'EU out' call
Lord Lawson speaks
Former chancellor of the exchequer Lord Lawson has led calls this week for David Cameron to be the prime minister who leads the UK out of the European Union. Jumping on something of a populist bandwagon given the startling success of the UK Independence Party in local elections last week, Mr Lawson argued that the benefits of leaving would outweigh the costs and that the creation of the single currency changed the face of the European Union and disadvantaged the UK. Meanwhile, Oskar Lafontaine, the German economic minister who was in office when the euro was launched, has called for a break-up of the currency to allow the southern periphery countries to recover.
UK cars motor
Sales up
Sales of cars in the UK continue to buck the wider European trend, with April recording the strongest growth in sales for 14 months with a 14.8 per cent rise in new car sales. More than 163,000 cars were sold, with smaller cars such as the Ford Fiesta and Vauxhall Corse performing well. Consequently, the Society for Motor Manufacturers & Traders has raised its forecast for full-year sales to 2.1m, 3 per cent higher than last year but still around 300,000 short of its pre-financial crisis peak.
Stocks surge
Monetary support
Equities challenged new highs again earlier this week with Japanese shares setting a new five-year top on the back of continued monetary largesse in the country. In fact, there have been signs of further easing over the past week, with the Reserve Bank in Australia cutting interest rates to their lowest level for five years, the European Central Bank cutting rates and commentators suggesting more quantitative easing could be coming in the US, all of which has proved supportive to shares.
Microsoft roll back?
Windows 8 concern
Technology giant Microsoft is said to be preparing changes to its much vaunted Windows 8 operating system just months after it was released amid much fanfare. In a PR embarrassment some have likened to Coke's famous about-turn on its 'New Coke' 30 years ago, Microsoft's shift will be seen as a tacit admission that its operating system, which is designed to blur the distinction between computers and tablets, struggles when not used in conjunction with touch screen technology. Meanwhile, Microsoft founder Bill Gates has played down the surge in tablet sales and said that many iPad and Android tablet users will revert to Windows based pc-tablet hybrids.
China data calms
Trade up
Equities were given further support this week when trade data from China soothed concerns about a slowing down in Asia's growth engine. Imports into China rose by 16.8 per cent in April, up from a 14.7 per cent rise in March, with notable strength in demand for key commodities such as iron ore and oil, suggesting fears about the Chinese economy's health may have been overdone. Meanwhile, China's exports increased by 14.7 per cent in April, up from 10 per cent in March, which has reignited concerns about the recording of export data. The Chinese authorities have acted to clamp down on over-invoicing to avoid capital controls and get cash into China.
Sainsbury shines
10 year peak
Supermarket Sainsbury's registered its 33rd straight quarter of like-for-like growth this week when it published a strong set of full-year results. The supermarket's share of the overall market has risen to 16.8 per cent, its highest for 10 years after reporting particular success in non-food and also in its convenience grocery stores. Sainsbury's is also planning to pay Lloyds Banking £248m to buy out its shares of the Sainsbury Bank joint venture, which will allow the supermarket full control over a business that has posted growing profits for each of the past five years.
