Displaying items by tag: Business

Microsoft will cut 10,000 jobs in the latest round of staff redundancies to hit the tech industry. It will affect 5% of its global workforce and cost £972m in severance and reorganisation costs. Microsoft is the latest, but it won't be the last, as the giants seek to tighten their belts following the boom time of the pandemic, when lockdowns meant people were stuck at home, wanting to spend their cash on digital entertainment and devices. Amazon plans to cut over 18,000 jobs, the largest number in the firm's history, as it battles to save costs. The online giant employs 1.5 million people globally and said the job cuts would include Europe. Meanwhile M&S will create 3,400 jobs as it opens new shops. AJ Bell’s investment director said it felt significant that M&S had revealed its investment figure at a time when the retail environment is not buoyant. see

The bosses of Britain’s biggest companies will have made more money in 2023 by Thursday afternoon than the average UK worker will earn in the entire year. TUC’s Paul Nowak called on the Government to ‘bring back some fairness on pay’. ‘Everyone deserves a fair day’s pay for a fair day’s work. But working people are told not to ask for more. FTSE 100 chief executives are paid £3.4m on average, which is 103 times the £33,000 average full time worker’s salary. The figures highlight how executive pay has increased dramatically after a dip during the pandemic, while ordinary workers are struggling to secure pay rises anywhere near inflation. Workers should have seats on executive pay committees to bring some common sense to top pay. And ministers must set out plans for fair pay for everyone, starting by agreeing to pay negotiations in the public sector.’

Christmas adverts have started on TV conjuring up sentimentality, nostalgia, and joy. But as the cost of living soars, some have opted for a more muted approach to campaigning this year. John Lewis’s advert, featuring a foster family, was less about buying things and more about kindness to someone else who might need it. But some retail experts warned scenes of bountiful buffets in other ads were out of touch as families struggle with rising prices. Tesco and Lidl have both put an emphasis on price and affordability in their messaging, at a time when many families are facing rising grocery bills. ‘There clearly is a more muted tone this year, which is fitting for the time we're going through,’ said a spokesperson for Mintel.

Ofgem has said that the UK is facing ‘a significant risk’ of gas shortages this winter due to Russia's war with Ukraine. It could possibly enter a ‘gas supply emergency’, leading to supplies being cut to the power stations using gas to generate electricity. This would place firms at risk of running out of money because of huge charges they must pay if they cannot deliver electricity. SSE,which operates four gas-fired power stations in the UK, is concerned that gas-fired power stations face millions of pounds worth of penalties ‘caused by events outside their control’.

When asked if he would allow fracking in the back garden of his home in Somerset, business secretary Jacob Rees-Mogg said, ‘Yes, of course I would, particularly if I get royalties’. Fracking has been a controversial subject within local communities and amongst MPs due to its association with minor earthquakes. In 2019, at oil and gas exploration company Cuadrilla's Lancashire fracking site, over 120 tremors were recorded. Most were too small to be felt. The government recently published a new review from the British Geological Survey, considering any changes to the science around the practice. The report concluded, ‘Forecasting the occurrence of large earthquakes remains a scientific challenge for the geoscience community.’ Mr Rees-Mogg also said that the UK would build a prototype nuclear fusion power plant - ‘the first of its kind’ - in Nottinghamshire by 2040.

UK businesses, hospitals, schools and charities will have their energy bills cut by half their predicted level under a support package that fixes wholesale gas and electricity prices for six months from 1 October, shielding businesses from crippling costs. The scheme will be reviewed after three months and possibly extended for vulnerable businesses. Government officials have not said how much the package will cost taxpayers: Cornwall Insight estimates £25bn. Energy-intensive industries, like steel manufacturing, could close because of energy costs surging after Russia's invasion. Household bills would be limited to £2,500 annually until 2024 under a separate scheme. Business analyst Simon Jack said few businesses plan with only a six-month time horizon. There will be some whose plans to cut production, close premises and let staff go will not change in spite of this intervention. Retail and hospitality organisations see this as giving them a fighting chance over the commercially crucial Christmas trading period.

The Bank of England has raised interest rates to 2.25%, the highest level for 14 years. This will make it more expensive to borrow, which should - theoretically - encourage people to borrow less and spend less. It should also spur people to save more. However, there is also a risk that it can drag on growth, harming the economy. The bank's monetary policy committee, which sets rates, believes that the economy is already shrinking, which would officially push the UK into recession. The Bank of England has also warned that the government’s energy price freeze will push up inflation in the medium term. With energy bills rising less sharply, households will have more money to spend on other goods and services (although some people are already having to skip meals due to rising bills).

Ofgem says a typical household gas and electricity bill will rise to £3,549 a year from October. Save the Children warned the rise could put young people's health at risk, with families unable to afford to heat their homes. Money expert Martin Lewis predicted grave consequences without more state help. Liz Truss has ‘ruled out’ further direct support for everybody to help cover the costs of surging energy bills, and was not considering further support like the £400 payment that all households will receive this winter. Rishi Sunak says the government must provide some direct support to everyone. Ovo Energy has proposed a ten-point plan for the Government to subsidise soaring gas and electricity bills so that the poorest households get the most support. A key proposal is for energy firms to borrow from a government-backed fund to subsidise bills.

The UK chancellor Nadhim Zahawi visited the USA for cost-of-living talks during what could be his final week in the job. The two candidates for PM have signalled they will offer more help when elected, though neither has given details. Mr Zahawi insists he has been working tirelessly to come up with proposals for either leadership candidate to bring in more support. The chancellor met banking chiefs in New York to discuss co-operating on financial services, before heading to Washington DC to discuss support for Ukraine, the global economic outlook, and energy security. He said that global pressures must be overcome through global efforts.

Oman’s economy is heavily dependent on declining oil reserves. It has begun focusing on tourism as a new source of economic growth. Diverse untouched landscapes of coastlines, deserts, and mountains are unique destinations for travellers. The Oman Arab Bank recently sponsored their third tourism forum to train young adults in the tourism industry. While this boosts Oman’s economy, it is also an opportunity for the Gospel to reach five million people who have never heard the good news of Jesus’ love and gift of salvation. Proselytising is illegal, and those in active Christian ministry experience pressure to leave the country. But as tourism increases, creative access to new people groups will become more feasible. Pray for successful expansion of current Oman ministries: relief and water projects, media, literature, business as ministry, urban evangelism, and church planting. As tourism meets the financial needs of Oman, may the Church go forth to meet the spiritual needs.