Would I Lie To You?                                                        29 November 2024

By last week, and for the first time ever, Dubai’s residential real estate market saw total sales cross US$ 13.63 billion, (AED 50.0 billion), with transactions 80.0% higher at 19.6k. Engel &  Völkers noted that sales were driven primarily by the booming off-plan segment, which soared by 117% on the year, compared to the secondary market, where sales showed a relatively pedestrian 33.0% rise. Despite average prices increasing 1.7% on the month, the emirate is still a magnet for global investors, offering attractive rates of nearly 7.0%. In E&V’s latest report, they also listed Dubai’s top five most exclusive residential areas – Palm Jumeirah, Dubai Marina, Downtown Dubai, Dubai Hills Estate and Emirates Living.

Meanwhile, Dubai’s commercial real estate sector continued to post increasing returns for investors. In October, commercial sales posted their highest return of 2024, with sales of US$ 2.97 billion – 10.0% higher on the year – driven by rising transaction values and sustained interest in premium commercial spaces. With the average office price registering a 37% annual hike to US$ 410 per sq ft, along with a 24% annualised surge in sales, office rental prices rose 25.8% on the year, with retail rents posting a slower 6.9% rise. The firm expects further strong economic expansion amid an influx of businesses relocating or expanding within the city.

Scheduled for completion by 2028, the 132-storey, seven hundred and twenty-five mt high Burj Azizi is set to become the world’s second-tallest structure, after the Burj Khalifa. On completion, it will be able to claim five world records – having the highest hotel lobby, nightclub, observation deck, restaurant and hotel room. The structure will house a vertical shopping mall, a seven-star hotel, (with two hundred and fifty suites), residences that include penthouses, apartments, and holiday homes, wellness centres, swimming pools, saunas, cinemas, gyms, mini markets, resident lounges, a children’s play area and an adrenaline zone that will give visitors a feel of living “in the clouds”.

Burj Azizi is being built on a plot, located on SZR, that Azizi Developments purchased in 2017 that already had the seventy mt deep foundations for a former project – a five hundred and twenty-eight, one hundred and eleven-storey tower – were already complete when it was bought. The building is being built basically on a fifty-seven mt sq base, and considering its height, this gives the vertical-shaped building a ratio of being one of the narrowest in the world. The project will have more than forty-four elevators, along with multiple entrances from the road.

HRE Development and One Broker Group have successfully sold-out its US$ 177 million Skyhills Residences 2 in Jumeirah Village Circle. The development offers fully furnished modern apartments, ranging from studios to duplexes, featuring premium Bosch and Teka appliances, integrated smart home technology, and lifestyle-focused amenities such as indoor and outdoor gyms, a swimming pool, and lush green spaces. Consequently, the developer has unveiled Skyhills Residences 3, also located in JVC.  It will comprise five hundred and one residential units—spanning studios, (with average prices starting at US$ 202k), 1-bedroom, 2-bedroom, 3-bedroom, 4-bedroom apartments, along with twelve retail outlets. Handover is expected in Q2 2027.

Booming Dubai South confirmed that its luxury apartment development, South Living Tower, at The Residential District has sold out. The project comprises two hundred and nine units, including studios, one-, two- and three-bedroom apartments, as well as special-terraced units. Construction has already started, with a completion deadline of Q1 2027. Amenities include a swimming pool and deck area, state-of-the-art gymnasium, sauna, a versatile multi-purpose room, a kids’ library, a yoga deck, BBQ area, gazebo seating area, and artistically landscaped elevated gardens.  The Dubai government’s vision is to attract one million residents to Dubai South upon the completion of Al Maktoum International Airport.

This week, Azizi Developments, a leading private developer in the UAE, unveiled its mixed-use development – Azizi Venice – Monaco Mansions. Located in Dubai South, the project will be positioned entirely on a swimmable body of water and be one of the largest lagoons of its kind in the world. It will comprise one hundred and nine, four-level, ultra luxury mansions, (comprising between six to eight bedrooms), on plot sizes ranging from 10k – 20k sq ft; they will be available in eight distinct architectural styles. They will feature both road- and lagoon-facing exteriors, direct beach access, alongside dual swimming pools, a rooftop terrace, private cinema, lounges, bars, fitness centre, spa with Turkish Hammam, and multiple kitchens.

Azizi Venice itself will have 36k residences, across one hundred plus apartment complexes, and the Monaco ultra-luxury mansions. It is centred around a vast, crystal-blue lagoon that encircles its condominia, villas, and mansions, along with leisure, retail, and commercial spaces. The turquoise, desalinated waters will be bordered by sandy beaches, an eight km long cycling and jogging track, yoga and sports facilities, and a vibrant promenade featuring a variety of artisan eateries and boutiques.

Following the success of its first phase, Arabian Hills Real Estate Development has announced the official launch of Phase Two of Arabian Hills Estate. The development, located on the Dubai-Al Ain Road, spans two hundred and forty-four million sq ft and is valued at US$ 6.00 billion.

Singaporean investment fund First APAC Fund VCC and Dubai-based AMIS Development have signed an MoU that will see the Singaporean investment fund invest US$ 1.36 billion in AMIS Development which has several upcoming projects in major areas of Dubai. The financing will be used to further expand its growth, locally and internationally, by increasing its land bank, project pipeline, global brand partnerships, project team and investments in technology; it will focus on luxury developments. The fund is managed by Pilgrim Partners Asia, a Singaporean fund management company, licensed by the Monetary Authority of Singapore. AMIS Development recently sold out, within a week, its US$ 116 million Woodland Residences project, located in District 11 of Meydan. Handover of the project, which includes a one hundred mt swimmable lagoon, is expected in Q2 2026.

Over the first ten months of the year, Dubai Real Estate Corporation, and its subsidiary, Wasl Group, posted a 28% annual revenue hike. The Group’s diverse real estate portfolio includes over 55k residential and commercial units, more than thirty-five hotels, several premier leisure facilities such as golf courses, and more than 5.5k industrial land plots. Its Board met last Sunday, under the chairmanship of Sheikh Maktoum bin Mohammed bin Rashid, to also approve the 2025 budget. Furthermore, the sheikh reaffirmed emirate’s commitment to offering supportive measures and incentives, which are critical to consolidating its status as a preferred global investment destination, in line with the Dubai Economic Agenda D33 to transform the city into one of the world’s top three urban economies.

Finally, Emirates has received the first of its sixty-five A350s becoming the first new aircraft type to be added to Emirates’ fleet since 2008. The A350 flew in from Toulouse on Monday but its first official flight – to Edinburgh – will be next month.

The UAE has sent a relief aid plane to Zambia, with the landlocked country having experienced an ongoing drought, starting in January 2024, considered to be the worst to hit the country in at least two decades, leading to severe food shortages, water scarcity, and a national emergency declaration.  Triggered by El Nino, the drought has affected eighty-four of the one hundred and sixteen districts across Central, Copperbelt, Eastern, Lusaka, Northwestern, Southern, and Western provinces. It is pleasing to see the UAE send a plane, carrying fifty tonnes of food supplies to the country due to the drought that has affected the lives of thousands of people. Sultan Mohammed Al Shamsi, Assistant Minister of Foreign Affairs, commented that “the leadership of the UAE is keen to continue international efforts to support communities and assist countries on different continents of the world in such difficult circumstances and urgent times.”

The latest Q3 NielsenIQ Retail Spend Barometer indicated that there was a 4.8% annual hike, to US$ 3.7 billion, in consumer spending in the country in fast-moving consumer goods, and technology, with spends of US$2.1 billion, up 6.4% and US$ 1.5 billion, 2.5% higher, respectively. Over the three quarters, FMCG posted a marked increase in Q3 of 6.4%, compared to Q3 a year earlier, although Q1 registered a slowdown to 3.5%. compared to 9.4% in Q3 2023. However, Q3 saw a dip in growth for Tech/Durables at 2.5% of 7.7% in 2023. The figures show strong spending in Q3, attributable to back-to-school sales and the growing prominence of convenience retail.

MMI and Heineken have signed an agreement to build the Gulf’s first major commercial brewery in Dubai and, once all the paperwork is in place, construction will begin before the end of 2025, with the brewery slated to open by the end of 2027. Sirocco, the JV, will produce popular beer brands in Dubai, which will be available for sale in Dubai’s liquor stores. It will not be the first brewery in the country as last year; Craft by Side Hustle opened in Abu Dhabi, with the microbrewery and gastropub starting operations at the Galleria Al Maryah Island.

In the four days ending today, the Dubai World Trade Centre has been hosting the forty-fifth edition of Big 5 Global, the MEA and S. Asia’s largest and most influential construction sector event.  Over the period, this global gathering of industry professionals in urban development, construction, geospatial and facilities management, has welcomed more than 100k attendees, (from over one hundred and sixty-five countries), and more than 2.7k exhibitors from over sixty countries, showcasing more than 60k innovative products. It also hosted specialised events including. LiveableCitiesX, Future FM and GeoWorld, Heavy, Totally Concrete, HVAC R Expo, Marble & Stone World and Urban Design & Landscape. Sheikh Ahmed bin Mohammed bin Rashid toured the event on the opening day, where he highlighted the important role of the construction sector as a key pillar of the UAE’s economy, driving national growth.

YTD, the Dubai Financial Services Authority has taken eight enforcement actions and issued twenty-four alerts, against individuals and entities that undertook unauthorised financial services activities, misled investors, failed to comply with anti-money laundering obligations, and misled the DFSA or obstructed DFSA investigations. The independent regulator of financial services, conducted in, and from, the Dubai International Financial Centre uses a robust regulatory framework to ensure accountability, transparency, and compliance, fostering a secure and trustworthy financial services industry in line with the highest international standards. Overall, these actions resulted in fines exceeding US$ 2.5 million, split 52:48 between individuals and firms. Furthermore, three individuals were restricted and prohibited from operating within the DIFC, and the DFSA accepted an Enforceable Undertaking from another firm, committing it to take agreed remedial actions. Such action taken by the DFSA protects all stakeholders and safeguards the integrity of financial services within the DIFC.

Pursuant to Article 14 of the AML/CFT Law, the Central Bank of the UAE has suspended the currency exchange system of Al Razouki Exchange, an Exchange House operating in the UAE, for a period of three years and has closed its branches in Deira and Al Murar. The CBUAE, through its supervisory and regulatory mandates, works to ensure that all exchange houses operate within the law and global standards.

With YTD revenue nearing US$ 307 million, total assets of over US$ 580 million and a paid-up capital of US$ 322 million, MultiBank Group is aiming to grow further next year, by global expansion and adding new products to its portfolio. Its founder and chairman, Naser Taher, has also commented on achievements reached YTD, including a partnership with Mashreq to launch an API-enabled Instant Payment solution for corporate clients, as well as an agreement with Al Ansari Exchange, enabling its UAE clients to seamlessly deposit and withdraw funds via the exchange’s extensive branch network.  He also noted that Dubai was an ideal growth hub for finance, with its strategic location, forward-thinking policies, and reputation for stability and safety, whilst saying “the UAE’s visionary leaders have built a globally recognised business-friendly environment that attracted major financial institutions and made cross-border investment seamless.” This year, the firm has been granted exchange and broker dealer licences, by the Virtual Assets Regulatory Authority, and has launched MultiBank-AI, its dedicated AI division, focused on integrating AI to boost efficiency and enhance client experience.

Both Salik and Parkin are proposing, starting next March, to introduce dynamic pricing – raising prices at peak times and lowering them during off-peak hours. The fee for premium parking spaces will be US$ 1.63, (AED 6.0) per hour from 8am to 10am; and 4pm to 8pm, with other charges at US$ 1.09, (AED 4.0) per hour for all other public paid parking spaces. The new updated parking fee will be implemented in areas within five hundred mt of a metro station, those with high parking occupancy during peak hours, as well as markets and commercial activity zones. Premium parking spaces include, for example, commercial areas in parts of Deira and Bur Dubai, Downtown Dubai, Business Bay, Jumeirah, Al Wasl Road and other locations. Parking fees will also go up during major events, including, but not limited, to conferences, exhibitions, festivals and concerts to “to effectively manage the temporary surge in parking demand.” Free parking will still be available on Sundays/public holidays and between the hours of 10.00pm and 08.00am. The RTA also announced that a congestion parking policy, of US$ 6.81, (AED 25.0), will be rolled out initially around the Dubai World Trade Centre during major events, starting in February 2025. In the first nine months of the year, there were ninety-five million parking transactions. Parkin shares ended today on a record US$ 1.30, rising 14.97% on the day, following the news.

With their implementation of dynamic pricing, starting at the end of January 2025, Salik is expected to see revenue hiked by between US$ 16.3 million and US$ 30.0 million. The RTA confirmed that it will implement Variable Road Toll Pricing Policies, as part of the “comprehensive strategy to enhance traffic flow in the city,” and “to improve the travel experience of road users in Dubai.”

Salik toll fees will be adjusted, where motorists can enjoy toll-free passage between 1am and 6am. On weekdays, the toll will be 50% higher to US$ 1.63, (AED 6.0) during morning peak hours (from 6am to 10am) and evening peak hours (4pm to 8pm), and remain the same at US$ 1.09, (AED 4.0). For off-peak hours – between 10am and 4pm, and from 8pm to 1am – parking will be free. On Sundays, excluding public holidays, special occasions, or major events, the toll will be US$ 1.09, (AED 4.0) throughout the day and free from 1am to 6am. Salik shares have had a great YTD and ended today on US$ 1.51.

The DFM opened the week, on Monday 25 November, sixteen points (0.3%) lower the previous week, gained 121 points (2.6%), to close the trading week on 4,726 points by Friday 29 November 2024. Emaar Properties, US$ 0.16 higher the previous fortnight, gained US$ 0.04, closing on US$ 2.60 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.67, US$ 5.31 US$ 1.78 and US$ 0.38 and closed on US$ 0.72, US$ 5.45, US$ 1.86 and US$ 0.38. On 29 November, trading was at two hundred and ninety-five million shares, with a value of US$ 220 million, compared to one hundred and thirty-one million shares, with a value of US$ 109 million, on 22 November.  

The bourse had opened the year on 4,063 points and, having closed on 29 November at 4,726 was 663 points (16.3%) higher YTD. Emaar started the year with a 01 January 2024 opening figure of US$ 2.16, and has gained US$ 0.44, to close YTD at US$ 2.60. Four other bellwether stocks, DEWA, Emirates NBD, DIB and DFM started the year on US$ 0.67, US$ 4.70, US$ 1.56 and US$ 0.38 and closed YTD at US$ 0.72, US$ 5.45, US$ 1.86 and US$ 0.38.

By Friday, 29 November 2024, Brent, US$ 3.16 higher (4.4%) the previous week, shed US$ 2.23 (3.0%) to close on US$ 72.94. Gold, US$ 150 (5.8%) higher the previous week, shed US$ 44 (2.8%) to end the week’s trading at US$ 2,674 on 29 November 2024. 

Brent started the year on US$ 77.23 and shed US$ 4.29 (5.6%), to close 29 November 2024 on US$ 72.94. Meanwhile, the yellow metal opened 2024 trading at US$ 2,074 and gained US$ 676 (28.9%) to close YTD on US$ 2,674.

US car giant General Motors and TWG Global have reached an agreement in principle to enter Formula 1 in 2026, with its Cadillac brand, and to build its own engine “at a later time”. UAE national, Mohammed Ben Sulayem, the president of F1’s governing body the FIA, said, “General Motors is a huge global brand and powerhouse in the OEM (original equipment manufacturer) world and is working with impressive partners”. F1 said the application process would “move forward”.

Stellantis has confirmed that it will close its one hundred and twenty-year old Luton Vauxhall factory and hopes to transfer “hundreds” of the 1.1k jobs to the Group’s Vauxhall site in Ellesmere Port, where it will invest a further US$ 63 million. It also added that it would offer “relocation support” and “an attractive package” to employees who want to transfer to Ellesmere Port. This announcement came as no surprise, with its then MD, Maria Grazia Davino, warning in June that, “Stellantis production in the UK could stop”, as more needs to be done to spur consumer demand for electric vehicles. This comes on the back of Ford’s decision last week to cut 800 roles in the UK, as part of a cull of 4k jobs across Europe. In the UK, financial penalties are currently levied against manufacturers if zero-emission vehicles make up less than 22% of all sales, rising to 80% of all sales by 2030 and 100% by 2035. As is happening in Europe, the UK is being impacted by a slowdown in EV sales and competition from China. The government is also backing the wider industry with over US$ 378 million to drive uptake of zero-emission vehicles and US$ 2.52 billion to support the transition of domestic manufacturing.

Having just announced its second profits warning in two months, Aston Martin is in the market to raise finance, (by issuing new share capital and debt of US$ 266 million), with the UK luxury car maker blaming a “minor delay” in deliveries of its ultra-exclusive Valiant models for the shortfall. Its earlier warning indicated that it had been hit by a fall in demand in China, as its economy slowed with the knock-on effect on sales of high-end goods. It expects its 2024 profit will come in 8.5% lower on the year at US$ 352 million. It now expects to deliver half of the thirty-eight Valiant orders by the end of next month but will end the year making 1k fewer vehicles than originally planned; in 2023, it sold 6.62k vehicles, with 20% for the Asia-Pacific region. Its market cap has more than halved YTD, trading today at Eur 12.54 – compared to Eur 27.16 on 25 March 2024.

It seems that the global electric flying taxi sector may have hit a financial glitch, with investors becoming extra cautious, when faced with the actuality of the massive cost of getting such novel aircraft approved by regulators and then building up manufacturing capabilities. One of the main entrants was Germany’s Volocopter, which had promised that its electric-powered, two-seater aircraft, the VoloCity, would be ferrying passengers around Paris during the summer Olympics – this did not happen, but they did make demonstration flights. It was reported that, in April, the company tried unsuccessfully to raise US$ 106 million from the government but recently hopes have been raised again that China’s Geely, could be interested to acquire 85% of the company for US$ 95 million. Another entrée, (and casualty) is Germany’s Lilium, with the company claiming to have global orders and MoUs for seven hundred and eighty jets. It had hoped to have three aircraft in production by the end of the year and noted that “we have also raised €1.5 billion”, (US$ 1.6 billion) – but then the money ran out. It has also failed to arrange a loan worth US$ 106 million from the German development bank, KfW, when the required guarantees from national and state governments never materialised. Last month, it went into administration and was delisted from the Nasdaq Stock Exchange. It is difficult to try to commercialise an electrical vertical and landing take-off vehicle, and if successful, the end result is that it may ease road traffic but just move the problem higher up to the skies.

However, the seven-year-old UK-based Vertical Aerospace seems to have made some progress, despite a remotely piloted prototype crash in August, after a propeller blade fell off, and one its main partners Rolls Royce pulling out of a deal to provide electric motors for the aircraft. The VX4, which its founder, Stephen Fitzpatrick reckons, “is one hundred times safer and quieter than a helicopter, for 20% of the cost”, recently completed successful take-off and landing tests. It plans to deliver one hundred and fifty aircraft to its customers by the end of the decade and expects to be capable of producing two hundred units a year, and to be breaking even in cash terms. It has recently agreed a rescue deal with its biggest creditor, US based Mudrick Capital, with the US firm investing a further US$ 50 million and converting its US$ 130 million loan into shares. The main shareholders are now Mudrick, with a 70% stake, and the founder with 20%, (down from his initial 70% holding).

There are reports that the Gold-family-owned Ann Summers, the lingerie and sex toy retailer, founded in 1971 is considering selling some or all of the company’s equity and is in talks to use Interpath, the corporate advisory firm, to work on a strategic review. David and Ralph Gold, which acquired the retailer in 1972 when it fell into liquidation, has eighty-three stores and employs over 1k. Its chair, Vanessa Gold, commented that, “we, like many other retailers, are dealing with the unhelpful backdrop to business of the decisions announced by the government at the Budget and the rising cost to retail”. There are reports that the Gold family had stepped in to provide several million pounds of additional funding to Ann Summers in the form of a loan.

Gail’s opened its first shop in 2005, and by 2021 had nearly one hundred stores, all within a fifty-five-mile radius of its Hendon central bakery and kitchen. Since then, it has expanded to the Manchester area, including Altrincham, Chester, Didsbury, Knutsford and Wilmslow, following new investment from Bain Capital Credit and EBITDA Investments, the food investment fund spearheaded by industry entrepreneurs Henry McGovern and Steven Winegar. Now, its owners are reportedly planning to sell the company via an auction next year, which could result in either a partial or full exit for the company’s existing backers. The company could be worth in excess of US$ 628 million.

On Wednesday, Typhoo Tea entered administration, but a buyer could already be poised in the wings to take over the struggling firm – Supreme, a wholesale distributor of products such as batteries, lighting, vaping and drinks. It had already submitted court papers two weeks ago advising it was preparing to enter administration. The firm, that dates back more than a century, has recently been beset by supply chain disruptions and cash flow problems, driven by falling sales, (down 25% to US$ 32 million), and a US$ 48 million shortfall; tea consumption is expected to decline by 8.0% over the next five years. Another problem was the August 2023 break-in and occupation of its Merseyside factory, rendering the site “inaccessible” and causing “excessive damage”, before being sold  the following year.

Founded in LA seven years ago, Dave’s Hot Chicken has already acquired two hundred sites since then and is now due to enter the UK market in London next week. However, it is facing a quandary, with concerns that one of its dishes – the ultra-hot rare ‘Reaper Chicken’ – maybe too much for the local palate. Those partaking are required to sign a waiver to try it – but the company says it is “unsure” about whether to add the dish to its UK menu after it left some tasters in tears. Its MD, Jim Attwood noted that “we are still in discussions as to whether the Reaper will make it onto UK plates. Of course, if the nation truly wants to test the hottest chicken in the world, we could be convinced.”

In 2019, LaRonda Rasmussen filed a case against Walt Disney, claiming pay discrimination when she discovered six men, with the same job title and duties, were earning substantially more than she was; one of them, with several years less experience, was earning US$ 20k more than she did. Following this action, 9k current and former female employees of the entertainment company eventually joined the suit, and although the entertainment giant tried to stop the case in its tracks, last December, a judge ruled that it could proceed. This week, Walt Disney agreed to pay US$ 43.3 million to settle a lawsuit; it was claimed that over an eight-year period, female employees in California earned US$ 150 million less than their male counterparts, with a study noting that between April 2015 and December 2022, female Disney employees were paid roughly 2% less than their male counterparts.

Amazing as it sounds, a rogue staffer, at US department store Macy’s, has seemingly been able to conceal more than US$ 130 million over the past three years. The retailer, also the owner of Bloomingdales and the make-up chain Bluemercury, has postponed the release of its latest quarterly sales update, whilst investigating the incident. It appears that a “single employee with responsibility for small package delivery expense accounting intentionally made erroneous accounting accrual entries”; the person was responsible for tracking expenses related to small package deliveries. Macy’s confirmed that its impact was limited and would not affect its payments to other firms – and that the amount was a small fraction of the more than US$ 4.3 billion in overall delivery expenses during that time. Not surprisingly, the person allegedly responsible is “no longer employed” at the firm. The country’s biggest department store chain posted an annual 2.3% sales decline in quarterly sales ending 02 November, as growth at Bloomingdales and Bluemercy was offset by declines at older Macy’s locations.

A slight problem has arisen in Australia, with Healthscope, the country’s second-largest private hospital operator, (with thirty-eight private hospitals across every state and territory), ending its contracts with Bupa and the AHSA, after they refused to pay a proposed US$ 65, (AUD 100), hospital facility fee. The cancellation would impact around 6.6 million Australians who have private health insurance with these companies, with CEO Greg Horan indicating it meant Bupa and AHSA members could pay hundreds of dollars more to be treated in a Healthscope hospital, after the termination dates – 20 February and 04 March 2025 respectively. Private Healthcare Australia has accused Healthscope, which is an offshoot of Canada’s private equity group Brookfield, of “throwing its toys out of the cot” and “unethical tactics”, whilst the counter argument says the fee would help cover the gap between health insurance payouts and the rising cost of hospital care. It also noted that private hospital cost inflation was a sector-wide challenge and in the last five years, seventy private hospitals had closed which showed the economics were “simply unsustainable”.

Two Western Australian miners were in the news this week. The CEO of Resolute Mining, along with two other employees, who were detained by the Mali government, have been released after the company had reportedly paid US$ 158 million to the Mali government to help resolve the dispute. They had been held for more than a week after travelling to the country for meetings with the nation’s tax and mining authorities and agreed to pay the money to help resolve the tax dispute. The Australian company, which has been working for years at Mali’s Syama gold mine, a large-scale operation in the country’s south-west, holds an 80% stake in the mine, with the local government holding the remaining 20% balance. They were not the first to be held by Malian authorities – four employees of Canadian company Barrick Gold also were detained for days in September. The military there seized power in 2020 and since then, the junta, in a bid to boost public revenue, has placed foreign mining companies under growing pressure.

The other mining company was Mineral Resources, with its CEO, Chris Ellison, announcing he would step down over alleged tax evasion, after telling the AGM that he had made mistakes and took “full responsibility”. He also told the meeting that the corporate scandal involving the company he founded twenty years ago was a “dark cloud over [his] life” and is something he will “live with forever”. Just prior to the meeting, Mr Ellison released a statement to the ASX saying he made mistakes but took “full responsibility”, and that “I made an error of judgement with reporting of personal tax. I deeply regret the impact this has had on our business and our people.” The chairman, James McClements, acknowledged that the last few months had “been difficult” and that it “wasn’t easy getting to the facts”, and that “from time to time, Chris lacked judgement and used company resources for personal matters.” He also defended the board’s decision to give the CEO a time frame up to 18 months to stand down. Little wonder then that he confirmed that he would step down from his role as chairman within the next twelve to eighteen months. However, the board also decided not to pay him over US$ 6.5 million, in planned executive remuneration, and ordered him to pay almost US$ 6 million in fines.

On his first day in office, president-elect Donald Trump has confirmed that, in a bid to crack down on illegal immigration and drug smuggling, he plans to impose 25% tariffs on all goods coming from Mexico and Canada, until both governments clamp down on drugs, particularly fentanyl, and illegal migrants crossing the border; he will also hit China with an additional 10% levy   until they take measures to stop trade in synthetic opioid fentanyl from the country. Mexico and Canada are the United States’ largest trading partners, with 83 % of the former’s exports and 75% of the latter’s going to the US in 2023. The Biden administration has been trying to convince China to stop the production of ingredients used in fentanyl, with estimates that it was responsible for some 75k deaths in the US last year.

By Tuesday, Donald Trump completed his cabinet postings, with the appointment of Brooke Rollins for Secretary of Agriculture; she currently heads the Maga-backed think tank, the America First Policy Institute. The President-elect noted that “Brooke will spearhead the effort to protect American Farmers, who are truly the backbone of our country.” A former White House aide during Trump’s first administration, she served as director of the Office of American Innovation and acting director of the Domestic Policy Council. In her new position she will be responsible for oversee subsidies, federal nutrition programmes, meat inspections and other facets of the country’s farm, food and forestry industries, as well as playing a key role in renegotiating the trade agreement between the US, Canada and Mexico.

With his twelve-member cabinet appointments now completed, they include:

Mario Rubio       State                         Scott Bessent    Treasury       Pete Hegseth   Defence

Pam Bondi         Attorney General     Doug Bergum     Interior        Brook Rollins  Agriculture

Scott Turner      Housing                    Sean Duffy          Transport    Chris Wright   Energy

Linda McMahon Education               Doug Collins       Veterans   Kristi Noem     Homeland

Last month saw a 0.2% monthly rise in the UK inflation rate – the first time in seventeen months that the inflation rate was higher than a month earlier. BRC figures also indicated that this could be the end of falling inflation given cost pressures being placed on big businesses.

Although the money was on 4.1% for the UK unemployment rate, for the quarter ending 31 October, it came in at a surprisingly high 4.3% from 4.0% in the previous quarter. This could be yet another indicator that the Chancellor may have overplayed her hand by hiking business taxes in her recent budget. The Office for National Statistics also added that average regular wages growth had fallen to 4.8% – its lowest level in more than two years, as inflation overall returns to normal levels. Alongside hiking taxes, the Starmer government announced plans for higher borrowing that it said would be invested in infrastructure projects to help drive UK economic growth.

Halifax has announced the launch of a new 1.5-year fixed-rate remortgage product, with a US$ 318 cashback, only to eligible customers who use their own conveyancer. It remains to be seen whether there is enough demand from borrowers to buy into this short-term strategy. It will be interesting to see whether its pricing is competitive enough so that customers are willing to take up a deal only six months shorter than the now standard – and popular – two-year fixes already dominating the market.

The BoE’s latest financial stability report reads bad news for some 4.4 million UK homes, showing they were set to refinance at higher rates. The good news was that about 25% of borrowers would benefit from lower rates, based on current market pricing, as rates have dropped from the highs seen in 2023. Its financial policy committee also identified a risk ahead – that higher trade barriers could hit global growth.

In the UK, the All-Party Parliamentary Group on investment fraud has branded the Financial Conduct Authority an “opaque and unaccountable organisation” with “profoundly defective” leadership, describing the City watchdog as “incompetent at best, dishonest at worst” and too slow to act on complaints from consumers. The damming three-hundred-and-fifty-page report, which included evidence from whistleblowers, victims and former FCA employees, detailing a “toxic” culture at the organisation with “incompetent” senior management; others reported allegations of bullying at the regulator. There was no surprise that the Group called for a clear-out of the boardroom, including chief executive Nikhil Rathi and chairman Ashley Alder, and equally no surprise to hear the FCA commenting that “we have learned from historic issues and transformed as an organisation so we can deliver for consumers, the market and the wider economy.” What a cover-up exercise, almost on par with the Archbishop of Canterbury’s ultimately unsuccessful exercise to maintain his powerful position as head of the Church of England – with the apparent backing of all his bishops except for the Bishop of Newcastle, Helen-Ann Hartley, who was brave enough to put her head above the pulpit.

Despite being caught on camera confessing to illegally selling luxury perfume, the US$ 1.25k, (GBP 1k) bottle “Boadicea the Victorious”, in Russia, a UK businessman is not facing criminal charges. David Crisp is a lucky man, and despite having “ignored government edicts” and being arrested in 2023 by HM Revenue and Customs, the investigation was dropped earlier this year – and this, notwithstanding the discovery of evidence that he tried to conceal more than US$ 2.1 million of illegal sales. One has to wonder why there has not been a single UK criminal conviction for violating trade sanctions on Russia since Moscow’s full-scale invasion of Ukraine almost three years ago – and why there are regulations in place with a maximum prison sentence of up to ten years.

Appearing before the Treasury Select Committee, Giles Thomson must have cut an embarrassed face as he was asked about the impact of Russian sanctions since they had been introduced two and a half years ago. The Treasury’s economic crime chief said that despite the imposition of the most far-reaching set of sanctions on any country, his organisation had levied only one fine; this was for US$ 19k penalty on a company, called Integral Concierge Services, for aiding a designated person transfer and receive money. He had to admit it was a low number, given the scale of sanctions.

Louise Haigh has resigned as transport secretary after it emerged, she pleaded guilty to a fraud offence a decade ago. She had admitted telling police in 2013 she had lost her work mobile phone in a “terrifying” mugging, but later found it had not been taken; she was given a conditional discharge by magistrates, following the incident which happened before she became an MP. It seems that she declared her conviction to Kier Starmer when appointed to his shadow cabinet in 2020 but did not tell the government’s propriety and ethics team about it when she became a member of the cabinet after Labour won July’s general election. Downing Street has refused to say what the PM knew about Haigh’s conviction before stories about it appeared in the media yesterday evening. A Conservative spokesman noted that “in her resignation letter, she states that Keir Starmer was already aware of the fraud conviction, which raises questions as to why the prime minister appointed Ms Haigh to Cabinet with responsibility for a GBP 30 billion (US$ 38.18 billion) budget?” The 37-year-old was responsible for one of the government’s flagship policies, the re-nationalisation of the country’s rail network under Great British Rail. She was the first cabinet minister the PM publicly rebuked, over remarks about Dubai-based P&O Ferries last month, describing the firm as a “rogue operator” and urged people to boycott the company, sparking a row with the ferry company’s parent company DP World. When it then said it will pull a possible US$ 1.0 billion investment, the UK PM said Haigh’s comments were “not the view of the government”. The new government seem to be moving from one crisis to another whilst Ms Haigh should be wary in the future and remember that people in glass houses should not throw stones.

Last week’s blog (‘Spend! Spend! Spend!’) noted that retailers are looking at an additional US$ 8.8 billion in costs following October’s budget raising employers’ national insurance contributions by 1.2% to 15.0%, halving its threshold to US$ 6.28k and raising the minimum wage level. Naturally, the Chancellor has defended her position saying 50% of all businesses – roughly a million firms – are paying either less or the same national insurance contributions as they were before the budget. Moreover, Rachel Reeves has said that she had no other alternatives, when posting her budget but confirmed that there will not be another budget like it. She also added that there will be no more tax rises or borrowing for the duration of this government’s term, but we have heard this from her before. Would I Lie To You?