Business news 18 August 2022
James Salmon, Operations Director.
Strikes, Inflation, Taiwan, Interest rates, markets, Tory hopefuls and worsening economics, And more business news.
Strikes
The country faces some of the most widespread disruption of the so-called summer of discontent over next few days as rail workers stage nationwide strikes and bus and tube staff also hold stoppages in London.
The industrial action on public transport will be followed Sunday by the start of an eight-day strike by dockerworkers at Felixstowe, the UK’s biggest container port, which threatens to create shortages of everything from industrial parts and consumer electronics to clothes, toys and furniture.
Companies across the country are suffering a surge in industrial action as soaring inflation stokes pay claims against a background of staff shortages.
High inflation boosts the pound
In a counterintuitive move Sterling briefly strengthened after yesterdays inflation release showing CPI had risen to 10.1% as currency traders bet that the Bank of England will now double interest rates by February. However, the FED minutes have brought back dollar strength
Taiwan
The US and Taiwan have entered into talks for a trade deal in a move that is likely to stoke tensions with China
Interest rates
Markets are predicting the Bank of England will raise interest rates by another 0.5% when they meet in September, after the latest inflation figures dropped.
Markets drop on negative global sentiment
There is broadly negative sentiment on global markets as worries about slowing growth and soaring inflation continue to weigh on traders, who are predicting stronger action from central banks. Overnight, the DOW dropped -0.50%. the S&P 500 dropped -0.72% and the NASDAQ dropped -1.25%.
Tory hopefuls must face up to worsening economics
The Institute for Fiscal Studies has reported that government borrowing next year is set to be £23 billion higher than previously forecast due to the impact of soaring inflation on debt and welfare costs. The Tory prime minister hopefuls therefore faces a worsening fiscal outlook, raising questions about the viability of the big tax cuts being promised by Liz Truss and Rishi Sunak.
Former Bank of England policy maker Danny Blanchflower said the coming recession will force whoever becomes the next prime minister to scrap talk about tax cuts and deliver a massive aid program to prevent the economy from collapsing.
Elon Musk joking About Buying Manchester United
Elon Musk says he was joking about buying English football club Manchester United Plc. He initially tweeted that he was going to purchase the stumbling giant after saying he supported centrists among Republicans and Democrats before hours later tweeting that it was just a joke and he was in the market for a sports franchise.
House Prices
UK House Prices rose at the slowest rate for 11 months, but were still up 7.8% in the year to June. The annual increase in the UK average house price slowed from 12.8% the previous month, according to the Office for National Statistics which reflects rises in demand and prices a year ago, just ahead of the withdrawal of the stamp duty tax break.
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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.
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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
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
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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!
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.