2nd February 2017
Major investment opportunities between China and northern powerhouse on the horizon
It’s been a busy week financially and economically, with positive statistics from The Bank of England revealing UK economy growth predictions are up from 0.8% to 2%, and controversy surrounding the White Paper submitted by Theresa May regarding all things Brexit. It’s also great to hear that potentially huge investment opportunities could be brought to the Northern Powerhouse from China as a result of talks due to happen later in February, so read on to find out more…
Slow start to 2017 for the UK construction industry
Construction firms reported a subdued start to the year with the Cips/Markit activity index slipping from 54.2 in December to 52.2 as housing, civil engineering and commercial building work slowed. However, Cips CEO David Noble said: "In the short term at least, the outlook is positive, as long as economic conditions remain supportive and firms are able to control their rising costs.”
Evening Standard, Page: 41 The Scotsman, Page: 35
Bank of England more than doubles UK economy growth outlook
The Bank of England now expects the UK economy to grow 2% in 2017, up from the 0.8% forecast it made in August. "Domestic demand has been stronger than expected in the past few months, and there have been relatively few signs of the slowdown in consumer spending that the committee had anticipated following the referendum," the Bank said in its latest Quarterly Inflation Report. The Bank kept interest rates on hold at 0.25% and also cut its unemployment projection for this year from 5.5% to 5%, virtually unchanged from its pre-referendum forecast of 4.9%.
Daily Mail, Page: 24 The Daily Telegraph, Business, Page: 1
Chinese delegation to open up ‘major’ Northern Powerhouse investment opportunities
A Chinese business delegation will land in the North later this month seeking new commercial partnerships across the Northern Powerhouse. This will be made up of members of the China-Britain Business Council (CBBC), the China Chamber of Commerce UK (CCCUK) and the China Council for the Promotion of International Trade (CCPIT). The group will attend the UK Northern Powerhouse International Conference and Exhibition in Manchester Central, where its members will conduct meetings with business leaders from key Northern cities.
Bdaily North West
Banks study loopholes to enable UK branches to sell to EU clients
Banks are mulling over the use of loopholes such as “back-to-back trades” and “reverse solicitation” to ensure their UK operations can continue selling to EU clients should passporting rights be lost after Brexit. Most of these workarounds are already used by banks to do business in Europe, giving some bankers and lawyers confidence that they could help them cope with the potential shock of the UK losing access to the EU single market overnight.
Financial Times, Page: 4
Theresa May seeks smooth and orderly exit from the EU
The government’s White Paper on Brexit negotiations stressed the importance of London staying "a pre-eminent global financial centre", and pledged to seek "the freest possible trade in financial services between the UK and EU member states". The paper pledged to give more powers to Scotland, Wales and Northern Ireland as decision-making is brought back to the UK, and states that the government wants to secure an agreement with European countries "at the earliest opportunity" on the rights of EU nationals in the UK and Britons living in Europe.
BBC News
If you have any queries as a result of this week’s financial summary, please don’t hesitate to get in touch on 0161 832 8484, and in the meantime the Davenham team will be keeping an eye on the coming financial and economical announcements and happenings.
Slow start to 2017 for the UK construction industry
Construction firms reported a subdued start to the year with the Cips/Markit activity index slipping from 54.2 in December to 52.2 as housing, civil engineering and commercial building work slowed. However, Cips CEO David Noble said: "In the short term at least, the outlook is positive, as long as economic conditions remain supportive and firms are able to control their rising costs.”
Evening Standard, Page: 41 The Scotsman, Page: 35
Bank of England more than doubles UK economy growth outlook
The Bank of England now expects the UK economy to grow 2% in 2017, up from the 0.8% forecast it made in August. "Domestic demand has been stronger than expected in the past few months, and there have been relatively few signs of the slowdown in consumer spending that the committee had anticipated following the referendum," the Bank said in its latest Quarterly Inflation Report. The Bank kept interest rates on hold at 0.25% and also cut its unemployment projection for this year from 5.5% to 5%, virtually unchanged from its pre-referendum forecast of 4.9%.
Daily Mail, Page: 24 The Daily Telegraph, Business, Page: 1
Chinese delegation to open up ‘major’ Northern Powerhouse investment opportunities
A Chinese business delegation will land in the North later this month seeking new commercial partnerships across the Northern Powerhouse. This will be made up of members of the China-Britain Business Council (CBBC), the China Chamber of Commerce UK (CCCUK) and the China Council for the Promotion of International Trade (CCPIT). The group will attend the UK Northern Powerhouse International Conference and Exhibition in Manchester Central, where its members will conduct meetings with business leaders from key Northern cities.
Bdaily North West
Banks study loopholes to enable UK branches to sell to EU clients
Banks are mulling over the use of loopholes such as “back-to-back trades” and “reverse solicitation” to ensure their UK operations can continue selling to EU clients should passporting rights be lost after Brexit. Most of these workarounds are already used by banks to do business in Europe, giving some bankers and lawyers confidence that they could help them cope with the potential shock of the UK losing access to the EU single market overnight.
Financial Times, Page: 4
Theresa May seeks smooth and orderly exit from the EU
The government’s White Paper on Brexit negotiations stressed the importance of London staying "a pre-eminent global financial centre", and pledged to seek "the freest possible trade in financial services between the UK and EU member states". The paper pledged to give more powers to Scotland, Wales and Northern Ireland as decision-making is brought back to the UK, and states that the government wants to secure an agreement with European countries "at the earliest opportunity" on the rights of EU nationals in the UK and Britons living in Europe.
BBC News
If you have any queries as a result of this week’s financial summary, please don’t hesitate to get in touch on 0161 832 8484, and in the meantime the Davenham team will be keeping an eye on the coming financial and economical announcements and happenings.