Business and Economics
Business and Economics News
Sterling slides as Bank of England slashes growth forecasts
The Bank of England has downgraded its growth forecast for 2019 growth to 1.2%, which would be the smallest rise since 2009. Sterling tumbled on the news and was trading 0.6% down versus the US dollar at $1.285. Against the euro, the pound was down 0.3% at €1.134. The PM flew to Brussels today to push for concessions from EU leaders on the divorce deal agreed with them last year, which has been rejected by Parliament. Both Mr Tusk and...
Brexit & global economic concerns cause UK economy to stall
UK's service sector stagnated in January according to the IHS Markit/CIPS purchasing managers' index. The figures showed a reading of 50.1 in January, lower than December's 51.2. The pound fell 0.17 per cent to $1.3017 following the disappointing data. Britain’s didn't fall into a recession after the 2016 referendum vote However, growth slowed sharply in late 2018 as the Brexit deadline approached with no agreement, on how to leave the European project, set in place. IHS Markit's Chris Williamson said: "Growth...
UK workforce headed for crisis post-Brexit as businesses plan to cut full-time staff
Nearly two thirds of businesses plan to hire part-time staff over full-time once we leave the EU in an attempt to save money, new research has revealed. The report found that a significant majority of businesses believe the cost of hiring talent in the UK will increase post-Brexit, particularly if it limits free movement for workers. The research also suggests that not only will Brexit affect workforce requirements, but it will potentially complicate labour availability as well. More companies are...
Nissan won’t build new car in Sunderland – Brexit ‘not helping’ decision
In a fresh blow to the North East economy it has been announced that Nissan won’t make the new X-Trail vehicle at their Sunderland car plant. There are a number of reasons for the decision but uncertainty over Brexit was one of the factors that contributed to the change of plans. The car maker has originally planned to build the new range in the North East, and could have led to an expansion of the workforce. Nissan's Europe division boss...
Nearly 30 years-worth of Britain’s net EU budgetary contribution has just been lost in one click
Nearly 30 years-worth of Britain’s net EU budgetary contribution was lost in one click this week after Barclays announced it is to move €190 billion (£166 billion) worth of assets from the UK to Ireland in preparation for a possible no-deal Brexit. The bank said it "cannot wait any longer" to implement its Brexit contingency plan, which was approved by the high court on Wednesday. Assets linked to around 5,000 clients will be moved to a Dublin-based unit, which is expected...
A third of UK firms may now move abroad because of Brexit
Industry bosses have warned that a third of British businesses are thinking of relocating abroad. The latest figures from the Institute of Directors (IOD) warn 16% of companies have already started the move, and 13% have now started actively planning it. The IOD surveyed 1,200 company directors and in shocking news for the British economy and UK jobs found only 62% confirmed that they have no intention of setting up outside the UK. This is a shocking vote of no...
Car industry hits ‘red alert’ as investment drops by £2bn in three years
Investment in the UK car sector has dropped by almost £2 billion in three years as Brexit fears put firms on "red alert", the industry's trade body said. In 2015, car manufacturers invested £2.5 billion in the UK. Since then it has fallen ever year and in 2018 was just £589 million. The Society of Motor Manufacturers and Traders (SMMT) say the fall-off in inward investment is down to Brexit uncertainty, which has "done enormous damage" according to SMMT chief Mike Hawes....
‘This is not rocket science’: Historian tells billionaires at Davos to pay fair share of tax
Historian Rutger Bregman visited Davos and did not hold back on his thoughts about the super rich. He called out 'stupid philanthropy schemes' Bregman said that the real issue that needs tackling to make a fairer playing field is tax avoidance. He said: 'We can invite Bono once more but come on we've got to be talking about taxes ... all the rest is bullshit in my opinion,' he says. Bregaman said he feels like he’s ‘at a firefighters conference...
Reality of Brexit uncertainty starting to bite as business and personal insolvencies soar
The reality of Brexit uncertainty is starting to bite, experts have said after the number of personal insolvencies hit its highest level since 2011. Insolvency Service figures showed 115,299 people became insolvent in England and Wales last year, 20 per cent up on 2017. The number of companies going under also reached a five-year high in 2018. There were 17,439 company insolvencies last year — the highest since 2013 — driven by a big jump in numbers of builders and retailers...