Reshuffle
The business news that matters
Hello and welcome to Off to Lunch, your daily round-up of the business news that matters. A particular welcome today to all the subscribers joining from Business Leader’s regular newsletter. You can expect business news, ideas, expertise and analysis throughout the week in a concise and entertaining format. Please get in touch with any feedback or ideas by commenting below or simply replying to this newsletter.
I want to start in Downing Street today. So much has happened there that Suella Braverman being sacked as home secretary is not the main story. The main story is that David Cameron, the former prime minister, is returning to government as foreign secretary…
Cameron replaces James Cleverly, who is succeeding Braverman as home secretary.
The return of Cameron comes with roughly a year to go until the next general election and suggests a change of approach from Rishi Sunak, the prime minister. Cameron has been critical of some recent government decisions, such as scrapping plans to extend High Speed 2 between Birmingham and Manchester. Cameron has posted a statement on Twitter in which he said:
“Though I may have disagreed with some individual decisions, it is clear to me that Rishi Sunak is a strong and capable Prime Minister, who is showing exemplary leadership at a difficult time. I want to help him to deliver the security and prosperity our country needs and be part of the strongest possible team that serves the United Kingdom and that can be presented to the country when the General Election is held.”
You can find Cameron’s full statement below…
Lord Heseltine, the Tory grandee, told Sky News that the return of Cameron will “bring a ray of light to what has been a very dark background” for the government, although some on the right of the party have criticised the appointment.
A reshuffle of other government positions is still going on, with Therese Coffey also leaving as environment secretary.
One senior minister who is definitely remaining in their post is Jeremy Hunt, the chancellor. Hunt is preparing for the Autumn Statement on November 22, which is a week on Wednesday.
The chancellor could get more good news on Wednesday when the Office for National Statistics publishes the latest data on inflation. The consensus forecast among economists is that these figures will show that the consumer price index has fallen from 6.7 per cent in September to less than 5 per cent in October. This will mean that the government has met its pledge to cut inflation by more than half this year (it was running at more than 10 per cent at the end of 2022). Inflation has been dragged down by a reduction in Ofgem’s energy price cap as well as a fall in other prices.
You can read more on what to expect from the Autumn Statement, and what leading business groups are asking for, by checking out Business Leader’s guide here
Other stories that matter…
1. The beauty brand Avon is to open high street shops in the UK for the first time in its 137-year history. The company has pioneered different ways of selling its products during its history, such as doorstep selling via Avon ladies. Story here
2. Sticking with retail, Ingka Group, the parent company of Ikea, has confirmed it has bought Churchill Square shopping centre in Brighton for £145 million. The company plans to convert a closed Debenhams department store at the shopping centre into an Ikea, which will sit alongside other shops. Story by The Guardian here
3. The Office for National Statistics is planning to offer bigger cash rewards to people who participate in its surveys. The ONS wants more people to fill out the questionnaires to improve the quality of its economic data. Last month the ONS had to delay its monthly report on the labour market because of a lack of survey respondents. Story by the Financial Times here
4. A new collection of investors are looking to buy-out start-ups because under-pressure venture capital firms are pulling back from the market. You can read more in a Financial Times story here
5. Sam Bankman-Fried’s parents were in court throughout his fraud trial over the last month, which ended with the founder of crypto exchange FTX being found guilty. The Wall Street Journal has written a piece about why there is a fascination with Bankman-Fried’s parents because of what the case says about how to nurture and encourage an extraordinary talent - in this case their intelligent son - without them going astray. “The wildest dreams and worst nightmares of a certain type of parent are entangled in the SBF story,” the piece says. “Their child succeeded beyond their expectations and rebelled slightly by entering the world of finance, but upheld their beliefs by giving away huge portions of that money, but then flouted those expectations again by becoming a convicted criminal.” You can read more here
And finally…
A new AI-powered gadget has attracted a lot of attention in technology circles since it was announced last week. The Humane AI Pin attaches to your clothes via a magnet and uses OpenAI’s ChatGPT to answer questions you ask it as well as record your voice messages. The AI Pin is one of the first artificial intelligence devices, a market that is expected to grow quickly. But what people will actually use the device for is unclear. The AI Pin costs $699 to buy and also needs a monthly data subscription of $24. You can find more details via Humane’s website below and a review by TechCrunch here
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Best
Graham