US retail sales return to growth in October despite shutdown November 20, 2013 US retail sales are up again in October, and well ahead of analyst estimates. They jumped by 0.4 per cent, after seeing no growth last month (revised up from a 0.1 per cent fall). Paul Dales, senior US economist at Capital Economics, says that the number is "a very decent result at a time when [...]
US CPI falls to four-year low of one per cent in October November 20, 2013 CPI in October increased just 1.0 per cent, compared to October 2012 – the smallest 12-month increase since October 2009. Analysts had expected a 1.1 per cent increase, following September's 1.2 per cent rise, which was the smallest gain since April. The drop, says Paul Ashworth of Capital Economics, is unlikely to impact the Fed's [...]
Labour rejects recommendations to overhaul benefits for under 25s November 20, 2013 The Labour party has distanced itself from a report which calls for, among other things, overhauling out-of-work benefits for the under 25s. The influential Institute for Public Policy Research (IPPR) on Wednesday published the report "No more NEETs: A plan for all young people to be learning earning." The report made three key recommendations which [...]
Just four commuters use Boris’ £60m Emirates Airline cable cars November 20, 2013 One of London's great white elephant projects – the Emirates Airline cable cars – were used by just four regular commuters in the week from Saturday 13 October. With a capacity of 2,500 people an hour, the link between the O2 in Greenwich and the ExCel centre at the Royal Docks operates well below that [...]
UK mortgage lending hits five year high November 20, 2013 Gross mortgage lending in October has risen to £17.6bn according to Council of Mortgage Lenders (CML) data. This represents an increase of 36.6 per cent year-on-year and nine per cent month-on-month and was the highest monthly gross mortgage lending seen since October 2008. The housing market is being supported by improving consumer confidence, increasing employment [...]
Diageo quenches thirst for bourbon with new premium brands November 20, 2013 Alcohol giant Diageo has said it does not need to buy spirits producer Beam Inc and is set to launch two new premium bourbon brands, Orphan Barrel and Blade & Bow. Commenting on whether Diageo would seek to acquire the maker of Jim Beam and Maker's Mark, chief executive of officer, Ivan Menezes said, "we [...]
Bankers explain difficulties of outside-in valuations as their Royal Mail figures vastly outstrip £3.3bn sell-off price November 20, 2013 Some interesting stuff is coming out of the BIS select committee, where a panel of MPs is grilling the invement banks involved in the sell-off of Royal Mail. Details from the banks not selected to run the flotation have been garnered. A quick reminder, because the bankers have not made it clear: Some of the [...]
Bank of England may keep rates low even if unemployment threshold is reached November 20, 2013 Minutes from the Bank of England November Monetary Policy Committee meeting reiterate that the Bank believes there may be a case for not raising rates immediately after unemployment falls to the seven per cent threshold rate – the seven per cent is a marker, not a trigger. A scan of the minutes shows no fundamental [...]
UBS downgrades Royal Mail to “sell” as panel of MPs begin grilling bankers on sale November 20, 2013 UBS analysts have downgraded their recommendation for the Royal Mail, advising clients to "sell" shares in the postal service. UBS, one of the banks that ran the flotation of the company, recommends selling on valuation grounds, with a target of 450p. Shares have surged over 60 per cent since they were sold, but UBS now [...]
GSK Aspen sale raises pharma giant £429.5m November 20, 2013 GlaxoSmithKline (GSK) said this morning that it has completed the partial sale of its stake in Aspen Pharmacare, Africa's largest drug company, earning R7,059m (£429.5m) for the UK pharma firm. (Release) The net proceeds of the transaction, which is for around six per cent of GSK's stake in Aspen, will be used for "general corporate purposes". [...]