📈 UK Inflation Falls to 3-Year Low

StoneX Eyes CAB in £368m Swoop

October 16, 2024

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:

  • UK Inflation Falls to 3-Year Low

  • StoneX Eyes CAB in £368m Swoop

  • Omnea’s Raises $20 Million: Procurement’s New Power-Up!

The summary: With inflation down, interest rate cuts on the horizon, and the Chancellor juggling a £40bn budget challenge, there’s plenty of financial drama ahead, but a few silver linings too!

The details:

  • UK inflation dropped to a surprising 1.7% in September, the lowest in over three years, driven by cheaper petrol and airfares—good news for your wallet, if not your waistline (hello, pricier cheese and eggs!).

  • With inflation below the Bank of England's 2% target, a November interest rate cut is now highly likely—markets are already betting on it.

  • Benefits, such as Universal Credit, may rise by 1.7%, but the state pension is set to soar by 4.1%, adding a pinch of disparity to welfare increases.

  • As Chancellor Rachel Reeves gears up for her first budget, she's facing tough decisions to find £40bn—prepare for potential tax hikes and spending cuts.

Why it matters: With inflation falling below target, brace yourself for cheaper borrowing and potential interest rate cuts—a small win for homeowners and businesses. However, don't get too comfortable; while benefits are inching up, pensions are racing ahead, leaving some feeling a bit short-changed. And as the Chancellor sharpens her budget pencil, expect a few financial fireworks as she hunts for £40bn in cuts and taxes.

The summary: After a turbulent year, CAB Payments is weighing a £368.5m takeover bid from US firm StoneX, which could see the fintech firm delist from London, marking another shake-up in the UK’s tech scene.

The details:

  • CAB Payments, the UK fintech firm, is flirting with a potential delisting from the London Stock Exchange after receiving a £368.5m takeover proposal from US payments giant, StoneX.

  • StoneX has been wooing CAB Payments since July, sweetening the deal from an initial £1.15 per share to a revised £1.45 per share, but CAB's board remains coy, reviewing the latest offer.

  • Once hailed as a rare tech IPO success, CAB Payments has had a rough ride since, with shares nosediving 70% in October and a CEO exit just months later.

  • StoneX has until 7 November to make things official, but whether this will be a happily-ever-after or a brief fling remains to be seen.

Why it matters: CAB Payments, once a darling of the London Stock Exchange, is now facing the awkward possibility of being swept off its feet by a US suitor after a rough year. With share prices in freefall and leadership in flux, StoneX's proposal could offer a lifeline—or just another twist in the saga. If StoneX follows through, it’s a signal that the UK’s fintech scene is ripe for American pickings, leaving the City pondering yet another lost gem.

The summary: Omnea’s recent $20 million funding boost is set to transform the tedious world of procurement into a slick, AI-powered experience, promising efficiency and control while expanding its reach across the pond!

The details:

  • Omnea, the London-based AI-powered procurement platform, just bagged a cool $20 million Series A led by Accel, with a guest list of angel investors from Workday, Stripe, and Asana.

  • The funds will triple the headcount by 2025, supercharge AI features, and help Omnea open shop in the US—all while rolling out snazzy new tools for risk management.

  • Founded in 2022 by two Bens, Omnea’s mission is to rescue procurement from its bureaucratic black hole, promising smoother, faster supplier management with no-code workflows and custom dashboards for everyone involved.

  • With big names like McAfee, TeamViewer, and AlphaSights already on board, Omnea’s poised to become the procurement hero we never knew we needed.

Why it matters: Omnea’s funding and ambitious plans mean businesses can finally kiss the clunky, archaic procurement processes goodbye and say hello to streamlined efficiency, making everyone’s lives a bit easier—especially those poor souls in finance. With its fancy AI and risk management tools, it’s like giving procurement a much-needed makeover, transforming it from the office wallflower to the life of the party. As the company expands into the US, we could be on the brink of witnessing a procurement revolution—so brace yourselves for a whole new level of supplier control!