This is your source of financial and news and events.
In the latest news we have gathered from online as Brexit nears the horizon for the United Kingdom increasing numbers of manufacturers, retailers and large industrial suppliers are diverting their operations, relocating or cutting jobs within the UK industry in order to prepare for the effect Brexit could have on them. Since Brexit was announced back in 2017 there have been hastily prepared plans, flawed arguments and political turmoil gripping the UK as the government tries to decide how to go about delivering Brexit. Some major companies such as Honda and other firms have cut jobs in the run up to Brexit despite pledges made years ago promising millions of pounds of investment in the UK as well as creating additional jobs. As well as the jobs market the fear surrounding Brexit and its potential repercussions Brexit is also having a negative effect on overall growth and sales within the business sector. Businesses are a lot more hesitant to invest as there is uncertainty within many markets. What we can be sure of is that after Brexit has happened then the global business atmosphere is likely to change drastically. Currently the fear of the unknown is what is stopping a lot of businesses form investing.
In other business news Elon Musks company Tesla continue to have demand rise for its different models of tesla car. However, to date Tesla has failed to turn a profit and has been struggling to meet demand. Many new customers have to join a waiting list of over a year in order to become a tesla owner currently due to the demand for the car. Although having said this, Tesla is developing what is estimated to be one of the biggest factories on earth once it has been completed. It is thought once this facility has been built Tesla will begin to gain further traction and start becoming a more profitable company overall. Its highly unlikely that at this stage Tesla will fail as it from its inception it received a lot of support from many wealthy investors worldwide.
Retailer John Lewis has been struggling over the past year to turn a profit. This year John Lewis announced that their previous years profit was 45 % lower than their last and led to staff being paid their lowest bonus since 1954. In response to this John Lewis explained that this was partially down to the market environment as well as their investment in two new stores in England. Whilst this may be the case there are other pressing issues which have led to John Lewis’s dramatic fall in profit’s which have not been mentioned by the company. Another factor which may well have contributed to the drop-in profits is the customer services of John Lewis. John Lewis has always been seen as a leader in terms of quality, service and price. However, several years ago John Lewis made the decision to outsource their customer services. Since doing this their approval ratings on website such as Trustpilot have dropped significantly and increasingly their reputation is being brought down by the poor state of the customer services. If John Lewis fails to recognise and identify issues leading to falling profits and their poor state of customer services then this could ultimately lead to their collapse.