In this round-up of the latest finance and investment news, we bring you highlights from January 2023, including analysis of the effects of Brexit, a guide to discovering ‘recession-proof’ real estate in the UK, and a look at the nationality most prone to splurging on luxury goods…
Brexit Impact on UK Economy: Three Years On
The pandemic and energy crisis have obscured the true impact of Brexit on the UK economy, according to this BBC report. Despite trade recovery with the EU, new rules have caused challenges for firms, and decreased trade with the rest of the world has made the country less prosperous. 71 trade deals have been signed, but only small expected boosts from Australia and New Zealand. Brexit-related uncertainty has led to stalled investment and a lower-earning economy, while changes in immigration have resulted in 330,000 fewer workers in key sectors.
UK Businesses Struggle Under Mounting Pressure
Supply chain pressures, inflation, and high energy prices are crippling companies unable to pay their debts, warns the Daily Telegraph. The number of firms opting voluntarily to be wound up reached its highest level since records began in 1960, and experts warn the “insolvency dam has burst.” The number of insolvencies peaked in the final three months of 2022, and smaller businesses are bearing the brunt of the crisis so far. However, bigger names are starting to be affected as well.
Swanky London properties are ‘recession-proof’
The Daily Telegraph also reports that Kensington and Chelsea is likely to be the area most protected from a projected 12% drop in house prices in 2023. The London borough tops the list ahead of Westminster, Camden, Swansea, and Oxford. Factors contributing to these neightbourhoods’ stability include a high level of homeowners without mortgages, low levels of mortgage debt, and limited first-time buyers.
No Love For Blobby
The winner of an eBay auction for the original Mr Blobby costume had a change of heart just an hour after bidding a whopping £62,000 for the notorious pink outfit, according to The Guardian. The former BBC employee who listed the item (which currently needs its arms reattaching) was shocked to see the price soar after the TV memorabilia attracted attention on social media. Despite being a commitment to buy, eBay has no legal power to enforce sales, leaving the seller to once again make room for Blobby in their wardrobe.
The Race For The Luxury Crown
The country that spends the most on luxury goods is (drumroll please)…South Korea! Analysts from Morgan Stanley (as reported here by Euronews) have found that Koreans spend on average €300 per head on high-end handbags, trainers and other items — with sales boosted by brand endorsements from K-pop stars.
