This article is from the source 'guardian' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.theguardian.com/business/live/2022/feb/17/uk-exporters-brexit-trade-stock-markets-ftse-inflation-economy-consumers-us-jobs-business-live

The article has changed 17 times. There is an RSS feed of changes available.

Version 11 Version 12
Many UK exporters say Brexit trade deal hurts business; price rises loom; US jobless claims rise – business live Many UK exporters say Brexit trade deal hurts business; price rises loom; US jobless claims rise – business live
(32 minutes later)
Rolling coverage of the latest economic and financial newsRolling coverage of the latest economic and financial news
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
UK businesses are calling on the government for more help exporting to Europe, after new research found that many firms believed the EU trade deal was not helping them grow or increase sales.UK businesses are calling on the government for more help exporting to Europe, after new research found that many firms believed the EU trade deal was not helping them grow or increase sales.
The British Chambers of Commerce (BCC) has surveyed 1,000 businesses, and found that a majority said it has created problems such as pushing up costs, increasing paperwork and delays, and putting the UK at a competitive disadvantage.The British Chambers of Commerce (BCC) has surveyed 1,000 businesses, and found that a majority said it has created problems such as pushing up costs, increasing paperwork and delays, and putting the UK at a competitive disadvantage.
Just 8% of firms agreed that the Trade and Co-operation Agreement (TCA) was ‘enabling their business to grow or increase sales’, while 54% disagreed.Just 8% of firms agreed that the Trade and Co-operation Agreement (TCA) was ‘enabling their business to grow or increase sales’, while 54% disagreed.
For UK exporters 12% (or just one in eight) agreed that the TCA was helping them, while 71% disagreed.For UK exporters 12% (or just one in eight) agreed that the TCA was helping them, while 71% disagreed.
The BCC received 59 comments on the merits of the TCA, which was agreed on Christmas Eve 2020, including:The BCC received 59 comments on the merits of the TCA, which was agreed on Christmas Eve 2020, including:
It had allowed some companies to continue to trade without significant changeIt had allowed some companies to continue to trade without significant change
It had encouraged firms to look at other global marketsIt had encouraged firms to look at other global markets
It had provided stability to allow firms to plan.It had provided stability to allow firms to plan.
But this was outnumbered by 320 comments criticising the deal, such as:But this was outnumbered by 320 comments criticising the deal, such as:
It had led to rising costs for companies and their clientsIt had led to rising costs for companies and their clients
Smaller businesses did not have the time and money to deal with the bureaucracy it had introducedSmaller businesses did not have the time and money to deal with the bureaucracy it had introduced
It had put off EU customers from considering UK goods and services – due to the perceived costs and complexities.It had put off EU customers from considering UK goods and services – due to the perceived costs and complexities.
William Bain, head of trade policy at the BCC, said smaller firms are particularly suffering from the change to trading relationships between the UK and the EU.William Bain, head of trade policy at the BCC, said smaller firms are particularly suffering from the change to trading relationships between the UK and the EU.
The BCC has made a number of suggestions, including moves to reduce the complexity of exporting food, and tackling limitations on business travel and work activities in the EU.The BCC has made a number of suggestions, including moves to reduce the complexity of exporting food, and tackling limitations on business travel and work activities in the EU.
Last week, MPs on parliament’s spending watchdog warned that Brexit red tape has damaged Britain’s trade with the EU. They fear the situation could worsen unless the government works with Brussels to reduce hold-ups at UK ports,Last week, MPs on parliament’s spending watchdog warned that Brexit red tape has damaged Britain’s trade with the EU. They fear the situation could worsen unless the government works with Brussels to reduce hold-ups at UK ports,
A Government spokesperson, though, says businesses are getting support to help with Brexit changes:A Government spokesperson, though, says businesses are getting support to help with Brexit changes:
But there is evidence that UK trade has weakened over the last few years. UK exports of goods to the EU were down £20bn last year compared with the last period of stable trade with Europe, according to official figures marking the first full year since Brexit.But there is evidence that UK trade has weakened over the last few years. UK exports of goods to the EU were down £20bn last year compared with the last period of stable trade with Europe, according to official figures marking the first full year since Brexit.
Elsewhere today, companies such as Nestlé , Reckitt Benckiser and Standard Chartered are reporting results.Elsewhere today, companies such as Nestlé , Reckitt Benckiser and Standard Chartered are reporting results.
European markest are set to open a little lower, with the Ukraine crisis firmly in focus.European markest are set to open a little lower, with the Ukraine crisis firmly in focus.
The US has said that Russia has deployed another 7,000 troops to the border, while Ukraine has denied claims by Russian-backed separatists that it has conducted mortar attacks on their terrirory.The US has said that Russia has deployed another 7,000 troops to the border, while Ukraine has denied claims by Russian-backed separatists that it has conducted mortar attacks on their terrirory.
The agendaThe agenda
7am GMT: European new car registrations for January7am GMT: European new car registrations for January
9.3am GMT: ONS weekly survey of economic activity and social change9.3am GMT: ONS weekly survey of economic activity and social change
1.30pm GMT: US monthly building permits for January1.30pm GMT: US monthly building permits for January
1.30pm GMT: US weekly jobless figures1.30pm GMT: US weekly jobless figures
Stocks are also lower in Europe.
The UK’s FTSE 100 is now down 87 points, or 1.15%, with travel companies, oil firms and miners all weaker.
Germany’s DAX is down 0.5%, while Italy’s FTSE Mib is off 1%.
In New York, stocks have opened lower as the Ukraine crisis continues to worry investors.
The main indices are in the red, shortly after president Joe Biden told reporters that a Russian invasion could happen in the next “several days”. Biden described the chance of conflict in the region as “very high.”
The Dow Jones industrial average of 30 large US companies has dropped by 315 points, or 0.9% to 34,619 points.
The broader S&P 500 is also down 0.9%, with the Nasdaq Composite off 1%.
Biden’s comments came after Nato secretary-general Jens Stoltenberg said the alliance is concerned that Russia is “trying to stage a pretext for an armed attack against Ukraine”.
In another step, Russia has expelled the deputy US ambassador to Moscow, Bartle Gorman.
Associated Press has more details:
Rowan Williams, the former archbishop of Canterbury, has called on the UK government to impose a wealth tax on the super-rich to help tackle “spiralling inequality”, which he said was “deeply damaging to our collective morale and trust”.Rowan Williams, the former archbishop of Canterbury, has called on the UK government to impose a wealth tax on the super-rich to help tackle “spiralling inequality”, which he said was “deeply damaging to our collective morale and trust”.
Williams, who was the most senior bishop in the Church of England from 2002 to 2012, on Thursday joined a growing group of moral leaders demanding a one-off tax on the richest 1% of the population to help close the “staggering” gap between the richest and poorest in society.Williams, who was the most senior bishop in the Church of England from 2002 to 2012, on Thursday joined a growing group of moral leaders demanding a one-off tax on the richest 1% of the population to help close the “staggering” gap between the richest and poorest in society.
“Spiraling inequality is a major issue in our society, and all the evidence suggests this is deeply damaging to our collective morale and trust,” Williams said.“Spiraling inequality is a major issue in our society, and all the evidence suggests this is deeply damaging to our collective morale and trust,” Williams said.
Williams told the super-rich they should not view paying back to wider society as a tax burden but as “an opportunity to build a stable, sustainable economy that works for everyone”.Williams told the super-rich they should not view paying back to wider society as a tax burden but as “an opportunity to build a stable, sustainable economy that works for everyone”.
Here’s the full story:Here’s the full story:
British Gas has set up a scheme to protect the hundreds of millions of pounds it receives in advance payments from customers towards their future energy bills, after the “national scandal” that left households on the hook to pay £500m after a string of energy firms spent consumers’ deposits before going bust.British Gas has set up a scheme to protect the hundreds of millions of pounds it receives in advance payments from customers towards their future energy bills, after the “national scandal” that left households on the hook to pay £500m after a string of energy firms spent consumers’ deposits before going bust.
The Centrica-owned energy firm has pledged to ringfence the £294m it holds in credit balances through direct debits from its 7 million customers in a bank account separate from funds it uses to run the day-to-day business.The Centrica-owned energy firm has pledged to ringfence the £294m it holds in credit balances through direct debits from its 7 million customers in a bank account separate from funds it uses to run the day-to-day business.
“I think that in any other walk of life using over £500m of customers’ money to prop up a business that subsequently failed would be considered a national scandal,” said Chris O’Shea, the chief executive of Centrica.“I think that in any other walk of life using over £500m of customers’ money to prop up a business that subsequently failed would be considered a national scandal,” said Chris O’Shea, the chief executive of Centrica.
New house-building projects fell by 4.1% across America last month, as builders continue to face supply chain disuption, rising materials prices...and bad weather.New house-building projects fell by 4.1% across America last month, as builders continue to face supply chain disuption, rising materials prices...and bad weather.
Housing starts in January fell to an annual rate of 1,638,000, from a December estimate of 1,708,000.Housing starts in January fell to an annual rate of 1,638,000, from a December estimate of 1,708,000.
That could be a sign that rising borrowing costs are weighing on the sector. If so, that would be a blow to efforts to increase housing supply, and address the shortage that pushed prices to record levels.That could be a sign that rising borrowing costs are weighing on the sector. If so, that would be a blow to efforts to increase housing supply, and address the shortage that pushed prices to record levels.
But it’s also due to the freezing weather which hit the US last month, with Winter Storm Izzy bringing heavy snow and damaging ice to the southeastern US, disrupting power supplies and forcing flights to be cancelled.But it’s also due to the freezing weather which hit the US last month, with Winter Storm Izzy bringing heavy snow and damaging ice to the southeastern US, disrupting power supplies and forcing flights to be cancelled.
House completions were down 5.2% in January -- which may also show that work was held up in the freezing weather.House completions were down 5.2% in January -- which may also show that work was held up in the freezing weather.
The number of building permits (giving permission to start construction) rose 0.7% during the month.The number of building permits (giving permission to start construction) rose 0.7% during the month.
Just in. The number of Americans filing new claims for unemployment benefit rose last week.Just in. The number of Americans filing new claims for unemployment benefit rose last week.
There were 248,000 initial claims in the week to Saturday February 12, an increase of 23,000 on the previous seven days.There were 248,000 initial claims in the week to Saturday February 12, an increase of 23,000 on the previous seven days.
That’s more than economists had expected, but still close to pre-pandemic levels.That’s more than economists had expected, but still close to pre-pandemic levels.
Jobless claims hit their lowest since 1969 late last year, falling below 200,000 as firms held onto workers in a tight labour market.Jobless claims hit their lowest since 1969 late last year, falling below 200,000 as firms held onto workers in a tight labour market.
Back in April 2020, they hit a record at above 6m, as firms shed staff early in the pandemic.Back in April 2020, they hit a record at above 6m, as firms shed staff early in the pandemic.
US car safety regulators have opened an investigation to assess potential safety issues in certain Tesla vehicles after users reported “phantom braking.”US car safety regulators have opened an investigation to assess potential safety issues in certain Tesla vehicles after users reported “phantom braking.”
The National Highway Traffic Safety Administration has started a formal investigation into 416,000 Tesla vehicles over reports of unexpected brake activation tied to its driver assistance system Autopilot.The National Highway Traffic Safety Administration has started a formal investigation into 416,000 Tesla vehicles over reports of unexpected brake activation tied to its driver assistance system Autopilot.
The preliminary evaluation covers 2021-2022 Tesla Model 3 and Model Y vehicles in the United States after the agency received 354 complaints about the issue over the past nine months.The preliminary evaluation covers 2021-2022 Tesla Model 3 and Model Y vehicles in the United States after the agency received 354 complaints about the issue over the past nine months.
NHTSA said:NHTSA said:
Earlier this month Tesla updated its “Full Self-Driving” software, to fix a situation where cars would roll through stop signs without coming to a full stop.Earlier this month Tesla updated its “Full Self-Driving” software, to fix a situation where cars would roll through stop signs without coming to a full stop.
Turkey’s central bank has left interest rates on hold, despite inflation having surged to nearly 50% in January.Turkey’s central bank has left interest rates on hold, despite inflation having surged to nearly 50% in January.
The Central Bank of the Republic of Turkey voted to leave its benchmark rate at 14% today.The Central Bank of the Republic of Turkey voted to leave its benchmark rate at 14% today.
During 2021 it cut borrowing costs several times, lowering rates from 19%, under pressure from President Recep Tayyip Erdoğan to ease monetary policy.During 2021 it cut borrowing costs several times, lowering rates from 19%, under pressure from President Recep Tayyip Erdoğan to ease monetary policy.
Those cuts sent the lira slumping to record lows, driving up import costs and creating an economic crisis.Those cuts sent the lira slumping to record lows, driving up import costs and creating an economic crisis.
The CBRT said that the pandemic, and rising ‘geopolitical risks’ were creating uncertainty and threatening the global recovery.The CBRT said that the pandemic, and rising ‘geopolitical risks’ were creating uncertainty and threatening the global recovery.
Erdoğan seems to have relaxed his pressure for rate cuts. Earlier today he said debate on the issue had largely dropped off the agenda, and that the government’s goal was to lower inflation to single digits.Erdoğan seems to have relaxed his pressure for rate cuts. Earlier today he said debate on the issue had largely dropped off the agenda, and that the government’s goal was to lower inflation to single digits.
Consumer goods company Reckitt, which makes household brands including Dettol, Nurofen and Strepsils, is also planning to pass rising costs onto consumers.Consumer goods company Reckitt, which makes household brands including Dettol, Nurofen and Strepsils, is also planning to pass rising costs onto consumers.
Reckitt said it had faced on average 11% cost increases during 2021, and predicted these would climb even higher this year- echoing the message from Nestlé this morning.Reckitt said it had faced on average 11% cost increases during 2021, and predicted these would climb even higher this year- echoing the message from Nestlé this morning.
The Berkshire-based firm, formerly known as Reckitt Benckiser, said it was absorbing some of its increased costs, but was increasing prices of some of its products.The Berkshire-based firm, formerly known as Reckitt Benckiser, said it was absorbing some of its increased costs, but was increasing prices of some of its products.
“We are passing some pricing on to consumers, but we minimise that through programmes that we have internally such as productivity programmes,” Jeff Carr, chief financial officer at Reckitt, told reporters.“We are passing some pricing on to consumers, but we minimise that through programmes that we have internally such as productivity programmes,” Jeff Carr, chief financial officer at Reckitt, told reporters.
Reckitt said it was seeing “across the board” increases in the price of raw materials, especially those related to crude oil such as plastics, as well as tinplate – used for making tin cans – and dairy products.Reckitt said it was seeing “across the board” increases in the price of raw materials, especially those related to crude oil such as plastics, as well as tinplate – used for making tin cans – and dairy products.
The company has also been facing continued supply chain disruption, and higher transport costs.The company has also been facing continued supply chain disruption, and higher transport costs.
Carr said:Carr said:
Back in the markets, gold hit its highest level in eight months this morning as rising inflation and the Ukraine crisis boosted demand.Back in the markets, gold hit its highest level in eight months this morning as rising inflation and the Ukraine crisis boosted demand.
Bullion rose as high as $1,892 per ounce, for the first time since June 2021. It’s now gained around 5% since the start of February.Bullion rose as high as $1,892 per ounce, for the first time since June 2021. It’s now gained around 5% since the start of February.
Fawad Razaqzada, market analyst at ThinkMarkets, says three factors have pushed up gold: heightened geopolitical risks and stock market volatility; falling real yields, and soaring inflation.Fawad Razaqzada, market analyst at ThinkMarkets, says three factors have pushed up gold: heightened geopolitical risks and stock market volatility; falling real yields, and soaring inflation.
Gold dropped on Tuesday when Russia claimed it was withdrawing some troops, but has now jumped to its highest since last June.Gold dropped on Tuesday when Russia claimed it was withdrawing some troops, but has now jumped to its highest since last June.
Victoria Scholar, head of investment at interactive investor, also attributes gold’s rise to the Ukraine crisis:Victoria Scholar, head of investment at interactive investor, also attributes gold’s rise to the Ukraine crisis:
Europe’s car industry continues to be badly hurt by chip shortages.Europe’s car industry continues to be badly hurt by chip shortages.
New car registrations in the European Union fell by 6% year-on-year in January to 682,596 units. That’s even worse than the previous worst January, a year earlier.New car registrations in the European Union fell by 6% year-on-year in January to 682,596 units. That’s even worse than the previous worst January, a year earlier.
Industry body ACEA reported that ongoing semiconductor shortages are still damaging car sales across the region, with factories forced to cut production.Industry body ACEA reported that ongoing semiconductor shortages are still damaging car sales across the region, with factories forced to cut production.
ACEA says:ACEA says:
In the UK, total new car sales rose by 27.5% year on year in January, although that increase was compared with January 2021 when the UK was in a strict lockdown and car showrooms were closed.In the UK, total new car sales rose by 27.5% year on year in January, although that increase was compared with January 2021 when the UK was in a strict lockdown and car showrooms were closed.
Consumer demand for travel insurance is returning to near pre-pandemic levels, according to the price-comparison site Moneysupermarket, but high energy prices mean it does not expect any profit from tariff switching this year.Consumer demand for travel insurance is returning to near pre-pandemic levels, according to the price-comparison site Moneysupermarket, but high energy prices mean it does not expect any profit from tariff switching this year.
The financial services platform, which helps consumers compare deals, said revenue from its travel insurance comparisons had bounced back in the last three months of 2021.The financial services platform, which helps consumers compare deals, said revenue from its travel insurance comparisons had bounced back in the last three months of 2021.
Revenues at its Travelsupermarket division reached 35% of 2019 levels in January, as further easing of coronavirus restrictions was announced.Revenues at its Travelsupermarket division reached 35% of 2019 levels in January, as further easing of coronavirus restrictions was announced.
However, it said high wholesale energy prices meant there had been no switchable tariffs available to consumers since October.However, it said high wholesale energy prices meant there had been no switchable tariffs available to consumers since October.
As a result, the London-listed company said it would not make any profit this year from customers using their platform to compare deals from energy providers, although it predicted the tariff-switching market would return in the medium term.As a result, the London-listed company said it would not make any profit this year from customers using their platform to compare deals from energy providers, although it predicted the tariff-switching market would return in the medium term.
UK consumers continued to return to the shops last week - but visits are still below pre-pandemic levels.UK consumers continued to return to the shops last week - but visits are still below pre-pandemic levels.
The ONS reports that overall retail footfall in the UK increased by 2% from the previous week, but remained at 86% of the level seen in the equivalent week of 2019.The ONS reports that overall retail footfall in the UK increased by 2% from the previous week, but remained at 86% of the level seen in the equivalent week of 2019.
It’s the fifth consecutive week of increasing retail footfall, driven by weekly rises in high street footfall as Covid-19 cases dropped from their record highs.It’s the fifth consecutive week of increasing retail footfall, driven by weekly rises in high street footfall as Covid-19 cases dropped from their record highs.
More than three quarters of adults felt their cost of living rise this month, as prices in the shops increase.More than three quarters of adults felt their cost of living rise this month, as prices in the shops increase.
Around 76% of adults said their cost of living had increased over the last month, according to the latest Office for National Statistics’s Opinions and Lifestyle Survey.Around 76% of adults said their cost of living had increased over the last month, according to the latest Office for National Statistics’s Opinions and Lifestyle Survey.
That’s a notable increase on the 69% recorded in the last two weeks of January, showing inflationary pressure are rising.That’s a notable increase on the 69% recorded in the last two weeks of January, showing inflationary pressure are rising.
The most frequently reported reasons continued to be:The most frequently reported reasons continued to be:
rising food shop prices (90%)rising food shop prices (90%)
rising energy bills (77%)rising energy bills (77%)
increases to the price of fuel (69%)increases to the price of fuel (69%)
Consultants at Kantar warned this month that the average annual grocery bill is on track to rise by £180 this year, with grocery prices having increased 3.8% per year in January.Consultants at Kantar warned this month that the average annual grocery bill is on track to rise by £180 this year, with grocery prices having increased 3.8% per year in January.
And the chairman of Tesco, Britain’s biggest supermarket chain, has forecast that “the worst is yet to come” on food price inflation, which could soon hit 5%.And the chairman of Tesco, Britain’s biggest supermarket chain, has forecast that “the worst is yet to come” on food price inflation, which could soon hit 5%.
Many of the cheaper grocery items have seen the steepest increases, which is hurting the poorest families.Many of the cheaper grocery items have seen the steepest increases, which is hurting the poorest families.
My colleague Zoe Wood reported yesterday that the Canterbury and District food bank has seen a surge in demand from struggling households, and falling donations as supporters are also squeezed - just as food prices jump.My colleague Zoe Wood reported yesterday that the Canterbury and District food bank has seen a surge in demand from struggling households, and falling donations as supporters are also squeezed - just as food prices jump.
Motorists have also been paying more at the pumps, with petrol and diesel prices hitting records this month.Motorists have also been paying more at the pumps, with petrol and diesel prices hitting records this month.
Airbus has announced its highest-ever profits and a return to paying a dividend to shareholders, in a sign of the aerospace industry’s burgeoning recovery from the Covid pandemic.Airbus has announced its highest-ever profits and a return to paying a dividend to shareholders, in a sign of the aerospace industry’s burgeoning recovery from the Covid pandemic.
The European plane-maker reported a record net income for 2021 of €4.2bn (£3.5bn), in stark contrast to a steep €1.1bn loss in 2020, when the pandemic first hit. The company, which is headquartered in Toulouse, France, made revenues of €52bn, up from €50bn in 2020.The European plane-maker reported a record net income for 2021 of €4.2bn (£3.5bn), in stark contrast to a steep €1.1bn loss in 2020, when the pandemic first hit. The company, which is headquartered in Toulouse, France, made revenues of €52bn, up from €50bn in 2020.