Business News Round Up (17/11/2023)
UK retail sales slide again in October in new blow for economy
British retail sales volumes fell unexpectedly in October as stretched consumers stayed at home, official data showed on Friday, in a new warning sign for the economy. Retail sales volumes dropped 0.3% month-on-month, following a revised 1.1% decline in September that was worse than first estimated, the Office for National Statistics (ONS) said. Economists polled by Reuters had forecast that sales volumes would rise by 0.3% on the month in October. Overall, the figures fitted with the darkening outlook for Britain’s economy, with economic growth stagnant and strong price pressures now fading, albeit slowly. Investors think these factors will force the Bank of England to lower interest rates next year.
https://www.reuters.com/world/uk/uk-retail-sales-slide-again-october-new-blow-economy-2023-11-17/
Investment surges into capital commercial market
Investment into Edinburgh’s commercial property market has nudged ahead of the total for the whole of last year, according to analysis by Knight Frank. It found that £596 million of deals have been completed so far this year, which compares with £555m for the 12 months of 2022. Retail property is on course for its best performance since 2017, up 70% with £170m changing hands in the year to date. Among the retail assets in Edinburgh to trade hands during 2023 are Craigleith Retail Park and Corstorphine Retail Park. High profile transactions include Argyle House, near Edinburgh Castle, which fetched £38m in one of the biggest office deals of the year. Hotels have also been an active sector in Edinburgh, with £114m worth of deals. The figure is the second highest in the last five years, after 2021’s £196m.
https://dailybusinessgroup.co.uk/2023/11/investment-surges-into-capital-commercial-market/
UK CEOs are ramping up investment in AI technology but are facing challenges in implementing robust AI strategies
UK CEOs are accelerating investments in generative AI (GenAI) to maintain a competitive advantage, but most are facing challenges in developing and implementing AI strategies, according to the findings of the latest EY CEO Outlook Pulse survey. The survey of 100 UK CEOs which provides insights on AI, capital allocation, investment, sustainability and transformation strategies found that nearly all respondents (99%) are making or planning significant capital investments in GenAI in the next 12 months, with 51% funding investments by reallocating capital from other investment budgets. Almost three-quarters (74%) of UK CEOs believe their organisation must act now on GenAI to avoid giving their competitors a strategic advantage. Most are already taking tangible steps to imbed AI into their organisation – 54% said they had hired new talent with relevant AI skill sets, while 42% had established AI pilots and partnerships with multiple companies.
https://www.ey.com/en_uk/news/2023/11/uk-ceos-are-ramping-up-investment-in-ai-technology
Millions of pounds plugged into Scotland for 5G innovation regions
“Scotland has a history of being at the forefront of innovation and technology and this funding will make sure this remains the case,” said UK Government minister for Scotland, John Lamont. Glasgow, North Ayrshire, and the Borderlands Region have received a total of nearly £11 million in UK Government funding to help establish them as 5G Innovation Regions. The regions are three out of ten locations across the UK receiving government investment, as part of a £36m programme to drive the development and adoption of 5G and other advanced wireless technologies. The Glasgow City Region will receive £3.2m to deliver a health- and social care-focussed project that will use IoT and smart city applications to make public services better.
https://www.digit.fyi/millions-of-pounds-plugged-into-scotland-for-5g-innovation-regions/