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Bulb Energy takeover by Octopus cleared; anger over HSBC branch closures; food inflation at record – as it happened

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The UK’s sale of collapsed Bulb Energy to Octopus Energy will go ahead after it was approved by a London judge this afternoon

 Updated 
Wed 30 Nov 2022 11.20 ESTFirst published on Wed 30 Nov 2022 02.09 EST
Octopus Energy’s takeover of collapsed rival Bulb has been given a competion date by a London judge.
Octopus Energy’s takeover of collapsed rival Bulb has been given a competion date by a London judge. Photograph: Bulb/PA
Octopus Energy’s takeover of collapsed rival Bulb has been given a competion date by a London judge. Photograph: Bulb/PA

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Closing summary

Time to wrap up after a busy day… in which Octopus’s takeover of Bulb got the legal green light, HSBC announced plans to shut over 100 branches, and Britons faced a ‘bleak winter’ as food inflation hit a record high.

While eurozone inflation may have peaked, investors also learned that China’s economic downturn worsened this month, while US companies took on fewer new staff.

Here’s our main stories:

More strike news: Rail union TSSA says its members will hold two 48-hour strikes on Avanti West Coast next month, as part of the ongoing dispute over pay, job security and conditions.

Strikes will take place at Avanti West Coast on 13, 14, 16 and 17 December (as well as ASOS from 18 December).

It will involve Avanti who work in a range of operational, station, revenue, on-board and management roles.

In addition, TSSA members will carry out only contractually required duties at other train operators in the run-up to Christmas, which will prevent them covering for other striking staff.

TSSA has announced further industrial action, including strikes, in the union’s ongoing national rail dispute over pay, job security and conditions. Full story 💥👇 https://t.co/zjtt8Az4XX

— TSSA (@TSSAunion) November 30, 2022

A spokesperson for Octopus Energy says, following today’s hearing:

“The High Court has rightly given the green light for the transfer to go ahead in December.

“Taxpayers will be saved from millions - even billions - of costs that could have been incurred if the process was dragged out.

“This is positive news for Bulb’s customers and staff, and starts to bring to an end the huge financial exposures for Government and taxpayers.”

Some early reaction to the Bulb decision:

Sale of collapsed energy firm Bulb, which was bailed out with £6.5 billion from UK taxpayers, to Octopus Energy to proceed next month after being approved by Judge Antony Zacaroli despite last-minute challenges from rival energy suppliers. https://t.co/4bUhuYzavR

— Ian Fraser (@Ian_Fraser) November 30, 2022

Octopus Energy will take over Bulb Energy's 1.6m customers on December 20, confirms the High Court judge.

The rivals' judicial process could continue via another court.

More on this coming up for @CityAM

— Nicholas Earl (@nearlblog) November 30, 2022
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Bulb takeover by Octopus approved by London court

Alex Lawson
Alex Lawson

The takeover of collapsed energy supplier Bulb by Octopus Energy has been approved in a London court.

Octopus agreed last month to buy Bulb out of a government-handled administration process which has lasted for nearly a year.

Judge Antony Zacaroli was deciding whether to approve the Energy Transfer Scheme which will transfer some of Bulb’s assets into a new separate entity, and when to set a date for the transfer.

“I have made a decision that I should and will set an effective date” of 20 December, he said.

The decision comes despite rivals E.ON, Centrica and Scottish Power lodging separate judicial reviews yesterday, arguing there is a lack of transparency around the deal between Octopus and the government.

Zacaroli said the judicial review proceedings were for an administrative court to decide and can run separately. The review could still delay or block the takeover.

The scrutiny around the collapse of Bulb and the deal with Octopus has increased since the Office for Budget Responsibility said the cost of running the business in administration had hit £6.5bn. The government disputes this figure.

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US job vacancies still over 10m

Just in: there are still more that 10 million unfilled job opportunities across the US.

The number of job openings in America dropped to 10.33m in October, the JOLTS report shows.

That’s down from 10.687m in Setember, but still a historically very high amount.

The October JOLTS report reads higher than expected at 10.33 million job openings, while pending home sales dropped by 4.6% in the month of October. pic.twitter.com/rzbLGjte5Y

— Yahoo Finance (@YahooFinance) November 30, 2022

Job openings fell at state and local government offices (excluding education), at factories making non-durable goods, and at federal government.

The quits rate, which meaasures how many people chose to leave their jobs, dipped slightly to 2.6% from 2.7%.

JOLTS shows a modest decline to 10.33mil from 10.68mil. Quit rate fell also. Sign of easing in job market, but levels are still very high.

— Kathy Jones (@KathyJones) November 30, 2022

Job openings fell slightly to 10.33M in October, above the 10.25M expected.

That makes October the 16th consecutive month with more than 10 million vacancies. (Good news for Am’s seeking work; bad news for inflation.) pic.twitter.com/TGpCBReIwP

— Steven Rattner (@SteveRattner) November 30, 2022

The JOLTS report had been seen as an arcane piece of economic data, but it has grown sharply in importance as the US Federal Reserve tries to get its finger on the pulse of the jobs market. Reuters have a nice piece about it here.

Unions criticise HSBC branch closures

Local communities across the UK will be abandoned by HSBC once their local branch closes, the Unite union says.

Unite national officer Dominic Hook says the union is “appalled” that HSBC is “walking away” from customers and communities who most need access to local banking services.

Hook says:

“Unite is calling on HSBC to reconsider these branch closures during the consultation process before they abandon the most vulnerable in our society and leave them without a neighbourhood bank served by experienced knowledgeable staff.

Of the total 114 closures proposed today the vast majority (108) of the closures will result in no HSBC branch within 3 miles and it is disgraceful that 25 communities will be left to travel over 15 miles to the nearest branch.

HSBC’s branch closures will hurt elderly customers, who may not have moved to online banking, or those without transport to get to another site, points out the Daily Mirror’s Graham Hiscott.

And so it goes on...HSBC has just announced plans to close another 114 branches next year. Says branch use has fallen by 65% in the past five years. But blow to those customers, including many elderly, without transport, or some small firms, that rely on them.

— Graham Hiscott (@Grahamhiscott) November 30, 2022

The cull starts next April, with most closures by end of August. Six branches will shut on many days.

— Graham Hiscott (@Grahamhiscott) November 30, 2022

They begin on April 18, with HSBC’s outlets in Blandford Forum, Dorset; Bexhill-on-Sea, East Sussex; Abergavenny, Monmouthshire; Cromer, Norfolk; St Ives, Cambridgeshire; and St Austell, Cornwall closing their doors for good.

— Graham Hiscott (@Grahamhiscott) November 30, 2022

More economic news: The US economy grew a little faster than first thought in July-September.

US GDP grew at an annual rate of 2.9%, up from a first estimate of 2.6%. That’s equal to quarterly growth of over 0.7%, as America bounced back from a technical recession in the first half of this year.

The 2nd estimate of US GDP for Q3 2022 was upgraded from 2.6% SAAR YoY to 2.9% SAAR YoY. Nonfinancial corporate profits were up just $6.1 bil in Q3 after a $152.2 bil increase in Q2. #gdp #profits (@BEA_News) https://t.co/FsYmuH4Eng pic.twitter.com/jCv7o8aEkS

— MTS Insights (@MTSInsights) November 30, 2022

In contrast, the UK contracted by 0.2% in the third quarter, while the eurozone grew by 0.2%.

US hiring slows as interest rate rises bite

Just in: US companies hired fewer new staff than expected this month, which may show that America’s labor market is slowing.

And that could be significant for the global economy, if it encourages the US Federal Reserve to slow its interest rate increases.

Payroll provider ADP has reported there were 127,000 new hires in November, sharply down on 239,000 a month earlier. It’s the biggest slowdown in job creation since January 2021, led by construction and other interest rate-sensitive sectors.

Nela Richardson, ADP’s chief economist, says:

Turning points can be hard to capture in the labor market, but our data suggest that Federal Reserve tightening is having an impact on job creation and pay gains.

In addition, companies are no longer in hyper-replacement mode. Fewer people are quitting and the post-pandemic recovery is stabilizing.

🇺🇸 ADP Employment Change (NOV)
Actual: 127K
Expected: 200K
Previous: 239Khttps://t.co/i2eXxTPxoz

— DailyFX Team Live (@DailyFXTeam) November 30, 2022

The official US jobs report is released in two days time.

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Full list of the 114 HSBC branches set to close

Here is a list of all the HSBC branches which are due for closure next year, and when they will shut.

  • Blandford Forum - April 18

  • Bexhill-on-Sea - April 18

  • Abergavenny - April 18

  • Cromer - April 18

  • St Ives - April 18

  • St Austell - April 18

  • Bristol Downend - April 25

  • Leominster - April 25

  • Market Bosworth - April 25

  • Alton - April 25

  • Shaftesbury - April 25

  • Wilmslow - May 2

  • Whitley Bay - May 2

  • Coleraine - May 2

  • Bideford - May 2

  • Gainsborough - May 2

  • Launceston - May 2

  • Arnold - May 9

  • Didcot - May 9

  • Brecon - May 9

  • Minehead - May 9

  • Dover - May 9

  • Stamford - May 16

  • Whitby - May 16

  • Halesowen - May 16

  • Stroud - May 16

  • Brighouse - May 16

  • Bridport - May 23

  • Hove - May 23

  • Fakenham - May 23

  • Sudbury - May 23

  • Liskeard - May 23

  • Bristol Filton - May 30

  • Dundee - May 30

  • Waltham Cross - May 30

  • Hinckley Road, Leicester - May 30

  • Market Harborough - May 30

  • Stourport-on-Severn - May 30

  • Stirling - June 6

  • Pocklington - June 6

  • Chepstow - June 6

  • Knutsford - June 6

  • Frome - June 6

  • Portadown - June 6

  • Penarth - June 13

  • Ilkley - June 13

  • South Shields - June 13

  • Skipton - June 13

  • Honiton - June 13

  • Sleaford - June 13

  • Twickenham - June 20

  • Ross-on-Wye - June 20

  • Hertford - June 20

  • Wells - June 20

  • Bicester - June 20

  • Oakham - June 20

  • New Milton - June 27

  • Lewes - June 27

  • Pontypool - June 27

  • Beccles - June 27

  • St Neots - June 27

  • Wadebridge - June 27

  • Portishead - July 4

  • Droitwich - July 4

  • Leatherhead - July 4

  • Palmers Green - July 4

  • Coalville - July 4

  • Park Gate - July 11

  • Wetherby - July 11

  • Port Talbot - July 11

  • Kingswinford - July 11

  • Long Eaton - July 11

  • Horsforth - July 18

  • Gosforth - July 18

  • Harpenden - July 18

  • Bognor Regis - July 18

  • Marlow - July 18

  • Bromborough - July 18

  • Christchurch - July 25

  • Seaford - July 25

  • Blackwood - July 25

  • Norwich Mile Cross - July 25

  • Ripley - July 25

  • Tonbridge - July 25

  • Bristol Westbury on Trym - August 1

  • Ormskirk - August 1

  • Putney - August 1

  • Ashton under Lyne - August 1

  • Kenilworth - August 1

  • Reigate - August 8

  • North Finchley - August 8

  • Cirencester - August 8

  • Henley on Thames - August 8

  • Denbigh - August 8

  • Finchley Road, London - August 15

  • Chippenham - August 15

  • Bethnal Green - August 15

  • Hornchurch - August 15

  • Colwyn Bay - August 15

  • Dorchester - August 22

  • Morley - August 22

  • Wymondham - August 22

  • Ryde - August 22

  • Windsor - August 22

  • Cardiff Rhyd y Penau - August 29

  • Leighton Buzzard - August 29

  • Eastwood - August 29

  • Oxted - date TBC

  • Epworth - date TBC

  • Holsworthy - date TBC

  • Tenby - date TBC

  • Hythe - date TBC

  • Cowbridge - date TBC

  • Settle - date TBC

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100 jobs at risk as HSBC plans 114 branch closures

Banking giant HSBC has said that around 100 staff could leave the bank as a result of plans to axe 114 UK branches from April next year (see earlier post).

The group stressed that it hopes to redeploy all its employees at affected branches to other roles within HSBC, either to other branches or to a different position.

It plans to speak to all staff in the branches due to close but it estimates that around 100 employees could leave.

It comes as the bank said it has seen a significant decline in customers visiting their local branch since the pandemic, many of whom have turned to digital banking services instead.

Jackie Uhi, HSBC UK’s managing director of UK distribution, said:

“People are changing the way they bank and footfall in many branches is at an all-time low, with no signs of it returning. Banking remotely is becoming the norm for the vast majority of us.

#Breaking Banking giant HSBC has said it will close 114 branches across the UK from April next year as customers using them have fallen significantly since the pandemic pic.twitter.com/hvwuSjZH35

— PA Media (@PA) November 30, 2022

But the closures could hurt those who haven’t moved to online banking, such as older customers and those still without web access or a smartphone.

Victoria Scholar, head of investment at interactive investor tells us:

According to HSBC, the number of people visiting branches has slumped by 65% over five years. The pandemic expedited the shift towards online banking when lockdowns and government restrictions meant that branches were forced to close, prompting customers to switch to online banking whether they liked it or not. HSBC said 97.5% of all its transactions now take place online.

Today’s decision is part of HSBC’s strategic move towards digital banking and serves as a way for the lender to cut costs by reducing its number of bricks and mortar physical stores.

High streets across Britain have been facing a deepening crisis in recent years with footfall on the slide amid the rapid expansion of online shopping with banking services just one piece of this broader puzzle.

Banking apps and websites have become increasingly user friendly with more and more services on offer, resulting in a sharp decline in the requirement for branches. However, this could unfairly impact certain pockets of society such as those without internet access or the elderly who can sometimes struggle with technology.

Eurostar security staff to strike in run-up to Christmas

Photograph: Niklas Halle’n/AFP/Getty Images

Security staff on Eurostar are to strike for four days next month in a dispute over pay.

Members of the Rail, Maritime and Transport (RMT) union employed by a private contractor will walk out on December 16, 18, 22 and 23 after voting in favour of industrial action, by around four to one.

The RMT said the strike will “severely affect” Eurostar services and travel plans for people over the pre-Christmas period.

Eurostar security staff to strike for four days next month in a dispute over pay - announcement by @RMTunion

— Alan Jones (@AlanJonesPA) November 30, 2022

More than 100 security staff, employed by facilities management company Mitie, are involved in the dispute.

RMT general secretary Mick Lynch says it’s “disgraceful” that Eurostar security staff are not being paid a decent wage, and urges Mitie and Eurostar to come to a negotiated settlement with the union as soon as possible.

The strikes will coincide with other walkouts on the railway in the run-up to Christmas. RMT members working for Network Rail and 14 train operating companies will strike on 13-14 and 16-17 December.

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We’re keen to to hear how soaring prices are affecting the Christmas plans of people in the UK.

Are you planning to have a leaner Christmas this year? Whether you’ve decided to buy fewer presents, do a less elaborate Christmas dinner than you usually would or whether you will go ahead with a traditional Christmas with all its trimmings despite the higher cost this year, we’d like to hear about it.

You can get in touch here.

We’d like to hear whether people in the UK are deciding to have a different, cheaper Christmas this year due to the cost of living crisishttps://t.co/88JsZoIMMQ

— The Guardian (@guardian) November 30, 2022

HSBC to close 114 branches

Banking giant HSBC has announced plans to shut a further 114 UK branches.

The sites will shut from April next year, with HSBC saying customer use has fallen significantly since the pandemic, as more people turn to online banking.

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H&M’s plan to cut 1500 jobs highlights the problems facing the fashion retail sector in the cost of living crisis, says Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown:

Keeping the lights and heating on in vast stores is becoming increasingly unaffordable with energy prices so volatile. With shoppers also becoming impressively price sensitive as cost-of-living headwinds continue to whip up, retailers are finding it more difficult to pass on increase in input costs.

Shoppers are showing signs of trading down and hunting out bargains, so the pressure is on H&M to compete with chains seen as offering greater value, from Primark in high streets to Boohoo and Shein online.

H&M has undergone an admirable shift to online, making shop assistants in store increasingly redundant, and this trend is clearly set to continue.”

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