Top news
- Most expensive place to live in the world revealed
- US has '45% chance of recession' as markets wobble
- Pension schemes to be rated red, amber or green
- Top fixed rate bonds and ISAs on the market
- 'Game on' in mortgage market as major bank cuts rates below 4%
Essential reads
- The rise of 'doom spending' - what it is and how to stop
- Will 'the greatest chocolate bar ever' return? We asked Cadbury's...
- Cheap Eats:Where you've (probably) been going wrong with green curry
- Is equity release ever a good idea?
- Aldi's new copycat is much cheaper but what do nutritionists think?
- Where kids can eat for free or cheap
- Basically...Wills
- Best of the Money blog - an archive of features
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Walkers launches new crisp flavours | Ocado trialling reusable packaging | Octopus to extend energy bills support scheme
Walkers and Heinz have launched three new crisp flavours.
The crisps - Sausage Sarnie and Heinz Ketchup, Roast Chicken and Heinz Mayo, and Cheese Toastie with Heinz Beans - are inspired by classic sandwiches.
The limited-edition snacks are available at supermarkets from today in both 45g grab bags for £1 each and multipacks of five 25g bags for £1.65.
Ocado has startedselling products in refillable packaging as part of a trial.
The new initiative sees products such as pasta, rice and washing liquid placed in reusable containers when customers purchase products online.
The empty containers are then returned to drivers when another order is made and then washed and refilled for a new customer.
It will come at no extra cost to shoppers.
Simon Hinks, product director at Ocado retail, told Retail Gazette: "Our customers are already used to giving their bags back to our drivers for recycling – so this is a really sensible next step for us to help our customers reduce single-use plastic on products they buy frequently."
Octopus Energy will extend an energy bills support scheme for pensioners after the government removed winter fuel payments for millions of elderly people.
The energy supplier said it will continue its £30m assistance fund into this winter, and that pensioners who do not meet the new criteria for receiving state support will be eligible.
Labour said in July it is changing the rules around the government's winter fuel payments scheme so that it will no longer be universal for all pensioners in England and Wales.
Now, only pensioners on means-tested benefits will qualify for the help, which is estimated to take the payments away from about 10 million people.
Chancellor Rachel Reeves has said making the scheme more targeted was a "difficult decision".
You can read about the changes to the winter fuel payments here...
British Airways suspending flights to major city
The British airline has said it is dropping its daily flight to Beijing.
The flight has been removed from its schedule from 27 October, and the airline told Sky News it is "pausing" its route to the Chinese city.
"We're contacting any affected customers with rebooking options or to offer them a full refund. We continue to operate daily flights to Shanghai and Hong Kong," it said.
It did not say why the suspension was being put in place.
British Airways had been operating four weekly flights to Beijing's new Daxing airport on Mondays, Tuesdays, Thursdays and Saturdays.
Customers will still be able to purchase China Southern flights to Beijing on the British Airways website due to an existing joint business agreement.
The news comes weeks after Virgin Atlantic scrapped its UK flights to Shanghai, saying it was a "commercial decision" due to "significant challenges and complexities on this route".
Flight times to some Asian countries in particular are taking much longer due to having to avoid Russian airspace during its invasion of Ukraine, and it's thought this could be partly behind the decision.
Most expensive place to live in the world revealed
Geneva is the most expensive city to live in, according to new data.
Internet database Numbeo found in its cost of living index, which it publishes every six months, that the Swiss city had the highest overall cost of living score.
In second place was the Swiss city of Zurich while New York came in at third.
Perhaps surprisingly for anyone who lives in London, the capital city was not featured in the top 10 (it came in 13th).
As for other UK cities, Edinburgh came in 30th - just above Amsterdam - while Manchester and Glasgow were 53rd and 54th.
US cities made up much of the top of the list.
The database company looked at factors such as the cost of groceries, eating in restaurants, rental costs and how far local currency goes to formulate its results.
Where are the 10 most expensive cities in the world?
1. Geneva
2. Zurich
3. New York
4. San Francisco
5. Boston
6. Reykjavik
7.Washington DC
8. Seattle
9. Los Angeles
10. Chicago
US has '45% chance of recession' - as stock markets wobble
By Daniel Binns, business reporter
The Footsie is down again this morning as stock markets wobble over the state of the US economy - with JP Morgan predicting there is a 45% chance of a recession there next year.
The finance giant also upped its forecast for the chances of one happening this year in the world's largest economy to 35%.
Markets around the world had been gradually recovering in recent days following Monday's sharp falls, but the situation appears to be on the downward trend again on Thursday.
Asian markets also slumped earlier, with Japan's Nikkei 225 Index - which was among the biggest losers on Monday - down 0.7% at the close.
This morning the FTSE 100 is down more than 1%, while the FTSE 250 has fallen 1.4%.
The top gainer is insurance company Beazley, which is up more than 14% after it upgraded its outlook for the year.
The firm, which commands almost a tenth of the global cyber insurance market, also reported a doubling of its pre-tax profits for the first half of 2024.
Another riser is Ladbrokes owner Entain, which has gained 7.5%.
It comes after the gambling firm, which also owns Coral, upped its annual forecast after receiving a boost from betting on the Euros and Premier League.
The worst-performing companies on the index on Thursday include manufacturing firm Spirax Group, which has slipped 9%, and BT Group, which has fallen 5%.
However, in contrast to the stock market, the price of oil is continuing to recover this week.
A barrel of the benchmark Brent crude is currently priced at $78 (£61), up from $76.5 (£60) this time yesterday.
On the currency markets, £1 buys $1.27 US or €1.16 this morning, similar to Wednesday's rates.
The rise of 'doom spending' - what it is and how to stop
By Jess Sharp, Money reporter
Whether it's global warming, an impending economic disaster or the idea of never owning a home, young people are worrying about the future - and are "doom spending" to cope.
If you haven't heard of the term, here's a quick explanation:
Doom spending is basically spending money on short term, instant enjoyment, rather than saving it for the future, to cope with economic stress and worries.
It could be described as Gen Z's version of retail therapy.
To demonstrate that, here's a TikTok as an example...
A recent study by Credit Karma found 43% of millennials and 35% of Gen Zs doom spend to make themselves feel better.
Fuelled by social media, the trend has almost become the norm, with many young people taking to TikTok to complain about the state of their financial futures.
One viral video created by Maria Melchor, also known as @firstgenliving, has been viewed more than 1.7 million times.
In the clip, she says: "We can't afford anything else. Homeownership or starting a family is so out of reach that we are using that down payment or kid money on whatever it is that we can afford that will bring us the semblance of the kind of adulthood we were promised."
Thousands of videos have been posted online, with people sharing their experiences of doom spending, advising others how to avoid it, or branding the idea as stupid.
Louise Hill, the chief executive and co-founder of Go Henry, said young people were often influenced to buy things they don't need as they're continually exposed to new products online.
She pointed out the #TikTokMadeMeBuyIt trend, where users show off recent items they have bought online, as an example.
More than 8.4 million videos using the hashtag have been posted on TikTok.
"A lack of financial education can heighten this behaviour, as people lack key money management skills and the ability to differentiate between their needs and wants," Ms Hill told the Money team.
"For young people, the ongoing cost of living crisis, student loan debt, and feeling like they won't ever be able to afford milestone purchases like a house can push them towards doom spending.
"Social media can pile on the purchase pressure too, especially if they see influencers or friends showcasing their latest buys online."
While doom spending might seem like a harmless habit, it can lead to a cycle of struggling to save and financial trouble if people start borrowing money to pay for it.
Ms Hill warned the situation can become more "difficult" if people turn to buy now, pay later plans to fund it.
"Spending excessively now could also make it hard to save up for those important milestone purchases. Understanding the difference between needs and wants is crucial, as it helps prioritise spending on essential items and reduces unnecessary expenses," she said.
She advised people to create a savings goal and work towards it when they want to buy something new, instead of purchasing it straight away.
"By the time you've saved enough for it, think about whether you still really want it. This is a good way to practice mindful spending and move away from always seeking instant gratification.
"All kids and teens need to understand how money and spending is linked to their self-esteem. You can't buy a lifestyle, and you won't feel better about the future by spending too much now.
"With small steps like these, young people will have the confidence to save for a range of goals, say no to peer pressure, and find better ways to cope when they feel down."
Top fixed rate bonds and ISAs on the market
For Savings Guide this week, Savings Championco-founder Anna Bowes looks at the best fixed rate bonds and ISAs.
The base rate cut that we've been expecting has finally happened, great news for borrowers, but not for savers.
And unfortunately, some providers have been lightning fast with cutting their rates.
Although those with one-year accounts maturing at the moment may find that the rates they can achieve now have fallen a little from a high point 12 months ago, the top fixed-term bond and ISA rates have been pretty stable for a few months now, whilst the market paused waiting for the base rate cut.
However, they are now starting to fall again!
You'd expect to see this with variable rate accounts, but even new issues of fixed-term accounts, which should have already anticipated a base rate cut and be priced accordingly, are falling too.
As more cuts are expected, both to the Bank of England base rate and therefore bank and building societies account rates, now really is the time to lock away some of your cash if you can, even in the lower paying longer-term accounts.
This could help protect against more cuts – helping your cash earn more for longer.
Pension schemes to be rated red, amber or green
A new traffic light-style rating system for workplace pension schemes is set to be introduced.
The aim would be to reduce the number of savers sitting in poor-value pensions, as schemes would be publicly rated red, amber or green.
The Financial Conduct Authority, the Department for Work and Pensions and the Pensions Regulator aim to put the joint framework in place for workplace defined contribution schemes.
Under the plans, schemes will be compared on public metrics that demonstrate value - not just costs and charges, but also investment performance, and service quality.
Poor performing schemes would have to improve or ultimately protect savers by transferring them to better schemes.
Sixteen million people save for their retirement into defined contribution pension schemes.
Wall Street's 'fear gauge' drops after Monday spike
Wall Street's "fear gauge" (proper name: the Chicago Board Options Exchange Volatility Index) has dropped by about 20% today - indicating markets are starting to feel more stable.
VIX surged by as much as 181% on Monday but on Tuesday it recorded a drop of 28% as stock markets rallied around the world.
Global shares have risen after a Bank of Japan official suggested the central bank would refrain from raising interest rates amid an unstable time in the market.
VIX is Wall Street's most-watched gauge of investor anxiety.
Airbnb shares slump amid slowing travel demand
Airbnb shares slumped nearly 15% today, with the company citing slowing demand in the US and shorter booking windows among the reasons.
The San Francisco-based company reported a 14.9% drop in profit for the second quarter compared with last year, despite an increase in bookings and revenue.
The company has warned it is experiencing a shorter booking lead time globally which refers to the number of days between the reservation date and actual arrival.
A shorter booking window can indicate travellers are booking travel at the last minute due to increased uncertainty and caution in spending.
There have also been signs that domestic travel in the US has slowed since the start of the year.
Airbnb chief financial officer Elinor Mertz said yesterdaythat softness in long booking lead times was a big factor in its forecast.