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      Trump Media deal faces calls for inquiry over alleged ‘influence peddling’

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      Democratic groups escalated calls on Thursday for Congress to investigate Donald Trump’s social media company Trump Media after a report that it relied partly on emergency loans in 2022 traced back to a Russian-American under federal criminal investigation to make it to its stock market debut.The move increased political scrutiny into the merger between Trump Media Technology Group and the blank-check company Digital World Acquisition – which could net Trump about $4bn – as federal prosecutors secured guilty pleas from two investors who insider-traded on the deal.In a three-page letter on Thursday, the Democratic-aligned group Congressional Integrity Project pressed the Republican House oversight chair, James Comer, to launch a parallel congressional investigation into the Trump Media merger and hold hearings into the nature of the loans.“We are calling on you to investigate possible influence peddling and corruption involving a former president and current presidential candidate,” wrote the Congressional Integrity Project’s executive director, Kyle Herrig.The request came a day after the Guardian reported that Trump Media was kept afloat in 2022 with loans provided in part by a Russian-American businessman named Anton Postolnikov, when a securities investigation delayed the original merger date and imperiled its cash reserves.The delay led Trump Media to seek bridge financing, including from an entity called ES Family Trust, which operated through an account at Paxum Bank, a small bank registered on the Caribbean island of Dominica that is best known for providing financial services to the porn industry.Leaked documents obtained by the Guardian made clear that ES Family Trust operated like a shell company for Postolnikov, who co-owns Paxum Bank and became a subject of the criminal investigation into the Trump Media merger.The concern surrounding the loans to Trump Media is that ES Family Trust may have been used to complete a transaction that Paxum itself could not, as it did not offer loans in the US because it lacked a US banking license and is not regulated by the FDIC.“The American people deserve to know the circumstances around ES Family Trust’s loan to Trump,” Herrig wrote. “It is also imperative to determine whether there was any quid pro quo discussed.”There is no indication that Trump Media had any idea about the nature of the loans beyond the fact that they were opaque, nor has the company or its executives been accused of any wrongdoing. A lawyer for Trump Media called the story a “hoax” in a statement after it was published.Still, the Trump Media merger has drawn scrutiny because Trump’s stake in the company amounts to significant increase in his net value.Even if Trump sold only some of his position, he would probably gain a major windfall that could be used to pay about $500m in legal costs stemming from his various civil and criminal cases. That would ease the burden on his political action committees, which are now paying the bills.skip past newsletter promotionafter newsletter promotionIn addition, Postolnikov’s connection to the loans raised new questions about the involvement of Michael Shvartsman, who pleaded guilty with his brother to securities fraud weeks before he was due to go to trial on charges of insider trading and money laundering over the Trump Media merger.The Guardian reported that the creation papers for ES Family Trust named Shvartsman as a successor trustee. ES Family Trust stands to gain from the Trump Media merger because the $8m was loaned in the form of convertible notes, meaning it converted to a stake in the post-merger company.While precise figures can only be known by Trump Media, ES Family Trust’s stake in Trump Media is now worth between $20m and $40m, even after the company’s share price plummeted after a poor earnings report.“The full extent of his involvement in the trust is unclear, and getting to the bottom of that fits within your mandate as chairman of the House oversight committee,” Herrig wrote of Shvartsman.Democratic activists have been eager to attack Trump’s business deals as a counterweight to Republicans’ impeachment inquiry into Joe Biden, which has unsuccessfully tried to tie the president to business deals done by his son Hunter Biden, in an effort to show corruption or influence peddling.The Biden impeachment inquiry hit a major setback in February after the prosecutors charged an FBI informant with fabricating claims being used by Republicans for their allegations, that Biden and his son each sought $5m in bribes from a Ukrainian company. More

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      Trump’s stake in Truth Social falls by $1bn after company reveals $58m loss

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      The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating.Shares in Trump Media & Technology Group, the owner of Truth Social, dropped 21.5% as investors scrutinized the fundamentals of its business.The former president’s vast stake in the firm was worth about $4.88bn on paper after its extraordinary stock market debut last week . After Monday’s sell-off, it was valued at about $3.83bn.Trump Media generated sales of just $4.13m in 2023, according to regulatory filings.While over $4m in sales marks significant growth from $1.47m in 2022, the previous year, it underlines the small scale of Trump Media’s operation – and the depth of its losses.BF Borgers of Colorado, an auditor for the company, said the losses “raise substantial doubt about its ability to continue as a going concern”, according to Monday’s filings.Trump Media separately acknowledged that it could be “subject to greater risks” than other social media platforms “because of the focus of our offerings and the involvement of President Trump”.Shares in the group – and Digital World Acquisition, the shell company with which it merged last week to go public – have been surging since the turn of the year.The company has a similar valuation to Reddit, a social network that also went public last month. Reddit generated sales of $804m in 2023, according to regulatory filings, and losses of $90.8m.Net losses at Trump Media came to $58.2m in 2023. Stripping out interest expenses on its debt, the firm posted operating losses of $16m, down slightly from $23.2m in 2022.A volatile market surge over recent months has nevertheless transformed Trump Media into a so-called meme stock, boosted by internet memes – posted, in its case, on platforms including Truth Social – urging retail investors to buy into it.skip past newsletter promotionafter newsletter promotionIt has joined a small bevy of stocks, most famously the video games retailer GameStop, which rattled Wall Street by staging unexpected, turbulent rallies in recent years. Maintaining momentum after the initial surge has often proved challenging.Trump has a vast stake in Trump Media, and its arrival on the market has netted him a multibillion-dollar paper fortune. When it finally combined with Digital World last Monday, Bloomberg said the former president had joined the ranks of the world’s 500 wealthiest people for the first time.He is currently unable to offload his stake, however, and will need the stock to continue to trade at the levels to which it has surged in recent months if he is to raise billions of dollars from a sale.Trump, who is vying to regain the presidency from Joe Biden in November’s election, is grappling with hefty legal costs. He is on the hook for $454m after a civil fraud case, although the former president was recently thrown a lifeline when a panel of appellate court judges provided him with 10 days to secure a far smaller $175m bond.John Rekenthaler, vice-president for research at Morningstar, recently argued Trump Media was akin to a cryptocurrency. “As with bitcoin, people buy Trump Media not for future cash flows but because: 1) they expect its price to rise, and 2) they feel an affiliation for the asset,” he wrote. For Trump Media investors, “DJT shares represent a currency by which they can express their beliefs and commitment.” More

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      Trump’s Truth Social valued at nearly $8bn as it goes public in New York

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      The firm behind Donald Trump’s Truth Social went public on Tuesday at a price that values the minnow social network at close to $8bn.Shares in Digital World Acquisition, the shell company with which Trump’s social media business has merged, have been surging since the turn of the year.They launched a volatile rally as it combined with Trump Media & Technology on Tuesday, closing up 15% after their first day of trading.The firm is trading under the ticker symbol “DJT”, using Trump’s initials.Trump Media’s arrival on the market has netted the former president a paper fortune of some $4.6bn . After the deal closed on Monday, Bloomberg said that Trump had joined the ranks of the world’s 500 wealthiest people for the first time.But trading in Trump Media was so volatile after Tuesday’s opening bell, it was briefly halted. At one point on Tuesday, shares in the group had soared by more than 50%.Trump, who is currently unable to offload his stake, will need the stock to continue to trade at the levels to which it has surged in recent months if he is to raise billions of dollars from a sale.“I LOVE TRUTH SOCIAL,” he wrote on the platform shortly after Trump Media landed on New York’s Nasdaq stock exchange. Investors finally backed a merger between Trump Media and Digital World last week, setting the stage for the deal to close.skip past newsletter promotionafter newsletter promotionIt comes as Trump, who is vying to regain the presidency from Joe Biden in November’s election, grapples with hefty legal costs. He is on the hook for $454m after a civil fraud case, although the former president was thrown a lifeline on Monday when a panel of appellate court judges provided him with 10 days to secure a far smaller $175m bond.Trump Media has struggled since Truth Social’s lackluster launch, generating sales of only about $5m since 2021. But Digital World has increasingly been seen as a so-called meme stock, boosted by internet memes – posted, in its case, on platforms including Truth Social – urging retail investors to buy into it.Special purpose acquisition companies, or Spacs, such as Digital World raise money from investors through initial public offerings, before typically searching for a company to take public.Once a Spac finds and agrees terms with a target, it absorbs the business and draws it on to the stock market, enabling investors in both companies to take a slide. Should the Spac’s original investors not like the deal, however, they can withdraw their cash.Devin Nunes, the former Republican congressman who now serves as CEO of Trump Media, said: “As a public company, we will passionately pursue our vision to build a movement to reclaim the internet from big tech censors.” More

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      Undertaxed and over here: why the UK welcomes US mega firms | Phillip Inman

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      Americans love Britain, and in many ways the British admire Americans, but the benefits of the relationship are becoming increasingly one-way.That’s the argument set out in a book published next month documenting how US companies have made inroads into the UK economy by exploiting a desperate need for investment, weak regulation and a public that seems oblivious to the cost to themselves and, ultimately, the economy.Clinton, Bush, Obama, Biden: whichever administration is pulling the levers, presidents pay lip service to a special relationship with the UK. Each one makes sure US companies leverage Washington’s power to gain entry, kill off local competition, secure monopoly control and run off with the profits largely tax-free.But UK companies that try to break into the US face huge legal and regulatory hurdles. It’s true that selling goods to America is a lucrative business. That’s not the same as setting up a US subsidiary in the US and going head-to-head with domestic corporations.Labour leaders fall into the trap of lauding energetic and profitable US companies as much as their cheering Tory counterparts do. Tony Blair and Gordon Brown were more ardent Americanophiles than most. And Keir Starmer shows every sign of rushing to Washington should he be elected, even if Trump is in charge – much as Theresa May did in 2017, before a humiliating return visit two years later.The new book is not an anti-American leftist call to arms of the kind published in the 1980s, when Margaret Thatcher’s admiration for Ronald Reagan generated tomes about the UK being the 51st state of America. Vassal State by Angus Hanton (Swift Press) examines for the first time the disparate data showing how much US companies have embedded themselves in the UK, capitalising on our willingness to pay them outlandish fees and subscriptions and afford them the hefty tax breaks needed to keep them in the UK.We know about the power and influence of Amazon, Apple, Meta/Facebook, Microsoft, Netflix and Alphabet/Google. Other high-profile names include online sellers eBay, Wayfair and Etsy, and streaming companies Sky, Disney and Apple TV.The internet’s cloud storage is mostly provided by American companies. All our data, bit by bit, is being collected by US firms, whether at the front end as we buy stuff using Amazon or travel using Google Maps, or at the back end, so to speak, as health data is scraped by US spy technology firm Palantir – which is run by Peter Thiel, the co-founder of another US web behemoth, PayPal.Hanton, a London-based entrepreneur who co-founded the Intergenerational Foundation charity, documents their rise, but also that of less well-known firms which have acquired the UK’s financial and physical plumbing.A classic example is WorldPay, a payments system used by tens of thousands of UK businesses to process card transactions. Once owned by NatWest, it was offloaded after the 2008 crash to US private equity firms Advent International and Bain Capital for £2bn.That was a European Commission order that the UK could have ignored but chose to obey. Advent and Bain floated the company on the London stock market for a handsome profit in 2015, but it soon went private again. Another Advent-owned firm, payments processing technology company Vantiv, paid $10.4bn for it in 2018, then Florida-based Fidelity National Information Services (FIS) paid $35bn in cash and shares for WorldPay in 2019.What ties these firms together is that they offer popular services that somehow we accept should be charged for, without any reference to the cost of production or market influence.It doesn’t happen on the continent in nearly the same way – and some would probably argue France, Germany, Spain and Italy are the poorer for it. WorldPay executives would no doubt say US companies are big investors, enhancing and expanding the UK businesses they buy, often with a long-term vision. Except that the vision includes domination and control of the economy, holding the government to ransom with threats of cutting investments if tax subsidies are not generous enough or tax rates low enough.Google’s soon-to-be-opened monster HQ in London’s King’s Cross is emblematic of the way the UK’s red-carpet treatment for investors has profited US companies and offset the threat of an exodus after Brexit. Google has found the UK, unlike the EU, willing to turn a blind eye to its monopolistic practices.That is great news for Brexiters. It’s not so good for the rest, who, wherever they turn, must pay for the services of an ever-expanding array of US mega-companies. More

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      in US Politics

      Steven Mnuchin putting together investor group to buy TikTok

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      Steven Mnuchin is putting together an investor group to try to buy TikTok, he told CNBC on Thursday.The former US treasury secretary’s comment comes just a day after the US House of Representatives passed a bill that would give the app’s Chinese owner ByteDance about six months to divest TikTok’s US assets or face a ban. If it did not do so, app stores including the Apple App Store and Google Play would be legally barred from hosting TikTok or providing web-hosting services to ByteDance-controlled applications.TikTok had called the bill a “ban” and urged senators to listen to their constituents before taking any action.“I think the legislation should pass and I think it should be sold,” Mnuchin told CNBC’s Squawk Box on Thursday. “It’s a great business and I’m going to put together a group to buy TikTok.”Discussions of banning TikTok in the US have circulated for years, spurred by fears the China-based company could collect sensitive user data on American citizens – an allegation TikTok has repeatedly denied. Donald Trump attempted a ban in 2020, which did not succeed.The recent bipartisan push to force the company to divest marks the most serious challenge to the app yet, however, and now faces an uncertain vote in the Senate. The House voted overwhelmingly on Wednesday in favor of a ban, with 352 members of Congress voting yes on the bill and only 65 opposed. The company has called the bill unconstitutional.TikTok’s CEO, Shou Zi Chew, said on Wednesday that the company will exercise its legal rights to prevent a ban. He warned in a video message that the bill threatened to consolidate power in the hands of other big tech platforms while risking American jobs. TikTok users have flooded Congress’s phone lines to advocate against a ban, while the company has called on the Senate to reject the bill.“This process was secret and the bill was jammed through for one reason: it’s a ban,” a TikTok spokesperson said. “We are hopeful that the Senate will consider the facts, listen to their constituents, and realize the impact on the economy, 7m small businesses, and the 170 million Americans who use our service.”Although other big tech firms could feasibly attempt to purchase TikTok, companies such as Microsoft, Amazon and Google are already facing intense scrutiny over allegations of antitrust violations and consolidation of power. Microsoft previously offered to buy TikTok in 2020, amid Trump’s attempt to ban the app.Mnuchin served as treasury secretary in the Trump administration, where he oversaw sweeping tax cuts that benefited the wealthy and his department became mired in corruption scandals. Although Mnuchin at one time discussed using the 25th amendment to remove Trump from office after 6 January, he told CNBC last week that he would consider serving again in a second Trump administration.Mnuchin’s private equity firm, Liberty Street Capital, also recently led a group of investors in a $1bn injection of funds into New York Community Bank as its shares plummeted and internal turmoil gripped the institution.China’s ministry of foreign affairs spokesman, Wang Wenbin, said the House’s vote to force a sale used “robber’s logic” in a harsh statement on Thursday morning.“When you see other people’s good things, you must find ways to own them,” Wang said.Despite passing in the House, the potential ban faces an uncertain future. So far, not enough senators have said they would vote in favor of the bill for it to pass. Chew announced that he would head to Congress to speak with senators. TikTok has likewise said it is not clear whether the Chinese government would approve a sale to a US company.The bill that passed in the House on Wednesday is the latest salvo in an ongoing political battle over the platform, which exploded in popularity after its emergence in 2017. The popular app has faced a number of bans and attempted bans in recent years, starting with an executive order by Donald Trump in 2020, which was ultimately blocked by courts on first amendment grounds. Trump has since reversed his stance, now opposing a ban on TikTok. Joe Biden, by contrast, has said he will sign the bill if it reaches his desk. More

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      ‘Huge tax breaks’: private equity prepares for a boon from Congress

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      Some of largest and most profitable companies in the US are primed to save billions of dollars from a congressional tax deal that critics say gives “billions in tax credits to the biggest corporations while giving pennies to middle-class children and families”. And private equity funds could be among the deal’s biggest beneficiaries, a Guardian analysis suggests.The tax cuts passed the House of Representatives at the end of January as part of an agreement that pairs handouts for businesses with a moderate expansion of the child tax credit. The Senate could vote on the bill over the coming weeks, and the White House has indicated that Joe Biden would sign it into law.The deal, led by Democratic senator Ron Wyden and Republican congressman Jason Smith – the chairs of Congress’s tax-writing committees – would roll back a series of tax measures that were designed to partially offset the cost of the 2017 Trump tax cuts.Weakening these provisions would allow companies to claim bigger tax deductions for certain expenses, including buying new equipment, spending money on research and development, and paying interest on their debt, as the Guardian previously reported.Last year the American Investment Council (AIC), private equity’s main trade group, spent more than $3m lobbying the federal government, according to OpenSecrets – more than any single year since 2009. Including their subsidiaries, five of the country’s largest private equity funds – Blackstone Group, KKR & Company, Carlyle Group, Cerberus Capital Management and Apollo Global Management – together spent an additional $21m lobbying over the same period.“Increasing the interest deductions, which private equity firms have been the worst abusers of, is just another example of how the Wyden-Smith tax deal hands out billions in tax credits to the biggest corporations while giving pennies to middle-class children and families,” the Democratic congresswoman Rosa DeLauro, one of two dozen House Democrats who voted against the bill, told the Guardian.“While private equity is cheering on the huge tax breaks they will get if this deal passes the Senate, American families are living paycheck to paycheck and struggling with rising costs.”‘Debt can supercharge the returns of private equity’Tax policy experts told the Guardian that raising the cap on interest deductibility could provide an especially generous subsidy for private equity funds, which rely heavily on debt.“The model of the private equity industry is often to … buy public corporations, take them private and load them up with debt,” said Steve Wamhoff of the non-profit Institute on Taxation and Economic Policy. These heavy debt burdens help explain why companies bought by private equity funds are about 10 times more likely than other firms to go bankrupt.“The deductions that are allowed for interest expenses really make that a more viable business model,” Wamhoff said.Debt is cheaper when companies get a tax break for deducting the interest they pay on that debt, and “cheaper money, which has to be repaid by their takeover targets, is what makes private equity go,” said Carter Dougherty of Americans for Financial Reform (AFR), an advocacy coalition.“The magic of the private equity business model, and the way that it’s able to generate outsized returns, is its reliance on debt for the acquisition,” said Brendan Ballou, author of Plunder: Private Equity’s Plan to Pillage America.If you invest $20m in a business and get 10% returns, you only get $2m back,” Ballou explained. “But if, of that $20m, you actually only put up $2m yourself, you actually make 100% return. So debt, or leverage, allows you to get bigger returns than you normally would if you actually had to put up your own cash.”That’s how “debt can supercharge the returns of private equity”, Ballou said.Asked for comment, the AIC referred the Guardian to two letters previously signed by the group, one of which states that “debt financing plays an important role in supporting job-creating investments”.skip past newsletter promotionafter newsletter promotion“There’s already a strong bias in the tax code for debt, and this bill doubles down on that bias to boost private equity’s predatory practices, which will only drive more American companies into bankruptcy and decrease market competition,” said the Texas congressman Lloyd Doggett, one of three Democrats who voted against the bill in the House ways and means committee, in a statement.“There’s nothing fair about private equity companies lining their pockets while shifting the tax burden to American families already dealing with high costs.”‘A complete wasteful giveaway’The Trump tax law established new limitations on how much interest companies could deduct from their tax bills in a single year. That annual cap on interest deductions was tightened further in 2022.Higher interest rates have made debt more expensive, so private equity funds have found themselves having to invest more of their own money, rather than relying as extensively on borrowed money.That shift, in turn, has lowered potential returns, adding to the industry’s sense of urgency to loosen the cap on interest deductions, AFR’s Carter Dougherty said.Not only would the Wyden-Smith deal undo the tighter limit created by the Trump law, but it would do so retroactively, meaning corporations could amend their 2022 and 2023 tax returns to take advantage of the newly generous subsidies.Making these tax cuts retroactive “would be just a complete wasteful giveaway”, Chye-Ching Huang, the executive director of the Tax Law Center at the New York University School of Law, told the Senate finance committee last November. “You can’t change past investments or wages by giving away tax cuts.”Loosening the interest deduction threshold would cost $64bn over the next 10 years if it were made permanent, according to an estimate provided to members of the House ways and means committee by the US Congress’s non-partisan joint committee on taxation.While the Wyden-Smith deal only rolls back the provision through 2025, tax policy experts told the Guardian that corporations and their trade groups would probably work to extend it further.In a statement to the Guardian, a Wyden spokesperson said: “The provision dealing with business interest was a Republican priority in negotiations, and it’s clear that it would become law in a Republican Congress without any matching benefit for working families. With the support of finance committee Democrats, Senator Wyden set a standard for this divided Congress that any tax cuts for corporations must be matched with an investment in children and families that the Joint Committee on Taxation scores as equal, and that’s why the bill includes a child tax credit expansion that helps 16 million children from low-income families get ahead.”Smith’s office did not respond to a request for comment. More

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      in UK Politics

      Relax planning laws and build more homes for prosperity, says Skipton chief

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      For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emailsSign up to our free breaking news emailsEyebrows were raised little more than a year ago when Stuart Haire jumped from HSBC, where he ran UK personal and private banking, to become chief executive of Skipton Building Society.He was very much near the top of the global giant’s star executive chart, having held senior roles within M&S Bank, First Direct and John Lewis Financial Services, as well as HSBC UK. Compared to the mighty HSBC, the Skipton was seen as something of a backwater. He’s smiling, nodding, when this reaction is put to him. He remembers it well.Here he is, though, 49 and having just presented an impressive set of annual results, with a performance that would do any financial powerhouse proud. He laughs at the memory. “What people don’t realise is that if we were to demutualise – and we’re not going to – Skipton would go straight into the FTSE 100 of biggest listed companies.”His is an organisation with £37.2bn of total assets, more than 1,300 branches and 1.2 million members.As well as the main building society business, Skipton owns Connells, Britain’s largest estate agents with more than 80 high street brands including Hamptons, Bairstow Eves, William H Brown and Connells. It is responsible for one in ten houses bought and sold in the UK. Skipton also has a financial advisory subsidiary, a commercial estate agency and an AI software firm in New Zealand. “We’ve a range of interesting businesses, it was part of the attraction,” says Haire. “We’ve got very strong businesses and we have no shareholders – we just have customers who are our owners. It’s a breath of fresh air.”The group turned in pre-tax profits of £333.4m, up by more than £30m. Mortgage advances increased 6.3 per cent to £6.7bn, helping Skipton lift its market share by 12.7 per cent – this, despite the mortgage market being stagnant for most of the year.Savings balances also rose, by 15.4 per cent to £26bn. Again, savings market share increased, 10.7 per cent. This, too, against a savings market that grew only 1.7 per cent.Mortgage arrears of three months or more, were 0.23 per cent – against an industry average of 0.91 per cent.It may be 170 years old, and still based in picturesque Skipton, in North Yorkshire, but the society has long earned a reputation for innovation. Haire is keen for it to continue, launching Britain’s only available deposit-free mortgage, Track Record. He’s rightly proud of increasing the number of first-time buyers helped by 40 per cent. Track Record received over £62m in applications.It is genuinely deposit-free. “If you can prove you’re paying rent and the mortgage repayments will be less, then it’s likely you will get a mortgage offer. We want to assist people who don’t have part of the equity saved up, we want to help them get started as homeowners.”It also unveiled Income Booster, which allows more than one person’s income to go towards buying a home. Again, aimed at giving first-time buyers a lift.He has focused Skipton on two watchwords: homes and money. “There are too many people in the UK who desperately feel that they will never have a home of their own. Be they aspiring homeowners or renters. And that needs to change.“Homes and money are vital for individual prosperity, and for our country to thrive. The Skipton Group sits at the nexus of homes and money, and we want to drive collaborative change across the UK housing sector, to help more people put these stable foundations in place, and to help unlock opportunity and build long-term financial wellbeing, home by home, right across Britain.”He wants to see planning laws relaxed and the whole process speeded up. “We’ve got the largest estate agency in the UK. As a country, we need more houses.”For first-time buyers some areas are prohibitively expensive and in places such as Skipton, there is an additional pressure, from second-home owners. “It’s not just about the financial aspects, local and central government have got to do more. We’ve got to do more with planning permission, we must be making sure we’re getting more homes built and in locations where people want to live.”Last year saw Skipton become the Which? Recommended Mortgage Provider. It was awarded the Your Mortgage – Best First Time Buyer Mortgage Lender, together with being named, at the What Mortgage Awards 2023, Best National Building Society for the 10th year in a row.“Looking ahead, our ambition is to make a positive impact to tackle the UK’s housing crisis by enabling more first-time buyers to realise their homeownership aspirations.”Skipton, he says, “has great potential to drive transformative change in the housing market and financial services industry, leveraging our collective capability to drive change, influence decision makers and campaign on the issues that matter to our members and wider society.”Savers are not forgotten. “We’re supporting our savers, passing on over 75 per cent of 2023’s base rate increases, which is above our competitors, while even our lowest rate on an instant-access account is well ahead of the market average.”Saving members received £148m more interest than if they had taken market average rate saving products. They were able to take advantage of “member only“ offers.“What attracted me to Skipton is its unwavering member-focused purpose and its huge potential to help more people.”Skipton Building Society offers Britain’s only deposit-free mortgageHe says Skipton is a society that has always believed in keeping things simple, no frills. It’s in the DNA. “Its roots are here, in Yorkshire. We’re a massive local employer and we ensure that one per cent of our profits go to charity. We’re very much aware of our history and responsibility.”Haire himself is from Glasgow – “a scumbag from Glasgow is how I am viewed in these parts,” he jokes. “I was always taught never to get ahead of myself, never to let ego get in the way. That’s also true of the people of Yorkshire. They work exceptionally hard and they’re very proud.”In the year ahead, he is expecting rates to remain high. “They will come down but not by so much.”He’s predicting “low growth” for the economy. “We’re starting to see confidence return. There are signs of real green shoots. In the housing market, mortgage applications are up 14 per cent, viewings are up 12 per cent and sales are up 12 per cent. Confidence is returning.”Unlike HSBC, you sense, the Skipton has given him mission and purpose. More

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      in US Politics

      Voters may at last be coming round to Biden’s sunny view of the economy

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      Joe Biden has spent most of his presidency insisting to Americans that the economy is on the right track. Poll after poll has shown that most voters do not believe him. That may be changing.After months of resilient hiring, better-than-expected economic growth and a declining rate of inflation, new data shows that Americans are becoming upbeat about the US economy, potentially reversing the deep pessimism Biden has struggled to counter for much of the past three years.That trend could reshape campaigning ahead of November’s presidential election, in which Biden is expected to face off against Donald Trump, the frontrunner for the Republican nomination. Experts believe the president’s case for a second term will benefit from more optimistic views of the economy – but the hangover from the inflation wave that peaked a year and a half ago presents Republicans with a potent counterattack.“Over the last couple of years, people have been feeling the most pain on day-to-day spending, on things like groceries and gas prices and prescription drugs. And, fortunately, those prices are beginning to come down, which gives Democrats a stronger hand than we had just a few months ago,” said Adam Green, co-founder of advocacy group the Progressive Change Campaign Committee.“For a campaign that says that they want to finish the unfinished business of the Biden presidency, our polling shows that it’s perfectly OK to acknowledge that there has been pain, and there’s more business to do,” said Green.He added that the Biden campaign should “really focus the voters’ attention on the forward-looking agenda of one party wanting to help billionaires and corporations, and the Democratic party wanting to challenge corporate greed and bring down prices for consumers”.Biden has been unpopular with voters, according to poll aggregator FiveThirtyEight, even as employment grew strongly and the economy avoided the recession that many economists predicted was around the corner. While it’s not the only factor, pollsters have linked voters’ disapproval with Biden to the wave of price increases that peaked in June 2022 at levels not seen in more than four decades, and which have since been on the decline. An NBC News poll released this month showed Biden trailing Trump by about 20 points on the question of which candidate would better handle the economy, a finding echoed by other surveys.But new data appears to show Americans believe the economy has turned a corner. Late last month, the Conference Board reported its index of consumer confidence had hit its highest point since December 2021, while the University of Michigan’s survey of consumer sentiment has climbed to its highest level since July of that year.View image in fullscreen“The people who give positive views of the economy, they tend to point to, the unemployment rate is low, and they also point to that inflation is down from where it was,” said Jocelyn Kiley, an associate director at Pew Research Center, whose own data has found an uptick in positive economic views, particularly among Democrats.Trump and his Republican allies have capitalized on inflation to argue that Biden should be voted out, though economists say Biden’s policies are merely one ingredient in a trend exacerbated by Russia’s invasion of Ukraine, and global supply chain snarls that occurred as a result of Covid-19. Nikki Haley, the former South Carolina governor who is the last major challenger to the former president still in the race has said the economy is “crushing middle-class Americans”.skip past newsletter promotionafter newsletter promotionBut voters’ improving views of the economy could blunt those attacks ahead of the November election, where the GOP is also hoping to seize control of the Senate from Biden’s Democratic allies and maintain their majority in the House of Representatives. Lynn Vavreck, an American politics professor at the University of California, Los Angeles, said Trump might have to fall back to tried-and-true tactics from his 2016 victory over Hillary Clinton, such as promising to institute hardline immigration policies.“The economy is growing. People don’t really say that they feel good about it, but if you’re gonna load up your campaign on those people’s feelings, I feel like that’s a little risky,” said Vavreck, who has studied how economic conditions can affect presidential campaigns.“You could do that, and that would be a bit of a gamble, or you could find an issue on which you believe you are closer to most voters than Joe Biden, that is not about the economy, and you could try to reorient the conversation around that issue.”There is already evidence that harnessing outrage over the flow of undocumented immigrants into the United States is key to Trump’s campaign strategy. The former president’s meddling was a factor in the death of a rare bipartisan agreement in Congress to tighten immigration policy in exchange for Republican votes to approve assistance for Ukraine and Israel’s militaries.With the economy humming along, Trump is apparently nervous that the US economy could enter a recession at an inconvenient moment. “When there’s a crash, I hope it’s going to be during this next 12 months because I don’t want to be Herbert Hoover,” he said in an interview last month, referring to the US president who is often blamed for the Great Depression that began 95 years ago.Even though the rate of inflation has eased, albeit haltingly, prices for many consumer goods remain higher than they were compared with when Biden took office, which his opponents can still capitalize on, said the Republican strategist Doug Heye.“Consumers go to the grocery store, and they spend money, and they’re upset with what things cost, and that should always be what they’re talking about,” Heye said.While Biden has been quick to take credit for the strong hiring figures during his administration, polls show that hasn’t landed with voters. In recent months, the White House has shifted strategy, announcing efforts to get rid of junk fees and accusing corporations of “price gouging”.Evan Roth Smith, head pollster for the Democratic research firm Blueprint, said that lines up with his findings that voters care less about job growth and more about the fact that everything costs more.“Voters just felt a prioritization mismatch between what they were experiencing, the kind of pressures they were under, which isn’t that they didn’t have jobs, it’s that they couldn’t pay their bills,” Smith said.“Makes all the sense in the world that if the White House and president and the Biden campaign are touting this stuff, that they are going to make headway, and are making headway with voters in getting them to feel like Joe Biden in the Democratic party do understand.” More