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Today’s Business Highlights
The Labour government are revelling in their honeymoon period as the economy has got a much needed boost today. With news that GDP is better than expected as the economy grows.
Another dodgy investment banker is convicted of fraud. As a jury in New York has found the Wall Street investor, Sung Kook ‘Bill’ Hwang, guilty of fraud and market manipulation.
And Labour are heading to take on industry as rising levels of worklessness are “unacceptable” and require “immediate action”, the new Labour government’s jobs minister has said.
Economy back on track as GDP beats expectations in May
The economy grew faster than expected in May, new figures show, as the newly elected Labour government embarks on its “national mission” of restoring sustained economic growth.
Gross domestic product (GDP) grew 0.4 per cent in May, according to data from the Office for National Statistics (ONS), which was ahead of economists’ expectations. They had expected the economy to grow 0.2 per cent.
The strong expansion in May ensured that the economy returned to growth after stagnating in April.
Archegos founder Hwang convicted of fraud
As a jury in New York has found the Wall Street investor, Sung Kook ‘Bill’ Hwang, guilty of fraud and market manipulation.
It comes three years after the failure of his investment fund Archegos Capital Management, which caused billions of dollars in losses for several major banks.
Prosecutors accused Hwang of lying to lenders as he secretly amassed large bets on several companies.
Labour laws need an overhaul
Liz Kendall is proposing several measures including a new national jobs and careers service to tackle record youth unemployment and rising numbers of those out of work due to long-term sickness.
On her first ministerial tour as Secretary of State for Work and Pensions, Ms Kendall will also announce a more localised approach to upskill those out of work and tackle the root causes of unemployment.
The City is preparing for Labour government’s plans for water firms
Thames Water’s stark, but unsurprising, warning on Tuesday was clear: unless it can raise fresh equity in the coming months, its taps will literally run dry next May. Putting the water firms as top priority for the new government.
There is an element of scaremongering by Thames Water, who desperately need a government boost to allow them to update there infrastructure. However, labour must balance public perception with government bailouts. Especially, after Thames water paid £750,000 in annual bonuses to a trip of top executives last year.
Earlier yesterday, The Prime Minister has already committed spending more on defence and doing the same in the domestic markets would be unsustainable as this would encourage other firms to hold their hands out at a bail out.
South West Water pitching for a bail out
South East Water says it needs more cash from investors to stay afloat ahead of a ruling on its future spending plans by water regulator, Ofwat.
The water firm, which supplies about 2.3 million customers in Kent, Sussex, Surrey, Hampshire and Berkshire, said it was in discussions with lenders and shareholders in a results statement, external published on Wednesday.
It is already on watchdog Ofwat’s watch-list for financially-at-risk companies, alongside Thames Water.
