Business News Round Up (30/11/2020)
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Overseas financial services investment slows
Foreign investment into UK financial services is expected to slow over the next 12 months as the Covid pandemic shifts investor sentiment. Last year investor sentiment firmly placed Financial Services as the driving force of UK growth, and the sector attracted 99 projects, equating to more than a quarter of FDI in the sector across Europe. However, EY’s latest UK Attractiveness analysis for Financial Services indicates that amid the pandemic investors are looking to prioritise investment in the digital economy, with the real estate and healthcare industries also rising in prominence, at least in the short term. Investor sentiment on short-term investment plans into the UK has fallen over the course of this year, and the number of overseas companies planning to invest in the next 12 months has dropped to 25% from a ten-year high of 31% in April. Within financial services, there has also been a fall, and only 10% of overseas firms are now planning to establish or expand their operations in the UK in the coming year.
https://dailybusinessgroup.co.uk/2020/11/overseas-financial-services-investment-slows/
Seven in ten of Scotland’s food and drink businesses ‘still unprepared for Brexit’
With only one month left until the end of the transition period, nearly three quarters of Scotland’s food and drink industry (72%) feel unprepared for Brexit and any resulting disruption, according to the Scotland Food & Drink association. The revelation comes ahead of talks between industry leaders and the UK Government, taking place on 1 December. The meeting with Department for Environment, Food & Rural Affairs minister Victoria Prentis MP will discuss the contents of an open letter sent by leaders of Scotland’s food and drink industry to the Prime Minister. It is seeking urgent action and assurances around trading arrangements once the Brexit transition period ends on 31 December. With many of the new trading rules still unknown, coupled with businesses desperately fighting to survive the impact of the pandemic, the industry has called for a six-month grace period to adjust. Of particular concern is the requirement to issue millions of new export certificates for food products.
https://www.insider.co.uk/news/almost-three-quarters-scotlands-food-23079986
North West confidence down but optimism lingers – Lloyds
Business confidence in the North West fell during November, according to a new report, but optimism lingers on the back of a successful mass testing trial in Liverpool and the progress made on a vaccine. Lloyds Bank Commercial Banking’s Business Barometer shows that companies in the region reported lower confidence in their own business prospects month-on-month at -26%. When taken alongside their views of the economy overall, this gives a headline reading of -28%. When it comes to hiring intentions, a net balance of 29% expect to reduce staff levels over the next year, up four points on last month.
https://www.insidermedia.com/news/north-west/north-west-confidence-down-but-optimism-lingers-lloyds
Business confidence falls, but vaccine developments bring new positivity
Confidence in Scotland’s businesses fell by 10 points in November – but saw a dramatic rise amid coronavirus vaccine announcements, according to a new survey. The Business Barometer from Bank of Scotland Commercial Banking found optimism sat at -38% for Scottish firms. However, the report tracked a dramatic increase across the whole UK in business confidence after the announcement that the Pfizer and BioNTech vaccine has 90% efficacy against Covid-19. Companies in Scotland also reported lower confidence in their own prospects, down six points month-on-month at -27%. For the month as a whole, UK business confidence registered at -21%, down three points on October.
https://www.insider.co.uk/news/scottish-business-confidence-falls-vaccine-23089786