Ali Lyon

Applied Nutrition reported adjusted pre-tax profit growth of more than 40% and expects revenue to exceed £200 million, with earnings forecast to rise 13% to about £49 million. However, whey protein prices have increased five-fold as demand rises partly because GLP-1 weight-loss drugs such as Wegovy and Mounjaro can contribute to muscle loss, prompting users to consume more protein and undertake additional weight training. The higher ingredient costs are expected to reduce Applied Nutrition’s margins, despite the company’s shares rising 7.5% after the results. The article also notes wider effects of GLP-1 drugs on food, nutrition and alcohol companies.

Economists and bond investors are urging the Bank of England to halt or substantially slow its active sales of quantitative-easing-era gilts, arguing that the policy increases long-term borrowing costs and crystallizes losses for taxpayers. The Bank estimates that quantitative tightening has added up to 30 basis points to long-term yields, while losses could reach £125 billion. Although Governor Andrew Bailey has defended active sales as preserving capacity for future quantitative easing, analysts expect the Monetary Policy Committee to reduce its annual balance-sheet reduction target and possibly end long-bond sales at its next review.

John Healey faces pressure to raise taxes at his first Budget as the government attempts to fund defence and welfare commitments while maintaining Rachel Reeves’s fiscal rules. Likely options include higher taxes on expensive homes, aligning capital gains tax with income tax, levies on vape retailers and online sellers, a bank windfall tax, changes to inheritance and pension tax relief, and extending national insurance to investment, property or pension income. Other proposals, including a wealth tax, are presented as politically and economically contentious, while the government may also adjust green levies, welfare spending and devolved funding.