US firms poaching top UK workers

📍Top line: U.S. firms are increasingly outsourcing roles to the U.K. due to the country's comparatively lower salary costs, according to The Telegraph. The primary factors driving this “Britshoring” trend include:

Key points:

• Wage Differences: The average salary was more than £52,000 in the US last year, according to the US Bureau of Labor Statistics, while the UK equivalent was £35,000, according to the Office for National Statistics.

• Growth in Job Outsourcing: LinkedIn data shows a 30% increase in U.K. jobs advertised by U.S.-based companies in 2023. Nearly 1 in 6 job listings in the U.K. this year are from U.S. companies.

• U.S. Market Size and Profit Margins: With a larger consumer market and higher economic growth, U.S. companies can afford to outbid local firms for top British talent, especially in high-growth sectors like tech and AI.

• Hollywood’s Role: Entertainment giants like Warner Bros. and Netflix have increasingly turned to the U.K. for film production due to lower labour costs, fewer union constraints, and experienced technical staff, as illustrated by productions like Barbie and Wonka being shot in U.K.-based studios.

• Remote Work: The pandemic-triggered shift to remote work has enabled more cross-Atlantic hiring. U.S. firms can recruit U.K.-based talent to support operations while maintaining a nearly round-the-clock workforce by offsetting time zone differences.

• Attraction of Skilled Labour at Lower Costs: With the strong dollar, U.S. firms find it cheaper to employ highly educated English-speaking professionals in the U.K.

Christmas really is getting earlier every year

📍Top line: A new analysis has confirmed that the familiar complaint, “Christmas is getting earlier every year,” holds true. Supermarket displays, local festivities, and even music charts show that the gradual takeover by Christmas-themed items—known as “Christmas creep”—is no figment of imagination, according to The Guardian.

Key Findings:

• Retail and Holiday Products: Retail figures show Christmas treats such as mince pies hitting shelves earlier than ever. In 2023, Mr. Kipling’s mince pies went on sale in early September, weeks ahead of prior years.

• Christmas Markets: Major UK Christmas markets are opening increasingly early. Birmingham’s Frankfurt Christmas Market now starts on November 1, and Manchester's market opens on November 8—several days earlier than a decade ago.

• Music Charts and Christmas Songs: Data from the UK Top 40 reveals that Christmas tunes now make early entries, with songs like Last Christmas and All I Want for Christmas Is You cracking the charts as early as November 10.

Elsewhere in business:

 🍌 Sainsbury’s has announced it will match the prices of up to 200 Aldi items in its convenience stores, aiming to attract more customers in an increasingly competitive convenience sector. The price gap between convenience stores and large supermarkets has drawn criticism, especially as consumers face a cost-of-living crisis. Research for the BBC highlights that convenience store items, like frozen pizza, can cost up to 26% more than in larger stores.

🍺 Shares in UK pub groups experienced significant declines this week following Chancellor Rachel Reeves' tax-raising budget. JD Wetherspoon's shares fell 11.4%, while Marston's dropped 10.7%. From April, employers' national insurance contributions will rise by 1.2 percentage points, and the threshold for this tax will decrease significantly, alongside a 6.7% hike in minimum hourly pay for adults. Industry leaders expressed concerns that these financial pressures could threaten the viability of many pubs.

Millions overpaid on student loan - are you due a refund?

📍 Top line: Recent data from the Student Loans Company (SLC) has revealed that hundreds of thousands of graduates overpaid their student loans in the last financial year, yet many still haven't claimed their refunds.

Key Points:

• Causes of Overpayment: Graduates may overpay due to a variety of factors, including:

  • Making repayments despite earning below the annual repayment threshold.

  • Being placed on the wrong student loan repayment plan.

  • Making repayments before the official start of their repayment period.

  • Continuing to make payments even after their loan balance has been cleared.

• How to Claim a Refund: Graduates can use the SLC’s digital refund service, launched in May 2023, which has so far processed £61.6 million in refunds. Graduates simply need to log into their SLC account through the official government website, scroll down to the “request a refund” section, confirm bank details, and submit their claim.

• Average Refund Amounts: For the 2023-24 financial year, the average refund issued by the SLC was £280, while in the current year, it’s around £250. Graduates who check for overpayments could receive a timely, easy “bonus” as the holiday season approaches.

• Refund Notifications: The SLC does not disclose specific refund amounts until after processing. Instead, graduates will receive a notification once funds are set to be deposited.

Elsewhere in the economy:

🏦 The Bank of England is expected to cut interest rates by a quarter-point to 4.75% on Thursday as inflation drops to 1.7%—its lowest since 2021—and wage growth slows. However, markets are betting on fewer cuts next year, as the government’s new Budget may drive inflation higher. The Bank last cut rates in August but held steady in September amid economic caution.

💼 The UK’s 4 Day Week Campaign is launching its first official government-backed pilot of a four-day workweek, involving 1,000 workers across 17 businesses, including the British Society for Immunology and Crate Brewery. Under this initiative, workers will receive extra time off without a reduction in pay, with some companies trying a compressed four-day week and others a nine-day fortnight.

Amazon has opened applications to its 2025 Program Manager Internship in London. The three month scheme will see successful applicants collaborate with business teams to deliver and implement innovative solutions for clients, as well as assisting in the development of novel approaches related to forecasting and prediction. The scheme is open to undergraduates set to complete their studies in 2026 or 2027. Apply now here.

Big Tech splashing out on AI

📍Top line: Big Tech is poised to exceed $200 billion in capital spending this year, largely driven by substantial investments in artificial intelligence. As tech giants Microsoft, Meta, Amazon, and Alphabet showcase potential benefits from generative AI, Wall Street is increasingly concerned about the escalating costs and uncertain returns.

Key takeaways:

• Spending Spike: Capital expenditure among the four major players surged by 62% year-over-year, reaching approximately $60 billion last quarter alone, reflecting the urgency of the AI race.

• AI Hype vs. Hard Data: Microsoft reported that its AI revenue is on track to hit $10 billion annually, faster than any other division in its history. However, most other companies have provided vague assurances about AI's impact on their growth, raising skepticism among investors.

• Cost Pressure: The surge in spending on data centres and infrastructure is expected to strain profit margins in 2025, as firms ramp up investments without clear short-term returns.

• Mixed Signals from Earnings Reports: Although Meta and Amazon hinted at improved engagement and advertising returns thanks to AI, they also flagged increased expenses on the horizon.

• Investor Concerns: Analysts are voicing worries over the high costs of scaling AI operations and the lack of concrete evidence showing substantial returns.

Elsewhere in tech:

🏥 The NHS is trialling an iPhone adapter that could revolutionise throat cancer diagnosis, delivering results within hours. The endoscope-i device, attached to an iPhone, captures high-definition footage, allowing specialists to quickly assess cases. A pilot has already helped reassure 1,800 patients and identified cancer in 1% of tests, marking a leap forward in early detection and rapid response.

💲 Elon Musk has faced a legal setback as a judge allowed former top Twitter executives, including ex-CEO Parag Agrawal, to pursue their claims for severance pay after Musk terminated them during his 2022 acquisition of Twitter. The executives, who filed the suit in March, argue that Musk expedited the deal’s close to prevent them from resigning, thereby avoiding their severance payouts.

🚨 The Metropolitan Police have handed a file of evidence to the Crown Prosecution Service (CPS) as part of an investigation into historical sexual offence allegations against comedian and actor Russell Brand.

👑 King Felipe VI of Spain faced a furious backlash during a visit to flood-hit Paiporta, Valencia, yesterday where protesters shouted "murderer" and criticised his late arrival. The King and Queen were pelted with mud as they met communities devastated by heavy rains that began on Monday, leading to at least 211 fatalities.

🇺🇸 Former President Donald Trump has attacked a “fake poll” which indicated he is trailing Vice President Kamala Harris by three points in Iowa, a traditionally Republican stronghold. Addressing supporters in Pennsylvania, Trump expressed frustration with the poll’s findings and denied that he is at risk of losing the upcoming election.