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 BABC Investment News

December 2013

 

1. Economic Indicators:

·         UK / London

·         US / NY

·         Euro Zone

·         Houston

2. Investment Indicators:

·         UK / US / Europe / Global

 

3. New Investments:

·         US Investments into UK

·         UK Investments into US

 

 4. Trade Shows:

·         UK

·         US

1. ECONOMIC INDICATORS

UK

 

  • UK Gross Domestic Product (GDP) in volume terms was estimated to have increased by 0.8% in Q3 2013, unrevised from the previously published estimate.
  • Consumer Price Index (CPI) annual inflation was 2.2% in October, down from 2.7% in September.
  • The employment rate for July to September 2013 was 71.8%, up 0.3% from April to June 2013. The unemployment rate for July to September 2013 was 7.6%, down 0.2% from April to June 2013.
  • Between July to September 2012 and July to September 2013 total pay rose by 0.7% and regular pay rose by 0.8%.
  • In the 12 months to September 2013 UK house prices increased by 3.8%, up from a 3.7% increase in the 12 months to August 2013.
  • Production output increased by 2.2% in September 2013, compared with September 2012.
  • Manufacturing output increased by 0.8% in September 2013, compared with September 2012.
  • The Index of Services increased by 1.5% in August 2013 compared with August 2012. 
  • In Q2 2013 the net sector aggregate of selected SPPI's 12 month inflation rose 0.7%, compared with a rise of 1.2% Q1 2013.
  • Comparing Q3 2013 with Q2 2013, the seasonally adjusted chained volume measure of construction output increased by 1.7%
  • In the year to October 2013 the output price index for home sales of manufactured products rose 0.8%. In the same period the total input price index fell by 0.3%.
  • In October 2013, the quantity bought in the retail industry increased by 1.8% compared with October 2012. On the month the quantity bought decreased by 0.7%. Despite this fall, the underlying pattern in the data as suggested by the three month on three month movement is flat, following a sustained seven month period of growth.
  • Public Sector Net Borrowing in October 2013 was £8.1 billion. This was £0.2 billion lower than in October 2012.
  • In Q3 2013, Business investment rose by an estimated £0.4 billion (1.4%) compared with the previous quarter.
  • The UK’s deficit on seasonally adjusted trade in goods and services was £3.3 billion in September 2013.  The deficit on trade in goods was £9.8 billion. The surplus on trade in services was estimated at £6.5 billion.
  • There was a current account deficit of £13 billion in Q2 2013, up from a revised deficit of £21.8 billion (originally published as a deficit of £14.5 billion) in Q1 2013.
  • The number of visits to the UK by overseas residents in September 2013 was 2.8 million, 6% higher than the number in September 2012. During the period July to September 2013, overseas residents made 8% more visits to the UK than in the corresponding period a year earlier and they spent 9% more on these visits. In the 12 months to September 2013 the number of visits to the UK was 6% higher than a year earlier and earnings grew by 8%.
  • The estimated number of visits abroad by UK residents in September 2013 was 6.4 million, which stayed around the same level as September 2012. During the period July to September 2013, UK residents' visits abroad were up by 4% compared with the corresponding period a year earlier, and they spent 7% more on these visits. In the 12 months to September 2013 the number of visits abroad by UK residents grew 2% when compared with a year earlier and expenditure on these visits grew by 3%.

 

For previously released UK economic indicators visit National Statistics http://www.ons.gov.uk/ons/index.html

LONDON

  • London’s annual growth in output increased to 2% in Q2 2013 from a downwardly revised 0.9% in Q1 2013.
  • London’s annual employment growth decreased to 2.7% in Q2 2013 from 2.9% in Q1 2013.
  • Annual house price inflation in London was 8.5% in Q3 2013, up from 6.8% in Q2 2013.
  • The percentage of the resident working age population who are unemployed and claiming Jobseekers’ Allowance in London was 3.2% in October 2013. There were 183,000 seasonally adjusted unemployment claimants in London in October 2013 compared to a downwardly revised 191,000 in September 2013.
  • The Purchasing Managers’ Index (PMI) of business activity recorded 65 in October 2013 compared to 62.9 in September 2013.
  • The PMI for new orders for London firms recorded 66.4 in October 2013 compared to 64 in September 2013.
  • The PMI for the level of employment in London firms was 57.7 in October 2013 compared to 53.9 in September 2013.
  • The RICS survey shows a positive net balance of 100 for London house prices over the three months to October 2013.
  • The net house price expectations balance in London was 77 in October 2013.
  • For Greater London, the consumer confidence score increased to -2 in October 2013 from - 6 in September 2013.
  • In the most recent 28 day period, (from 15 September 2013 to 12 October 2013) London’s underground and buses had 297.5 million passenger journeys; 195.9 million by bus and 101.6 million by Underground.
  •  The moving average annual rate of growth in passenger journeys was1.2%, unchanged from the previous period.

 

For more information please visit:

http://www.london.gov.uk/priorities/business-economy/publications/londons-economy-today

 

US  

 

  • Real Gross Domestic product (GDP) increased at an annual rate of 2.8% in Q3 2013.
  • In September 2013, personal income increased $67.4 billion, or 0.5%, disposable personal income (DPI) increased $64.8 billion, or 0.5% and personal consumption expenditures (PCE) increased $24.7 billion, or 0.2%.
  • The September 2013 international trade deficit increased 8% from August, to $41.8 billion. Exports fell 0.2%, to $188.9 billion. Imports rose 1.2%, at $230.7 billion.
  • The U.S. current account deficit decreased to $98.9 billion or 2.4% of GDP in Q2 2013, from $104.9 billion or 2.5% of GDP in the Q1 2013.
  • Real spending on travel and tourism decelerated in Q2 2013, increasing at an annual rate of 2.5% after increasing 7.3% (revised) in Q1 2013.

For previously released US economic indicators visit US Bureau of Economic Analysis (BEA) http://www.bea.gov/index.htm

 NY

  • Private employment rose by 9,000 in August 2013 after an increase of 13,000 in July.
  • The unemployment rate rose to 8.6% in August from 8.4% in July.
  • The Manhattan hotel occupancy rate in September 2013 was 90.3%, up from 89.2% in September 2012.
  • The Manhattan Class A office vacancy rate was 9.7% in October 2013, while the average asking rent was $70 PSF.
  • Passengers in NYC area airports totaled 11million in August 2013, up 1.3% from August 2012.
  • In October 2013, the Manhattan Class A direct vacancy rate fell to 9.7% while the average rental rate remained at $70 PSF.
  • In the same month, the Downtown Class A direct vacancy rate remained at 11.6%, and the rental rate remained at $52 PSF.
  • The Manhattan Class A sublease vacancy rate rose to 2.3% in October from 2.2% in September.
  • For the twelve months ending September 2013: Building projects (including new, additions and alterations) that started construction in NYC fell by 19.9% and infrastructure (non-building) project starts fell by 9.2% from the twelve months ending September 2012.
  • Planned space for building project starts rose by 66.3% from the same period in 2012.
  • 2,118 residential building project starts began construction, a 15.9% decrease from the twelve months ending in September 2012. These starts contained 21,338 units, an increase of 82.1% from last year.
  • Total Broadway attendance was approximately 1.1 million during the five weeks ending November 3, 2013, up 9.2% from the same period last year.
  • Broadway revenue during this period was about $115.7 million, up 15.7% from last year.
  • In August 2013, 11 million passengers flew into and out of the region's airports, an increase of 1.3% from August 2012.
  • Domestic air carriers accounted for 6.8 million passengers, a 0.4% decrease from August 2012.
  • 4.1 million Passengers traveled with international air carriers in August 2013, a 4.1% increase from August 2012.
  • In September 2013, the average daily hotel room rate was $353, a 3.6% increase from September 2012.
  • Hotel occupancy was 90.3% in September 2013, up from 89.2% in September 2012.
  • The average daily hotel room rate increased the most in the lowest-priced hotels (those charging $230 and under).
  • Total ridership on MTA subways, trains and buses in September 2013 was 223.1 million, an increase of 3% from September 2012.
  • Subway ridership in September 2013 was 141.5 million, an increase of 3.3% from September 2012.

For more information please visit: http://www.nycedc.com/resources/economic-data

Euro Zone

  • GDP rose by 0.1% in the euro area during Q3 2013, compared with the previous quarter. In Q2 2013, GDP grew by 0.3%. Compared with the same quarter of the previous year, seasonally adjusted GDP fell by 0.4% in the euro area.
  • The Euro area unemployment rate was 12.2% in September 2013, stable compared with August. Unemployment rate has risen compared with September 2012, when it was 11.6%.
  • The euro area annual inflation was 0.7% in October 2013, down from 1.1% in September.
  • In September 2013 compared with August 2013, seasonally adjusted industrial production fell by 0.5% in the euro area. In September 2013 compared with September 2012, industrial production rose by 1.1% in the euro area.
  • In September 2013, compared with August 2013, the industrial producer prices rose by 0.1% in the euro area. In September 2013 compared with September 2012, industrial producer prices fell by 0.9% in the euro area.
  • In September 2013 compared with August 2013, production in the construction sector fell by 1.3% in the euro area. In September 2013, compared with September 2012, production in construction declined by 0.2% in the euro area.
  • In September 2013, compared with August 2013, the volume of retail trade fell by 0.6% in the euro area. In September 2013, compared with September 2012, the retail sales index rose by 0.3% in the euro area.
  • House prices, fell by 2.2% in the euro area in Q2 2013, compared with the same quarter of previous year. Compared with Q1 2013, house prices rose by 0.3% in the euro area.
  • In Q2 2013, business investment rate was 19.2% in the euro area, compared with 18.8% in Q12013.
  • The first estimate for the euro area trade in goods balance with the rest of the world in September 2013 gave a 13.1 billion euro surplus compared with + 8.6 billion in September 2012.  In September 2013 compared with August 2013, seasonally adjusted exports rose by 1% while imports fell by 0.3%.
  • The EU27 external current account recorded a surplus of 39.4 billion euro (1.2% of GDP) in Q2 2013, compared with a surplus of 2.6 billion (0.1% of GDP) in Q2 2012.
  • In Q2 2013, the EU27 made direct investment abroad of 64.8 billion euro, compared with 77.9 billion in Q2 2012, while direct investment from the rest of the world into the EU27 was 47 billion, compared with 54.4 billion in the same quarter of 2012. Portfolio investment recorded a net inflow of 4.8 billion compared with a net inflow of 113 billion in Q2 2012.

For more information please visit: http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/

Houston -  Click here

 

2. INVESTMENT/ECONOMIC INDICATORS

UK Economic Outlook 2013

The UK Economic Outlook Report for 2013 shows real grounds for optimism that the UK is finally on the road to recovery. The services sector continues to lead the recovery with retail sales picking up over the summer period and hotels and restaurants generally seeming busier. 

UK manufacturers have seen benefit from somewhat stronger trends recently, in our key European export markets. And the UK construction sector has also picked up from a low base in the past six months. Growth is expected to strengthen further in 2014, but businesses should not be complacent as there are still plenty of economic risks out there to be monitored and managed.

3. NEW INVESTMENTS

US Investments into the UK

Electra opens London office

Electra Information Systems (Electra), the leading provider of solutions for post-trade data aggregation, reconciliation, settlements and fee billing, announced that it has opened an office in London, which will be spearheaded by seasoned industry veteran, Andrew Kaufmann, Managing Director, Europe, the Middle East and Africa (EMEA). This expansion is a direct result of Electra’s growing client base in the EMEA region.

Electra Information Systems, Inc. 381 Park Avenue South, New York, NY 10016. Tel: 212 696 1595 Fax: 212 696 1599 Website: www.electrainfo.com

Electra Information Systems, 43-45 Portman Square, London W1H 6HN.  Andrew Kaufmann
Managing Director, EMEA. Tel: +44 (0) 203 623 3573 Mobile: +44 (0) 7909 487 940

Nexage opens London office

Boston-based Nexage announced its plans to open up an office in London to accelerate the mobile advertising company's expansion into European markets. Helping facilitate this move is Todd Tran. Tran will serve as managing director of Europe, and is the first Nexage employee across the pond. As the company begins to add to its London team, Nexage will continue to build out its downtown Boston headquarters, which currently houses around 60 employees. Nexage specializes in programmatic marketing and advertising sales technologies. Founded in 2006, the company was the first to market with their mobile real-time bidding model, and continues to be one of the leaders in the mobile advertising sector around the globe.

Nexage Headquarters, 101 Arch Street, Suite 1510, Boston, MA 02110. Tel: 617 874 5400 Website: www.nexage.com

iLEVEL opens office in London

iLEVEL, the cloud-based software provider to the private capital market, formally announced the opening of a new office in London, and the hiring of key personnel to grow the footprint of the iLEVEL Private Capital Data Platform in EMEA.

iLEVEL Solutions, 2 Penn Plaza, 4th Floor, New York, NY 10121. Tel: 646 746 1100 Fax: 646 746 1110 Website: www.ilevelsolutions.com

UK Investments into the US

The Exchange Lab opens US office

The Exchange Lab, the programmatic marketing intelligence and multi-platform media trading company has announced its expansion to the U.S. The company is opening offices in New York and San Francisco. The company has also named Mark Charkin as its new Chief Revenue Officer. He will be responsible for the company's global revenue growth and will oversee commercial development. The Exchange Lab now has five locations worldwide, as the New York and San Francisco offices join its Toronto office, Istanbul office, and London headquarters. The company also named Mark Charkin, former Executive Vice President of Advertising and Global Business Development for King (creators of Candy Crush Saga), as its new Chief Revenue Officer responsible for scaling global revenue and overseeing commercial development.

The Exchange Lab, 26th Floor, Centre Point, 101-103 New Oxford Street, London, WC1A 1DD.Tel: +44 (0) 203-701-3100 website: www.theexchangelab.com

New York, The Exchange Lab, 222 Broadway, 19th Floor, New York, New York, 10038. Tel. 917 353 4018

San Francisco, The Exchange Lab, 645 Harrison Street, Suite 200, San Francisco, CA 94107. Tel. 310 804 0951

Osborne Clarke opens New York office

UK-based law Firm, Osborne Clarke has announced the opening of an office in New York, USA. The New York office is situated at the heart of the city's creative and digital district, SoHo. Osborne Clarke is famous for its work in the advertising and digital business sectors and is regularly ranked independently as the go-to firm in Europe for this work. The new office will work seamlessly with their established office in Palo Alto (which opened in 2001) to provide an integrated coverage of the US Market. From its new base in the city, OC will make it’s our pan-European expertise available to New York clients and law firms. Tim Birt, Corporate Partner at Osborne Clarke is leading the firm's opening in New York

Osborne Clarke, One London Wall, London EC2Y 5EB, Tel: +44 207 105 7000 Email: enquiries@osborneclarke.com Website: www.osborneclarke.com

Osborne Clarke, 2nd Floor, 75 Spring Street, New York, NY 10012. Tel: 646 751 4690

4. TRADE SHOWS

UK

 

January 22-24, 2014 -The Educational Technology Show (BETT) - Olympia London
Website: www.bettshow.com

BETT is the world’s largest educational technology event.

 

Contact: Stewart Gough, Commercial Specialist Tel: +44 (0)20 7894 0459 Email: Stewart.Gough@trade.gov

 

February 9-11, 2014 – Pure London – Olympia, London
Website: www.purelondon.com

"Pure London is a trade fashion event for the mid to high end womenswear, footwear, and accessories. As well as hundreds of British and international brands, there are daily catwalk shows and a series of trend presentations held by industry experts such as WGSN and Drapers."

 

Contact: Sara Jones, Commercial Assistant Tel: +44 (0)20 7894 0451 Email: Sara.Jones@trade.gov

 

February 14-15, 2014 - The Franchise Show - ExCel London
Website: www.thefranchiseshow.co.uk

"Franchising, covering over 75 industries, is a tried and tested way of working for yourself, but not by yourself. Come see hundreds of exhibitors and attend dozens of free seminars designed for potential franchisees, those looking to franchise their business, as well as franchisors."

 

Contact: Chrystal Denys, Commercial Assistant Tel: +44 (0)20 7894 0432 Email: Chrystal.Denys@trade.gov

 

US

January 7-10, 2014 – International CES (Consumer Electronics Show) -Las Vegas, Nevada
Website: http://cesweb.org/Home.aspx 
International CES, more commonly known as the Consumer Electronics Show (CES), is an internationally renowned electronics and technology trade show, attracting major companies and industry professionals worldwide.

January 14-17, 2014 – Shooting Hunting Outdoor Trade Show and Conference - Las Vegas, Nevada
Website: http://shotshow.org/
“It is the world’s premier exposition of combined firearms, ammunition, law enforcement, cutlery, outdoor apparel, optics, and related products and services. The SHOT Show attracts buyers from all 50 states and more than 100 countries. It is owned by the National Shooting Sports Foundation.”

January 20-24, 2014 – World of Concrete 2014 -Las Vegas, Nevada
Website: http://worldofconcrete.com/

“Celebrating 40 years, WOC is the industry’s only annual international event dedicated to the commercial concrete and masonry construction industries showcasing leading industry suppliers. WOC features innovative tools, construction machinery, construction equipment, safety training courses and training, technologies and unlimited networking opportunities to give you new ways to sustain and grow your business.”

January 28-30, 2014 – DistribuTECH Conference and Exhibition - San Antonio, Texas
Website: http://www.distributech.com/index.html
"DistribuTECH is the utility industry’s leading annual transmission and distribution event, covering automation and control systems, energy efficiency, demand response, renewable energy integration, advanced metering, T&D system operation and reliability, power delivery equipment, commercial and industrial energy management technology and water utility technology.”

January 28-30, 2014 – International Production & Processing Expo - Atlanta, Georgia
Website: http://ippexpo.com/
“The International Production & Processing Expo is the world's largest annual poultry, meat and feed industry event of its kind. A wide range of international decision-makers attend this annual event to network and become informed on the latest technological developments and issues facing the industry.”

For more information please visit:  http://export.gov/unitedkingdom/events/ustradeevents/index.asp