Business News Round Up (03/12/2020)
Find out more about Where Now Consulting. We update our business news daily.
UK economy not expected to return to pre-covid levels until 2022
The United Kingdom is set for one of the slowest recoveries among wealthy nations, according to forecasts published by The Organisation for Economic Cooperation and Development (OECD). The OECD estimated a 4.2% fall in global GDP this year, and a 4.2% increase next year. However, it projects that Britain’s economic output will fall by 11.2% this year, while the unemployment will peak at 7.5% next year. The body also said that Britain’s economy will likely still be 2.4% smaller at the end of the 2022 than it was before the pandemic hit and predicted that “business investment will remain weak due to spare capacity and continued uncertainty”. Britain’s economic contraction is found to be the second most severe, only exceeded by Argentina at 12.9 %. While the world economy is set to return to and exceed pre-Covid levels by Q4 next year, the UK is still estimated to be 7% smaller by this time in 2021.
https://www.neweurope.eu/article/uk-economy-not-expected-to-return-to-pre-covid-levels-until-2022/
UK services activity drops less than feared in second lockdown – PMI
Activity in Britain’s services sector fell less than expected in November, as a four-week partial lockdown in England had a smaller impact on firms than measures earlier in the year, and businesses grew more optimistic about the outlook for 2021. The IHS Markit/CIPS UK services Purchasing Managers’ Index of business activity (PMI) fell to 47.6 in November from 51.4 in October. This was the first time since June that it fell below the 50 level that divides growth from contraction, but a smaller drop than the decline to 45.8 in an earlier ‘flash’ estimate or the record-low reading of 13.4 in April. The composite PMI, which includes manufacturers who enjoyed stronger growth, dropped to 49.0 from 52.1, also the lowest since June but a smaller drop than an initial estimate of 47.4.
Jobs boost as Scottish Enterprise unlocks £500 million of economic investment
Scottish Enterprise has announced plans to approve large grant funding for up to 160 new company projects before the end of the financial year. Together, these projects have the potential to unlock up to £500m of investment by businesses into Scotland’s economy, creating or safeguarding more than 9,000 jobs. Scottish Enterprise will contribute up to £140m to these projects over the next two-to-three years. The bulk of the awards will be made to domestic Scottish businesses, with the rest securing new inward investment. The new projects now being appraised cover industries including renewables, technology, engineering, manufacturing, and life sciences. They range from research and development programmes, to investment in machinery and equipment that will aid the transition to a net-zero economy.
https://www.insider.co.uk/news/jobs-boost-scottish-enterprise-unlocks-23105214
Multi-family investment office Arete launches in the North West on hunt for region’s most ambitious entrepreneurs and companies
A new multi-family investment office has launched in the North West. Arete will be based in Liverpool and Manchester, providing “transformational” private capital to some of the North West’s most ambitious entrepreneurs and companies, and it’s been formed by five well-known figures from the region’s business world. It has been established by five well-known figures from the region – Praetura Group co-founder Mike Fletcher, former GCA Altium managing director Simon Lord, tech entrepreneur Ben Hatton, former Deloitte M&A director Matt Cheetham and Axon Moore Group co-founder David Moore. The firm has launched in Liverpool and Manchester, from where it will work exclusively with high net worth investors and family offices.
https://www.business-live.co.uk/economic-development/multi-family-investment-office-arete-19378546