Most papers are leading with the news that UK economy returned to growth in November, with ONS figures revealing that GDP rose by 0.1% (athough The Guardian reports that it’s a smaller boost than the 0.2% growth economists had expected to see).
The increase was largely driven by the service industry, with food and beverage services sitting at the top of the ONS charts with 1.6% growth for the month.
It comes as the BBC points out that the yesterday’s unexpected drop in December inflation has eased pressure for chancellor Rachel Reeves following heavy criticism of her budget policies. Reeves remains unaoplogetic, saying said she is ”determined to go further and faster to kickstart economic growth… generating investment, driving reform and a relentless commitment to root out waste in public spending”.
The Times – which took a more cautious angle on the GDP figures, describing the UK economy as remaining “broadly flat” – points out that analysts are now predicting a Bank of England rate cut next month, meaning lower borrowing costs, before adding that yesterday’s inflation announcement prompted a ”global stock market rally”.
The BBC also covered the news that Carlsberg’s £3.3bn deal to buy J2O maker Britvic has been approved by a High Court judge, creating a ”single integrated drinks business” inventively named Carlsberg Britvic.
Britvic – which produces Robinsons squash, Tango and J2O – employs about 4,500 people. The deal was first announced in July and approved by the CMA in December, but a court hearing yesterday officially sanctioned the move.
The hearing also confirmed that Britvic will continue to hold its an exclusive licence to make and sell Pepsi, 7up and Lipton Ice Tea in the UK following the takeover.
The much-publicised pre-Christmas Guinness shortage (and social media craze for ”splitting the G”) has also benefitted the wider stout trade, according to reports in The Telegraph. It revealed that sales of rival brand Murphy’s Irish Stout have surged by 600% in the wake of the Guinness nationwide supply issues as it capitalises on the ”rising demand for dark Irish beers”.
Keeping with the drinks theme, LVMH has told Reuters it is “impossible” to control the final destination of its Moet and Chandon champagne once they are in the wider market.
The luxury brand had been facing criticism following reports that its champagne had reached Russia via third-party distributors, despite it putting an end to official shipments to the region following the invasion of Ukraine.
The Daily Mail has gone in hard on the day-to-day effects of inflation with a round-up of the latest tranche of price rises at supermarkets. It has taken the angle that prices are rising fastest for premium products – such as steaks, whisky, tobacco and olive oil – while also flagging that many brands are faling back on “shrinkflation” as they try to keep costs in check.
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