BABC Investment News

February 2014

1. ECONOMIC INDICATORS

UK

UK Gross Domestic Product (GDP) in volume terms was estimated to have increased by 0.7% in Q4 2013.

• Consumer Price Index (CPI) annual inflation was 2% in December, down from 2.1% in November.
• The employment rate for September to November 2013 was 72.1%, up 0.5% from June to August 2013.The unemployment rate for September to November 2013 was 7.1%, down 0.5% from June to August 2013.
• Between October to December 2012 and October to December 2013 total pay and regular pay rose by 0.9%.
• 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 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 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 2.6% in November 2013 compared with November 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 December 2013, the amount spent in the retail industry increased by 6.1% compared with December 2012 and by 2.6% compared with November 2013.  Non-seasonally adjusted data show that the average weekly spend in the retail industry in December 2013 was £8.8 billion compared with £8.5 billion in December 2012 and £7.5 billion in November 2013.
• Public Sector Net Borrowing in December 2013 was £12.1 billion. This was £2.1 billion lower than in December 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 £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.
• International visits to the UK by overseas residents have continued to increase during 2013. An estimated 9.9 million visits were made in Q3 2013, representing a rise of 12.1% when compared with 8.8 million visits for the same period in 2012. Estimated earnings from all visits to the UK grew by 11.4% from £6.5 billion (Q3 2012) to £7.2 billion (Q3 2013).
• UK residents made 20.6 million visits abroad in Q3 2013, an increase of 6.9% when compared to the same quarter in 2012. UK residents spent £12.7 billion on visits abroad in Q3 2013, an increase of 8.3% on the £11.8 billion spent in the same period of 2012.

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 14.9% in Q4 2013, up from 10% in Q3 2013.
• The percentage of the resident working age population who are unemployed and claiming Jobseekers’ Allowance in London was 3% in December 2013. There were 173,800 seasonally adjusted unemployment claimants in London in December 2013 compared to an upwardly-revised 178,200 in November 2013.
• The Purchasing Managers’ Index (PMI) of business activity recorded 60.3 in December 2013 compared to 62.6 in November 2013.
• The PMI for new orders for London firms recorded 63 in December 2013 compared to 64.8 in November 2013.
• The PMI for the level of employment in London firms was 57.4 in December 2013, compared to 57.7in November 2013.
• The RICS survey shows a positive net balance of 99 for London house prices over the three months to December 2013.
• The net house price expectations balance in London was 68 in December 2013.
• For Greater London, the consumer confidence score increased to -6 in December 2013 from – 7 in November 2013.
• In the most recent 28 day period, (from 10 November 2013 to 7 December 2013) London’s underground and buses had 300.4 million passenger journeys; 194.1 million by bus and 106.3million by Underground.
• The moving average annual rate of growth in passenger journeys increased to 1.4% from 1.2% 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 3.2% in Q4 2013, for 2013 overall, GDP increased 1.9%.
• In December personal income increased $2.3 billion, or less than 0.1%, disposable personal income (DPI) decreased $3.8 billion, or less than 0.1%, and personal consumption expenditures (PCE) increased $44.1 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.
• 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 8,500 in November 2013 after an increase of 11,100 in October.
• The unemployment rate fell to 8.5% in November from 8.7% in October.
• The Manhattan hotel occupancy rate in November 2013 was 88.1%, up from 87.2% in November 2012.
• The Manhattan Class A office vacancy rate was 10.2% in December 2013, while the average asking rent was $70 PSF.
• Passengers in NYC area airports totaled 9.5 million in October 2013, up 9.2% from October 2012.
• In December 2013, 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 remained at 13.8%, and the rental rate remained at $54 PSF.
• The Manhattan Class A sublease vacancy rate fell to 1.9% in December from 2.2% in November.
• For the twelve months ending November 2013: Building projects (including new, additions and alterations) that started construction in NYC fell by 13.2%, and infrastructure (non-building) project starts rose by 4.8% from the twelve months ending November 2012.
• 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 55.6% from the same period in 2012.
• 2,202 residential building project starts began construction, a 12.9% decrease from the twelve months ending in November 2012. These starts contained 21,453 units, an increase of 67.3% from last year.
• Total Broadway attendance was approximately 1.03 million during the four weeks ending December 29, 2013, up 11.4% from the same period last year.Broadway revenue during this period was about $120.8 million, up 26.8% from last year.
• In October 2013, 9.5 million passengers flew into and out of the region’s airports, an increase of 9.2% from October 2012.
• Domestic air carriers accounted for 6.2 million passengers, an 8.4% increase from October 2012.
• 3.3 million passengers traveled with international air carriers in October 2013, a 13.6% increase from September 2012.
• In November 2013, the average daily hotel room rate was $316, a 4% decrease from November 2012.
• Hotel occupancy was 88.1% in November 2013, up from 87.2% in November 2012.
• The average daily hotel room rate decreased the least in hotels charging between $355 and $410.
• Total ridership on MTA subways, trains and buses in November 2013 was 220.5 million, an increase of 11.2% from November 2012.
• Subway ridership in November 2013 was 141.4 million, an increase of 13.8% prcent from November 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% in December 2013. It was 11.9% in December 2012.The Euro Area annual inflation is 0.7% in January 2014, down from 0.8% in December 2013.
• In November 2013 compared with October 2013, seasonally adjusted industrial production grew by 1.8% in the Euro Area. In November 2013 compared with November 2012, industrial production increased by 3% 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 Euro Area trade in goods balance with the rest of the world in November 2013 gave a 17.1 billion euro surplus compared with + 12.5 billion in November 2012.  In November 2013 compared with October 2013, seasonally adjusted exports fell by 0.2% and imports by 1.3%.
• 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 

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 US-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.

US-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 US 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

US Net International Investment Position: Q3 2013

The US 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. investments abroad. The US net international investment position increased 6.5% in Q3 2013, compared with a 5.2% decrease in Q2.

US-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

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. New Investments

US Investments into the UK

Sherwin Williams to Open Headquarters in the UK

Cleveland, Ohio-based coatings firm, Sherwin-Williams, has taken 10,000 sg ft of office space at the Airport City Voyager building and has announced plans to establish its European headquarters in Manchester, creating 60 job.

Sherwin-Williams, 101 W Prospect, Cleveland, OH 44115, Tel: 216 566 2000 website: www.sherwin-williams.com

Celestron opens office in the UK 

Celestron, the world’s number-one telescope designer and manufacturer, is thrilled to announce the opening of its first overseas office in the United Kingdom, which will be devoted to international sales and dealer support. Based outside of London, the new Celestron office will be headed by International Business Development Manager Dave Murray, who has been working remotely from the UK since coming onboard in September. Longtime International Sales Manager Anne Barton has also joined Dave to work in the new office, having relocated from Celestron’s home office in Torrance. Celestron will share more details about the United Kingdom office, including the address and contact information, as they are finalized. For more information, contact Dave Murray at dmurray@celestron.com.

Celestron, LLC. 2835 Columbia St, Torrance, CA 90503 Tel: 310 328 9560 Fax: 310 212 5835. Website: www.celestron.com

NextGate opens office in London

NextGate, a leading healthcare integration and patient identity management services provider in Pasadena, California, announces the opening of a new office in London, England. The new office enables NextGate to provide local support for existing clients, strengthen partner relationships, and increase participation in European healthcare IT discussions and projects, such as accurate patient record matching, eHealth image exchange, and population health management.

NextGate, 222 E. Huntington Dr, Suite 208, Monrovia, CA 91016. Tel: 626 376 4100 Website: www.nextgate.com

NextGate, 1 Kings Avenue, Winchmore Hill, London, N21 3NA. Tel: +44 186 552 1177 Website: www.nextgate.co.uk

UK Investments into the US

Sophos Opens New office in US

UK-based Sophos, a specialist in IT security and producer of anti-virus software, has opened a new office in Santa Clara, California. The new office will support product innovation, channel expansion and company growth. Additionally, it will strengthen the firm’s ability to support its growing network of value added resellers, distributors and partners across North America, and particularly on the west coast.

Global Headquarters, Sophos Ltd, The Pentagon, Abingdon Science Park, Abingdon OX14 3YP. Tel: +44 (0)1235 559933 Website: www.sophos.com

North American Headquarters, 3 Van de Graaff Drive, 2nd Floor, Burlington, MA 01803. Tel: 781 494 5800

Talentmark Opens US office

UK-based life sciences recruiter, Talentmark is pleased to announce the opening of its first US office in Boston, MA. Located at 10 Post Office Square in the heart of Boston’s financial district, Talentmark’s new base on the East Coast is at the centre of this important Massachusetts life science hub. The expansion reflects Talentmark’s growing portfolio of US led work which has already resulted in the growth of its international account management team. Talentmark’s US operations will be run by Ian Broadway, currently Talentmark’s Director of Managed Services, who will be based locally.

Talentmark Limited, 1 Northumberland Avenue, London WC2N 5BW. Tel: +44 (0) 845 095 2626 Email: info@talentmark.com  Website: www.talentmark.com

WRG opens US office

UK-based communications and marketing agency WRG, has opened an office in Philadelphia. The agency, which is headquartered in Manchester, and already has an office in New York, as well as London and Hong Kong, said it was looking to build on the success of its work in healthcare as part of its growth strategy.

WRG, Merchants Warehouse,21 Castle Street, Manchester, M3 4LZ. Tel: +44 (0) 845 313 0000 Email: hello@wrglive.com Website: www.wrg.com

WRG, 12th Floor, 1 South Broad Street, Philadelphia, PA 19107

4. Trade Shows

 UK

March 4-6, 2014 – Ecobuild -Earls Court London

Website:  http://www.ecobuild.co.uk/

Ecobuild is the UKs only event dedicated to sustainable design and construction. It attracts hundreds of suppliers of green building products and services and brings together professionals from all parts of the construction sector. Ecobuild will take place at Earls Court alongside Regenex, Futurebuild, Regenex and Building for Health.

Cotact:Cheryl Withers, Commercial Assistant Tel: +44 (0)20 7894 0471 Email: Cheryl.Withers@trade.gov

March 11-13, 2014 –Oceanology International – London

Website:  http://www.oceanologyinternational.com/

Oceanology International is the world’s premier meeting place for the marine science and ocean technology community. Oceanology is attended by a global community of engineers, scientists, legislators, policy makers and management professionals with responsibility across all of the ocean science and marine technology spectrum.

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

March 14-15, 2014 – The British and International Franchise Exhibition -Olympia, London

Website:  https://www.franchiseinfo.co.uk/exhibition/

“The British & International Franchise Exhibition is the only franchise exhibition in London to be supported by the British Franchise Association (bfa) and only allows franchise companies that have met the Association’s code of ethics to exhibit at the event. This means you can be confident in the franchise opportunities presented to you, as they are an ethical entity within the UK market.”

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

March 20-22, 2014 – The Education Show -NEC Birmingham

Website:  http://www.education-show.com/

The Education Show is the UK’s largest showcase of educational resources of all kinds. It enables educators to see what is new, try out resources and take part in free CPD so that they can teach and manage learning more effectively.

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

US

March 4-8, 2014 – CONEXPO-CON/AGG 2014 – Las Vegas, NV

Website: http://www.conexpoconagg.com/About/ CONEXPO-CON/AGG will represent an immense unveiling of all the newest equipment, technology and product breakthrough in construction. 2,400 exhibitors showcasing new products and technologies from for every major construction industry including asphalt, aggregates, concrete, earthmoving, lifting, mining, utilities and more. Over 125,000 attendees that range from contractors, to dealers & distributors, to service providers, engineers, producers, municipalities, and more.

March 6-9, 2014 – Natural Products Expo West – Anaheim, CA

Website: www.expowest.com Natural Products Expo West continues to be the leading trade show in the natural, organic and healthy products industry, attracting over 60,000 industry professionals and 3,000 exhibits to the Anaheim Convention Center. Rated as one of the top 200 trade shows in the US by Tradeshow Week, Natural Products Expo West continues to help attendees reach their business goals.

March 15-18, 2014 – International Home + Housewares Show 2014 – Chicago, IL

Website: http://www.housewares.org/

The International Home + Housewares Show offers you the opportunity to see first-hand consumer lifestyle and product trends for all areas of the home, both inside and out, under one roof at McCormick Place, Chicago, IL.

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