Business News Round Up (19/08/2024)
Scottish property investment bucks UK trend
Investment in Scotland’s property market increased considerably in the first half of the year, despite sharp falls across the rest of the UK. Property advisor JLL showed the Scottish property market attracted £770m of investment- a 4% increase on its 10-year average trend and a 30% increase on the corresponding period in 2023. The UK saw a 25% dip in investment in the first half of the year, when compared to the 10-year average. London saw a 46% fall in investment, but still outstripped other regions by attracting £3.5bn. Greater London (£2.8bn), the South East (£2bn), the north west (£970m) and Scotland (£770m) made up the rest of the top five for investment volumes. JLL’s research showed investment in the country’s property sector reached £16.2bn in the first half, down on the 10-year average of £21.5bn, but in line with figures seen in the first half of last year.
https://www.insider.co.uk/news/scottish-property-investment-bucks-uk-33476622
UK food and drink business confidence drops 8% as economic and regulatory challenges persist
The Food and Drink Federation’s latest Q2 report has revealed businesses in the UK are preparing to make investment into their operations, but confidence has decreased by 8%. As previously reported by Confectionery Production, the sector has endured notable tests in recent years, with high levels of inflation resulting in price spikes that have impacted on retail sales, particularly within premium brand segments. While the UK economy had been showing signs of recovering in recent months, the latest national figures show a rise in inflation to 2.2%, with this figure being higher within the retailing sector, as the price of ingredients, energy and logistics costs remain elevated. The drop in confidence is the first time this has occurred since Q2 2023, with around half of companies surveyed expecting to keep their present levels of research and development, with 56% of those firms looking to make investment in machinery.
Region maintains its strong pedigree in attracting real estate investment
The North West maintained its position as the most attractive region for real estate investment outside London and the South East in the first half of the year, according to research from global property advisor JLL. It showed the region’s property sector attracted £970m of investment in the first half. Though exceeding its Midlands and Yorkshire counterparts, it was still 7% down on the 10-year average for the region. Investment in the region’s real estate reflected the trend seen across the rest of the country as economic and political uncertainty deterred investors. The UK saw a 25% dip in investment in the first six months of the year when compared with the 10-year average. JLL’s research showed investment in the country’s property sector reached £16.2bn in H1, down on the 10-year average of £21.5bn, but in line with figures seen in H1 2023.
Scottish investment funds struggle in global market
Scottish asset management firms have been identified as poor investment performers in a new report. Spot the Dog, a report conducted by Bestinvest by Evelyn Parnters which analyses fund performance across the globe, found that Ballie Gifford and Martin Curries, both Scottish asset managers, are high in their list ranking poor investment performance. Dog funds – investment firms that have delivered worse returns than the market it invests in for three consecutive 12-month periods, have been down a further 44% according to the report, amounting to £53.4bn of money from investors year-on-year. Despite the AI boom at the end of 2023 improving the US stock market, the Spot the Dog report reveals these benefits to be narrow, only helping already strong performers.
https://www.digit.fyi/scottish-investment-funds-struggle-in-global-market/