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  BABC Investment News

 

March 2014

 

1. Economic Indicators:

·         UK / London

·         US / NY

·         Euro Zone

 

2. Investment Indicators:

·         UK / US / Europe / Global

 

3. UK/US Exports/Imports

 

4. New Investments:

·         US Investments into UK

·         UK Investments into US

 

 5. Trade Shows:

·         UK

·         US

1. ECONOMIC INDICATORS

UK

 

  • UK Gross Domestic Product (GDP) in volume terms was estimated to be 0.7% in Q4 2013, unrevised from the previously published estimate.
  • Consumer Price Index (CPI) annual inflation was 1.9% in January 2014, down from 2% in December 2013.
  • The employment rate for October to December 2013 was 72.1%, up 0.3% from July to September 2013. The unemployment rate for October to December 2013 was 7.2%, down 0.4% from July to September 2013.
  • Between October to December 2012 and October to December 2013 total pay rose by 1.1% and regular pay rose by 1%.
  • UK house prices increased by 5.5% in December 2013 compared with a year earlier, up from 5.4% in November 2013.
  • Production output increased by 1.8% in December 2013, compared with December 2012.
  • Manufacturing output increased by 1.5% in December 2013, compared with December 2012.
  • In the year to January 2014 the output price index for home sales of manufactured products rose 0.9%. In the same period the total input price index fell by 3.1%.
  • The Index of Services increased by 3.2% in December 2013 compared with December 2012.
  • The seasonally adjusted estimate of construction output in Q4 2013 is estimated to have risen by 0.2% when compared with Q3 2013.
  • Year-on- year estimates of the quantity bought in the retail industry showed strong growth for the second consecutive month; in January 2014, increasing by 4.3%. With store price inflation growth, as measured by the implied price deflator, slowing to 0.2% (the lowest since September 2009), and the amount spent in January 2014 increased by 4.4% compared with January 2013.
  • Public Sector Net Borrowing in January 2014 was in surplus by £4.7 billion. This surplus was lower than in January 2013.
  • In Q4 2013, Business investment rose by an estimated £0.8 billion (2.4%) compared with the previous quarter and is 8.5% higher compared with Q4 2012.
  • The UK’s deficit on seasonally adjusted trade in goods and services was £1 billion in December 2013.  The deficit on trade in goods was £7.7 billion. The surplus on trade in services was estimated at £6.7 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 December 2013 fell by 2%, when compared to December 2012. During the period October to December 2013, overseas residents made 2% more visits to the UK than in the corresponding period a year earlier and they spent 16% more on these visits. In the 12 months to December 2013 the number of visits to the UK was 6% higher than a year earlier and earnings grew by 13%.
  • The estimated number of visits abroad by UK residents in December 2013 was 3 million, which is similar to the number of visits abroad in December 2012. During the period October to December 2013, the number of UK residents' visits abroad decreased by 2% when compared with the corresponding period a year earlier, but they spent 7% more on these visits. In the 12 months to December 2013 the number of visits abroad by UK residents grew 3% when compared with a year earlier and expenditure on these visits grew by 7%.

 

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 15.6% in Q4 2013, up from 9% in Q3 2013.
  • The percentage of the resident working age population who are unemployed and claiming Jobseekers’ Allowance in London was 3% in January 2014. There were 171,400 seasonally adjusted unemployment claimants in London in January 2014 compared to an upwardly-revised 174,300 in December 2013.
  • The Purchasing Managers’ Index (PMI) of business activity recorded 57 in January 2014 compared to 60.3 in December 2013.
  • The PMI for new orders for London firms recorded 61.1in January 2014 compared to 63 in December 2013.
  • The PMI for the level of employment in London firms was 58.5 in January 2014, compared to 57.4 in December 2013.
  • The RICS survey shows a positive net balance of 87 for London house prices over the three months to January 2014.
  • The net house price expectations balance in London was 69 in January 2014.
  • For Greater London, the consumer confidence score increased to -2 in January 2014 from - 6 in December 2013.
  • In the most recent 28 day period, (from 8 December 2013 to 4 January 2014) London’s underground and buses had 239.4 million passenger journeys; 155.6 million by bus and 83.9 million by Underground.
  •  The moving average annual rate of growth in passenger journeys increased to 1.6% from 1.4% in 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 2.4% in Q4 2013. For 2013 overall, GDP increased 1.9%.
  • In January 2014, personal income increased $43.9 billion, or 0.3%, disposable personal income (DPI) increased $45.2 billion, or 0.4% percent, and personal consumption expenditures (PCE) increased $48.1 billion, or 0.4%.
  • The December 2013 international trade deficit increased 12% from November, to $38.7 billion. Exports decreased 1.8%, to $191.3 billion, and imports rose 0.3%, to $230.0 billion.
  • 2013 international trade deficit decreased 11.8% to $471.5 billion. Exports rose 2.8%, to $2.3 trillion. Imports declined 0.1%, to $2.7 trillion.
  • 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 in New York City by 79,400 between 2012 and 2013.
  • The average annual unemployment rate fell to 8.5% in 2013 from 9.2% in 2012.
  • The Manhattan hotel occupancy rate in December 2013 was 90.3%, unchanged from December 2012.
  • The Manhattan Class A office vacancy rate was 10.2% in January 2014, while the average asking rent was $70 PSF
  • Passengers in NYC area airports totaled 8.5 million in November 2013, up 1.2% from November 2012.
  • In January 2014, the Manhattan Class A direct vacancy rate remained at 10.2% while the average rental rate remained at $70 PSF.
  • In the same month, the Downtown Class A direct vacancy rate fell to 13.1%, and the rental rate remained at $54 PSF.
  • The Manhattan Class A sublease vacancy rate rose to 2% in January from 1.9% in December.
  • For the twelve months ending December 2013: Building projects (including new, additions and alterations) that started construction in NYC fell by 1.4%, and infrastructure (non-building) project starts rose by 4.9% from the twelve months ending December 2012.
  • Planned space for building project starts rose by 37.9% from the same period in 2012.
  • 2,628 residential building project starts began construction, a 4.2% increase from the twelve months ending in December 2012. These starts contained 23,054 units, an increase of 77% from last year.
  • In November 2013, 8.5 million passengers flew into and out of the region's airports, an increase of 1.2% from November 2012.
  • Domestic air carriers accounted for 5.7 million passengers, a 0.1% decrease from November 2012.
  • 2.8 million Passengers traveled with international air carriers in November 2013, a 3.9% increase from November 2012.
  • Total ridership on MTA subways, trains and buses in December 2013 was 220.2 million, an increase of 2.3% from December 2012.
  • Subway ridership in December 2013 was 142.5 million, an increase of 3.7% from December 2012.
  • Total Broadway attendance was approximately 1.03 million during the five weeks ending February 2, 2014, up 4.5% from the same period last year.
  • Broadway revenue during this period was about $106.7 million, up 11.5% from last year.
  • In December 2013, the average daily hotel room rate was $352, a 3.5% increase from December 2012
  • Hotel occupancy was 90.3% in December 2013, unchanged from December 2012.
  • The average daily hotel room rate increased the most in hotels charging between $285 and $385 per night.

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

Euro Zone

  • GDP rose by 0.3% in the euro area during Q4 2013, compared with the previous quarter. In Q3 2013, GDP grew by 0.1%. Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.5% in the euro area.
  • The Euro area unemployment rate was 12% in December 2013. It was 11.9% in December 2012.
  • The euro area annual inflation was 0.8% in January 2014, stable compared to December 2013. A year earlier, the rate was 2%.
  • In December 2013 compared with November 2013, seasonally adjusted industrial production fell by 0.7% in the euro area. In December 2013 compared with December 2012, industrial production grew by 0.5% in the euro area.
  • In December 2013, compared with November 2013, the industrial producer prices rose by 0.2% in the euro area. In December 2013 compared with December 2012, industrial producer prices decreased by 0.8% in the euro area. The average industrial producer prices for the year 2013, compared with 2012, dropped by 0.2% in the euro area.
  • In November 2013 compared with October 2013, production in the construction sector fell by 0.6% in the euro area. In November 2013, compared with November 2012, production in construction declined by 1.7% in the November 2013.
  • In December 2013 compared with November 2013, the volume of retail trade fell by 1.6% in the euro area. In December 2013, compared with December 2012, the retail sales index decreased by 1% in the euro area. The average volume of retail trade for the year, 2013, compared with 2012, fell by 0.9% in the euro area.
  • House prices, fell by 1.3% in the euro area in Q3 2013, compared with the same quarter of previous year. Compared with Q2 2013, house prices rose by 0.6% in the euro area.
  • In Q3 2013, business investment rate was 19% in the euro area, compared with 19.3% in Q22013.
  • The first estimate for the December 2013 euro area trade in goods balance with the rest of the world gave a 13.9 billion euro surplus compared with + 9.8 billion in December 2012.  During 2013, euro area trade in goods recorded a surplus of 153.8 bn euro, compared with + 79.7 bn in 2012.
  • The EU28 external current account recorded a surplus of 31.4 billion euro (1% of GDP) in Q3 2013, down from a surplus of 33.3 billion (1% of GDP) in Q3 2012.
  • In Q3 2013, the EU28 made direct investment abroad of 50.9 billion euro, compared with 62.7 billion in Q3 2012, while direct investment from the rest of the world into the EU28 was 30.4 billion, compared with 89.1 billion in the same quarter of 2012. Portfolio investment recorded a net outflow of 58.5 billion compared with a net outflow of 171.6 billion in Q3 2012.

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

2. INVESTMENT INDICATORS

FDI Involving UK Companies, 2012

Net investment flows into the UK (inward investment) increased in 2012 to £35.4 billion (current prices), from £28.9 billion in 2011. However, both of these estimates are well below flows of net investment into the UK seen between 2005 and 2007.

The net flow of direct investment abroad by UK companies (outward investment) decreased from £60.1 billion in 2011 to £26.5 billion in 2012, a fall of £33.6 billion.

Net investment flows (outward investment) to Europe declined sharply in 2012 compared with 2011, falling from a net investment of £27.3 billion in 2011 to a net disinvestment of £0.7 billion in 2012.

Most sectors involved in net investment abroad (outward investment) saw a decline in 2012, most notably within the services sector, falling from an investment of £42.2 billion in 2011 to an investment of £0.03 billion in 2012. This decline was mainly in the information and communication, financial services and the electricity, gas, water and waste industries.

The net position of direct investment abroad by UK companies stood at £1,088 billion (£1.1 trillion) by the end of 2012 (current prices). This was similar to levels reported at the end of 2011 and 2008. The net position of direct investment in the UK by overseas companies at the end of 2012 was estimated at £936 billion, an increase on the value reported at the end of 2011 (£793 billion).

Net earnings from direct investment by UK companies’ abroad (outward earnings) amounted to £80.2 billion in 2012. This was a decrease of £19.8 billion on the amount earned in 2011 and a return to similar levels seen in 2010. Net earnings from FDI in the UK (inward earnings) decreased slightly in 2012 to £42.7 billion (current prices), a decrease of £1.7 billion on the amount reported in 2011.

US – UK FDI Key Figures

US remains leading source of inward FDI stock in the UK with US firms holding 25% of the UK’s total stock, representing 200 Billion pounds of UK-based investments.

In 2012/13 the US strengthened its position as the largest foreign investor in the UK with 396 projects, up by 18% year-on-year, and involving almost 50,000 new and safeguarded jobs.

Global Investment Trends Monitor

Global foreign direct investment (FDI) flows rose by 11% in 2013, to an estimated US$1.46 trillion – a level comparable to the pre-crisis average, the latest edition of the UNCTAD Global Investment Trends Monitor reports. However, developed countries remain trapped in a historically low share of global FDI, accounting for only 39%.

The UNCTAD report analyses the most recent trends in global investment and assesses their prospects for 2014–2015.

It covers FDI trends in developed, developing and transition economies, as well as in major regionally integrated groupings and initiatives such as the Asia-Pacific Economic Cooperation forum (APEC), the Trans-Pacific Partnership agreement and the Transatlantic Trade and Investment Partnership.

An in-depth analysis of FDI trends will feature in the forthcoming World Investment Report 2014, to be published in June 2014

3. UK/US EXPORTS/IMPORTS

 

UK Exports of Goods to the United States

UK Exports of Services to the United States

UK Import of Goods from the United States

UK Import of Services from the United States

Total bilateral trade

 

 

 

 

 

 

 

 

 

 

 

2013*

40,961

-0.6%

N/A

N/A

27,643

-7.6%

N/A

N/A

N/A

2012

41,204

3.6%

42,994

3.3%

29,931

4.2%

20,713

4.7%

134,842

2011

39,776

5.0%

41,686

5.1%

28,732

6.6%

19,777

0.4%

129,971

2010

37,898

12.0%

39,648

8.5%

26,956

11.4%

19,698

1.1%

124,200

2009

33,850

-3.8%

36,534

-4.2%

24,197

-5.1%

19,493

-0.5%

114,074

4. NEW INVESTMENTS

US Investments into the UK

LifeCell opens new UK office

LifeCell, a New Jersey-based supplier of medical products, has opened an office in Oxford.

LifeCell Corporation, 95 Corporate Drive, Bridgewater, NJ 08807 Tel: 908 947 1100 Website: www.lifecell.com

LifeCell EMEA Ltd, Langford Business Park, Langford Locks,Kidlington OX5 1GF

Career Partners International opens additional office locations

Career Partners International, the world’s largest global provider of outplacement services and talent management solutions, is pleased to announce the addition of new office locations in Finland, Italy and the United Kingdom. The addition of these locations expands the firm’s global footprint to more than 220 offices in 48 countries.

Career Partners International, 6340 Quadrangle Dr, Chapel Hill, NC 27517, 919-4014273 Website: www.cpiworld.com

Melissa Data Expands International presence with new London Office

Melissa Data, a leading provider of contact data quality and integration solutions, announced its new office in central London, established to further the company's support of international data quality markets. Data quality veteran Barley Laing, former CEO of leading web services company World Address, is set to spearhead Melissa Data's growing role in UK business and joins the company's international team as managing director of UK operations. Building on nearly 30 years as a global data quality leader, Melissa Data's international expansion is essential to the company's ongoing growth strategy and enables local sales and support for a global clientele.

Corporate Headquarters, Melissa Data, 22382 Avenida Empresa, Rancho Santa Margarita, CA 92688-2112 Tel:  949 858 3000 website: www.melissadata.com

Melissa Data UK, Studio 5, 155 Commercial Street, London E1 6BJ Tel: +44 (0)84 5869 210

UK Investments into the US

Kilgour Industries Invests in Plant in the US

Kilgour Industries, a UK-based supplier of aircraft airframe and engine machined products, is to invest $27.3 million in its first US operation in Martinsville, Virginia. The new plant will create 155 jobs. Kilgour Industries, a family-owned company launched in 1966, supplies aircraft airframe and engine machined products in aluminum, steel and titanium to the major aerospace manufacturers. The firm specializes in computerized numerical control machining, wet chemical surface treatments

Kilgour Industries, Kilgour House, Redmarsh Drive, Redmarsh Industrial Estate, Thornton-Cleveleys,Lancashire FY5 4HP. Tel: +44 (0) 1253 821953 Fax: +44 (0) 1253 823126 Email:  info@kilgour.co.uk Website: www.kilgour.co.uk

DAC Beachcroft opens  office in New York

International law firm DAC Beachcroft has opened a representative office in New York, with effect from Monday 20 January. The office will be used to promote the firm's multi-jurisdictional insurance capabilities, especially across Latin America, as well as its international commercial litigation and arbitration capabilities. Specialists from DAC Beachcroft's international network will be available at the New York representative office on a rotating basis regularly throughout the year. Located at One Battery Park Plaza in Manhattan, the office opening forms part of a strategic alliance agreed with specialist New York insurance law firm, Abrams Gorelick Friedman & Jacobson (AGF&J), to work more closely together in New York and London to better serve the interests of their insurance clients.

DAC Beachcroft, 100 Fetter Lane, London EC4A 1BN. Tel +44 (0) 20 7242 1011 F +44 (0) 20 7831 6630 Website: www.dacbeachcroft.com

NewVoice Media Opens office in New York

NewVoiceMedia, a leading global provider of cloud contact center solutions, is continuing its rapid expansion throughout North America with a new office in New York City. The announcement is an integral part of NewVoiceMedia’s plans for global expansion and closely follows the opening of its new headquarters for North America in San Francisco, and the appointment of Jamison Powell as Vice President Sales, North America Eastern Region. The company is growing at more than twice the rate of the rapidly expanding cloud contact center market and has doubled its number of staff over the last year to meet increased demand for its technology. The new office will support this substantial growth and further strengthen NewVoiceMedia’s presence in the region.

NewVoiceMedia, Belvedere Basing View, Basingstoke RG21 4HG. Tel: 0207 206 8888 website: www.newvoicemedia.com

NewVoiceMedia, 90 Park Avenue, Suite 1749, New York NY 10016. Tel: Tel: 347 584 8547

5. TRADE SHOWS

UK

April 1-3, 2014 - Sustainability Live! - Birmingham NEC
Website:  http://www.sustainabilitylive.com/

Sustainabilitylive! brings together the successful ET&ES, ICU, NEMEX and IWEX exhibitions. Focusing on the environmental, land remediation, energy and water sectors respectively, the event stages conferences, seminars and networking with industry achievement and excellence recognised at the Industry Achievement Awards ceremonies.

Contact; Claudia Colombo, Commercial Specialist Tel: +44 (0)20 7894 0443 Email: Claudia.Colombo@trade.gov

April 7-11, 2014 - MACH 2014 - NEC Birmingham
Website:  http://www.machexhibition.com/

MACH is the UK’s premier manufacturing technologies event, encompassing metalcutting and metalforming machine tools along with all ancillary and related products and services.

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

April 8-10, 2014 - London Book Fair 2014 - Earls Court Exhibition Centre
Website:  http://www.londonbookfair.co.uk/

The London Book fair is the global publishing community's leading spring forum for booksellers, publishers, librarians and book production services worldwide. Ideally timed to provide you with a concentrated 3-day trading and educational platform offering access to the world's books, real business contacts and shared knowledge. Everything you need to compete effectively in today's fast paced marketplace.

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

April 13-14, 2014 - Natural Products Europe - Olympia London
Website:  http://www.naturalproducts.co.uk/

Natural and Organic Products Europe is the largest trade event of its type in the UK. Now in its thirteenth year the show has matured along with the industry into a professional platform where the whole of the natural and organic sector meets every year to create, develop and secure business.

Contact: Cheryl Withers, Commercial Assistant Tel: +44 (0)20 7894 0419 Email; Cheryl.Withers@trade.gov

April 21 - May 1, 2014 - Naidex 2013 -NEC Birmingham
Website:  http://www.naidex.co.uk/

Naidex is the UK’s number one event for the national homecare and disability market.

Contact: Cheryl Withers, Commercial Assistant Tel: +44 (0)20 7894 0419 Email: Cheryl.Withers@trade.gov

April 29-30, 2014 - Counter Terror Expo UK  - Olympia, London
Website:  http://www.counterterrorexpo.com/

“Counter Terror Expo is the critically acclaimed, highly specialised, event for those who are tasked with the demanding and complex role of delivering a robust defence against the threat posed from international terrorism.”

Contact: PJ Menner, Commercial Specialist Tel: +44 (0)20 7894 0470 Email: PJ.Menner@trade.gov

April 29 – May 1, 2014 -Infosecurity Europe 2014 -Earl's Court, London
Website: http://www.infosec.co.uk/

Infosec is Europe’s number one information security event and most comprehensive convergence of information security professionals.

Contact: Richard Stanbridge, Senior Commercial Specialist/Head of Industries Team Tel: +44 (0)20 7894 0437 Email: Richard.Stanbridge@trade.gov

 

US

 

April 1-3, 2014 – WasteExpo 2014 – Atlanta, GA
Website: www.wasteexpo.com/

Year after year, WasteExpo is the industry's largest conference and tradeshow of its kind, serving both the public and private sectors. And this year, we’re offering you more. More exhibitors, education, solutions, and more connections.

April 7-10 2014 – The 2014 NAB Show – Las Vegas, NV
Website: www.nabshow.com

NAB Show® is the world's largest electronic media show covering filmed entertainment and the development, management and delivery of content across all mediums. With more than 93,000 Attendees from 156 countries and 1,550+ Exhibitors, NAB Show is the ultimate marketplace for digital media and entertainment. From creation to consumption, across multiple platforms and countless nationalities, NAB Show is home to the solutions that transcend traditional broadcasting and embrace content delivery to new devices in new ways.

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