Predicting The Business Landscape for 2016

2015 has been the year of the entrepreneur with new business models and start-ups constantly popping up. This is due, in part, to innovative use of technology, social media and extremely low-interest rates. 2015 indeed, is a great time to start a business. However, as 2015 is coming to a close you may wonder what the future holds for 2016. 

What technology trends will create unique new business opportunities and change the worldwide business landscape for better or worse. Although we cannot predict the future, we’re going to share with you my predictions for three important changes that should be taken into account before setting up a business in the new year. 

3-D Printing

3D printing makes it possible to create an object simply by creating a digital file through computer aided design (CAD). The software then sends it to the 3D printer where the image is split into 2-dimensional representations, these are then fed through the printer that builds the object layer by layer. A rise in popularity in 3-D printing has the potential to totally revolutionize the global business landscape. Basically, 3-D printing means that anyone anywhere in the world can produce an object they want or need pretty much on demand.

Global shipments of 3D printers were forecasted to grow an astonishing 98% by the end of 2015. In 2016, these sales are expected to double. Over the next several years, it is expected that the price of 3-D printers will decline while means of use will continue to expand. 

Big Data

For the most part, Big Data has mainly been used by larger organisations in order to get a grasp of consumer behaviour. However, this is changing, relatively quickly in fact. Digital marketers and many start-ups collect distinct information about customers, then this data is used to improve their strategy. All the while collection strategy and analysis techniques are improving so many organisations are becoming better at collecting and analysing data.

In the past, companies had so much data they actually struggled to mine it for the useful information. Now, enhanced analytics means that big data is a completely different ballgame. Big data is helping organisations meet their goals and objectives. It’s being used to help retailers predict their customer's future purchases, for pre-targeting in advertising which generates additional traffic and incremental sales by targeting new customers. This only scratches the surface of how increasingly crucial and useful big data is becoming. 

Smartphone Resale Market

Smartphones are expensive. Yet consumers want their hands on new smartphones with exclusive features, without having to pay the large retail price. This has generated vast business opportunities. This is breathing new life in the mobile phone resale market, especially in markets emerging throughout South-east Asia and China. Additionally, businesses that offer services to help users unlock their iPhone iCloud accounts on second-hand phones are becoming increasingly popular. As the smartphone resale market continues to expand, business opportunities like this will continue to emerge.

What These Changes Mean

It is vital to understand how the business landscape is changing if you are an entrepreneur. Developing an understanding of new technology trends and adopting them before others are key to maximizing your potential earnings, whether you’re trying to figure out uses for big data or are planning to involve 3-D printing in your prototyping process.

Celebrating In The Workplace

Many leaders struggle when faced with a celebration in the workplace, and can be left wondering whether they should or not. The argument arises “why should we celebrate, people are already aware that we are succeeding” after yet another milestone has passed. The best answer is to get an equal balance between celebrating when necessary and not overdoing it. However, more than often celebrating when reaching a goal is forgotten about.

In procurement we regularly talk about how to maximise the effectiveness of your workforce, and this can be done through recognising and rewarding achievements.

Why should we celebrate progress?

There are two clear reasons for celebrating progress and this is to reinforce focus and momentum within your employees. During long and tedious projects, focus can get lost as employees concentrate on reaching an end goal. Employees can become engrossed and can easily miss the progress that they have made. It is very important for leaders to help employees to recognise the progress and rejuvenate their focus and team momentum.

 

How should you do it?

We have identified 7 simple components that will help you when considering and executing a workplace celebration.

1. Base it on milestones.

In order to justify a celebration, you must understand the progress that has been made. Having a completed project plan will be an excellent reference, allowing you to see the milestones that were set and when they were achieved.

2. Get the team involved.

Inform the entire team when a celebration is due and allow them to get involved in the process, from organising when and where its taking place, to selecting a gift. Giving this responsibility to participants who may not have had a direct involvement in the achievement will let them feel meaningful.

3. Don't be shy.

Don’t celebrate half heartedly. Let your employees know how much you appreciate their hard work, commitment and overall progress.

4. Keep the celebration in perspective.

The purpose for the celebration should be clearly outlined. This is not an opportunity to celebrate everyone and everything. Make the individuals involved feel special.

5. Be authentic.

There is little point in holding a celebration if you are unable to give them a genuine congratulations. If you are not feeling it, hold back on doing the celebration. Authenticity is vital.  

6. Make it an event.

It doesn't have to big or extravagant, but it does need to be an event. Spread the word around the office so everyone knows when it is.

7. Consider gifts/rewards  

A gift can be a great surprise to add to any celebration. Why not consider a personalised card, vouchers or something else? This also relies on your office's existing gift-giving culture. Remember that the gift should be appropriate for the specific achievement.

We hope that these suggestions will aid you in your celebration decision-making. When used effectively, celebrations can increase employee motivation, productivity and overall morale.

Is technology the answer to better productivity?

With Britain's economy and employment levels growing much faster than other countries, productivity remains a key topic for improvement for businesses far and wide.   In a recent statement George Osborne expressed the importance of cracking the UK’s productivity puzzle in order to secure future prosperity.  Research has shown that the global financial crisis has had a negative effect on UK productivity levels. While this crisis is gradually improving, we cannot assume that our productivity levels will too.

Statistics show that even though the French shut down business during the summer holidays, they still produce more than the UK who work all year round.  A 2013 Government study provides additional support for this statement, revealing that French workers are operating at a 27% higher productivity rate per hour than UK workers.  This percentage is even higher when compared against Germany and America too.

However the ongoing investment and advancement in technology offers a promising opportunity for the productivity of the UK workforce. For example, the UK’s manufacturing sector has benefited from such technologies, allowing for them to produce 50% more than in 2009. Technology can be hugely advantageous for businesses and start-ups,  helping to reduce costs, provide access to new markets and enhance customer service. Globalisation has meant that local businesses can now be accessed worldwide, thanks to technology. This digital marketplace opens many doors for businesses, enabling them to sell their products nationally and even internationally.

Although there are a growing amount of success stories of businesses breaking into international markets, this is still not mirrored throughout the UK. Larger businesses think investing in IT and new digital innovations will guarantee them better business, but this is not the case. Businesses need to be more efficient when it comes to optimising these technologies in order to reap the rewards. The mixture of creativity, the right channels and data usage can create future opportunities.

The importance of an effective online presence is also crucial for businesses. However it is shocking to see that less than 30% of UK business have an effective online presence. Cloud-based computer file storage and sharing abilities now allow teams to collaborate across locations, providing much more flexibility. However the majority of businesses and employees understand the importance of the digital marketplace but are merely lacking the skills to take full advantage of these technological advancements.

The Government's Digital Transformation Plan is the strategy we need to transform productivity. The extra focus on the role of digital technologies will be beneficial for the UK economy and help to drive productivity. If executed effectively the potential rewards for the UK are massive.  Future investments in IT systems and training is essential for the strategy to succeed. A change in behaviour and workplace culture is also needed for productivity to improve. There is no better time than now to implement these changes and get all businesses to embrace the technology at their fingertips.

What is the the best way to manage your online reputation?

Back in the 90's before the great internet revolution, much of what we said and did was almost instantly forgotten. Our hobbies were only known by the people we did them with or told about them, not to mention job histories could not be found without references and CV's. These days thanks to Google, social media and the internet in general, what we do is here to stay - without careful reputation management at least.

Whether you've ranted on Facebook after a particularly bad Monday, misspelt Tweets or had unflattering photos of your night out posted by your friends, it can be difficult to manage your online reputation, especially now social media archives it all for posterity. Managing your online reputation isn't just about making sure any past online mishaps are hidden - it's also about making sure you show your best side, coming across knowledgeable, confident, capable and internet-savvy.

Although there are a plethora of companies who will help you clean, protect and build a professional online reputation for a price, in reality you can do it yourself for free, here's how:

1) Google

As with most things on the internet, reputation management starts with Google. The first thing you should do is search for yourself and not just on Google either, use every search engine out there as well as social networks and forums to find out everything there is (good and bad) about you on the internet.

Remember to search for your name, nicknames, maiden name, misspellings of your name - to be honest, it might even be a good idea to search for your first name coupled with some keywords. These should include things such as your hometown, current city, your employer, your university and your current occupation.

It is worth remembering that if a potential employer is going to search for you, they'd only have a limited about of information to go on. This would include your full name, email address, a phone number and possibly your social media handles. So it is important to focus your searches around these terms.

Also remember to make sure you scour through your old social media accounts, blogs and any forums you may have frequented - especially if there may be any damning posts or photos that you forgot about. Also it may be worth checking the Wayback Machine which is a way to see if any of your accounts or forum posts are archived on the internet.

Finally, remember your online persona is not just what you have personally put on the internet. Your friends, family and significant others are likely to have posted about you at some point too and they might not have been so vigilant with your online reputation.

2) Reinforce your Privacy Settings

After you've spent the initial time hunting down all the things on the internet you don't want anyone to see, you need to start the process of getting them removed. The next move is to try and get those links/photos/blog posts taken down, or at the very least made private.

On Facebook, make sure your privacy settings are tightened up, this can easily be done in a few seconds and is an essential step. Limit the audience for statuses and posts you've shared to Friends-only, also click where it says 'Limit Past Posts' so that your past post will also be friends-only. This action cannot be undone, so make sure you don't have a need to do have any of the posts public, however this saves a lot of time over doing it one post at a time.

On Twitter, open up Setting and click Security and Privacy. Here you can make your tweets private and then they can only be viewable by your followers and people you approve to follow you.

A quick word of warning though, employers and other potential online stalkers are smart, so just making your social media accounts private may not be enough. The only way to guarantee no one will see the content you don't want out there is to have it removed or ask the person who uploaded it to take it down. As much as untagging yourself removes it from your profile, the photo still remains visible unless the original uploader takes it down. It also worth noting, you can ask Google to remove personal information from its search results, but this doesn't apply to content you or others have put on the internet.

3) Change your Name?

This isn't as drastic as it sounds, we don't mean legally changing it or anything that dramatic. But having a work name which is a variation of your full name for professional purposes may be advisable. In the same way people in entertainment have 'stage names', a work name can provide a useful buffer against your personal internet life leaking into your professional internet life.

If your name is very hard to find online because it is quite a common one, like John Smith, choosing a variation to separate yourself from the millions of other more famous Mr Smith's that will come up in a search can be advantageous. Adding a middle name or another initial to your professional can make it easier for future employers to find you and not a John Smith account dedicated to trolling someone they particularly hate on Twitter.

The best way to have a clear distinction between your personal and professional accounts is to changing both the name of your personal accounts and professional accounts. This way they will never get confused, for your personal account you could use a nickname or your first and middle names. For the professional accounts try using your full name, initials of your middle name and surname. This way it is unlikely someone will come across either account by mistake.

4) Online Brand Building

One of the best ways to manage your online reputation is to be proactive with your brand. Suppressing embarrassing content will only get you so far, in a way it is best to concentrate on your future and build new content you would want people to see. By adding new content in the form of new social network accounts, blog posts, articles and forum post, you can improve your professional standing online and even position yourself as a leader in a particular field. This is particularly important because Google looks for new content and weights it as being far more relevant than your university photos.

Here are our top tips for branding yourself online:

 - Start a blog or personal website. This doesn't have to be a professional blog, although that's preferable for your career, it could simply be a blog showing work safe posts about your life. Also consider purchasing the domain name for your name (although John Smith might be hard to aquire).

- Professional Social Media Accounts. Create a separate Facebook for your professional identity, you can then add your boss, co-workers and colleagues, but make sure to post (interesting and work safe) content to this account. It will seem very suspicious if you never post anything to this profile and not to mention they'll think your quite boring. If you're going to join social networks do so under your professional identity, LinkedIn is a good example, as well as review sites like Amazon and Trip Adviser; alumni sites like Friend Reunited; and blogging sites like Tumblr. This lets your potential employer know you're a well rounded person.

 - Be an Expert. As we said above, being an expert in your field can be very beneficial for not only your career but managing your online reputation. Getting placed in industry blogs or magazines can really help you out on both counts. It is particularly valuable to online reputation management as these publications are likely to have a much higher clout on Google and will show up first in search results. As well doing this, you can solidify your position as an expert by posting on industry specific forums, writing a blog as well as doing video blogs and through your social media interactions.

- A Word of Warning. Although you might think completely cleaning your online presence is the best thing to do, a completely blank or sterile presence is not ideal. It will make people suspect that you're hiding something much worse than a few drunken uni pics. It will be obvious to anyone who does this sort of thing as a job that you're cultivating it and they're likely to search much harder. You want to reflect yourself in a way that shows your a professional, but you have a personality too.

5) Stay Vigilant

Finally, it is worth remembering a great online reputation is priceless, but it doesn't take much to fall to pieces. Be on your guard, Google Alerts let you track search terms (such as your name), and be notified immediately when a new search with that term pops up. The Google Alerts page even has a handy "Me on the web" widget, which lets you create alerts for your name and email address.

Have separate email addresses.If you decide to go the route of different names or personal and professional profiles, use two different email addresses. Many social networks let people search users by email address or find users in their contact list (by email address). In fact, if you can, use separate everything for personal and professional accounts: separate phone numbers, separate names etc...

Be diplomatic.This is especially important if you're managing the online reputation of a business: words carry about 10x as much weight, and 5x less humor, especially when they're written down and posted on the Internet. Think before you post, especially if you're responding to someone, and try to err on the side of "overly diplomatic." Think about it this way: you're not going to get in trouble for not tweeting something controversial.

FTSE slumps amid Eurozone uncertainty

Disappointing retail sales in the UK combined with a bleak economic outlook in the Eurozone have contributed to a decline in the price of shares for many of the leading companies on the FTSE.

The exchange fell by 18.3 points to 7010.11, following an unexpected drop in retail sales in March and a slump in German growth. The German DAX is down more than 1 per cent. Poor figures in French stocks are also adding to the pressure.

Uncertainty in Greece continues to cause instability in markets as the country runs out of time to resolve its economic crisis. The upcoming election in the UK is yet another source of uncertainty for some traders.

Positive movers included United Utilities, up 12.5p, Citigroup up 50p to 950p and Severn Trent up 17p. Tesco made a recovery of 2.4p, after their record breaking loss of £6.4bn. William Hill fell 3.6 per cent, after reporting a 19 per cent drop in first quarter profits.

Shares in the engineering firm Rolls-Royce were the best performer on the FTSE, up more than 4%, after the company announced a new chief executive.

In the currency markets the pound rose 0.64 per cent against the dollar and gained 0.75% against the euro.

UK retail sales were down 0.5% in March from February. Figures show that consumers are still cautious about spending.

Keith Richardson, managing director for retail at Lloyds Bank Commercial Banking said "Even with continued falls in fuel and food prices, consumers are responding to this current period of uncertainty by being just as careful about their own spending as they have been for the past few years.

"Despite the fact that Mother's Day fell in March and Easter fell early in April, this wasn't enough to bring forward any boost in spending into March, doing nothing to allay fears that while consumers may have a little more money in their pockets, they are spending it on leisure treats like eating out and going on holiday, rather than on High Street goods," he said.

Alan Clarke, at Scotiabank, said: "The monthly data all point towards sluggish Q1 GDP next Tuesday, not the sort of reading that the coalition government will be hoping for."

But Howard Archer, chief UK and European economist at IHS Global Insight, said that although the retail data was "disappointing", wage growth and low inflation should bolster consumer spending over the coming months.

"Despite March's weaker-than-expected performance, the prospects for retail sales and consumer spending look bright, as purchasing power has strengthened and should continue to do so," Mr Archer said.

Pound vs Euro: What does the future hold?

The euro has seen better days. Quantitative easing, turmoil in Greece and a slow recovery from recession are just a few factors that have brought uncertainty to the continent. What does the future hold for sterling? It is hard to say due to a high degree of volatility in the market.

Fund manager, Neil Woodford expects that the pound will suffer due to uncertainty surrounding the upcoming election and beyond. "The dollar is strong because there's increasing uncertainty about the world economic order and increasing political uncertainty. 

"Investors always seek the dollar at times of uncertainty. But also the US economy is outperfoming other developed economies around the world.

"Europe is weak principally because of QE [quantitative easing] and the weakness of the European economy. Sterling is in the middle. A view on sterling in the near-term is going to be influenced by the outcome of the general election. I have to say that based on where the polls are now the political uncertainty after the election is not going to be good news for the currency. I expect it to be relatively weak.”

Jim Mellon, a successful investor with a reported net worth of £850m thinks now is a good time to buy property in Europe. He said a year ago that the euro would fall significantly, and a fortnight ago he said that he believed the euro had now reached the bottom against the pound.

Jeremy Warner, economic commentator for The Telegraph said that he expected only a marginal effect from the election in the UK. Ambrose Evans-Pritchard said that what happens on the continent will have a more significant impact on the pound than domestic issues. He predicts that both currencies will be weak, but the euro will remain weaker, with a seven to ten per cent fall against the pound over the coming six weeks. Holiday makers may wish to wait and get even more bang for their buck when it comes time to exchange currencies.

Head of investments at Skerritts, Andew Merricks has a different view. He thinks that the pound is in a lose-lose situation regardless of the outcome of the election. A win for the tories would mean an EU referendum as promised, and the question of Scottish independence will still be looming. If Labour win or lead a coalition the danger to public funds could also provoke further instability in the pound.

He said “This election does look as though it is a lose/lose for sterling, at least in the short term. Go out and get your holiday money now, unless you have decided that the place to be in 2015 for a relaxing break is Russia or Ukraine, of course.”

E.on fined £7.8m for overcharging customers

Energy regulator, Ofgem has fined E.On £7.75m for incorrectly charging some customers exit fees and overcharging on bills.

The energy giant has also been ordered to pay back £400,000 to affected customers, with refunds ranging from £8 to £12.

The hefty fine will be paid to Citizens Advice, a community charity that helps vulnerable customers, Ofgem said today in statement.

This isn't the first time E.On has been caught out by the energy regulator. They were fined £12m as recently as May 2014 for miss-selling energy contracts, following an investigation by Ofgem spanning two years. It is estimated half a million households were affected.

Under rules laid out by Ofgem, energy suppliers have to give customers a full 30 days notice of price rises to allow customers to switch supplier if they choose to, before the new charges come into effect.

If a customer signals their intention to switch supplier within 30 days they should not be subject to any exit fees or higher tariff. Eon was found to have billed customers for price rises in January 2013 and January 2014.

"This error and the delay in providing the information is serious and E.On has failed to protect these consumers," Ofgem said, adding that this had been taken this into account in determining the level of penalty.

"The level of penalty package today also reflects that E.On has made the same error previously as well as making senior level commitments that it rectified its processes," the regulator added. "Also taken into account was that E.On notified Ofgem of the billing issues and has cooperated throughout the investigation."

E.On has issued an open apology to customers. "This is not the first time that E.ON has made this error and the company sincerely apologises to those affected." it said.

Eon is now in the process of trackign down customers to provide refunds by the end of April this year. Sarah Harrison, senior partner in charge of enforcement at Ofgem, said: "It is vital that suppliers play by the rules so customers are encouraged to engage in the market.

"E.ON's errors meant customers who took the chance to switch were wrongly charged. It is important that E.ON has repaid potentially affected customers and cooperated with the investigation. However it's absolutely unacceptable that E.ON failed to provide these vital customer protections yet again and this persistent failure is the reason for the high penalty."

In a statement it said: “Following reports from E.ON, Ofgem opened an investigation into the errors in June 2014 and has agreed today’s penalty package in recognition of the company’s errors. These errors meant that some customers were overcharged, although in the majority of cases this was by less than £10.”

Liquidity storm could throw UK into chaos

The Bank of England has warned that global liquidity and the threat of Greek default could throw the UK economy into chaos.

The FPC (Financial Planning Committee), which is tasked with maintaining financial stability at thhe Bank Of England said that liquidity - the degree to which assets can easily be traded - may have become "more fragile" in some markets around the world.

Mark Carney, governor of the Bank Of England said they would be working with the Financial Conduct Authority to assess whether asset managers could cope with a fast paced change in market conditions.

"The Committee remains concerned that investment allocations and pricing of some securities may presume that asset sales can be performed in an environment of continuous market liquidity, although liquidity in some markets may have become more fragile," the FPC said this week.

"Trading volumes in fixed income markets have fallen relative to market size and recent events in financial markets, including in US Treasury markets in October 2014, appear to suggest that sudden changes in market conditions can occur in response to modest news. This could lead to heightened volatility and undermine financial stability."

Although the FPC has highlighted the risk that liquidity poses to the UK, members said the Bank Of England would work with market participants to ensure that they were aware of the risks and price liquidity appropriately in an attempt to mitigate negative effects.

Just last month Mr. Carney warned that diverging monetary policies across North America, the UK, Europe and and Asia may cause further turbulence and "test capital flows across the global economy, including emerging markets."

The FPC was also quite clear that the situation in Greece posed a real threat to the UK, "There also remain significant risks in relation to Greece and its financing needs, including in the near term."

"Any of these risks could trigger abrupt shifts in global risk appetite that in turn might lead to a sudden reappraisal of underlying vulnerabilities in highly indebted economies, or sharp adjustments in financial markets."

Writing to George Osbourne, Mr. Carney said that the risk to financial stability remained "elevated" and added that he would review UK bank capital rules that might result in lenders having to raise their buffers.

The Bank Of England will ask asset managers about their strategies for managing liquidity of their funds. "This would inform assessment of the extent to which markets are reliant on investment funds offering redemptions at short notice," the FPC said.

How do companies deal with the problems posed by in-direct procurement spending?

Is maverick spending by non-procurement employees the biggest challenge relating to indirect procurement? 

Recently Supply Management conducted a market intelligence survey in which 71% of respondents said that a lack of oversight of what employees, with purchasing power but outside the procurement function, spend in categories ranging from work wear to HR services were among the top issues they faced. 

However opinions on how to deal with the issue are split. 34% percent suggest non-procurement professionals must be trained more effectively in procurement processes and a further 16% said supplier numbers should be consolidated. A further 31% percent from the private and public sectors said control of indirect spend should be handed to the procurement function, as this is one way to keep the spending in line to control the problem. This is despite the results showing that indirect costs appear to be a responsibility shared over a number of different departments within organisations: procurement (63 per cent), senior department heads (42 per cent), finance (39 per cent) and operational staff (25 per cent).

“We are a government procurement department so can only advise other departments on spend – rather than take ownership – which is frustrating,” one respondent said. “We can provide the best advice but the stakeholders can decide to overrule our advice and do what they want.”

Many of the other challenges in relation to indirect procurement are linked to maverick spend and stakeholder management. Nearly half (46 per cent) cite misclassified items and poor reporting as a challenge, 45 per cent say little understanding exists of where indirect spend lies and how much it covers. And 49 per cent say lack of ownership by stakeholders is a problem.

Again, respondents were split on the best way to increase the influence and profile of procurement in the organisation. Nearly half (47 per cent) of the 360 people surveyed said a higher status in the boardroom would help, 42 per cent said procurement needs better oversight and reporting metrics of departments’ spend and 36 per cent said more training should be available to stakeholders.

But respondents also admitted that their skills for managing indirect spend fall short in some areas. When it comes to improving their understanding of indirect spend, 54 per cent said they need to analyse supply chain and commercial commitments and 46 per cent said they need the ability to benchmark prices.

“It’s a complicated picture and one not easily overcome with basic strategy or sweeping statements,” said Chris Aston, director, Expense Reduction Analysts.

“The focus is constantly shifting between direct and indirect spend and not always in the same direction. There are huge gains to be made by allowing procurement strategies to be given higher status by businesses, and better analysis of indirect spend can have significant benefits.”

David Noble, group CEO, CIPS, added: “Boardrooms are starting to wake up to the need for professionally qualified supply chain managers because of the added value that best practice, ethical sourcing can add to their bottom line and the role they play in safeguarding their business’ reputation.”

Greece too slow to address mounting debt, says president of EU commission

Jean-Claude Juncker, President of the European Commission has criticised the sluggish pace of progress in talks over Greece's mounting debt.

In meeting with Greece's Prime Minister Alexis Tsipras, Mr. Juncker said he was not satisfied. The Greek PM is in dire need of EU support for reforms in order to unlock vital funds for his country and avoid the possibility of bankruptcy and being ejected from the Eurozone.

Mr. Tsipras has pledged to end austerity measures in Greece, such plans have been opposed by Greece's EU creditors. Greece managed to negotiate a four month extension on its bailout terms last month after heated talks with creditors.

Hoping to persuade EU leaders of its promise and worthiness of credit, Greece has announced a series of reforms, but it would still like the EU to agree new, more lenient terms for the repayment of its debts.

In the eventuality that no agreement is reached, Greece risks being unable to meet its agreed payments. In the next two weeks alone it will need to find €6bn to pay its creditors.

Mr Juncket also said that he was "not satisfied with the developments in recent weeks".

"I don't think that we have made sufficient progress, but we'll try to push in the direction of a successful conclusion of the issues we have to deal with."

"I am totally excluding a failure, I don't want a failure. I would like Europeans to go together. This is not the time for division," he said.

Speaking alongside Mr Juncker, Mr Tsipras said he remained optimistic. "If there is political will, everything is possible," he said.

In a previous meeting with Martin Schulz, president of the European Parliament, Mr. Tsipras urged the EU to back growth in Greece. "Now is the time to give hope to the Greek people, not only 'implement, implement, implement' and 'obligations, obligations, obligations,'" said Mr Tsipras.

Analysts described last months's interim bailout agreement as a climbdown for the Greek government, which gained power in the country under the promise that it would have half of the Greek debt re-written off.

Even if the bailout extension is approved, Greece still has a huge mountain to climb in meeting its debt obligations.

Cloud is slowly gaining popularity within the financial sector, but many companies have been slow to adopt it...

Cloud is slowly gaining popularity within the financial sector, but many companies have been slow to adopt it and put in place a proper strategy for cloud. Unsurprisingly, the main concerns are over the security of cloud systems.

A survey recently conducted by Cloud Security Alliance revealed that 61 per cent of respondents had a cloud strategy in the formative stages in their company. 47 per cent of those said they had plans to use a combination of in-house IT, public and private cloud. 18 per cent planned to use private clouds. None of those surveyed had plans to primarily use public cloud.

The survey also revealed a link between use of electronic transaction channels and cloud policy. The more an organisations customer base used electronic transaction channels, the less strict the cloud policy in place.

“The results of this report are insightful into understanding how the financial services industry is progressing in terms of cloud adoption and how cloud providers can best serve their interests and needs,” said Jim Reavis, chief executive of the Cloud Security Alliance. “We hope that cloud providers and financial institutions can use this as guidance to help accelerate the adoption of secure cloud services in the financial industry.”

Financial service firms are keen to see more transparency and more control of auditing from their cloud providers, this was desired even more than improved data encryption. The top reason for those moving to the cloud, according to the survey, was flexible infrastructure capacity. This was closely followed by the need for reduced time for provisioning. The top services and uses of cloud amongst those surveyed was CRM, application development and email.

When looking at compliance requirements when moving to the cloud, top of the list was data protection at 75 per cent, corporate governance at 75 per cent and PCI-DSS at 54 per cent.

“The responses overall showed a very active market for cloud services in the financial services sector,” said Chenxi Wang, vice president, cloud security and strategy at CipherCloud, which sponsored the report. “Cloud has made solid in-roads in this industry with many firms looking to harnessing the power of cloud. There’s plenty of room for growth, particularly for providers who can fill the void for the auditing and data protection controls that are at the top of respondents’ cloud wish list.”

The survey also looked at how finance, insurance, security and government decision makers take action within their organisations. From standardising cloud services, to identifying which policies will have most impact, to understanding how best to educate users.

Over 100 professionals were surveyed, with organisations varying in size and from locations across the Americas, EMEA and APAC regions.

While financial organisations have been slower to adopt cloud services, it's clear that they are catching up and starting to reap the rewards of these new services. If you would like to know more about how cloud can benefit your organisation, financial or otherwise, give us a call or email and we will be happy to discuss the best tailored solutions for your business.

Speculation of $60 anchor for oil

Another jump in US crude stockpiles pushed the price of oil down to $61 a barrel on Thursday, going against indications that there was to be an imminent rise in global demand.

The United States government's latest supply report shows that domestic inventories of oil rose last week to 434.1 million barrels, setting a record high for the seventh consecutive week.

British Gas reports slump in profits

Owner of British Gas, Centrica has reported a 35 percent slump in profits, prompting speculation that energy prices will remain low, with the possibility of further cuts coming this year.

The company reported that profits had fallen to £1.7 billion in 2014 due to the drop in gas and oil prices worldwide. Customers used a fifth less energy last year, the warmest on record, causing further problems for British Gas.

Government plans to improve UK infrastructure by opening up vast public network

The British government is opening up over 13,000 miles of publicly-owned digital networks in a bid to help improve access to high-speed broadband in areas of the country that are not well served by existing providers.

The government, realising the necessity of high speed internet in the modern age has pledged to spend at least £1.5 billion of taxpayers' money on public sector networks and infrastructure each year.

Mortgage rate war wages

A new war is under way in Britain as banks slash their mortgage rates. The last month alone has seen a drastic fall in prices of £1,700. 

How low will petrol prices fall?

As crude oil prices continue to fall, consumers are making the most of the lowest petrol prices in six years.

Tesco, Morrisons, Sainsbury's and Asda have all slashed the price of petrol and diesel at the pump, with a garage in Birmingham being the first to break the magical £1 a litre mark.

How much further can we expect prices to fall?

Swiss Franc Soars After Euro Peg Is Scrapped

The Swiss bank slashed interest rates to -0.75 percent, abandoning its control of the exchange rate. Causing the Swiss franc to rise by almost 30 percent against the euro.

The Swiss National Bank's decision to scrap its exchange rate control saw the currency move to parity with the euro. Previously the franc was restricted to a maximum value of €0.83. Swiss stock markets immediately dived by more than 10 percent, sending the euro-franc currency markets into a state of panic.

Inflation Shrinks To All Time Low

In December of 2014 the UK saw inflation drop to a record breaking low of just 0.5 percent. This news has delighted British consumers, but could also hint at a more worrying prospect - a global deflation.

This new low marked the fourth time in a five month period that we have seen a fall in inflation. Currently the lowest since records began in 2000.

Rumoured Mergers could change the face of UK Telecoms Industry

As we move into 2015 the convergence of laptops, mobiles and TV screens has become an ever increasing trend and now it is the turn of the fragmented UK communications industry.

It has been recently revealed that BT is considering buying the O2 mobile network, and is in the early-stages of talks with the UK's largest mobile network, EE. This comes 13 years after BT themselves sold the company that became O2, and marks a dramatic change in policy, which could spark a string of mergers in the telecoms and media sectors. In this respect the UK is actually slightly behind the rest of Europe, as the concept of a communication supergroups offering everything from Premier League football to internet services, is already established on the continent.

“The horse has bolted out of the stable door,” says Deutsche Bank’s telecoms analyst Robert Grindle. “The market now is going down a convergent route. The competitive forces have been unleashed and things are going to have to shake out.”

This convergence will effect consumers in several ways. Not everyone will want all the services a provider can offer bundled together. However, it is likely that the prices of the services will drop as a result of the bundling and competition. Analysts are forecasting a price drop: BT currently give away its BT Sport channels to customers that take its broadband and could soon be adding discounted mobile connections to that package.

BT’s move back into mobile could also help those waiting for a faster internet connection as competitors retaliate. It is possible their main rivals such as Vodafone and TalkTalk may choose to hit back where BT is strongest, by stepping up investment in their own superfast fibre networks.

All the main mobile and media companies are now considering their options, with so many different providers encroaching on each others lines of business, competition will be fierce and this is likely to benefit the consumer. 

Vodafone appears determined to remain competitive in the bundling arms race, it has bought several broadband and TV operators in Europe, and is laying fibre-optic cables in Spain, Portugal and Ireland. In the UK, they're offering their 20 million customers broadband and a TV set-top box if they want one next spring. Vodafone have said that if BT aquire O2 they're going to move more into consumer broadband. 

For broadband, Vodafone will use the fibre it acquired when it bought the UK network built by Cable & Wireless, which so far has been reserved for business customers. This only covers half of telephone exchanges. To reach homes, it may lay its own fibre, or rent them wholesale from BT. For TV, Vodafone is thought likely to join forces with Sky, distributing the satellite broadcaster’s Now set-top box.

Could this lead to a full-blown corporate wedding? Rupert Murdoch would have to part with his 39% stake in Sky. Analysts at Espirito Santo say Vodafone, currently valued at £60bn, would need £20bn to take full control – a 30% premium to Sky’s current valuation.

The UK Telecoms Industry at a glance:

BT
UK customers: 9.8 million for home broadband and phone
Products: TV, broadband, land line

SKY
UK customers: 11.5 million
Products: TV, broadband, land line

VIRGIN MEDIA
UK customers: 4.9 million
Products: TV, broadband, land line, mobile

TALKTALK
UK customers: 4.2 million
Products: TV, broadband, landline, mobile

EE
UK customers: 25 million
Products: TV, broadband, mobile

O2
UK customers: 22 million
Products: mobile

VODAFONE
UK customers: 20 million
Products: mobile, soon to launch broadband and TV

THREE
UK customers: 8 million
Products: mobile

Oil price is skidding towards $80 a barrel

Brent Crude suffered its biggest financial slump in four years in London yesterday, testing the $80-a-barrel mark.

In June, Brent Crude hit $115 but since then the price has slumped by more than 30%. With a 15% decrease this month alone. The price for December settlement, the forward month contract, fell $1.88, or 1.5 per cent, yesterday to $80.46 a barrel.

Traders are braced for further falls today when the Energy Information Administration, the statistical unit of the US Department of Energy, pub-lishes its inventory update, which is expected to show that stockpiles rose by more than 250,000 barrels last week.

Falling crude prices have had little impact on shale oil drilling in the United States, with output from the largest shale fields showing no sign of slowing. Yet if prices fall much farther, production will become less viable because of the high cost of extraction.

Other factors weighing on the energy market include concerns that Opec appears unable to settle on a united plan to cut production that would stop the plunge in crude prices.

The oil producers’ cartel, which will meet in Vienna this month, supplied 31 million barrels a day last month, more than 3 per cent above its target of 30 million barrels, adding to global stockpiles when growth in the big oil consuming nations appears to be slowing. On Monday analysts at JP Morgan slashed its Brent price forecast for 2015 by $33 to $82 per barrel.

According to Opec’s own estimates its share of the global oil market could shrink to 37 per cent in 2017 from 40 per cent last year. That would be the lowest in more than 25 years and far below its peak of 54 per cent in 1973.

Meanwhile, the loading dates of at least four cargoes of Forties crude, the largest of the four North Sea streams that underpin the Brent oil benchmark, have been delayed amid lower-than-expected production. Fifty oilfields are connected to the Forties pipeline.

Ofcom finds 4G Twice As Fast As 3G

4G speeds in the UK are more than double the speed of 3G, according to new data from Ofcom. The average speed was found to be 15.1mbps, 3G averaged 6.1mbps.

Data was collected from mobile networks in five major cities in the UK including London, Birmingham, Glasgow, Manchester and Edinburgh.

London came top of the speed league table for 4G, but was actually the slowest for 3G. Load times were fairly consistent across networks, with Three coming out on top.

Wages To Outpace Inflation By End of 2015

The Bank of England has declared that wages are set to rise significantly faster inflation by the end of 2015. This will mark the end of the longest pinch on living standards in recent times.

Governor of Bank Of England, Mark Carney said in September: “We are seeing the start of real pay growth. We expect this pick-up to accelerate. It’s a welcome development.”

Since the start of 2008 average earnings in the UK have fallen by 7.5 per cent, although accounting for inflation they are no higher than in 2003. Many have felt the squeeze as a result of this despite modest recovery on paper.

Gas glut could see household bills fall

People in Britain may soon be seeing the benefits of a glut in global gas supplies, with average household bills falling despite a growing dependence on imported fuel.

The news of falling bills follows on from disastrous week for global stock markets in the energy sector. Brent Crude suffered its biggest financial slump in four years in London yesterday, testing the $80-a-barrel mark. This is more than a 30% fall this year, 15% of which has been in the last month.
While investors have been watching aghast as billions of pounds were lost to market gyrations, a fuel glut and a slowing global economy have driven the oil price down to a level that could save the world $1.8bn a day on everyday fuel costs.

Sophisticated Attacks Over Hotel Wi-Fi exposed

Russian security firm Kaspersky Lab has discovered that criminals have been exploiting the wifi networks of certain luxury hotels in Asia to steal confidential information.

The group, known as the 'Darkhotel' hackers modified their code in order to target only the machines of those they wished to infiltrate. This indicates they had advanced knowledge of their victims' whereabouts and which hotels they would be staying in.

Can The Eurozone Really Bounce Back From Recession?

Frankfurt, home to the European Central Bank. Here, they are lagging behind The Bank Of England and the Federal Reserve when it comes to taking decisive action to prompt growth, and less creative in its choice of tools to get the job done.

Germany has just narrowly avoided a triple-dip recession, a great relieft, but expectations for Europe's two largest economies are still low. Things are looking slightly more rosy in France, with news that the economy had grown by 0.3%. Don't be fooled though, this growth hides are a more fundamental weakness in the country. This growth was entirely due to the French government's spending, combined with the accumulation of unsold goods.

4G To Receive A Speed Boost In Some UK Cities

The adoption of an improved version of 4G by some UK mobile operators means that many of us could soon be enjoying faster browsing speeds.

Dubbed 4G+ by EE, and 4.5G by competitors Vodafone, the new technology is capable of achieving up to 150 mbps. As we've come to expect, it is unlikely customers will actually reach those kinds of speeds. 90 mbps is a more realistic prediction, and still much faster than existing 4G networks.

Real Wages Shrank More In The Past Five Years Than Any Other Period Since Victorian Times

You may think things are looking up in the UK. You'd be wrong. Just take a look at our nation's GDP. It is 6% lower than it was in 2008. How does that

In the past, British labourers generally insisted on maintaining rising pay. When recessions hit this meant cutting jobs, rather than reducing pay.

With the recent major recession things played out differently. A number of factors including globalisation, the fall of unions and a more conservative fiscal policy led to workers to accept a reduction in pay in return for keeping their jobs.

The plus side of this is that unemployment stayed below rates seen in previous recessions. At it's highest in 2011, unemployment reached 8.4%. This is considerably lower than the peaks of 10.7% we saw in 1993. At present the unemployment rate is at 6.5%. I should point out this includes self employed and part time workers, but it is still a vast improvement on previous years.

Annual wage inflation (excluding bonuses) is down to the lowest level on record at 0.7%, and is well below the overall CPI inflation of 1.9%

The real measure of all this is of course the relationship between wages and inflation, and the cost of living. The numbers here are less rosy. The fall in 'real' wages between 2009 and 2013 of 8% is more drastic than any other period going as far back as 1864.

Where do we go from here? Many have speculated that the real wage growth we have enjoyed in the last few decades was the exception rather than the rule. That is to say, there is no real reason to expect a return to a consistent 2.5% increase plus inflation as was the case since the seventies.

Other economists say that the pressures of globalisation might mean that the long term trend could be closer to 1% increase plus inflation, perhaps even less.

National Grid Looks To The Continent In Its Time Of Need

National Grid recently made clear its intentions to import more electricity from Europe as part of new measures to maintain Britain's power supply and reduce consumer energy bills.

The company said that British consumers would stand to save £1 billion annually as a result of buying cheaper electricity from power stations in continental Europe. National Grid also warned that electricity prices in Britain would remain higher than elsewhere in Europe, where heavy investment in renewables such as solar and wind is continuing to bring prices down.




Energy secretary, Ed Davey, Ofgem, and several energy companies have backed proposals to boost the number of interconnectors, which supply Britain with electricity from the continent.

National Grid revealed in August that it will peruse emergency measures to fend off a full blown energy crisis in the coming two years. This is a result of extremely low energy reserves, estimated to be as low as 2 percent.

The group is also promoting new incentives to big businesses to turn off machinery and lights at peak hours in order to help ease the strain on the network. These measures are entirely optional but National Grid hopes they will go some way to helping alleviate the looming energy crisis.



The government is offering incentives to customers to lower their energy usage as a cheaper alternative to building new power plants. Ministers believe that such measures have the potential to save energy equivalent to that produced by 22 power stations by 2020.

Chief executive of National Grid, Steve Holiday, said that these incentives will become increasingly important as new solar and wind farms are brought on line, to cover the natural lulls in renewable energy production. He added "It is the world we are beginning to move into".

The first subsidies offered to energy companies will be held in December by capacity auction. Energy companies that participate must agree to build new power stations or use their own incentives to save an amount of energy equivalent to that which a power station would generate. These new subsidies are intended to replace the emergency reserve set up by National Grid.

The chief strategy officer of Flextricity, Alistair Martin said that due to the complex structure of the proposed scheme, it is more likely that the big six power companies will opt to build more power stations, despite it being the more expensive option.

“The Big Six’s business models mean that it’s hard for them to get involved in energy consumers’ habits. The details of the scheme have come out more their way than the consumers’ way,” he said.

Chief executive of OfGem, Dermot Nolan said: “The Department of Energy has gone through endless amounts of pain to make sure it works smoothly. But the proof is in the pudding.”

Asda Edges Ahead Of Rivals In The Price War

Disparity in the UK is widening according to Asda chief executive, Andy Clarke. He reports that shoppers in south east England are far more willing to spend on food shopping than those in the Northeast and Northern Ireland.

Quarterly figures show that Asda is winning the price war with Morrisons and Tesco, edging past them with a 0.5% increase in like-for-like sales in the second quarter of 2014.

Mr. Clarke is quick to point out the disparities between the north and the south. "It feels very different in London than in Northern Ireland or the northeast. If you're a family on a budget in those difficult regions, it still feels very challenging out there."

Asda enjoyed a 0.14% increase in market share during the second quarter. The supermarket giant is the second largest in the UK, behind Tesco and just ahead of Sainsbury's. It is the only supermarket of the big four in the UK which is currently gaining market shares and sales. In contrast, Asda's parent company, Walmart have just disclosed details of a disappointing performance in the US with a reduced profit forecast for the year.

Walmart's profits will likely take a further hit with the introduction of President Obama's healthcare reforms. Chief Executive of the chain, Doug McMillon admitted that trading had been "challenging" in recent years. "We need to see stronger comp (comparable sales) in Walmart US and Sam's Club, but both reported flat comp sales.

Britain is one of Walmart's largest overseas markets. Despite the tough climate, Asda is performing better than it's competitors including discounters such as Aldi and Lidl. Just as their advertising campaigns simply state, the company has moved away from promotional offers and loyalty cards in favour of "everyday low prices". Asda's chief executive said he was keen to abandon pricing gimmicks and concentrate on permanent low prices. He added "We're pleased with our market share growth during the quarter."

Asda also said that it's clothing line, George, has been performing very well. Boosted by strong sales of school uniforms, it is now the second best selling range in the UK behind only Primark.

According to public figures listed at Companies House, Asda bosses received £800,000 less in salary and £600,000 less in bonuses from shares. The biggest hit by the cuts was the boss himself, Andy Clarke, who saw his salary including share payout reduced to £440,000.

National Grid To Pay Firms To Use Less Power

National Grid recently announced that it has signed deals with Tata Steel, Flexitricity and 429 other companies, agreeing to pay them to use less power at peak times.

The company, which runs Britain's supply network said the agreement would give it the "tools it needs to balance the power of the grid"

Peak time is defined as between 16:00 and 20:00 on weekdays from November through to February.

Fears have been raised of power shortages due to unexpected plant shut-downs, as a result of these new agreements.

National Grid has so far contracted 319 mega watts of what it has dubbed "Demand Side Balancing Reserve" at 431 sites in the United Kingdom. As and when needed, plants will reduce their demand on the grid, or switch to their own generators. In return, they will receive compensation from the National Grid.

Last month, National Grid said it would be expediting emergency plan asking providers how much additional electricity they could supply in the event of a shortfall, following a recent string of unforeseen problems at various power plants.

A few months ago, National Grid stated that the emergency plan would not be needed this year. That prediction has since changed, following fires at E.On's Ironbridge and SEE's Ferrybridge power plants, and provisionary checks at EDF's Heysham and Hartlepool nuclear plants, following a serious of problems.

The UK is facing a real reduction in the domestically produced power, due to an ageing population of power plants that are slowly shutting down, and the speed, or lack thereof, of new ones starting up.

Rising Power Bills Number One Concern For SMEs

A recent report has revealed that cost of electricity is now the biggest challenge facing small businesses today, overtaking securing finance and the burden of red tape.

Of 2000 companies surveyed, Citizens Advice found that 46% of small business owners expressed concern over the cost of electricity, in contrast, only 16% were more concerned about accessing finance.

Chief executive of Citizens Advice, Ms Guy said: "Regulators, firms and business groups need to pay far greater attention to the ways in which these markets meet the needs of small business."

Small businesses lack the market power of their medium and large business counterparts to negotiate good deals. Greater focus needs to be placed on problems facing smaller companies in dealing with the giants of the power and telecom industries, the charity said.

Investigations into Britain's leading Energy firms has been launched by the competition watchdog after a report from regulator, OfGem. Ms Guy added that, with pressures affecting homeowners as well as businesses, the investigation needed to consider whether the market was working for all consumers.

The confederation of British industry said the government needed to do more to help support small businesses, but also noted that SMEs and business at large needs to be more energy efficient.

A spokesperson for CBI stated “As the economy recovers, businesses still face significant challenges, with rising energy prices an increasing concern. Energy efficiency can help businesses to manage these costs and the Government must ensure that small businesses have the support they need.”

SME owners are often not aware that they have all the same rights as domestic energy users, should they find themselves in difficulty. Struggling SMEs should not be afraid of seeking advice and exploring all available options.