Upcoming budget affecting growth
Plus, AIM under threat, ISG collapse "devastating" and zombies and iPhones
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Business Agenda
A summary of the most important business news
1. The London Stock Exchange has warned that the government’s potential removal of business relief from shares on its junior market could threaten the future of the Alternative Investment Market (AIM). In a letter to City minister Tulip Siddiq, LSE chief Dame Julia Hoggett highlighted the fragility of AIM, which has seen a significant drop in the number and value of listed companies. She cautioned that scrapping the relief could destabilise the market, trigger investor selloffs, and harm growth companies dependent on business relief-linked capital. You can read more here.
2. Goldman Sachs predicts the pound will climb to $1.40 against the US dollar within a year. This is its highest since 2021 and is fuelled by the UK’s economic growth and a gradual reduction in interest rates by the Bank of England. The US investment bank expects the pound to be among the best-performing currencies, citing steady monetary policy and political stability under Labour’s government as key factors in sterling’s rise. You can read more here.
3. Uncertainty surrounding Labour’s upcoming budget is weighing on UK economic growth, according to two separate business surveys. The surveys from S&P Global and the CBI reveal a slowdown in private sector activity for the second consecutive month in September. They also noted that many firms are delaying investments, taking a “wait-and-see” approach ahead of the chancellor’s tough fiscal plans on October 30. While concerns about tax hikes and slowing export orders loom, business optimism remains, and UK private sector activity has continued to grow for 11 straight months. You can read more here.
4. The collapse of construction giant ISG has been called “devastating”. Not only are 2,200 jobs at risk but shockwaves are expected to be felt by smaller firms in its supply chain. The company held over £1bn in government contracts and is the largest construction collapse since Carillion in 2018. You can read more here.
5. Northvolt is cutting 1,600 jobs across three sites. The Swedish battery maker has cited challenges in the electric vehicle sector. The company, seen as Europe’s top contender against Chinese battery producers, will halt the expansion of its flagship gigafactory in Skellefteå, where 1,000 jobs will be lost. CEO Peter Carlsson emphasised that while electrification momentum remains strong, tough decisions are needed to secure Northvolt’s future. You can read more here.
Business Question
Who am I?
- I was born in Cyprus on this day in 1959
- I found my love of retail at my first job at Watches of Switzerland
- My group comprises of over 300 stores and 4,000 employees
- I’m a firebreather who came up with the #SmallBusinessSunday
The answer can be found at the bottom of the page.
Business Thinker
Deep dives on business and leadership
By Dougal Shaw
As a subscriber to this newsletter, you must be interested in journalism as well as business news.
I found this article gives a thought-provoking overview of AI’s impact on journalism. It doesn’t focus on the common topic of misinformation, it looks at the idea of efficient content creation and coverage too, through the automated aggregation of information. On one hand, this could be troubling for journalists, but there are upsides too. Newsrooms can be under-resourced meaning only more ‘popular’ (or clickbaity?) stories get written. But automated AI can cover “local politics such as the board of education meetings, high school and regional sports results, and narrative-form financial and weather reports.”
Another concept in the article reassured me! “One of the ways to approach the concept of AI-generated news is to separate “low-effort” reporting of primarily data-driven facts, such as finance and sports from more nuanced, opinion or investigative reporting that requires journalistic skills.” You can rest assured this is exactly what we serve you up on Business Leader on a regular basis.
Another business tracker poll has come out which suggests SMEs are feeling quietly confident. Bibby Financial Services did their regular survey of 1,000 SMEs and found that 68 per cent expect sales to grow in the next six months, while 63 per cent say lower interest rates make them more confident about investing in their business. The vast majority, as you might expect, want more tax incentives from the government to help them achieve that growth.
Business Quote
Inspiration from leaders
“I’m not a businessman — I’m a business, man.”
– Jay-Z
Business Leader
The best of our content
How to run successful shops
In our latest podcast episode, we get a masterclass from James Daunt, the man who turned around Waterstones in the UK and Barnes & Noble in the US.
You can listen to the episode and read more here.
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And finally…
A Hollywood film is coming out soon which was all shot on iPhones.
Danny Boyle’s forthcoming 28 Years Later was filmed with adapted iPhone 15s. The zombie horror film had a budget of $75m, so the choice wasn’t because of money! But it shows just how good the cameras on modern smartphones have become.
In fact, director Steven Soderbergh released a psychological thriller in 2018 called Unsane, which he shot on an iPhone 7 Plus.
The iPhone has been able to shoot in 4k since the iPhone 6. That means in terms of resolution, at least, it’s been more than good enough to broadcast on HD televisions for close to a decade.
I’m interested in this because I make the My CEO Secret business advice videos for Business Leader. I’ve shot them all on an iPhone 15 Pro Max!
If you want to see (and hopefully binge-watch) the series so far, you can check them all out here.
The answer to today’s Business Question is Theo Paphitis.
