Chemicals giant Ineos had its credit score cut by S&P Global Ratings, which said a sustained recovery for the business owned by UK billionaire Jim Ratcliffe won’t come before 2028 https://t.co/ogpVHOGKR7 ...

The bonds of chemicals giant Ineos rose after the European Commission ruled companies in China, Saudi Arabia and the US were breaching anti-dumping regulation in the common market https://t.co/gSJiCGsrk2 ...

Core Viewpoint - The UK government is facing a significant exodus of high-net-worth individuals due to recent tax reforms, prompting discussions on potential measures to attract wealthy investors back to the country [1][3]. Group 1: Tax Reforms and Their Impact - The Chancellor, Rachel Reeves, abolished the non-dom regime, which allowed wealthy individuals to avoid full UK tax on overseas earnings, aiming for a fairer tax system [1]. - Many wealthy individuals are leaving the UK for countries with more favorable tax regimes, such as Milan and Dubai, indicating a potential backlash against the tax reforms [2]. - The government is concerned that the tax changes could lead to a loss of revenue for the Exchequer, with warnings that ordinary taxpayers may bear the financial burden [3]. Group 2: Proposed Measures to Attract Wealthy Individuals - Officials are considering introducing an investor visa and extending tax exemptions on foreign earnings to retain and attract wealthy individuals [4]. - A proposed "global investor visa" would require individuals to pay £200,000 annually and invest £2.5 million in the UK over five years, offering residency and a 15-year tax exemption on foreign earnings [5]. - The Business Secretary, Peter Kyle, is developing measures as part of a "global talent taskforce" to attract entrepreneurs to the UK [6]. Group 3: High-Profile Exits - Several prominent business figures have left the UK for tax reasons since Labour took power, including billionaire Nik Storonsky and Goldman Sachs banker Richard Gnodde, highlighting the urgency of the situation [7].

Chemicals giant Ineos has received support from the UK government to secure the future of the Grangemouth plant outside Edinburgh https://t.co/I5NJKK7A2b ...

Short sellers have begun targeting debt issued by Ineos, as the chemicals giant owned by billionaire Jim Ratcliffe gets pulled into broader concerns about the sector https://t.co/VAnjSjOK46 ...

Ineos, the car business launched by UK billionaire industrialist Jim Ratcliffe, is cutting “several hundred” jobs as the loss-making venture grapples with higher US tariffs https://t.co/qpTIoJeHM1 ...

Industry Impact - Chemicals giant Ineos cuts jobs at UK plant [1] - High energy costs and cheap imports from China are cited as reasons for the job cuts [1] Company Strategy - Ineos is responding to economic pressures by reducing workforce at its UK plant [1]

Economic Overview - The UK's jobs market is showing signs of weakness, with average regular earnings excluding bonuses rising by only 4.8% in July, the slowest pace since June 2022 [2][74] - The number of job vacancies has fallen for the 38th consecutive month, dropping to 728,000 in the three months to August from a peak of 1.3 million in 2022 [2][67][42] - Payroll employment has decreased by 153,000 since October last year, with a decline of 8,000 in August alone, indicating a trend of shrinking workforce [3][70] Impact of Government Policies - The decline in job numbers is attributed to the tax increases implemented by Chancellor Rachel Reeves, which included a £40 billion tax hike and increased National Insurance Contributions [5][6][70] - The retail sector has been particularly hard hit, with jobs in retail falling to a record low of 2.78 million, down by 97,000 from the previous year [53][54] - The Employment Rights Bill and rising costs are seen as significant barriers to hiring, with 45% of business leaders citing employment regulation as a major obstacle to growth [38][36] Youth Employment Challenges - Young people have been disproportionately affected, with 51,000 fewer under-25s in payrolled work since April, largely due to rising employment costs and increased competition from lower-skilled migration [5][14] - The number of under-30s on out-of-work benefits has risen by 66,000 since the General Election, highlighting the challenges faced by this demographic in securing employment [5][13] Future Economic Outlook - Economists predict that the Bank of England will maintain interest rates at 4% for the remainder of the year, as wage growth remains above inflation, which was recorded at 3.8% in July [9][60][71] - The overall economic environment suggests that the UK may face further turbulence, with the unemployment rate potentially exceeding 5% in the coming months due to rising costs and weakening demand [68][69]

Moody’s Ratings cut Ineos’s credit score into highly-speculative territory, citing the petrochemical manufacturer’s deteriorating operating performance and weak debt metrics https://t.co/GhtOW5pOHf ...

Core Viewpoint - Ineos, owned by billionaire Sir Jim Ratcliffe, has been downgraded to a BB- credit rating by Fitch due to rising debt levels and challenges in the global chemicals market [1][2][4]. Group 1: Credit Rating and Financial Impact - Fitch downgraded Ineos's credit rating for the second time in two years, previously lowering it to BB in January 2024 [2]. - The downgrade is attributed to Ineos's debts increasing by €4 billion (£3.5 billion) due to costs from the Project One ethane cracker development in Antwerp [3]. - A lower credit rating complicates borrowing, leading to higher debt servicing costs, particularly as Ineos faces low demand for chemicals amid a sluggish global economy [3][4]. Group 2: Market Conditions and Company Strategy - The chemicals market is experiencing a significant slowdown, exacerbated by trade tensions and low global economic growth, impacting Ineos's profitability [3][4]. - Ineos is actively working to reduce its debt by divesting parts of its business, including the sale of its Ineos Composites polymers manufacturing business for €1.7 billion earlier this year [5]. - The company plans to close its phenol production facility in Gladbeck, Germany, by 2027 as part of its cost-cutting measures [6]. Group 3: Sir Jim Ratcliffe's Broader Business Interests - Sir Jim Ratcliffe, the second-richest person in Britain, has significant investments beyond Ineos, including a 29% stake in Manchester United and ventures in automotive and sports [6][7]. - His acquisition of a 27.7% stake in Manchester United in February last year cost £1.25 billion, alongside other investments in sports teams totaling hundreds of millions [8].