Support the Guardian

Fund independent journalism with £5 per month

Business Today
Business live
UK retail sales slow as cost of living squeeze bites; BP profits beat forecasts
Live  
UK retail sales slow as cost of living squeeze bites; BP profits beat forecasts
Rolling coverage of the latest economic and financial news, as BP lifts share buybacks despite profits halving in 2023
Headlines
Retail  
UK’s January sales failed to revive consumer spending, say stores
UK’s January sales failed to revive consumer spending, say stores
Electric cars  
Make used EVs cheaper and tackle battery fears, peers tell ministers
Automotive  
UK electric vehicle maker Arrival enters administration with 170 jobs at risk
Pharmaceuticals  
Novo Nordisk parent buys US drug firm for $16.5bn to expand Wegovy supply
Technology  
Don’t wait for Post Office-style scandal before regulating AI, ministers told
Beauty  
Estée Lauder unveils plan to cut up to 3,100 jobs amid falling sales in Asia
Banking  
Lloyds and Santander accused of providing accounts for Iranian front companies
McDonald's  
Company records first sales miss in nearly four years amid boycotts
CBI  
Lobby group settles legal action with ex-chief Tony Danker
Hong Kong  
Company worker in pays out £20m in deepfake video call scam
OECD  
'Central banks must beat inflation before cutting interest rates'
Retirement  
UK state pension age will soon need to rise to 71, say experts
Energy  
Minister consulted BP over incentives to maximise oil production, FoI reveals
Airline industry  
Boeing may delay more 737 Max deliveries after incorrectly drilled holes found
Car industry  
Millionth pure battery electric car sold in UK after 20 years
Today's agenda
UK retailers struggled through January as cost of living pressures continued to hit consumers.

Spending in the shops rose by just 1.2% year-on-year in January, a sharp slowdown on the 4.2% recorded in January 2023, new data from the British Retail Consortium shows.

With inflation running at 4% in December, that indicates a drop in sales volumes.

The BRC also reports that people cut back on non-food items, with spending falling by 1.8% in the three months to January.

Food sales increased 6.3% year on year over the three months to January, slower than the 8% growth in January 2023.

Helen Dickinson OBE, chief executive of the British Retail Consortium, says: “Easing inflation and weak consumer demand led retail sales growth to slow. While the January sales helped to boost spending in the first two weeks, this did not sustain throughout the month.

"Larger purchases, such as furniture, household appliances, and electricals, remained weak as the higher cost of living continued into its third year."

Households on low incomes will start to receive a £299 cost-of-living payment today – the last of three payments totalling up to £900 paid to eligible households on means-tested benefits over 2023/24.

Separate figures from Barclays this morning have confirmed spending was weak last month: consumer card spending grew 3.1% year on year in January – below the current headline rate of inflation of 4%.

Meanwhile, oil giant BP has beaten profit forecasts this morning, despite a drop in earnings.

BP made adjusted earnings of almost $3bn in the final quarter of 2023, ahead of expectations of $2.76bn, but down on the $4.8bn profits made in Q4 2022 when energy prices were higher.

For the full year, BP’s profits roughly halved to $13.8bn from $27.6bn in 2022.BP will continue to pump money back to shareholders; it has announced a new $1.75bn share buyback – larger than the $1.5bn it executed in the last quarter – and is committed to $3.5bn worth of buybacks for the first half of this year.

The US dollar is trading at a 12-week high, as hopes of an early cut to US interest rates fade.

This has pushed the pound down to $1.2515 last night, its lowest level of the year.

Also coming up
• 7am GMT: German factory orders for December
• 8.30am GMT: Eurozone construction PMI for January
• 9.30am GMT: UK construction PMI for January
• 10am GMT: Eurozone retail sales for December
• 3pm GMT: RealClearMarkets/TIPP index of US economic optimism

We’ll be tracking all the main events throughout the day ...
Nils Pratley on finance
Vodafone and Three merger proposal isn’t as awful as it appears
Vodafone and Three merger proposal isn’t as awful as it appears
Opinion
Analysis  
It’s ‘national sickie day’ – is ill-health holding back the UK economy?
It’s ‘national sickie day’ – is ill-health holding back the UK economy?
Is AI really the biggest threat when our world is guided more by human stupidity?
Nouriel Roubini
Work until you’re 71? It could be time to echo the French – and get angry
Zoe Williams
Media
BBC  
Steve Coogan to return as Alan Partridge in mockumentary
Steve Coogan to return as Alan Partridge in mockumentary
Dad's Army  
Private Pike actor Ian Lavender dies aged 77
Spotlight
Will other cities copy Paris decision to hike parking charges for SUVs?
Automotive  
Will other cities copy Paris decision to hike parking charges for SUVs?
Very low turnout in vote to penalise owners of large cars suggests public still needs to be won over
Popular on business
BP’s green agenda all at sea as sinking profits forecast renews fossil fuel call
BP’s green agenda all at sea as sinking profits forecast renews fossil fuel call
Boeing may delay more 737 Max deliveries after incorrectly drilled holes found
UK to scrap ‘boiler tax’ after makers raise prices to cover any fines
Eurostar may cap services due to post-Brexit biometric passport checks, says station owner
Should the UK embrace higher net migration or rethink the economy?
Larry Elliott
Get in touch
If you have any questions or comments about any of our newsletters please email newsletters@theguardian.com
 

… there is a good reason why people choose not to support the Guardian.

Not everyone can afford to pay for the news right now. That's why we choose to keep our coverage of Westminster and beyond, open for everyone to read. If this is you, please continue to read for free.

Over the past 13 years, our investigative journalism exposing the shortcomings of Tory rule – austerity, Brexit, partygate - has resulted in resignations, apologies and policy corrections. And with an election just round the corner, we won’t stop now. It’s crucial that we can all make informed decisions about who is best to lead the UK.

Here are three good reasons to choose to support us today.

1

Our quality, investigative journalism is a scrutinising force at a time when the rich and powerful are getting away with more and more.

2

We are independent and have no billionaire owner controlling what we do, so your money directly powers our reporting.

3

It doesn’t cost much, and takes less time than it took to read this message.

Choose to power the Guardian’s journalism for years to come, whether with a small sum or a larger one. If you can, make the choice to support us on a monthly basis from just £2. It takes less than a minute to set up, and you can rest assured that you’re making a big impact every single month in support of open, independent journalism. Thank you.

 
Manage your emails | Unsubscribe | Trouble viewing?
You are receiving this email because you are a subscriber to Business Today. Guardian News & Media Limited - a member of Guardian Media Group PLC. Registered Office: Kings Place, 90 York Way, London, N1 9GU. Registered in England No. 908396