Market Loop - Spring Statement aftermath

View this email in your browser

25th March 2022

Bite-sized business news from the UK and beyond

Good morning It’s a story of foes becoming friends. In a surprising move yesterday, Uber announced that it would start listing New York yellow cabs on its app. The partnership represents a dramatic shift after years of hostility between cab drivers and the ride-sharing industry. But the deal will be beneficial for both sides. Uber is facing driver shortages and New York taxis have struggled to compete with ride-hailing apps.

Today's stories

Spring Statement aftermath
Apple buys UK credit scoring startup

ECONOMY
Spring statement aftermath

What’s going on?
The chancellor’s Spring Statement won’t do enough to protect low and middle income earners meaning 1.3m households will be pushed into poverty, according to analysis by the Resolution Foundation, an independent economic thinktank.

Why is this important?

The fallout from Wednesday’s Spring Statement continued as analysis of the government’s tax and spending plans revealed which groups in society would be better or worse off.

The Foundation’s report was aptly named ‘Inflation Nation’ as it predicts that 40-year-high consumer prices will undermine the UK’s economic recovery from the pandemic.

Real wages – which take into account the 9% forecast inflation - are predicted to fall 4% during this year. This along with the increased taxation from National Insurance increases, means that household incomes will stagnate in the years to come.

To put that into context by 2027, for the average household real wages will have grown by just £18 a week since the global financial crisis in 2008, compared to £240 a week if they had grown in line with the pre-financial crisis trend.

The Foundation said the £18bn worth of policies announced in the Spring Statement, like raising the National Insurance threshold and a 5p cut to fuel duty rates, were poorly targeted and won’t help those most in need.

Only a third of the support packages will go to the bottom half of the income distribution. Households in the top half will gain an average of £475, compared to just £136 for the poorest fifth of households.

Zooming out

The chancellor has defended his plans saying that he can’t solve every problem but believes that the policies will help the lowest income households.
But with uncertainties remaining over how the war in Ukraine will impact the global economy, especially energy prices, household finances could be squeezed even further which we will only add pressure on the government to help more.

Other stories to keep you in the loop

More sanctions: UK announces 65 new Russian sanctions
Gold crackdown: West restricts Russia's use of gold
Closing down: Lloyds Bank to close 60 more branches across UK
Streaming wars: YouTube adds 4,000 free TV shows to its service
Overboard: P&O Ferries boss admits firm broke law by sacking staff without consultation
High street headaches: Next trims profit target as Ukraine war and inflation cloud outlook
Unhealthy debt: Holland & Barrett struggles to pay interest on €415mn loan
Finish line in sight: Two favourite bidders emerge in race for Chelsea

FINTECH
Apple buys UK credit scoring startup

This week Apple announced that it acquired British fintech Credit Kudos for $150m in what could be its first step toward an attempted takeover of the international consumer credit market.

The three-year-old credit scoring app lets users assess their credit worthiness and also allows businesses to make more informed credit checks on loan applications by analysing banking data using technology called open banking.

First launched in 2018, open banking is a revolutionary technology that allows firms to securely access people’s bank accounts to extract information and make payments on their behalf, provided they get permission to do so.

Apple has been diversifying away from its core electronics business in recent years. It’s moved into banking products with the launch of Apple Pay mobile wallet and the Apple Card, a credit card the firm launched in partnership with Goldman Sachs in the US.

It’s not clear what Apple has planned for Credit Kudos but it could use the company's tech to enhance Apple Card's credit check process in the US. It could also serve as a stepping stone to Apple establishing itself as a provider of financial products in the UK.

Stat of the day

More than half of British adults don’t have a valid will, with this rising to 79% for under 35s

Interesting links from around the web

The latecomer’s guide to crypto
The three common reasons you always get spots in the same place
You’re getting old: Find out all the interesting things that have happened since you were born

Forward to Friend

Not a subscriber? Join free

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 (and break our hearts).

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

Market Loop - Spring Statement aftermath

Older messages

Spring statement in a nutshell

B&Q owner joins exclusive £1bn profit club

Backlash over P&O firings

📈Bank of England raises interest rates again

🔥Gulf states rebuffs British request to increase oil production

You Might Also Like

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

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

Founder Weekly - Issue 669

Building AI Agents the Easy way

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

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

When Video Matters And When It Shouldn't

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

VC climate-tech funding falls for 3rd year

🦅 We're rescheduling Jesse Pujji's masterclass