Temu’s UK operation doubles revenues and pre-tax profits
The UK operation of the Chinese online marketplace Temu doubled revenues and pre-tax profits last year, as British consumers snapped up products offered by the super-budget retailer.Temu UK reported revenues of $63.3m (£46.4m) last year, almost double the $32m in 2023, while pre-tax profits similarly surged from $2m to $3.9m, accounts show.
However, at an operating level, the company, which files under the name Whaleco UK at Companies House, reported losses widening from $7.9m to $8.7m year-on-year.The company put most of its broadening operating loss down to “exchange losses”.Because of Temu’s small pre-tax profit, the company paid just $985,000 in UK corporation tax, up from $517,000 in 2023.
The company’s UK operation reports its income as a “service fee”, similar to how Amazon UK and Google UK operate, and says it generates revenues “through the provision of corporate support services to its affiliated entities”.While Temu is experiencing explosive growth in the UK, it – and others such as cheap fast-fashion compatriot Shein and e-commerce company Amazon – potentially face having to implement price rises after the government announced in April a review of a rule that allows small parcels to enter the UK duty-free.The current rule allows international retailers to send packages to Britain worth less than £135 without incurring import taxes.UK retailers have said this rule gives companies such as Temu and Shein an unfair advantage.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionEarlier this year, Theo Paphitis, the former Dragons’ Den star whose retail group includes Ryman and Robert Dyas, said the measure was devastating UK high streets.
The US has already moved to scrap the “de minimis” exemption for parcels worth less than $800 from 29 August.On Wednesday, the boss of luxury retailer Fortnum & Mason said this was a factor in having to significantly increase the cost of products such as luxury tea bought by US customers.In July, Michael McGrath, the European Union justice commissioner, expressed shock at the toxicity and dangers of some goods being sold by Shein and Temu.With 12m low-value parcels coming into the EU each day from online retailers outside the bloc, McGrath has vowed to crack down on the sale of goods that blatantly break the law.The EU is also considering the abolition of the €150 (£130) duty-free threshold, and the introduction of a handling fee for each package, which may deter low-value purchases and help pay the cost of extra customs investigations.
Federal Reserve cuts interest rates by a quarter point, for first time in nearly a year – as it happened
The Fed just announced an interest rate cut by a quarter point, which was largely anticipated amid a weakening labor market.This is the first time the Fed has cut rates since December 2024. Rates now stand at a range of 4% to 4.25%, the lowest since November 2022.Stay tuned for a press conference Fed chair Jerome Powell is expected to give at 2
Federal Reserve cuts US interest rates for first time since December
The US Federal Reserve cut interest rates on Wednesday, its first rate cut since December, as the central bank moved to stabilize a wobbling labor market even as Donald Trump’s tariffs continue to push up prices.Rates are now at a range of 4% to 4.25% – the lowest since November 2022. But the decision is unlikely to satisfy Trump, who has lambasted the Fed for acting “too late” and called for a far bigger cut.“Job gains have slowed and the downside risks to unemployment have risen,” Fed chair Jerome Powell said during a closely watched press conference
Meta announces first Ray-Ban smart glasses with in-built augmented reality display
Meta has announced three new pairs of AI smart glasses, including the first Ray-Bans with a built-in screen for augmented reality.The Meta Ray-Ban Display will be the first smart glasses with a heads-up display from a mainstream brand since the ill-fated Google Glass. They use a classic Wayfarer-like styling to avoid looking too obviously like wearable technology, while still having a camera, speakers and microphone.A small, bright and crisp colour display is projected on to the inside of the right lens, which appears to float just below the wearer’s eye line, and can show anything from text and images to live video calls. The display appears when interacting with the glasses, but isn’t visible from the outside
Google DeepMind claims ‘historic’ AI breakthrough in problem solving
Google DeepMind claims it has made a “historic” artificial intelligence breakthrough akin to the Deep Blue computer defeating Garry Kasparov at chess in 1997 and an AI beating a human Go champion in 2016.A version of the company’s Gemini 2.5 AI model solved a complex real-world problem that stumped human computer programmers to become the first AI model to win a gold medal at an international programming competition held earlier this month in Azerbaijan.In a performance that the tech company called a “profound leap in abstract problem-solving”, it took less than half an hour to work out how to weigh up an infinite number of possibilities in order to send a liquid through a network of ducts to a set of interconnected reservoirs. The goal was to distribute it as quickly as possible
Eddie Hearn threatens to sue Chris Eubank Jr over ‘sabotage’ claim before Conor Benn rematch
Eddie Hearn has threatened to sue Chris Eubank Jr, after the boxer fired the first shots during a press conference ahead of his rematch with Conor Benn by accusing his opponent’s team of dirty tricks and “sabotage”.Eubank Jr, who won their first bout by unanimous decision in April, claimed an ambulance taking him to hospital afterwards was stopped – and appeared to point the finger at Benn’s promoters, Matchroom Boxing.The claim was met with derision by Matchroom chairman Hearn, who said “I’ve never heard so much waffle” and later threatened to take legal action against Eubank Jr for his comments. The press conference stoked hostilities before the two men meet at the Tottenham Hotspur Stadium in London on 15 November.“They did everything they could to try and destroy me in that last fight,” said Eubank Jr of Benn’s promoters
Surrey require 249 to beat Notts in title battle: county cricket, day three – as it happened
Rain and bad light stalked The Oval as Nottinghamshire and Surrey inched towards a denouement. There was time for Notts to add another 37 runs for the last two wickets, including a corking straight drive for four from Josh Tongue. On the next ball, though, he edged behind to Matt Fisher, who finished with 11 wickets in the match. Brett Hutton was left unbeaten on an invaluable 42 for the visitors.Set 315 to win, Rory Burns and Dom Sibley clinked down the pavilion steps, applauded by Surrey supporters sitting through the gloom
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