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Wednesday newspaper round-up: Stagflation, Amazon, Scottish jobs

(Sharecast News) - The UK economy is suffering from a 1970s-style "British disease" that means inflation will not fall back to the Bank of England's 2 per cent target until after 2027, a think tank has warned. The National Institute of Economic and Social Research (NIESR) said the economy had suffered from five years of "lost economic growth", with stubbornly high inflation and semi-permanent government deficits expected in the foreseeable future. Jagjit Chadha, director of the institute, Britain's oldest independent economics think tank, said the country's woes had led to the "re-emergence of the British disease" - a reference to the stagflationary trap of the 1970s, when the term was coined. - The Times

Amazon has been accused of pushing small businesses to the edge of collapse after warning it would hold onto thousands of sellers' cash temporarily. The US tech giant told small firms using its platform in the UK and continental Europe that it will withhold their sale proceeds for over a week, triggering fears businesses will not have the cash to keep going. - Daily Mail

Scotland's jobs market is struggling and pay growth is falling behind the rest of the UK as its oil industry declines, according to the Institute for Fiscal Studies (IFS). Figures show that Scotland's employment rate has suffered a "marked deterioration" since 2014, and is now one percentage point below the national average. At the same time, earnings have grown much more slowly than in the rest of the country. - Guardian

Britain's taxpayer-funded infrastructure bank has invested £24 million in a mining start-up hoping to produce lithium for electric vehicle batteries in Cornwall. Cornish Lithium said the UK Infrastructure Bank had led a £53.6 million funding round that would "significantly accelerate progress toward the creation of a domestic supply of battery-grade lithium compounds". The first equity investment by UKIB, which is taking a 13 per cent stake in the company, has been matched by a further £24 million from EMG, an American private equity group, and £5.6 million from TechMet, an existing investor. - The Times

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Sunday newspaper round-up: Middle East, Aston Martin, Defence
(Sharecast News) - Britons must accept that their country was now involved in the Middle East conflict, Tobias Ellwood said. The former defence minister warned that "nobody was in full control" of the growing conflict as more and more countries were sucked in. Ellwood also said that Tehran's strike had taken the conflict into a "new dangerous territory". - Sunday Telegraph
Friday newspaper round-up: Everton, AstraZeneca, Amazon
(Sharecast News) - Everton has paid about £30m in interest charges to an opaque lender associated with a tax exile, corporate records suggest. The charges appear to have reached about £438,000 a week, according to the troubled Premier League club's most recent set of accounts, a figure more than three times the reported wages of the Everton and England goalkeeper Jordan Pickford. - Guardian
Thursday newspaper round-up: Border controls, McKinsey, KPMG
(Sharecast News) - New post-Brexit UK border controls coming into force later this month will cost British businesses £2bn and fuel higher inflation, according to a report warning that UK-EU trade will be damaged as a result. With less than a month before the introduction of new checks on animal and plant products from 30 April, the insurer Allianz Trade said the controls agreed under Boris Johnson's Brexit deal could add 10% to import costs over the first year. - Guardian
Wednesday newspaper round-up: Shoplifting, EnQuest, Klarna
(Sharecast News) - The government is investing more than £55m in expanding facial recognition systems - including vans that will scan crowded high streets - as part of a renewed crackdown on shoplifting. The scheme was announced alongside plans for tougher punishments for serial or abusive shoplifters in England and Wales, including being forced to wear a tag to ensure they do not revisit the scene of their crime, under a new standalone criminal offence of assaulting a retail worker. - Guardian

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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