💼 People Are Going Back to Work

Top Stories

💼 Are people returning to the UK workforce?

The latest jobs survey from KPMG/REC showed early signs of an easing in UK labour market tightness, as availability of workers increased for the first time since February 2021. The increase in candidates was due to an “improvement in confidence” among job seekers, whilst (less encouragingly) an increase in redundancies also played a part. The report noted that although salary growth (a key measure for the BoE’s fight against inflation) remained historically high, this also eased in March. (Official)

📟 UK computer maker Raspberry Pi backed by Sony

The semiconductor unit of Japanese giant Sony strengthened ties with UK-based Raspberry Pi through a strategic investment. Raspberry Pi’s tiny computers were originally used mainly for educational purposes, but recently pivoted into the enterprise market (which now makes up 70% of revenue, according to CEO Eben Upton). The tie up with Sony is aimed at providing users with access to more advanced technology, including the ability to develop visual sensing applications using AI cameras. Upton hopes this will help kids understand computers “as they are today, rather than how they were 30 years ago”. The funding amount wasn’t disclosed, however it was confirmed the deal was struck at the same valuation as its 2021 funding round ($500m).

🏛️ BoE governor Andrew Bailey hinted at upping £85k deposit insurance

At a speech to the IMF on Wednesday, Bailey warned that modern technology and the speed at which consumers can withdraw funds might require a review of the current deposit limit, to reassure UK savers. The BoE governor was particularly concerned about smaller banks, who lacked the capital buffers of the larger, systemically important firms. However, a final decision (if it reached that point) would be made by the Treasury, rather than the BoE. Separately - Bailey also reiterated that the BoE would not divert from current interest rate hikes because of “financial instability”, but doesn’t think we’re facing a banking crisis.

What Else Happened?

Economics / Politics / General

Rightmove data showed the number of house sales recovered to within 1% of pre-pandemic levels, but still lagged March 2022 by nearly 20%; the estate agent also said the number of houses reduced from their original asking price rose over 50% compared to last year.

London “not a very attractive place” for a stock market listing according to Intercontinental Hotels CEO Keith Barr, who called on pension and insurance funds to return to UK markets.

Deals

Holland & Barrett’s owner is reportedly mulling a rescue bid for the brand and IP of troubled organic supermarket, Planet Organic.

Cognassist, a platform to help diagnose and support people with learning difficulties, raised £4m from Gresham House to fund expansion into the enterprise market.

Spotted Zebra, the London-based startup developing solutions to help companies close the skills gap, raised $1.8m in seed funding.

Company News / Trading Updates

Shares in listed energy infrastructure company Petrofac sunk 13.2% on Wednesday after warning profit would be lower than previously expected, following a review of its projects.

Banknote producer De La Rue slumped 19% as global demand for cash hit a 20-year low; the London-listed company warned profits would fall short of previous forecasts.

Cinema operator Everyman benefitted from a return to theatres as revenue jumped 60% to £79m in 2022, helped by a rise in ticket prices and spending on food and drink.

🌎 Global Snapshot

Minutes from the March FOMC showed Fed members expect the US economy to slip into a “mild” recession later this year, due to the effects of recent banking turmoil. This comes as US inflation fell to 5% in March, the slowest price increase since mid 2021.

Luxury group LVMH shares dipped slightly on Wednesday despite posting a better-than-expected Q1 performance, as growth in the US normalises.

Carlyle’s proposed deal for $15bn healthcare analytics company Cotiviti fell apart after the PE giant submitted a revised (lower) bid.

MD at JP Morgan? You’ll be working in the office 5 days a week from now on.

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