European Central Bank Cuts Interest Rates To 0.25%

Mario Draghi announced that the European Central Bank (“ECB”) would cut interest rates to a record low of 0.25%, down by a quarter of a percent. The move suggests that the Eurozone economies are not recovering as quickly as anticipated and that the Bank is not concerned about inflation. In fact, it seems that the Eurozone economies are more likely to suffer from deflation than inflation.

The Eurozone have been suffering from economic weakeness for some time now and the drop in rates may lead to downward pressure on the Euro. Whether this will have any effect remains to be seen.

BskyB’s Shares Fall Over 10% After BT Secures Champions’ League Deal

BskyB (BSY) and ITV were dealt a major blow as telecoms group BT (BT.A) confirmed that it had won the exclusive rights to broadcast live the UEFA Champions League and UEFA Europa League for three seasons. BSkyB was the worst hit after broker Nomura downgraded its rating for the stock from “Buy” to “Reduce”, saying that BT's willingness to overpay for the UEFA deal is “worrying for Sky and a bad sign for the next Premier League auction”.  BskyB’s shares fell by over 10% following the news.

Over 2.5m Small Businesses Operate From Home in the UK

There are now over 2.5 million small business owners operating from home in the UK. This represents 52 per cent of all small businesses, according to Direct Line for Business. London has seen a growth of e-commerce and other IT start-ups over recent years. You will only need to walk around London’s Silicon Roundabout in the City to see the growth in new start-ups, most of which began working from home and moved into shared workspaces as their business grows.

Many IT start-ups face common issues. As your company grows you will need to pay more attention to your finances and ensure your business is set up effectively. Belsize Accountancy specialise in working with IT start ups whether they are IT contractors or self employed business owners. Feel free to contact us on 0207 043 0052 for more information.