NEWS - BUSINESS & ECONOMY
Bank of England deputy governor Jon Cunliffe forecasts improvement in Britain’s productivity as reserve of spare labour runs out.
The solution to Britain’s productivity problem could be just around the corner, according to Jon Cunliffe, the Bank of England’s (BOE’s) deputy governor for financial stability. He predicts that productivity in the UK is set to gradually increase as the economy’s spare labour capacity dries up.
Speaking in Luton, Mr Cunliffe outlined how several factors were aligning to suggest that productivity growth in Britain would resume after eight years of contraction.Read more >>
European stock markets surge on renewed optimism over the Greek debt crisis.
Equities in Europe took a positive turn after new developments in the ongoing Greek debt crisis on Monday 22nd June. Hopes for a coming deal between the heavily indebted nation and its European creditors soared on news that Greece had submitted a new reform proposal that sought a compromise on key issues.Read more >>
UK Chancellor George Osborne will announce plans to create a law banning future governments from running a deficit.
The UK’s chancellor of the exchequer, George Osborne, will use his yearly speech at Mansion House the evening of June 10th to announce plans to introduce a law that forces future governments to run a budget surplus. It will effectively require governments to stop spending all the taxes and money it collects in “normal” economic conditions, instead saving some for times of hardship.Read more >>
Research suggests collective value of online shopping in US, China, UK and Germany will double by 2018 to £645 billion.
The four largest online shopping markets in the world will continue to grow over the next three years, with new research suggesting that the size of the market will double to £645 billion by 2018.Read more >>
The UK’s economy is on a “firm footing” after growing faster than predicted in 2014 according to CBI forecast.
Britain’s economy has nothing to worry about, despite a slight downgrade in recent growth forecasts. In fact, the UK’s economy is on a “firm footing” after growth in 2014 surpassed expectations. Predictions point towards solid, steady and sustainable growth in 2016, according to the Confederation of British Industry (CBI).Read more >>
UK Chancellor George Osborne announces plans to sell off government's remaining 30 per cent stake in Royal Mail.
In a bid to further reduce the budget deficit, UK chancellor George Osborne revealed plans to sell the remaining 30 per cent stake in Royal Mail. The shares are currently worth £1.5 billion and the sale will begin later this year, Mr Osborne announced on Thursday.
The plans were detailed alongside £3 billion worth of debt-reduction measures, which highlight the Conservatives' pledge to wipe out national debt.Read more >>
For the first time since the financial crisis, the economies of all the EU member states are forecast to expand this year, says a World Bank report.
Economic expansion is set for all of the European Union’s (EU’s) economies in 2015 for the first time since the financial crisis. The growth will be driven higher by a variety of factors including low oil prices, a weaker euro and the European Central Bank’s government bond buying scheme, according to a new World Bank report
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We look at the bills that were outlined in the first fully Conservative Queen’s speech in two decades.
Marking the official state opening of the new parliamentary session, the Queen’s speech set out the incoming government’s proposed legislation for the next five years. Written by the government of the day and delivered by the monarch in tone that passes no judgement over the bills, the Queen’s speech was packed full of economy-boosting proposals.Read more >>
New UK business secretary Sajid Javid to cut red tape by £10 billion over next five years.
Sajid Javid, the new business secretary, will outline how the new parliament will cut red tape for businesses by at least £10 billion. It will be his first speech since replacing Vince Cable and will include details of the enterprise bill alongside plans to create two million jobs over the next five years.Read more >>
The UK restaurant sector has boomed with turnover reaching £21 billion, a 39 per cent increase in five years.
Britain’s restaurants continued to cater to the public and saw business positively boom in the years since 2010, despite the economic downturn. Turnover in the dining out industry reached £21.6 billion in 2014, an increase of 39 per cent from the £15.5 billion recorded in 2010, according to data from Companies House analysed by finance company LDF.Read more >>
Unemployment rates in the UK have fallen to 5.5 per cent, their lowest levels since 2008.
The number of people without a job in the UK declined to a seven-year low, according to official figures from the Office for National Statistics (ONS). Furthermore, the data has highlighted that wages are also growing.Read more >>
UK Chancellor George Osborne is set to outline plans for “radical devolution” of powers to English cities.
In his first major speech after the General Election, UK chancellor George Osborne promised cities in England the chance to gain devolved powers. The one caveat is that these cities must agree to be governed by a directly elected mayor.Read more >>
Economic growth in France surged past expectations to its highest rate in two years.
Figures on Wednesday showed economic growth in France accelerated in the first three months of this year. In fact, it hit France’s joint-highest figure since 2011.
The French INSEE statistical office reported that the nation’s economy grew by 0.6 per cent in the first quarter of 2015, surpassing expectations for growth of 0.4 per cent.Read more >>
British businesses have already outlined what they hope new Business Secretary Sajid Javid will prioritise.
The UK welcomes the appointment of Sajid Javid by David Cameron as the new Secretary of State for Business, but he’d barely put a foot through the door before the business community begin setting out their priorities.Read more >>
China’s third interest rate reduction in six months hints at further slowing economy.
The People’s Bank of China (PBOC) has cut interest rates for the third time in six months to boost the nation’s slowing economy. However, while shares in China surged on the news to erase earlier losses, it’s likely that the rate cut indicates further economic slowdowns on the horizon.Read more >>
Britain’s General Election boosted financial markets after a Conservative majority win became clear.
The UK’s General Election race ended with a note of finality on Friday, as the previously too-close-to-call election developed into an emphatic victory for the Conservative party. Sterling soared and the FTSE-100 was lifted higher as investors cheered the news.Read more >>
Telecoms group BT reports rise in annual profits is driven by broadband and football.
The telecoms giant, BT Group, announced impressive growth in pre-tax profits on the year, which the group said is being driven by attracting new broadband customers. BT claimed it’s securing more new broadband customers than any of its rivals, which could be down to the group securing the rights to screen a number of sporting events.Read more >>
As Tesco continues to deal with its mega loss, Sainsbury’s posts its first annual loss for ten years.
Sainsbury’s, the UK’s third-largest supermarket chain, just announced its first full-year loss in a decade. It’s a sign that the competition between British supermarkets is increasing and the news has sent Sainsbury’s share price tumbling.Read more >>
In the aftermath of the record-revenue-breaking Mayweather vs Pacquiao boxing match, we explore what makes sport the money-making industry it is today.
Sport in the modern day is as much about business as it is athleticism. Many sports teams and sporting individuals have been moulded into internationally recognisable, money-spinning brands. Whole industries have developed around the sports that were once played for mere accolades.Read more >>
What can we say about the future relationship of business and society in the age of knowledge economy?
What is a business and does it have an obligation to society? This important question has sprung up once again, especially considering that 2015's General Election is just around the corner on May 7th.Read more >>
Statistics show that the number of new accountancy businesses is increasing at its fastest rate since the recession.
The accountancy profession is returning to a state last seen before the financial crisis, according to research from SJD Accountancy. The firm’s report showed the number of accountancy related startups increased at the fastest rate since 2008.Read more >>
With businesses increasingly turning to economists when it comes to decision making, we explore the ins and outs of economics and analytics.
“Ignore economists at your peril” are the words of a McKinsey report that highlights the growing importance of seeking advice from economists. The use of economics has widened from being a tool to determine governmental and political policies, to something highly relevant to businesses.Read more >>
In the wake of Tesco’s mega loss, we wonder if it’s time for the death of the big supermarket.
Tesco’s pre-tax annual loss of £6.4 billion last year came as a surprise: analysts had only been estimating a loss of around £4 billion. It was the biggest loss in Tesco’s 96-year history, the sixth biggest corporate loss in the UK, and the largest annual loss ever witnessed by a British retailer.Read more >>
The great Chinese engine of growth has slowed further, but what does it really mean?
China’s economic growth forecasts have been cut to just seven per cent for 2015, and first quarter growth for this year was shown to slow to seven per cent, which was a six-year low. But while China’s economic activity remains much higher than those of most other countries, the slowdown is still thought to be a cause for concern by many analysts.Read more >>
The financial technology sector is continuing to attract large amounts of investment well into 2015.
In 2014, the FinTech industry attracted more than $12 billion in investment. Today, the appetite for FinTech startups among venture capital funds continues to grow.
Europe enjoyed the most impressive growth rate, with FinTech investment rising 215 per cent to $1.48 billion in 2014, according to Accenture. Of all European countries it was the UK and Ireland that excelled, accounting for 42 per cent of European investment in the sector.Read more >>