The Business: Tuesday August 12 2014
Company news, markets and financial talking points, available from 8am Monday to Friday
A boom in the far east has seen Jaguar’s profits reach a colossal £10m a day, says The Times. The UK-based, Indian-owned manufacturer, which was not making a penny in profit as recently as 2008, reported £924m of pre-tax profits in the April to June trading quarter, the first of its financial year. Sales to China, mainly of the most expensive Range Rovers and Jaguars, have leapt 61% year on year.
The UK is the self-employment capital of western Europe, says the IPPR think-tank. Policymakers are concerned that the trend is a sign of labour market weakness, raising fears over the strength of the economic recovery. Around two-fifths of all new jobs since 2010 have been among the self-employed, a trend that has helped shape Labour's cost-of-living agenda.
England’s early elimination from the World Cup saw spending on food and other shopping reduced, says data from the British Retail Consortium and KPMG. Customers had been expected to spend big on food before watching England take part in the latter stages of the Brazil tournament. However, the team’s early exit was followed by reduced spending.
“The consumer credit market is a ticking time bomb; it beggars belief that so many folk and companies who should know better are so relaxed about it.” Allister Heath, in the Daily Telegraph, says there will be massive shock when interest rates rise.
Profits at Ladbrokes have fallen by nearly half, despite the bookmaker saying it had had a "good World Cup" performance. Pre-tax profit fell 49.7% to £27.7m in the first half of the year ending 30th June. A tie-in with software developer Playtech last year has caused disruption to the business. However, boss Richard Glynn says Ladbrokes is now “well positioned for growth”.
Lending to first time buyers has hit record levels, says the Daily Telegraph. In June, the Council of Mortgage lenders recorded 28,600 loans lent to first-time buyers since December 2007 - an increase of 18.7% since June 2013. An analyst at Savills said the trend is “partly to do with pent up demand from the downturn and also that the desire to own a home is still sky high".
FTSE-100: up +1.00 to 6632.82
Dow Jones: up +0.10 to 16569.98
Dax: up +1.90 to 9180.74
Cac-40: up +1.20 to 4197.70
Nikkei: up +0.17 to 15156.66
Hang Seng: down -0.17 to 24603.73
US dollar: buys €0.74810 and £0.59680
Sterling: buys $1.67620 and €1.25440
Oil: $104.53 down -0.5