Below are our top 10 stories 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:
George Matthew claims that London doesn’t need tech ‘unicorns’ (businesses valued at $1bn or more), click here to find what he feels is required in London’s tech sector.
The Bank of England has one big reason not to surprise the markets with an interest rate hike. Click here to find out more.
Some analysts claim that George Osborne is supporting the wrong Asian emerging market. Click here for which country they believe Osborne should be more involved with.
A subtle change to the ministerial code happened last week. Click here to find out why some lawyers are so angry about it.
Britain’s credit rating could be downgraded by as much as two notches if we leave the EU. Click here to find out why.
1. UK ECONOMY GROWS BUT SLOWER THAN EXPECTED
The Office for National Statistics (ONS) said the economy grew 0.5 per cent between July and September, missing economists’ expectations for 0.6 per cent growth, and down from 0.7 per cent in the second quarter. Furthermore, construction output plummeted 2.2 per cent. The pound fell by 0.05 per cent to €1.3875 in response to the figures. (City A.M)
2. HOUSE OF LORDS BLOCK TAX CREDIT REFORMS
On Monday the House of Lords voted to block plans to introduce £4.4 billion of tax credit cuts. The bill was blocked based on fears that the move would leave the poorest families substantially worse off. On Tuesday David Cameron revealed he had appointed Lord Strathclyde to find ways to ensure that Members of Parliament had a “decisive role” in creating laws and would not be blocked by the Lords. The Lords have been criticized as peers do not have the right to block financial measures approved by the House of Commons. (RT)
For more on this issue and the tax credit changes in question click here.
3. ROYAL DUTCH SHELL LOSSES
Anglo-Dutch oil giant Royal Dutch Shell posted a third quarter loss of $7.4bn (£4.8bn). Their share price fell by almost 2% following the news. Shell is in the middle of a £47bn takeover of BG Group, having agreed a 50 per cent premium for the gas producer in April this year. The transaction is expected to complete in early 2016. The group is planning 6,500 job cuts ahead of the takeover.
It has been a tumultuous period for Shell. Shell had warned investors of a $2bn write-down for ending its plans for the Carmon Creek project in Canada, and last month confirmed it was backing out of its Arctic drilling project after nine years. (City A.M)
Despite the global oversupply and falling prices however, over in Russia, crude oil output is set to break a post-Soviet record for the fourth time this year. (Bloomberg)
4. CHINA ENDS ONE CHILD POLICY
China has decided to end its decades-long one-child policy, the state-run Xinhua news agency reports. The controversial policy was introduced nationally in 1979, to slow the population growth rate. It is estimated to have prevented about 400 million births but concerns about China’s ageing population led to pressure for change. (BBC News)
5. TALKTALK HACK
A 15 year-old boy in Northern Ireland arrested on suspicion of Computer Misuse Act offences in connection with recent cyber-attack on telecoms firm TalkTalk has been bailed. Share prices fell more than 11 per cent when news of the hack broke but rose 15% following news of the arrest last Tuesday only to fall again by close. (City A.M)
Despite this, TalkTalk claim the number of people affected by the hack is “significantly less” than originally suspected. (City A.M)
6. BT-EE DEAL
BT shares rose six per cent on Wednesday, after the telecoms giant was given a provisional thumbs up from the Competition and Markets Authority (CMA) on its £12.5bn bid to buy EE. (City A.M)
7. DYSON v BOSCH LEGAL DISPUTE
Dyson is facing legal action from rival Bosch over energy test allegations. Dyson said last week that it had issued proceedings against its competitor, alleging that they had misled consumers in “behaviour akin to the Volkswagen scandal”. Dyson’s independent testing had shown that machines made by Bosch could draw more than 1600 watts of power when used in the home despite having a rating of 750 watts. BSH Home Appliances, owned by Bosch, denied the allegations and on Wednesday announced it was initiating its own legal steps. (BBC News)
8. OFFSHORE WINDFARM PROJECT
Denmark’s Dong Energy announced plans to build the world’s biggest offshore windfarm in the Irish Sea off the UK coast. It will deliver electricity to 460,000 UK homes. (City A.M)
9. ALLERGAN PFIZER TALKS
Allergan has confirmed it is considering joining forces with Pfizer to create the world’s biggest drugs company. The news sent shares in Allergan, the smallest of the pair, rocketing when markets opened on Thursday. (City A.M)
10. 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%. The decision came as little surprise to the markets, although the Fed has previously signalled that rates are likely to rise within months. (BBC News)
Click here for Wall Street’s reaction to the decision.