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Friday newspaper round-up: English councils, OBR, M&G

(Sharecast News) - Many more councils in England are at risk of bankruptcy, town hall leaders have warned, as unprecedented financial pressures force local authorities to prepare drastic cuts to services to cope with a collective £4bn deficit. The bleak message, set out in a letter to the chancellor, Jeremy Hunt, said council budgets were "under pressure like never before" because of the rapid deterioration in their finances caused by inflation and soaring demand for social care. - Guardian Rail workers at English train operating companies have voted overwhelming for another six months of potential strikes, the RMT union announced. More than 20,000 union members were balloted across the 14 companies contracted to the Department for Transport, with 90% voting to give the union a continued mandate for strikes, on a 64% turnout. - Guardian

The Government's financial watchdog has admitted it made "genuine errors" in its economic forecasts as it underestimated the inflation shock from Covid and the war in Ukraine. The Office for Budget Responsibility (OBR) said its forecasts in March 2021 and March 2022 missed a large part of the spike in prices and the subsequent state support schemes, which led to ramifications for its predictions of tax revenues, spending and interest rates. - Telegraph

M&G plans to close its main UK property fund, citing the waning popularity of open-ended funds among "mom and pop" investors. The 25 buildings left in the M&G Property Portfolio, last valued at £565 million, will be sold off over the next 18 months, with the proceeds being returned to investors. While the fund is being wound down, M&G will cut its fees by 30 per cent. - The Times

Blackstone fell short of expectations in the third quarter amid a decline in profits from asset sales and amid investors' caution over committing money to private equity funds. The alternative asset manager said that its net profit from the sale of assets had fallen by 36 per cent to $259.4 million in the three months to the end of September. - The Times

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Thursday newspaper round-up: CMA, Riverford, Lloyds, Arm Holdings
(Sharecast News) - The appointment of the former boss of Amazon UK to lead the competition watchdog poses a threat to its independence and pledge to hold big tech to account, according to a group including tech companies and the former business secretary Vince Cable. The group - which includes the News Media Association, the Firefox developer Mozilla, the consumer group Which? and the Future of Technology Institute - has written to the chancellor, Rachel Reeves, to raise concerns about the appointment of Doug Gurr as the interim chair of the Competition and Markets Authority (CMA). - Guardian
Wednesday newspaper round-up: Thames Water, Johnson & Johnson, BoE
(Sharecast News) - Thames Water may need as much as £10bn in debt and equity investment to repair its finances, according to a representative of creditors hoping to lend the struggling utility another £3bn. London's high court heard evidence on Tuesday that suggested the UK's largest water company may need significantly more resources than the roughly £6.3bn it has previously indicated. - Guardian
Monday newspaper round-up: Zero-hours contracts, Barclays, Asos
(Sharecast News) - Hundreds of thousands of British workers are on zero-hours contracts despite being with the same employer for years, according to analysis from the TUC. The majority of zero-hours contract workers have been with their employer for more than 12 months, while one in eight have not been granted regular employment rights after more than a decade working in the same place, the organisation said. - Guardian
Friday newspaper round-up: Apple, Daily Mail, OpenAI, Homebase
(Sharecast News) - Apple slightly beat analysts' expectations in its first-quarter earnings for fiscal year 2025 on Thursday. The iPhone-maker's revenue rose by 4%, coming in at $124.30bn, barely above estimates of $124.12bn. Earnings per share were $2.40, just ahead of analysts' expectations of $2.35. Shares rose more than 8% in extended trading after CEO Tim Cook indicated in an earnings call on Thursday that Apple is on the trajectory for revenue growth next quarter. - Guardian

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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