Entry-level workers face ‘job-pocalypse’ as firms turn to AI; risk of winter blackouts falls – business live

10.57am BST US opens probe into nearly 2.9 million Tesla vehicles over FSD traffic violations The U.S. National Highway Traffic Safety Administration is opening an investigation into 2.88 million Tesla vehicles equipped with its Full Self-Driving system over traffic-safety violations after a series of crashes. The auto safety agency said FSD - an assistance system that requires drivers to pay attention and intervene if needed - has “induced vehicle behavior that violated traffic safety laws“, Reuters reports. The agency said it has reports of Tesla vehicles driving through red traffic lights and driving against the proper direction of travel during a lane change, while using the system. NHTSA said it has six reports in which a Tesla vehicle, operating with FSD engaged, “approached an intersection with a red traffic signal, continued to travel into the intersection against the red light and was subsequently involved in a crash with other motor vehicles in the intersection.“ NHTSA said four crashes resulted in one or more injuries. Related: ‘The vehicle suddenly accelerated with our baby in it’: the terrifying truth about why Tesla’s cars keep crashing 10.49am BST DRC to start building gold reserve The Democratic Republic of Congo is planning to join the dash into gold. The DRC will start building gold reserves to bolster its currency and lift its economy, the central bank governor said today. Andre Wameso, who was appointed as head of the central bank in July, told Reuters: “Among the first decisions that I took... was to be able to constitute gold reserves for the central bank alongside the main hard currency, which is the dollar.” Wameso’s move comes as gold hit fresh record highs over $4,000/ounce this week, as investors drive the ‘debasement trade’": Related: ‘The debasement trade’: is this what’s driving gold, bitcoin and shares to record highs? 10.40am BST Wall Street futures are trading marginally in the red today amid growing warnings of bloated AI valuations. Raffi Boyadjian, lead market analyst at Trading Point, says: A day after the Bank of England warned about an AI bubble, JP Morgan boss Jamie Dimon became the next to talk of a “sharp correction”. 10.31am BST Compensation schemes for Post Office Horizon IT scandal victims ‘to be improved’ Compensation schemes for victims of the Post Office Horizon IT scandal will be improved, with a new appeals process and funded legal advice for post office operators, the government has announced. Responding to the first part of the findings from a two-year public inquiry into the Horizon IT scandal, regarded as one of the worst miscarriages of justice in UK legal history, the business secretary, Peter Kyle, said there would be anew appeals process for people who have accepted fixed-sum offers under the Horizon Shortfall Scheme, one of several compensation schemes. Funded legal advice will also be offered. The Post Office will close this scheme on 31 January, to give post office operators who have not yet applied more time to put in applications. More here: Related: Compensation schemes for Post Office Horizon IT scandal victims ‘to be improved’ 9.47am BST Mann: high inflation has caused scarring, income uncertainty, and weak consumption growth The surge of UK inflation in the last few years has “scarred” consumers, Bank of England policymaker Catherine Mann fears. Mann is warning in a speech that “the rapid increase in the price level has scarred consumers”, even as inflation has moderated, allowing incomes to rise faster than prices. She explains that research shows that households who are more uncertain about future inflation become more uncertain about their future incomes. This leads them to save money, rather than spend it, which pulls down consumption. Thus, she says, the Bank should keep interest rates high to bring inflation down and reassure consumers that price stability is intact, rather than lower borrowing costs to encourage consumption. As Mann puts it: In sum, high inflation itself is behind scarring, income uncertainty, and weak consumption growth. Therefore, monetary policy needs to continue to focus on reducing inflation to achieve the environment of price stability. Then, households can return to their normal consumption-savings behavior which is conducive to stronger consumer demand. Mann (among the majority of policymakers who voted to leave interest rates hold last month) also warns that “we are not there yet” in bringing down inflation expectations. She explains: It is perhaps counterintuitive that in order to create an environment conducive to growth, monetary policy must remain restrictive for longer. But this is necessary to bring inflation sustainably back to our 2% target in the medium term. My former boss Alan Greenspan (I started my career at the Federal Reserve Board) said it succinctly: “We will be at price stability when households and businesses need not factor expectations of changes in the average level of prices into their decisions.” The evidence from consumer behavior is that we are not there yet. Updated at 9.55am BST 9.32am BST Business leaders may be ‘pulling up the ladder’ behind them, by focusing on AI tools rather than taking on new staff, warns Kate Field, global head human and social sustainability at the BSI. Field explains: “As roles are streamlined or eliminated before experience can be gained, we risk eroding the professional aspirations of people at the very start of their careers and before they’ve had the chance to flourish. Our findings suggest a troubling trend: senior leaders may be ‘pulling up the ladder’, prioritizing short-term productivity over long-term workforce resilience. If left unchecked, this could have lasting consequences, from weakening our skills pipeline, deepening generational inequality and our research suggests, dividing large companies and SMEs. SMEs have been placed in a critical position, shaping the future of work by shouldering the responsibility of training for Gen Z.” 9.06am BST The BSI’s poll of global business leaders also found that large organizations are embracing AI more aggressively compared with SMEs. It says: Half (51%) of the respondents working in SMEs say AI is crucial to the growth of their organization, compared with nearly seven in ten respondents in large organizations (69%). This is reflected in its impact being felt; 70% of large businesses reported AI saves money compared to just half of SMEs (51%). 8.49am BST Entry-level workers face ‘job-pocalypse’ due to AI Entry-level workers are facing a ‘job-pocalypse’ due to companies favouring artificial intelligence systems over new hires, a new study of global business leaders shows. A new report by the British Standards Institution (BSI) has found that business leaders are prioritising automation through AI to fill skills gaps, in lieu of training for junior employees. The BSI polled more than 850 bosses in Australia, China, France, Germany, Japan, the UK, and the US, and found that 41% said AI is enabling headcount reductions. Nearly a third of all respondents reported that their organization now explores AI solutions before considering hiring a human. Two-fifths of leaders revealed that entry-level roles have already been reduced or cut due to efficiencies made by AI conducting research, admin and briefing tasks, and 43% expect this to happen in the next year. Susan Taylor Martin, CEO of BSI says: “AI represents an enormous opportunity for businesses globally, but as they chase greater productivity and efficiency, we must not lose sight of the fact that it is ultimately people who power progress. Our research makes clear that the tension between making the most of AI and enabling a flourishing workforce is the defining challenge of our time. There is an urgent need for long-term thinking and workforce investment, alongside investment in AI tools, to ensure sustainable and productive employment.” Worryingly for those trying to enter the jobs market, a quarter of business leaders said they believe most or all tasks done by an entry-level colleague could be performed by AI. A third suspect their own first job would not exist today, due to the rise of artificial intelligence tools. And… 55% said they felt that the benefits of implementing AI in organizations would be worth the disruptions to workforces. These findings will add to concerns that graduates face a workforce crisis as they battle AI in the labour market. A poll released in August found that half of UK adults fear AI will change, or eliminate, their jobs. Related: Half of UK adults worry that AI will take or alter their job, poll finds Telecoms firm BT is replacing about 10,000 jobs with AI systems, as part of a wider workforce reduction programme. Related: BT to axe up to 55,000 jobs by 2030 as it pushes into AI Updated at 9.21am BST 8.32am BST HSBC drags FTSE 100 down The London stock market is in the red this morning, pulled down by banking giant HSBC. The FTSE 100 has dropped by 30 points, or 0.3%, to 9518, a day after hitting a record high. HSBC has dropped by 6%, after it announced plans to take full control of Hong Kong’s Hang Seng Bank, in which it already owns a controlling shareholding. Updated at 9.17am BST 8.25am BST ICAEW: UK business confidence in freefall UK business confidence has dropped to a three-year low as companies fret about higher taxes, a new poll has shown. ICAEW’s business sentiment has dropped to -7.3 for the third quarter of 2025, down from -4.2 in April-June. That’s the fifth consecutive quarterly fall in a row, and the lowest level since the last three months of 2022. ICAEW explains: This drop in confidence was likely driven by record high tax concerns squeezing profits growth, recruitment and investment activity. Muted domestic sales growth also weighed on sentiment, as firms continue to lower their expectations for the year ahead.” Updated at 8.33am BST 8.06am BST Lloyds shares drop as additional motor finance costs loom Shares in Lloyds Bank have dropped by 3.5% at the start of trading in London, after it warned shareholders it could face a larger financial hit from the UK motor finance scandal. Lloyds told the City this morning that it may need to take an “additional provision” to cover the cost of the issue. This follows the unveiling of a compensation scheme for motorists who bought cars via discretionary commission deals from 2007 to 2024, which could lead to average payouts of £700. Lloyds says: As previously noted, the Group continues to consider the impact and implications of the recently published FCA consultation paper on motor finance. Uncertainties remain outstanding on the interpretation and implementation of the proposals but based on our initial analysis and the characteristics of the proposed scheme, an additional provision is likely to be required which may be material. This remains subject to ongoing analysis and review of the proposals. The Group will continue to update the market as and when appropriate.” Lloyds shares have dropped to 84.5p. Updated at 8.32am BST 7.38am BST JP Morgan's Dimon warns about risks of US stock market fall The boss of JP Morgan has joined the choir of experts warning that a stock market tumble may be approaching. Jamie Dimon has revealed he is concerned that the US stock market is overheated, and cautioned there could be a serious market correction, which he said could come in the next six months to two years. Speaking to the BBC, Dimon said a “lot of things out there” are creating an atmosphere of uncertainty, such as geopolitical risks, government spending, and the remilitarisation of the world. Dimon says: All these things cause a lot of issues that we don’t know how to answer. So I say the level of uncertainty should be higher in most people’s minds than what I would call normal.” His comments come as the Bank of England warned of a growing risk of a “sudden correction” in global markets, citing concerns about soaring valuations of leading AI tech companies. Related: Bank of England warns of growing risk that AI bubble could burst Updated at 8.32am BST 7.30am BST Table: How water bills will rise Here’s a table showing the increase to water bills signed off by the CMA, in its “provisional redeterminations on water price controls”. Updated at 7.31am BST 7.25am BST Britain’s risk of winter blackouts drops to five year low From water to energy … and Britain’s risk of winter blackouts has fallen to its lowest level in five years, according to the energy system operator … but it won’t necessarily be affordable. Forecasts by the National Energy System Operator (Neso) show that electricity supply margins – the amount of generation available above the expected levels of demand – could reach 10% this winter. This would be the healthiest margins since the winter of 2019-2020. However, the healthier supplies are down to an increase in energy imports, meaning they could be more expensive if international markets demand higher prices. The Neso report expects margins to be healthier in part due to the start up of the Greenlink interconnector which runs from Pembrokeshire in Wales to County Wexford in Ireland and which will import power when prices are higher in the UK than in Ireland. The UK’s energy system also has a greater availability of gas plants this winter, after some returned from outage last winter, but this comes as the UK’s gas supply margins shrink to their lowest in four years as the North Sea’s production continues to dwindle. Neso warned that the UK will need to rely more heavily on imports of gas via liquified natural gas (LNG) tankers, which typically come from the US and Qatar. National Gas, which runs the UK’s gas transmission network, expects the UK’s overall gas demand to be slightly lower this winter but added that it can expect 6% less gas from the UK North Sea this winter compared with last year. Instead, it will increase LNG imports by 7%, it said. This raises the chance of higher gas costs if the market price continues to rise. In Europe, gas storage levels are slightly lower than in previous winters meaning more LNG imports could be needed in neighbouring markets, too. Updated at 8.31am BST 7.24am BST Introduction: UK watchdog rejects 80% of water firms' price hike requests, but.... Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy. Millions of households in England are to be hit with even higher water bill increases than previously planned, under plans being unveiled by the competition regulator this morning. But the pain isn’t going to be as bad as the water companies had hoped. The Competitions and Markets Authority has decided to approve around a fifth of spending increases proposed by water companies, on top of existing plans signed off by water regulator Ofwat, which will be funded by increases in bills. And while it has “largely rejected” companies’ funding requests for new activities and projects, it is provisionally allowing 21% of the total £2.7bn requested by Anglian Water, Northumbrian Water, South East Water, Southern Water, and Wessex Water. This means they can seek an extra £556m in revenue, which is expected to mean an average increase of 3% in bills for customers of the disputing companies. That is on top of the 24% increase in bills for customers of these companies under Ofwat’s original determination, which companies had complained was too stingy. The CMA says this extra money will fund more resilient supply, reduce pollution and also reflect increased financing costs. Kirstin Baker, who chaired the group which examined the issue, says: We’ve found that water companies’ requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified. We understand the real pressure on household budgets and have worked to keep increases to a minimum, while still ensuring there is funding to deliver essential improvements at reasonable cost. The agenda 7am BST: German trade balance 9.30am BST: Economic activity and social change in the UK, real-time indicators from the ONS 9.30am BST: Bank of England policymaker Catherine Mann gives keynote speech at Resolution Foundation event 11am BST: Financial Conduct Authority annual public meeting 1.30pm BST: Federal Reserve chair Jerome Powell speaks Updated at 8.28am BST