Pensions watch
Budget pressure
Scrutiny of the March Budget has intensified in recent days after the Institute for Fiscal Studies said there was a "significant chance" the government's fiscal plans would "not deliver the targeted surplus" in 2019-20. The financial community will be watching whether Chancellor George Osborne makes yet more changes to pension tax relief, such as reducing the lifetime allowance or altering the system so contributions to private pensions would be made out of taxed income rather than pension income being taxed on receipt.
In or out
Brexit impact
Whether the UK remains in the EU or not is a binary event, but the ramifications of either are multifarious, especially judging by recent analyst commentary. Analysts at Citi have predicted that consumer prices inflation would leap to 3-4 per cent following an exit as sterling would likely depreciate by 15-20 per cent. This could, the bank warns, force the Bank of England to raise rates even though economic growth may not be that robust. But Moody's Investors Service suggests that the fact a draft agreement between the UK and EU has been outlined reduces the risk of Britain leaving.
Financials funk
ETFs sour
European exchange-traded funds (ETFs) that track indices compiled of financial stocks have seen their largest outflows since 2011, according to data company Markit. The group said 73 financial ETFs had experienced net withdrawals of nearly $1bn (£690m), meaning the outflows for the quarter are likely to exceed the previous largest quarterly outflow of $1.1bn in Q3 2011 when "fears of financial contagion gripped European markets". Markit added that the outflows combined with poor performance meant assets under management had fallen by $2bn, more than 15 per cent of last year's end total.
Feeling the force
Pinewood review
The studio group behind major films including Star Wars and James Bond could be sold after a strategic review was announced this week. Pinewood Group has appointed Rothschild to review the overall capital base and structure, which it said "could include a sale of the company". Management raised £30m to fund its development programme last year, a move it hoped would create a more diversified shareholder base. But the shareholder register remains "tightly held", which the company said had "stifled liquidity" and "prevented" it from achieving its aim of a main market listing.
Cashing in
Media float
A value of £800m has been attributed to publishing and events group Ascential, which is set to debut on the stock market. The company, formerly known as Top Right Group and Emap, has been priced at 200p a share. A total of £183.2m was raised, which the company said it would use to pay down debt. The offer represents 35 per cent of the issued share capital and will see backers Guardian Media Group and Apax Partners receive roughly £80m from the sale of their stakes. The float comes as Guardian Media Group is seeking to cut £54m of costs amid falling revenues from print advertising.
Indolent UK
Data drop
The prospects of interest rates rising in the UK became arguably more stark this week after data showed industrial production in the UK contracted by 1.1 per cent in December. This was well above the 0.1 per cent decrease forecast by commentators and came as November's drop was also revised up to 0.8 per cent from 0.7 per cent. This means the UK experienced its first year-on-year industrial production fall since September 2013. And it wasn't any better for the manufacturing sector either with production falling 1.7 per cent year-on-year - the worst drop since July 2013.
