Business News 17th August 2017

CPA hopes to inform, with its daily bite-size business news on Thursday 17th August 2017, filled with stories we think will interest our members and visitors.

Markets Round up

The FTSE 100 rose over 50 points (0.7%) yesterday on lighter volumes. The market was lead up by the miners with Glencore up over 4% on the day, with Anglo American and Antofagasta both up over 3% during the day.  One of the biggest risers on the FTSE 250 which itself was up 164 points (0.8%) to 19,859 was Balfour Beatty which increased its dividend by one-third after swinging to an interim profit amidst a turnaround at the construction company , this led the stock to be up over 6% during the day, this was one of the biggest risers on mostly a green  screen day for the FTSE 350. The Eurostoxx 50 & 600 were both up 0.7% to 3485 and 379 respectively as a flash estimate from Eurostat showed the euro area economy expanded as initially estimated in the second quarter. US markets edged higher but closed at muted levels as the FED meeting minutes showed they were worried about low inflationary pressures, casting doubts on future rate rises. The S&P was up 0.14% to 2468 and the Nasdaq was up 0.2% to 6345.  Asian stocks also paused following the fed minutes with Japan marginally down (Topix & Nikkei down 0.1% to 1615 & 19703), the chinese CSI300 was up 0.5% to 3721, the Korea Kospi up 0.6% to 2362 and the Indian Nifty up 0.3% to 9930.  Oil continued to edge down with WTI at $46.88 and Brent at $50.44. Gold edged up to $1288 on the FED news. The pound continued to fall against the Euro to 1.0974 and against the dollar to $1.2887, despite the dollar being broadly weaker against most currencies.

Start-ups shun insurance

The latest small business study by AXA reveals that just four in ten start-ups founded in the past three years have taken out insurance of any kind. By the start of their fourth year in business this figure has improved to six in ten. The most serious gap is in employers’ liability insurance. Despite being legally required, the survey found that just 41% of those who have taken on eligible staff have this cover. The most common reason not to cover the business was an under-appreciation of risk. Some 72% of those without cover said their business was ‘too small’ to need it and 25% had not considered it at all.

‘Office oracles’ worth £525m to SMEs

Research from Trainline for Business reveals “Office Oracles” – the type of efficient, proactive, tech-savvy employee who frequently comes to the rescue of their colleagues – are worth £525m annually to SMEs. The research found that on average, Oracles complete 16 key tasks per day and spend over three hours and 35 minutes per week assisting their co-workers.

Minimum wage workers win £2m compensation

Workers whose bosses failed to pay the National Minimum Wage are to be refunded a record £2m, the government has revealed. In its latest “name and shame” campaign, it lists 230 employers which have not complied with the law. In total 13,000 employees have received – or will receive – compensation for their loss of pay.

Eurozone

The Eurozone economy expanded, as had been initially estimated, in the second quarter with better contribution from individual economies. Gross domestic product grew 0.6% quarter-on-quarter, slightly faster than the 0.5% increase seen in the first three months of the year, the latest flash estimate from Eurostat showed Wednesday. The agency thus confirmed its preliminary estimate released on August 1. Yearly GDP growth was revised up slightly to 2.2% from 2.1%. The economy had expanded 1.9% in the first quarter.

US FED.

Fed officials left the door open to a September announcement on how to winnow their $4.5 trillion portfolio, while arguing over risks of dormant inflation, minutes from last month’s meeting show. “Several” favored a balance-sheet announcement in July, suggesting building consensus for action next month. “Many” saw the likelihood that prices may remain below their 2% target for longer than expected, while others expressed the dangers of overshooting.

US Housing

The US housing market cooled last month with scant indication in the data that a turnout might be on the cards in the near-term, according to economists. Housing starts in the States fell by 4.8% month-on-month in July to reach an annualised pace of 1.155m, according to the Department of Commerce, Economists had forecast a small rise to 1.225m.

Gas Prices

Gas prices are set for increased volatility heading into winter after the closure of a major storage facility off the east coast of England, the CEO of a key energy alliance group has said. Centrica announced in June that it would be permanently closing Rough, a major facility used in the extraction and storage of gas. Mike Foster, chief executive of the Energy and Utilities Alliance, a not-for-profit trade association, said the decision to close Rough would affect prices in the lead u0070 to the cold season.

Amazon

President Donald Trump has blasted Amazon on social media, saying the e-commerce giant is hurting retailers and causing U.S. job losses. Amazon shares fell as much as 1 percent in Wednesday’s premarket session after Trump’s tweet. The President tweeted: “Amazon is doing great damage to tax paying retailers. Towns, cities and states throughout the US are being hurt – many jobs being lost!”

China

The US should hit China with sanctions, Steve Bannon told American Prospect. The two nations are at war economically and China uses North Korea as a distraction for which there’s “no military solution.” The U.S. president’s chief strategist said he’s going to get more trade hawks into government. He categorized white nationalists, who he’s accused of cultivating for President Trump’s political gain, as “losers” and “a collection of clowns.”

Trump retreats

Trump was forced to shut down his two business advisory councils as more CEOs repudiated him for failing to sufficiently condemn white supremacists. He made the announcement less than an hour after one of the groups, led by Blackstone’s Stephen Schwarzman, planned to tell the White House it was disbanding. The moves came a day after Trump tweeted he had plenty of executives ready to replace those who quit.

Universities challenged

Students across the UK are today waking up this morning to find out their A-level results amid reports that a fall in universities applications will create a ‘buyers’ market’ for those seeking places. The reduction in applications to universities has apparently coincided with a smaller cohort of 18 years olds and uncertainty caused by a change to the A-level framework. Both combine to create a situation where it is possible even many of the Russell Group universities will have places still on offer. This could lead to some higher education providers lowering their entry requirements in a bid to attract students.

IHT loophole allows protection of assets

The Express highlights an IHT “loophole” which enables people to protect more of their assets. Although cash or assets given to loved ones up to seven years before death are still liable for IHT, the paper notes that there are annual gifting allowances that are immune from tax, even within the seven year period. Up to £3,000 a year can be given to anyone of a person’s choice, while money can also be placed in trust for younger relatives not yet at university age, triggering the seven year countdown.

Daily Express

Venezuela

Venezuelans who express “hate or intolerance” will be jailed for up to 25 years under a bill pending in the country’s newly-formed constituent assembly, a measure the opposition fears will be used by the government to further crack down on dissent. President Nicolas Maduro has faced a cacophony of international criticism, from the United Nations to Pope Francis, since he installed the 545-member assembly stacked with Socialist Party allies earlier this month. The nation has been rocked by anti-government unrest that has left more than 120 people dead while the country sinks further into a recession compounded by triple-digit inflation and serious food shortages.

US Civil War?

In March, Keith Mines was one of several national-security experts whom Foreign Policy asked to evaluate the risks of a second US civil war, with percentages. Mines concluded that the United States faces a sixty-per-cent chance of civil war over the next ten to fifteen years. Other experts’ predictions ranged from five per cent to ninety-five per cent. The sobering consensus was thirty-five per cent.

Wages up amid lowest unemployment since 1975

Unemployment in the UK fell by 57,000 in the three months to June, official figures show, bringing the jobless rate down to 4.4% – its lowest since 1975, with 32.07m people in work. The ONS figures also showed that earnings growth in the three months to June was 2.1% higher than in the same period in 2016, up from 2% in the three months to May and a recent low of 1.8% in April.

 

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Previous News pages

Business News 16th August 2017

Business News 15th August 2017

Business News 14th August 2017

Business News 11th August 2017

Business News 10th August 2017

Business News 9th August 2017

Business News 7th August 2017

Business News 3rd August 2017

Business News 2nd August 2017

Business News 1st August 2017

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