Encipia: The Mechanics of Business

June 17, 2020

Covid conundrum: interact, produce, consume, or infect

There are early signs to suggest that a coronavirus and a steam engine have enough in common to provide a useful perspective for our economic…

Maxwell’s Brexit: A case of intangible destruction

Maxwell’s Consumer: seeking a sustainable world

Maxwell’s Entrepreneur: finding the edge

Analysis: Amazon and the power of capital

Analysis: an Apple that just keeps on rising

‘Consumptivity’: the heartbeat of a modern economy

The Labour Theory of Value

Economies on the move – but to where?

April 28, 2017

Tracing the path of an energy dissipative UK economy

Today saw the publication of the latest GDP figures for the UK economy. It grew 0.3 per cent over the first quarter of 2017, according…

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Enquiry over £150m of worthless facemasks
The National Audit Office is to investigate government contracts for protective equipment awarded at the height of the pandemic amid an outcry over the decision to spend more than £150 million on unusable facemasks. The Times revealed yesterday that about 50 million masks bought without a tender process from Ayanda Capital, a London-based investment company with no experience of government contracts, had been deemed unusable for frontline healthcare workers. The government has admitted during legal proceedings that concerns about the safety of the masks meant that they could not be used under current NHS requirements. It has now emerged that the NAO is to launch an investigation into PPE contracts after Labour demanded an inquiry. The Times, August 7

Pressure on Rishi Sunak to extend furlough
Rishi Sunak, the UK chancellor, will on Friday come under renewed pressure to avert a wave of autumn job losses, after the Bank of England warned unemployment would remain high and output below pre-pandemic levels until at least the end of next year. Mr Sunak, who is visiting Scotland, will face demands from the Scottish National party to extend until 2021 the furlough scheme that has supported 9.5m jobs, with Ian Blackford, SNP leader in Westminster, warning it would be a “grave mistake” to end the programme in October. The chancellor admitted there was “hardship ahead for many people” as the recession bites, but said “most reasonable people” would understand his decision to end his job furlough scheme in October. Financial Times, August 7

UK govt pledges £355m to cushion NI businesses
The UK government has announced a £355m package to cushion Northern Ireland businesses from the costs of trading with the rest of the UK because of Brexit. Michael Gove, the Cabinet Office minister, said on Friday that £200m would be spent on a trader support service to help firms handle new bureaucracy to move goods across the Irish Sea, turning the government into a de facto customs agent for traders. A further £155m will be spent on digital technology to streamline processes required by the new internal border created by the Northern Irish protocol, part of the Brexit deal that aligns the region to the UK customs territory and the EU customs code. It means all businesses sending goods to the region from Great Britain will have to make formal declarations for the first time. First details of the new trading conditions across the Irish Sea emerged last month, with businesses obliged to complete customs, security and transit forms on all goods being transported to Northern Ireland. The Guardian, August 7

Anger rises as BA cuts start to bite
Thousands of long-serving cabin crew at British Airways are expected to find out on Friday whether or not they will be made redundant. Many of those who remain will suffer steep pay cuts, and significant changes to their terms and conditions. Other workers such as engineers, ground crew and office staff are also expected to hear whether they have a future at the airline over the coming days. British Airways says more than 6,000 staff across the business have applied for voluntary redundancy. The airline has begun culling employee positions as part of a major cost-cutting drive, which it insists is vital to ensure its long-term survival. But the way in which it has done so has provoked deep resentment among a large proportion of its workforce – and threats of industrial action. BBC news, August 7

Trump gives US groups 45 days to stop dealing with TikTok and WeChat
Donald Trump has given US companies 45 days to stop dealing with ByteDance, the Chinese owner of TikTok, and WeChat, the messaging platform owned by Tencent, as he stepped up a campaign to clamp down on apps that he described as a threat to economic and national security. Mr Trump issued two executive orders decreeing US businesses would no longer be able to work with the Chinese groups after the grace period. The move came as Microsoft negotiates to buy TikTok, a popular short-video app, ahead of a September 15 deadline set by Mr Trump. One US official said the 45-day window would “give Microsoft and other interested purchasers time to reach a deal with TikTok’s owners that adequately addresses the national security concerns posed by the app” … Earlier on Thursday, the Trump administration issued recommendations that Chinese firms listed on US stock exchanges be delisted unless they provided US regulators with access to their audited accounts. Financial Times, August 7

Facebook founder sees wealth hit $100bn after TikTok rival launch
Facebook founder Mark Zuckerberg has seen his personal wealth rise to $100bn (£76bn) after the launch of a new short-form video feature. On Wednesday, Facebook announced the US rollout of Instagram Reels, its rival to controversial Chinese app TikTok. Facebook shares rose by more than 6 per cent on Thursday. Mr Zuckerberg holds a 13 per cent stake in the company. He joins Amazon founder Jeff Bezos and Microsoft’s Bill Gates in the exclusive so-called ‘Centibillionaire Club’. Technology bosses have been in the spotlight recently as the size and power of their companies and their personal fortunes continue to grow. Facebook, Amazon, Apple and Google have been among the biggest benefactors of coronavirus lockdowns and restrictions as more people shop, watch entertainment and socialise online. Mr Zuckerberg’s personal wealth has gained about $22bn this year, while Mr Bezos’s has grown by more than $75bn, according to Bloomberg. BBC news, August 7

More appeals allowed against A-level grades
Thousands more pupils could get the right of appeal over their A-level grades next week after a key concession by the exam regulator. Schools will have greater scope to challenge results on behalf of entire year groups after the move by Ofqual. Exams were cancelled this year and teachers had to provide grades for each child and put them in ranked order within the class. These grades could be changed by exam boards according to the school’s previous performance. For example, if a teacher gave large numbers of pupils an A* in English but no pupil had reached better than a C grade in previous years they could be marked down. Previously, the only way a grade could be challenged this year was on a technical ground such as the wrong personal information being submitted. Now schools that have made rapid improvements, or have outstanding year groups, can appeal. Pupils cannot challenge grades themselves. The Times, August 7

Johnson to slash red tape in planning revolution
Boris Johnson is to limit the power of local politicians to block building developments in the biggest reform of the planning system for 70 years. The proposals, to be published today, aim to trigger a construction boom that would swiftly provide homes, hospitals and schools. The prime minister has promised to rejuvenate the economy with a “build, build, build” strategy. Councils are to be given up to three and half years to designate areas for growth, renewal or protection. Once agreed, however, local politicians will have little or no say over specific applications that fit the rules. Ministers insist that residents will be consulted over how land is designated and on “design codes” to ensure that new buildings fit in. They are braced, however, for opposition from councils, especially Tory-controlled local authorities. Requirements for developers to provide affordable housing are to be relaxed. The Times, August 6

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