Wednesday newspaper round-up: Tax, retailers, Tesla, share buy-backs, petrol prices
Thousands of middle-class families could face an effective tax rate of up to 96 per cent next year because of a crossover of two child welfare systems. The Resolution Foundation think tank has warned that a “collision” between the income levels at which universal credit and child benefit are withdrawn will mean a steep increase in the number of families hit. - The Times
A flurry of rescue deals will take place in 2023 as a growing number of retailers are pushed to the brink of collapse, experts predict. Kien Tan, retail strategy director at PwC, told The Telegraph he expected to see a rise in “opportunistic” deals in which “good brands that are in financial difficulty get saved by strong, well capitalised, UK or international trade buyers who have a strategic intent”. - Telegraph
Tesla shares fell on Tuesday to their lowest in more than two years, marking the company’s worst day in eight months, as Elon Musk’s electric carmaker confronts a rocky financial period. The company’s stock has lost more than half its value since the start of October. Investors worry that Twitter is taking much of Musk’s time, now that he is the social network’s owner and CEO. - Guardian
The boards of Britain’s blue-chip companies took advantage of the stock market malaise to buy back a record amount of their shares this year, reinforcing perceptions of the FTSE 100 as home to low-growth dinosaurs. Companies listed on the index launched £55.2 billion of share buyback programmes in 2022, according to data from AJ Bell, the investment platform. The total was “way in excess” of the previous £34 billion record in 2018. - The Times
Drivers face higher prices at the pumps as the easing of China's coronavirus restrictions pushes up the price of oil. The price of Brent crude has jumped from $76 per barrel to $84 since Beijing dropped "zero Covid" rules following widespread protests on December 8. - Telegraph
Ministers have been accused of making a “pitiful attempt” to recoup taxpayers’ money wasted on fraudulent Covid contracts, after it emerged that only a fraction of the estimated total had been recovered so far. About £18m has been retrieved by the Department of Health and Social Care through checks on personal protective equipment (PPE) contracts identified as “high risk” and through “contract management”, the Guardian can reveal. - Guardian