The UK’s competition watchdog appears to have scored a victory against Ryanair. over the airline’s policy of charging parents to sit with their children on flights.
Ryanair has announced a “minor policy tweak” means “free parent seats” will be available in the rear of its aircraft for future bookings.
The move comes two weeks after the Competition. Markets Authority (CMA) announced it was investigating the £8 mandatory fee Ryanair charges a parent to sit with their children.
The CMA said the Irish carrier’s terms. conditions require at least one parent to sit with their children, including those with disabilities, and bills them about £8 a flight to book a seat. Its investigation would examine whether this was a breach of consumer law. if passengers weren’t being shown the total price of their flight upfront.
Ryanair had previously criticised the “bogus investigation”, saying it looked forward to disproving the CMA’s “false” claims”.
The airline said that “like all adults who select a reserved seat, adults travelling with children pay one reserved seat fee,. can select reserved seats beside them for up to four children on the same booking FREE OF CHARGE”.
A key measure of US inflation has hit its highest level since April 2023. as US consumers are hit by a cost of living squeeze.
The PCE price index increased by 4.1% year-on-year in May, up from 3.8% in April.
Nic Puckrin, a former Goldman Sachs analyst, explains why this could encourage the Federal Reserve to lift US interest rates:
double quotation mark “The Fed’s preferred inflation gauge is flashing red. At 4.1%, it’s the hottest reading in over two years. That’s an uncomfortable number for anyone with a mortgage or credit card balance. because it reduces the chances the newly hawkish Fed will backtrack from its intentions to raise rates this year rather than cut them.
There is one reason not to panic, though. Today’s figure doesn’t yet capture the recent fall in oil prices, which was a big driver of inflation coming back. If next month’s reading drops sharply, the pressure to lift rates could ease as quickly as it built. New Fed chair Kevin Warsh is also looking at faster. real-time ways of tracking inflation, some of which suggest prices may be cooling more than the official figures show.
For households, the message for now is to plan as though borrowing is about to get more expensive. But it’s worth watching next month’s inflation data closely, because the picture could still change fast.”
Just in: the US economy grew faster than previously thought in the first quarter of this year.
US growth in Q1 2016 has been revised up to an annual rate of 2.1%. up from the previous estimate of 1.6%.
That means quarter-on-quarter growth of just over 0.5%, below the UK’s 0.6% growth. ahead of the eurozone where GDP shrank by 0.2%.
The US Bureau of Economic Analysis says the upgrade “primarily reflects a downward revision to imports. which are a subtraction in the calculation of GDP, that was partly offset by a downward revision to consumer spending.”
UK energy debts have grown to record levels. as households struggle to pay their bills as the Iran war drives up costs.
New data from regulator Ofgem show that the average debt level for a customers in arrears with their electricity bill rose to £1,876 in the first quarter of the year,. to £1,623 for gas.
Gillian Cooper, Director of Energy at Citizens Advice, says this is “extremely worrying”, but not surprising.
double quotation mark At Citizens Advice. we’ve seen a staggering 70% increase in the number of households we support with energy debt since 2021. Soaring debt is hurting vulnerable households and ultimately driving up the costs of everyone’s bills.
“The government needs to act to make sure these record levels don’t continue to spiral. It should support Ofgem to finally introduce the long-delayed Debt Relief Scheme to help millions in need of support.
“And. while it may seem a long way away during a heatwave, the Government must ensure its ready to help people with targeted support this winter. That will bring relief to the 9.4 million households worried about paying their bills when the cold. wet weather returns.”
National Energy Action policy analyst James Mabey says customers should be offered more debt relief, explaining:
double quotation mark ‘This debt has built up because bills have gone beyond what many low-income households can afford,. its effects are not limited to those already in arrears. Allowing debt to persist builds additional costs into future price caps. while also increasing the risk of more harmful responses such as households having prepayment meters forcibly installed. It also risks excluding low-income households from the benefits of wider market reform, including the opportunities linked to smarter tariffs. home upgrades.’
‘The right response is to scale debt relief. As our new paper, Clearing the Decks, sets out, that means enabling. expanding Ofgem’s Debt Relief Scheme with additional funding so more of this debt can be cleared, reducing harm and lowering costs across bills.’
Ryanair CEO, Michael O’Leary, is scathing about the CMA’s criticism of the airline’s family seating policy.
He claims families may lose out under today’s changes, saying:
double quotation mark Instead of promoting competitiveness. lower fares for consumers, the CMA is on a mission to force Ryanair to adopt the less transparent and less consumer-friendly family seating policy applied by most other airlines – just because it’s the industry standard.
We will reluctantly adjust to this industry standard as we don’t want to waste time explaining to misguided regulators how badly they misunderstand what is in the best interest of UK. Europe’s consumers. Under our revised family seating policy, families may have to wait until after they have checked in to find out their seat allocation. are more likely to be seated at the rear of the cabin but at least the CMA will be able to claim they have done something for consumers, but sadly most consumers won’t notice.”
Ryanair has also insisted that its long-standing family seating policy “fully complies with all relevant laws. regulations” – even as it changes it following criticism from the CMA.
Here’s the statement from Ryanair. explaining how it will now allow adults to sit with their children without charging a fee (and will probably stick them at the back of the plane).
double quotation mark Ryanair, Europe’s largest airline, today confirmed that its long-standing family seating policy fully complies with all relevant laws. regulations. Ryanair does not charge any fee for children to sit beside their parent or accompanying adult. Like all adults who select a reserved seat, adults travelling with children pay one reserved seat fee,. can select reserved seats beside them for up to 4 children on the same booking free of charge. This means that parents travelling with children pay for only one (adult) reserved seat – at a discounted rate –. pay nothing for the 4 other reserved seats for the children travelling with them. This policy has given families certainty of seat allocation at the time of booking. which families have valued as much as they have valued Ryanair’s lowest fares.
For bookings from today (25 June). adults travelling with children, who do not wish to select or pay for a reserved seat, will be advised of their (free of charge) seat allocation after they have checked in for their flight, as is the case with most other airlines in Europe. Families opting for this random allocation of seats beside each other are likely to be seated towards the rear of the aircraft cabin, as front rows tend to be reserved. sell out first. Families who prefer to choose their seats at the time of booking. secure premium front rows will be allowed to do so by paying a seat reservation fee, in line with the policy applied by most other European airlines.
This minor policy tweak will align Ryanair’s family seating policy with that of most other EU airlines, which responds to the desire of Europe’s regulators to stifle innovation. progress. The tweak will be revenue-neutral for Ryanair while families will continue saving €billions every year by choosing to travel on Europe’s lowest fare airline.
Former Bank of England chief economist Andy Haldane told the BCC conference today. radical measures were needed to provide start-ups companies with the capital they need to grow.
He said there was a gulf between the needs of companies. the capital available, even though the international financial system is awash with money looking to find a home.
double quotation mark “Unfettered free markets have not worked. That is a lesson of the last 30 years.”
He said ministers had recognised the need to intervene to fill a void in funding for small. medium-sized businesses (SMEs).
The new National Wealth Fund was making an impact,. it is modest, added Haldane, who is understood to be providing advice to Andy Burnham.
And so the government should adopt radical reforms of the tax system. there are trillions of pounds available for investment.
The British pension system is an obvious place to look,. is “the only one in the world that does not have a home bias”, Haldane points out.
He wants to create a home bias without the state needing to take control of pension schemes. A fiscal-free solution that influences pension schemes to take a closer look at UK firms.
double quotation mark “Is there a third way, something that shifts the balance of incentives towards British businesses, while leaving those choices [of exactly what to invest in] in the hands of asset managers. there owners.
As luck would have it we do. It’s our taxation system, which the perfect vehicle.
double quotation mark “The government extends more than £50bn in pension tax relief. more than £10bn in tax relief for ISAs.”
These reliefs are made without any rules forcing investors to channel funds into UK companies, Haldane points out.
He said an obligation attached to pension tax relief would not be “about constrained choices. this is about having a home bias.”
He said surveys showed households would like their savings to be invested in UK firms.
He characterised British business and British capital owners as “true thoroughbreds” that need to be brought together.
There were no details from Haldane about how to develop new tax rules. which will be complex if they follow the pattern of pension rule changes over recent decades.
No doubt that will be left to the Treasury and HMRC to work out.
If Haldane is the advisor to Andy Burnham that some say he is. then this radical thinking could become a centre piece of the new government.
However. the City has already lobbied vociferously against it, presenting their own surveys showing UK investors are not interested in a patriotic law because they want to get the highest return from wherever in the world they can find it.
The UK’s competition watchdog appears to have scored a victory against Ryanair. over the airline’s policy of charging parents to sit with their children on flights.
Ryanair has announced a “minor policy tweak” means “free parent seats” will be available in the rear of its aircraft for future bookings.
The move comes two weeks after the Competition. Markets Authority (CMA) announced it was investigating the £8 mandatory fee Ryanair charges a parent to sit with their children.
The CMA said the Irish carrier’s terms. conditions require at least one parent to sit with their children, including those with disabilities, and bills them about £8 a flight to book a seat. Its investigation would examine whether this was a breach of consumer law. if passengers weren’t being shown the total price of their flight upfront.
Ryanair had previously criticised the “bogus investigation”, saying it looked forward to disproving the CMA’s “false” claims”.
The airline said that “like all adults who select a reserved seat, adults travelling with children pay one reserved seat fee,. can select reserved seats beside them for up to four children on the same booking FREE OF CHARGE”.
Online card. gift seller Moonpig said its customers continued to trade up to bigger cards and add gifts despite a squeeze on household budgets from higher energy and food bills.
Its most popular personalised Father’s Day card involved super-imposing the paterfamilias on a full English breakfast with almost 5m people choosing to upload family photographs to add to various cards on the site for the event.
Father’s Day gifts included 37 tonnes of chocolate – equivalent to six African elephants –. 164,000 pints of beer at peak.
Catherine Faiers. the new chief executive of the London-based technology firm, said there was “real reassurance” about the UK consumer, despite inflation driven by the conflict in the Middle East, as when “things really matter in people’s lives” they were choosing to spend more.
The group’s revenue from gifts linked to cards rose 6.5%, including new ranges from Next. Boots, and shoppes also opted for more premium services such as fast-track delivery. However, revenue from standalone gifts and experiences fell, partly as Moonpig took a lower cut from new partners providing experiences.
Faiers said trading had been more volatile during the hot weather and football, but “we haven’t seen fundamental softness.”
Sales for the group rose 6.5% to £373m. underlying pre-tax profits increased by a better than expected 13% to £76.5m in the year to 30 April.
The strong performance on Asia-Pacific markets overnight hasn’t really been matched in Europe.
The pan-European Stoxx 600 is up by 0.64% so far today, as investors welcome drop in the oil price. signs that Middle East oil flows are moving towards more normal levels.
Strong financial results from chip firm Micron overnight have also lifted the mood. reports Raffi Boyadjian, lead market analyst at Trading Point:
double quotation mark Equities are rebounding on Thursday, lifted in part by the ongoing slide in oil prices,. crucially, concerns about AI valuations were allayed, at least for now, by stellar earnings from rising AI star, Micron Technology.
Having already skyrocketed by 700% over the past year. Micron’s stock surged by more than 15% in after-hours trading yesterday after the chipmaker reported much better-than-expected quarterly results. Micron beat both its revenue. earnings per share estimates, but investors were mostly impressed by its forecasts for the current quarter, when it expects revenue to hit $50 billion versus estimates of $43.6 billion.
The boom in AI has fuelled demand for memory chips. leading to shortages that may last well into next year, pointing to more gains for chipmakers.
Back at the British Chambers of Commerce annual conference, BCC chief Shevaun Havilland, has told Labour: “Back business. we will deliver growth.
double quotation mark “Extra taxes would be the road to ruin”.
The UK government will halve the amount of tariff-free steel imports allowed in an attempt to counter a global oversupply of cheap Chinese metal. bolster its beleaguered local industry.
New “safeguards” will be introduced on 1 July. will coincide with similar new limits being introduced by the EU for the same purposes.
At the same time tariffs on steel imports above the duty-free quotas will be doubled to 50% of the product’s value.
The quotas replace existing pre-Brexit rules that set import levels across the EU. The UK had retained the rules after leaving the bloc.
Under the new rules. the existing quota of tariff-free steel allowed into the UK will be reduced by 51%, less than the 60% reduction proposed in March. That means only 3.2m tonnes can be imported duty-free into Britain in future.
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