Below are our top 10 stories of the week that you need to know about. Be sure to check our twitter page for regular posts of important headlines. Click on the links for full stories
Opinion articles of the week:
- Researchers believe that the recent tube strikes were actually a good thing for Londoners and for the economy. Click here to find out more.
- Some analysts believe that a stronger dollar could be catastrophic for the global economy. Click here to find out why.
- The bubble of prosperity and optimism that surrounded emerging market economies, such as China, Brazil and India, has finally popped in recent months. Click here to find out why and what some believe the future holds for emerging markets.
1. U.S FED RATE
The U.S. Federal Reserve has announced its decision to keep interest rates at a target range of 0-0.25% . There have been mixed reactions from Wall Street. Some analysts believe it was an astute decision due to the recent global economic uncertainty cause by turmoil in emerging markets. Other analysts believe that the Federal Reserve are simply delaying the inevitable and create too much uncertainty by delaying a rate rise, to the detriment of the stock market. U.S Stocks fell on Thursday in response to the decision after fluctuating for some time during the day. For everything you need to know about the decision click here. (Bloomberg)
2. INFLATION FIGURES
UK inflation has fallen to 0% according to the Office for National Statistics. Inflation is measured by the Consumer Price Index (CPI), which illustrates the average rise in prices of everyday goods and services. The fall in inflation is largely due to falling oil prices and supermarket price wars. Despite this, many analysts believe that fuel and food prices are bound to rise in the near future which will lead to more ideal levels of inflation. This news however, raises substantial concern that we may face deflation in the near future. (BBC) If you’re unsure why deflation is so undesirable click here to find out more.
3. LABOUR SHADOW CABINET
On Monday Jeremy Corbyn revealed his cabinet. The notably left-wing John McDonell was appointed as shadow chancellor. Corbyn’s leadership election rival Andy Burnham was appointed as shadow home secretary. Hilary Benn retained his position as shadow foreign secretary. Corbyn has faced criticism over his selection because he failed to appoint any women to the most senior positions in the Labour front bench (BBC). He dismissed the criticism claiming that he has “a shadow cabinet, a majority of women, covering all areas of policy and public life.” (Evening Standard). For the full list of the Shadow Cabinet click here.
4. UNEMPLOYMENT & PAY FIGURES
The Office for National Statistics released a report on Wednesday showing that unemployment figures have fallen to 5.5% which is the lowest rate of unemployment since 2008. Pay has also risen to the fastest rate in 6 years. Pay excluding bonuses rose an annual 2.9% from June. (Bloomberg)
5. BREWING MEGA MERGER
The world’s largest brewer Anheuser-Busch InBev (AB InBev), has announced plans to acquire it’s rival SABMiller. If the deal is successful it would create a behemoth worth $275 billion, producing a third of the world’s beer. Analysts believe that AB InBev will pay between £40 and £45 per share if SABMiller agree to the merger. (Reuters)
6. AIRBUS U.S. EXPANSION
Airbus plans to set up a factory in Alabama to increase its presence in the U.S. aerospace market, challenging its main rival Boeing Co. . Airbus currently controls roughly 20% of the market but this move aims to give them a 40% market share. The factory will cost $600 million and will help Airbus to attain its target output of 50 planes per month by 2017. (Bloomberg)
7. KELLOGG CO WEST AFRICAN INVESTMENT
Kellogg Co, the world’s largest cereal maker is setting up a joint venture with the African arm of Singapore’s Tolaram Group. Kellogg will pay $450 million for a 50 percent stake in Tolaram’s Nigeria-based ‘Multipro’, a food sales and distribution company, with an option to buy a stake in Tolaram’s African unit. Kellogg hopes that this deal will significantly develop its presence in the breakfast and snack food market in West Africa. (Business Insider)
8. WORLDPAY IPO
Payments processing company Worldpay announced its plans to raise £890 million through a float on the London Stock Exchange in October. (City A.M.) This comes in the same week as its French rival Ingenico made a £6.6 billion cash bid to acquire to the company. It was initially thought that this bid would persuade Worldpay to abort their IPO plans. (Sky News)
9. HP JOB CUTS
Hewlett Packard (HP) announced its plans to cut up to 30,000 jobs or up to 10% of its workforce. It plans to restructure, separating the Hewlett Packard Enterprise (HPE), from the printer and PC business. The company says the cuts will save $2.7bn (£1.76bn) in annual costs, although the plan itself will cost $2.7bn to carry out. (BBC)
10. KIT-KAT TRADEMARK DISPUTE
Confectionery giant Nestle failed to convince European judges that it has the right to trademark the shape of its four-finger KitKat bar in the UK. Cadbury have been fighting to prevent Nestle obtaining the trademark. The case will now return to the UK High Court for a final decision. (BBC)