Brief Summary
This news segment covers a range of business and economic stories, starting with the UK's stubbornly high inflation rate and its implications. It then moves on to discuss data overload among business leaders, the luxury yacht market boom, cyber security threats, and the launch of autonomous electric vehicles in the UK.
- UK inflation remains high, impacting families.
- Business leaders are overwhelmed by data, leading to gut-based decisions.
- The luxury yacht market is booming.
- Cyber threats, particularly from Russia, are a growing concern.
- Autonomous electric vehicles are launching in the UK.
UK Inflation and Economic Analysis
The UK's inflation rate fell to 10.1% in March, but this was higher than the expected 9.85%. While lower petrol and diesel prices exerted downward pressure, food and drink prices rose by 19.1%, the fastest rate since August 1977, with bread and cereals seeing the fastest increase on record. Yale Selfish, Chief Economist at KPMG, noted that UK inflation is proving stickier than expected due to trade issues and labour shortages, making the Bank of England's job more difficult. While a stronger pound could help, further interest rate rises are anticipated, with core inflation remaining persistently strong at 6.2%. Central banks are in a tricky position due to turmoil in the banking sector, and while headline inflation is expected to decrease due to falling energy prices, embedded inflation expectations and wage demands could moderate this.
Data Overload and Decision Making
A global report by Oracle reveals that over a quarter of business leaders rely more on gut feeling than data due to being overwhelmed. British managers are more likely to regret decisions compared to their European peers. Siobhan Wilson, Senior Vice President at Oracle, explains that the sheer volume of data makes it difficult for leaders to make informed decisions, and many desire technology and AI to filter the right data for them. The right AI, embedded in applications, can provide the necessary data at the right time, helping leaders trust the data and make faster, more agile decisions in a changing business landscape.
Business News: Heineken, Glencore, Liontrust, CBI, and Asda
Heineken reported a drop in beer sales due to weaknesses in key markets, though trading was strong in other regions. Glencore is prepared to raise its offer for Tech Resources. Liontrust expects better-than-expected profits, driven by the acquisition of majidi Asset Management. Tony Danker, the sacked CBI director general, claims he has been made a scapegoat. Asda has launched a trial of autonomous grocery home shopping delivery in partnership with wave, using self-driving vehicles with a safety operator on board. Alex Kendall, CEO of waiver, explains that the trial aims to develop autonomous driving technology in complex environments, with routes determined by AI and a large catchment area in North West London.
Cyber Security Threats and Defence
Ministers are warning of ideologically motivated cyber attacks from Russian-aligned groups. The M Trends 2023 report indicates that cyber attacks are being detected more quickly, with global mean time detection dropping from 21 days in 2021 to 16 days in 2022. Stuart Mackenzie, head of mandian Consulting for EMEA, emphasises a holistic approach to cyber security, focusing on overall security posture rather than solely on Russia. He also highlights the risks posed by apt-42, the Islamic Revolutionary Guard Corps, and the need for nations to maintain strong cyber capabilities. Oliver Dowden announced the launch of gov ashore, a new cyber regime for the whole of government, and issued an official alert to operators of critical national infrastructure about the risk they currently face.
Global Markets and Investment Analysis
The pound has risen against the US dollar and the Euro following higher-than-expected inflation numbers. Equity markets showed a largely downbeat session in the Asia Pacific region and Europe. Victoria Scholar from interactive investor discusses Netflix's mixed results, Heineken's beer volume decline, and National Express's trading updates. Ashley Armstrong, the sun's business editor, discusses the government's scrapping of its Business Council and Rishi Sunak's efforts to reset relations with business, as well as the return of deal-making activity after a period of political and economic instability.
Luxury Yacht Market and British Marine
The luxury yacht market is booming, with global sales expected to grow significantly by the end of the decade. London luxury afloat, a boutique-style show at St Catherine docks, is showcasing luxury yachts. Leslie Robinson, chief executive of British Marine, notes strong sales and a pandemic effect driving new customers. The UK has a long tradition of boat building, and while some businesses are foreign-owned, the longevity of investment and production facilities is key. There are long waiting lists for new yachts, and a trend for bigger boats that are easier to crew.
Autonomous Electric Vehicles: Einride Launch in the UK
Einride, an autonomous truck maker, has launched in the United Kingdom in partnership with PepsiCo and Walkers. Robert Falk, CEO and co-founder of Einride, explains that the collaboration will involve shipping electric, addressing the 20% of UK CO2 emissions from heavy-weighted transport. Einride is a service provider, working with hardware manufacturers to provide digital, electric, and autonomous transport services. The company aims to scale its operations, electrifying 30-40% of heavy-duty freight transport, with potential for 50-60% in the next five years. A recent funding round gives them access to $500 million worth of capital for scaling and deployment.
