14th February 2017
Manufacturing & construction lead the way for growth this week
Things seem to be taking a positive turn economically, as we have a financial update full of growth and great news including predictions that the UK will remain a financial hub even after Brexit. News of the sale of Co-Op Bank headquartered in Manchester also broke this week, and after a slow start to 2017 for the UK construction industry things seem to be on the up, so read on to find out more.
Manchester-headquartered Co-Op Bank goes up for sale
Just four years after almost collapsing, the Co-Operative Bank has announced plans to put itself up for sale. The Manchester-headquartered company this week said it is inviting offers to acquire all of its shares. Putting itself up for sale, the firm said, has always been a “potential outcome” of its turnaround strategy.
Bdaily North West
Construction climbs
Data from the ONS shows that construction grew by 1.8% in December, up from 0.4% during November.
Daily Express, Page: 7
Growth surge fuelled by manufacturing
UK growth was stronger than expected at the end of last year, fuelled by a manufacturing surge and narrowing trade gap. Economists said official growth figures could be upgraded later this month after ONS data showed manufacturing output rose by 2.1% in December compared with the previous month.
The Daily Telegraph, Business, Page: 33 The Times, Page: 45 Financial Times, Page: 1
London will remain a financial hub despite Brexit
Fiona Frick, chief executive of the Swiss investment house Unigestion that oversees $23bn of assets, predicts London will remain a financial hub after Brexit for Unigestion and for the international asset management industry, and says her firm remains committed to the UK. She commented “For us, Brexit doesn’t change anything because we have a lot of clients in London and we believe London will remain a financial centre where you have a lot of talented people.”
Financial Times, Page: 4
BoE holds talks with banks over Brexit
The Bank of England’s deputy governor Sir Jon Cunliffe has met with UK banks to discuss their Brexit contingency plans in an attempt to identify weaknesses in the sector. He reportedly wants the government to push for a bespoke arrangement for the financial sector. The Bank and City executives have previously warned that Britain might not have enough time to finalise an exit deal and agree a new trading relationship by 2019. Meanwhile, EY’s financial services Brexit tracker has found that Britain’s financial businesses are determined to keep as much of their operations as possible in the UK after Brexit. Out of 222 firms, the tracker found that 15% of firms expect to move some staff, while 10% actively re-committed themselves to the UK.
The Sunday Times, Business, Page: 2 The Daily Telegraph, Business, Page: 3
Inflation jumps in January
Official figures this week are expected to show that higher petrol and food prices lifted inflation to 2% in January compared with a year earlier, up from 1.6% in December. Economists also believe further price rises are in the pipeline as the fall in the value of the pound after the Brexit vote pushes up import costs.
The Sunday Telegraph, Business, Page: 3 The Sunday Times, Business, Page: 3
Finishing on a positive note; there has been strong economic growth across UK
A survey of businesses by Lloyds Bank has showed strong economic growth across England and Wales, with a more modest expansion in Scotland. Every region recorded expansion, according to the bank’s PMI which came in at 55.5 for January. That is down from December's 56.7 but well above the 50-level which signifies growth.
The Daily Telegraph, Business, Page: 1 The Scotsman, Page: 34
Hopefully this week’s financial summary has put some minds at rest in regard to Brexit, but if you have any queries as a result, please don’t hesitate to get in touch on 0161 832 8484, and as always the Davenham team will be keeping an eye on the coming financial and economical announcements and happenings.
Manchester-headquartered Co-Op Bank goes up for sale
Just four years after almost collapsing, the Co-Operative Bank has announced plans to put itself up for sale. The Manchester-headquartered company this week said it is inviting offers to acquire all of its shares. Putting itself up for sale, the firm said, has always been a “potential outcome” of its turnaround strategy.
Bdaily North West
Construction climbs
Data from the ONS shows that construction grew by 1.8% in December, up from 0.4% during November.
Daily Express, Page: 7
Growth surge fuelled by manufacturing
UK growth was stronger than expected at the end of last year, fuelled by a manufacturing surge and narrowing trade gap. Economists said official growth figures could be upgraded later this month after ONS data showed manufacturing output rose by 2.1% in December compared with the previous month.
The Daily Telegraph, Business, Page: 33 The Times, Page: 45 Financial Times, Page: 1
London will remain a financial hub despite Brexit
Fiona Frick, chief executive of the Swiss investment house Unigestion that oversees $23bn of assets, predicts London will remain a financial hub after Brexit for Unigestion and for the international asset management industry, and says her firm remains committed to the UK. She commented “For us, Brexit doesn’t change anything because we have a lot of clients in London and we believe London will remain a financial centre where you have a lot of talented people.”
Financial Times, Page: 4
BoE holds talks with banks over Brexit
The Bank of England’s deputy governor Sir Jon Cunliffe has met with UK banks to discuss their Brexit contingency plans in an attempt to identify weaknesses in the sector. He reportedly wants the government to push for a bespoke arrangement for the financial sector. The Bank and City executives have previously warned that Britain might not have enough time to finalise an exit deal and agree a new trading relationship by 2019. Meanwhile, EY’s financial services Brexit tracker has found that Britain’s financial businesses are determined to keep as much of their operations as possible in the UK after Brexit. Out of 222 firms, the tracker found that 15% of firms expect to move some staff, while 10% actively re-committed themselves to the UK.
The Sunday Times, Business, Page: 2 The Daily Telegraph, Business, Page: 3
Inflation jumps in January
Official figures this week are expected to show that higher petrol and food prices lifted inflation to 2% in January compared with a year earlier, up from 1.6% in December. Economists also believe further price rises are in the pipeline as the fall in the value of the pound after the Brexit vote pushes up import costs.
The Sunday Telegraph, Business, Page: 3 The Sunday Times, Business, Page: 3
Finishing on a positive note; there has been strong economic growth across UK
A survey of businesses by Lloyds Bank has showed strong economic growth across England and Wales, with a more modest expansion in Scotland. Every region recorded expansion, according to the bank’s PMI which came in at 55.5 for January. That is down from December's 56.7 but well above the 50-level which signifies growth.
The Daily Telegraph, Business, Page: 1 The Scotsman, Page: 34
Hopefully this week’s financial summary has put some minds at rest in regard to Brexit, but if you have any queries as a result, please don’t hesitate to get in touch on 0161 832 8484, and as always the Davenham team will be keeping an eye on the coming financial and economical announcements and happenings.