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Tag Archives: Europe – UK

UK Auto Production Plunges to 7-Year Low on Slumping Global Demand & “No Deal” Brexit Fears

Investment in the auto sector grinds to a halt. By Nick Corbishley, for WOLF STREET: Production of vehicles in the UK plunged 20% in the first half of 2019, compared to the same period last year, as the fallout from sharply declining demand in key export markets such as Europe and China as well as fears of a no-deal Brexit took a heavy toll on the sector, according to the Society of Motor Manufacturers and Traders (SMMT). Engine manufacturing dropped 10% during the same period. And...

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Another UK Fund Just Slammed its Doors Shut on Investors

This time, a fund liquidity crisis traps institutional investors, including pension funds. By Nick Corbishley, for WOLF STREET: Less than a week after the Bank of England issued a warning about the systemic risks posed by illiquid investment funds, news has surfaced that another run-on-the-fund caused fund managers to suspend withdrawals: This time, it’s M&G Investments, the fund management arm of UK insurance giant Prudential, that has suspended withdrawals from one of its...

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London Housing Bust: Prices Fall, Sales Plunge to 2009 Level

Most other regions in the UK cling to price gains. Home prices in Greater London – all types of homes combined – dropped 4.4% in May compared to May last year, the biggest 12-month drop since August 2009, to £457,471 ($569,000), the lowest since January 2016, according to the UK government’s Office for National Statistics today. The average price has now fallen 6.4% from the peak in July 2017. The central areas of London have for years been among the most magnificent housing bubbles in...

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Liquidity Crisis at Woodford Equity Fund Is Symptomatic of Systemic Problem, Bank of England Warns

$30 trillion of assets globally are held by similar open-ended funds. By Nick Corbishley, for WOLF STREET: The Bank of England warned on Thursday that “financial stability risks are increasing” from giant open-ended funds, which are estimated to hold some $30 trillion in assets globally. These funds are vast sources of financing for the real economy but can pose a systemic risk since the money often goes into assets that are hard to sell quickly, the central bank said in its latest...

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In Escalation of Trade War With Switzerland, EU Risks Balkanizing Europe’s Financial Markets

“Weaponizing” Europe’s financial services, with an eye on the UK after Brexit? By Nick Corbishley, for WOLF STREET: In recent days, the stock exchanges of Switzerland, the fourth-largest European market by value-traded, were dealt what seemed at first like a hammer blow: Brussels stripped them of financial equivalence with the European Union after a previous trade agreement between the two sides expired, with the result that traders from the EU’s 28 member states are no longer allowed...

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Liquidity Fears Hit Other UK “Equity Funds” as Investors Remain Trapped in Woodford Fund

Shares of one fund plunged 22% on Friday. Other funds under pressure, raising serious questions about just how liquid “equity funds” in the UK are. By Nick Corbishley, for WOLF STREET: There’s still no sign of relief for the hundreds of thousands of investors whose money is trapped in one of the UK’s biggest equity funds, the Woodford Equity Income Fund. The fund is supposed to offer its shareholders daily liquidity, meaning they can take part or all of their money out any day of the...

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Diesel Death-Spiral Drives UK Auto Sales to Five-Year Low

“Decline in buyer confidence,” collapsing sales of diesels & plug-in hybrids. But EV sales soar. By Nick Corbishley, for WOLF STREET: Sales of new passenger vehicles, as measured by registrations, fell 4.9% in June from a year earlier in the UK, according to the Society of Motor Manufacturers and Traders (SMMT). The UK is the second largest auto market in the EU, behind Germany. Total sales in the first half of 2019 dropped 3.4% year-over-year, driven by the ongoing collapse in...

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About this Biggest Plunge Since 2002 in Manufacturing in the UK

It was a doozie, but it shouldn’t have come as a surprise. Here’s why. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Production output in the UK dropped by 2.7% in April from March, and GDP fell by 0.4% in just one month, according to the latest figures by the Office of National Statistics. The manufacturing sector provided the largest contribution to the downturn, with the manufacturing index plunging 3.9% in April, from March, its biggest monthly fall since June...

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Another UK Outsourcing Giant Teeters, Collapsed Shares Add to Woes of Woodford Fund that Just Froze Withdrawals

Kier shares are one of the biggest holdings of Woodford Equity Income fund. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. UK construction and services giant Kier Group, with 20,000 employees, is on the ropes after issuing a profit warning, amid worries about its debt, that sent its shares spiraling down 40% on Monday and a further 2% on Tuesday, and another 4% so far today to 154 pence. The stock is down 56% over the past month and 85% over the past year and is now...

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Jaguar Land Rover Books its Biggest-Ever Annual Loss. Sales Collapse in China

China deliveries in its fiscal year: -34%. And not getting better: in April, -45%. By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Britain’s largest automaker, Jaguar Land Rover (JLR), owned by  India’s Tata Motors, plunged £3.6 billion into the red in its fiscal year 2018, ended March 31, as the financial fallout from slumping Chinese demand and sinking diesel sales in the UK and Europe took its toll. It was the company’s biggest ever annual loss. Global retail...

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