Tuesday, November 3, 2026
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Sterling steady after upbeat data, still set for weekly loss

The week’s data has left the door ajar for the central bank to lower borrowing costs again by the end of the year

International News via Reuters:

The British pound was steady on Friday but still headed for a weekly loss against the dollar and the euro as softer-than-forecast inflation data offset Friday’s upbeat retail sales, consumer confidence and business activity figures. 

While another rate cut from the Bank of England in 2025 is not a foregone conclusion, the week’s data has left the door ajar for the central bank to lower borrowing costs again by the end of the year. 

Sterling was little changed against the dollar on Friday at $1.3319, but was set for a weekly drop of 0.9%. 

Against the euro, the pound was little changed at 87.17 pence, but was set to have its first weekly fall against the single currency in four weeks. 

UPBEAT DATA 

Data on Friday painted a slightly rosier picture of the economy heading towards the end of the year.  

British retail sales unexpectedly rose in September, boosted by technology sales and demand for gold from online jewellers, official figures showed; meanwhile British consumer sentiment rose in October to its joint-highest level since August 2024.

Separately, business activity showed tentative signs of a recovery, the preliminary UK Composite Purchasing Managers’ Index published by S&P Global showed on Friday.

“We tend to be of the view that consumer confidence and retail sales, both of which were stronger today, are secondary or even tertiary indicators, to some extent,” said Dominic Bunning, head of G10 FX strategy at Nomura. 

“We’re still looking for some underperformance (in the pound), in general,” Bunning added, citing the recent weak labour market report and inflation figures. 

TO CUT OR NOT TO CUT? 

Investor expectations for BoE rate cuts have swung around this week, although markets still see a greater chance of a cut this year than the central bank keeping rates unchanged. 

Markets had earlier this week raised their bets on further BoE easing in 2025 after British inflation unexpectedly held steady, coming in below expectations from a Reuters poll of economists and the central bank itself. 

Futures markets now imply about a 65% chance of a quarter-point rate cut from the BoE by the end of the year, although that is down slightly from around a 75% chance before Friday’s data. 

“Markets have rightly priced in a greater degree of easing from the central bank after softer-than-expected inflation and rumours of a more disinflationary Budget than previously expected,” said Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics. 

“But the growth picture still suggests that the neutral rate is high and that rates are only modestly restrictive.”

Reporting by Samuel Indyk; Editing by Toby Chopra

One year on, victim of Valencia floods found buried in mud

Nearly 240 people died when floodwaters swamped homes, underground car parks and vehicles on the outskirts of Valencia, Spain’s third-largest city, on October 29 last year

International News via Reuters:

The body of a 56-year-old man has been found buried in mud a year after he was swept away in deadly flash floods in southeastern Spain, authorities said on Thursday.

Nearly 240 people died when floodwaters swamped homes, underground car parks and vehicles on the outskirts of Valencia, Spain’s third-largest city, on October 29 last year.

The man was one of three people still unaccounted for and had already been officially declared dead, said a local court in Catarroja – one of the towns most affected by the floods.

He was discovered on Tuesday during earth-moving operations in the town of Manises, about 40 km (25 miles) downstream from Pedralba, where he went missing, it added.

Under Spanish procedure, judges are called in when bodies are discovered.

The same court, overseen by Judge Nuria Ruiz, is carrying out a judicial investigation into the delayed emergency response to the floods, which rank among Spain’s worst natural catastrophes in modern history.

A text alert sent by Valencia’s regional government warning people to take shelter arrived when buildings were already under water and many people were drowning.

On Thursday, the court summoned a local journalist who had lunch with Valencia’s conservative regional leader, Carlos Mazon, on the day of the floods.

Reporting by Emma Pinedo; Editing by David Latona and Andrew Heavens

UK businesses show tentative signs of a turnaround, PMI survey suggests

The preliminary UK Composite Purchasing Managers’ Index published by S&P Global, covering the services and manufacturing sectors, sped up slightly to 51.1 this month

International News via Reuters:

British businesses might be at a turning point with the manufacturing sector showing signs of a recovery and inflation pressures receding, but caution is still weighing on firms ahead of next month’s government budget, a survey showed on Friday.

The preliminary UK Composite Purchasing Managers’ Index published by S&P Global, covering the services and manufacturing sectors, sped up slightly to 51.1 this month from September’s 50.1 which was barely above the 50 threshold for growth.

“October’s flash UK PMI survey brings hope that September was a low point for the economy from which business conditions are starting to improve,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said.

Economists polled by Reuters had mostly forecast a weaker pickup to 50.6.

Business confidence and new orders were both at their second-highest levels in a year – even if they remained weak by historical standards – and job losses were the smallest since May, the survey showed.

The gradual resumption of production at carmaker JLR – which was halted by a cyber-attack – was helping some manufacturers.

But October’s survey findings were consistent with only a 0.1% pace of quarterly growth, Williamson said.

“Companies are clearly treading cautiously in terms of spending, investment and hiring ahead of the upcoming budget, the outcome of which has the potential to once again sway the business mood in the months ahead,” he said.

Finance minister Rachel Reeves is widely expected to raise taxes in her budget on November 26, having increased social security contributions for employers in her first budget last year.  

S&P said the preliminary PMI reading for the services sector hit a two-month high of 51.1 in October, up from 50.8 in September. 

The smaller manufacturing PMI showed a stronger improvement to a 12-month high of 49.6 from 46.2 despite a fall in exports due in part to U.S. President Donald Trump’s trade tariffs.

In news likely to be welcomed by the Bank of England as it gauges when it can resume cutting interest rates, prices paid by firms across services and manufacturing – while still increasing quickly – rose by the least since November 2024.

Businesses increased the prices they charge at the slowest pace since June.

Writing by William Schomberg; Editing by Toby Chopra

‘Without new blood, no-one will carry the torch’

At the 60th PLP Annual General Conference, a call goes out to bring in young members

Jache Adams and Premier David Burt at the 60th PLP Delegates Conference. Photos by Ra’ees Tankard

Cultivating the future of the Progressive Labour Party…

This was a key focus of the opening night of the PLP’s 60th Annual General Conference last night.

Under the theme of ‘Leading for the Next Generation’, there was a call for the young to step forward, for those overseas to return home, and for older members to reach out into their communities.

Jache Adams, MP for Pembroke West and Minister of Public Works and Environment, gave an impassioned speech, tacitly acknowledging that some young people have been put off politics …


Later, Premier David Burt lauded the last General Election victory – an unprecedented 3rd win for him as PLP leader – and reiterated his Government’s plans for the future.

He also returned to to the theme of bringing in new members, and emphasised this month’s offer of free party membership for people aged under 35.



Premier David Burt acknowledged that this is his penultimate General Conference as party leader.

Thanking his wife and children, he said leading the PLP has been one of the greatest honours of his life, and he will hand over the baton with pride.


FULL SPEECHES

Apple loses landmark UK lawsuit over app store commissions

The Competition Appeal Tribunal (CAT) ruled against Apple after a trial of the lawsuit, which was brought on behalf of millions of iPhone and iPad users in the United Kingdom

International News via Reuters:

Apple abused its dominant position by charging app developers unfair commissions, a London tribunal ruled on Thursday, in a blow which could leave the U.S. tech company on the hook for hundreds of millions of pounds in damages.

The Competition Appeal Tribunal (CAT) ruled against Apple after a trial of the lawsuit, which was brought on behalf of millions of iPhone and iPad users in the United Kingdom.

The CAT ruled that Apple had abused its dominant position from October 2015 until the end of 2020 by shutting out competition in the app distribution market and by “charging excessive and unfair prices” as commission to developers.

Apple – which has faced mounting pressure from regulators in the U.S. and Europe over the fees it charges developers – said it would appeal against the ruling, which it said “takes a flawed view of the thriving and competitive app economy”.

The case had been valued at around 1.5 billion pounds ($2 billion) by those who brought it. A hearing next month will decide how damages are calculated and Apple’s application for permission to appeal.

Thursday’s ruling comes after Apple was hit with a complaint to European antitrust regulators over the terms and conditions of its App Store under rules aimed at reining in Big Tech.

LANDMARK MASS LAWSUIT

Rachael Kent, the British academic who brought the case, argued Apple had made “exorbitant profits” by excluding all competition for the distribution of apps and in-app purchases.

Her lawyers argued at the start of the trial in January that Apple’s “100% monopoly position” allowed it to impose restrictive terms and excessive commissions on app developers, which Apple denied.

The CAT said in its ruling that developers were overcharged by the difference between a 17.5% commission for app purchases and the commission Apple charged, which Kent’s lawyers said was usually 30%. The CAT also ruled that app developers passed on 50% of the overcharge to consumers.

“This ruling overlooks how the App Store helps developers succeed and gives consumers a safe, trusted place to discover apps and securely make payments,” an Apple spokesperson said.

BOOST FOR UK’S ‘CLASS ACTION’ REGIME

The case was the first mass lawsuit against a tech giant to come to trial under Britain’s fledgling class action-style regime, which this year reached its 10th anniversary and has seen several multi-billion-pound cases certified for trial but with limited success for consumers so far.

There are, however, many other cases waiting in the wings, including one against Google over the commission it charges app developers for access to its Play Store.

That case is due to begin in October 2026 and will be heard alongside a similar claim by Epic Games, which is engaged in parallel litigation with Apple in the U.S.

Fellow tech giants including Amazon and Microsoft are also facing sizeable claims at the CAT.

Kent said in a statement that the ruling shows Britain’s collective action regime is working and “sends a clear message: no company, however wealthy or powerful, is above the law”.

($1 = 0.7451 pounds)

Reporting by Sam Tobin; editing by William James and Keith Weir

Dad and daughter brighten up our public spaces

As part of Art Month, we caught up with Keile Rabain, founder of Art by Keile, and her father and art partner Damon Rabain.

They are designers of the latest mural at the Michael Preece Softball Diamond, and they talkedabout their recent projects, which add colour to Bermuda’s public spaces. Together, the duo has created vibrant works that celebrate collaboration, family, and the island’s cultural identity.
In conversation with our Kendal Trott, Keile shares more about her creative journey, the dedication it has taken to become one of Bermuda’s most respected young artists, and the inspiration behind her growing body of work. 

Yen slides as traders eye new US sanctions, CPI data

The U.S. currency was last up 0.38% on the yen at 152.525 yen, while the U.S. dollar index, which measures the greenback against a basket of currencies, was last nearly flat at 98.925

International News via Reuters:

The dollar drifted higher against the yen on Thursday as traders waited for the delayed release of U.S. consumer inflation data on Friday and weighed fresh U.S. sanctions on Russian oil companies, which boosted oil prices.

The U.S. currency was last up 0.38% on the yen at 152.525 yen, while the U.S. dollar index, which measures the greenback against a basket of currencies, was last nearly flat at 98.925.

The week’s main scheduled focus is the inflation data being released despite the U.S. shutdown, to assist the U.S. Social Security Administration with its annual cost-of-living adjustment for 2026.

Although the Federal Reserve’s policy-setting focus has shifted from inflation to the state of the U.S. labor market, the numbers will be closely watched.

“The data will be significant for slightly different reasons to normal. Clearly the Fed has moved on from CPI, but we can still take that data and make some assumptions about consumer spending and growth,” Nick Rees, head of macro analysis at Monex Europe, said.

YEN ON THE SLIDE

New U.S. sanctions on major Russian suppliers Rosneft and Lukoil over Russia’s war in Ukraine sent oil prices up nearly 5% on Thursday, following British sanctions on the same two companies last week.

The U.S. Treasury Department said it was prepared to take further action as it called on Moscow to agree immediately to a ceasefire.

Multiple trade sources told Reuters that Chinese state oil majors had suspended purchases of seaborne Russian oil from the two companies, providing a further boost to prices.

The new sanctions were weighing on the yen, as well as other currencies tied to oil imports, said Marc Chandler, chief market strategist at Bannockburn Capital Markets.

“Japan’s a big importer of oil, and higher oil prices hurt,” he said.

Domestic factors also weighed on the yen, which was heading back towards last week’s seven-month low of 153.29 yen per dollar, which it hit this week after Sanae Takaichi, widely viewed as a fiscal and monetary dove, was chosen to lead Japan’s ruling party.

Now that Takaichi is installed as prime minister, the market is awaiting details of a stimulus package.

“Buying based on policy hopes from a Takaichi government has already run its course,” said Yutaka Miura, senior technical analyst at Mizuho Securities.

“The market is now at a point where it needs to assess concrete policies and their feasibility.”

OIL PRICE RISES

Smaller European currencies also attracted some market attention on Thursday, with the Norwegian crown appreciating on the rise in oil prices. [O/R]

The dollar was last down 0.42% on the Norwegian currency at 9.9717 crowns, dipping below the 10-crown level for the first time in two weeks, while the euro hit a one-month low of 11.568 crowns.

Elsewhere, sterling was down 0.25% at $1.332 having bounced back from some of its Wednesday fall on weaker-than-expected consumer inflation data that caused markets to increase their bets on another Bank of England rate cut this year.

The euro was up 0.06% at $1.162.

The Swiss National Bank’s first published meeting minutes did little to move the franc, which was weaker at 0.7949 per dollar.

Reporting by Hannah Lang in New York; additional reporting by Alun John in London and Kevin Buckland; Editing by Jacqueline Wong, Kim Coghill, Barbara Lewis, Alison Williams and Diane Craft

EU leaders set conditions for new climate goal

The EU is trying to pass a new target to cut net greenhouse gas emissions 90% by 2040 to put the bloc on track for net-zero emissions by 2050

International News via Reuters:

European Union leaders agreed on Thursday for the bloc to move ahead with setting a 2040 emissions target, which it is racing to do ahead of next month’s global U.N. climate talks, despite growing pushback on green measures from some member states.

The EU is trying to pass a new target to cut net greenhouse gas emissions 90% by 2040 to put the bloc on track for net-zero emissions by 2050 – seen by scientists as an essential step to avert the worst impacts of global warming.

The 2040 target aims to keep the EU on track between its existing legally binding commitment to cut emissions 55% by 2030, and the 2050 target. 

EU governments’ leaders agreed on Thursday to proceed with the 2040 target, but leave details for ministers to approve at a November 4 meeting. That is a challenging task, since leaders did not resolve key sticking points, including what share of the 90% emissions-cutting goal countries can meet by buying foreign carbon credits.

“None of us are questioning the goal of climate protection. All of us are of the opinion that we must combine this with the competitiveness of European industry,” German Chancellor Friedrich Merz said.

The leaders did agree to impose some conditions on the target, reflecting some capitals’ concerns over how to finance the low-carbon transition alongside priorities like defence against Russian aggression and revitalising businesses.

In their joint summit statement, EU leaders said the 2040 target should include a “revision clause” to potentially weaken it in future.

Countries including Poland have argued this is needed in case green technologies do not develop as planned, or economic conditions hamper the investments needed to achieve the climate target.

Wealthier western and northern countries – whose uptake of electric vehicles and renewable energy has surpassed that of poorer EU states – are more confident. But they, too, want more flexible targets, reflecting concerns including that their forests are struggling to absorb CO2 emissions because of problems including wildfires.

Leaders also demanded that if forests underperform on absorbing CO2 emissions, other industries will not be forced to cut emissions faster to deliver the 2040 goal.

TALKS TO FOCUS ON FINANCING AND FLEXIBILITY

Last month, the EU missed a U.N. deadline to pass its climate target, and it is racing to approve the goal before world leaders gather at the COP30 climate summit on November 6-7.

Despite worsening extreme weather worldwide, ambitious efforts to fight climate change are flagging. In the U.S., President Donald Trump has dismantled emissions-cutting measures.

EU government heads focussed their talks on the so-called “enabling conditions” – financing and supportive policies – needed to reduce greenhouse gas emissions, while avoiding higher energy bills for citizens and supporting businesses grappling with cheap Chinese imports and U.S. tariffs.

Dutch Prime Minister Dick Schoof said he expected the EU to stick to its climate goals – which, for 2030 at least, official data suggest the bloc is largely on track to meet. “But we will have to take a good look at how we keep them feasible for citizens and corporations,” he added.

EU TO AMEND MORE CLIMATE LAWS

Brussels has already scaled back numerous sustainability policies this year, in an attempt to contain political pushback, both from EU governments and trade partners including the U.S. and Qatar.

Seeking to shore up support for the 2040 climate goal, European Commission President Ursula von der Leyen told leaders ahead of their summit that the shift to a clean economy was Europe’s chance to revitalise industries and cut reliance on imports from China, which dominates manufacturing of technologies such as batteries and solar panels.

“This is a major business opportunity for Europe. Seizing it requires steadfastness and an unrelenting drive to face off our competitors, starting with China,” von der Leyen said in a letter seen by Reuters and dated October 20.

She also promised to amend some climate measures – including controlling prices in an upcoming carbon market for transport fuels, and strengthening the EU’s carbon border levy – a key demand of France. Brussels is also considering weakening its 2035 combustion engine ban after pressure from Germany and Italy. 

Reporting by Kate Abnett, Philip Blenkinsop, Andrew Gray, Julia Payne, Charlotte Van Campenhout, Alessandro Parodi, Bart Meijer, Miranda Murray; Editing by Nia Williams, Philippa Fletcher and David Gregorio

UK’s Reeves weighing income tax rise to tackle deficit, The Guardian reports

The discussions come as Reeves faces an estimated shortfall of more than 30 billion pounds ($40.26 billion), the newspaper reported

International News via Reuters:

British finance minister Rachel Reeves is considering raising income tax in next month’s budget to help reduce a multibillion-pound deficit, The Guardian reported on Thursday, citing sources familiar with the matter.

The discussions come as Reeves faces an estimated shortfall of more than 30 billion pounds ($40.26 billion), the newspaper reported. It said Reeves is in active talks over whether to break one of Labour’s key manifesto pledges, which include not to raise income tax.

The Guardian said officials were weighing options including an increase in the basic rate of income tax or changes to thresholds, though no final decision has been made.

A Treasury spokesperson did not immediately respond to a Reuters request for comment.

Reeves wants to balance day-to-day spending with tax revenues by the end of the decade. The current budget deficit stood at 71.8 billion pounds in the April–September period, up 17% year-on-year.

She has also signalled a desire for a larger fiscal buffer than the 9.9 billion pounds previously outlined, which has been eroded by downgraded economic forecasts and higher borrowing costs.

Earlier this month, Reeves said she was looking at tax and spending measures for next month’s budget on November 26.

($1 = 0.7451 pounds)

Reporting by Sam Tabahriti, Editing by Franklin Paul

‘Grocery discounts should not be universal’

OBA Leader Robert King says it makes no sense to give discounts to wealthy Islanders

The cost of living .. arguably the most pressing, hot-button issue for many Bermudians.

The PLP Government has put forward a number of initiatives, under the Affordable Bermuda Agenda, including a 20% reduction on prices for essential goods, starting on November the 1st.

So what’s the Opposition’s take?

Here’s the first part of Qian Dickinson’s interview with newly-elected OBA Leader Robert King.