‘No growth’ for financial services in Q1-papers

Activity in the UK's financial services sector rose less than expected in Q4 2009 and more firms now expect it to fall, the BBC reports.

A study by the CBI and PWC found 32% of firms questioned saw their business volumes rise in Q4, 2009. However, 28% said they had fallen, resulting in a balance of +4%  which is well down on the +16% predicted.

The report said a balance of +13% of firms expect to see a reduction in business volumes in the current quarter; the most negative expectation since December 2008.

"The bounce in UK financial services activity over the past six months is not expected to last as we enter 2010," said CBI chief economic adviser Ian McCafferty.

"On a more positive note, financial services firms' confidence in the general business situation has continued to increase, profitability improved and a much slower reduction in numbers employed was seen in this survey.

"Job losses are also expected to be minimal in the coming quarter."


Blackstone, the US private equity firm, has been approached by Sir Richard Branson's Virgin Money about backing a renewed bid for state-owned Northern Rock, according to the Telegraph.
 
The buy-out house is among several firms Virgin has approached as it works on finding a partner for its financial services business in preparation for its move on Northern Rock's "good bank". This was spun out of the state-owned lender and is thought to be worth up to £2bn.

Last week, Virgin bought the little-known Church House Trust bank for £12.3m as a platform for its move into UK financial services, the paper reports.


China is now the world’s biggest exporter, pushing ahead of Germany for the first time, the Guardian reports.

Trade in December showed a massive 17.7% year-on-year jump in exports, dramatically outpacing a forecast for 4% growth. The huge increase came after 13 months of decline.

While some experts said much of the increase was due to seasonal factors and quirks in commodities markets, it appears the strength of demand from China is signalling a further rise in global trade during 2010.

Imports jumped by 56%, pushing China's overall trade surplus in the month down by 4% from November instead of the expected 3% increase.