5 Things You Need To Know (8/8/17)
Welcome to our daily update, where we summarise the key talking points from the last 24 hours.
1. Bitcoin, mortgages, and fine wine
Homeowners are taking advantage of record low mortgage rates by borrowing against their homes to invest in Bitcoin and fine wines.
Simon Gammon of Knight Frank Finance highlighted in a report that the low cost of debt with mortgages at less than 2% is leading to home owners investing in riskier investments with the trend rising by 50% since 2009.
2. Job vacancy growth
Job vacancies have grown at the quickest pace in 27 months, however there is not enough people to fill them.
A report from the Recruitment and Employment Confederation shows that the demand for candidates has reached a 23-month high, with strong growth across all UK regions apart from London, the most sought after candidates being for engineering, accounting, and IT roles.
3. Bitcoin hits record high
The cryptocurrency value has reached nearly $3,500, a record high gain coming ahead of a big change in Bitcoin’s network.
Bitcoin’s blockchain network will begin a new software process that increases transaction capacity. The method was devised years ago as a solution to Bitcoin’s scaling problem.
The US automaker has announced that it will issue bonds to raise $1.5 billion.
This marks a change from Tesla’s previous fundraising methods, and while this debt is considered relatively high-risk, rating agencies say that taking it on at this point reduces the overall risk to Tesla’s balance sheet, materially strengthening its operating performance and credit metrics for 2018.
5. ASOS investing more in US
Online fashion retailer ASOS is investing $40 million (£30.7 million) in a new warehouse in Atlanta to assist in sales growth in the US.
The new fulfilment centre will be ten times the size of the company’s Barnsley warehouse, having space for 10 million items of clothing and accessories.