LSBF Blog - Global Matters
The City of London is well-placed to build closer ties to emerging and fast growing markets, claims a PricewaterhouseCoopers (PwC) report.
In the future, the UK’s economic clout will continue to weaken as emerging markets and fast-growing economies catch up and realise their potential. In fact, by 2050 the G7 nations will no longer account for half of the world’s economic output and instead make up less than a quarter, according to a PwC report.
It’s a figure that continued to worry the lord mayor of London, Alan Yarrow, and saw him embark upon a tour of the Gulf to build ties and highlight the wide range of skills and expertise that the UK holds. Writing in CityAM, Mayor Yarrow wrote about his recent visit to the region to re-strengthen the UK’s relationship with its bilateral trading partner.Read more >>
London fintech startup Transferwise, founded in 2011 by Taavet Hinrikus and Kristo Käärmann, raised around $58 million of funding pushing its value close to $1 billion.
In a new round of funding, the London startup has managed to secure around $58 million which values the company close to the $1 billion. Transferwise is a fast-growing peer to peer money transfer startup, which is rumoured to be in talks with Facebook for remittance services.
The firm was founded in 2011 by Taavet Hinrikus and Kristo Käärmann, with the aim to make it cheaper and easier to transfer pounds to euros. Having been built by ex-Skype and PayPal engineers, it looked like the founders had the perfect backgrounds for this to take-off.Read more >>
Deloitte & Touche study claims Facebook generated 4.5mn jobs and added $227bn to global economy in 2014.
The number of users on the social network Facebook now surpasses 1.35 billion and would rank as the second most populated nation in the world, if it were a country.
It is figures like these that have led to a new study into the impact of Facebook on the real world, where the company states it has a real economic effect.Read more >>
A look at some of the world’s top sustainable businesses according to Corporate Knights 2015 Global 100 index.
In today’s increasingly environmentally aware world, businesses need to do all they can to ensure they minimise their impact on the globe. It’s with this aim in mind that Corporate Knights collates data to determine which firms are making careful use of resources, to make the most of their capital and ensure employees are achieving all they can.
Corporate Knights uses publicly disclosed information from global companies, ranging from mid- to mega-sized companies that have a market cap above $2 billion dollars, to evaluate 12 key performance indicators (KPIs) for calculating their rankings. The results are then released every year at the World Economic Forum in Davos.Read more >>
The European Central Bank failed to disappoint this week as it unveiled plans to buy government bonds worth €1.1 trillion with new money.
At Thursday’s conference, Mario Draghi finally ended rampant speculation over quantitative easing plans, which had markets positioning themselves ahead of the European Central Bank (ECB) conference.
The ECB bravely took the plunge and announced plans to launch a sovereign bond-buying scheme that will amount to more than one trillion euros, which exceeded market expectations.Read more >>
Hutchison Whampoa enters talks to buy Telefonica-owned O2 for £10.25 billion.
In a move that would create the UK’s biggest mobile group, Hutchison Whampoa confirmed that it is in negotiations to buy Telefonica for £10.25 billion. However, Frank Sixt, the finance director of Hutchison, has said there is “still work to do” as they embark on several weeks’ worth of discussions.
It’s the latest buy in a spending spree by Asia’s richest man, Li Ka-shing, who owns Hutchison Whampoa. Recently, Mr Li also spent £1.1 billion on Eversholt, to put him in control of a third of the UK’s trains.Read more >>
Chief executives in Britain are confident about UK economic growth in 2015.
The majority of UK chief executive officers (CEOs) believe there are more opportunities for their company to grow in today’s climate compared with three years ago, according to PricewaterhouseCoopers’ (PwC) annual Global CEO Survey, which was published at the World Economic Forum in Davos.
Three out of five (61 per cent) of British bosses were upbeat about their company’s growth prospects and 85 per cent of business leaders in the UK were confident about the year ahead, however, that’s slightly lower than a the 93 per cent reading from a year ago.Read more >>
The number of people out of work fell to its lowest level in the three months to November as UK jobs continued to grow.
Employment in the UK remains one of the highlights of the economic recovery and new figures released by the Office for National Statistics (ONS) confirms these facts. The unemployment level fell to its lowest in more than six years in three months to November, according to the report.
The number of unemployed people in the UK fell by 58,000 to 1.91 million and the unemployment rate edged lower to 5.8 per cent, its lowest reading since August 2008 and a little below expectations.
“We’re continuing to buck the European trend with strong growth and record job creation,” said Danny Alexander, chief secretary to the Treasury.Read more >>
The British financial sector recorded the fastest growth in Q4 of 2014 since 1996, reports CBI.
Overall business volumes in the UK’s financial sector rose at their fastest pace since 1996, according to the Confederation of British Industry (CBI). Firms in the sector also reported strong income growth and falling costs, helping to improve profitability for the second consecutive quarter.Read more >>
Economic growth in 2015 in the UK looks set to hit a seven-year high, with rapid expansion expected.
The UK’s economy is forecast to grow at its fastest rate in seven years, according to the latest quarterly forecast from the EY Item Club. Driving the economy forward will be a sustained period of inflation averaging around zero per cent, while real disposable income is expected to increase significantly.Read more >>
UK investment in China is set to quadruple over the next five years, according to King & Wood Mallesons study.
UK investors will pour four times as much money into China by 2020 when compared with last year, according to a new study from King & Wood Mallesons. The report highlights that foreign direct investment (FD) in China will double by 2020, however, the UK’s contribution to the total will quadruple in five years’ time.
The study, titled Branching Out: Investment Opportunities in China, states that the total investment from the UK is expected to rise to £26 billion by 2020, up from £6.7 billion, as the Chinese economy opens up further to foreign capital.
“With stable development, China has become the fastest growing country attracting the most investment in the world not merely because of the size of the market, but also due to our improving legal environment and increasingly healthy society,” said Wang Ling, managing partner of King & Wood Mallesons in China.Read more >>
EU exports outpaced imports to help widen the Eurozone trade surplus in November.
The EU’s trade in good balance widened in November, according to official figures from Eurostat. The Eurozone trade surplus was 20 billion euros in November 2014, that’s 3.5 billion higher than the same time a year ago.
It’s welcome news for the European economy, which has suffered at late from a slew of disappointing data, and will give the European Central Bank (ECB) hope for the recovery yet.Read more >>
Christine Lagarde, head of the IMF, says UK economic growth serves as an example to others.
Britain’s economic recovery provides an “eloquent and convincing” example to the rest of the European Union, the head of the International Monetary Fund (IMF) has said.
Christine Lagarde said the UK had shown clear leadership and that the economic recovery was “exactly the sort of result” she would like to see.Read more >>
Chancellor George Osborne says that UK economy could be the richest economy in the world.
As the UK recovery continues to grow in strength, optimism is reaching highs and businesses can look forward to a year of strong performances, especially in the small and medium-sized enterprise (SME) sector. The UK government also recognises the burgeoning recovery and believes the UK economy has the potential to become the richest in the world in 15 years’ time, according to the UK’s chancellor, George Osborne.
Speaking at the Royal Economic Society, Mr Osborne said: “The case for optimism is strengthening. If we are willing to take on the vested interests and pursue the right policies with consistency and discipline then there are no limits to what Britain can achieve.”Read more >>
UK internet sales broke above the £100 billion level for the first time.
Digital sales in the UK continue to rise as shoppers become more adept at navigating retailer’s online stores, racking up a total of £104 billion spent in 2014 to break above £100 billion for the first time ever.
It’s a vast sum of money and further highlights the health of UK economy which has mostly been powered on consumer spending. When comparing 2014 to the previous year, we can see sales grew by an impressive 14 per cent, according to the most recent IMRG Capgemini e-Retail Sales Index report.Read more >>
With inflation expectations at safe levels, it’s no surprise that many economies would like to have the UK’s inflation rate.
The surprise fall to 0.5 per cent in the annual CPI rate shocked markets and saw sterling decline, however, it’s likely that much of the world are jealous of the UK inflation rate. While many experts are worrying over deflationary risks and debt-deflation traps, most are missing the bigger picture.Read more >>
Over a third of UK SMEs expect to grow their international business in the year ahead.
Businesses in the UK are confident that the economic climate will continue to be healthy and more than a third of small and medium-sized enterprises (SMEs) anticipate growth in the amount of business they do overseas, according to research from Western Union Business Solutions.
Figures from the survey show that 83 per cent of respondents felt confident about the economic climate and those that felt very confident more than doubled in this quarter, according to the International Trade Monitor from Western Union Business Solutions.
The growing confidence in the situation at home has UK SMEs thinking about foreign shores, as 34 per cent of those surveyed predict an increase in their international business activity.Read more >>
UK creative industries continue to blossom, adding £77 billion to the economy in 2013.
Creative industries in the UK are booming, according to the latest report from the Department for Culture, Media and Sport. The data showed the sector contributing an astounding £77 billion to the UK economy in 2013, that’s one tenth higher than 2012’s total of £70 billion.
Breaking down the figures, the data essentially works out to a jaw dropping £8.8 million per hour, or £146,000 per minute, according to the report.Read more >>
You could help expand the potential reach of your small business by using social media.
Today’s generation seem to have arrived in this world clutching a smartphone, thereby knowing the complete ins and outs of all social media. However, many of us remember the days before public internet usage sky-rocketed, and often require some help navigating the different channels of social media available to us.
Indeed, there are many ways to utilise social media for your small business or startup, allowing you to further your reach and create a huge number of impressions. It’s a definite benefit of the digital age that allows one to easily reach the masses, however, it can be a little more complicated than posting a status to Facebook and waiting for the hordes of shoppers to turn up.Read more >>
Access to faster and more resilient broadband will be top priority of 2015 for most UK SMEs.
In today’s digital world, connectivity is key to success and it seems the UK’s population of small and medium-sized enterprises concur, as 90 per cent of UK SMEs will look to gain access to faster and more reliable broadband in 2015, according to a report commissioned by the internet provider TalkTalk.
The survey of 1,000 UK SMEs found that 90 per cent of respondents believed that broadband was crucial to future prosperity, and a quarter of all SMEs put technology in the list of top five priorities to achieve growth in 2015.Read more >>
City of London recruitment continues to expand alongside salary growth.
The number of jobs available for employees in the City of London continues to see annual growth, according to the latest London Employment Monitor report from financial services provider Morgan McKinley.
Indeed, in October 2014 the number of job opportunities increased by two per cent when compared with the same time in the previous year. Furthermore, the average salary increase for those securing new jobs in October 2014 was 18 per cent, indicating employers are seeking candidates with a strong skill base, according to the report.Read more >>
Innovate UK will provide a £210,000 fund in a bid to drive innovation in wearable tech.
The UK continues to be a hotbed for innovation and will be further boosted by a £210,000 fund aimed at innovation in the wearable technology sector. The fund will be provided by Innovate UK, the UK government’s technology strategy board, and will be awarded to six winners of the wearables competition it is organising.
Successful applicants will have created products that appeal to a wide commercial market and will then go on a trial with Innovate UK’s industry partners for three months. In order to ensure the success of the winners’ companies, Innovate UK will mentor the new firms, offering advice and support to accelerate the startups into achieving success.Read more >>
Research shows that Britain may see massive boost from the continuing fall in global oil prices.
The decline of oil prices could give the UK economy a huge growth boost, according to research from Oxford Economics. The report estimates that a collapse to $40 per barrel in early 2015 could add around 0.6 percentage points to the overall GDP growth in the UK.
Recently the price of Brent Crude oil, the international standard for tracking oil prices, fell to a new six-year low around $48.50. Since June 2014, the price of oil has plummeted by more than 50 per cent and this dizzying descent has analysts predicting prices as low as $35 per barrel.Read more >>
The number of UK SMEs and startups is increasing as the British economy continues to grow.
Small and medium-sized enterprises (SMEs) in the UK are thriving in the UK’s economic recovery, as outlined in the recent British Chambers of Commerce (BCC) Quarterly Economic Survey (QES).
However, while business is booming and the number of new companies being created is increasing, the recovery remains fragile and UK SMEs should ensure they have everything in place to expand, succeed and survive any potential economic slowdown.Read more >>
UK small businesses revenue growth was fastest since 2000, according to Barclays’ Small Business Income Index.
Small businesses enjoyed a more liquid 2014 as cash flowing into the bank accounts of these firms increased at its fastest rate in over 14 years, according to the Barclays Small Business Income Index.
In the year to October of 2014, the Barclays index recorded an eight per cent rise in the value of payments into small businesses’ bank accounts. The data also shows that, since 2000, the index as a whole has risen by 20 per cent.Read more >>