Trump Car Tariffs

 

President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US. Trump said the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Taxes on parts are set to start in May or later. The president said the measure would lead to "tremendous growth" for the industry, promising it would spur jobs and investment in the US. But analysts have said the move is likely to lead to the temporary shutdown of significant car production in the US, increase prices, and strain relations with allies. Trump's latest move threatens to upend global car trade and supply chains. The US imported about eight million cars last year - accounting for about $240bn (£186bn) in trade and roughly half of overall sales. Mexico is the top supplier of cars to the US, followed by South Korea, Japan, Canada and Germany. Tariffs are taxes charged on goods imported from other countries. The companies that bring the foreign goods into the country pay the tax to the government. Firms may choose to pass on some or all of the cost of tariffs to customers. Trump's plan for car tariffs is his latest in his wider drive to protect American businesses and boost manufacturing within the US. But while the measures can protect domestic businesses, they also raise costs for businesses reliant on parts from abroad. Analysts have estimated that tariffs on parts just from Canada and Mexico could lead to costs rising by $4,000-$10,000 depending on the vehicle, according to the Anderson Economic Group. Vehicles are the UK's biggest export to the US, totalling 101,000 last year worth £9bn.

What are your opinions on the trump tariff? What would you do as the UK government or as a UK car manufacturer?

Trump Tariffs

WH Smith to Disappear from High Street

After more than two centuries as a staple of British high streets, WH Smith is set to disappear from town centres following a £76 million sale to Modella Capital. The iconic retailer, founded in 1792, has decided to sell its 480 high street stores to focus exclusively on its more profitable travel outlets located in airports, train stations, and hospitals. This strategic shift comes as WH Smith's travel business now accounts for 75% of its revenue and 85% of its trading profit. The high street stores will be rebranded as TG Jones, a name chosen to echo the heritage of WH Smith while marking a new chapter under Modella Capital's ownership. The new owners plan to maintain the current range of products and services, including Post Office and Toys “R” Us outlets, while exploring new offerings to revitalize the brand. This move reflects the broader challenges facing high street retailers, as changing consumer habits and economic pressures continue to reshape the retail landscape. Despite the end of an era for WH Smith on the high street, the brand's legacy will endure through its travel stores and online presence

What are your thoughts on this significant change in the retail sector? Do you think the rebranding will help TG Jones succeed where WH Smith struggled?

WH Smith

Egg-spensive Easter Eggs

Easter egg prices have surged by up to 56% compared to last year, according to a recent report by Which? This dramatic increase is attributed to a significant drop in global cocoa production, driven by higher temperatures affecting the quality and quantity of cocoa beans. As a result, many popular chocolate treats have not only become more expensive but have also shrunk in size, a phenomenon known as "shrinkflation". For example, an 80g pouch of Terry's chocolate orange mini eggs at Lidl has increased from 99p to £1.35 while shrinking to 70g. Despite these rising costs, consumers can still find good deals by looking for special offers, comparing prices per gram, or waiting until Easter Sunday when many eggs are likely to be discounted. The price of chocolate in the UK has risen by 16.5% in a year, compared to a 4.4% increase for supermarket food and drink overall. At Morrisons, a 200g Cadbury Creme Egg 5 Pack Mixed Chocolate Box increased from £2.62 last year to £4 this year. Similarly, a Twix white chocolate Easter egg at Tesco rose from £5 to £6 while shrinking from 316g to 258g, making it 47% more expensive per 100g. This trend is not limited to Easter eggs; other chocolate products have also seen significant price hikes. For instance, Asda's Fruit & Nut Milk Chocolate 200g bar increased by 73%, from £1.33 to £2.30.

Given these rising costs and shrinking sizes do you think this will impact sales of easter eggs?

Easter Egg Prices

Cybertruck Recall

 

Thousands of Tesla Cybertrucks have been recalled in the US due to concerns about part of the electric car's trim falling off in the model's eighth and largest ever recall. The issue affects more than 46,000 trucks made starting in November 2023, which analysts say amounts to nearly all Cybertrucks. It comes as Tesla, which did not respond to a request for comment, grapples with falling sales amid a backlash against the firm and its boss Elon Musk Prior Cybertruck recalls involved failing windshield wipers, trapped accelerator pedals, possible loss of drive power to the wheels, and other issues.Tesla told NHTSA it had received about 150 claims from drivers about the issue but was not aware of any accidents caused by the problem. It estimated that the issue affected about 1% of vehicles involved in the recall. The issue is covered under a warranty for new owners, and the company will replace the piece free-of-charge. Tesla's shares have dropped nearly 40% since January, erasing the jump in value that it enjoyed after the 2024 US election. The fall has been significantly more than the overall drop in the US stock market over that period. The political backlash adds to the challenges the company had already been facing from increased competition and an ageing line-up of offerings. The Cybertruck was supposed to help reignite buzz around the brand and help it break into the lucrative market for pickup trucks in the US. It hit the roads in late 2023 and carries a starting cost of more than $72,000 (£55,500).

Tesla Cybertruck

Santander To Close 95 Stores

Santander has announced it is set to close 95 branches across the UK, putting 750 jobs at risk. The High Street bank said its customers were increasingly shifting to banking online and it aimed to start closing almost a quarter of its branches from June. As part of the changes, Santander will also reduce hours at 36 branches and remove the front counters from 18 others. It is the latest bank to announce branch closures, with Lloyds announcing 136 closures in January. The closures will leave Santander with 349 branches, down from 444. It said the areas to lose branches would be covered by 95 "community bankers" who will visit local communities on a weekly basis in facilities such as libraries. Santander said the changes were due to a "a rapid movement of customers choosing to do their banking digitally". It added digital transactions had increased by just under two thirds since 2019, with a similar drop for transactions in branches. About 750 staff will be at risk of redundancy if the proposals go ahead after consultation with the unions, the Spanish-owned bank said.

Santander Closures

Tesco Wage Rise

Tesco will lift pay for its store staff by 5.2% but will scrap the extra pay for working on Sunday. The UK's biggest supermarket chain said the hourly rate will go up by 43p to £12.45 from 30 March after reaching a deal with unions. It will raise pay again to £12.64 from the end of August - a little above the UK national minimum wage which is set to rise to £12.21 per hour from April. However, Tesco will also drop the current 10% pay bonus for Sunday shifts for all staff, which it had already stopped providing for new starters. Tesco's UK chief executive says the £180m spent on funding the pay increases is a "significant investment". The move comes as many big supermarkets raise pay to attract more staff in a tight labour market. In January, Sainsbury's said it will raise hourly pay by 5%, also in two phases, but said it was cautious about recruiting new staff in 2025 due to rising costs "to help manage a particularly tough cost inflation environment". The German-owned discount chain Lidl will also raise pay, it announced in February, from £12.40 per hour to £12.75. Chancellor Rachel Reeves announced in the October Budget that in April, along with the national minimum wage, employer National Insurance contributions will also rise. Businesses have said the extra costs from these changes will mean higher prices, job cuts, and shop closures, though unions have criticised firms for saying this.

Tesco Wage Rise

Cadburys x Biscoff

Cadbury has teamed up with Lotus Biscoff to launch a co-branded Dairy Milk bar. The milk chocolate tablet, available in 95g (rsp: £1.75), 95g PMPs (£1.69) and 105g (rsp: £2) formats, is studded with pieces of Lotus Biscoff’s famous speculoos biscuits. It would “tap into consumer interest in new flavours and textures, and drive cross-brand excitement”, said Cadbury. “Combining two delicious favourites is a great way to give consumers the best of both,” said Cadbury Dairy Milk brand manager Connor Gould. “As a result, the new Cadbury Dairy Milk Biscoff is sure to utilise consumer demand for unique flavours to help drive category growth,” Gould added. The launch is being supported by “eye-catching” co-branded PoS materials, along with social, influencer and seasonal content. The manufacturer said it would launch a co-branded Cadbury and Biscoff product in the UK, and a co-branded Milka and Biscoff product in Europe. The partnership also aimed to grow the Lotus Biscoff brand in India, by leveraging Mondelez’s extensive distribution network and local market presence in the country. It comes as a swathe of other fmcg brands have been innovating to cash in on the growing popularity of Biscoff.

BBQ - What other brand collaborations would you like to see?

Cadburys Biscoff

No Bonus For John Lewis Staff

Retailer John Lewis has said its staff will not receive a bonus for the third year in a row, despite reporting a jump in annual profits. The employee-owned retail partnership, which also includes the Waitrose supermarket chain, said profits rose by 73% to £97m last year. However, it has not restored the staff bonus, saying it would invest in its business and workers' pay instead. Chairman Jason Tarry said he was "determined to pay a bonus as soon as we possibly can" but that "will depend on where we are at the time". A company source added that John Lewis had no specific thresholds or criteria for reinstating the bonus. The John Lewis Partnership employs about 69,000 people, and earlier this month it said shop workers would receive a 7.4% pay rise this year. But this is the fourth time in five years that John Lewis has not paid a bonus. The string of freezes started in 2020 - the first time it had scrapped them since 1953 - after it was hit by Covid lockdown store closures. John Lewis said that while it expected the economic environment to be "challenging for our customers and our business" in the year ahead, it was still confident it could push up profits. John Lewis has been trying to win back customers with a recovery plan after a tough few years that saw it cut jobs and close several stores.

BBQ - Would workers prefer a bonus or a pay rise? What is the best form of motivation?

John Lewis

Tesco Trial Free Food Giveaway

 

Tesco is to begin a trial giving expiring food to customers for free at the end of the day as it tries to cut food waste. The supermarket will give away some already discounted "yellow sticker" items after 21:30 in some of its smaller Express stores in coming months. Tesco already donates expiring food to charities and foodbanks. It says it is taking this step to try to meet its goal to halve food waste. The company said the expiring food would be offered to charities and shop workers first, before customers could take it. Tesco is Britain's largest supermarket chain, with a 27.8% market share. It has 3,700 UK stores and about 750 more abroad. All major UK supermarket chains have partnerships to send surplus food to charities. The next big four after Tesco - Sainsbury's, Asda, Aldi and Morrisons - have also pledged to halve food waste by 2030. Aldi says it has achieved this already. Many supermarkets also offer steep discounts on expiring food. Tesco's trial, however, appears to be the first direct-to-customer policy in the UK. The firm has a target to cut its food waste by 50% this year, as part of its net-zero emissions push.

BBQ - Could there be any issues with Tesco giving away expiring food?

Tesco Free Food

Pizza Boosts Greggs Sales

Greggs, the UK's bakery powerhouse, is experiencing a notable sales boost, and while the legendary sausage roll still holds its crown, pizza is proving to be a significant driver of growth. The company's strategic expansion into hot food offerings, particularly pizza slices and boxes, has successfully captured a new segment of the market, especially during evening hours. This diversification strategy reflects Greggs' agility in responding to evolving consumer preferences. Notably, Greggs has surpassed £2 billion in annual sales, with a significant contribution from its expanded hot food offerings. Further more Greggs has seen a 13.8% increase in sales for the first half of 2024. Evening trade remained the brand's fastest growing daypart, accounting for 9% of company-managed shop sales in 2024. Beyond the enduring popularity of its classic pastries, the pizza range has demonstrated the company's ability to innovate and expand its appeal. The positive impact on sales underscores Greggs' effective approach to broadening its menu, solidifying its position as a go-to destination for affordable and convenient food, though the sausage roll's iconic status remains unchallenged

Greggs Sales

Boots Takeover

Boots, a cornerstone of the UK's retail landscape, is poised for a significant transformation as Walgreens Boots Alliance (WBA) is being acquired by US private equity firm Sycamore Partners in a deal valued at roughly $10 billion. This privatisation move comes as WBA grapples with evolving consumer behaviors, notably the surge in online retail, and increasing competitive pressures. The acquisition, with Sycamore Partners paying $11.45 per share, raises questions about the future of Boots' nearly 2,000 UK stores. Notably, WBA has faced a significant decline in market value, and this deal comes after previous restructuring efforts, including store closures. While Sycamore Partners has expressed commitment to WBA's brands, the potential for Boots to be spun off or sold separately remains a possibility, adding a layer of uncertainty to its future. The deal reflects the ongoing challenges in the retail pharmacy sector and the strategic shifts companies are making to adapt.

Boots Takeover

Mixue Bubble Floats on Stock Market

 

The global beverage landscape is witnessing a significant shift, as the bubble tea chain Mixue has made a remarkable debut on the Hong Kong Stock Exchange. This company, boasting a staggering number of outlets, over 45,000 globally, surpassing even Starbucks, saw its shares surge.  Mixue raised $444 million in its IPO, by offering 17 million shares, and the shares then jumped significantly on the first trading day. This highlights the immense popularity of its affordable ice cream and bubble tea offerings. Mixue's success is attributed to its strategic franchising model and focus on providing budget-friendly treats, resonating particularly well in markets facing economic challenges. With its vast network of stores across China and other Asian countries, Mixue's expansion reflects the growing global appetite for accessible and trendy beverages. This successful IPO signals strong investor confidence in Mixue's business model and its potential for further international growth, potentially disrupting the established order of the global fast-food and beverage industry.

Mixue Success

Aston Martin Cuts Workforce

Aston Martin has cut 170 jobs after losses widened by a fifth last year and fewer cars were sold in 2023 following a string of supply chain issues and production delays. The luxury auto manufacturer, which has its headquarters in Gaydon, Warwickshire, said it planned to axe 5% of the workforce as part of cost-cutting measures to return to profit. All of the company's departments have been hit, including manufacturing, office jobs and management. In a statement on Wednesday, the company said the aim was to make sure the company was "appropriately resourced for its future plans", and called the cuts a "difficult but necessary action". Aston Martin - famous for making fictional spy James Bond's cars - said it was targeting yearly savings of £25m and expected to hit about half of that total this year. Adrian Hallmark was appointed the company's new chief executive in September amid a ramping up of sales of its new Vantage and DBX707 models, which it said helped boost production volumes. The company also launched its flagship Vanquish model in September. Aston Martin said the launches helped boost sales later in the year as it started delivering more of the new models to customers, with wholesale volumes picking up 10% year on year in the second half compared with 2023. But the company's wholesale volumes for the whole year were still down 9% at 6,030 cars, pushing its pre-tax losses to gape by a further 21% to £289 million. It also saw its debt pile rise by 43% to £1.16bn during the year, while shares were down about 33% over the last year.

Aston Martin

Maple Water

While drinking tree sap does not immediately sound appealing, Canadian producers are hoping that it will be the next must-try soft drink around the world. We have all heard of maple syrup, which is made by boiling down the sap of maple trees to produce a thick, sweet, golden-to-brown coloured syrup that is typically poured over pancakes. What is far less well known is that you can drink the sap itself, which is called maple water. Clear in colour, it contains just 2% natural sugars, so it is only slightly sweet. A small but growing number of producers in Canada are now selling this maple water in bottles or cartons, after first giving it a filter and pasteurisation to kill off any microbes. Advocates point to the fact it is a natural drink, and makers hope that it can steal some sales from the existing similar product – coconut water. The latter is made from water that naturally forms inside coconuts. As Canada is far and away the world's largest producer of maple syrup – accounting for more than 80% of production – it is understandable that the nascent maple water sector is also Canadian. For the maple water industry as a whole, one recent report predicts big growth. It estimated that global sales in 2024 totalled $506m (£409m).

Maple Water

, externalwith that expected to jump to $2.6bn by 2033. By comparison, worldwide sales of coconut water reached $7.7bn in 2023,

, externawith that expected to grow to $22.9bn by 2029. So maple water has a long way to catc

Birkenstock Sandals Not Art

Birkenstocks may be cool enough for Barbie but the sandals do not qualify as works of art, a German court has ruled. The company had claimed its footwear could be classified as art and so was protected by copyright laws in a case it put forward to stop rivals selling copycat versions of the cork-soled sandals. But a judge dismissed the claim, saying the shoes were practical design items - a decision Birkenstock called a "missed opportunity for the protection of intellectual property". Birkenstocks' popularity means rivals often sell knock-off versions, prompting the firm to make the claim to protect what it called its "iconic design". In this case, Birkenstock took three manufacturers and retailers to court, seeking to protect four of its sandal designs. German law distinguishes between design and art when it comes to a product. Design serves a practical purpose, whereas works of art need to show a certain amount of individual creativity. Art is covered by copyright protection, which lasts for 70 years after the creator's death, whereas design protection lasts for 25 years from when the filing was made. Shoemaker Karl Birkenstock, born in the 1930s, is still alive. Since some of his sandals no longer enjoy design protection, the firm attempted to gain copyright protection by seeking to classify its footwear as art.

Birkenstocks