Business news 12 July 2022
James Salmon, Operations Director.
Train strikes on the way. Retail sales. The next PM? Currencies. Russian Gas and Heathrow in the business news.
Train strikes on the way
Drivers from 8 rail companies voted yesterday in favour of industrial action in a row over pay. Mick Whelan, general secretary of Aslef, told the BBC that strike action could happen in the coming weeks if talks over wage rises stall. “We don’t do this lightly,” he said. “We see it as a sign of failure when we do have to do it.” Mr Whelan added “Quite simply, we haven’t had a pay rise for three years. Train drivers went to work during the pandemic, we moved food and medicine around the country, we got other key workers to work and with the cost of living increase and inflation going through the roof, people feel they deserve a pay rise.”. The counter argument is that train drivers are already on a median salary of £60k per annum and paid well above the national average.
Retail Sales
UK Retail Sales are falling at a rate “not seen since the depths of the pandemic”, as price rises hit household budgets, the British Retail Consortium a UK retail body has said. Shoppers are cutting back on white goods such as fridges and dishwashers as well as opting for cheaper brands, the BRC added. Sales in shops and online have dropped for three months in a row, figures from the BRC and accountants KPMG indicate.
The next PM?
Rishi Sunak – currently leading the polls – is set today to launch his bid to become UK prime minister with a pledge to cut taxes – but only once inflation has been brought back under control. At his campaign launch event on Tuesday, the former chancellor who raised taxes this year, will insist he has a plan to deal with the economic “headwinds” the country is facing, saying it is a matter of “when” not “if” the tax burden starts to fall.Candidates will have to summon 20 votes today to progress with the first ballot to be held tomorrow as they seek to narrow the field. The new PM should be announced by 5th September according to the 1922 committee.
Currencies
The dollar’s rise continues as investors seek safe havens and Europe faced rising energy costs and inflation. Yesterday the dollar came close to parity with the Euro in what would be a significant milestone in the dollar’s march. Meanwhile political uncertainty and the worse economic conditions in the G7 are keeping the pound weak. Overnight, DOW dropped -0.52%. S&P 500 dropped -1.15%. NASDAQ dropped -2.26%.
Russian Gas
Markets dropped yesterday after price of natural gas surged 5% following the Russian closure of the Nordstream 1 gas pipeline for annual maintenance. Both Germany and France have said the Russian pipeline closure could be made permanent in response to sanctions. Their response has been to re-start coal fired power plants. Russia could survive cutting off the gas. Its current account has surged to new highs on its sale of hydrocarbons at record prices in the last six months. Although its exports have fallen in volume by 15%, the price rises have more than made up for it. The global squeeze on energy supply is causing crippling shortages and has sent energy prices surging. And it looks set to get worse, according to the head of the International Energy Agency. “The world has never witnessed such a major energy crisis in terms of its depth and its complexity,” IEA Executive Director Fatih Birol said at a global energy forum in Australia.
Heathrow
Heathrow Airport has apologised to passengers caught up in recent travel chaos but warned that more flights could be cancelled. The UK’s largest airport asked airlines to remove 61 flights from Monday’s schedules, as it seeks to cope with soaring demand and staff shortages. Heathrow’s boss John Holland-Kaye said the airport would request “further action if necessary”.
Why should you become a CPA member!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for some time to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers.
Unlike other credit management companies, we charge our members a fixed annual subscription irrespective of how high the debt value is!
It takes less than 17 minutes to see how you would benefit, do you have the time now?
No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!
If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA for purchase on recourse?
CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.
Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.
Just call 020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.