Capital Markets, Financial

BGC Partners eyes new platform to trade US Treasuries

BGC Partners plans to launch a new platform to trade US Treasuries early next year, in a bid to return to a market in the middle of evolution, according to people familiar with the plans.  The company, spun out of Howard Lutnick’s Cantor Fitzgerald in 2004, sold eSpeed, the second-largest interdealer platform for trading Treasuries, […]

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Sales in Rocket Internet’s portfolio companies rise 30%

Revenues at Rocket Internet rose strongly at its portfolio companies in the first nine months of the year as the German tech group said it was making strides on the “path towards profitability”. Sales at its main companies increased 30.6 per cent to €1.58bn while losses narrowed. Rocket said the adjusted margin for earnings before […]

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Renminbi strengthens further despite gains by dollar

The renminbi on track for a fourth day of firming against the dollar on Wednesday after China’s central bank once again pushed the currency’s trading band (marginally) stronger. The onshore exchange rate (CNY) for the reniminbi was 0.28 per cent stronger at Rmb6.8855 in afternoon trade, bringing it 0.53 per cent firmer since it last […]

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Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

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Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

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Categorized | Banks, Financial

Lending to UK manufacturers slows but consumer credit rises

Posted on November 29, 2016

Bank lending to manufacturers declined 5.2 per cent in October compared with one year ago, according to the latest statistics on money and credit in the UK economy published on Tuesday by the Bank of England.

Manufacturing, which accounts for roughly a tenth of the UK economy, is expected to be one of the most sensitive parts of the economy to the decline in the exchange rate because of the sector’s reliance on imports.

The total volume of lending in the past three months grew at the slowest rate since the summer of 2015, because of a monthly decline of 0.2 per cent in October — this was a £3.2bn decrease in the total amount of lending compared with September.

Total business lending decreased by £8.2bn in October compared with the previous month. The decline was mainly due to a £10.5bn fall in loans to the financial services industry.

Consumer lending, however, increased 10.5 per cent compared with October last year and mortgage lending reached the highest level since March. Mortgage approvals rocketed in the first three months of 2016 as buy-to-let landlords rushed to buy new properties before a tax change.

There were 67,500 new mortgages approved in October, beating the forecast consensus of 65,000.

Tuesday’s data add to a picture of divergence between different sectors of the British economy following the EU referendum vote. Consumers have been mostly unfazed by the result and continued shopping while businesses and financial markets have been more circumspect.

Business and consumer borrowing are being bolstered by the Bank of England’s easy monetary policy as well as new measures introduced in August following the referendum, said Howard Archer, chief UK and European economist at IHS Markit. “Low interest rates are supporting consumer and business borrowing.”

The latest estimate of economic growth, released this month, found that the better than expected growth in the three months following the referendum was because of both consumer spending and business investment remaining strong in the third quarter.

However, government statisticians warned that many of the investment decisions would have been taken before the referendum result.

Commenting on the BoE’s money and credit statistics, Elizabeth Martins, UK economist with HSBC, said: “Credit conditions remain very loose, and there is little sign so far of borrowers, either consumer or corporate, starting to worry about Brexit at this point.”

The European Commission’s monthly survey of economic confidence, also published on Tuesday, found that business sentiment rose back above the pre-Brexit level in October.

It also found that consumer confidence slipped back to levels seen in the immediate aftermath of the referendum, although these figures are quite volatile.

Consumer expectations of price increases climbed in October to reach their highest level since 2011, according to the survey.