Booming Britain

[threegee]

Interesting article in the massively EUphile Financial Times:-

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Number of foreign visitors to Britain jumps 18% in the month after the Brexit vote...

Searches for UK hotels have rocketed, with inquiries from Italy up 23 per cent year on year, from Germany up 20 per cent, and from Spain up 15 per cent in the 30 days since the referendum, according to HotelsCombined. Interest from Saudi Arabia has doubled and there has been an 18 per cent rise in searches from Hong Kong.

Luxury hotels are also reporting an uptick in visitor numbers: Claridge’s and The Connaught say they had “the best ever July on record”, with “particularly high occupancy from the US and Europe”.

“We have also noticed an increase in guests upgrading to suites as they can get better value for their money as well as asking to pay in full in advance to lock in the exchange rates,” said Maybourne Hotel Group, the parent company. “Restaurants and bars across the group are also proving to be buoyant and busy.”

Online hotel booking service Trivago says that travel interest from US visitors to the UK rose 13 per cent in the month after Brexit, while home-sharing group Airbnb reported a 24 per cent rise in bookings to London.

Other parts of the UK, such as Newquay in Cornwall and Blackpool, are also attracting more visitors, according to Mr Shelton.

The increases are positive for Britain’s tourism industry, which employs more than 3m people.

The inevitable sour comment from a Remonian "Wonderful irony. Vote Brexit to keep out Johnny Foreigner and now look what happens!.... " entirely misses the essential point that tourists bring us some of their wealth, leave in a timely manner, and create jobs, not undercut native Brits in theirs!

[Malcolm Robinson]

Yep and on top of that I know quite a few people holidaying in the UK now!  

 

Exchange rates only matter when you buy products in that currency or need it for the likes of holidaying.  

 

We have just made British labour, already one of the most productive in Europe, even cheaper for any international investment and with interest rates such as they are there must be sizeable investment capital looking for a home.   

[threegee]

So much for Brexit doom: IMF in embarrassing climbdown as it admits market turmoil has 'ebbed', while pound hits four-week high

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UK manufacturing posts biggest rise in 25 years

UK manufacturing activity recorded its biggest month-on-month increase in a quarter of a century in August as production and new orders jumped following the initial shock of the Brexit vote.

Markit's latest survey of the sector showed factories were returning to "business as usual" following a steep downturn in activity immediately after the June 23 vote.

The weaker pound helped to push up overseas orders, while domestic output also bounced back and employment rose for the first time this year.

The survey compiler said the recovery was broad-based, with all three manufacturing sub-sectors returning to growth. The Markit/CIPS UK manufacturing purchasing managers' index rose to 53.3 in August, from 48.2 in July. (Continue reading here)

Pound spikes above $1.33 on UK manufacturing data beat 

The pound jumped by as much as 1.35pc to $1.3318 against the dollar this morning after data showed the UK manufacturing sector enjoyed one of its sharpest rebounds on record in August. 

 

[Malcolm Robinson]

Just been to a NCC Brexit talk and I think the data they are using has been done by the Remain think tank!  

 

 

[threegee]

Quickly skipping over all the other good news (like saving our Steel Industry with a mega investment by Tata):

Record UK exports drive huge narrowing in trade deficit

 

Exports of goods rose by £2.1bn to £26.8bn in October, according to the Office for National Statistics (ONS).

This is the highest level since records began in 1997, and was boosted by strong goods exports to non-EU countries, which jumped to a record £14.4bn.

The increase also pushed up total exports of goods and services to a record level of £46.4bn, though this was driven solely by goods.

Recent surveys suggest the fall in the value of the pound since the Brexit vote has helped exporters to become more competitive.However, Hannah Finselbach, a statistician at the ONS, said there was only "limited evidence so far that the depreciation of sterling has led to a marked increase in UK exports".

He's probably right not to put too much weight on the value of Sterling because it has been steadily creeping up lately, and what is really important is getting away from the dependency mindset that is part and parcel of the EU political project.  We will succeed because we are British, and that's what Brits do when faced with real challenge.  If that sounds a bit jingoistic then tough!  We are not unrolling a thousand years of history to suit the prejudices of those rats who are now willing their own country to fail!

[mercuryg]

"value of Sterling because it has been steadily creeping up lately"

No it hasn't. It's hovered around 78-79p on the dollar for ages. As someone paid in dollars, I'm qualified to know.

Good news about exports.

 

 

[threegee]

And I'm "qualified to know" about Sterling against the Euro!   If Clinton had won you'd be significantly worse off now.

BTW the first of the Italian banks has just gone bust, shareholders have been totally wiped out, and as part of the rescue bondholders are having to take a huge haircut.  As most of those bondholders are average small savers sheltering their life savings (they won't take the risk of investing in the stock markets as they hate the thought of any loss of capital) it's a crushing blow, and bondholders in other banks are now going to panic.  (More) Civil unrest is likely.  The equivalence here in the UK is building society deposits being raided!

Unfortunately - amongst his other major blunders - Dodgy Dave tied us in to the the EFSM, so we will be tapped as Eurozone finances inevitably get worse.  It's entirely conceivable that with the Greek nonsense blowing up again too Sterling will be worth more than pre-Brexit value very soon.  Maybe some of the rise in the value of Sterling will be moderated by Dave's blunder, and we won't have to pay out too much in support - we must hope!  May needs to detach us from the EZ a lot faster than she's now doing!

[mercuryg]

You certainly are, but I still wouldn't call it steadily creeping up. Bit of a jagged ski-slope sort of graph, really, like the dollar sterling one but no so pretty. 

[threegee]

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UK car production roars to 17-year high

Car production has reached its highest level since 1999, with over 1.6 million models rolling off the production line so far this year, new figures show.

Almost 170,000 vehicles were built in UK factories last month, an increase of 12.8pc on November last year and the best total for 17 years.

Production for UK sales increased by 14pc in November to 33,745, while exports continued to boom - up by 12.5pc.

A record 1.2 million cars have been shipped to overseas markets this year, said the Society of Motor Manufacturers and Traders.

Chief executive Mike Hawes said: "Made in Britain is a badge coveted by car buyers worldwide, and these latest figures highlight not just that international appeal but the fact that the UK is a globally competitive place to make cars...

http://www.telegraph.co.uk/business/2016/12/22/uk-car-production-roars-17-year-high/

[threegee]

Post-Brexit vote, UK leapfrogs Sweden and US in allure

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The UK’s decision to leave the European Union has not hit the country’s attractiveness when it comes to wooing top talent, a detailed investigation of the most competitive countries in the world has found.

Research published just before this week’s World Economic Forum in Davos says the UK has leapfrogged over countries including the US and Sweden to rank third in the world for workers looking for new challenges, behind only Switzerland and Singapore.

Adecco, the recruitment firm behind the research, to be launched today in the Swiss mountain town before the official start of the WEF tomorrow, will say Britain will remain competitive once it quits the Europ­ean bloc.

...

The Adecco Global Talent Competitiveness Index says that the UK is the third best country in the world in terms of its ability to attract, retain, train and educate skilled workers, as it leapfrogged countries including the US, Luxembourg and Sweden from seventh into third place.

John Marshall, chief executive of  Adecco’s UK and Ireland division, said Britain was likely to remain highly competitive after Brexit. “The UK has many of the attributes that competitive countries share. It’s certainly not about whether one is or isn’t in the EU,” he said. “Switzerland, Singapore and US, which make up the other top four countries are not in the EU.”

The research ranks countries on a wide range of metrics. The UK scores highly on ease of doing business and intensity of competition, and was best in Europe for teaching science, maths and technology subjects in schools.

 

[threegee]

Unemployment falls by 52,000

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Levels of unemployment have fallen by 52,000 to 1.6 million in the three months to November,  the latest official figures have revealed. 

The Office for  National Statistics said average earnings increased by 2.8 per cent in the year to November, 0.2 per cent up on the  previous month. 

Employment Minister Damian Hinds said: "We start the new year with another encouraging set of figures. Employment continues to run at a near-record high, unemployment remains at an 11-year low, and both figures are stronger than this time last year - highlighting the strength and resilience of our labour market as we step up to the challenges of 2017.

"We have made real progress creating a strong economy and helping more people into work, and will do what is needed to continue that trajectory as we build a country that works for everyone."

Youth unemployment is down by more than 360,000 since 2010 and the lowest in 11 years, while long-term unemployment is the lowest since mid 2008.

 

[threegee]

Bank of England upgrades 2017 growth forecast

-but pound tumbles as Mark Carney cautions Brexit still has consequences

Well he would, wouldn't he?  Wants us all to believe that he "saved the world" - move over Gordon.  And, if he were ever to admit that he was badly wrong on just about everything on every occasion..

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The BoE said it now expected economic growth of 2pc this year, higher than economists had predicted and up from its previous forecast of 1.4pc.

Ah, yes, he's pedalling this line already:

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Now the first question of the day:  Last August you predicted that GDP would rise by only 0.8pc this year, you’re now forecasting 2pc growth. What went wrong with your forecasts?

Mark Carney responds: "Turn it around, what went right.

"Policy actions that were taken by the bank and the Chancellor both of which provide support into 2017. They have had more traction than we had expected at the time.

Ahem... presumably this included Osborne's "emergency budget" which you went along with?  Has anyone asked the obvious question as to why he lowered interest rates to depress the value of Sterling when many economists (and I suspect some MPC members) said he should have done the reverse?

What's the betting that the UK growth forecast figures will need to be raised yet again?

[threegee]

Brexit boost for London as Bank of America Merrill Lynch eyes new City base

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Wall Street giant Bank of America Merrill Lynch has kicked off its search for a vast new London office, in what will be seen as a major vote of confidence in the capital as the UK prepares for Brexit.

The bank has hired property agents CBRE to identify sites in London as big as 500,000 square feet – similar in size to its current premises, which serve as the bank’s European headquarters.

The lease on the bank’s plush site near St Paul’s Cathedral expires in five years’ time. BAML has to decide by 2020 whether to roll over the lease or move elsewhere. It employs some  1,200 bankers and 600 back office staff in London. 

The revelation that America’s second-largest bank is looking to cement its UK presence will boost confidence that London can remain Europe’s financial hub after the UK leaves the European Union and attract multinationals from other industries....

...confidence is growing that the UK will remain an attractive hub for companies across a range of industries after it leaves the EU, particularly technology firms.

A flurry of big companies have announced plans to expand their presence in the capital.

Technology giant Apple, for example, last year unveiled plans to lease 500,000 sq ft at the Battersea Power Station development to create a new London headquarters with enough space to house 3,000 staff.

Fellow US companies Google and Facebook have also announced plans recently to expand their presence in the UK capital. Google is building a new 10-storey, 650,000 sq ft complex in the capital. Meanwhile, Facebook is planning to switch to new offices in central London’s Fitzrovia district, a move that will see the social networking giant hire an extra 500 employees in the UK, increasing its headcount by 50pc to more than 1,500.  

It is understood that BAML engaged CBRE to start an office search before the EU referendum in June. Its decision to push ahead with the hunt despite the vote is a huge boost for the Square Mile...

 

[threegee]

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