UK factory output ‘falls at fastest pace for seven years’

Activity in the UK’s manufacturing sector contracted at the fastest pace for seven years in August, a closely-watched survey has suggested.

The uncertainty surrounding Brexit and the global economic downturn were some of the factors hitting firms, according to the survey from IHS Markit/CIPS.

The purchasing managers’ index (PMI) produced by IHS Markit/CIPS fell to 47.4 in August, down from 48 in July.

A figure below 50 indicates the sector is contracting.

New orders fell at the fastest pace for seven years, and business confidence fell to its lowest level since the survey first began to track the measure in 2012.

“High levels of economic and political uncertainty alongside ongoing global trade tensions stifled the performance of UK manufacturers in August,” said Rob Dobson, director at IHS Markit.

“The global economic slowdown was the main factor weighing on new work received from Europe, the USA and Asia.

“There was also a further impact from some EU-based clients routing supply chains away from the UK due to Brexit.”

The UK economy contracted by 0.2% in the second quarter of the year – the first time it has shrunk since 2012.

If the economy contracts in the current July-to-September period, then it will deemed to be in recession as it will have shrunk for two quarters in a row.

Mr Dobson said the PMI survey’s results suggested the manufacturing sector – which accounts for about 20% of the UK’s economy – was contracting at a quarterly pace of “close to 2%”.

However, Howard Archer, chief economic adviser to the EY Item Club, said that could be too pessimistic.

“With the CIPS surveys tending to be overly sensitive to political uncertainty and carmakers maintaining production in August (having brought their annual summer shutdowns forward this year), the sector’s performance is unlikely to be that grim,” he said.

“But with global and domestic headwinds showing no sign of easing, the remainder of 2019 is set to remain a difficult period for manufacturers.”

Andrew Wishart, UK economist at Capital Economics, said that while the latest PMI survey was weak, “we still doubt that manufacturing will pull the economy as a whole into recession”.

No-deal Brexit could cause 6% reduction in UK house prices

UK house prices could drop by 6.2% next year if the UK leaves the EU without a deal on 31 October, according to accountants KPMG.

However, if a deal is reached, KPMG predicts that house prices will rise by 1.3%.

London will probably see a fall in prices with or without an exit deal this year and next, it said, with sharper declines if no deal is reached.

However, the low supply of new housing stock could prop up prices over time.

“Overall, while a no-deal Brexit could dent property values in the short term, it may make less impact on one of the fundamental factors driving the market: the stock of regional housing,” said the report.

“Housebuilders are expected to reduce the supply of new housing in some regions in the short term as a response to a deteriorating economic outlook.

“So, while there will be fallout from the initial economic shock following a no-deal Brexit, the market is expected to recover most ground in the long run,” it said, assuming the economy recovers.

Given that the housing market is hard to predict, KPMG said prices could see steeper falls – of perhaps 10-20% – in a no-deal scenario.

“Transactions volumes will likely fall much more than prices – making government housing delivery targets impossible to achieve and slowing new building across the sector,” said Jan Crosby, UK head of housing at KPMG.

Assuming no agreement is reached, KPMG says Northern Ireland will be the hardest hit next year, with average price declines of 7.5%, followed by London at 7%. The least-hit will be Wales and the East Midlands, with 5.4% declines apiece.

This year, most regions will see changes of less than 2%, KPMG says, with the exception of London, down 4.8%, and Northern Ireland, down 2.2%.

If a deal is struck, prices in London and Northern Ireland are still predicted to fall this year, by 4.7% and 1.2%, while most other regions will be largely unchanged. Scotland and the North West will see gains of 1.4% and 1.6%.

And next year, all regions will gain aside from London’s predicted 0.2% slide. The average increase will be 1.3%.

KPMG noted that the UK housing market is healthier than it was at the time of the last housing crash – when prices fell by 15% in 2008. House prices are lower as a percentage of earnings in most regions outside London and the South East.

In addition, compared with the aftermath of the 1991 recession – when housing prices dropped 20% over about four years – mortgages are much cheaper. Back then, the Bank of England’s base rate was about 14%.

Ex-Virgin Money chief Dame Jayne-Anne Gadhia to head Salesforce UK

Dame Jayne-Anne Gadhia, one of Britain’s most prominent businesswomen, is to make a surprising comeback to a frontline executive role by taking over the UK operations of Salesforce, the American cloud software giant.

It is understood that Dame Jayne-Anne, whose most recent executive job was as the boss of Virgin Money, will be announced on Tuesday as Salesforce’s UK and Ireland CEO.

Her appointment, which is understood to take effect in October, will catapult her into the ranks of the most senior managers at a company that has become a global leader in customer relationship management software.‎

Salesforce, which is run by joint CEOs Marc Benioff – who also serves as the company’s chairman – and Keith Block, announced plans earlier this year to invest $2.5bn in its UK operations.

Dame Jayne-Anne’s recruitment by the New York Stock Exchange-listed company, which has a market value of $127.5bn, will end lingering speculation that she is interested in the chief executive’s vacancy at Royal Bank of Scotland.

Her departure from Virgin Money was announced in the wake of its £1.7bn takeover by CYBG, which is now rebranding its Clydesdale and Yorkshire banking operations under the corporate name founded by Sir Richard Branson.

Dame Jayne-Anne, who was named Leader of the Year at last years National Business Awards, is due to join the Bank of England’s Financial Policy Committee next year, has joined and stepped down from the board of Stagecoach, the transport company, in recent months.

Earlier this year, it was revealed that she was canvassing investor support for Snoop, a new consumer-facing venture aimed at generating savings on household bills.

It was unclear how far that fundraising had progressed, but insiders said Dame Jayne-Anne still intended to chair the start-up.

Sources said it was conceivable that Salesforce’s venture arm could invest in Snoop, although the prospect of this could not be verified on Monday night.

One of the UK’s most recognisable businesswomen, Dame Jayne-Anne was honoured in January for her contribution to financial services and women in the finance industry.

Under her stewardship, the Treasury’s Women in Finance charter has now committed most of the biggest banks, insurers and asset managers to a series of pledges regarding the recruitment and treatment of female employees.

As chief executive of Virgin Money, she oversaw the acquisition of Northern Rock from the Government in 2011 and its subsequent integration and stock market flotation.

Earlier this year, Dame Jayne-Anne declined to comment on the details of her proposed start-up but said: “I learned from Richard Branson that there’s nothing more exciting than setting up a new business.”

Her re-emergence in a major executive post will make her one of the top Britons working in a major US-listed company.

Salesforce recently acquired Tableau, another cloud enterprise company, for $15.7bn – the biggest takeover in its history.

The American company has also struck an alliance with the Chinese internet giant Alibaba to distribute its products in China, Hong Kong, Macau and Taiwan.

From a standing start in 1999, Salesforce is now one of the most richly valued software companies in the world.

Dame Jayne-Anne could not be reached for comment on Monday, while Salesforce declined to comment.‎

BMW pleads with Prime Minister to rule out no-deal Brexit

The chairman of BMW has warned Boris Johnson no-one would win from a no-deal Brexit and urged the new Prime Minister to listen to business.

Harald Krueger said leaving the EU without a deal would be “lose-lose” for the UK and industry.

Mr Krueger advised Mr Johnson: “Listen to the economy and listen to the people. He needs to be in a dialogue with business.

“I would visit Johnson to tell him this,” he added.

BMW warned earlier this year that if the UK leaves the EU without a deal it would threaten production of the Mini which is produced at its Cowley plant, near Oxford, where it employs 4,500 people.

BMW is one of a number of car companies that have expressed concern about leaving the EU without a trade deal.

This week, Vauxhall-owner PSA said it could move all production from its Ellesmere Port site, where it builds the Astra, if Brexit makes it unprofitable.

Such a move would put 1,000 jobs at risk.

BMW closed its Cowley plant for a month in April after planning for the original Brexit deadline of 29 March.

However, last month it committed to begin building its new electric Mini at the site in November.

In his previous role as foreign secretary, Mr Johnson last year allegedly used an expletive when discussing business concerns about a hard Brexit at an event for EU diplomats.

When pressed about using the word, Mr Johnson refused to deny the claim and said he may have “expressed scepticism about some of the views of those who profess to speak up for business”.

Mr Johnson has said the UK will leave the EU by 31 October, with or without a deal.

Recent figures reveal investment in the UK car industry has fallen sharply to £90m in the first six months of this year compared to £347m in the first half of 2018.

The Society for Motor Manufacturers and Traders said, however, that companies’ spending on contingency plans for a possible no-deal Brexit had now reached £330m.

Mr Krueger made his comments after BMW reported a 28% drop in pre-tax profits for the second quarter of the year.

The firm attributed this to investing heavily in electric car production and said it still expected to hit its financial targets for 2019.

4 new pieces of machinery that will be game-changers for farmers

There have definitely been many incredible technological marvels to appear on farms over the decades, but as we move into 2020 and beyond, new machinery must be introduced for farmers to keep up with high consumer demand.

While farmers across the UK have to face the challenges of climate change, availability and cost of land expansion, as well as the potential consequences of Brexit to contend with, they still have a job to do nevertheless. Just like they’ve always done, farmers will do their best to grow food to help feed a growing population, but the difference right now is that technology is assisting them like never before. These are just some new pieces of farming machinery that are revolutionising agriculture.

Robocrop InRow Weeder

Cool name aside, the Robocrop InRow Weeder is a useful little thing that can mechanically remove weeds without the use of harmful chemicals and long, backbreaking work. As weeds can ruin crops and even livestock in some cases, the Robocrop helps to destroy these unwanted plants and promote healthy crop conditions.

CLAAS combine harvester

It would be fair to say that the combine harvester was due for an update after all these years. CLAAS is releasing a new, updated LEXION model that has been designed from the ground up with input from farmers and contractors to deliver a lean, mean, powerful combine. Throw in a larger threshing drum, laser guidance system, AI assistance, advanced fuel-saving capabilities, and a bigger cabin and set of tyres, and you’ve got yourself a combine harvester that is soon to become one of the most sought-after farming machines in the UK and the world. Check out a world record corn harvest using a CLAAS combine harvester below.

Dewulf carrot harvester/separator

Similarly to potatoes, carrots are root vegetables that typically require a lot of digging and picking by hand, often with dozens of workers needed to complete the job. The Dewulf carrot harvesting machine is towed behind a tractor and is lightning fast and efficient. Seeing just how quickly the carrots are being harvested and separated makes one wonder what other older techniques can be improved upon and changed for the future.

Hortikey plantalyzer

This is perhaps one of the more space-age pieces of machinery out there. The Hortikey plantalyzer can assess the ripeness of tomatoes using sophisticated camera and software technology. The machine will move along the rows and analyse the crops, and then send back data to the farm owner regarding how many tomatoes are ready for picking. While it might seem large and bulky, the technology will become smaller and faster down the line, and it’s possible these machines could be used for many other types of crops one day.

The resilience factor

At a time of domestic political flux and geopolitical shifts, the growth and robustness of UK businesses is more critical than ever.

Paul Beach, Head of Executives and Entrepreneurs at Arbuthnot Latham explains that SMEs are increasingly important, demonstrating resilience in the face of adversity, boosting innovation, creating jobs and generating wealth.

While the uncertainty caused by ongoing Brexit negotiations has placed a spotlight on economic growth and the competitiveness of the UK as a business hub, UK SMEs have shown remarkable resilience. Through managing a challenging backdrop of rising operating costs and shifting consumer demand, SMEs have only grown stronger. This has forged a steep learning curve for nascent entrepreneurs and a challenging path for businesses both large and small, across the UK.

However, the UK has the unique advantage of pre-eminent financial services, the expertise from widespread technological innovation, paired with robust and sensible regulation. SMEs and entrepreneurs are at the centre of this, primed to capitalise on these resources and ripe for growth.

Globally, the UK has one of the highest densities of SMEs. In 2018, the National Federation of Self Employed & Small Businesses found that SMEs accounted for 60% of all private sector employment in the UK and generated a combined annual turnover of £2.0 trillion, or 52% of private sector turnover. That is massive contribution and the pipeline of exciting new businesses is growing increasingly stronger…

While London is undoubtedly a hub of innovation, talent and entrepreneurial spirit is found throughout the UK. Manchester, Bristol and Exeter, among many others, are home to ambitious businesses, disrupting sectors and bringing meaningful contributions to the local and national economy.

In spite of lacklustre consumer spending, the pipeline of newly emerging viable businesses remains strong. Many success stories such as the Exeter based but UK wide Crowdcube, BookingLive, Nested and Push Doctor serve as an example of the heights within an entrepreneur’s reach.

At Arbuthnot Latham, we value innovation and creativity. SMEs in their nascent stages have exponential potential to scale and develop across sectors and channels, able to disrupt and revolutionise new markets, resulting in cost savings and efficiencies.  This optimism however does not mean that the path to success for SMEs is easy. The resilience of entrepreneurs is a reaction to the highly competitive business landscape and the challenge in accessing suitable funding and expertise, in a crowded pool.

Standing out above the parapet, there are several key sectors bucking wider economic growth trends and driving growth. UK intellectual property intensive industries, in particular gaming and entertainment, are world leading and are remarkably insulated from wider economic trends, enjoying growth while more ‘traditional’ sectors see constriction.

Not to be underestimated, the creative industries constitute one of the fastest growing sectors of the UK economy. Similarly, e-commerce businesses capitalising on the ‘right here, right now’ culture of consumption, such as Deliveroo and Just Eat, have accelerated to success from much more humble beginnings.

Fintech is one of the biggest sectors for SME growth, boosted by government support for innovation through the 2018 Fintech Sector Strategy and the development of smart and sensible regulation for emerging sectors, such as the more esoteric blockchain and digital assets in addition to AI and Virtual Reality.

Investment in UK fintech business has more than doubled in the past three years; not only a boost to employment and wealth creation, these businesses are revolutionising industries and creating the opportunity for more traditional sectors to gain a competitive edge.

Once businesses are established and generating revenue, the emphasis shifts from innovation and disruption, to innovation, disruption and resilience. This may seem like a steep challenge for upcoming entrepreneurs, but businesses can deploy several strategies:

• Preparation is key – talent and innovation must be supported by an acute awareness of risks and exposures. This forms your safety net.
• The political and economic environment is always shifting and that can have implications on costs and margins. To insulate your business, it is helpful to consider a variable operating cost structure.
• No matter how successful or ‘expert’ you become, there is always room to learn and improve. Business leaders must be open to strategic adaptation and agility.
• Never get too comfortable! Watching out and adapting to new trends and client expectations, ensures that you stay relevant.
• Stay hungry! Always have appetite for disruption

To protect and promote innovation, we must support the UK’s entrepreneurs. My answer to anyone doubting the UK’s economy and productivity levels? Look out for our SMEs, with proven resilience they will continue to drive growth and create opportunities.

Half of business owners regret attitude towards cashflow

Nearly half of business owners fear they’ve held back their business by having a naive attitude towards cashflow during their company’s infancy.

Almost two-thirds of those who identified cashflow naivety as their largest regret suggested that they overspent before gaining any profit, ultimately leaving them in larger debt than they could manage.

Those in the business services, such as sales or marketing regretted their attitude to cashflow, with 65 per cent in these sectors claiming it almost ended their business venture, training providers were second most regretful and manufacturing third.

Industries in London feel they regret their cashflow decision with almost half of business owners feeling they made mistakes, which was fractionally higher than the national average of 47%.

The study gathered data from business owners to identify what UK SME’s view to be their biggest financial mistakes.

Gaining enough funding was also a major regret with two in five business owners claiming they made the wrong decision in starting a business with the budget they had.

Recruiters felt they made the worst choice with 62 per cent stating they didn’t take advantage of better funding options; this was followed by the manufacturing and retail industries.

Those in the arts felt the most comfortable with their start up budget as only 1 in 5 claimed they had any regrets regarding funding.

More than a quarter of business owners claimed they “didn’t know they could receive loans and grants” and simply used their own money to help support their start up.

Those in the legal sector had the least knowledge on funding options available to them, this was followed by owners in transport and logistics and healthcare.

Although the details of grants and loans can vary depending on business location, over one in four of the surveyed business owners in London admitted they had never researched options available to them.

Shockingly, more than a quarter of UK business owners regret not creating a financial plan or forecast during their start up.

Compared to the national average, less business owners in London regretted their financial planning with only 22% fearing they’re hampering their businesses due to a lack of forecasting.

Lack of funding for marketing during a start-up was also highlighted as a major regret for UK business owners, with more than a quarter claiming they didn’t budget for this expense.

The biggest culprits that didn’t have marketing budgets include business owners in transport and logistics, recruitment and manufacturing.

More than a third of businesses registered in London failed to put any budget towards marketing.

Surprisingly, 13% of UK business owners don’t regret any of the financial decision they made during their start-up.

Andy Dodd, Managing Director at Hitachi Capital Invoice Finance, who conducted the research, said, “It’s fascinating to find out just how many businesses have lacked financial planning such as not forecasting or budgeting for key start-up essentials such as marketing costs.

“We are really passionate about helping people start their own businesses and try and support wherever we can, I hope this survey allows new business owners to look at their own financial planning and re-consider those critical spends they need to plan for.”

Charting Manchester’s creative industry growth

Research has revealed that the creative industries in Manchester are growing faster than anywhere else in the UK outside of London.

Manchester city region employs 48,515 people in creative industries, spanning film and TV, architecture, publishing and design. Analysis of the data published by Nesta, which compared the periods between 2011-14 and 2015-16, shows that creative jobs have increased by almost 7,500 in just two years, which represents an impressive growth rate of 18 percent. In addition to far out-performing the national average of 11 percent, Manchester’s creative sector has grown at triple the rate of every other industry.

The city is home to 9,183 individual creative industry companies, which has grown by 21 percent in two years and in real terms translates to an additional 1,618 companies. It is thought that the creative sector contributes more than £1.4 billion to the local economy. This represents 3.74 percent of total GVA, which is higher than anywhere in the UK outside of the Greater London area.

Onwards and Upwards for Manchester

At the Be More Manchester event, organised by Creative England, the Mayor of Greater Manchester, Andy Burnham, said that the Manchester city region should be proud of these figures.

Going on to highlight the potential of the creative sector, Mr Burnham said that as creativity can be used to “overcome all challenges”, more should be done to incorporate the creative arts into the school curriculum to encourage children from an early age that success in the creative fields is possible.

Mr Burnham went on to say that it is crucial to continue to bring “businesses in the sector together, to inspire, support and look at ways we can drive it even further forward.”. This point was emphasised by the chief executive of Creative England, Caroline Norbury, who highlighted that “Manchester is brimming with truly groundbreaking and innovative companies” that are contributing significantly to both the local and wider economy.

Employment Figures are Strong Across Creative Industries

Nesta’s research illustrates that publishing is the fastest growing creative industry in the City Region, with the sector creating 800 jobs between 2014 and 2016, a rise of almost 58 percent. The architecture industry saw job growth of just over 43 percent and employment across TV, video, radio, film and photography is sitting at just under twice the national UK average.

Design employment increased by just over 20 percent and the number of businesses across TV, video, photography, radio and film increased by more than 30 percent. IT, software and computer services is the largest creative sector in the city, with more than 4,500 business employing 16,785 workers.

Looking to the Future

It is thought that the UK is currently on track to create a million new jobs in the creative industries between now and 2030. At the Be More Creative event, Caroline Norbury was also quoted as saying, “talent is everywhere but opportunity is not, and it is imperative that opportunity is developed in all parts of the country, to give real, diverse talent a platform to tell their stories”.

Notably, Manchester is featured in the list of ‘Top 10 Travel to Work Areas’, which indicates that the region is an excellent place for creatives to set up both home and business.

This period of growth has resulted in a wealth of opportunities for small businesses in terms of temporary office space in key areas of Manchester, whether it’s individual studios, coworking spaces or fully serviced offices. A sense of community that spans the creative industries is palpable and a general sentiment of cooperation makes the city an ideal place to set up a range of creative businesses.

There are lots of reasons to start a business in Manchester. In addition to being home to more than two million people, the city region has an economy larger than that of Northern Ireland. In addition to the wealth of praise and support from leading business figureheads and politicians, such as Caroline Norbury and Mayor Andy Burnham, a range of investment opportunities and growth hubs are on hand to support new businesses across Manchester. These include MIDAS and the Business Growth Hub.

The future of the creative industries in the Manchester region looks extremely positive going into the future, despite a potentially challenging UK economy in the years ahead.

CBI says that UK is not ready for a no-deal Brexit in October

The Confederation of British Industry (CBI) has warned the government that neither the UK nor the EU is ready for a no-deal Brexit on 31 October.

“While the UK’s preparations to date are welcome, the unprecedented nature of Brexit means some aspects cannot be mitigated,” said the CBI.

It has published practical steps it says the UK, EU and firms can take.

A government spokesman said the UK has increased the pace of planning for no-deal.

The CBI had previously said leaving the EU with a deal was essential to protect the economy and jobs.

New prime minister Boris Johnson has made Michael Gove responsible for planning a no-deal Brexit.

Mr Gove has said the UK government is currently “working on the assumption” of a no-deal Brexit.

He said his team still aimed to come to an agreement with Brussels but, writing in the Sunday Times, he added: “No deal is now a very real prospect.”

‘Hampered’

The CBI’s report What Comes Next? The Business Analysis Of No Deal Preparations advises what measures businesses can take to reduce the worst effects.

The advice is based on a study of existing plans laid out by the UK government, European Commission, member states and firms.

“And although businesses have already spent billions on contingency planning for no deal, they remain hampered by unclear advice, timelines, cost and complexity,” the CBI says.

“Larger companies, particularly those in regulated areas such as financial services, have well-thought-through contingency plans in place, though smaller firms are less well prepared.”

The report is based on thousands of interviews with firms of all sizes and sectors, including 50 trade associations, covering all areas of the UK economy.

The CBI says that in a no-deal Brexit some 24 of 27 areas of the UK economy would experience disruption.

The UK had been due to leave the EU on 29 March, but former Prime Minister Theresa May asked for an extension and the date was pushed back to 31 October.

A UK Government spokesperson said: “This is a constructive contribution from the CBI, acknowledging the importance of all businesses preparing for no deal on the 31 October.

“While we have done more to prepare than this report implies, since the new Prime Minister was appointed the Government has stepped up the pace of planning for no deal. The Chancellor has confirmed all necessary funding will be made available for vital no deal preparations. This includes funding for a major nationwide communications campaign to ensure that people and businesses are ready.

“Crucially, while there is more to do, the CBI observes that the UK is ahead of the EU in planning for no deal.”

Code Ninjas signs first UK franchisees – in record-breaking time

Four entrepreneurs from Greater London will launch the first ever Code Ninjas coding centre on British soil.

After attending a discovery day in May, the four friends instantly recognised the opportunity and wasted no time securing their position as the UK’s first franchisees. The grand opening of Code Ninjas Pinner and Harrow is planned for September 2019.

Word is getting out about the grand opening planned for September, and customer enquiries are already coming through thick and fast. David Graham, founder and CEO, expects it won’t be long before other prospects follow suit, keen to capitalise on the demand.

“We’ve never had a franchisee come on board as quickly – it actually made Code Ninjas history,” he explains. “We’ve had an unbelievable response since announcing the franchise is expanding into the UK – more than 40 serious prospects attended our first UK discovery day. Coding is big business; parents are crying out for a fun, friendly portal for their children to develop this skill. It was a case of right place, right time for our expansion and we’re very excited to have welcomed our first UK franchisees into the fold.”

The franchisees bringing Code Ninjas to the UK are Prasad Prabhakaran, Srinivasa Rao, Sridhar Bhat and Sharath Iyer (pictured above)– friends and associates from Pinner and Harrow. This new business endeavour combines their experience in technology, finance, telecoms, operations and education.

“As a team, our skills are complementary, and our objectives are the same – we want to build a profitable business that will make an impact in our community,” says former technology executive, Prasad. “Kids coding programmes are in such high-demand across the board. In Pinner and Harrow specifically, there is an abundance of business professionals who understand the importance of technology and the benefit of programmes, like Code Ninjas, for their own children.

“With such demand for kids coding sessions, we expect the franchise to grow quickly. Our long-term goal is to open additional centres in neighbouring communities in the coming years. We’re very proud that we’re the first to bring Code Ninjas to the UK and can’t wait to see what the future holds.”

Kids coding is big business, both in the US and the UK, as parents continue to put emphasis on STEM education for their own children. Graham, a father of two, understands the obvious need for Code Ninjas centres in the UK:

“In this day and age, it’s crucial that our children are able to not just use but understand and master the technology that plays a part of their everyday lives. What we offer is a fun, safe place where kids can come and just be kids, whilst learning a valuable skill. That’s why the programme has performed so well. We now have more than 150 Code Ninjas centres across the US and Canada, with almost 100 more openings planned before the end of the year.”

David and his team are confident that the UK will replicate, if not surpass the US in terms of growth speed and breadth of coverage. Studies show that nine out of ten parents want their children to learn how to code, and Code Ninjas aims to provide that service to every community in the UK that will support it. A team of experts at Code Ninjas head office in the US, as well as an in-country team in Britain, will support UK franchisees as they work to get centres open, operational and profitable.

“Our priority is to support the Prasad and his fellow franchisees with a seamless and successful launch of the very first UK Code Ninjas. Here’s to the first of many launches this side of the pond!”

Equifax to $700m in data breach fine in US

Equifax has agreed to pay up to $700 million to settle American investigations into a huge data breach two years ago, an amount that dwarfs the £500,000 fine imposed by Britain’s data protection watchdog.

Federal and state agencies said that Equifax “engaged in unfair and deceptive practices” in connection with the breach, which affected about 147 million people. It is one of the largest known breaches in terms of people affected.

Equifax, one of the “big three” credit reporting agencies alongside Experian and Trans Union, collects credit data on about 800 million people. The company revealed in September 2017 that its computer network had been hacked and information including names, addresses, dates of birth and social security numbers had been stolen. About 15 million accounts linked to UK residents were affected by the hack. In September last year, the UK Information Commissioner’s Office fined Equifax £500,000, the largest penalty it was allowed to impose. The agency is now able to impose larger penalties after a change in the law.

The US settlement was agreed with the Consumer Financial Protection Bureau, the Federal Trade Commission, 48 states, the District of Columbia and Puerto Rico. They accused Equifax of “failing to provide reasonable security for the massive quantities of sensitive personal information stored within its computer network, causing substantial injury to consumers whose data was stolen” and “deceiving consumers about the strength of its data security programme”.

Letitia James, the New York attorney-general, said: “Equifax put profits over privacy and greed over people, and must be held accountable to the millions of people they put at risk. This company’s ineptitude, negligence and lax security standards endangered the identities of half the US population.”

Joe Simons, chairman of the Federal Trade Commission, said: “Companies that profit from personal information have an extra responsibility to protect and secure that data. Equifax failed to take basic steps that may have prevented the breach.”

Mark Begor, chief executive of Equifax, said that the settlement was a “positive step”. In its last quarterly report, Equifax said that it had set aside $690 million to cover the penalties.

Equifax shares, down 2 per cent since the breach emerged, rose $0.74, or 0.6 per cent, at $138.04 by midday in New York, valuing the company at $16.7 billion.

No-deal Brexit puts UK ‘at risk of severe downturn’

Economic growth in Britain has stalled and there is a one-in-four chance that the country is entering into a recession, according to the National Institute of Economic and Social Research.

The think tank said that the outlook was “very murky” and warned of the possibility of a “severe downturn” if Britain leaves the EU without a deal after October 31. The institute said that a no-deal Brexit would “throw concrete” in the wheels of the British economy, knocking 5 per cent off gross domestic product in the long term.

“A no-deal exit will mean a significant halt in economic activity and chronic levels of economic uncertainty,” it said. “There is around a one-in-four chance the economy is already in a technical recession.” A recession is defined as two successive quarters of falling GDP.

Niesr is Britain’s oldest independent economic research institute. Its forecasts for the British economy have performed well in recent years. Last year it ranked in the top third among a list of 30 leading forecasters, each of whom made predictions about GDP, inflation, unemployment and interest rates.

The think tank said the short-term impact of a disorderly exit could be mitigated by a cut to interest rates and more quantitative easing, but these would do little to offset the downturn in the long term. Niesr has forecast that interest rates could fall to 0.25 per cent by the end of this year but they would have to rebound to 1.75 per cent by the end of next year.

It also said the Treasury would have to jettison its fiscal rule that government borrowing should be below 2 per cent of GDP by 2020. The budget deficit would rise to 2.7 per cent of GDP in the event of no deal. Jagjit Chadha, Niesr’s director said: “However we look at it, there will not be much economic joy in a no-deal Brexit.”

The warning comes as Theresa May prepares to stand down as prime minister. Either Boris Johnson or Jeremy Hunt will succeed her. Mr Johnson, the favourite to win the Tory party leadership, has vowed to push through Brexit by October 31 “do or die”, raising expectations of a no-deal Brexit.

Even a smooth Brexit transition would unlock growth of just 1.2 per cent in 2019 and 1.1. per cent in 2020, while inflation would rise to 4.1 per cent. This is because investment and productivity growth remains weak and uncertainties about future trading relationships are likely to last beyond October. The British economy grew by 0.3 per cent in May after contracting by 0.4 per cent in April. Economists believe that second-quarter growth will fall to either zero or -0.1 per cent when the official figures are released next month.

Niesr noted that while Brexit-related uncertainty is holding back business investment and productivity, consumer spending continues to be supported by a strong labour market and sustained wage growth. According to the latest IHS Markit household finance index, consumer confidence rose for a second consecutive month, although still in negative territory, up to 44.3 in July from 43.9 in June.

Niesr’s downbeat assessment extended to the global economy. Citing trade tensions between the US and China, the think tank cut its forecasts for global economic growth to 3.3 per cent this year, the slowest annual growth for a decade.

UK shoppers more likely to be positive in online reviews than negative

UK shoppers are more likely to post a positive online review than one that is negative, research has found.

The research discovered that 71 per cent of UK shoppers will go online to leave a review if they have had a good experience of a product or service, only 52 per cent go on-line after a bad experience.

The findings were revealed in a survey examining attitudes to online reviews among 2,000 UK consumers. It found that the most common subjects for reviews are restaurants, followed by electronic goods and holidays.

“It’s quite refreshing to see that for UK shoppers the positive outweighs the negative when it comes to sharing reviews online,” said Matt West, CMO at Feefo. “Yet although it’s great to be praised, no business need ever fear bad feedback. With advanced technologies such as sentiment analysis, all reviews become a hugely valuable source of insight into how a business is performing and where improvements can be made.”

Exploring the future of reviews, the research found that 91 per cent of respondents want to save themselves time by having multiple reviews for a single product summarised, while 75 per cent would like to see product ratings left by friends and family.

And although written reviews remain most popular, there is increasing demand for video and voice reviews. In fact, 51 per cent said they would be more likely to buy a product if they could view a video review and 54 per cent are interested in listening to voice reviews.

“Whatever the method, consumers know what they are looking for in reviews, so businesses need to respect that and provide them with honest, verified, but not filtered reviews they can rely on,” said West.

Yair Cohen, internet law and social media lawyer at Cohen Davis Solicitors and panellist at a Feefo roundtable event, said: “Video reviews have a higher level of credibility, especially when the reviewer is on-screen speaking to the camera.” But he said trust in online reviews requires a new regulatory body to establish standards and establish greater credibility in the whole review system.

In other findings, the research revealed differences in attitudes between the sexes, with for example, 70 per cent of women saying they read reviews before buying, compared with 61 per cent of men. More men, however, read reviews by professionals than women. Men are also more likely to watch product videos than women.

Why sports betting operators like Betway are focusing on online casino

The UK is one of the world leaders when it comes to online gambling. The major bookies and sports betting operators are increasingly taking advantage of a positive worldwide reputation to broaden their markets and revenue share.

As revenues from online bookies in the UK continue to rise, more sports betting operators are making the transition into online casino branches. There are a number of reasons for this shift in focus, but grabbing a larger portion of the potential online gambling market is the key. As the UK betting industry continues to be a world-leader, here are the reasons why so many household names such as Betway are leaping at online casino branches.

Social Media

The rise of social media has proven to be positive for those brands that embrace it. Sports betting operators that have adopted trending social marketing have seen their brand recognition sky-rocket. Names like Paddy Power have joined Betway at the top of the market, with the average Betway casino review showing just how far they have come since adopting the bestcasino.co.uk status. Eye-catching marketing and a broader consumer base have made it almost inevitable that these household names are looking at offering more than ever before.

Proven Interest

Not everyone is into sport, and not every country has the same obsessions with the same sports. By making the shift to online casino gambling, UK firms are able to attract a wider portion of the global gambling community. There’s no disputing that gambling has resulted in one of the biggest UK business success stories of recent years. There are estimates that the UK market alone amounts to £2.8bn into the public purse. With easily recognisable games like roulette, craps, slots, and blackjack, sports betting companies are able to attract more players and more revenue.

Global Access

With such incredible revenue potential in the UK, it’s no wonder that UK brands are looking beyond the horizon at larger and less saturated markets. As more of the globe develop more reliable internet connections, sports betting companies are positioning themselves to take advantage of those markets and get a head start on their competitors.

Mobile Access

You don’t need a PC or even a laptop to get involved with online gambling. Now, you can place a bet, play a game, and collect your winnings using nothing more than your smartphone. That means that UK sports betting operators are diversifying. Now that anyone can gamble from the comfort of their own home, on the daily commute, or on their lunch break, the potential scope for profit generation is bigger than ever.

Improved Security

One of the barriers to online gambling is fears about cybersecurity. Online betting companies have embraced the challenges and are among the first industries to take advantage of the latest cybersecurity trends. With the adoption of resources like the blockchain, online casinos are proving to be one of the more secure forms of online gambling.

As technology continues to improve, the online gambling industry is only set to grow. Tech like virtual reality is set to be the next big leap forward for online casinos, and that means that online sports betting operators are racing to keep up with the brands that started moving more quickly.

Government borrowing rises to highest level since 2015

Public sector net borrowing rose sharply in June because of higher debt interest payments and rising spending on services, figures show.

It totalled £7.2bn, according to the Office for National Statistics, up from £3.3bn in June 2018.

It was the highest June borrowing figure since 2015, the ONS said.

Analysts said the figures would add to the uncertainty surrounding the UK economy in the run-up to Brexit and the imminent change of prime minister.

“The outlook for fiscal policy was already uncertain because of the extension of Brexit until 31 October, in addition to the imminent change of Conservative leader and prime minister,” said the EY Item Club.

“Much will depend on whether the economy can shrug off its current weakness, as well as on Brexit developments. It will also be influenced by any changes to fiscal policy by the new prime minister and chancellor .”

‘Notable increase’

Last month, the government took in £800m more in tax and National Insurance contributions than a year previously, but debt repayments rose by £2.1bn.

The ONS said there was “a notable increase” in expenditure on goods and services of £1.2bn, while the UK’s contribution to the EU increased by £400m compared with June 2018.

In the three months to June, borrowing was 33% higher than the same period in 2018 at £17.9bn.

Public sector net debt rose to £1.81 trillion, or 83.1% of gross domestic product (GDP).

The latest figures, which show public spending running ahead of forecasts, come as concerns grow over the state of the UK economy in the run-up to Brexit.

The most recent GDP figures showed the economy grew by 0.3% in May after shrinking 0.4% in April.

But economists say that June’s growth figures will have to be strong to avoid contraction in the second quarter.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said borrowing would probably just stay within the rules set out by the current Chancellor, Philip Hammond.

“His successor, however, looks highly likely to tear up the existing rules, setting the stage for a giveaway Budget in the autumn and for fiscal policy to materially boost GDP growth next year,” he added.

“The Conservatives are desperate to improve their poll rating and public support for austerity has crumbled, so a fiscal boost is coming.”

On Thursday, the Office for Budget Responsibility said borrowing could rise by £30bn a year in 2020-21 if the UK leaves the EU without a transition deal on 31 October.

The OBR was created in 2010 to give independent analysis of the UK’s public finances.

In its first assessment of the economic impact of a no-deal scenario, the OBR used IMF analysis that shows the UK economy could contract by 2% in 2020 before recovering in 2021.

UK regulator fined Casino 36 for £300k

The land-based gambling operator Casino 36 (they are also own few online casinos) was fined by the British gambling regulator for £300 thousand for money laundering and violation of social responsibility.

An investigation by the UK Gambling Commission found that a gambling establishment in Wolverhampton did not properly conduct an identity verification (EDD), a source of funds (SOF) and a wealth source (SOW) of 33 clients. These people spent a total of £147,741 at Casino 36 from November 2017 to October 2018. According to the regulator, senior management became aware of these violations on February 12, 2018, but such actions by the gambling establishment continued.

The report also stated that the controls at Casino 36 were outdated and did not take into account the current management of the Gambling Commission.

According to experts, Casino 36 also failed to protect vulnerable customers, because it did not contact them even when they had obvious signs of problems with gambling.

In addition to penalties, more conditions will be added to the license of a gambling establishment. All personal management license holders working for the operator will also have to undergo anti-money laundering training, while a comprehensive training program should be launched for staff.

Richard Watson, the executive director of the commission, said operators are responsible for not allowing illegal funds to pass through them.

“As a result of failures at Casino 36, the stolen money could pass through their casinos unhindered, and vulnerable customers were at risk of harm. This is simply unacceptable, ”- said Watson.