Euro car sales keep heading north
European car sales have risen two months in a row for the first time since September 2011, raising hopes that an upward trend is finally under way. Over 1m cars were sold in the European Union in October, according to the European Automobile Manufacturers' Association, up 4.7 per cent on last year and hot on the heels of a 5.4 per cent increase the month before. Of the region's five largest markets, only Italy declined, and in Spain sales rocketed 34 per cent. Over 10m cars have now been sold in the EU this year, down 3.1 per cent, and while annual sales will probably still fall, a return to growth in 2014 looks increasingly likely.
Source: ACEA
Bitcoin boom
The 'virtual currency' Bitcoin soared to new highs this week as a Senate hearing in the US lent more legitimacy to its claims to be a viable alternative to conventional currencies. A year ago Bitcoins were changing hands for $12 but this week punched through the $700 level after Federal Reserve chairman Ben Bernanke gave his tacit approval to the idea of virtual currencies saying they 'may hold long term promise'. The Senate hearing was called to look into the closure of Silk Road, an online black market for drugs which used Bitcoins as currency and was closed down by the FBI last month.
Discounters on the rise
Fresh figures from Kantar Worldpanel suggest that the big four supermarkets - Tesco, Asda, Sainsbury's and Morrisons - as well as The Co-operative, lost market share in the 12 week period to 10 November, while discount retailer Aldi stormed ahead, growing its share of the UK grocery market by 30 per cent to 3.9 per cent. Meanwhile, Tesco's revamped Finest range grew 16 per cent year-on-year, while Sainsbury's Taste the Difference saw a 12 per cent uplift in sales.
Edward Garner, director at Kantar, says the number of shoppers visiting Aldi has grown by 16 per cent year-on-year and the average basket size has swelled by nearly 15 per cent. "In fact," he adds, "almost a third of British households have shopped in Aldi in the past 12 weeks".
London rising
Office development in London is racing towards a 10-year high. Property broker CBRE expects 6.7m square feet of completions in central London next year, of which 4.6m square feet is 'speculative' - it has yet to find a tenant. Notable examples of buildings due to hit the market next year are the so-called 'Walkie Talkier' on Fenchurch St (being developed by Land Securities and Canary Wharf Group) and its rival the 'Cheesegrater' (British Land and Oxford Properties). The prominence of these towers has inflated concerns that the London office market is overheating, but developers remain bullish.
In hot water?
The UK needs significant new investment in infrastructure to replace ageing assets and meet policy commitments and the needs of a growing population. As was the case in the past, the majority of this new infrastructure will continue to be paid for by consumers through their utility bills. Despite some good initiatives, notably in energy, the government and regulators do not know how much in total the new infrastructure might cost consumers. Nor do they know whether consumers, particularly those on low incomes, will be able to afford the additional costs. This is particularly concerning, given that energy and water bills have increased significantly in recent years, while incomes have not.
Source: National Audit Offi ce analysis by the Department of Energy & Climate Change and Severn Trent Water
