Bank of England boss says ‘more aggressive’ rate cuts could be on the way

Bank of England Governor Andrew Bailey has said interest rate cuts could become ‘more aggressive’, sparking falls in the value of the pound.

He said that, if inflation remains in check, the Bank might be able to be ‘more activist’ over reducing borrowing costs.

The pound fell by nearly 1% against the US dollar and the euro – to 1.317 US dollars and 1.193 euros respectively – after he told The Guardian newspaper that rate cuts could become ‘a bit more aggressive’.

OpenAI raises £5bn in largest ever funding round

ChatGPT maker OpenAI has raised $6.6bn (£5bn) in its latest funding round, the largest such deal of all time, valuing the company at $157bn (£118bn).

The deal makes OpenAI one of the most valuable start-ups in the world, with the funding round topping the bottom $6bn raised by Elon Musk’s xAI earlier this year.

The funding was led by investment firm Thrive Capital, but also included tech giants Microsoft and Nvidia, among others; however, reports said Apple did not take part despite having been involved in the talks.

Bank payments could be delayed by three days under new anti-fraud rules

Bank payments could be delayed by up to three days under new rules that would give banks more time to investigate potential fraud.

The Government said it was proposing laws that will extend the time that payments can be stalled by up to 72 hours.

Currently, a bank has until the end of the next business day to either process of refuse a payment made by a customer.

Google brings more AI to search engine in ‘significant’ update

Google has announced a number of artificial intelligence-powered updates to its search engine, calling them ‘some of our most significant Search updates to date’.

From Thursday in the UK, users of the Google app on both Android and iOS will be able to use their voice to ask a question as they point their phone camera at an object or subject.

The technology giant has also confirmed that it would begin rolling out a similar tool to ask questions while recording a video to early testers on its Search Labs programme, saying its AI tools would be able to ‘make sense of the video and your question put together’ before producing an AI Overview, the firm’s AI-generated query responses, as well as helpful resources from the web.

Angelina Jolie’s Ferrari 250 GT Coupe Pininfarina could fetch up to £673,000 at auction

A Ferrari 250 GT Coupe Pininfarina owned by Hollywood actor Angelina Jolie is heading under the hammer at auction next month where it could fetch up to £673,000.

The Italian coupe, one of just 353 ever produced, was unveiled in 1958 at the Grand Palais in Paris and on November 20 it’ll be sold at auction nearby at the Christie’s Exceptional Sale in the heart of the French capital.

The 250 GT represented a collaboration between Ferrari and famed coachbuilders Pininfarina, a partnership that has led the pair to create some of the most sought-after cars ever made.

Fuel prices fall by 6.5p in September

The average price of petrol and diesel dropped by 6.5p in September, prompted by a continued fall in the cost of a barrel of oil.

Representing the ninth biggest monthly drop since 2000, the data from RAC Fuel Watch shows that an average litre of unleaded now comes in at 134.79p – down from 141.26p at the start of the month – while diesel dropped from 146p to 139.5p. As a result, drivers are now saving up to £3.60 a tank every time they fill an average-size family car.

It is believed that the falling prices reflect a drop in the price of oil, which has come down from $78 at the beginning of September to $72 at the end. In July, the price of a barrel of oil was closer to $90.

Thursday on Car Dealer

Peter Waddell launches unfair dismissal case against Big Motoring World as he claims ‘disability discrimination’

Peter Waddell, founder of Big Motoring World, is pursuing legal action against the used car supermarket, alleging unfair dismissal, harassment, and disability discrimination. This follows his controversial removal from the company, which he claims was based on a flawed investigation. Waddell’s legal team argues that he was not given a fair opportunity to respond to misconduct allegations and was discriminated against due to his dyslexia and partial deafness. While no date for the tribunal has been set, six entities, including Big Motoring World’s holding company, are named as respondents.

Used car dealer Car Giant sees profits turn to loss due to revaluation of land

Car Giant, a major used car dealership, reported a loss in 2023 due to a revaluation deficit of £50.6m on its land, following a surplus of £18.6m in 2022. Despite this, operating profits increased to £31.3m from £23.5m the previous year, and turnover rose to £491.2m from £397.9m. The company attributes its pre-tax loss of £22.4m (compared to a £42.3m profit in 2022) to the revaluation. Directors remain optimistic due to future expansion plans linked to the HS2 development.

Car salesman sentenced for selling UK insurance write-off at dealership in Republic of Ireland

Patrick Doyle, a former car salesman from Byrnes Garage in County Wexford, was ordered to pay legal costs after selling a Ford Fiesta in 2020 without disclosing that it had been previously written off in the UK. Despite providing the buyer with a history check indicating no damage, Doyle failed to reveal the car had been classified as a Category D Insurance Loss in the UK. Irish law mandates that dealers ensure cars are safe and disclose full history to buyers. Doyle pleaded guilty to misleading the buyer and was fined €1,000 for legal costs.

Aston Martin grows UK dealer network with three new sites spread across the country

Aston Martin is expanding its UK dealer network with three new showrooms, including the £10m Aston Martin Birmingham in Solihull. The site features a bespoke ‘Q by Aston Martin’ lounge and has created 30 jobs. JCT600 is also opening a showroom in Leeds, and Marshall Motor Group will represent the brand in Sevenoaks. These investments align with Aston Martin’s growing portfolio of ultra-luxury models.

Dealers urged to avoid price cuts with used car demand stronger than seasonal norms

Auto Trader has advised used car retailers to avoid unnecessary price cuts, as the market remains robust with strong demand. Its data shows used cars sold faster than last year, with September stock levels down 5.4%, while demand increased 8%. Older electric vehicles are performing well, selling in 19 days, but nearly-new EVs are more challenging, taking 43 days to sell due to new EV discounts.

New research finds EVs are up to 50% more expense to repair than ICE vehicles

Research from Warranty Solutions Group (WSG) shows electric vehicle (EV) repair costs are 30-50% higher than comparable internal combustion engine (ICE) vehicles. Common EV issues include expensive battery charge control modules and power distribution boxes. Additionally, a Cap HPI study found that EVs have significantly higher service, maintenance, and repair costs over three years, due to the need for specialised technicians and complex electronic systems, further driving up costs.

ChargeGuru lights up London to raise awareness of insufficient at-home EV charging solutions

ChargeGuru has launched a campaign to address the lack of electric vehicle (EV) charging infrastructure for UK flat residents. A survey revealed that 53% of flat residents plan to switch to EVs by 2029, but nearly 70% rely on costly public chargers. ChargeGuru’s campaign, which includes lighting up famous London landmarks, aims to raise awareness of at-home charging solutions, encouraging property managers to invest in infrastructure.

Mini is ‘moving towards a leather-free’ future for its interior materials

Mini is looking to ditch ‘traditional’ interior materials for its cars in favour of ‘greener’ alternatives.

With an expanding range of vehicles – including the new Aceman which has joined the firm’s line-up of EVs – the brand is furthering its commitment to lower CO2 production in the future. The wider BMW Group has already announced plans to establish ‘a climate-neutral business model over the entire value chain by the year 2050’.

One way that the firm aims to reduce its CO2 emissions is in the material manufacturing process and is looking to focus on the use of 2D knitted materials instead of traditional leathers.

Drivers on major roads face record delays

Drivers using major roads in England face a record level of delays, official figures show.

Average hold-ups on carriageways managed by National Highways reached 11.0 seconds per vehicle per mile (spvpm) in the year to the end of June, according to Department for Transport data.

That is the longest time in records dating back to March 2016, when the figure was 8.6spvpm. The statistics relate to motorways and major A roads.

Vauxhall lowers prices of Corsa and Astra EVs

Vauxhall has slashed the cost of its Corsa Electric, Astra Electric and Astra Sports Tourer Electric models to help increase the ‘accessibility of its electric vehicles’.

The brand’s Corsa Electric Design now starts at £29,045 – significantly less than the £32,445 required before this price change – while the long-range version, which brings up to 248 miles between charges, now starts at £30,440. It follows on from the introduction of Corsa Electric Yes model which is priced at £26,895.

The Astra Electric Design is now priced at £34,945 for this specification of car, or £37,240 and £39,395 for GS and Ultimate grades respectively.

The markets

The pound slumped to its worst single-day performance for more than a year on Thursday after the governor of the Bank of England signalled ‘more aggressive’ rate cuts could be on the way.

The pound was down 1.13% at 1.312 US dollars and down 0.82% at 1.190 euros with the The FTSE 100 finishing 8.34 points, or 0.1%, lower to end the day at 8,282.52.

Elsewhere in Europe, the Cac 40 ended 1.32% lower for the day and the Dax index was down 0.78%.

Weather outlook…

he UK will today experience a mix of sunny spells and cloudier conditions.

Most areas will remain dry, but western regions, particularly Northern Ireland and western Scotland, may see patchy rain along with breezier conditions.

It will be a chilly start in many areas, with some mist and fog possible overnight in rural parts of England and Wales.

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The post Oct 4: ‘Aggressive’ interest rate cuts; OpenAI raises £5bn; New anti-fraud rules; Jolie’s Ferrari appeared first on Car Dealer Magazine.