Tech Price Rises

Apple is increasing the price of MacBooks and iPads worldwide due to rising memory and storage chip costs. The iPhone maker has hiked the prices of some laptops and tablets by almost 20%, saying the electronics industry is facing an "unprecedented challenge" due to an "extraordinary surge" in demand for chips to power AI data centres. "We have never seen a component price increase this much, this quickly," the company said - adding it was working to find solutions. Not long after Apple's announcement, Xbox said it had decided to significantly raise the price of its popular gaming console for the second time in less than a year due to the current "components crisis". The Microsoft-owned company said on Thursday that the price of its basic console will go up by $100 (£75) to $499, while the price of a console with more memory will go up by $150, to $749. New prices will take effect from August. Xbox previously hiked the price of its consoles in October by $20-$70, meaning the price of a new console will be 30% to 40% more expensive than it was this time last year.The company added that while the cost of memory and storage has already more than doubled, it expects the costs to double again by 2027. That seemingly leaves the door open for Xbox to further raise prices. Apple's and Xbox's price hikes follow a slew of firms increasing device prices to help them absorb rising hardware costs.

BBQ - How much will price rises impact the sales?

Tech Price Rise

VAT Cut on Family Days Out

 

Families are expected to get cheaper access to theme parks, zoos and museums as well as kids' meals as a temporary VAT cut comes in to force on Thursday for the school summer holidays. Ticket prices at various attractions are among the activities where VAT will be reduced from 20% to 5% in what the goverment said would help with the cost of living. But families, charities and firms said the measure will do little to help squeezed budgets, with some doubting the tax saving would be passed on to customers. VAT will be reduced on children's meals served in restaurants as well as kids' and family tickets for cinemas, theatres, concerts, shows. and exhibitions. Also included are adventure parks, nature reserves and wildlife parks. There will be free bus travel for children aged between five and 15 in England. The government said the scheme will cost around £300m. Businesses can choose whether or not to pass on the discount to customers. Pub chains Wetherspoons and Greene King, as well as Nando's will be among those who say they will pass on tax savings to customers in the form of cheaper meals.

BBQ - Why might businesses not pass on the savings to customers?

VAT Cut

Ferrari Boss Quits Over Luce

 

Ferrari's marketing boss has quit after 16 years at the company just weeks after a backlash over the launch of the supercar maker's first-ever electric car, the Luce. The firm announced this week that Enrico Galliera would leave the role of chief marketing and commercial officer. He will be replaced by former BMW Italy head Massimiliano Di Silvestre in July. The new Ferrari Luce, the brainchild of iPhone designer Sir Jony Ive, is unlike anything the Italian carmaker has ever created - so is the backlash it is facing. But internet critics, investors and even politicians have hit out at the Luce - which is Italian for "light". The firm's shares fell 8% the day after the unveiling, as a host of memes mocked the $640,000 (£475,625) car, which is also its first five-seater. It comes as the global motor industry faces a number of major challenges, including fierce competition from Chinese carmakers. The Luce is certainly as fast as many supercars: 0-60mph (96km/h) in about 2.5 seconds, with a top speed of more than 190mph.But it is the way it looks that has drawn the most criticism. Former Ferrari chairman Luca Cordero di Montezemolo told reporters on Tuesday that the Luce is "risking the destruction of a legend" and the firm should remove its iconic badge from the car.

BBQ - Do you like the new design of the Ferrari Luce?

Ferrari Luce

Ashley Bid to Takeover Boss

Businessman Mike Ashley's Frasers Group has made a takeover offer for German fashion brand Hugo Boss. The retail group already owns just over a quarter of Hugo Boss, having steadily built up the stake since 2020, but said on Wednesday it wanted to buy the rest of it for €1.98bn (£1.73bn). Hugo Boss said it would "thoroughly examine the offer and issue a reasoned statement". Frasers, formerly known as Sports Direct, owns House of Fraser, Game, Jack Wills, Evans Cycles and many other brands. It is also the largest shareholder in Boohoo but has had a frosty relationship with the firm. Because it has grown its shareholding so much, Frasers is now close to the 30% ownership level that German law requires it to make an offer for the whole company. The deal would value Hugo Boss at €38 a share, higher than the €36.5 it closed at on Wednesday.

BBQ - Why do you think Mike Ashley wants to complete this takeover?

Hugo Boss Takeover

SpaceX Goes Public

 

Last Friday for the first time investors will be able to buy and sell shares in Elon Musk's Texas-based SpaceX, a company that is planning to colonise Mars and put artificial intelligence (AI) data centres in space. It is set to be the biggest ever public sale of shares and will make SpaceX one of the US's top 10 largest listed firms. A higher-than-usual proportion of those shares is being made available to individual investors, but its sheer size means many investment funds will end up with a stake in SpaceX too. SpaceX is currently owned by Musk and other private investors, but they are launching what is known as an initial public offering, or IPO. On Friday, millions of new shares in the company will start trading on the stock market. The IPO has raised at least $75bn and gives investors the chance to buy into a business whose activities range from space exploration and satellite communication to the social media site X and the controversial AI platform Grok. SpaceX is separate from Musk's most well-known company, the electric car maker Tesla, although it is thought the two may end up merging next year. There are more than 550 million shares available, which will start trading at $135 (£100) each. Investors must decide if they think the shares are worth that much. And once they start trading their value could quickly rise or fall depending on whether the wider market thinks that initial price was too low or too high.

BBQ - Would you buy a share in SpaceX?

SpaceX Shares

Metrocentre for Sale

 

One of the country's biggest shopping centres has been put up for sale, ahead of a major redevelopment. The owners of the Metrocentre in Gateshead have confirmed the centre has been put on the market to "support the next phase of its development", which includes plans to build thousands of homes around the site. Reports suggest Frasers Group - owned by former Newcastle United owner Mike Ashley - is in talks to buy the shopping centre, but the company has declined to comment on any potential interest. The company said it had invested £60m in the centre since 2020, which had helped increase footfall to 16 million for the first time since the pandemic. A target sale price has not been made public, but the centre is expected to fetch upwards of £500m. The Metrocentre and its surrounding brownfield land has been earmarked to become a major new neighbourhood known as Metro Riverside. The plans are a collaboration between the Metrocentre Partnership and Gateshead Council and would see thousands of homes built on land near the River Tyne. It is not known how the sale of the Metrocentre will affect the MetroRiverside development. However, the development is still at an early stage and no plans have yet to be formally approved.

BBQ - What is the future of shopping centres?

Metrocentre

Cod Prices Increase

 

Fishing quotas in the Atlantic and conflicts around the world have pushed the price of cod higher than ever before, meaning chippies are having to diversify. More and more takeaways are now offering alternative fish species, such as hake, pollock, and monkfish, as lower-priced options. But even with changing menus, there has still been a deluge of chippies closing. At its peak around a century ago, there were approximately 35,000 fish and chip shops across the UK. There are now about 10,000, and industry leaders are concerned more could disappear as prices rise.Margins are tight, and businesses are having to think of new ways to balance the books. It is also difficult to convince the paying public to change their habits, even when a portion of hake is priced at £6.50 compared to £8.20 for cod. As well as diversifying by adding different species of fish to menus, some restaurants believe concentrating on customer service and retaining loyal diners is the key.

BBQ - What price would be too much for fish and chips or is it already too high?

Cod Prices