Aviva quits CBI over ‘very serious allegations’, as fund manager abrdn ‘weighs exit’ – business live

Newsflash: insurance company Aviva has quit the CBI.

The FTSE 100-listed company took the move following the allegations of misconduct at the business lobby group, and its handling of the situation.

A spokesperson for Aviva says:

“In light of the very serious allegations made, and the CBI’s handling of the process and response, we believe the CBI is no longer able to fulfil its core function – to be a representative voice of business in the UK.

We have therefore regrettably terminated our membership with immediate effect.”

Second woman claims she was raped by colleagues while working at CBI

Anna Isaac

A woman has alleged that she was raped by two male colleagues when she worked at the Confederation of British Industry, my colleague Anna Isaac reports.

The woman told the Guardian the incident took place when she was employed at an overseas office of Britain’s most prominent business lobby group.

She said she blamed the culture at the CBI for having no support after what she claims happened to her.

This is the second woman to claim she was the victim of rape at the CBI – it follows another member of staff who alleged she was raped by a manager on a 2019 summer boat party on the River Thames.

Separately, the Guardian has been told that a woman based at the organisation’s London office was stalked by a male colleague in 2018. Sources said he followed her in person and tracked her online, and that when she complained the CBI launched an investigation.

It is understood the CBI upheld a finding of harassment.

However, sources claim the woman was actively discouraged from reporting the stalking to the police and the alleged perpetrator retained his job.

The CBI says it has reported further allegations to the police.

Here’s the full story:

UK firms also continued to lift their prices this month, adding to pressures on households.

The PMI report shows that private sector firms “once again sought to defend margins” from rapidly increasing staff costs, especially those in the service economy. Price rises accelerated slightly this month.

That, and the pick-up in growth last month, is likely to spur the Bank of England to raise interest rates for the 12th time in a row next month, when it sets borrowing costs on 11 May.

S&P Global Market Intelligence’s Chris Williamson says:

Inflationary pressures have meanwhile continued to cool in manufacturing, but price pressures have picked up in services following the resurgence of demand.

This combination of faster growth and elevated price pressures put a twelfth rate hike by the Bank of England an increasingly done deal when it next meets on 11th May, and will add to speculation that further hikes may be needed

Newsflash: The UK private sector is growing at its fastest pace in a year, as companies are boosted by a pick-up in new orders.

The latest survey of British purchasing managers has found that business activity is growing for the third month running this month, and at the fastest pace since April 2022.

The UK’s dominant service sector is driving the recovery, with companies reporting that consumer spending was resilient. This should cool concerns that the UK risks falling into recession this year.

Data provider S&P Global says that a “further robust rise” in new orders dded to signs of an improving economic landscape.

But while there was strong growth in the service economy, factory production is falling again this month. Goods producers said that demand had been hit by “customer destocking” and efforts to cut costs.

Overall, the Flash UK PMI composite output index rose to 53.9 so far this month, up from March’s 52.2, a 12-month high. Any reading over 50 shows growth.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence says the repost shows growth accelerating this month:

Growth is lopsided, however, with surging demand for services contrasting with an ongoing downturn in demand for goods, Williamson points out, adding:

“However, for now the key takeaway is that the economy as a whole is not only showing encouraging resilience but has gained growth momentum heading into the second quarter, the latest PMI reading broadly indicative of GDP rising at a robust quarterly rate of 0.4%.

The eurozone’s economic recovery has unexpectedly strengthened this month, lifted by a jump in activity at service sector firms.

The flash Composite Purchasing Managers’ Index (PMI), compiled by S&P Global, has jumped to an 11-month high of 54.4 in April from March’s 53.7.

That indicates that the economy is accelerating this month.

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, which co-produces the report, explains:

“The HCOB Purchasing Managers’ Indices for the euro zone show a very friendly overall picture of an economy that continues to recover,”

“However, a closer look reveals that growth is very unevenly distributed. For example, the gap between the partly booming services sector on the one hand and the weakening manufacturing sector on the other has widened further.”