Businesses want the government to offer tax incentives to invest in employee health as firms start to grapple with worsening health and an ageing population, a new report shows. Research from the British Standards Institute (BSI) shows that 64 per cent of UK business leaders would support financial incentives to recruit older people, so they could be helped to work for longer. Financial incentives could help ensure a larger share of the population stays in work even as it ages. Read more Will Rishi Sunak’s clampdown on ‘sick note culture’ tackle long-term sickness? In 2021, over 11m people w ..read more

The UK’s pothole crisis costs £14.4bn a year in economic damage, according to research from the Centre for Economics and Business Research (CEBR). The research, the first of its kind, attempts to quantify the economic impact of potholes by assessing their impact through three different factors: damage to vehicles, accidents and drivers having to reduce speeds. The bulk of the economic cost comes from longer journey times as nervous motorists attempt to limit the damage to their cars. Studies suggest that driving speeds are more than halved on a potholed road. Read more Firstgroup vs Mobico: F ..read more

The number of profit warnings issued by London-listed firms dipped in the first quarter of 2024, according to new data, in another sign that the “green shoots of recovery” are starting to appear in the UK economy. According to EY-Parthenon’s latest profit warnings report, 70 firms issued profit warnings between January and March. This was seven per cent lower than the same period last year and below the 77 warnings issued in the final quarter of 2023. The most common reason for profit warnings were contract cancellations and delays, which made up 29 per cent of warnings. Higher costs and weak ..read more

Moving markets today: Asia shares follow US peers upward, yen breaks below ¥160, oil and gold prices slide; Apple and Amazon earnings, Fed meeting, jobs data, and more in focus this week  Asian markets began the week on a positive note as investors anticipated the Federal Reserve’s upcoming policy meeting. The dollar made a significant milestone by surpassing the 160-yen mark for the first time in decades. Japan’s market remained closed due to a holiday. Oil prices experienced a 1 per cent drop amid ongoing ceasefire talks between Israel and Hamas. Concerns arose about China’s economic r ..read more

A City A.M. poll of top economists has revealed that the Bank of England is expected to start cutting interest rates in August before the US Federal Reserve as inflation edges back to the government’s two per cent target. Around 57 per cent of the 21 economists surveyed thought the Bank would start cutting rates in August, while a further 38 per cent expected the first reduction in June. Just one economist thought the Bank would wait until September. “Though interest rates will remain on hold in May, weakening inflation may persuade more rate-setters to vote to loosen policy,” said Suren Thir ..read more

Nearly half a million UK businesses have become ‘financially distressed,’ with tens of thousands facing the possibility of insolvency within the next 12 months, a new report from Begbies has claimed. The Begbies Traynor “Red Flag Alert” research shows a total of 554,554 UK businesses — within all major sectors — have entered what is considered “significant” financial distress within the past year, a 30 per cent surge since 2023. The number of those in “critical” financial distress has jumped 20 per cent, now with a total of 40,174, namely in the construction, real estate, financial services a ..read more

Moving markets today: Asian stocks climb on tech strength from strong US earnings, oil prices up; BoJ keeps interest rate unchanged, Microsoft and Alphabet shares surge, All eyes on US PCE inflation data and ExxonMobil, NatWest earnings  Wall Street experienced a decline, reacting to news of slower-than-expected US economic growth and ongoing concerns about inflation. This was further aggravated by disappointing results from Meta Platforms, leading to a sell-off in major stocks. However, Asian markets cautiously rose amidst this backdrop. Oil prices saw an uptick following reassurances f ..read more

Alphabet shares surged in after-hours trading on Thursday after Google’s parent company impressed investors with a blowout first-quarter earnings report and initiated a $70 billion stock buyback program alongside its first-ever dividend declaration. Alphabet reported a remarkable 15 per cent increase in revenue, reaching $80.5 billion, surpassing the anticipated $79 billion. Earnings per share also outperformed expectations, hitting $1.89 compared to the projected $1.53.  As reported by the FT, Brad Erickson from RBC Capital Markets said, “Maybe most important relative to the big after-h ..read more

Sustained high levels of energy and commodity prices could drive global inflation upwards, the World Bank has warned. In a report issued today, the US-based institution said the decline in commodity prices over the last two years had likely come to an end at the hands of heightened geopolitical tensions and demand for energy transition metals. Indermit Gill, the World Bank’s chief economist, said: “Global inflation remains undefeated, a key force for disinflation – falling commodity prices – has essentially hit a wall. “That means interest rates could remain higher than currently expected thi ..read more

The US economy slowed far more than expected in the first quarter of the year as its gross domestic product (GDP) endured the influence of stubborn inflation and high interest rates. According to new ‘flash’ figures published on Thursday, the US’ GDP grew at an annualised rate of 1.6 per cent between January and March. Economists had expected a reading of 2.5 per cent. The Bureau of Economic Analysis said consumer spending and housing investment all contributed to growth, which was partly offset by a decrease in inventory investment. In a sign that the Federal Reserve could delay interest rat ..read more