Engineer operating angle grinder hand tools in manufacturing factory. Photo: Getty
Britain’s manufacturing industry has called for Business Rates to be waived or reduced in line with a boost to investment allowances to help kickstart an industrial recovery.
Make UK made the call on the back of the latest Manufacturing Monitor tracker, which shows that while the sector continues to stabilise, firms still see a long road ahead to any kind of normal trading conditions.
The survey revealed that over a third of companies see normal trading more than a year away, while 26.8% believe it will take between six and 12 months.
While those figures are slightly down from the last tracker in September the figures are holding steady suggesting manufacturers have a consistent view of the outlook for the next year and beyond.
Additionally, 24.3% of manufacturers said they were operating at full capacity with just over a third (35%) operating between three quarters and full. A look ahead shows a similar situation going into next year with 25.6% expecting to begin 2021 at full capacity.
Meanwhile, 49.2% of companies have made redundancies with a further 19% saying they plan to do so in the next six months, while 28.5% expect they might do.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Last week, chancellor Rishi Sunak announced a string of new and improved financial support measures, including grants for businesses hit by local lockdowns and more generous wage top ups for part-time workers under the Job Support Scheme.” data-reactid=”30″>Last week, chancellor Rishi Sunak announced a string of new and improved financial support measures, including grants for businesses hit by local lockdowns and more generous wage top ups for part-time workers under the Job Support Scheme.
The UK government has spent £200bn ($261bn) propping up the economy since the onset of the COVID-19 pandemic in March. Over £40bn has gone towards paying furloughed staff’s wages.
The survey also shows that 23.5% of companies are now stockpiling again ahead of the end of the Brexit transition period.
Of those who are not stockpiling a third (33.8%) said they didn’t see the need, a quarter (24.8%) said they couldn’t afford to because of COVID-19. Meanwhile, just 10.2% thought there would be a deal agreed by then.
Chief executive of Make UK, Stephen Phipson, said: “While the situation continues to stabilise it’s clear that there is a long road ahead to anything like normal trading conditions. This has major implications for companies and policymakers who are going to have to be fleet of foot in adapting to an ever changing environment.
“While Government has quite rightly made protecting jobs the number one priority to date, there is now an urgent need to help employers with their cashflow and measures to boost investment. Business Rates have long been a thorn in the side of companies and a disincentive to invest and now is the moment to provide a shot in the arm for companies by waiving or reducing them.”
The survey of 181 companies was carried out between 12 and 19 October. Make UK has been running its Manufacturing Monitor tracking survey since the start of the coronavirus pandemic.
The industry body, which represents 20,000 UK manufacturing companies of all sizes said that the need for investment now is vital after the Comprehensive Spending Review was cancelled and in the absence of any revamped industrial or economic strategy to boost growth.
“British manufacturers rose to the challenge earlier this year to help the country through a national crisis. They helped keep food and drink on supermarket shelves, adapted production to make vital PPE for our care homes and made sure hospitals had the medicines they needed during the pandemic. This data shows that manufacturing will be hit hard over the coming months unless there are further and sensible steps taken to smooth the path ahead,” Phipson added.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Watch: What is the Job Support Scheme and how has it changed?” data-reactid=”40″>Watch: What is the Job Support Scheme and how has it changed?
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
