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  BABC Investment News

October 2014

 

1. Economic Indicators:

·         UK / London

·         US / NY

·         Euro Zone

 

2. Investment /Economic Indicators:

·         UK / US / Europe / Global

 

3. UK/US Exports/Imports

 

4.  UK/EU & Non-EU Exports/Imports

 

5. New Investments:

·         US Investments into UK

·         UK Investments into US

 

 6. Trade Shows:

·         UK

·         US

1. ECONOMIC INDICATORS

UK

 

  • UK gross domestic product (GDP) in volume terms was estimated to have increased by 0.9% in Q2 2014, revised up from 0.8% in the previously published estimate
  • Consumer Price Index (CPI) annual inflation was 1.2% in September 2014, down from 1.5% in August.
  • For June to August 2014, 73.0% of people aged from 16 to 64 were in work, up by 0.1% from March to May 2014 and up by 1.5% from a year earlier.
  • UK house prices increased by 11.7% in the year to August 2014, unchanged from the year to July 2014.
  • Production output increased by 2.5% in August 2014, compared with August 2013.
  • Manufacturing output increased by 3.9% in August 2014, compared with August 2013.
  • In the year to August 2014 the output price index for home sales of manufactured products fell 0.3%. In the same period the total input price index fell 7.2%.
  • The Index of Services increased by 3.4% in July 2014 compared with July 2013
  • In August 2014, output in the construction industry was estimated to have fallen by 3.9% compared with July 2014.
  • In August 2014, the amount spent in the retail industry increased by 0.2% compared with July 2014 and by 2.7% compared with August 2013.
  • Business investment increased by an estimated £1.4 billion (3.3%) since Q1 2014. It increased by 11% compared with the same quarter a year ago, the largest annual increase since Q1 2007.     
  • The UK’s deficit on seasonally adjusted trade in goods and services was £1.9 billion in August 2014. The deficit on trade in goods was £9.1 billion. The surplus on trade in services was estimated at £7.2 billion.
  • There was a current account deficit of £23.1 billion in Q2 2014, up from a revised deficit of £20.5 billion (originally published as a deficit of £18.5 billion) in Q1 2014.
  • UK residents made 16.7million visits abroad in Q2 2014. This was 5.1% more than in the same period a year earlier.
  • Visits to the UK continued to grow in Q2 2014, with the number of visits increasing by 7.2% compared with the same quarter a year earlier, to 9.5 million visits.

 

For previously released UK economic indicators visit National Statistics: Link

LONDON

  • London’s annual growth in output increased to 3.5% in Q1 2014 from 3.1% in Q4 2013.
  • London’s annual employment growth decreased to 3.7% in Q1 2014 from 4.1% in Q4 2013.
  • Annual house price inflation in London was 19.4% in Q2 2014, up from 16% in Q1 2014.
  • The claimant count unemployment rate in London fell to 2.6% in August 2014. There were 141,900 seasonally adjusted unemployment claimants in London in August 2014 compared to an upwardly-revised 145,500 in July 2014.
  • The Purchasing Managers’ Index (PMI) of business activity recorded 58.7 in August 2014, compared to 59.7 in July 2014.
  • The PMI for new orders for London firms recorded 58.1 in August 2014 down from 59.9 in July 2014.
  • The PMI for the level of employment in London firms was 53.5 in August 2014, compared to 55.9 in July 2014.
  • The RICS Residential Market Survey shows a positive net balance of 9 for London house prices over the three months to August 2014.
  • The net house price expectations balance in London was -14 in August 2014.
  • For Greater London, the consumer confidence score increased to 6 in August 2014, compared to 2 in July 2014.
  • In the most recent 28 day period, (from 20 July 2014 to 16 August 2014) London’s underground and buses had 266.4 million passenger journeys; 169.1 million by bus and 97.3 million by Underground.
  •  The moving average annual rate of growth in passenger journeys increased to 2% from an upwardly revised 1.6% in the previous period.

 

For more information please visit: Link

 

US  

 

  • Real gross domestic product (GDP) increased at an annual rate of 4.6% in Q2 2014.Corporate profits increased $164.1 billion (8.4% at a quarterly rate) in Q2.
  • In August Personal income increased $47.3 billion, or 0.3%, disposable personal income (DPI) increased $35.2 billion, or 0.3%, and personal consumption expenditures (PCE) increased $57.5 billion, or 0.5%.
  • The August 2014 international trade deficit decreased 0.5% from July, to $40.1 billion. Exports increased 0.2% percent, to $198.5 billion, and imports rose 0.1%, to $238.6 billion.
  • The U.S. current account deficit decreased to $98.5 billion or 2.3% of GDP in Q2 2014, from $102.1 billion (revised), or 2.4% of GDP in Q1.
  • Real spending on travel and tourism accelerated in Q4 2013, increasing at an annual rate of 4.2% after increasing 3.1% (revised) in Q3 2013. For the year, real spending on travel and tourism increased 3.6% in 2013 after increasing 2.8% in 2012

 

For previously released US economic indicators visit US Bureau of Economic Analysis (BEA): Link

 

 NY

  • Private employment in New York City rose by 25,000 between June and July 2014.
  • The unemployment rate fell to 7.8% from 7.9% between June and July 2014.
  • The Manhattan Class A office vacancy rate was 9.8% in August 2014, while the average asking rent was $72 PSF.
  • The Manhattan hotel occupancy rate in July 2014 was 91.2%, up from 90.5% in July 2013.
  • Passengers in NYC area airports totaled 10.6 million in June 2014, up 3.8% from June 2013.
  • In August 2014, the Manhattan Class A direct vacancy rate fell to 9.8% while the average rental rate rose slightly to $72 PSF.
  • In the same month, the Downtown Class A direct vacancy rate fell to 10.6% and the rental rate remained at $54 PSF.
  • The Manhattan Class A sublease vacancy rate decreased slightly in August over the previous month, from 1.9% to 1.8%.
  • For the twelve months ending July 2014: Building projects (including new, additions and alterations) that started construction in NYC rose by 22.3%, and infrastructure (non-building) project starts fell by 1.6% from the twelve months ending July 2013.
  • Planned space for building project starts rose by 5.9% from the same period in 2013.
  • 3,124 residential building project starts began construction, a 28.6% increase from the twelve months ending in July 2013. These starts contained 25,807 units, an increase of 23.4% from last year.
  • In June 2014, 10.6 million passengers flew into and out of the region's airports, an increase of 3.8% from June 2013.
  • Domestic air carriers accounted for 6.7 million passengers, a 3% increase from June 2013.
  • 3.9 million passengers traveled with international air carriers in June 2014, a 5.1% increase from June 2013.
  • Total ridership on MTA subways, trains and buses in July 2014 was 227.1 million, an increase of 3% from July 2013.
  • Subway ridership in July 2014 was 146.3 million, which was a 3.9% increase from July 2013.
  • Total Broadway attendance was approximately 1.1 million during the five weeks ending August 31, 2014, up 10.2% from the same period last year.
  • Broadway revenue during this period was about $123.2 million, up 12.7% from last year.
  • In July 2014, the average daily hotel room rate was $259, a 1.4% increase from July 2013.
  • Hotel occupancy was 91.2% in July 2014, up from 90.5 percent in July 2013.
  • The average daily hotel room rate increased the most in hotels charging between $185 and $220 per night.

For more information please visit: Link

Euro Zone

  • GDP remained stable in the euro area in Q2 2014. In Q1 2014, GDP grew by 0.2% in the euro area .Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 0.7% in the euro area.
  • The euro area seasonally adjusted unemployment rate was 11.5% in August 2014, stable compared with July 2014 but down from 12% in August 2013.
  • The Euro area annual inflation was 0.3% in September 2014, down from 0.4% in August. In September 2013 the rate was 1.1%.
  • In August 2014 compared with July 2014, seasonally adjusted industrial production fell by 1.8% in the euro area. In August 2014 compared with August 2013, industrial production decreased by 1.9% in the euro area.
  • In August 2014, compared with July 2014, the industrial producer prices fell by 0.1% in the euro area. In August 2014 compared with August 2013, industrial producer prices decreased by 1.4% in the euro area.
  • In June 2014 compared with May 2014, production in the construction sector fell by 0.7% in the euro area. In June 2014, compared with June 2013, production in construction fell by 2.3% in the euro area.
  • In August 2014 compared with July 2014, the volume of retail trade rose by 1.2% in the euro area. In July retail trade fell by 0.4% in the euro area. In August 2014, compared with August 2013, retail sales index increased by 1.9% in the euro area.
  • Compared with Q1 2014, house prices rose by 0.9% in the euro area in Q2 2014.
  • In Q1 2014, business investment rate was 19.3% in the euro area, compared with 19.5% in Q4 2013.
  • The first estimate for the euro area trade in goods balance with the rest of the world in August 2014 gave a 9.2 billion euro surplus compared with +7.3 billion in August 2013. 
  • The EU28 external current account recorded a surplus of 12 billion euro (0.4% of GDP) in Q2 2014, compared with a surplus of 25.2 billion (0.8% of GDP) in Q1 2014 and with a surplus of 47.5 bn (1.5% of GDP) in Q2 2013.

For more information please visit: Link

2. INVESTMENT INDICATORS

UKTI Inward Investment Report 2013/2014

The UK has attracted the most inward investment projects since records began in the 1980s, creating the highest number of new jobs since 2001.

Annual investment figures from UK Trade and Investment (UKTI) for 2013 to 2014 show that the UK attracted 14% more projects than the previous year. This data has been supported by external sources such as Ernst & Young (EY) who confirm that the UK remains the number one destination in Europe for foreign direct investment projects (FDI).

The report goes on to show that 66,390 new jobs were created as a result of inward investment, the highest since 2001.

A total of 1,773 investment projects were set up by foreign businesses in the UK during 2013, with 122 projects creating 5,374 new jobs in Scotland.
 

 

3. UK/US EXPORTS/IMPORTS

 

US Accounts for 26% of UK Exports in August 2014 (£2.8 bn)

UK Exports to US (£m) August 2014    Change from July 2014     Change from August 2013

2,848                                                          -18.3%                                       - 8.3%

 

US Accounts for 17% of UK Imports in August 2014 (£2.8 bn)

UK Imports from USA (£m) August 2014     Change from July 2014   Change from August 2013

2,898                                                                 1.7                                   -0.1  

 

 

 

 

 

 

 

 

 

 

 

4. UK/EU & Non-EU Exports/Imports

Total Monthly UK Trade with EU Member States: August 2014

Exports for August 2014 are £10.7 billion. This is a decrease of £1.7 billion (13%) compared to last month.

Imports for August 2014 are £15.9 billion. This is a decrease of £3.7 billion (19%) compared to last month.

The UK remains a net importer, with imports exceeding exports by £5.2 billion. This is a decrease of £2 billion (28%) compared to last month.

Total Monthly UK Trade with non- EU Member States: August 2014

Non-EU Exports for August 2014 are £10.9 billion. This is a decrease of £2.2 billion (16.8%) compared to last month.

Non-EU Imports for August 2014 are £16.4 billion. This is a decrease of £2.2 (12.1%) compared to last month.

The UK is a net importer this month, with imports exceeding exports by £5.5 billion. This is a slight  decrease of £43 million (0.8%) compared to last month.

5. NEW INVESTMENTS

US Investments into the UK

TIAA-CREF opens new office in UK
 

TIAA-CREF, a leading U.S. financial services organization, announced the opening of a new distribution office in London, England for its Asset Management business. The office will be led by veteran TIAA-CREF sales professionals Stephane Marguier and Russell Elliott. Marguier and Elliott are part of a global sales team responsible for building partnerships with institutional clients including insurance companies, sovereign wealth funds, pension systems and other major investors in Europe. The London-based team will focus on expanding relationships with UK and European clients and prospects while providing a local point of contact for TIAA-CREF investment capabilities and products.

 

TIAA-CREF, 8500 Andrew Carnegie Blvd, Charlotte, NC 28262 Website: www.tiaa-cref.org

 

Europe and Middle East Institutional, Stephane Marquier, +44 203 059 1851

 

Manikay to open UK office

New York-based hedge fund firm Manikay Partners is planning to expand its presence to the U.K. Aside from Manikay’s New York headquarters, it has an additional office in Sydney. Manikay was founded by former UBS proprietary trader Shane Finemore in 2008. The firm, which manages approximately $1.7 billion in assets, pursues an opportunistic investment strategy based on long-bias global equity and arbitrage and short-term trading.

Manikay Partners, One Bryant Park, 39th Floor, New York, NY, 10036. Tel: 212 588 6200. Email: info@mankaypartners.com  Website: www.manikaypartners.com

Stephens has opened a new office in London

Arkansas-based Stephens Inc, a provider of financial services, has established a new office in London, UK. The recent opening marks the first phase of the firm's expansion into Europe. Stephens currently employs 12 bankers at the new location, with more expected to join in the coming months. The business will initially focus on coverage of the consumer, industrial and technology, media and telecoms sectors, as well as more general work on mergers and acquisitions, although it is planning to broaden its sector coverage in due course.

Stephens, Inc. 111 Center Street, Little Rock, AR 72201. Tel: 501 377 2000 Fax: 501 377 2470. Website: www.stephens.com

Stephens Europe, 36-38 Cornhill, London EC3V 3NG. Tel: +44 20 3757 9900 Fax: +44 20 3757 9899

Aurelius to open London office

Aurelius Capital Management LP, a New York based hedge fund is opening an office in London.

Aurelius Capital Management LP, 535 Madison Avenue, 22nd Floor, New York, NY 10022. Tel: 646 445 6500 Email: Info@Aurelius-Capital.com Website: http://www.aurelius-capital.com/

AdRoll opens London office

California-based online advertising company AdRoll has announced the opening of its London office and the appointment of Michael Bertaut as managing director of EMEA strategic sales. Bertaut, will be responsible for building out a London-based strategic sales organisation, focusing on bringing AdRoll's cross-device, cross-platform, transparent digital advertising solutions to sophisticated larger brands and agencies across EMEA. London is AdRoll’s second office opening in Europe following its launch in Dublin last year. Over the next year, AdRoll will look to grow from 100 employees to 250 employees across London and Dublin as the company rapidly expands its presence to increase its service and product offering to prominent brands and established agencies throughout EMEA. 


AdRoll Headquarters, 972 Mission Street, San Francisco, CA 94103. Website: www.adroll.com

AdRoll EMEA, Level 6, 1, Burlington Plaza, Burlington Road, Dublin 4, Ireland. Tel: +353 1 653 2009

Proofpoint Invests in the UK

Proofpoint, a California-based data protections solutions provider, is expanding its operations in Belfast. The firm is investing GBP 6 million and creating 94 new jobs in converting its Belfast operation into a research and development and operations centre, which will act as an operations and support hub for the company's customers based in Europe, Middle East and Africa.

US Headquarters, Proofpoint, Inc. 892 Ross Drive, Sunnyvale, CA 94089. Tel:  408 517 4710 Fax:  408 517 4711 Website: www.proofpoint.com

UK/EMEA HQ, Proofpoint Ltd, 100 Brook Drive, Green Park, Reading, Berkshire, RG2 6UJ Tel +44 (0)118 402 5900 Fax +44 (0)118 402 5901 Email: infouk@proofpoint.com

UK Investments into the US

 

Truphone opens new US office

UK-based Truphone Ltd, a provider of mobile communication services, has established a new sales office in Chicago to serve companies in a variety of industries -- including manufacturing, professional services and finance -- across the entire Midwest region. The Chicago office will be led by Regional Director Kris Bazos, a veteran sales executive with over 20 years of experience in the telecom and IT industries.  Headquartered in London, with U.S. headquarters near Research Triangle Park in Durham, N.C., Truphone has offices in 13 countries across four continents and continues to expand globally. Clients include Fortune 500 and FTSE 100 companies across multiple industry sectors. 

Truphone Ltd, 4 Lombard Street, London EC3V 9HD. General enquiries: +44 (0) 20 3002 6565 Email: generalenquiries@truphone.com Website: www.truphone.com

Truphone, Inc. 4309 Emperor Blvd. Suite 325, Research Triangle Park, Durham, NC 27703. Email: business.us@truphone.com

6. TRADE SHOWS
UK

November 3-6, 2014 - World Travel Market (WTM) 2014 - ExCel, London
Website: www.wtmlondon.com

World Travel Market (WTM) is the largest annual travel trade show in the UK and is universally recognized as one of the major travel events in the world. Held each November at London’s ExCel Centre, WTM regularly attracts over 45,000 participants, including 25,000 attendees (mostly tour operators, other travel buyers and travel media), and over 5,500 exhibitors from more than 200 countries with 200 plus from the U.S. WTM is a trade only show, it is not open to consumers.

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

US

Nov 2-5, 2014- Pack Expo International 2014 - Chicago, IL

Website: Link

Explore cutting edge processing and packaging technologies from more than 2,200 exhibiting companies at PACK EXPO International. 

 

Nov 5-12, 2014- American Film Market- Santa Monica, CA
Website: Link
AFM is the premiere global marketplace for motion picture production and distribution and the largest gathering of film industry professionals in North America. Join 8,000 attendees from around the world for eight days unlike any other.

For more information please visit: Link