Published: 17 July 2023
By Suzanne Evans, Director, Political Insight
Britain has formally signed The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), becoming the 12th member of the landmark trade pact agreed in 2018 between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The deal means easier trade and lower or eradicated trade tariffs between member countries, which are home to some 500m people. The other members account for about 13% of the world's income and the UK has become the first European country to join in a move that is only possible because of Brexit. Business and Trade Secretary Kemi Badenoch said at the signing in Auckland, New Zealand, that her country was delighted to become the first new member of the CPTPP. "This is a modern and ambitious agreement and our membership in this exciting, brilliant and forward-looking bloc is proof that the UK's doors are open for business," she said, adding: “This is the fastest growing region. The Asia Pacific is going to be responsible for at least 50% of global growth that we're expecting between now and 2035." A Government statement said CPTPP-owned businesses employed about 400,000 people across the UK, adding that CPTPP companies "punch above their weight economically", as while they account for 0.3% of all businesses in the UK, they generate 6.1% of total turnover. Business lobby group the British Chambers of Commerce (BCC) said the deal was "good news for UK businesses to enter or upscale their trade in these markets".
The Government says supermarkets and other fuel retailers have until August to “act now” and voluntarily share live petrol and diesel prices in a new Competition and Markets Authority (CMA) scheme designed to prevent overcharging, or they risk facing “the full force of the law," the Department for Energy Security said, meaning Ministers may legislate to compel them to share prices. A recent report from The CMA concluded drivers paid an extra 6p per litre for fuel at supermarkets last year due to weak competition. Announcing the scheme earlier in July, Energy Secretary Grant Shapps said the Government wanted to "shine a light on rip-off retailers".
Rising interest rates and a fall in bond prices have left UK households £2.1tn poorer over the last year, because total household wealth as a share of gross domestic product (GDP) has plummeted by 185% since the start of 2021, the largest drop since the second world war, according to the Resolution Foundation. Total household wealth now stands at 650% of national income and, if higher rates remain at 5.5% by mid-2025 as expected, it could drive further falls in wealth to around 550% of GDP, the think-tank warned. Ian Mulheirn, research associate at the Resolution Foundation, said: “Over the past four decades wealth has soared across Britain, even when wages and incomes have stagnated. But rapid interest-rate rises have ended this boom and brought about the biggest fall in wealth since the war, of £2.1tn”. However, he added that higher interest rates meant there were some upsides for younger people: “Higher returns will make it far easier for younger people to save for a pension that delivers a decent standard of living in retirement, while lower house prices will make it easier for younger generations to get on the property ladder and others looking to trade up,” he said.
The Labour Party will not seek to change the Bank of England's 2% inflation target if it wins the next election, a spokesperson said on Sunday, despite party leader Keir Starmer saying in a BBC interview it was something the party would address closer to the vote, and while taking into account the state of the economy. "We are not looking at changing the inflation target and will not be looking at it,” the spokesperson said.
There are train strikes this week. Aslef train drivers are not working overtime, and RMT members will strike on Thursday and Saturday in the latest episode of their long-running dispute about pay, jobs and conditions. In all, services at 15 companies based in England will be disrupted from Monday 17th to Saturday 22nd July. Passengers are being advised to check services before they travel.
950 workers at Gatwick Airport are going on strike for eight days over the summer holidays, the union Unite confirmed on Friday. The staff, who work for ASC, Menzies Aviation, GGS and DHL Services, provide ground services such as baggage handling and check-in services, will walk out
Senior doctors in England will hold two days of strikes in August, their union the British Medical Association (BMA) said on Monday, dismissing a 6% pay rise announced by Government last week as a "savage" real-terms wage cut.
The Competition and Markets Authority (CMA) has extended a final deadline for a decision on Microsoft's proposed $69bn acquisition of Activision Blizzard to 29th August after receiving a "detailed and complex submission" from Microsoft about how it might address the watchdog's concerns, including an agreement between Microsoft and Sony to keep blockbuster game Call of Duty on the latter's PlayStation gaming consoles. The delay also follows a ruling by a US judge that prevented the Federal Trade Commission (FTC) from blocking the takeover. The CMA also blocked the deal because of competition concerns. The US FTC is appealing against last week’s ruling.
Britain’s FTSE 100 companies have cut their charitable donations by nearly a quarter over the past decade despite pre-tax profits rocketing in the same period, research from the Charities Aid Foundation shows. Firms listed on London’s blue chip index, donated £1.85bn last year, 26% lower than the £2.51bn donated in 2012.
for four days from 28th July, and then for a further four days from 4th August. Sharon Graham, Unite general secretary, said: "Our members at Gatwick undertake incredibly demanding roles and are essential to keeping the airport and airlines working, yet their employers somehow think it is acceptable to pay them pittance." Unite is also balloting members who work for DHL Gatwick Direct, Red Handling and Wilson Games at Gatwick. A spokesperson for Gatwick said the airport would "support the airlines affected, who hold the contracts with the third-party ground handling and check-in companies, with their contingency plans to ensure that as many flights as possible operate as scheduled".
Sofa company DFS says it has reached a “record” market share of 38%, despite volumes declining between 15-20% due to the cost of living crisis. DFS added it still expects to reach revenues of £1.4bn during the year, and its underlying profit in 2024 is likely to be slightly above 2023 levels.
US private equity group Searchlight Capital Partners has agreed a deal to buy British asset manager Gresham House for £469.8m, it is being reported, with additional claims that Gresham House shareholders will receive £11.05 cash for each share held, representing a 62.5% premium to the stock's last closing price. The British fund house manages about £8bn in investments, focusing on sustainable assets, including forestry, renewable energy and battery storage. However, the price being discussed has not been confirmed, and a spokeswoman for Gresham House said yesterday that the company did not comment on "rumour and speculation".
Ladbrokes owner Entain is buying Angstrom Sports, a specialist provider of sports modelling, forecasting and data analytics, in a deal worth up to £122m over the next three years.
Construction group Galliford Try will undertake the £72m remodelling and refurbishment of Adelaide House, a nine-storey, Grade II-listed building adjacent to London Bridge in central London, having been granted the contract by owner St Martin's Property Investments.
Cleaning products company McBride saw its shares surge almost 21% higher by close on Friday after confirming profits would be "materially" ahead of expectations because the cost-of-living crisis has led to customer opting for "better value, high-quality private label products as they seek to mitigate the effects of inflation on their household budgets". Revenues, boosted by both higher volumes and prices, will be 28% higher year-on-year, McBride said, meaning it now expects to return to profitability following the "exceptional" input cost inflation of the past two years, which was driven by supply chain issues and surging inflation. In April, McBride guided that adjusted operating profits would come in between £8m to £13m.
Moonpig's Cambridge and Harvard-educated boss, Nickyl Raithatha, earned £6.3m last year after receiving a bumper bonus linked to the greeting card company’s 2021 stock market float, the Daily Mail reports. His salary is almost £600,000 but he was given a £5.6m ‘legacy’ award in cash and shares following the IPO.
Russia has taken control of the Russian subsidiaries of yoghurt maker Danone and beer company Carlsberg, the BBC reports, quoting the Russian authorities as saying they have been put in "temporary management" of the state, under a new order signed by Russian President Vladimir Putin. Moscow introduced rules earlier this year allowing it to seize the assets of firms from "unfriendly" countries, when companies halted business in Russia following its invasion of Ukraine. Danone and Carlsberg were in the process of selling their Russian operations, but now Danone Russia and the Carlsberg-owned Baltika Breweries are under the control of Russian property agency Rosimushchestvo. France-based Danone, which started the process to sell its Russian business last October, said it was "currently investigating the situation," and Carlsberg said it had not received "any official information from the Russian authorities regarding the presidential decree of the consequences for Baltika Breweries". Last month, the company signed an agreement to sell Baltika Breweries but had not yet completed the deal. "Following the presidential decree, the prospects for this sales process are now highly uncertain," Carlsberg added. Baltika produces some of the most recognisable beer brands in Russia, with 8,400 employees across eight plants, according to Carlsberg's website.
Twitter has lost almost half of its advertising revenue since it was bought by Elon Musk for $44bn (£33.6bn) last October, its owner has revealed. Musk said the company had not seen the increase in sales that had been expected in June, but added that July was a "bit more promising". Musk, who has laid off thousands of employees at the social media giant, says Twitter is now on track to post $3bn (£2.29bn) in revenue in 2023, down from $5.1bn in 2021. Musk also has $13bn of debt related to his Twitter purchase to pay by the end of July.
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