Pegler’s market report – 02.08.16: UK businesses target non-EU markets

As published in the Brighton Argus (02.08.16) Business on page 21 under the title Pegler’s Market Report:

UK businesses target non-EU markets

The UK’s exports have grown at a world-beating pace for the first time in nearly a decade, according to official figures, as businesses rapidly increased the share of goods they sold outside of the European Union. The success of British firms in repositioning to markets further afield has helped boost overall export growth above the global rate of expansion for the first time since 2006, according to the Office for National Statistics (ONS).

Britons bought fewer houses in June than in any month since May 2015, indicating that nervousness around the EU referendum weighed down the housing market. A total of 64,766 properties were bought in the month, according to the Bank of England, down 3pc on the previous month and down 4.5pc from the 67,861 houses bought in June of 2015.

Estate agent Foxtons has reported a 42pc dive in profits and warned a Brexit-induced slowdown in its main London property market could cool the chain’s hitherto rampant branch expansion plans.

Barclays’ profits dived in the first half of this year as the cost of restructuring started to bite. The bank made £2.1bn in the past six months, down 21pc on the same period of 2015. Executives had hoped the additional costs of PPI were coming to an end, but the crisis is not over yet – Barclays has now set aside £7.8bn to deal with mis-selling claims and to refund customers.

Barclays’ new chief executive has accelerated plans to dispose of operations around the world, including selling down Barclays Africa and ditching the group’s retail banking operations in countries such as France, Spain and Italy.

British Airways-owner IAG said airline strikes, terrorism and sterling’s post-Brexit plunge has hit profits at the airline company, despite lower fuel costs. The company said there had been no “immediate regulatory” impact of the vote to leave the EU but that it had booked a negative currency impact of €148m over the six-month period.

Elsewhere, competition regulators have given the green light to Lloyds Pharmacy owner Celesio to acquire 277 pharmacies owned by Sainsbury’s, provided it sells 12 of its existing stores before the takeover.

By David Pegler, Brighton Capital Management