Brexit 'means economy faces 50/50 recession chance'
Image copyright Reuters The UK has a 50/50 chance of falling into recession within the next 18 months following the Brexit vote, says a leading economic forecaster. The National Institute of Economic and Social Research (NIESR) says the country will go through a "marked economic slowdown" this year and next. It says inflation will also pick up, rising to 3% by the end of next year. "This is the short-term economic consequence of the vote to leave the EU", said Simon Kirby of the NIESR. Overall the institute forecasts that the UK economy will probably grow by 1.7% this year but will expand by just 1% in 2017. This would see the UK avoid a technical recession, typically defined as two consecutive quarters of economic contraction. Mr Kirby argued that the June referendum vote had led to such financial and political uncertainty that this would bear directly on the spending and investment decisions of both businesses and households. Now, the culprit is the uncertainty following June's Brexit vote.
Rising costs pile on the agony for Britain’s fashion retailers | Fashion
From culottes to “cold shoulder” tops and woven loafers last seen in Miami Vice, many Britons have struggled with this summer’s fashions, but now there is an even more unpalatable trend on the horizon – in the shape of higher prices. The devaluation of sterling following the June Brexit vote has had major ramifications for store chiefs who pay in dollars for large quantities of imported goods. The first indication of where prices could be heading came last week from Next, one of the UK’s biggest clothing retailers, which pencilled in increases of up to 5% in 2017. “We have always taken the view that if our costs go up, our selling prices will go up,” said Next chief executive Lord Wolfson. But fashion retailers are already struggling to persuade shoppers to part with their cash as weak wage growth is compounded by a cyclical shift towards spending on eating out and other leisure activities. Kantar analyst Glen Tooke says its most recent reading shows the decline deepening.
Top 5 Global Cities To Live And Do Business In 2016
Article provided by Bayut.com When it comes to living in a foreign city, one has to consider the population, infrastructure, overall size, political context, per capita income and development path. The city’s economic growth, real estate developments and entertainment facilities also play a vital role in making decisions towards moving to a city or investing in it. Each of the cities listed below features trophy developments along with impressive mixed-use communities and have good room for growth, which is achievable through improvements in transparency, livability and business environment. 5. Being the world’s sixth most globalized city, Shanghai could become your best bet for investment in East Asia. Between 2015 and 2030, disposable incomes in Shanghai are expected to rise by over US $350 billion – more than London’s and Tokyo’s – and consumer spending may increase by more than US $250 billion. 4. 3. The city has one of the best planned and developed residential environments. 2. 1.
Retailers challenge national living wage
Don-Alvin Adegeest London - While the government has thus far been successful in its policy to increase the UK's national living age, some businesses and retailers are keen for the policy, set to come into full affect by 2020, to be revised or abandoned. According to the Financial Times, 16 trade associations are challenging the policy, having written to new business secretary Greg Clark recommending he “exercise caution” on the national living wage in light of the “economic uncertainties the country faces” after the Brexit vote. The national living wage is one of George Osborne's legacy policies, to ensure over 25 year-olds earn a median income, which by 2020 would be just over 9 pounds per hour. The wage was increased as of April 1st this year to 7.20 per hour. Fashion chains, supermarkets and the hospitality sector are expecting to have to raise wages. The increase in wages will mean the minimum wage for over 25 year-olds will be the highest in the developed world and G7.
Fashion's Richest: Top 10 Wealthiest Moguls in H1 2016
It is no secret that fashion sells. The global fashion industry is currently valued at an astounding 3 trillion US dollars, according to FashionUnited's global statistics page, making it one of the most valued sectors in the world. The only thing which sells more than fashion, is "fast fashion", which sells in enormous, unimaginable quantities. Unsurprisingly, it is fashion moguls and entrepreneurs which now make up a large slice of the world's richest list. FashionUnited previously examined the value and assets of the industry's wealthiest billionaires and millionaires at the end of 2015. In this updated list, we take a look at what has changed over the past six months and who the top 10 richest people in the global fashion industry are now. FashionUnited's Top 10 Richest Fashion Entrepreneurs in H1 2016 One of the most remarkable changes noticeable between the two lists is that nearly every individual listed saw their overall net worth decline during the first half of 2016.
Britain Now World's Cheapest Luxury Market | News & Analysis | BoF
LONDON, United Kingdom — In the wake of Britain's vote to leave the EU, which pushed down the value of the pound about 10 percent against the euro, the country has become the cheapest luxury goods market in the world, helping to buoy British luxury labels, at least in the short term, according to new research by Luca Solca, the head of luxury goods at Exane BNP Paribas. "The Brexit vote has made the UK the cheapest market in the world for luxury goods,” Solca told BoF. “A weak British pound will boost travel inflows to the UK, helping British luxury goods players like Burberry, Mulberry and Jimmy Choo." While luxury goods companies are not expected to raise prices in the UK in the coming months — at least until there is more clarity around exactly when and how the country might exit the EU — Britain should see a boost from tourist inflows and spending due to its weakened currency.
