Bank of England poised to cut UK interest rates for second time this year

UK borrowing costs are set to be cut for the second time this year, despite tax changes and a Donald Trump victory in the US casting uncertainty over the future path of interest rates.

Most economists think policymakers at the Bank of England will opt to reduce interest rates to 4.75% on Thursday.

Rates currently sit at 5% after being cut by 0.25 percentage points in August, the first reduction since 2020, then kept the same in September. Since then, the latest official data showed UK Consumer Prices Index (CPI) inflation fell to 1.7% in September, the lowest level since April 2021.

Asda to cut 475 jobs and orders staff back to office three days a week

Asda is to cut 475 head office jobs and order staff back to the office for at least three days a week as part of a major shake-up.

The overhaul of its operations comes as the UK’s third largest supermarket chain looks to arrest a slump in sales over recent months. It also comes after the latest change in leadership at the private equity-owned retailer.

In an internal email from chairman Lord Stuart Rose and board director Rob Hattrell on Tuesday, Asda confirmed that 475 workers will be made redundant at its head offices in Leeds, West Yorkshire, and Lutterworth, Leicestershire – less than 10% of the retailer’s head office workforce. Head office workers will need to be present at one of its main office locations for a minimum of three days a week from January next year.

Revised Vauxhall Mokka arrives priced from £24,705

Vauxhall’s updated Mokka has gone on sale with prices starting from £24,705.

The popular crossover has been given a refresh on its exterior, with headline changes being new headlights, new colours and new steering wheel and digital screens.

Prices start at £24,705 for a standard non-hybrid 1.2-litre Mokka, while prices for the hybrid version start from £27,305. Switch to electric power and the Mokka comes in at £33,245. All versions are available to order now.

The markets

The FTSE 100 fell on Wednesday, reversing early gains as investors grew more nervous following Donald Trump’s US election win.
London’s blue-chip index lost 5.71 points, or 0.07%, to end the day at 8,166.68.

At the end of the day in Europe, Frankfurt’s Dax index fell 1.14%, while the Cac 40 in Paris had closed down 0.51%. In New York, the S&P 500 had gained 2.14%, while the Dow Jones was 3.25% higher.

On currency markets the pound was trading 1.12% lower against the dollar at 1.2896 and had risen 0.64% against the euro at 1.2008.

Kamala Harris vows to ‘continue this fight’ in election concession speech

Kamala Harris has said ‘we must accept the results of this election’ as she encouraged supporters to continue fighting for their vision of the country after her loss to Donald Trump.

The Democratic vice president said the battle would continue ‘in the voting booth, in the courts and in the public square’. ‘Sometimes the fight takes a while,’ she said.

‘That doesn’t mean we won’t win.’ Harris delivered her remarks at Howard University in Washington DC, her alma mater and one of the country’s most prominent historically black schools, in the same spot where she hoped to give a victory speech. ‘While I concede this election, I do not concede the fight that fuelled this campaign,’ she said.

Starmer seeks ‘strong, special relationship’ with US after Trump election win

The UK will work with Donald Trump on economic and security issues, Sir Keir Starmer said as he insisted the ‘special relationship’ will prosper with the new president-elect.

Sir Keir was among the first world leaders to congratulate Trump as the government sought to build bridges with the president-elect after the Republican politician’s campaign filed a legal complaint about Labour activists supporting rival Kamala Harris.

Senior Labour figures, including foreign secretary David Lammy, have also been strident in their criticism of Trump in the past.

Wednesday on Car Dealer

Marshall Motor Group sees profits plummet in latest set of accounts

Marshall Motor Group’s profit before tax dropped 62% to £16.4m, attributed to higher stocking costs and inflation. Despite selling 21 dealerships and facing declining used car sales, revenue stayed near £3.6bn. A £25m dividend was still declared.

Auto Trader looks to ‘revolutionise automotive retailing’ with new AI platform for car dealers

Auto Trader has launched a new AI suite ‘Co-Driver’ which aims to revolutionise automotive retail by streamlining listings for dealers. Features include Smart Image Management, AI-Generated Descriptions (coming 2025), and Key Selling Points, optimising ad efficiency with data-driven, automated enhancements.

Budget does little to stimulate new EV interest with car buyers instead set to turn to used market

Carwow’s latest survey shows the Autumn Budget has discouraged new car and EV purchases, with 30% of buyers now preferring used vehicles. Used car inquiries rose 63% year-on-year. Only 19% are more likely to consider EVs, while 77% feel the Budget lacked support for motorists.

BMW sees profits tumble in Q3 profits fall but brand remains bullish

BMW’s Q3 profits fell 61% to €1.7bn (£1.4bn) due to a sales slump in China and delivery delays from a braking system issue affecting 1.5 million cars. Revenue dropped 15.7% but BMW expects to meet its full-year targets.

Xavier Martinet named as new Hyundai Motor Europe president and CEO

Xavier Martinet will become Hyundai Motor Europe’s new president and CEO, succeeding Michael Cole, who steps down after 15 years with the company. Martinet brings 27 years of automotive experience, including senior roles at Renault Group and Dacia.

Audi Group profits collapse 91% on back of China slowdown and EV slump

Audi Group’s Q3 earnings fell 91% to €106m (£88.4m), driven by declining sales in China and high operational costs, including potential restructuring at its Brussels plant. Total deliveries dropped 10.9%, impacting brands like Bentley and Ducati as well.

Weather

Cloudy and murky for most today, reports BBC Weather. It should remain dry but there’s the chance of the odd spot of drizzle in some places. It’ll be brightest in northern Scotland. Temperatures still unseasonably high at 14 degrees.

Cloudy skies will remain into tonight, although it will be clearer in northern Scotland.

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The post Nov 7: Interest rates cut likely; Asda cuts jobs; PM congratulates Trump; New Mokka prices appeared first on Car Dealer Magazine.