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 BABC Investment News

January 2014

 

BABC - British-American Business Cuoncil logo1. Economic Indicators:

·         UK / London

·         US / NY

·         Euro Zone

 

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% in December, down from 2.1% in November.
  • The employment rate for August to October 2013 was 72%, up 0.4% from May to July 2013. The unemployment rate for August to October 2013 was 7.4%, down 0.3% from May to July 2013.
  • Between August to October 2012 and August to October 2013 total pay rose by 0.9% and regular pay rose by 0.8%
  • In the 12 months to November 2013 UK house prices increased by 5.4%, down from a 5.5% increase in the 12 months to October 2013.
  • Production output increased by 2.5% in November 2013, compared with November 2012.
  • Manufacturing output increased by 2.8% in November 2013, compared with November 2012.
  • In the year to December 2013 the output price index for home sales of manufactured products rose 1%. In the same period the total input price index fell by 1.2%.
  • The Index of Services increased by 2.1% in October 2013 compared with October 2012.
  • The seasonally adjusted estimate of construction output in November 2013 is estimated to have fallen by 4% (£395 million) when compared with October 2013.
  • 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 November 2013 was £16.5 billion. This was £0.9 billion higher than in November 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 £3.2 billion in November 2013.  The deficit on trade in goods was £9.4 billion. The surplus on trade in services was estimated at £6.2 billion.
  • There was a current account deficit of £20.7 billion in Q3 2013, up from a revised deficit of £6.2 billion (originally published as a deficit of £13 billion) in Q2 2013.
  • The number of visits to the UK by overseas residents in October 2013 was 2.95 million, 10% higher than the number in October 2012. During the period August to October 2013, overseas residents made 11% more visits to the UK than in the corresponding period a year earlier and they spent 8% more on these visits. In the 12 months to October 2013 the number of visits to the UK was 7% higher than a year earlier and earnings grew by 11%.
  • The estimated number of visits abroad by UK residents in October 2013 was 4.76 million, which fell when compared to October 2012. During the period August to October 2013, UK residents' visits abroad were up by 1% compared with the corresponding period a year earlier, and they spent 8% more on these visits. In the 12 months to October 2013 the number of visits abroad by UK residents grew 2% when compared with a year earlier and expenditure on these visits grew by 4%.

 

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 9.3% in Q3 2013, up from 6.9% in Q2 2013.
  • The percentage of the resident working age population who are unemployed and claiming Jobseekers’ Allowance in London was 3.1% in November 2013. There were 177,200 seasonally adjusted unemployment claimants in London in November 2013 compared to 183,000 in October 2013.
  • The Purchasing Managers’ Index (PMI) of business activity recorded 62.6 in November 2013 compared to 65 in October 2013.
  • The PMI for new orders for London firms recorded 64.8 in November 2013 compared to 66.4 in October 2013.
  • The PMI for the level of employment in London firms was 57.7 in November 2013, unchanged from October 2013.
  • The RICS survey shows a positive net balance of 99 for London house prices over the three months to November 2013.
  • The net house price expectations balance in London was 79 in November 2013.
  • For Greater London, the consumer confidence score decreased to -7 in November 2013 from - 2 in October 2013.
  • In the most recent 28 day period, (from 13 October 2013 to 9 November 2013) London’s underground and buses had 290.8 million passenger journeys; 187 million by bus and 103.8 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 4.1% in Q3 2013. Corporate profits increased $39.2 billion in Q3.
  • In November personal income increased $30.1 billion, or 0.2%, disposable personal income (DPI) increased$16.2 billion, or 0.1% and personal consumption expenditures (PCE) increased $63 billion, or 0.5%.
  • The November 2013 international trade deficit decreased 12.9% from October, to $34.3 billion. Exports increased 0.9%, to $194.9 billion, and imports fell 1.4%, to $229.1 billion.
  • The U.S. current account deficit decreased to $94.8 billion or 2.2% of GDP in Q3 2013, from $96.6 billion or 2.3% of GDP in Q2 2013.
  • Real spending on travel and tourism decelerated in Q3 2013, increasing at an annual rate of 2.5% after increasing 3.5% (revised) in Q2 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 8,000 in October 2013 after a decrease of 4,100 in September.
  • The unemployment rate rose to 8.7% in October from 8.6% in September.
  • The Manhattan hotel occupancy rate in October 2013 was 91.3%, down from 91.8% in October 2012.
  • The Manhattan Class A office vacancy rate was 10.2% in November 2013, while the average asking rent was $70 PSF.
  • Passengers in NYC area airports totaled 9.1 million in September 2013, up 1.9% from September 2012.
  • In November 2013, the Manhattan Class A direct vacancy rate rose to 10.2% while the average rental rate remained at $70 PSF.
  • In the same month, the Downtown Class a direct vacancy rate rose to 13.8%, and the rental rate rose to $54 PSF.
  • The Manhattan Class A sublease vacancy rate fell to 2.2% in November from 2.3% in October.
  • For the twelve months ending October  2013: Building projects (including new, additions and alterations) that started construction in NYC fell by 15.6%, and infrastructure (non-building) project starts fell by 1.7% from the twelve months ending October 2012.
  • Planned space for building project starts rose by 49.7% from the same period in 2012.
  • 2,152 residential building project starts began construction, a 15.3% decrease from the twelve months ending in October 2012. These starts contained 20,596 units, an increase of 62.8% from last year.
  • Total Broadway attendance was approximately 994,000 during the four weeks ending December 1, 2013, up 16.6% from the same period last year.
  • Broadway revenue during this period was about $105.3 million, up 29.9% from last year.
  • In September 2013, 9.1 million passengers flew into and out of the region's airports, an increase of 1.9% from September 2012.
  • Domestic air carriers accounted for 5.8 million passengers, a 1.3% increase from September 2012.
  • 3.4 million Passengers traveled with international air carriers in September 2013, a 3% increase from September 2012.
  • In October 2013, the average daily hotel room rate was $353, a 4.6% increase from October 2012.
  • Hotel occupancy was 91.3% in October 2013, down from 91.8% in October 2012.
  • The average daily hotel room rate increased the most in the lowest-priced hotels (those charging $240 and under).
  • Total ridership on MTA subways, trains and buses in October 2013 was 246.4 million, an increase of 13.4% from October 2012.
  • Subway ridership in October 2013 was 156.4 million, an increase of 14% from October 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 12.1% in November 2013. Unemployment rate has risen compared with November 2012, when it was 11.8%.
  • The euro area annual inflation was 0.8% in December 2013, down from 0.9% in November.
  • In October 2013 compared with September 2013, seasonally adjusted industrial production fell by 1.1% in the euro area. In October 2013 compared with October 2012, industrial production increased by 0.2% in the euro area.
  • In November 2013, compared with October 2013, the industrial producer prices fell by 0.1% in the euro area. In November 2013 compared with November 2012, industrial producer prices decreased by 1.2% in the euro area.
  • In October 2013 compared with September 2013, production in the construction sector fell by 1.2% in the euro area. In October 2013, compared with October 2012, production in construction declined by 0.5% in the euro area.
  • In November 2013, compared with October 2013, the volume of retail trade rose by 1.4% in the euro area. In November 2013, compared with November 2012, the retail sales index increased by 1.6% 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 October 2013 gave a 17.2 billion euro surplus compared with + 9.6 billion in October 2012.  In October 2013 compared with September 2013, seasonally adjusted exports rose by 0.2% while imports fell by 1.2%.
  • The EU28 external current account recorded a surplus of 35.6 billion euro (1.1% of GDP) in Q3 2013, compared with a surplus of 30.3 billion (0.9% of GDP) in Q3 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/

2. INVESTMENT INDICATORS

UK Investment Position: Q3 2013

The UK financial account showed a net inflow (that is, inward investment) of £30 billion in Q3 2013, compared with a net outflow of £1.8 billion in Q2 2013. UK investment abroad switched from investment (outflow) of £27.2 billion in Q2 2013 to disinvestment (inflow) of £205.8 billion in Q3 2013. Investment in the UK switched from investment of £25.4 billion in Q2 2013 to disinvestment of £175.8 billion in Q3 2013.

Direct investment recorded a net outflow (that is, outward investment) of £0.6 billion in Q3 2013, a decrease from a net outflow of £2.7 billion in Q2 2013. Direct investment abroad decreased in Q3 2013 to investment of £6.4 billion from investment of £7.7 billion in Q2 2013. Direct investment in the UK increased by £0.7 billion in Q3 2013 to £5.8 billion.

Portfolio investment recorded a net outflow of £44.4 billion in Q3 2013, a switch from a net inflow of £5.7 billion in Q2 2013. The portfolio investment abroad in Q3 2013 showed net disinvestment in equity securities which was almost offset by net investment in debt securities. This followed net disinvestment of £18.1 billion for total portfolio investment abroad in Q2 2013. Portfolio investment in the UK showed net disinvestment of £44.4 billion in Q3 2013, an increase from net disinvestment of £12.4 billion in Q2 2013.

Other investment in Q3 2013 recorded net outflows of £2.2 billion compared with net inflows of £39.1 billion in Q2 2013.Other investment abroad recorded net disinvestment of £135.1 billion in Q3 2013, following net disinvestment of £6.4 billion in Q2 2013. Other investment in the UK showed net disinvestment of £137.3 billion in Q3 2013, a switch from net investment of £32.7 billion in Q2 2013.

The international investment position showed net external assets (that is, assets exceed liabilities) of £97.6 billion at the end of Q3 2013 compared with net external assets of £67.6 billion at the end of Q2 2013. UK external assets abroad decreased by £664.5 billion from the end of Q2 2013 to a level of £9,774.7 billion at the end of Q3 2013. UK external liabilities decreased by £694.5 billion in Q3 2013 to a level of £9,677.1 billion.

US Investment Position: Q3 2013

In Q3 2013, Income receipts on U.S.-owned assets abroad increased to $194.9 billion from $193.8 billion. Income payments on foreign-owned assets in the United States decreased to $132.8 billion from $135.6 billion.

Net financial inflows were $67.3 billion in Q32013, up from $65.5 billion in Q2.

U.S.-owned assets abroad increased $74.3 billion in Q3 2013 after increasing $106.2 billion in Q2. Foreign-owned assets in the United States increased $148.2 billion in Q3 2013 after increasing $168.2 billion in Q2.

Outflows of U.S. direct investment abroad were $95.8 billion in Q3 2013, down from $97 billion in Q12. Inflows of foreign direct investment in the United States were $44.2 billion in Q3 2013, up from $40.6 billion in Q2.

For full report please visit: link

U.S. Net International Investment Position: Q3 2013

The U.S. net international investment position at the end of Q3 2013 was -$4,165.6 billion (preliminary) as the value of foreign investments in the United States exceeded the value of U.S. investments abroad. The U.S. net international investment position increased 6.5% in Q3 2013, compared with a 5.2% decrease in Q2.

U.S.-owned assets abroad were $21,590.9 billion at the end of Q3 2013 compared with $20,969.4 billion at the end of Q2. Foreign-owned assets in the United States were $25,756.5 billion at the end of Q3 2013 compared with $25,424.4 billion at the end of Q2.

For full report please visit link

3. NEW INVESTMENTS

US Investments into the UK

Iris Data Services Opens London Office

 

Iris Data Services Inc. announced it has formed a private limited company called Iris Data Systems Ltd. and has opened an office and data centre in London under that name. The office will service Iris' U.K. and European clients. The data centre will allow Iris to locally process data for European companies so that the data never leaves the EU. The company, which has its U.S. headquarters in Olathe provides e-discovery services, which includes the collection, filtering, review and production of electronic information pertinent to a legal case. That includes emails, Microsoft Word documents, social media and text messages. This is its first location in the United Kingdom.

 

Iris Data Services Inc, 17795 W 106th Street, Suite 201, Olathe, KS 66061. Tel: 913 937 0590 Website: www.irisds.com

 

Iris Data Systems Ltd, 35 Imperial Way, Croydon CR0 4RR. Tel: +44 (0) 203 514 4801

Boies Schiller & Flexner Opens Office in the UK
New York-based law firm Boies Schiller & Flexner is opening an office in London and handling the new office’s management will be the former Bingham partner Natasha Harrison, who has been with Binghams as a litigator since 2004.  Boies Schiller advise such high profile clients as Goldman Sachs and Barclays on litigation and investment banking issues.

Boies Schiller & Flexner, 575 Lexington Avenue, 7th Floor, New York, NY 10022 Tel: 212 446 2300 Fax: 212 446 2350 Website: www.bsfllp.com

UK Investments into the US

Glow Digital Media opens office in the US

 

Headquartered in London, Glow Digital Media (Glow), global provider of Facebook technology solutions, has announced that it is has widened its reach into the US market with the launch of a New York office. Glow opened an office in Los Angeles earlier this year so that it could promote its proprietary platform, Glow Machine to the US market. One of only 14 Facebook strategic Preferred Marketing Developers (sPMD), Glow has carved a successful niche within the US as the leading technology provider to provide clients with true ROI through Facebook advertising. Heading up the New York office is Ondriona Monty.

 

Glow Digital Media, 1st Floor, 23 Tavistock Street, London, WC2E 7NX. Tel: +44 (0)20 3588 3401  Email: hello@thisisglow.com Website: www.thisisglow.com

 

Glow Digital Media, 85 Delancey Street, Suite 44, New York, New York 10002. Mobile 348 534 6608

blur Group opens US office

blur Group, the company that is reinventing commerce at blurgroup.com announces the opening of its Strategic Development office in Southern California. This office will be led by Mitch Faigen, blur's Chief Strategy and Exchange Development Officer who has strong business connections in the area. This is blur Group’s second office in the US. The team in California will be responsible for leading the development of blur's strategic plans and business model, measurement of metrics that drive revenues and profitability, and development of blur's future merger, acquisitions and joint ventures. The Strategic Development office in Newport Beach, CA is opening to support rapid future growth, in a West Coast location able to take advantage of the area’s technology business, as well as providing a second office in the Company’s largest market.

blur (Group) plc, Westbourne Studios, London, W10 5JJ. Tel: +44 20 3176 0548 Website: www.blurgroup.com , Philip Letts - CEO

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 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