Author: WTX Business Team

Silicon Valley Bank collapse If you work in the technology industry, it’s likely that you are familiar with Silicon Valley Bank. However, if you haven’t heard of this seemingly localised bank, don’t worry – it primarily served a specific clientele of startups, venture capitalists, and technology firms, with only a few branches despite holding billions in deposits. Unfortunately, the bank has since collapsed, marking the second-largest bank failure in US history, after banking regulators shut…

Bosses blamed the lack of bonuses on ‘inflationary pressures’.

Virgin Orbit to pause all operations from Thursday Virgin Orbit plans to halt operations from Thursday and reportedly furlough almost all its employees in a move believed to be aimed at boosting its finances. The company’s CEO, Dan Hart, told employees that the furlough would provide time to finalise a new investment plan. It is unclear how long the furlough will last, but Hart promised to provide more information by next week. Shares in the…

Credit Suisse emergency loan sparks banking fears Credit Suisse announced that it will be borrowing up to 50 billion Swiss francs (£44.5bn) from Switzerland’s central bank to bolster its finances, in an effort to simplify and strengthen its business. The troubled bank’s shares plummeted by 24% on Wednesday after revealing weaknesses in its financial reporting, sparking concerns of a wider banking crisis and leading to steep drops in Asian shares. However, European markets are expected…

Budget 2023: The key points of Chancellor Jeremy Hunt’s Spring Budget Chancellor Jeremy Hunt has announced the budget for 2023. The UK will now not enter a technical recession this year, the independent forecasters, the Office for Budget Responsibility (OBR) has said. Inflation will more than halve and reduce to 2.9% by the end of the year, the OBR expects. Key points: • As expected, the government is extending the energy price guarantee (EPG) which…

Budget to boost lifetime allowance for pension savings In an effort to encourage people to continue working, Chancellor Jeremy Hunt plans to use his Budget to increase the lifetime allowance for pension savings to up to £1.8m. This would address government concerns that higher wage earners, such as doctors and consultants, retire earlier. The annual cap on tax-free pension contributions may also be raised from £40,000 to £60,000, which is expected to benefit millions of…

UK job vacancies fall for eighth time in a row Companies in the UK blamed economic pressures for holding back on hiring new staff, as job vacancies fell for the eighth consecutive time. The official figures were released a day before Wednesday’s Budget, where the Chancellor is expected to outline plans to encourage people back to work. Between December and February, the number of job vacancies fell by 51,000 compared to the previous three months.…

Global bank stocks slump after Silicon Valley Bank collapse, despite Biden reassurances Despite assurances from the US president that the financial system is safe, bank shares in Asia and Europe have dropped after the collapse of two US lenders. Authorities moved to protect customer deposits in the aftermath of the collapse of Silicon Valley Bank (SVB) and Signature Bank, but investors are concerned that other lenders may still be affected.  Global share prices dramatic drop …

CITY AM – Silicon Valley Bank UK: What we know (and what we don’t) on Sunday evening The Bank of England is set to put Silicon Valley Bank UK into insolvency as soon as this evening – with tech champions warning that the bank’s collapse could be an extinction-level event for a host of UK firms. This story has been updated as of Monday morning The bank’s accounts are effectively frozen, meaning that firms will…

CITYAM – The German Job City AM says Hundreds of jobs could be created from a £500m investment in Oxford by BMW, as it looks build electric models of its Mini in Britain. The German car-maker is reportedly preparing to unveil a major injection of cash – including £75m of government-approved funding – as first reported by Sky News’ Mark Kleinman. The investment of around £500m includes funding from the government’s Automotive Transformation Fund, backed…

Premier League football helps UK economy rebound A return of Premier League football and more kids in their classrooms in January helped UK GDP bounce back from the decline seen in December, the Office for National Statistics said Friday. GDP rose 0.3% month-on-month, recovering part of the 0.5% decline seen in December. Official figures show that the UK economy grew by 0.3% in January, rebounding from a sharp fall in December. The growth was largely…

Adidas unsure what to do with €1.2bn Yeezy goods Adidas is currently weighing its options for the €1.2bn (£1bn) worth of shoes from Kanye West’s Yeezy line that were left over after the sportswear company ended its partnership with the rapper last year. Kanye West now goes by the name Ye. Despite Ye’s anti-Semitic comments that led to the split, fans still want to purchase the shoes. Adidas CEO Bjorn Gulden has said that the…

Heathrow told to cut passenger charges again The Civil Aviation Authority (CAA) has told Heathrow Airport to reduce its passenger charges for airlines in 2024, as a result of passenger numbers rebounding faster than expected after the Covid pandemic. The average charge per passenger at Heathrow for 2023 is currently £31.57, but this is set to decrease to £25.43 in 2024 and remain stable until the end of 2026. Although airlines pay these charges, they…

Elon Musk apologises to sacked Twitter employee after online spat Elon Musk has apologised to a Twitter employee he had an exchange with on the platform, who was trying to work out if he had been fired. The incident began when the employee, Halli Thorleifsson, tweeted to Mr Musk that the head of HR at Twitter was unable to confirm his employment status. Musk responded by questioning what work Thorleifsson had been doing, leading to…

FT – Speaker McCarthy to meet Taiwan’s leader in US to avert Beijing backlash  The Financial Times reports that the Speaker of the US House of Representatives, Kevin McCarthy, is to meet Taiwanese President Tsai Ing-wen amid ongoing tensions between Beijing and Washington. The paper says McCarthy expressed a wish to visit Taiwan before becoming speaker, but that the pair have agreed to meet in the US because of Taiwanese security concerns. Following a visit…

City AM – Tony Danker: CBI boss steps down amid sexual misconduct allegation City AM says The head of the Confederation of British Industry, Tony Danker, has stepped down from the role amid misconduct allegations. The announcement was made in the Guardian, after the publication reported that the CBI had hired lawyers to investigate alleged impropriety. The CBI insisted it takes all allegations “extremely seriously” but until an investigation in completed they “remain unproven”. It…

Pret A Manger gives staff third pay rise in a year Pret A Manger has announced its plans to give employees another pay rise – that’ll be the third within a year!  The increase, set to begin in April, will result in a 19% boost in year-on-year pay for shop workers, making Pret A Manger’s baristas some of the highest-paid in the industry, with wages ranging from £11.80-£14.10 per hour based on experience and location. …

Financial Times – Northern Ireland trade deal eases post-Brexit tensions with Brussels Summary of the front page The Financial Times says the trade deal will ease post-Brexit tensions with Brussels. The paper describes the agreement as a “turning point” but says many Eurosceptic Tories may wait to take their lead from the DUP, whose leader, Sir Jeffrey Donaldson, told the Commons on Monday that there remained some “key issues of concern”. Today’s top stories Like…

Eggs and margarine drive food inflation to record 17.1% According to research by Kantar, prices for food and drink in shops have hit record highs due to rising costs of milk, eggs, and margarine. Grocery prices rose by 17.1% compared to the same period last year, the highest rate since Kantar started keeping records in 2008. One in four shoppers is now struggling financially, and households may face an £811 increase in their annual grocery…

City AM – London set to power recovery CITYAM says Last year was one of great change: a year of two monarchs, and three prime ministers. There were some great historic events, such as the Platinum Jubilee celebrations. But to quote the late Queen’s words from 30 years ago, when we consider the political and economic volatility, 2022 may not be a year on which we “look back with undiluted pleasure”. Yet I am optimistic…

Even the manager who encouraged staff to #SleepWhereYouWork wasn’t spared.

UK startup Britishvolt bought by Australian firm Recharge Industries, an Australian company, has acquired the bankrupt Britishvolt battery maker. Britishvolt had planned to construct a £4bn battery plant near the Port of Blyth in Northumberland, but it failed last month due to insufficient funds, battery expertise, reliable technology, customers, and revenue. Recharge Industries is a startup with limited manufacturing experience, and it shares similarities with Britishvolt in that regard. The parent company of Recharge Industries…

Starbucks launches olive oil coffee drinks in Italy Starbucks, the world’s largest coffee chain, is introducing a line of olive oil-infused drinks in Italy, according to CEO Howard Schultz. The Oleato range, featuring an iced shaken espresso and a latte with olive oil “steamed with oat milk”, will be launched on Wednesday in Italy, and is set to be available in Southern California in the US this spring, and in the UK, Middle East, and…

Councils get more money to help struggling households Starting in April, local authorities in England will receive a share of £842m from the Household Support Fund to assist households struggling the most with rising prices. Information about accessing the new funding will be updated on council websites in the coming weeks. Each council will decide how to use the money, resulting in a wide range of approaches, from ordering affordable food boxes to delivering energy-saving…

Record tax payments in January give UK unexpected boost In January, the UK government reported an unexpected surplus in its finances, despite significant spending on energy bills and EU payments. This was due to higher-than-anticipated self-assessed income tax receipts, which bolstered the country’s coffers and resulted in a surplus of £5.4bn. Although the government is due to present its Budget next month, economists noted that the public finances are still weaker than they were at…