25/12/2025

BIZ & FINANCE THURSDAY | DEC 25, 2025

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US growth data fuels record day on Wall Street

UK govt to relax farm inheritance tax LONDON: The UK government said on Tuesday it will raise inheritance tax thresholds for farmers’ estates from £1 million to £2.5 million, signalling a major climbdown of a policy that triggered months of protests. The change, which will take effect in April, will allow spouses or civil partners to pass on up to £5 million in qualifying agricultural or business assets between them before paying inheritance tax, on top of existing allowances, the government said. Assets above that threshold will receive 50% relief. The number of estates facing higher inheritance tax will fall from around 2,000 to up to 1,100. For agricultural estates, the figure drops from 375 to 185, the government said. The revision follows months of anger and protests from farmers, including convoys of tractors slowing down traffic in central London, over the initial tax changes announced in Labour’s autumn 2024 budget. Those proposals would have required farmers to pay inheritance tax on their assets for the first time in decades, with 100% tax relief only available for the first £1 million of property. A recent independent review for the government said the proposals had led to farmers contemplating suicide to avoid the tax changes. National Farming Union (NFU) president Tom Bradshaw said the announcement would be a “huge relief to many” and would “greatly” reduce the tax burden for many family farms. “We have listened closely to farmers across the country and we are making changes today to protect more ordinary family farms,” said Environment Minister Emma Reynolds as she announced the policy. Kemi Badenoch, leader of the opposition Conservative party, said it was a “huge U-turn by the government” on their “cruel, immoral” farm tax plans. “It would have pushed farms to the brink, damaged our food supply, and hurt the people who work long hours to feed the country,” she posted on X. The government said the reforms will make the tax system fairer by ensuring only the largest estates face higher bills. – AFP

o Asian markets mixed as traders wind down before Christmas

healthy consumer and business spending, provided some reassurance to investors about the economic outlook after a string of increasingly weakening jobs data. However, other figures did provide some cause for thought, with a gauge of consumer spending falling for a fifth successive month to its lowest level since February 2021 owing to worries about jobs. A report last showed unemployment at a four-year high. With the economy appearing to be

topping US economic data. After a healthy start, regional stocks stuttered into the close, although gold topped US$4,500 for the first time amid US military and economic pressure on Venezuela. Traders in New York pushed the S&P 500 to an all-time high in response to figures showing the world’s top economy expanded 4.3% in the third quarter, the fastest pace in two years and much quicker than expected. The report, which was boosted by

The Castrol sale is the centrepiece of BP’s asset-disposal strategy to reduce its debt burden. Castrol’s sale process began earlier this year after BP said in February it had put the lubricants business under review as part of a broader strategy shift away from renewable energy. In September, Stonepeak and private equity firm One Rock submitted bids for the unit. – Reuters in better shape than expected, investors pared their bets on another Federal Reserve interest rate cut next month. And while hopes for lower borrowing costs have been a key driver of the recent market rally, analysts said the strong growth overshadowed any disappointment that they will remain unchanged for now. “We’re set up for a Santa Claus rally,” UBP’s Kieran Calder told Bloomberg TV. “The market is taking some of the data pretty positively.” Asian markets swung between gains and losses as traders wound down before Christmas. Tokyo reversed a morning rally to end lower, while Sydney, Singapore, Seoul, Bangkok and Jakarta also fell. Hong Kong finished on a positive note, with Shanghai, Wellington, Taipei and Mumbai also up. The yen extended its recent rebound against the dollar after Japan’s Finance Minister Satsuki Katayama suggested authorities were prepared to step in to support the currency, citing speculative moves in markets. South Korea’s won also rallied after the country’s central bank and Finance Ministry said they had discussed the unit’s weakness and warned against excessive weakness, while the government also said it would unveil a tax policy to ramp up inward investment. The unit has come under pressure owing to a range of issues, including a flight of capital and concerns that planned US investment – as part of trade talks – could see a further exit of cash. The won was trading around 1,457 to the dollar yesterday, having pushed close to 1,500, a level it last saw in 2009 during the global financial crisis. – AFP

HONG KONG: Asian markets went into the Christmas break yesterday on a mixed note as investors struggled to track a record day on Wall Street fuelled by forecast

A shopper visits the Lincoln Road shopping district in Miami, Florida. – AFPPIC

BP to sell 65% stake in Castrol to Stonepeak for US$6 billion LONDON: BP said yesterday it had agreed to sell a 65% stake in Castrol to investment firm Stonepeak for about US$6 billion, in a deal that values the oil major’s lubricants unit at US$10.1 billion. It may sell the stake after a two-year lock-in period. The sale proceeds, which include US$800 million for accelerated dividend payments, will be used to reduce debt, the London-listed company added. The Wall Street Journal and the Financial Times first reported details of the deal late on Tuesday.

Reuters reported in November that BP was in talks with Stonepeak over selling Castrol, as the energy major seeks to shed about US$20 billion in assets by 2027. The plan includes divesting its lubricants business to reduce debt and cut costs.

In a separate statement, Stonepeak said Canada Pension Plan Investment Board will invest up to US$1.05 billion as part of the deal and gain an indirect stake in Castrol.

BP will retain exposure to Castrol’s growth plan over the coming years via a 35% interest in a new joint venture, with Stonepeak holding the remaining 65%, it said.

Tesla having a very bad year in European Union PARIS: Sales of cars made by Tesla, the company run by Elon Musk, have slumped nearly 40% in the European Union this year, data from the European Automobile Manufacturers’ Association showed on Tuesday. year from the same period in 2024, according to the ACEA figures. Chinese manufacturer BYD registered the biggest jump in sales, up 240%.

competition from cheaper Chinese brands. The ACEA figures showed that Tesla’s slump in the EU continued in November alone, with sales sliding 34%. The four biggest markets for electric cars in the EU are Germany, Belgium, the Netherlands and France. – AFP

Tesla has suffered reputational damage in Europe from its association with billionaire Musk, who backed US President Donald Trump before a falling-out. The world’s richest man has endorsed Germany’s far-right AfD party. Tesla also faces increased

which have 35% of the market. Tesla sold a total 129,024 of its cars in the EU in the January to end-November period – well down from the 210,869 it sold last year. BYD was gaining on Tesla, having sold 110,715 cars so far this year, compared with 32,562 for the same period last year.

Electric cars now account for 17% of the EU car market, ACEA said, though it noted stronger consumer preference for hybrid-electric vehicles,

The dive happened even though sales of electric cars across the bloc rose 28% in the first 11 months of the