BABC Investment News - May 2015

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

·       Gross Domestic Product was estimated to have increased by 0.3% between Q4 (October to December) 2014 and Q1 (January to March) 2015.

·       CPI annual inflation was -0.1% in April 2015, compared to no change (0.0%) in March 2015.

·       For January to March 2015, 73.5% of people aged from 16 to 64 were in work, up from 72.5% for a year earlier. The unemployment rate for January to March 2015 was 5.5%, down from 6.8% for a year earlier.

·       UK house prices increased by 9.6% in the year to March 2015, up from 7.4% in the year to February 2015.

·       Production output increased by 0.7% in March 2015, compared with March 2014.

·       Manufacturing output increased by 1.1% in March 2015, compared with March 2014.

·       In the year to April 2015 the output price index for home sales of manufactured products fell 1.7%. In the same period the total input price index fell 11.7%

·       In February 2015, output in the construction industry was estimated to have decreased by 0.9% compared with January 2015.

·       The Index of Services increased by 3.2% in February 2015 compared with February 2014.

·       In March 2015, the amount spent in the retail industry increased by 0.7% compared with March 2014 but decreased by 0.3% compared with February 2015.

·       Business Investment fell by an estimated £0.4 billion (0.9%) since Q3 2014. It increased by 3.7% compared with the same quarter a year ago.

·       The UK’s deficit on seasonally adjusted trade in goods and services was £2.8 billion in March 2015. The deficit on trade in goods was £10.1 billion. The surplus on trade in services was estimated at £7.3 billion.

·       The United Kingdom’s (UK) current account deficit was £25.3 billion in Q4 2014, down from a revised deficit of £27.7 billion in Q3 2014. The deficit in Q4 2014 equated to 5.6% of GDP at current market prices, down from 6.1% in Q3 2014.

·       The number of visits to the UK by overseas residents in February 2015 was 2.1 million, a drop of 5% when compared to February 2014. Overseas residents spent £1 billion in the UK during these visits. During the period December 2014 to February 2015, overseas residents visits to the UK fell by 2% compared with the corresponding period a year earlier and spent 8% less during this period. In the 12 months to February 2015, the number of visits to the UK was 4% higher than a year earlier and earnings remained the same during this period.

·       The estimated number of visits abroad by UK residents in February 2015 was 3.4 million. UK residents spent £2 billion during visits abroad in February 2015. In the 12 months to February 2015, the number of visits abroad by UK residents was 3% higher when compared with a year earlier and expenditure on these visits remained the same during this period.

For previously released UK economic indicators visit National Statistics: Link

LONDON

·       London’s annual growth in output was 3.9% in Q3 2014, unchanged from an upwardly-revised estimate in Q2 2014.

·       London’s annual employment growth decreased to 2.6% in Q3 2014 from an upwardly revised 3.8% in Q2 2014.

·       Annual house price inflation in London was 12.7% in Q1 2015, down from 17.8% in Q4 2014.

·       The claimant count unemployment rate in London stood at 2.1% in March 2015 down from 2.2% in February. There were 1116,100 seasonally adjusted unemployment claimants in London in March 2015 compared to an upwardly-revised 119,500 in February 2015.

·       The Purchasing Managers’ Index (PMI) of business activity recorded 61.8 in March 2015, up from 58.9 in February 2015.

·       The PMI for new orders for London firms recorded 62.1 in March 2015 compared to 61.2 in February 2015.

·       The PMI for the level of employment in London firms was 57.5 in March 2015, compared to 57.1 in February 2015.

·       The RICS Residential Market Survey shows a negative net balance of -13 for London house prices over the three months to March 2015.

·       The net house price expectations balance in London was -2 in March 2015.

·       For Greater London, the consumer confidence score stood at 9 in April 2015, down from 11 in March 2015.

·       The most recent 28 day period is from 1 February -28 February, 2015. London’s Underground and buses had 281.1 million passenger journeys; 175.4 million by bus and 105.7 million by Underground.

·        The moving average annual rate of growth in passenger journeys decreased to 1.4% from 1.5% in the previous period.

For more information please visit: Link

US  

·       Real gross domestic product increased at an annual rate of 0.2% in Q1 2015. In Q4 2014

·       real GDP increased 2.2%.

·       Real gross domestic product increased at an annual rate of 2.2% in the Q4 2014. In Q3 real GDP increased 5%. Corporate Profits decreased $30.4 billion in Q4 2014 and fell $17.1 billion for 2014 overall.

·       In March 2015, personal income increased $6.2 billion, or less than 0.1%, disposable personal income (DPI) increased $1.6 billion, or less than 0.1% and personal consumption expenditures (PCE) increased $53.4 billion, or 0.4.

·       The March 2015 international trade deficit increased 43.1% from February, to $51.4 billion. Exports increased 0.9% to $187.8 billion, and imports rose 7.7% to $239.2 billion.

·       The U.S. net international investment position decreased 12.8% in Q4 2014, compared with a decrease of 11.9% percent in Q3.

·       The U.S. current-account deficit increased to $113.5 billion, or 2.6% of GDP in Q4 2014, from $98.9 billion (revised), or 2.2% of GDP in Q3. For the full year 2014, the U.S. current-account deficit increased to $410.6 billion from $400.3 billion in 2013. The deficit was 2.4% of GDP in both 2014 and 2013.

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

 NY

·       Private employment in New York City rose by 9,100 between February and March 2015.

·       The unemployment rate held steady at 6.6% between February and March 2015.

·       The Manhattan Class A office vacancy rate was 8.8% in March 2015, while the average asking rent was $76 PSF.

·       Hotel occupancy was 77.4% in February 2015, down from 78.3% in February 2014.

·       Passengers in New York City area airports totaled 8.4 million in January 2015, up 2.0% from January 2014.

·       In March 2015, the Manhattan Class A direct vacancy rate stayed constant at 8.8% while the average rental rate fell slightly to $76 PSF.

·       Direct vacancy rates fell to 12.0% for Downtown and to 4.1% for Midtown South Class A office space. Direct rental rates for all three Manhattan submarkets went unchanged between February and March 2015.

·       The Midtown Class A sublease rental rate rose to $70 PSF in March 2015—up from $66 PSF one month prior.

·       For the twelve months ending March 2015: Building projects (including new, additions, and alterations) that started construction in NYC fell by 5.4% while infrastructure (non-building) project starts were up 5.6% from the twelve months ending March 2014.

·       Planned space for building project starts rose by 17.5% from the same period in 2014. The value associated with these projects was up 41.5% over the period.

·       2,917 residential building projects began construction, a 3.3% decrease from the twelve months ending in March 2014. These starts contained 27,358 units, an increase of 15.4% from last year

·       In January 2015, 8.4 million passengers flew into and out of the region's airports, an increase of 2.0% from January 2014.

·       Domestic air carriers accounted for 5.4 million passengers, a 1.9% increase from January 2014.

·       3 million passengers traveled with international air carriers in January 2015, a 2.1% increase from January 2014.

·       Total ridership on MTA subways, trains and buses in February 2015 was 199.7 million, an increase of 0.2% from February 2014.

·       Subway ridership in February 2015 was 130.7 million, up 0.7% from February 2014.

·       Total Broadway attendance was approximately 957,500 during the four weeks ending March 29, 2015, down 7.1% from the same period last year.

·       Broadway revenues during this period were about $95.5 million, down 5.8% from last year.

·       In February 2015, the average daily hotel room rate was $222, a 6.8% decrease from February 2014.

·       Hotel occupancy was 77.4% in February 2015, down from 78.3% in February 2014.

·       The average daily hotel room rate decreased the most in hotels charging between $300 and $375 per night.

For more information please visit: Link

Euro Zone

·       GDP rose by 0.4% in both the euro area (EA19) and the EU28 during Q1 2015, compared with the previous quarter, according to flash estimates published by Eurostat, the statistical office of the European Union. In Q4 2014, GDP grew by 0.3% in the euro area and by 0.4% in the EU28.

·       Euro area annual inflation was 0.0% in April 2015, up from -0.1% in March. In April 2014 the rate was 0.7%. European Union annual inflation was also 0.0% in April 2015, up from -0.1% in March. A year earlier the rate was 0.8%. These figures come from Eurostat, the statistical office of the European Union.

·       The euro area (EA19) seasonally-adjusted unemployment rate was 11.3% in March 2015, stable compared with February 2015, but down from 11.7% in March 2014. The EU28 unemployment rate was 9.8% in March 2015, stable compared with February 2015 and down from 10.4% in March 2014. These figures are published by Eurostat, the statistical office of the European Union.

·       House prices, rose by 1.1% in the euro area and by 2.6% in the EU in Q4 2014 compared with the same quarter of the previous year.

·       In March 2015 compared with February 2015, seasonally adjusted industrial production fell by 0.3% in the euro area (EA19) and remained stable in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In February 2015 industrial production rose by 1.0% and 0.8% respectively.

·       In March 2015, compared with February 2015, industrial producer prices rose by 0.2% in both the euro area (EA19) and the EU28, according to estimates from Eurostat, the statistical office of the European Union. In February 2015 prices increased by 0.6% in both zones.

·       In March 2015 compared with February 2015, the seasonally adjusted volume of retail trade fell by 0.8% in the euro area (EA19) and by 0.6% in the EU28, according to estimates from Eurostat, the statistical office of the European Union. In February retail trade rose by 0.1% in both zones.

·       In March 2015 compared with February 2015, seasonally adjusted production in the construction sector rose by 0.8% in the euro area (EA19) and by 1.5% in the EU28, according to first estimates from Eurostat, the statistical office of the European Union. In February 2015, production in construction dropped by 1.6% and 0.8% respectively.

·       In Q4 2014, the seasonally adjusted business investment rate was 21.9% in the euro area (EA18), stable compared with the previous quarter.

·       The first estimate for euro area (EA19) exports of goods to the rest of the world in March 2015 was €182.4 billion, an increase of 11% compared with March 2014 (€164.4 bn). Imports from the rest of the world stood at €159.1 bn, a rise of 7% compared with March 2014 (€148.3 bn). As a result, the euro area recorded a €23.4 bn surplus in trade in goods with the rest of the world in March 2015, compared with +€16.1 in March 2014. Intra-euro area trade rose to €150.0 bn in March 2015, +5% compared with March 2014.

·       The EU28 seasonally adjusted external current account recorded a surplus of €20.4 billion in February 2015, compared with a surplus of €19.5 bn in January 2015 and a surplus of €7.5 bn in February 2014, according to estimates from Eurostat, the statistical office of the European Union.

For more information please visit: Link


2. INVESTMENT INDICATORS

AT Kearney's 2015 FDI Confidence Index Ranks the United States Number one for Third Year in a Row A.T. Kearney released its 15th annual Foreign Direct Investment Confidence Index, which ranks countries based on how changes in their political, economic, and regulatory systems are likely to affect foreign direct investment inflows in the coming years.

During President Barack Obama's keynote address at the 2015 SelectUSA Investment Summit, he referenced A.T. Kearney's Index as evidence of the United States' strong economic recovery and the resulting opportunities and advantages for investors from around the world.

According to the new 2015 report, "The United States takes first place for the third straight year, as it leads all countries in terms of macroeconomic outlook. 

Inward Investment Report 2013/2014

Inward investment report by UK Trade and Investment (UKTI) showing the number of foreign direct investment projects in the UK for 2013 to 2014. Please click here to download the full report

AMCHAM EU Transatlantic Economy 2015

At its Transatlantic Conference, the American Chamber of Commerce to the European Union (AmCham EU) released the results of The Transatlantic Economy 2015, the annual survey of jobs, trade and investment between the EU and the United States. The report showed that since the financial crisis, the United States and Europe have embarked on divergent economic paths. The U.S. economy is now in its sixth year of recovery while Europe struggled in 2014 to avoid a triple-dip, or a third recession in six years, with real growth at 0.9% versus 2.4% in the United States. The IMF predicts this gap to widen in 2015.

Job creation is another area where both economies diverge. The U.S. economy is generating jobs; this is not the case in Europe. As of February 2015, America’s unemployment rate was 5.7% compared with 9.9% in Europe. The report states that there is potential for these figures to diverge even more with Europe now undergoing a technology backlash and facing growing energy insecurity. This has left the digital and energy sectors in Europe lagging behind their US counterparts.

Despite these findings there is cause for optimism: the United States and Europe remain each other’s most important markets generating $5.5 trillion in total commercial sales each year. Since 2000 Europe has attracted over 55% of total US global investment and remains the most profitable region for US companies. US foreign affiliate income earned in Europe rose 6.2% in 2014 to an estimated $238 billion — a record high, and one-third higher than the depressed levels of 2009.

The transatlantic economy remains the world’s largest and wealthiest market, and still accounts for roughly 35% of world GDP in terms of purchasing power parity. It remains the dominant force in the global economy.

Please click here to download the full report.

European Commission Report SMEs & TTIP

On Monday, 20th April, 2015 The European Commission released a report highlighting the barriers SMEs face when exporting to the US and the benefits TTIP can bring to them. BAB is proud that its own report on SMEs which can be found here, was of assistance for the European’s Commission final document.


3. UK/US EXPORTS/IMPORTS

USA Accounts for 24% of UK Exports in March 2015 (£3.9 bn)

UK Exports to USA (£m) March 2015    Change from February 2015     Change from March 2014

3,926                                                     22.8%                                           14.9%

USA Accounts for 18% of UK Imports in March 2015(£2.9 bn)

UK Imports from USA (£m) March 2015   Change from February 2015   Change from March 2014

2,896                                                           0.4%                                        5.2%  


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

Total Monthly UK Trade with EU Member States: March 2015

Exports for March 2015 are £11.8 billion. This is an increase of £0.8 billion (7.8%) compared with last month, and a decrease of £2 billion (14.8%) compared with March 2014.

Imports for March 2015 are £19.7 billion. This is an increase of £1.7 billion (9.4%) compared with last month, and an increase of £0.6 billion (3.2%) compared with March 2014.

The UK remains a net importer this month, with imports exceeding exports by £7.9 billion. This is an increase of £0.8 billion (11.8%) compared with last month, and an increase of £2.6 billion (50.3%) compared with March 2014.

Total Monthly UK Trade with non- EU Member States: March 2015

Non-EU Exports for March 2015 are £16.5 billion. This is an increase of £4.5 billion (38%) compared with last month and an increase of £2.9 billion (21.7%) compared with March 2014.

Non-EU Imports for March 2015 are £16.3 billion. This is an increase of £0.3 billion (1.8%) compared with last month and an increase of £0.5 billion (2.9%) compared with March 2014.

The UK is a net exporter this month, with exports exceeding imports by £133 billion.


5. NEW INVESTMENTS

US Investments into the UK

B-Pack opens new office in London

B-Pack SaaS cloud technology leader in Procure-to-Pay solutions, has opened a new office in London. The goal of the new London location is to better serve b-pack's existing customers by ensuring professional account management and to develop new opportunities in the Northern European region. UK based John Owens, has been appointed as a regional director responsible for business development of b-pack in Great Britain, Ireland and other Nordic countries such as Sweden, Denmark, Finland and Norway.

B-Pack, 900 Circle 75 Pkwy Suite 825 Atlanta, GA 30339 Telephone: 404- 602 0102 Email: info.rmsuk@revenuemanage.com Website: www.b-pack.com

B-Pack, Lincoln House, 4th floor, 300 High Holborn, London WC1 7JH Telephone: +44 (0) 203 771 4376

SmithDehn launches new office in Northern Ireland

A United States-based entertainment law company is opening offices in Londonderry. SmithDehn plans to create 75 jobs over the next five years. Its clients previously included the television network HBO, which makes the Game of Thrones series, and Hollywood studios such as 20th Century Fox. Russell Smith, the co-founder of SmithDehn, said Derry was chosen because it was a spirited and enthusiastic city.

SmithDehn, 90 Park Avenue 17th Floor  New York, NY 10016 Telephone: 212- 370 1843 Website: www.smithdehn.com

SmithDehn, 10 Whitfield Street  London W1T 2RE

SmithDehn, Derry/Londonderry, Suite 2.2 The Innovation Centre, North West Regional Science Park  Bay Road Derry/Londonderry | Northern Ireland BT48 7TG

Gilead Sciences opens new HQ in the UK

US pharma company Gilead Sciences is to expand its presence in the UK with a new commercial headquarters in London.The new base represents an increased investment of $19.6m by Gilead and will double its UK workforce to 600, of which 400 will be based in London.Gilead's existing presence in the country includes an office for international operations in Uxbridge and an R&D centre in Cambridge.

Gilead, 333 Lakeside Drive Foster City, CA 94404 Telephone: 650- 574-3000 Website: www.gilead.com

Gilead, Flowers Building Granta Park Great Abington Cambridge CB21 6GT

UK Investments into the US

Healix Opens US Subsidiary Office

HX Global, the subsidiary of Healix International, the international medical, security and travel assistance services provider, has opened a subsidiary in the US. The office, in the Chicago suburb of Oak Brook, IL, is to be run by David Evans, senior vice president. Gregory Cain, president of HX Global, said the organisation’s “explosive” growth in the US market meant that it needed another regional office to service its clients and Chicago is the “ideal location”.

HX Global, Healix House, Esher Green, Esher, Surrey KT10 8AB. Tel: +44 (0) 20 8481 7720 Fax: +44 (0) 20 8481 7721 E-Mail: enquiries@hx-global.com Website: https://www.hx-global.com Website: http://www.healix-international.com/

Healix International, 1 International Plaza, Suite 550, Philadelphia PA 19113. Tel: 215- 282 5150 Fax: 215- 893 3665 E-Mail: enquiries@hx-global.com


6.TRADE SHOWS

UK

June 2-4, 2015 -Infosecurity Europe 2015- 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

 For more details on these events, please contact: Richard Stanbridge, Senior Commercial pecialist/Head of Industries Team Tel: +44 (0)20 7894 0437 Email: Richard.Stanbridge@trade.gov

June 16-18, 2015 - Internet World - Excel London

Website: http://www.internetworld.co.uk/

“Internet World is Europe's longest running, best attended and biggest annual event for digital marketing and online business, attracting over 10,000 visitors and more than 300 exhibitors.”

For more details on these events, please contact: Richard Stanbridge, Senior Commercial Specialist/Head of Industries Team Tel: +44 (0)20 7894 0437 Email: Richard.Stanbridge@trade.gov

June 16-18, 2015 – IFSEC International 2015 -Excel London

Website: http://www.ifsec.co.uk/

"IFSEC is the world's leading global annual security event, uniting over 25,000 security professionals with more than 600 world leading companies."

For more details on these events, please contact: Cheryl Withers, Commercial Specialist Tel: +44 (0)20 7894 0419 Email: Cheryl.Withers@trade.gov

US

June 1-4, 2015 – WasteExpo 2015- Atlanta, GA

WasteExpo is the waste, recycling, and organics industry’s largest trade show in North America,

serving a $85 billion market.

Website: www.wasteexpo.com

June 17-19, 2015 – InfoComm International 2015 – Las Vegas, NV

lnfoComm is the world’s annual premier exposition and conference for the professional audiovisual

information and communications technology industry.

Website: www.infocommshow.com

June 18-20, 2015- 2015 International Franchise Expo – New York, NY

The International Franchise Expo is a 3-day event that has featured over 400 franchise exhibitors, with

investments ranging from $5,000 to several million and a wide range of product categories.

Website: www.ifeinfo. com

June 28-30, 2015 – Fancy Food Show (Summer) 2015 – New York, NY

The Fancy Food Show is North America’s premier showcase for specialty/gourmet, ethnic, natural, and

organic foods, snacks, and beverages. Serving every major food-buying channel, the show is a must-attend event in the food industry.

Website: www.specialtyfood.com

For more information please visit: Link