Richard Branson disrupted the UK’s aviation sector in the 80s with transatlantic flights, now his company will soar higher, paving the way for the first ever space mission from European soil early in the new year. The UK’s space regulator approval for Virgin Orbit will turn Cornwall’s Newquay Airport into Britain’s very own space hub. “Newquay we have a problem” doesn’t have the same ring, does it?
(Bloomberg) — Richard Branson disrupted the UK’s aviation sector in the 80s with transatlantic flights, now his company will soar higher, paving the way for the first ever space mission from European soil early in the new year. The UK’s space regulator approval for Virgin Orbit will turn Cornwall’s Newquay Airport into Britain’s very own space hub. “Newquay we have a problem” doesn’t have the same ring, does it?
Here’s the key business news from London this morning:
In The City
UK Public Borrowing: Government borrowing surged in November as the public finances came under mounting pressure from rising debt-interest payments and the huge cost of subsidizing energy bills for consumers and businesses.
- The budget deficit stood at £22 billion –- the highest monthly total in records stretching back to 1993 and almost triple the £8.1 billion reading a year ago, according to the Office for National Statistics
Virgin Orbit: The satellite launching company has received its final remaining licenses from the UK space regulator, the Civil Aviation Authority, setting it up for its first launch.
- The first launch will take place at Spaceport Cornwall, which operates out of Cornwall Newquay Airport
Bunzl Plc: The consumer products distributer expects its adjusted earnings per share to be “moderately lower” than last year as a result of higher interest rates and an increased effective tax rate.
- The company expects group revenue in 2022 to increase by about 17% compared to last year, driven primarily by inflation and new acquisitions
In Westminster
Unions have made a final plea for Rishi Sunak to discuss higher pay settlements for NHS workers, as ambulance staff follow nurses by going on strike. Nurses said they’ll announce further strike dates for January by the end of this week unless talks take place over pay. Ministers have said they’re happy to discuss other factors affecting nurses’ morale, but not compensation.
Britain’s new “winter of discontent” doesn’t just mean inconvenience for businesses and households, the unrest will “further erode the country’s standing in the global economy,” according to Bloomberg Opinion.
In Case You Missed It
UK business confidence rose at the fastest rate in 20 months as labour market pressures showed signs of easing, the festive trading period exceeded expectations and businesses became more optimistic about the outlook for the economy. The findings mark a sharp contrast with other industry surveys and official statistics suggesting retail sales tumbled in recent weeks.
Britain’s house prices may tumble as much as 10% next year, according to a survey of economists and property-market forecasters.
Meanwhile, Atom Bank said its switch to a four-day working week would become permanent after a “transformative” year at the British lender, with a record number of new customers and fewer employees leaving.
Looking Ahead
Final UK GDP figures for the third quarter are due tomorrow morning. “Things will get worse before they get better in 2023 with GDP continuing to fall, taking the total peak-to-trough drop in GDP to about 1.5%,” say Bloomberg economists Dan Hanson and Ana Andrade. Both reckon that inflation has probably peaked, but stress the “journey to 2% will be a grind.”
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