IPO revival
Final flood?
What has been an outstanding year for Initial Public Offerings in London, at least in terms of the total value of deals concluded, could yet end on a high with a number of IPOs still believed to be jostling to get away in the final quarter. Three of the bigger new issues showed their cards this week in the form of challenger bank Aldermore, regional housebuilder Miller Homes and luxury shoes and accessories specialist Jimmy Choo. But in a twist to the revived IPO trend it is now believed that roadside assistance specialist RAC and London-focused taxi business Addison Lee have shelved plans to list in favour of private sales.
Regulatory risks
Milliband pledges
The growing sense that a potential Labour-led government from next May onwards would ramp up regulation and business taxation was compounded this week when leader Ed Miliband made his last set-piece party conference speech before the general election. In it, Mr Miliband pledged to introduce a mansion tax on houses worth more than £2m, which had property industry figures complaining, and also hinted at a proposed windfall tax on the tobacco industry which would see the proceeds pledged to the NHS, with a key plank of his manifesto will the preservation of the health service.
Climate calls
Rockefellers react
In a week when the world's government's met in earnest for the first time in five years to discuss ways of slowing down and even stalling climate change one of the most iconic family names in the oil and gas business, the Rockefellers, made a symbolic move. The heirs to the fortune built on oil by John D Rockefeller this week indicated that the proportion of their fortune currently invested in fossil fuels would be divested and re-invested in clean and renewable energy. This formed part of a wider commitment by investors, championed by former US vice president Al Gore, to withdraw $50bn-worth of investments from fossil fuels over the next five years.
Eurolow
Data gloom
The latest data out of the eurozone does not bode well for economic recovery in the enfeebled trading bloc. With the issues in Ukraine and Russia on its eastern flank beginning to bite the powerhouse German economy and little hope of the likes of France, Italy and the Benelux taking up the slack, private sector growth in the eurozone has stagnated with a composite reading of output from its private sector falling back in the most recent three months - figures which suggest overall GDP growth of just 0.3 per cent during the period.
Deficit danger
Osborne worry
The coalition government is in danger of missing its own deficit reduction targets in the final fiscal year before the 2015 general election. The opening period of the year, from April to August, saw borrowing of £45.5bn, up £2.6bn on the same period last year with borrowing in August totalling £11.6bn. Analysts predicted that this trend would likely mean annual borrowing in the region of £105bn, or £10bn more than forecast by the Office for Budgetary Responsibility. The main issue thus far has been weaker than expected tax revenues and the situation is still retrievable if figures improve over the rest of the year, otherwise Mr ` is going to struggle to find enough wriggle room to fund a pre-election budget giveaway.
Mortgage warning
Risks remain
Despite the recovery in the housing market and the wider rebound in the UK economy, many home owners still remain at significant risk should interest rates rise significantly in the near future. Research from the Building Societies Association and the Money Advice Trust warned that more than a quarter of mortgage holder could find themselves in serious financial trouble when rates rise if they do not prepare themselves well in advance. The likelihood of imminent rate rises has faded as inflation has dipped in recent months and some are now predicting no rise before next May's election, although rises at some point next year are virtually guaranteed.
