Business News 7th June 2017

We hope you enjoy reading the business news compiled by the Credit Protection Association on Wednesday 7th June 2017 for its members and visitors.

London business confidence rebounds

The ICAEW business confidence monitor shows firms’ perceptions of their prospects over the next year turned positive in the second quarter of 2017 for the first time since early 2016. Andrea Dunhill, London director at ICAEW, said: “Profit growth is expected to rise, but is likely to be due to a pick-up in sales volumes rather than price rises, which is certainly good news for consumers in the capital. Export sales are also expected to improve as businesses in London begin to take advantage of weaker sterling”. The index measure reached 5.3 points in the second quarter, after a run of four negative quarters.

City AM

Businesses preparing for the unexpected

The global chairman of PwC has warned that uncertainty around Thursday’s election is weighing on the minds of businesses which are preparing for the unexpected after Brexit and the US presidential vote. Bob Moritz said businesses would be viewing the vote very differently had it taken place at the same time last year, before the UK referendum or Donald Trump’s victory. “Everybody’s watching. They’re probably assuming a certain outcome, but they’re watching carefully because everybody’s been surprised over the last year or so,” Mr Moritz said.

The Scotsman, Page: 8   Yorkshire Post, Business, Page: 4

FSB drives post-Brexit Anglo-Polish trading relations

The Federation of Small Businesses (FSB) is to host an Anglo-Polish Business Conference on 23 June in Sheffield as part of a drive to cement ongoing trading opportunities with Polish businesses both in the UK and in Poland in the post-Brexit environment. FSB Committee Member Marek Niedzwiedz, who has driven the project, points out that over 25,000 companies have been set up in the UK by Polish nationals, while another 80,000 Poles are self-employed, representing a massive addition to the UK business population and potential for extensive new marketing opportunities for adventurous entrepreneurs to exploit.

Wishlist for SMEs

Bobby Lane at Shelley Stock Hutter outlines a wishlist for the incoming government, starting with a reduction in corporation tax for SMEs. A two-tier system would mean smaller firms could reinvest and grow more quickly. Late payers should be penalised with hefty fines (CPA wholeheartedly agrees!), and the costs of employment should be reduced, perhaps by not having to pay PAYE for two years, says Mr Lane.

Daily Mirror, Page: 39

Theresa may disappoint, but Marxists mean nightmares

With just a day to go before the general election the papers press the case for their party of choice. The Guardian says the only way forward is to invest for growth, claiming Tory hopes that lower corporation tax would lead to more private sector investment have been dashed by profits flowing to shareholders instead. The Standard’s Anthony Hilton says Jeremy Corbyn’s tax-and-spend philosophy of socialism would get quickly punished by financial markets, a view echoed by the Mail’s Alex Brummer, who says Labour’s Marxists ideas would take Britain down the path of Greece and Venezuela and lead to economic meltdown. The Telegraph’s leader says electing Labour now would be “unthinkable folly” but the paper is disappointed at the apparent lack of direction from the Tories on mapping out a low-tax small-state post-Brexit Britain. The Times’ Daniel Finkelstein points to Labour inconsistency over Brexit and predicts a market collapse if they win. The Mail launches a ferocious attack on Labour on its front page, accusing Mr Corbyn and his coterie of being apologists for terror and that those worried by Tory plans should know they would be “hammered ten times harder by Labour.” Finally, the Express says Theresa May and her party are willing to take the tough decisions for the sake of Britain’s long-term future but a “Corbyn premiership would quickly become a nightmare” for Britain.

The Guardian, Page: 26   Evening Standard, Page: 36   Daily Mail, Page: 1, 20   The Daily Telegraph, Page: 17   The Times, Page: 27   Daily Express, Page: 1, 12

Labour’s magic money tree at the bottom of every garden

The Mail reveals that a briefing paper from the Labour Land Campaign, which drew up the blueprint for Labour’s Land Value Tax, dubbed a “garden tax” by the Tories, would bring the collateral benefit of crashing house prices. An LVT could replace business rates and council tax, Labour’s manifesto says, but the Tories have claimed the move would cost an average home £3,837. Further analysis suggested the bill for semi-detached homes would be £4,181, bungalows £4,633 and owners of detached homes would pay £6,808 a year. Tory local government minister Andrew Percy said: “Nobody will escape as Jeremy Corbyn taxes your home and garden to fund his reckless spending pledges. It’s clear his magic money tree is at the bottom of every garden in the country.”

Daily Mail, Page: 8

Clegg warns of Brexit tax bill

Former Lib Dem leader Nick Clegg has warned a no deal Brexit would mean raising the basic rate of income tax by 10p to pay the £45bn Brexit bill.

Daily Mirror, Page: 9

Theresa May warns of Labour dangers

Theresa May has issued a warning to Britain over the dangers over electing Jeremy Corbyn and his team. The PM told the Mail a vote for Labour would put “Jeremy Corbyn in charge of the Brexit negotiations, John McDonnell and his Marxist policies in charge of the tax system and Diane Abbott in charge of our police, our borders and our national security.” The Conservatives in contrast would bring a government with “a plan for Brexit, the right policies to protect our national security and a commitment to keep taxes on families low,” said Mrs May.

Daily Mail, Page: 10

Nations agree corporate tax avoidance crackdown

About 70 countries including those in the EU, India, China and Australia, but not the US, will sign a pact today to tackle “base erosion and profit-shifting” – a move that could increase corporation tax take by 8-10%, says Deloitte’s Bill Dodwell.

Financial Times, Page: 6

UK economic future looks grim

The winner  of Thursday’s U.K. election is not going home with a glittering prize according to bloomberg: slower growth, tepid wage gains, a depressed currency and a productivity problem that’s plagued governments for years. Those challenges are compounding the disruption that Brexit is heaping on the economy, from faster inflation to concern about future trading arrangements. Also, U.K. government bonds could plunge if the Labour Party pulls off a shock election upset, causing yields to almost double.



The pound could plunge to as low as $1.20, a level last seen in January, should the election lead to a hung parliament, according to a Bloomberg poll of analysts. It’s around $1.29 this morning in London.


UK Market

The FTSE 100 was muted yesterday, trading broadly flat. Investors seem to be cautious ahead of an important week which on Thursday will see the U.K. go to the polls, the ECB give an update following there policy meeting and former FBI Director James Comey will testify to Congress. The prospect of such a “Super Thursday” meant that yesterday was not so super!

Asian Markets

Asian shares barely moved in thin trade as investors continued to shun riskier assets ahead of potentially market moving global events later this week

U.S. Markets

U.S. shares retreated amid investor caution ahead of this week’s British general election and congressional testimony from fired former FBI chief James Comey.


Oil prices edged up, finding technical support after sliding below $47 a barrel on pressure from a diplomatic rift in the Middle East and sustained high crude inventories in the United States.


Gold held steady near its highest in seven months, supported by a weaker U.S. dollar ahead of key political and economic events that are expected to stoke bullion’s safe-haven appeal.

South Africa

South African economy contracted for the second straight quarter in the three months ended March, entering a technical recession, figures from Statistics South Africa showed. Gross domestic product contracted 0.7% sequentially in the first quarter, following a 0.3% fall in the fourth quarter. In the third quarter of 2016, the rate of expansion was 0.4%. The largest negative contributor to growth in GDP in the first quarter was the trade, catering and accommodation industry, which decreased by 5.9% and contributed -0.8 of a percentage point to GDP growth, the statistical office reported.

Previous News pages

Business News 6th June 2017

Business News 5th June 2017

Business News 2nd June 2017

Business News 1st June 2017

Business News – 31st May 2017

Business News – 30th May 2017

Business News – 26th May 2017

Business News – 25th May 2017

Business News – 24th May 2017

Business News – 23rd May 2017

Business News – 22nd May 2017

Business News – 19th May 2017

Business News – 18th May 2017

Business News – 17th May 2017

Business News – 16th May 2017

Business News – 16th May 2017

Business News – 12th May 2017

Business News – 11th May 2017

Business News – 10th May 2017

Business News – 9th May 2017

Business News – 8th May 2017

Business News – 5th May 2017

Business News – 4th May 2017

Business News – 3rd May 2017

Business News – 2nd May 2017