Business News 26th July 2017

This is the hopefully enjoyable and informative, bite size business news compiled by the Credit Protection Association on Wednesday 26th July 2017 for its members and visitors.

Markets Round up

The FTSE100 has bounced back up after yesterday’s losses, A steady pound and bargain hunting helped the FTSE 100 erase most of the losses it sustained Monday. With many of the huge global miners and two oil majors listed in London, the FTSE 100’s performance moved in step with the fortunes of the commodity stocks lead by rises in the price of copper and iron ore. Glencore, Antofagasta and Anglo American were the biggest risers, all with moves over 5% to the upside.  The FTSE 100 closed at 7435 up 0.8% while the FTSE 250 rose 0.1% to 19,641. The Euro Stoxx 50 rose 0.6% to 3474. U.S. stocks rose as corporate profits continue to come in even bigger than analysts expected. McDonald’s and Caterpillar were among the big companies reporting healthier-than-forecast earnings. The S&P500 was up 0.3% to 2477 and the Nasdaq was flat at 6412. Asian stocks followed the lead and were mostly up too overnight. Oil Prices extended gains after Saudi Arabia pledged to curb exports from next month and OPEC called on several members to boost compliance with output cuts to help rein in oversupply and tackle flagging prices Brent was up to $50.6 and WTI was up to $48.4. Gold retreated from a one-month high as equities gained ahead of a U.S. Federal Reserve meeting that is expected to provide more clues about monetary policy falling below $1250 to £1246. The dollar however is quiet ahead of the Fed announcement where rates are expected to stay on hold, holding at $1.3029 against the pound. The pound strengthened against the Euro to €1.1210 . The Aussie dollar was the biggest mover, falling to $1.6493 following weak inflation numbers.

US Consumers

US consumer confidence rose to its second-highest level since 2000 in July, according to the latest Conference Board Consumer Confidence Index. Analysts were expecting a slight dip but consumer confidence has in fact risen by 3.8 points to 121.5 since June.

All electric Mini

Britain’s car making industry has received a major vote of confidence after BMW announced it will build an all-electric version of the Mini in the UK. The German car giant said the full-electric Mini E will roll off the production lines at its Oxford plant – which is the historic home of the iconic car – from 2019.


trump tweeted yesterday afternoon “Working on major Trade Deal with the United Kingdom. Could be very big & exciting. JOBS! The E.U. is very protectionist with the U.S. STOP!”

British Manufacturing

The British manufacturing output increased at the fastest pace since early 1995, the latest quarterly Industrial Trends Survey from the Confederation of British Industry showed. A balance of 31% said the volume of output increased over three months to July, the highest since January 1995. However, in July alone, the new order balance fell to 10% from 16% in June. The balance for expectations for output growth reached 28%, the highest since April 2014. The weakened pound and improved global demand “should continue to buoy UK manufacturers competing in foreign markets.

UK economy deemed a good investment

Analysts at Northern Trust Asset Management predict that Sterling will stay low for at least a couple of years, benefitting exporters but keeping import prices up. The firm’s Wayne Bowers said Brexit negotiations will keep the pound under pressure but the implications are positive: investors will continue to put cash into the UK because companies are innovative and outward looking while export-driven growth will keep stocks attractive. Mr Bowers added that the low level of corporation tax rates will also encourage the re-domiciliation of corporate activity into the UK to continue.

The Daily Telegraph, Business, Page: 31


Greece has made much progress since 2010 and investor confidence is returning to the country, European Commission Economic and Financial Affairs Commissioner Pierre Moscovici said, as the country held a sale of its government bonds for the first time since 2014. Since February, Greece has made several important and very positive developments, Moscovici said. The top EU official expressed hope that Greece will be able to stand on its feet within a year and become a ‘normal’ member of the euro area again.


German business confidence hit another record high in July with a survey released showing the mood in the nation’s boardrooms at “euphoric” levels as Europe’s biggest economy surges on. The Munich-based Ifo economic institute said its closely watched business climate indicator climbed to a higher-than-forecast 116 points this month – its third consecutive monthly all-time high – pointing to a strong German economic growth performance this year. Analysts had forecast a decline to 114.9 points this month from a reading of 115.2 in June.

Average UK family’s tax bill hits £25k

A study by the TaxPayers’ Alliance has determined that the average household contributed £24,781 in tax in the financial year 2016/17, a rise of £1,500 on the year before. John O’Connell, chief executive of the TaxPayers’ Alliance, commented: “With the tax system more complicated and opaque than ever, it’s time for fundamental reform to make it simpler, more honest and less of a burden on families and businesses.”

Daily Mail, Page: 8

Amazon announces major London expansion

Amazon plans to massively expand the number of people it employs in research and development across London endorsing the capital’s booming tech sector despite Brexit. As they opened their new office yesterday in London they said that they would be doubling the capacity of its development centre in the city from 450 to 900 and that it plans to occupy all 15 floors of a new 600,000sq ft building in Shoreditch, east London. The move means that by the end of 2017, Amazon will employ more than 5,000 people in research and development roles as well as corporate jobs across several sites in London.

New diesel and petrol vehicles to be banned from 2040

New diesel and petrol cars and vans will be banned in the UK from 2040 in a bid to tackle air pollution, the government is set to announce. Ministers will also unveil a £255m fund to help councils tackle emissions from diesel vehicles, as part of a £3bn package of spending on air quality. The government will later publish its clean air strategy, favouring electric cars, before a High Court deadline. Critic complain it is too distant a deadline and will be redundant anyway as the 2020’s will see manufacturers move towards electric vehicles anyway.

Make the UK a simple place to do business

In a letter to the Times, Stuart Lisle, tax partner at BDO, says Brexit provides an opportunity to create a business-friendly tax system. The government should simplify the system rather than offer incentives through subsidy, so as not to complicate Brexit negotiations, says Lisle, who advocates “aligning national insurance and income tax as well as a moratorium on all new business tax policies that do not simplify the system until 2020 or until the Brexit negotiations are finished.”

The Times, Page: 26

Northern Investment

Mayors and council leaders from five cities in northern England will hold a summit with business leaders next month to push ministers for more investment. The cities – Liverpool, Newcastle, Sheffield, Manchester and Leeds – are concerned that since the departure of David Cameron and George Osborne, the Government has become less committed to the idea of a Northern Powerhouse. The event comes after ministers announced their backing for Crossrail 2 – a proposed north-south rail route across London – but said the Manchester to Newcastle rail link may not be fully electrified despite promises from the previous government. Andy Burnham, the Mayor of Greater Manchester, said there would be “widespread anger” at the decision to support Crossrail 2.

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Previous News pages

Business News 25th July 2017

Business News 24th July 2017

Business News 21st July 2017

Business News 20th July 2017

Business News 19th July 2017

Business News 18th July 2017

Business News 17th July 2017

Business News 14th July 2017

Business News 13th July 2017

Business News 12th July 2017

Business News 11th July 2017

Business News 10th July 2017

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