Crypto News: Driving with the handbrake on

I'm Julian Harris, Bloomberg's UK Business Editor. Here's today's Readout.

"We can make this happen," said eco-activist Tim Slatter, in an interview with Bloomberg News. "We can reduce CO2 emissions, and we can probably get them down in time. But we need to get on with it."

When I say eco-activist, I actually mean: Chair of Ford Motor Company's UK operations. We live in interesting times when the top brass of a global car giant is demanding stronger action on climate change from a mainstream politician in the middle of his term.

Ford unveiled its Explorer electric SUV in London in March. Photographer: Chris J. Ratcliffe/Bloomberg

Rishi Sunak has spent recent days siding with drivers of polluting cars and giving the thumbs-up to more oil drilling in the North Sea. It comes a week after some Conservative ministers refused to confirm that the UK would stick to a ban on new cars running only on petrol and diesel by 2030.

This afternoon, Bloomberg reports that Keir Starmer has assured car executives that a Labour government would definitely go ahead with the ban.

Business chiefs like certainty, especially in the auto sector where models and factory lines have to be planned years ahead, so the 2030 deadline is all well and good. Carmakers are more worried about government targets due to start in just five months time, mandating the proportion of electric vehicles that they sell.

"The government hasn't actually said what that proportion will be," said Grant Shapps, helpfully, in an appearance on BBC radio this afternoon. "The Department of Transport will shortly publish the upshot of that."

No rush, lads.

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The stories you need to know about this evening

A senior Polish official called for the "complete isolation" of Belarus as Warsaw deployed more troops to the border.
UK homebuilder Taylor Wimpey says home prices have stayed resilient even as soaring mortgage rates cool demand.
Speculation is growing the Bank of England will surprise economists by signaling an increase to the pace of bond sales.
Ferrari shares fell after investors took a dim view of revised guidance.
Stax Payments appointed British financial executive Paulette Rowe as its new chief executive officer.

As if Sunak hadn't had enough fun trying to appease the right of the Tory party, today he decided to go on LBC radio and face questions from inevitably-hostile listeners.

Jack from Guildford was unhappy about his mortgage going from £1,500 to £2,800 a month, prompting the Prime Minister to transmogrify into a friendly brokerage service by suggesting that callers could save "hundreds of pounds" by switching to a longer mortgage term or to interest-only repayments.

Interest rates are likely to rise again tomorrow when the Bank of England announces its latest decision. Markets expect an increase from 5% to 5.25% but still reckon there's a 4-in-10 chance that the BOE will put on the turbo-boosters and hike by 50 basis points, as it did in June.

The BOE will also give us an insight into its thinking, including forecasts for Britain's near-term economic outlook. Its outlook in May rested on market expectations that rates would peak at 4.75% this year, according to Bloomberg economists. Now that will probably change to a 6% high in March next year — meaning lots more pain for people like Jack.

This is not inevitable, however. Our economists think rates will go no higher than 5.75% and there are a variety of reasons to support a more dovish perspective. Foremost, inflation is finally below 8% and falling at a rate close to what had been hoped for. Secondly, the labor market is not as tight as was feared back in May. Thirdly, some recent economic data has looked very weak (such as June's PMI surveys) and even Jeremy Hunt's advisers are worried about the BOE going in too hard.

Furthermore, as we reported this week, prices in shops actually fell in July, at least on a monthly basis. Inflation? What inflation?

Checkmate. Rishi Sunak is planning for a Great British chess revival by expanding instruction in schools and installing 100 chess tables in public parks, Ellen Milligan reports.

Breakfast is back. As workers return to the office, queues are forming for breakfast early — here are the nine best spots in London.

Stocking up. Haleon raised its full-year sales forecast as consumers bought over-the-counter brands such as Sensodyne toothpaste and Panadol pain relievers.

Exercises. Iran's Islamic Revolutionary Guard Corps started naval drills around Persian Gulf islands whose sovereignty is disputed by the United Arab Emirates.

No "overtourism" here. Lisbon Mayor Carlos Moedas said the Portuguese capital will have a record tourism year in 2023 and still has room for growth.

Policing Airbnb. Despite cities regulating short-term rentals, companies are trying to evade these new rules.

£175 million

Virgin Money UK said it expects a total share buyback of £175 million for its 2023 financial year, as rate increases bolstered the firm's surplus capital.

One key story, every weekday

Drax Photographer: Dan Kitwood/Getty Images Europe

One of the UK's biggest energy producers, Drax, could have helped households when bills began more than doubling during a historic cost-of-living crisis. Instead, it managed to avoid returning hundreds of millions of pounds to Britons, according to a Bloomberg News analysis of thousands of power market records.

Read The Big Take.

Please send thoughts, tips and feedback to readout@bloomberg.net. You can follow Julian on Twitter.

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