Category Archives: Services sector

DNA testing firm 23andMe files for bankruptcy as CEO steps down

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Co-founder Anne Wojcicki to pursue independent bid as California attorney general tells users to delete data

The genetic testing company 23andMe has filed for bankruptcy protection in the US to help sell itself, as its chief executive quit to pursue a bid for the business after several aborted attempts.

23andMe said late on Sunday that it had started voluntary Chapter 11 proceedings in the US Bankruptcy Court for the Eastern District of Missouri to “facilitate a sale process to maximise the value of its business”. It added that it is operating as usual throughout the sale process.

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UK economy shrinks unexpectedly in blow to Rachel Reeves

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ONS data showing 0.1% fall in GDP in January comes less than two weeks before chancellor’s spring statement

The UK economy contracted by 0.1% in January, dealing a blow to Rachel Reeves before the spring statement later this month.

In a surprise to City economists, who expected 0.1% growth in January, the Office for National Statistics data showed the services sector failed to offset a decline in the industrial sector and maintain growth from the previous month.

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Hospitality firms ‘to incur £1bn costs from employer NICs on 774,000 more workers’

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Industry body says businesses and jobs at risk unless Rachel Reeves’s tax changes delayed or altered

The hospitality industry will incur an extra £1bn of costs for 774,000 of its workers who will be newly eligible for employer national insurance contributions from April, endangering jobs and businesses, a leading industry body has claimed.

UKHospitality, which represents thousands of restaurants, hotels, pubs, cafes and nightclubs, is calling on the government to delay or alter changes to the tax announced in Rachel Reeves’s October’s budget in order to protect jobs.

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Rachel Reeves heads to China to build bridges, but a new golden era of relations is impossible

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Seeking business partners post-Brexit is sound policy, but even in these darker geopolitical times the UK will ultimately side with the US

Rachel Reeves will fly with a delegation of City grandees to China this week as Labour seeks closer economic links with Beijing as part of its quest for growth.

With the outlook increasingly rocky at home after a run of soft economic data, the chancellor is sorely in need of a positive story to tell.

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IMF warns Trump trade tariffs could dent global economy as it upgrades UK outlook

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New report upgrades outlook for UK economy with growth now forecast at 1.1% rather than 0.7%

The International Monetary Fund has warned the trade tariffs favoured by US presidential candidate Donald Trump could hurt global growth, as it upgraded its forecast for the UK economy.

The Washington-based organisation said tariffs trigger tit-for-tat trade wars that impoverish the economies involved in the dispute and the wider global economy.

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UK economy continues recovery from recession with GDP growth of 0.6%

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ONS data shows strong performance in second quarter with service sector helping drive growth

Britain’s economy has extended its recovery from recession after recording growth of 0.6% in the three months to June, handing a boost to the chancellor, Rachel Reeves, in the run-up to the autumn budget.

Figures from the Office for National Statistics (ONS) show gross domestic product continued to grow in the second quarter, after a rise of 0.7% in the first three months of 2024. The reading matched the forecasts of City economists.

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UK clothing sales to EU plummet as Brexit red tape deters exporters

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Small and medium-sized firms badly hit as huge drop in apparel sales helps fuel 18% slide in all-non food exports

UK exports of clothing and footwear to the EU have dived since Brexit, according to a new study that shows the extent to which complex regulations and red tape at the border have deterred firms from sending goods across the Channel.

Exports of clothing and footwear sold to EU countries have fallen from £7.4bn in 2019 to £2.7bn in 2023, helping fuel an 18% slump in sales of all non-food goods exports to countries covered by the EU single market, according to the consultancy Retail Economics and online marketplace Tradebyte.

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Big drop in UK inflation rate disguises more disappointing details

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Service sector inflation, monitored closely by Bank of England, barely budged in April

The annual inflation rate fell sharply in April. Prices are rising more slowly than at any time in almost three years. Inflation is lower in the UK than it is in the EU.

Even so, the latest bulletin on the cost of living from the Office for National Statistics was mildly disappointing. April’s inflation figure was always going to be good, with a sharp fall guaranteed by the fact the energy price increases of a year earlier were not repeated.

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UK inflation falls by less than expected to 2.3%, reducing chance of June rate cut

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Drop in April is smaller than forecast but level is still lowest in almost three years

UK inflation fell to 2.3% in April – its lowest level for almost three years – but the decline was smaller than expected, denting hopes of an early interest rate cut.

City analysts had forecast the annual increase in the cost of goods and services would fall to 2.1%, close to the Bank of England’s 2% target.

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Bank of England keeps interest rates at 5.25% but hints at a June cut

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Policymakers say they want to see more evidence that price pressures are easing before cutting rates

• Business – live

The Bank of England has signalled it could start cutting interest rates as early as June after inflation was found to be “moving in the right direction”, as it kept borrowing costs on hold at 5.25% for the sixth time in a row.

Alongside the decision to keep rates on hold, the Bank said inflation was already on course to hit its target of 2% and would fall to just 1.6% in two years, opening the door to future cuts in interests.

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UK workers should expect smaller pay rises this year, warns HR body

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Employers are reining in hiring plans despite improved business confidence driven by services sector

Workers in the UK can expect less generous salary settlements this year, as employers rein in hiring plans, according to a report from the professional body for human resources.

In its regular labour market outlook, which gauges employers’ expectations for the year ahead, the Chartered Institute of Personnel and Development (CIPD) said employers were pencilling in the most meagre pay rises since the pandemic.

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UK economy returns to growth amid Black Friday spending lift

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GDP rises by 0.3% in November after October decline, with car leasing and video games fuelling bounceback

The UK economy returned to growth in November after a recovery in consumer spending driven by Black Friday sales, with shoppers hunting for bargains as the key Christmas shopping season got under way.

Gross domestic product rose by 0.3% on the month, after a decline of 0.3% in October, according to the Office for National Statistics (ONS). City economists had forecast more modest growth of 0.2%.

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Wetherspoon’s returns to profit for first time since Covid pandemic

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Cost of living crisis drives consumers to low-cost pub chain but company remains cautious

JD Wetherspoon has bounced back to profit for the first time since the start of the coronavirus pandemic three years ago, as budget-conscious consumers flocked to the low-cost pub chain amid the cost of living crisis.

Wetherspoon’s, which runs about 830 pubs across the UK and Ireland, reported a pre-tax profit of almost £43m in the year to 30 July.

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Bond market sell-off sends UK long-term borrowing cost to 25-year high

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Rate tops level last seen after Liz Truss mini-budget as fears of global inflation and US political instability spook markets

Britain’s long-term cost of borrowing has hit its highest level since 1998, as political instability in the US and fears of sustained high levels of inflation triggered a sell-off in global bond markets.

The yield, or interest rate, on 30-year UK government bonds hit 5.115% early on Wednesday, according to the financial data provider Refinitiv.

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Getir value ‘drops to $2.5bn’ as shoppers move away from convenience

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Value of fast-track grocery delivery service believed to be quarter of the $11.8bn it was worth 18 months ago

The fast-track grocery delivery service Getir is reportedly now worth a quarter of what it was valued at 18 months ago, after a big shakeout in the sector amid declining consumer demand.

The Istanbul-based company is raising $500m in a funding round that will value the business at $2.5bn and is expected to close later this month, according to a Financial Times report citing people familiar with the matter.

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Global economic fears deepen as service sector dips in China and Europe

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Fresh signs of weakness in Chinese economy and weak UK and eurozone data spook investors

Fears about the health of the global economy have intensified following downbeat news about service sector activity in China, the eurozone and the UK.

Share prices fell in Asia and the pound dropped to a 12-week low against the US dollar after fresh signs of weakness in China triggered speculation that its post-lockdown recovery was running out of steam.

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Wetherspoon’s boss: hospitality holding off price rises could be ‘catastrophic’

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Tim Martin says Bank of England is right to ask firms to be mindful but advice should not be taken too literally

The boss of JD Wetherspoon has warned it could be “catastrophic” for pubs and restaurants to hold off raising prices as costs continue to soar, as the pub chain revealed that the “ferocious” impact of inflation has fuelled a dramatic increase in its bills.

Tim Martin said that Andrew Bailey, the governor of the Bank of England, was right to warn companies to be mindful of how much they put up prices to avoid continuing to fuel an inflationary cycle, after the headline annual rate unexpectedly rose to 10.4% last month.

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Dignity funeral services firm targeted in first UK takeover bid of the year

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Consortium spearheaded by Direct Line founder, Sir Peter Wood, have swooped for company

A consortium spearheaded by Direct Line founder Sir Peter Wood has swooped for the funeral services company Dignity in the first UK takeover attempt of the year.

A subsidiary of Valderrama – a joint venture between Wood’s investment firm SPWOne and investment house Castelnau Group – has made a possible offer for the London-listed company, whose board recommended the deal to shareholders.

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Rail strikes ‘cost UK hospitality sector £1.5bn in December alone’

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Figure worse than predicted and head of industry body expects ‘more business failures’ in early 2023

The rail strikes have had a worse impact on the UK’s hospitality industry than expected – costing bars, pubs, restaurants and hotels £1.5bn in December alone – according to the head of the body representing the sector.

Kate Nicholls, the chief executive of UKHospitality, said this had contributed to a “perfect storm” for businesses battling high energy bills and a cost of living crisis, adding this meant “undoubtedly we will see more business failures” in the next three months.

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G4S strike prompts fears of festive cash shortages at banks and shops

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More than 1,000 staff who deliver money to firms such as Barclays, Asda and Tesco to take action

More than 1,000 security workers who deliver cash and coins to some of the UK’s biggest banks and supermarkets have voted to strike in December, raising the prospect of potential cash shortages in the run-up to Christmas.

The 48-hour strike by 1,156 members of the GMB union who work for the security company G4S is due to take place from 3am on 5 December, after a 97% vote in favour of industrial action in a dispute over pay. However, only 665 workers voted in the ballot, a turnout of 58%.

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