UK government proposes coke and coffee tax

📍 Top line: The UK government has announced plans to introduce new tax measures targeting high-sugar drinks, including Coca-Cola, milkshakes, and sugary coffee drinks like frappuccinos. The move aims to address ongoing public health concerns related to high sugar consumption.

Key Points:

• New “Coke Tax” Threshold: A proposed additional tax rate would apply to soft drinks with over 10g of sugar per 100ml, including Coca-Cola, which currently contains 10.6g per 100ml.

• Expansion to Milk-based Drinks: For the first time, milkshakes, frappuccinos, and similar high-sugar drinks could be taxed. Popular frappuccinos, for instance, can contain up to 12 teaspoons of sugar, more than a Mars bar.

• Current Sugar Tax Success: Introduced in 2018, the soft drinks levy led to an 89% reduction in high-sugar beverages by incentivising reformulation to reduce sugar content.

• Health Concerns and Advocacy: Public health groups support the expanded levy and are pushing for similar taxes on high-salt, high-sugar foods to combat obesity and cardiovascular disease.

• Government Review: The review into sugar tax scope is open until spring 2025, with changes expected in next year’s budget.

Apple announces record sales

📍Top line: Apple has reported record-breaking fourth-quarter sales, driven primarily by robust demand for the iPhone, which exceeded Wall Street expectations.

Key points:

• Record Sales: Apple posted $94.9 billion in revenue for Q4, surpassing analyst predictions of $94.4 billion. iPhone sales alone rose 5.5% year-on-year, contributing $46.2 billion.

• Decline in Net Income: Despite strong sales, net income fell 36% to $14.7 billion due to a $10.2 billion tax charge related to an EU ruling over Apple’s Ireland-based tax structure.

• Mixed Regional Performance: Sales increased across most regions, except for a slight decline in China, down 0.3%.

• Strong Growth in Services: Apple’s services division, encompassing the App Store, Apple Music, and Apple TV, saw a record 11.9% growth to $24.97 billion.

• New AI Developments: Apple introduced AI features, branded Apple Intelligence, with improvements to Siri and added features for text proof-reading and health monitoring tools in new devices like the iPhone 16 and updated Apple Watch.

• New Product Announcements: Recent launches, including new MacBook Pro models with enhanced processors for creative work, aim to strengthen Apple’s appeal to professionals.

Elsewhere in business:

💷 The government’s newly appointed value for money tsar, David Goldstone, will receive a salary equivalent to £247,000 a year, significantly higher than the Prime Minister's pay. The announcement, made by the Treasury on Thursday, reveals that Goldstone will be paid £950 a day for an average commitment of one day a week. His responsibilities will include advising on rooting out waste and inefficiency and scrutinising investment proposals to ensure they provide value for money.

📺 GB News has been fined £100,000 by Ofcom for a significant breach of impartiality rules during a pre-election debate featuring former Prime Minister Rishi Sunak. Ofcom concluded that the hour-long question-and-answer session allowed Mr. Sunak to express his views in an “uncontested” format, providing him a significant platform to discuss government policies without adequate challenge.

BBC World Service gets funding boost

📍 Top line: The BBC World Service will receive a 25% increase in government funding for 2025/26, adding £27 million on top of its current £104 million grant.

Key points:

• Budget Context: The new funding aims to counter Russian and Chinese state media influence, especially in areas where cuts previously impacted service.

• Foreign Language Services: The funding is intended to protect the World Service's 42-language network, which reaches 320 million people globally, via radio, TV, and digital platforms.

• Soft Power & Global Influence: Foreign Secretary David Lammy highlighted the BBC World Service as a critical part of UK soft power, stressing the importance of supporting credible news sources worldwide.

• Ongoing Financial Concerns: Despite the new funds, BBC executives have warned that further changes may be required, as the service faces persistent financial pressures impacting its ability to deliver on its mission.

Elsewhere in the economy:

🚜 Jeremy Clarkson, known for his popular show that highlights the challenges of modern farming, has voiced strong criticism of the recent inheritance tax changes announced by Chancellor Rachel Reeves. The policy introduces a 20% inheritance tax on farms valued over £1 million, ending a long-standing exemption and sparking concerns that it could severely impact family-owned farms across the UK.

📉 The values of UK bonds, shares, and the pound have declined as traders sold UK assets following Reeves’s announcement of increased government borrowing. Despite the record £40 billion in new taxes introduced in the budget, the Institute for Fiscal Studies (IFS) has also warned that Reeves may need to raise an additional £9 billion later in the current parliament to sustain spending levels.

The London Stock Exchange Group has opened applications to its 2025 Business Summer Internship. The programme has been crafted to simulate the firm’s Business Graduate Programme so that successful applicants can understand what a career with LSEG looks like. Interns will gain insights into supporting financial risk and working with the company’s Sales/Account Management teams. Applicants must be a penultimate year undergraduate student due to complete all the requirements of their course in summer 2026. Apply now here.

Open AI launches new search feature

📍Top line: OpenAI has launched ChatGPT’s new search feature on Thursday, officially positioning it as a competitor to Google, Microsoft Bing, and other AI-driven search engines like Perplexity. The feature, known as SearchGPT during beta-testing in July, is now integrated into ChatGPT, providing real-time information on sports scores, stock quotes, news, weather, and more.

Key Points:

• User Access: The feature goes live for ChatGPT Plus and Team subscribers this week, with enterprise, educational, and free-tier access coming in the following months.

• Enhanced Information Access: The feature is designed to improve user experience by reducing the need to navigate multiple search links, providing direct answers with clear context.

• Demo Insights: During a demo, OpenAI showcased the ability to search for local events and restaurant recommendations, complete with source summaries and visual previews.

• Publisher Partnerships: OpenAI has secured licensing deals with major publishers like News Corp. and Le Monde, allowing it to integrate authoritative information while addressing publisher feedback on content relevance and presentation.

Elsewhere in tech:

📹 Google has successfully defended the brand name of YouTube Shorts, its short-video feature competing with TikTok and Instagram Reels. A London court ruled in Google’s favor on Thursday, dismissing trademark infringement claims made by Shorts International Ltd., a short-film company which argued that YouTube’s use of the term “Shorts” infringed on its trademarks, including “Shorts” and “ShortsTV.”

🇷🇺 A Russian court has imposed an astronomical fine on Google, amounting to two undecillion roubles (a two followed by 36 zeros), for restricting Russian state media channels on YouTube. This translates to an unimaginable $20 octillion in dollar terms—a figure far exceeding Google’s estimated $2 trillion worth and dwarfing the entire global GDP, which the IMF places at around $110 trillion.

👶 Cutting sugar intake in the womb and early childhood may significantly reduce risks of diabetes and high blood pressure in adulthood, new research suggests. The study highlights the first 1,000 days of life as crucial for establishing a foundation for long-term health, beginning with nutrients absorbed from the mother and continuing through formula and infant foods.

🏫 The Independent Schools Council (ISC), representing 1,400 private schools, is advancing a legal challenge against the government’s VAT policy for independent schools, set to take effect in January. In a board meeting on Thursday, the ISC voted to pursue legal action, with renowned barrister Lord David Pannick KC leading the case.

🧀 Detectives investigating the theft of 22 tonnes of cheddar from Neal’s Yard Dairy have arrested a 63-year-old man on suspicion of fraud by false representation and handling stolen goods. The London-based cheese supplier was reportedly deceived by an individual posing as a wholesale distributor for a prominent French retailer, leading them to deliver 950 wheels of cheese, valued at around £300,000, to the alleged fraudster.