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  • 📈 AstraZeneca Bins £450m UK Deal Drama

📈 AstraZeneca Bins £450m UK Deal Drama

February 04, 2025

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • AstraZeneca Bins £450m UK Deal Drama

  • China Strikes Back, Tariffs Fly Everywhere!

  • EnSilica Bags £10m to Power Satellites!

The summary: AstraZeneca’s £450m investment may have slipped through the cracks, but with billions still flowing into the UK and future deals on the table, Britain’s business charm isn’t down for the count just yet.

The details:

  • AstraZeneca pulled the plug on a £450m UK investment, citing a lacklustre government funding offer—cue finger-pointing all around.

  • Science Minister Sir Chris Bryant insists the government made a "significant offer," but doing more wasn’t worth the taxpayer's coin. Meanwhile, Labour's Alan Mak claims the deal collapse was an own goal for the new government.

  • The investment would have expanded AstraZeneca’s vaccine plant in Speke, but after "protracted" talks, the pharma giant decided to shelve the plan—though existing jobs remain safe.

  • Despite the setback, AstraZeneca still pumps £2.5bn into the UK economy annually, and Sir Chris assures MPs they haven't packed their bags just yet.

Why it matters: A £450m investment vanishing overnight is hardly a ringing endorsement for the UK’s business-friendly credentials, especially when AstraZeneca was name-checked as a shining example just days before. With both Labour and the Tories trading blame like a hot potato, it raises awkward questions about whether Britain can actually seal the deals it so proudly announces. Meanwhile, AstraZeneca stays put, but the whole saga leaves a whiff of uncertainty over future big-ticket investments—because no one likes a drawn-out negotiation that ends in nothing.

The summary: Trump’s tariff tussles with China, Canada, and Mexico are shaking up global markets, but with a dash of diplomacy and a sprinkle of bravado, the full impact’s still anyone’s guess!

The details:

  • Trump kicks off the trade war with a 10% tariff on China, and in return, Beijing hits back with a 15% tariff on US coal, oil, and more—while adding Google to its naughty list.

  • China’s also safeguarding its secrets with export controls on key minerals and slapping more companies with penalties, including PVH Group and Illumina, just for good measure.

  • Meanwhile, the US holds off on tariffs against Canada and Mexico after some last-minute diplomacy—though Trump’s still eyeing China for the next round of economic drama.

  • Global markets respond with mixed feelings—Hong Kong's up, but the FTSE 100 and the pound are feeling the pain, while the Canadian dollar flirts with a 20-year low.

Why it matters: Trump’s trade tantrums are setting the global stage for a costly back-and-forth, with China retaliating just as swiftly as a tea kettle coming to the boil. While diplomatic wrangling might delay some tariffs, the uncertainty’s rattling markets, pushing the pound and the Canadian dollar into a bit of a sulk. If tariffs truly start to bite, shoppers might feel the pinch at the checkout, despite Trump’s bravado about making America great again—at any price.

The summary: EnSilica’s £10.38m space-backed boost puts Britain at the forefront of satellite broadband tech, ensuring secure, high-performance connectivity for a booming global market—because no one likes a dodgy signal, whether in a remote village or outer space!

The details:

  • EnSilica lands a stellar £10.38m boost from the UK Space Agency’s C-LEO programme to develop high-performance satellite broadband chips—think SpaceX’s Starlink and Amazon’s Kuiper, but with a British twist.

  • Chips ahoy! These semiconductor marvels will power next-gen user terminals, seamlessly linking to multiple satellite constellations while keeping the UK’s supply chain independent and secure.

  • A cosmic cash injection for UK space tech, as the satellite user terminal market rockets towards a $16.5bn valuation by 2031—EnSilica’s cutting-edge innovation ensures Britain stays in the game.

  • Global ambitions with a local lift-off—CEO Ian Lankshear says the funding will help deliver resilient, high-speed internet to crisis zones and remote communities, proving space really is the place for connectivity.

Why it matters: With satellite broadband booming and a £16.5bn market on the horizon, the UK isn’t just hitching a ride—it’s building the tech that keeps these networks running. By developing independent, high-performance chips, EnSilica is ensuring Britain isn’t left at the mercy of overseas suppliers when it comes to space-based connectivity. And let’s be honest, whether it’s for rural villages or disaster zones, having reliable internet beamed from the heavens is far better than buffering purgatory.