Keeping up with the news can be tricky. Even the most eagle-eyed observer can miss a vital news story. We think being up-to-date on economic developments is key to the success of your startup.
Every Wednesday we provide the top 10 key bits of business news from the past week.
UK service sector shrinks at fastest pace since the financial crisis
Month-on-month decline in business activity is largest observed since the survey began in July 1996. The UK service sector shrank at its fastest pace since the financial after the vote to leave the EU in June.
The purchasing manufacturer’s index showed that both output and new businesses had declined for the first time since early 2009.
Poverty costs UK £78bn a year
A report from Joseph Rowntree Foundation, conducted by Heriot- Watt and Loughborough universities, says the effects of poverty in the UK cost the average taxpayer £1,200 a year, and the UK £78bn in total.
The NHS bore the brunt of the costs, it said, as those in poverty were “more likely” to suffer ill health. This research is the first to look at how much poverty across all age groups costs different government departments.
The report outlined the following key costs: £29bn on treating health conditions associated with poverty, £10bn on schools providing initiatives such as free school meals and pupil premium for poorer students, £9bn on the police and criminal justice systems dealing with the higher incidence of crime in more deprived areas, £7.5bn on children’s services and early years provision, such as free childcare for deprived two-year-olds, £4.6bn on adult social care, £4bn on housing.
The PMI survey has announced that activity in the construction industry fell again in July, confirming “a clear loss of momentum since the second quarter of 2016”.
The latest number suggests output in the construction industry shrank at the fastest pace since June 2009. The Brexit vote was the main factor weighing on activity, the report said.
Brexit ‘means economy faces 50% chance of recession in the next 18 months
A leading economic forecaster, the National Institute of Economic and Social Research says the UK has a 50/50 chance of falling into recession within the next 18 months following the Brexit vote, says a leading economic forecaster.
It also says inflation will also pick up, rising to 3% by the end of next year.
Morrisons to cut prices of more than 1,000 products
Morrisons is to provide a post-referendum boost to shoppers by cutting the price of more than 1,000 products by an average of 18%.
They will be introduced from Monday, and include cutting the price of 1kg of beef mince from £3.86 to £3 and 750g of chicken thighs from £2.25 to £1.57. The supermarket is also reducing the price of toiletries and seasonal fruit and vegetables by as much as 56%. Overall it will cut prices on 1,045 products.
Asia stocks head for biggest drop in more than a month as oil price falls below $40 a barrel
Japan’s announcement of £25.5bn stimulus package fails to ignite optimism that Shinzo Abe can revive the world’s third-biggest economy.
HSBC profits tumble as Chinese slowdown and Brexit turmoil strike
HSBC’s profits slumped 29% in the first half of 2016 amid concerns over the EU referendum and the state of China’s economy. The UK-based bank’s pre-tax profits fell to $9.7bn, compared with $13.6bn a year earlier.
Uber sells Chinese business to Didi Chuxing
Taxi-booking app Uber has agreed to sell its business in China to rival Didi Chuxing. The two firms have been fierce competitors, but Didi Chuxing dominates the Chinese market with an 87% share.
Uber China launched in 2014 but has failed to make any profit so far.
Cheng Wei, founder and chief executive of Didi Chuxing, said the two companies had “learned a great deal from each other over the past two years in China’s burgeoning new economy”.
Pokemon Go makers face trespassing lawsuit
A lawsuit has been filed against the makers of Pokemon Go over players trespassing on private property.A man in the US said strangers started lingering outside of his home with at least five people knocking on his door.
The first suit against game makers Niantic, Nintendo, and The Pokemon Company seeks class action status for others who have had Pokemon stops and gyms placed on their property.
HP apologises after £1.58 laptop error
HP has apologised after an error on its website let shoppers buy expensive laptop computers for less than £2. One device was listed with a previous sale price of £2,378, but was “reduced” to £1.58.
The computer firm briefly took its UK store offline on Saturday to resolve the error, and said it would not honour the sales that had been made.