Crypto News: The London Rush: Thames keeps running

Hi, I'm Charles from Bloomberg UK's breaking news team, catching you up on this morning's business stories.

As Thames Water fights Ofwat to get its five-year plan approved, the troubled utility is facing a simultaneous battle to make sure it doesn't run out of cash.

At the end of August, the company had £1.57 billion in liquidity, enough to keep it going until May 2025. But that may not be sufficient.

Thames is in talks with creditors to unlock more cash, and if possible extend what it calls its "liquidity runway."

So far, the government has managed to stay at arm's length from Thames, but as Labour ministers prepare for their annual conference, this is a useful reminder that at some point the problem could land on their lap.

What's your take? Ping me on X, LinkedIn or drop me an email at ccapel2@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

Seeming to confirm what we heard from Ocado and Next yesterday, the retail sector in August picked up pace as Brits enjoyed a touch of summer. Retail sales beat economist expectations, suggesting an air of optimism.

Sunlit uplands, right? Alas, it seems the bubble popped in September. Talk of "tough decisions," budget black holes and impending taxes sent consumer confidence crashing by the most in two-and-a-half years, according to data from GfK.

That all raises the question of where to put your cash. If you're looking for long-term outperformance, sell the US and buy the UK. That's the view of Fidelity's Alex Wright, this week's guest on Merryn Talks Money.

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Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

Retail sales in the UK were better than predicted in August and consumer confidence dived. Here's a few things to think about on that front.

The warmer weather, or at least more seasonally-appropriate summer conditions, that appeared near the end of the summer months clearly helped retail sales. Rain is now forecast but it is hitting at the right time of year, in theory, so we'll have to see how well that's been planned for.

End-of season sales also played a part. If those were successful, then that will reduce any issues of holding excess inventory for retailers. However, if there was more discounting by retailers over the period, that could show up in their margins. So keep an eye on that when the earnings season kicks back into gear.

And consumer confidence slid. It's a notoriously volatile measure and, in the UK, very rarely turns positive. It's been blamed on pessimism about the upcoming budget but remember that interest rates are likely to keep coming down as the year goes on, which could help the mood on personal finances and bigger purchases.

— Sam Unsted

Check Bloomberg UK's Markets Today blog for updates all day.

Next week could have a political tinge with Labour's party conference taking place in Liverpool. Speeches from Rachel Reeves and Keir Starmer will be closely monitored for hints of what might come in the budget.

We'll also get data on manufacturing and services sector sentiment, and a smattering of company earnings. The "put up or shut up" deadline for Capital & Regional expires on Thursday.

With Labour's conference upon us once again, can you remember what was thrown over then-opposition leader Keir Starmer during his speech last year?

[Yesterday's answer: London's prime mansions are having a tough time selling amid concerns about the impact of the budget.]

Photographer: Jason Alden/Bloomberg

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