The chancellor's Spending Review is examined
Labour: £27bn should have gone to long-term projects
Austerity 'is not over' says IFS
It's the annual Thanksgiving holiday in the US. No Wall Street trading - it's family time. Turkey, cranberries,and all that class of thing. A very happy holidays to you from Business Live, which is closing up for the day. See you Friday from 06:00.
The Economist has an interesting article, external about global financial literacy. If you have $100 in a savings account that earns 10% interest each year, how much will you have after five years? This was one question in a quiz designed to test financial literacy. While education played a role in how well people answered, GDP did too, as you can see from the chart below.
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BBC Scotland business and economy editor tweets...
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This New York Times article, external is well worth a read. It tells how George Zimmer, who founded US retail chain Men’s Wearhouse and was ousted by the board, feels a touch of schadenfreude about the firm's fortunes.
European Central Bank president Mario Draghi needs "to surprise currency traders next week or risk a euro rebound that would threaten his efforts to boost inflation," says Bloomberg Business, external. However, strategists believe he can pull it off in his announcement, which is widely expected to lay out further eurozone stimulus measures.
Image source, Getty ImagesOverall, the National Retail Federation US trade group expects sales to increase 3.7% to $630.5bn, with much higher growth than the 10-year average of 2.5%.
Image source, Getty ImagesAlmost 100 million people will shop in the US this Black Friday on the day itself, the US National Retail Federation has estimated. But a number of retailers have extended their opening hours to the Thanksgiving holiday (which is today), when the trade group expects 30 million to shop.
IAAF president Sebastian Coe is to step down from his role promoting sportswear company Nike.
Lord Coe faced repeated questions about a potential conflict of interest.
It follows conflict of interest claims over the 2021 World Championships going to Eugene, Oregon, where Nike is based.
Retailers have been bombarding registered shoppers with emails detailing deals today ahead of them becoming available from midnight, while many stores are preparing to open their doors early. You lucky people.
Both Tesco and John Lewis are installing queuing systems in expectation of large crowds.
Ebay is expecting nine million vistors to its website over the day. John Lewis will match competitor's prices and Amazon has promised bargains.
Image source, Getty ImagesThe public may get concerned again about the possibility of foreign control of British airspace, the Prospect union has warned, after the government signalled the possible sale of its share in air traffic control provider NATS.
The government said in its Spending Review that it would explore the sale of its 49% shareholding in NATS.
Prospect's Steve Jary said: "There may be legal obstacles to the sale."
"If NATS stock comes to be openly traded, there will be nothing to stop a foreign buyer taking it over – most likely, a state-owned company or a sovereign wealth fund. This would put the UK in a uniquely vulnerable position. NATS is already the only ‘for profit’, privatised national air navigation service provider in the world," he added.
What do you think? Brave new world, or terrible idea? Get in touch at bizlivepage@bbc.co.uk
Image source, Getty ImagesWith Wall Street closed for the Thanksgiving holiday and tensions between Russia and Turkey fading, European stock markets have been buoyed by expectations that the European Central Bank will back further eurzone stimulus next week, some analysts said. There's increasing speculation that ECB President Mario Draghi will announce a bold package of measures as the bank tries to shore up the economic recovery across the region and get inflation back towards its target of just below 2% on an annual basis.
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Verbal abuse, threats and violence against retail staff increased by two thirds last Black Friday, shopworkers' union Usdaw says.
Quote MessageOur members have real concerns about Black Friday on 27 November. The last two years have seen unprecedented scenes of mayhem in some stores, as bargain hunting turns into a frenzy. We have been talking to retailers, who have responded positively about organising their events to maximise safety and security for staff and customers alike... My message to shoppers is clear. Enjoy your bargain hunting, keep your cool and respect shopworkers."
UK retailers are gearing up for the Black Friday shopping phenomenon with analysts predicting record sales... Last year's Black Friday saw shoppers fighting over bargains, websites crashing and delivery companies struggling to cope.
The Treasury has hit back at suggestions that tax credits claimants will be worse-off under the new Universal Credit benefits system. It said: "No existing claimants will see a cash fall in their entitlements." - So when people transfer over to the new system, they'll get the same benefits, unless their circumstances change. The Treasury added:
Quote MessageUniversal Credit... is an entirely different system to the current one, taking in six different tax credits and benefits - with none of the cliff edges of tax credits. So comparing what someone making a new claim would receive under the new system in 2020 to what they would be eligible for now is not legitimate... There will be no losses in tax credits and the suggestion that tax credit cuts have somehow been postponed or transferred into Universal Credit is completely misleading."
Earlier, the IFS estimated that 2.6 million families would be an average of £1,600 a year worse off under the new system of Universal Credit than they would be under existing tax credits, but 1.9 million would be £1,400 better off. The Resolution Foundation said working households on Universal Credit are set to lose an average of £1,000 in 2020.
BBC business reporter Theo Leggett writes...
Image source, Getty ImagesThere has been a substantial increase in the number of untaxed vehicles on Britain's roads, according to figures from the Department for Transport. The unpaid tax could be worth up to £80m, although the department says it is working hard to recover the lost revenue. It follows the abolition of the paper tax disc and other changes to the vehicle excise duty system introduced last year.
There were an estimated 560,000 untaxed vehicles on Britain's roads when the Department for Transport carried out its survey during the Summer. That compares with just 210,000 in 2013, the last time the figures were compiled.
The way in which road tax - or vehicle excise duty - is paid was overhauled last year. The paper tax disc was abolished, and the authorities now use a network of cameras linked to a database to work out which vehicles are being driven illegally.
Tax cannot be transferred when a car is sold, meaning the new keeper has to pay before driving it. The Department for Transport admits these changes probably caused the increase in untaxed vehicles. The RAC says the figures are worrying and disappointing. It claims there may well be a correlation between evasion of tax and the number of people driving without insurance.
The FTSE 100 share index has closed 0.9% higher, helped by mining stocks. Glencore finished more than 6% higher, and Anglo American closed more than 4% up.
Image source, Getty ImagesShares in Danish luxury electronics maker Bang & Olufsen are up more than 30% after it said it had received approaches about a potential takeover offer. "The company has initiated a dialogue to investigate and analyse the firmness of these approaches," the company said, external.
Image source, Getty ImagesRussia is preparing wide-ranging economic sanctions against Turkey for shooting down of one of its fighter jets, Russian Prime Minister Dmitry Medvedev says:
Quote MessageThe government has been instructed to work out a system of economic and humanitarian measures in reaction to this act of aggression... These documents will deal with the introduction of bans and restrictions with respect to the activities of Turkish economic structures on the Russian territory, restriction and bans on shipments of goods including food, on works and services provided by Turkish companies, as well as other restrictive measures."
Dmitry Medvedev
Image source, EPATesco has beefed up Black Friday security in the wake of chaotic scenes at some of its shops last year. It says it has individually assessed stores to decide whether they need more guards, additional barriers and queuing systems. In addition, its larger 24-hour shops will close at midnight tonight and reopen at 5 am to give managers and staff extra time to set shops up.