attractive place to start a business than the United Kingdom."

The UK government has made it one of its post-Brexit goals to bring in a "light-touch" set of rules for science and technology to encourage economic growth.

Mr Smith said that if the UK wants to bring in investment and make Britain a place "where technology is not only going to flourish, but be created", then "it needs to look hard at the role of the CMA and the regulatory structure".

He added that "people are shocked, people are disappointed, and people's confidence in technology in the UK has been severely shaken" by the CMA decision.

UK interests

However, the regulator hit back, saying: "It is the CMA's job to do what is best for the people, businesses and economy of the UK, not merging firms with commercial interests."

It added that its decision means that a range of firms, "large and small", can "continue to compete in this rapidly growing market".

This will mean more innovation, and more choice for consumers, it said.

"Those are the best conditions to attract investment and support growth," the regulator added.

Microsoft and Activision have said they would appeal the CMA's decision.

For the deal to work, it has to be approved by regulators in the UK, the US and the EU.

But it has fallen at the first hurdle. The CMA's decision may scupper the whole takeover.

Cloud gaming

This deal is important for Microsoft because it wants to make its position in the fast-growing cloud gaming market stronger.

Rather than buying games consoles, then games to play on them, cloud gaming means fans can stream titles via the internet rather than owning physical copies.

Microsoft has already invested a lot in this space, as it sees the future of gaming as people playing on their phones, consoles, internet TVs and other devices.

The deal would also give it some very popular games titles to be able to compete more with the likes of Sony, which has consistently opposed it.

Sony's position is that its PlayStation would have restricted access to some of the world's most popular titles, which would be bad for gamers.

# data[].attributes.attachment_link.title
Microsoft boss: Activision Blizzard deal block is bad for Britain

# data[].attributes.attachment_link.description
By Tom Espiner & Will Harris Business reporters, BBC News One of Microsoft's senior leaders has hit out after the software giant's deal to buy US video game company Activision Blizzard was blocked by UK regulators.

# data[].attributes.attachment_link.title
Inflation in surprise jump to 10.4% in February

# data[].attributes.attachment_link.description
The rate of price rises in the UK jumped unexpectedly to 10.4% in February, official figures show.

# data[].attributes.headline
Government extending energy bills support

# data[].attributes.subject
Government extending energy bills support

# data[].attributes.attachment_link.title
Energy bill support to be maintained past April - sources

# data[].attributes.attachment_link.description
Sources in the energy industry say that firms have already priced in support for bills continuing.

# data[].attributes.attachment_link.readable_text
In the aftermath of Russia's invasion of Ukraine, Western leaders heralded a sanctions regime that would cripple the country's war machine.

Joe Biden claimed Russia's economy would be "cut in half", while Boris Johnson spoke of squeezing it "piece by piece."

A year has passed, but that great promise has been slow to deliver.

1:59

"The Russian economy and system of government have turned out to be much stronger than the West believed," President Vladimir Putin said in a speech to the country's parliament on Tuesday.

He was also flexing his muscles at an economic cabinet meeting last month: "Remember, some of our experts here in the country - I'm not even talking about Western experts - thought [gross domestic product] would fall by 10%, 15%, even 20%."

Instead, Russia shrunk by a relatively modest 2.2% and it is expected to grow by 0.3% this year, according to the International Monetary Fund.

It means the sanctions-hit country will outperform Britain.

Among Western leaders, these predictions will make for unpleasant reading.

3:43

Over the past year, sanctions have descended on Russia's economy but, to the surprise of most economists, it has weathered the storm.

This is largely down to the country's oil and gas reserves. Although Europe turned its back on Russian energy exports, the country was able to exploit delays in imposing the ban, which helped bolster its public finances.

Revenues held up strongly thanks to a global spike in energy prices and a successful reorientation of trade to China and India.

Russia was already sitting on a comfortable cushion.

Record high trade surpluses following the invasion came after years of conservative fiscal policies which allowed the country to amass a fund that it is now deploying in the war against Ukraine.

The country has been quietly sanctions proofing its economy for years.

0:36

Russians are enjoying record low unemployment and wage growth that has helped them to weather the worst of rising inflation.

They're still cautious about spending during times of economic uncertainty, but the government is trying its best to encourage them by hiking minimum wages and pensions.

While economic data is not wholly reliable, nor does it provide a full view of the strains Russian society is under, the domestic economy has not collapsed in the way some had warned.

President Putin is in a triumphant mood but it may not last for long as cracks are starting to show.

Oil revenues are slipping now that Western countries have introduced a price cap on Russian Urals, its main crude export blend, and the country's public finances are deteriorating as a result.

At the same time Russia is having to ramp up military spending and is relying on sales of foreign currency - Chinese yuan - to support the rouble. Last year may have exceeded expectations, but the sting of Western sanctions is only just starting to be felt.
Jobs
Living standards in Russia have been supported by record high wage growth and low unemployment.

When the war first broke out, analysts expected the departure of foreign companies to lead to mass job losses.

Instead, unemployment fell to a record low of 3.7% as Western firms handed over their businesses to local partners, which helped to maintain employment.

However, the headline unemployment rate is disguising a massive drop in the size of the workforce.

Hundreds and thousands of skilled workers have left or fled the country, either to fight or find work elsewhere - estimates range from 0.4% to 1.4% of Russia's workforce. This is weighing on economic growth, with the country's central bank warning recently: "The capacity to expand production in the Russian economy is largely limited by the labour market conditions."

As in Britain, where a shrinking labour market is affecting the country's economic outlook and putting pressure on inflation, Russia's fortunes will also depend on how well the size of its workforce recovers.

Tatiana Orlova, economist at Oxford Economics, said: "There is anecdotal evidence that some of those who left in panic in March or September have since returned, due perhaps to their being unable to find an equivalent job abroad or because they still had family and property back in Russia."
Wages
The tight labour market has led to robust wage growth - especially for IT professionals, construction workers and hospitality staff - which is boosting living standards. Wage growth in Russia is almost keeping pace with inflation and the government is hiking pensions and the national minimum wage, which will go up by another 10% next January after rising by 20% last year.
Consumer spending
Oil revenues get a lot of attention but consumer spending is still the dominant part of the country's economy and the government is hoping that the extra money will encourage Russians to go out and spend, something they have been cautious about indulging in over the past year.

It may have a large task on its hands, however. Many analysts expect Russia to launch a new offensive in the coming weeks in an effort to capture the whole of Donbas. If the country's leadership announce a new wave of mobilisation then consumer confidence will likely drop again, causing households to prioritise saving over spending.

"The savings-to-disposable income ratio will rise again and stay elevated until the fighting abates, hampering authorities' efforts to revive household demand," Ms Orlova said.
Business investment
Another round of mobilisation could also start weighing on business confidence. In the early days of the conflict economists were convinced that business investment would collapse at its fastest pace in decades but that did not happen.

Bumper profits for oil, gas and fertiliser producers helped fund business plans, with fixed investment increasing by 6% in 2021.

As Russia diverted its energy exports to Asia, the country required a massive increase in infrastructure.

This also helped boost the country's manufacturing sector, although not uniformly. The country's car industry, for example, collapsed last year as manufacturers struggled to access key component parts and tools from the west. Others are coping by accessing parts from Turkey, which is yet to participate in the international sanctions.
Oil and gas
Attempts to strangle Russia's economy were immediately stifled by Europe's heavy reliance on Russian oil and gas exports, which make up about 40% of the country's revenues.

Russia successfully exploited this.

In the nine months that it took for the EU to agree and implement a bloc-wide ban on Russian oil exports, Putin's regime enjoyed record fiscal surpluses as the country benefited from soaring wholesale prices, with its current account surplus jumping by 86% to $227.4bn.

This gave Russia a giant cushion to help fund the war effort and strengthened its currency, helping keep the price of imports low and dampening inflation.

During this time the country was also able to redirect supply to India and China, where its overall crude and fuel oil exports reached a record high of 1.66 million barrels a day last month.
A more challenging 2023
This year will be more challenging.

The country's public finances are already starting to weaken as lower energy prices weigh on revenues. A $60 a barrel price cap on Russian crude oil - imposed by the EU, G7 and Australia in December - means the country is being forced to sell oil at a considerably discounted price compared to the global Brent benchmark.

The cap was recently extended to refined petroleum products as well.

Russia's budget deficit came in at £20.8bn in January as income from oil and gas fell by 46% over the year. At the same time, government spending increased by 59% over the year.

Economists identified these as early signs of strain, with the country having to sell more Chinese currency and issue local debt to support itself.

However, they were still relatively sanguine about the country's prospects.

Sofya Donets, chief Russia economist at Renaissance Capital, said: "The fiscal deficit expanded in 2022 but remained still moderate at 2% - below the pandemic or the great financial crisis levels."

She added: "With the public debt below 20% of GDP the financing is hardly an immediate source of the stress, though a sustainable decrease in oil and gas revenues will call for a medium-term fiscal consolidation and non-oil tax increase, we believe.

"This consolidation, however, is yet not that urgent and could be delayed by up to two years, we assume."

Analysts said the country had scope to increase the tax intake by levelling windfall tax on energy and fertiliser producers.

Crucially, Russia is able to meet its financing needs comfortably at home.

Both the government and corporations have very low levels of external debt and the government has built up a robust sovereign wealth fund.

"We need to remember Russia has spent the best part of 10 years sanctions proofing its economy," said Liam Peach of Capital Economics.

"What all this meant was being cut out of global capital markets and sanctions on various corporates, banks and the government didn't really have much of an impact on their financial needs, because they were quite low. So Russia's government, for example, could go eight months without issuing any debt."

# data[].attributes.attachment_link.title
Russia's economy has weathered the West's sanctions - but how?

# data[].attributes.attachment_link.description
In the aftermath of Russia's invasion of Ukraine, Western leaders heralded a sanctions regime that would cripple the country's war machine. Joe Biden claimed Russia's economy would be "cut in half", while Boris Johnson spoke of squeezing it "piece by piece." A year has passed, but that great promise has been slow to deliver.

# data[].attributes.attachment_link.readable_text
Sales of some fruit and vegetables have been limited by most of the country's largest supermarkets, Tesco, Asda, Aldi and Morrisons.

The UK government has said it is largely down to bad weather in Europe and Africa.

There is also the impact high electricity prices are having on produce grown in greenhouses in the UK and the Netherlands.

The UK's largest supermarket, Tesco, and discounter Aldi have said they are putting limits of three per customer on sales of tomatoes, peppers and cucumbers.

Asda has capped sales of lettuces, salad bags, broccoli, cauliflowers and raspberry punnets to three per customer, along with tomatoes, peppers and cucumbers.

And Morrisons has set limits of two on cucumbers, tomatoes, lettuces and peppers.

Tomatoes and peppers seem to be the worst affected but it's unclear whether this is simply because they are popular.

Other major supermarkets have also been hit by the shortages but have not yet introduced limits for customers.

Former Sainsbury's chief executive Justin King told the BBC that limits were being put in place to prevent other retailers buying stock.

"Even High Street greengrocers, when they can't get their stock from wholesalers, will start buying off the [supermarket] shelves."

Why is there a shortage?

In the winter months the UK imports around 95% of its tomatoes and 90% of its lettuces, most of them from Spain and north Africa, according to trade group the British Retail Consortium (BRC).

But southern Spain has been suffering unusually cold weather and in Morocco crop yields have been affected by floods, while storms have caused ferries to be delayed or cancelled.

It led to Morocco barring exports of tomatoes, onions and potatoes to West African countries earlier this month as it tried to protect exports to Europe.

The UK also gets some produce at this time of year from domestic growers and the Netherlands. But farmers in both countries have cut back on their use of greenhouses to grow winter crops due to higher electricity prices.

The National Farmers' Union has called for more support for UK growers, noting the horticulture sector was not included in the government's support scheme for energy-intensive industries.

How long will it last?

The shortages are only expected to last "a few weeks" until the UK growing season begins and supermarkets find alternative sources of supply, according to the BRC.

It added that supermarkets were "adept" at managing supply chain issues and were working with farmers to ensure there was enough fresh produce for customers.

On Thursday, Environment Secretary Therese Coffey said the situation would "last about another two to four weeks".

The Lea Valley Growers Association - which produces around three-quarters of the UK's cucumber and pepper crops - says some producers have delayed planting crops due to high energy costs over the winter.

Has Brexit had an impact?

Anecdotal evidence suggests the UK has been bearing the brunt of the shortages, but problems have also been reported in Ireland, which is part of the EU. Other European countries appear less affected with shelves across continental Europe, from Spain to Poland, heaving with fresh produce.

Wholesalers, importers and retailers the BBC has spoken to suggested the UK may be suffering because of lower domestic production and more complex supply chains, as well as a price-sensitive market.

But they said Brexit was unlikely to be a factor.

However, Ksenija Simovic, a senior policy adviser at Copa-Cogeca, a group which represents farmers and farming co-operatives in the EU, said Brexit wasn't the primary reason but it hadn't helped.

In her view, businesses within Europe benefit both from being closer to where products are grown, and from simpler, better-coordinated supply chains.

Ultimately, she thinks, if there is a shortage of supply then the produce that is available is simply more likely to remain within the Single Market.

"It doesn't help that the UK is out of the EU and single market, but I don't think this is the primary reason the UK is having shortages," Ms Simovic added.

The full impact of the Brexit changes have also yet to be felt when it comes to fresh produce entering the country from the EU.

Customs declarations are required, but border controls are not due to be implemented until 1 January 2024 - while imports from Morocco, which is outside the EU, are already subject to border checks.

Are you seeing food shortages? Get in touch.

# data[].attributes.attachment_link.title
Why is there a shortage of tomatoes and other fruit and vegetables in the UK?

# data[].attributes.attachment_link.description
Sales of some fruit and vegetables have been limited by most of the country's largest supermarkets, Tesco, Asda, Aldi and Morrisons. The UK government has said it is largely down to bad weather in Europe and Africa. There is also the impact high electricity prices are having on produce grown in greenhouses in the UK and the Netherlands.

# data[].attributes.attachment_link.title
AQA Economics Papers 1 and 2 Exam Advice

# data[].attributes.attachment_link.description
tutor2u is a leading support service for A-Level, GCSE, and Vocational students and teachers preparing for assessments, mocks and final exams.

# data[].attributes.headline
Tutor2U Revision Blast - Economic Growth

# data[].attributes.subject
Tutor2U Revision Blast - Economic Growth

# data[].attributes.headline
Tutor2U Revision Blast - Costs, Revenue & Profit 

# data[].attributes.subject
Tutor2U Revision Blast - Costs, Revenue & Profit 

# data[].attributes.headline
Tutor2U Revision Blast - Demand & Supply Side Policies

# data[].attributes.subject
Tutor2U Revision Blast - Demand & Supply Side Policies

# data[].attributes.headline
Tutor2U Revision Blast - Market Structures

# data[].attributes.subject
Tutor2U Revision Blast - Market Structures

# data[].attributes.attachment_link.title
A-Level Economics Revision Blast | Market Structures | 10 Feb 2021 - Bing video

# data[].attributes.headline
Tutor2U Revision Blast - Quantitative Skills

# data[].attributes.subject
Tutor2U Revision Blast - Quantitative Skills

# data[].attributes.attachment_link.readable_text
Think about it... What is the price elasticity of demand if the price of the product is zero? Find out by using Seneca for free now!

Are you ready for your A Level Economics exam?

If yes, let the #1 free revision site help you prepare for your exam with questions, GIFs, instant feedback, videos and animations. We have it all covered with free Economics revision courses created by senior examiners for every exam board.

If no, still let the #1 free revision site help you prepare for your exam with questions, GIFs, instant feedback, videos and animations (and give it your best shot!). We have it all covered with free Economics revision courses created by senior examiners for every exam board.

Seneca helps you identify your strengths and weaknesses and lets you focus on the areas that need improvement.
Why do 2,500,000 students revise with Seneca?

Learn 2x faster (according to 1,200 student RCT)

More fun & more effective

Identify your strengths and weakness with concepts broken down into bitesize chunks that you can remember, learn and understand

Stay engaged for longer & don't drift off with GIFs and animations

Study from the best exam board specific Economics content

Quality assured content written by only the smartest senior examiners

Use for more than just Economics. Check it out for A Level Business, A Level Psychology, A Level Politics, A Level Maths, or A Level History!

Are you getting bored of flipping through these densely-populated Economics revision guides? Try increasing your price elasticity of demand? Most students have a hard time concentrating on something that is not engaging at all. This is why you should try Seneca - for your market structures, business objectives or GDP curiosities.

But also, think about it... What is the price elasticity of demand if the price is zero? Find out by using Seneca for free now!
Which exam boards do we cover?
The platform has been created by the best engineers and neuroscientists, combining the best of tech and science into one smart learning algorithm. Could it be your unfair advantage come exam day?

Our adaptive learning algorithm identifies the areas that you need to improve on. It will then automatically repeat these Economics sections in a variety of question formats and between predetermined time intervals, based on your exact knowledge, memory & performance. This triggers your brain the most effective and is based on neuroscience principles such as imagery and spacing.

So whether you're 6 months or 6 hours before your Economics exam. Going through the revision course will give you an edge over other students. What do you think? Ready to see your Economics knowledge score?
Free Economics Revision

# data[].attributes.attachment_link.title
Seneca | Free A Level Economics Revision Tool

# data[].attributes.attachment_link.description
Think about it... What is the price elasticity of demand if the price of the product is zero? Find out by using Seneca for free now! Are you ready for your A Level Economics exam? If yes, let the #1 free revision site help you prepare for your exam with questions, GIFs, instant feedback, videos and animations.

# data[].attributes.attachment_link.readable_text
Exam Support

Level:

AS, A-Level

Board:

AQA

Last updated 2 Jan 2019

Here is a key topic revision checklist & knowledge organiser for the AQA A Level Economics specification. Use this document to help check the completeness of your notes and plan revision ahead of Year 13 mocks and the real exams in the summer!

- - - - - - - - - - - -

Download the AQA A Level Economics Specification Checklist (pdf)

- - - - - - - - - - - -

Essential Revision Resources for AQA A Level Economics

© 2002-2023 Tutor2u Limited. Company Reg no: 04489574. VAT reg no 816865400.

# data[].attributes.attachment_link.title
AQA A Level Economics Topic Revision Checklist

# data[].attributes.attachment_link.description
Here is a key topic revision checklist & knowledge organiser for the AQA A Level Economics specification. Use this document to help check the completeness of your notes and plan revision ahead of Year 13 mocks and the real exams in the summer!

# data[].attributes.body
Paper 2 - The National & International Economy

# data[].attributes.attachment_link.title
AQA A-Level Macroeconomics Revision - PMT

# data[].attributes.attachment_link.description
Summary notes and past exam questions for AQA Economics A-Level Macroeconomics - The National & International Economy

# data[].attributes.body
Paper 1 - Markets and Market Failure

# data[].attributes.attachment_link.title
AQA A-Level Microeconomics Revision - PMT

# data[].attributes.attachment_link.description
Summary notes and past exam questions for AQA Economics A-Level Microeconomics - Individuals, Firms, Markets & Market Failure

# data[].attributes.attachment_link.description
The operation of markets and market failure