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A busy week on the markets following the High Court ruling that stopped prerogative powers being used to exercise Article 50. The pound rose sharply, and the stock market fell, highlighting again how there is currently a negative correlation between the two. That correlation will play out as hedging of currency for the big international businesses starts to run out in the first quarter of next year. Which way the markets go at that point will depend on how things play in the meantime,
The Gig Economy.
In an employment tribunal ruling Uber, the “taxi” (private hire through a smart-phone app) company. were found to be the effective employers of their drivers. That means they need to provide them with the benefits of an employer, holiday, minimum wages and so on. It’s an interesting ruling depending on how you view this sort of work. We think this is just the start of a number of cases where the changes in the way the world is working with self-employment and employment boundaries becoming blurred is going to need a new approach to regulation and control. Many self-employed people work for periods at well below minimum wage, and have no legal protection. For others the flexibility that such work offers and the ability to fit it into other commitments are a boon. Some Uber drivers were vociferous in their condemnation of the ruling as it also means they will have to accept Uber as an employer, with all that entails, rather than themselves.
One thing is for sure. The economy is changing. Employment, making a living, part-time working, associate agreements, self-employment are all changing, and the regulators and lawmakers are struggling to keep up.
Foolish moment of the Week:
Following the Galaxy note 7 smartphones that catch fire, South Korean manufacturer Samsung has another issue, with Washing Machines. Top loading washing machines are losing their doors and causing potential (and in nine cases actual) injury. It’s not been a good couple of months for the business. (Source: BBC)