Big Society projects get £3.1 million boost
Four Big Society projects are to get £3.1 milion in funding from dormant bank accounts, the government has announced.
The cash will be used to help the long term unemployed set up business, vulnerable youngsters find jobs, a community energy project and fund the first social business stock exchange.
In total, about £400 million in unused bank accounts is being made available.
The Big Society Investment Fund will the support projects until the Big Society Capital group becomes operational early in 2012 and takes over its duties.
Civil society minister Nick Hurd said: “These investments will bring real changes to people’s lives.
“This is about putting money that has been lying around dormant in bank accounts for years to good use in projects that will benefit our local communities and social entrepreneurs,” Mr Hurd said.
“They will help young people into jobs and give the long-term unemployed the opportunity to set up their own businesses.
“The Big Society Investment Fund, under the auspices of the Big Lottery Fund, is doing a fantastic job forging the way. Already, their investment decisions show the range of exciting projects that just need financial backing to get going.”
FranchisingWorks is to receive £1m to help long-term unemployed start their own businesses, while Triodos Bank will get £500,000 to help young people find employment in Merseyside.
Finance South East is to set up a fund that will offer renewable energy in deprived areas.
And £850,000 will go to set up the world’s first social stock exchange in London. It will provide access to capital for entrepreneurs interested in creating businesses benefiting social and community projects.
John Kingston, chairman of the committee which agreed the funding, said: “We’ve been impressed by the strength of the deal-flow under the Big Society Investment Fund, and I’m confident we’ll be approving more investments in early 2012, to help build and grow the social investment market here in the UK.”
UK borrowing costs at record low
The UK government’s cost of borrowing in markets briefly fell to a record low last week.
The 10 year gilt yield fell below 2% in thin post Christmas trading.
The 10 year gilt yield – which indicates the interest rate the Treasury would probably have to pay if it wanted to borrow more money for that period – later recovered to about 2.035%.
The yield has never before fallen below 2% throughout a history that stretches back to the Victorian era.
The low level reflects market expectations that the UK economy is likely to experience years of low growth and low inflation, with the Bank of England holding short term interest rates close to zero.
USA and Germany have also seen their borrowing costs fall to historic lows in recent months for similar reasons, while stagnant Japan has experienced ultra-low bond yields for the last 15 years.
The fall is in stark contrast with the experience of eurozone governments – other than Germany.
Their cost of borrowing has risen sharply in response to their economic troubles.
Unlike the UK and US, they do not control their own central banks or their own money supply, giving rise to market fears that they may run out of money to repay their debts.
On Thursday, the ONS revised up its overall estimate for growth in the UK economy between July and September of this year.
The UK economy grew by 0.6% over the period, faster than previous estimates of 0.5%, with growth driven by strong performances in the service sector and construction.
Business Win wishes you a prosperous New Year for 2012
Business Win wishes you a prosperous New Year for 2012
Business Win wishes you a prosperous New Year for 2012.
Amid all of the doom and the gloomy predictions by the so called experts for the future in 2012- there are bound to be some success stories along the way.
Just choose to be positive- and remember the Monty Python song in the Life of Brian “Always look on the bright side of life“.
UK economic growth revised up to 0.6% by officials
The UK economy grew by 0.6% between July and September, official figures have shown- which is faster than previous estimates of 0.5%.
Growth was driven by strong performance in the service sector and construction.
However, the growth estimate for the second quarter of the year was revised down from 0.1% to zero by the Office for National Statistics (ONS).
The office also said the UK’s current account deficit in the same period was £15.2 billion, the highest on record.
The current account deficit is a broader measure of the trade deficit, and includes cash transfers such as interest income and workers’ remittances.
The deficit was equivalent to 4% of GDP – the highest such ratio since 1990.
The ONS said the UK’s economic growth in recent quarters continued to indicate a “fragile economic picture”.
Since the economy started growing again in mid-2009 it has regained just over half of the output lost during the five quarters of contraction.
Despite the improved growth figure for the third quarter, analysts also warned that the UK economy was still heading for tough times.
In its minutes published last week, the Bank of England explicitly left room for more QE. “Some members continued to note that the balance of risks to inflation in the November Inflation Report projections meant that a further expansion of the asset purchases programme might well become warranted in due course,” the minutes said.
Toyota seeks to boost production by 20%
Toyota has said it plans to increase production by 20% next year as it tries to recover ground lost due to March’s earthquake in Japan and the recent floods in Thailand.
The company aims to produce 8.48 million vehicles in 2012 and increase sales by a quarter to 8.65 million.
Toyota is due to lose its crown as the world’s biggest carmaker this year to the US’s General Motors (GM).
Earlier this month, the carmaker halved its profit forecast for this year.
It now expects a net profit of £1.5 billion (180bn yen) for the year ending 31 March 2012, compared with its previous forecast of £325 billion made in August.
‘Sceptical’
Given the current global economic climate, and the possible impact of the eurozone debt crisis on European demand, some analysts think Toyota’s production plans were a little optimistic.
Japanese carmakers have had a tough year so far, with both the March earthquake and Thailand’s disaster affecting production, and the strong yen – which increases the price of exported cars – putting pressure on sales overseas.
Toyota has also suffered reputational damage due to recalling about 12 million cars in the past two years.
However, some observers still expect the Japanese giant to recover its position as the world’s top carmaker, a position it has held since taking over from GM in 2008.
UK car production up for sixth month in November
Car production in the UK rose for the sixth straight month in November according to the Society of Motor Manufacturers and Traders (SMMT).
A total of 136,111 cars were made last month, up 8.5% from the same point last year.
UK engine production rose by 1.7% in November.
“UK vehicle and engine production continues to lead a manufacturing recovery,” said SMMT chief executive Paul Everitt.
“Despite the challenges in the eurozone, the UK motor industry expects further growth in 2012.”
For the first 11 months of the year, the total number of cars made was about 1.25 million – 6.1% more than was made in the same period in 2010.
Premium manufacturers are performing well at present, notably JLR and Rolls-Royce both of whom are enjoying record years fuelled by Chinese demand for British exports.
In November, Toyota said it would be investing more than £100 million at the firm’s Derbyshire factory to make it the sole European centre for making its next hatchback, creating up to 1,500 jobs.
Moss Bros reports strong sales increase
Menswear retailer Moss Bros has unveiled a double digit increase in sales as its efforts to turn around its fortunes continue.
In the 19 weeks to December 10, gross profits were up 7.9% with sales on a same store basis rising by 10.5%.
The figures follow the sale of Hugo Boss and Cecil Gee stores in an attempt to focus on the Moss brand.
It used the proceeds to improve Moss Bros stores, improve its online offering and pay off debts.
The retailer said costs continued to be tightly managed.
It also said that its new pilot shop, which opened in Canary Wharf in May, “continues to trade well”.
The shop combines the firm’s hire, bespoke and retail businesses under one roof.
Further stores have opened in recent weeks in Liffey Valley, Meadowhall and Bluewater.
Chief executive Brian Brick said: “We are encouraged by the sales momentum throughout the business.”
Sports Direct sales rise despite fragile business climate
Sports Direct has hailed a “strong performance” after reporting half-year pre-tax profits of £100.3 million- a modest increase from the same period in 2010.
The retailer said that an 8.4% growth in sales to £888.6 million came despite a “fragile consumer climate”.
Chief executive Dave Forsey said he was particularly pleased because the comparison with last year included a sales boost from football’s World Cup.
Sports Direct said online sales rose 85% for the six months to 23 October.
Mr Forsey said: “The group has yet again delivered a strong performance in what is an exceptionally challenging consumer trading environment.
“Growth has been achieved… against strong FIFA World Cup comparatives.”
In a statement, Sports Direct said that trading since the beginning of November had “remained in line with management’s expectations” and that it saw “substantial potential” to grow online sales.
Car parts firm Cobra UK to create 49 jobs
A new £12 million order to supply General Motors (GM) with parts will see the UK company double its workforce.
Welshpool-based Cobra UK has won a contract to provide load space covers for the Vauxhall Astra, which is made at a plant in Cheshire.
The expansion will create 49 jobs, taking the workforce to nearly 100.
It follows another major order, worth £56 million, to export parts to Thailand, Brazil and Indonesia, which was announced in June.
Cobra UK also supplies Bentley, Volvo and Audi with trim products ranging from load space covers and tread plates to sun blinds.
It has also branched out into the aerospace industry and is developing a prototype lightweight aircraft seat.
The company has bounced back since the collapse of MG Rover in 2005 saw it lose 90% of its sales.
Gary Seale, Cobra UK’s managing director, said he was delighted.
“We have proved that we consistently produce the high qualities required by the European automotive industry and this is a real boost for Wales as a whole. It is particularly good news that Vauxhall is actively seeking to source supplies form the UK and have recognised Cobra as a major supplier.”
Bill Parfitt, chairman of GM UK and Vauxhall Motors, said Vauxhall was keen to push for new business with UK suppliers, and GM globally was increasingly aware of the great potential in the country.
GM said from next year Cobra would produce components for its plant in Ellesmere Port where the Astra Sports Tourer was built for the European market.
UK trade deficit narrows as exports hit a record growth
The UK’s trade deficit narrowed sharply in October, as the value of exports hit a record high new official figures have shown.
The Office for National Statistics (ONS) said the deficit in goods fell to £7.6 billion, down from £10.2 billion September.
Exports of goods rose to a record £26.5 billion, while imports fell from September’s record £34.6 billion to £34.1 billion.
There was a particularly strong rise in exports of chemicals, medical products, and telecoms equipment, the ONS said.
Despite the improvement, economists urged caution and forecast that the improvement was unlikely to be repeated.
Separately, ONS figures showed that the price of goods leaving UK factories eased in November, confirming predictions that inflation could be edging down.
Producer output prices rose by 5.4% last month year-on-year, down from 5.7% in October.
Input prices were 13.4% higher on the year, compared with 14.3% in October.