Market Loop - Government interest payments soar

View this email in your browser
24th June 2022

Bite-sized business news from the UK and beyond
Good morning Five years ago Twitter shook up its proposition by doubling the character count from 140 to 280 and now it's ready for its next shake up. The social media giant announced that it's testing a new feature that allows users to share "notes" as long as 2,500 words. The test will run for two months and involve a small group of writers in Canada, Ghana, the UK and US.
Today's stories
  • Government interest payments soar
  • London payment startup raises £500m
ECONOMY
Government interest payments soar


What happened?
Last month the government interest payments on public debt jumped after inflation pushed borrowing costs to some of their highest levels on record. 

The rising cost of living isn’t a problem just for households
The government paid £7.6bn in interest costs alone in May - a 70% increase compared to the year before – driven by the rapid rise in inflation. Interest paid on 25% of government debt is linked to the Retail Prices Index measure of inflation, which hit almost 12% in May.

The interest payments were the third-highest ever made by the government, and the highest payment made in May.

Despite the rise in interest, overall government borrowing actually fell by £4bn to £14bn compared to last year when pandemic-related restrictions were still in place.

Looking ahead public finances are set for more debt
The government has been forced to increase spending and borrowing in response to the cost of living crisis. An extra £14bn is being spent on supporting low income households with their bills in the second half of the year.

The government spending watchdog, the OBR, forecasts that debt interest payments will cost the UK £87.2bn over the year to March 2023 as the impact of sky-high inflation filters through the economy.
Other stories to keep you in the loop
  • British Airways workers at Heathrow vote to strike during school summer holidays
  • Brits paid billions more in taxes over the last year as HMRC ramped up tax collection 
  • Harrods delays summer discount sale due to global supply chain issues
  • Nike latest brand to leave Russia permanently
  • Naked Wines shares tumble on weak outlook warning
  • US bans Juul e-cigarettes blaming them for youth vaping epidemic
FINTECH
London payment startup raises £500m  


What happened?
Yesterday British fintech firm Sumup announced it had raised £507m giving it a valuation of just under £7bn - reportedly less than half the target it had hoped to reach in January.

Founded in 2012, SumUp offers physical card readers and manages payments in online stores. It caters to small businesses and has over 4m customers in 35 countries. 

The new funds will be used enter new markets and launch new products.

The funding round comes against a backdrop of falling tech valuations in the public and private markets
Global tech stocks have dropped 25% this year and buy now pay later giant Klarna, and Europe’s most valuable private company, is reportedly trying to raise money at half its peak $46bn valuation.

Investors have been rattled by the prospect of a slowing world economy caused by rising inflation and a cost of living crisis.
Stat of the day

A Russian journalist auctioned off his 2021 Nobel Peace Prize for $103.5m to help victims of the war in Ukraine
Interesting links from around the web
Forward to Friend Forward to Friend
Not a subscriber? Join free
Twitter
Sent this by a friend? Sign up here
How did you like today's email?
Get in touch with any feedback or even just to say hi
hello@marketloop.co

Copyright © 2022 Market Loop, All rights reserved.

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.
 






This email was sent to you
why did I get this?    unsubscribe from this list    update subscription preferences
Market Loop · 16 Great Chapel St · London, London W1F 8FL · United Kingdom

Email Marketing Powered by Mailchimp

Older messages

Brexit made UK less competitive and open, new study claims

Thursday, June 23, 2022

.... and Kellogg plans three way split View this email in your browser 23rd June 2022 Bite-sized business news from the UK and beyond Good morning Glastonbury kicked off yesterday for the first time in

Ocado taps market for £575m fundraise

Wednesday, June 22, 2022

.... and EY partners set for huge break-up payday View this email in your browser 22nd June 2022 Bite-sized business news from the UK and beyond Good morning Amid all this market chaos, we know you

Gov tightens buy now pay later rules

Tuesday, June 21, 2022

.... and Primark dips toe into online retail View this email in your browser 21st June 2022 Bite-sized business news from the UK and beyond Good morning You may have heard that Kate Bush has stormed

Tesco customers feeling squeezed and buying less

Monday, June 20, 2022

.... and Revlon files for bankruptcy after 90 years in business View this email in your browser 20th June 2022 Bite-sized business news from the UK and beyond Good morning Anyone travelling by rail

Interest rates rise to 13 year high

Friday, June 17, 2022

.... and Rising customer returns sink Asos profits View this email in your browser 17th June 2022 Bite-sized business news from the UK and beyond Good morning If you own an older iPhone then you could

You Might Also Like

How This "1 PAGE" Website Makes $21,000/Month!

Wednesday, January 15, 2025

I just uncovered a website that is just a single page, and get this...it's making over $21000/month! In my video today, I'm going to reveal this website, how its getting traffic, and how its

$1,654 in DAILY sales 😮 (Beta-Tester results + NEW system)

Wednesday, January 15, 2025

This needs to be seen to be believed View in browser ClickBank Hey there, This coming Sunday, I highly recommend attending this private event because you'll be shown something brand new. Here's

Founder Weekly - Issue 669

Wednesday, January 15, 2025

January 15, 2025 | Read Online Founder Weekly (Issue 669 January 15 2025) In partnership with Where tier-one VCs get their news 📰 Get smarter about venture capital. 5x / week <5 minutes / day 15000

Building AI Agents the Easy way

Wednesday, January 15, 2025

Today's Guide to the Marketing Jungle from Social Media Examiner... Presented by social-media-marketing-world-logo It's National Bagel Day, Reader! Do you like yours sweet, savory, or plain? In

Are you a Chaos Coordinator? It's one of the top gifts on Amazon

Wednesday, January 15, 2025

Trending Products on Amazon This Week For the week of Monday, January 13 to Sunday, January 19 Welcome to this week's edition of the hottest trending keywords and products on Amazon over the last

The Market Is Pushing Asset Prices After Inflation Report — But Should It Be?

Wednesday, January 15, 2025

Listen now (2 mins) | To investors, ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

When Video Matters And When It Shouldn't

Wednesday, January 15, 2025

Humans, it seems, like to be all or nothing on things. It's a Twitter-killer or a Google-killer. Not here's another way to access content or do things. It's all or nothing. And that's

😎Wake up, babe. State of Marketing just dropped.

Wednesday, January 15, 2025

Data and insights from 1.4k marketers globally View in browser hey-Jul-17-2024-03-58-50-7396-PM The webcomic XKCD once estimated that, on average, there are 10000 people hearing about something “

VC climate-tech funding falls for 3rd year

Wednesday, January 15, 2025

PE's comeback hits a speed bump; meet Europe's new crypto unicorn; Macquarie inks $5B data center partnership Read online | Don't want to receive these emails? Manage your subscription. Log

🦅 We're rescheduling Jesse Pujji's masterclass

Wednesday, January 15, 2025

It will be in March ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏