Introduction: Transforming business reliability
Good morning and welcome to rolling coverage of our business, financial markets and the world economy.
Trust among UK small businesses has fallen over as bosses worry about economic health, tax burdens and wage increases.
Small Business Index (SBI) calculated by federation of small work It shows optimism was hampered at the end of last year.
SBI In the October-December quarter, it scored the lowest recorded points outside the Covid-19 pandemic, dropping from -24.4 points in the third quarter to -64.5 points in the fourth quarter.
This survey covers the period of time that Rachel Reeves' budget was waiting for at the end of October.
The FSB reports that accommodation and foodservice are the most unoptimized key sectors, followed by the wholesale and retail sectors. Construction reduced the biggest confidence between the third and fourth quarters, from -26.6 points to -76.8 points.
Tina Mackenzie, FSB The policy chair says SMEs are worried:
“Small businesses reported fourth quarter blues highlight the urgent need for government growth to drive.
“With 2025 ongoing, small businesses are obvious about the outlook.
“The upcoming employment rights bill is a major source of stress for small and medium-sized businesses, with nine of the 10 business owners saying they are concerned about its implementation, which is undoubtedly seen in our study. It is the main cause of a very calm level of trust.
Another survey from the Human Resources and Development Institute (CIPD) chartered this morning is also a rigorous reading. It turns out that UK employers are preparing for the biggest redundancy round of a decade. These budget tax increases have been criticized.
A CIPD survey conducted later in January found that most employers cited an increase in employers' national insurance contributions and a 6.7% increase in “national living wages.”
Agenda
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Xi spoke at a symposium attended by business leaders including Huawei founder Ren Zhengfei, Xiaomi’s Lei Jun, BYD’s Wang Chuanfu, Unitree’s Wang Xingxing, and CATL’s Robin Zeng.
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And intriguingly, Alibaba co-founder Jack Ma was also there, state media reported. Ma has been keeping a low profile since Xi’s government forced Alibaba to drop the stock market floatation of its Ant Group, after Ma made a speech criticising Chinese regulators.
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That spat was the start of a campaign to tighten state control over private companies in the world’s second-largest economy.
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Today’s meeting may be a sign that Xi’s administration are gearing up to work more closely with China’s major companies as it tries to cushion the economy from the impact of a trade war with the US.
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Christopher Beddor, deputy China research director at Gavekal Dragonomics in Hong Kong, has said:
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“It’s a tacit acknowledgement that the Chinese government needs private-sector firms for its tech rivalry with the US.
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“The government has no choice but to support them if it wants to compete with the U.S.”
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Good morning, and welcome to our rolling coverage of business, the financial markets, and the world economy.
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Confidence among UK small businesses has tumbled as bosses fret about the health of the economy, the tax burden and rising wages.
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The Small Business Index (SBI) calculated by the Federation of Small Business shows that optimism slumped at the end of last year.
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The SBI hit its lowest recorded point outside the Covid-19 pandemic in the October-December quarter, dropping from -24.4 points in Q3 to -64.5 points in Q4.
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The survey covers the period when companies were awaiting, and then digesting, Rachel Reeves’s budget at the end of October which included increases to employers national insurance contributions.
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The FSB reports that accommodation and food services was the least optimistic major sector, followed by the wholesale and retail sector. Construction saw the largest decline in confidence between Q3 and Q4, going from -26.6 points to -76.8 points.
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Tina McKenzie, FSB’s policy chair, says small businesses ae worried:
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“The fourth quarter blues reported by small firms underline how urgently the Government’s growth push is needed.
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“Small firms are understandably nervous about their prospects as 2025 gets underway.
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“The upcoming Employment Rights Bill is a major source of stress for small firms, with nine in ten business owners saying they are concerned about its introduction, and this is undoubtedly a major cause of the very subdued confidence levels seen in our research.
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A separate survey this morning, from the Chartered Institute of Personnel and Development (CIPD), is also grim reading. It found that UK employers are preparing for the biggest redundancy round in a decade – with those budget tax rises being blamed.
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The CIPD survey, which was carried out in the second half of January, found that most employers cited the rise in employer national insurance contributions and a 6.7% increase in the “national living wage”.
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The agenda
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10am GMT: Eurozone trade data for December
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11am GMT: Israel’s Q4 2024 GDP report
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Important Events
Jack Mars The presence at today's meeting with XI suggests that the authorities are ultimately overcoming the crackdown on Alibaba Angela huyue ChanLaw professor of , University of South California.
She told CNN:
“As the domestic economy slows and geopolitical pressures grow, the government is making clear that it relies on the private sector to promote innovation and stimulate growth. ”
China's XI holds rare meetings with business leaders
In Beijing, Chinese President Xi Jinping held an unusual meeting with some of the country's top business leaders.
xi He spoke at a symposium attended by business leaders including Huawei Founder Ren Zhengfei, Xiaomi's Ray June, Bido king Chuanhu, Unitree's king xingxingand catl's Robin Zeng.
And, interestingly, Alibaba Co-founder Jack Ma The state media also reported it. Ma Since then it has become less noticeable xi's The government was forced Alibaba Remove stock market floating Ali groupafter Ma He gave a speech criticizing Chinese regulators.
That spat was the launch of a campaign to strengthen state control over private companies, the world's second largest economy.
Today's meeting may be a sign xi's The administration is striving to work closer together with large Chinese companies to ease the economy from the effects of the US trade war.
Christopher beddorAssociate China Research Director I gave it Dragononomics In Hong Kong,
“It is an implicit recognition that the Chinese government needs private companies for technical competition with the US.
“The government has no choice but to support them if they want to compete with the US.”
Introduction: Transforming business reliability
Good morning and welcome to rolling coverage of our business, financial markets and the world economy.
Trust among UK small businesses has fallen over as bosses worry about economic health, tax burdens and wage increases.
Small Business Index (SBI) calculated by federation of small work It shows optimism was hampered at the end of last year.
SBI In the October-December quarter, it scored the lowest recorded points outside the Covid-19 pandemic, dropping from -24.4 points in the third quarter to -64.5 points in the fourth quarter.
This survey covers the period of time that Rachel Reeves' budget was waiting for at the end of October.
The FSB reports that accommodation and foodservice are the most unoptimized key sectors, followed by the wholesale and retail sectors. Construction reduced the biggest confidence between the third and fourth quarters, from -26.6 points to -76.8 points.
Tina Mackenzie, FSB The policy chair says SMEs are worried:
“Small businesses reported fourth quarter blues highlight the urgent need for government growth to drive.
“With 2025 ongoing, small businesses are obvious about the outlook.
“The upcoming employment rights bill is a major source of stress for small and medium-sized businesses, with nine of the 10 business owners saying they are concerned about its implementation, which is undoubtedly seen in our study. It is the main cause of a very calm level of trust.
Another survey from the Human Resources and Development Institute (CIPD) chartered this morning is also a rigorous reading. It turns out that UK employers are preparing for the biggest redundancy round of a decade. These budget tax increases have been criticized.
A CIPD survey conducted later in January found that most employers cited an increase in employers' national insurance contributions and a 6.7% increase in “national living wages.”
