Monday, June 13, 2011
North East growth rate above the UK average
THE North East saw business growth slow last month despite a solid rise in new orders, according to new research.
But the growth rate is still above the UK average and output prices continued to be robust, said the latest Lloyds TSB North East Purchasing Managers’ Index.
Manufacturing remained the principal driver of growth and companies said they were growing because of a rise in demand and their own efforts to break into new markets. New order levels have now risen continuously for nearly two years.
Employment growth slowed to a three-month low in May, but remained solid. Firms stated that workers were recruited to meet the needs of higher activity levels. Manufacturers took on extra staff at a sharper rate than service companies.
Martyn Kendrick, area director for Lloyds TSB Commercial in the North East, said: “In line with the general trend seen throughout the UK, North East private sector output growth slowed further during May. “This was despite a further solid rise in new business. Companies indicated that the additional Bank Holiday at the end of April/beginning of May had contributed to the weaker rise in activity.
“Although job creation in the region also slowed since April, it is encouraging that it was still one of the most pronounced in the UK.
Labels: North-East-growth-rate-above-the-UK-average
Saturday, June 04, 2011
Mideast carriers see 12% demand growth in April
The significant increase from the 5.3 percent growth in demand in March indicated a return of confidence to the region’s long-haul operations, IATA said.
Globally, traffic results for April showed a rebound in international markets with 16.5 percent growth compared to April 2010.
While this is exaggerated by the comparison to April 2010 during which European airspace was closed due to the volcanic ash crisis, international travel markets in April had grown to reach a level seven percent higher than the pre-recession peak of early 2008, IATA added in a statement.
The increase in passenger demand was met by a 16.8 percent increase in capacity.
Passenger load factors fell slightly from 76.8 percent in April 2010 to 76.7 percent in April this year.
Meanwhile, international freight grew by 5.4 percent against a capacity increase of 12.3 percent, pushing the freight load factor down from 55.3 percent in April 2010 to 51.9 percent this April.
Giovanni Bisignani, IATA’s director general and CEO, said: “Demand improved significantly in April. Eliminating all distortions, we are growing at 3-4 percent.
"International traffic is now seven percent above the early 2008 pre-recession levels, load factors are hovering around 77 percent and business confidence is high. Unfortunately two things are spoiling the party —demand shocks and high jet fuel prices,” he added.
Labels: Mideast-carriers-see-12%-demand-growth-in-April
Thursday, June 02, 2011
Verizon MiFi's Greatness has 4G Catch
This latest in LTE personal hotspots from Verizon came to market in mid-April and, like most such portable devices, connects any Wi-Fi enabled device to the Web. For sure, the unit is far from perfect. You will still taste the 4G rage of overpaying for underperformance. But in about a month of testing, which included my regular road trip of cellular death from New York to Maine and back and solid usage with Apple(AAPL_) iPhone 4 and iPad, several PCs, a Verizon Droid 2 and a BlackBerry(RIMM_) PlayBook, I found this MiFi to be useful and a reasonable way to connect to my office while on the go.What you get
This is, without question, the smartest way as of now for a small-business owner to stay connected while out of the office.
The MiFi Mobile Hotspot is simple. It is essentially an itty-bitty cellular data connectivity appliance from San Diego-based Novatel Wireless(NVTL_) that brokers a connection between Verizon's almost hilarious mishmash of cellular standards and a dead simple WiFi connection.
Since this device is designed from the ground up to do just one thing, it does it well. So there is not of the usual 4G wireless kludgefest of handoffs, incompatible software and incomplete deployments that must be managed by already taxed PCs, smartphones and tablets.
Labels: Verizon-MiFi's-Greatness-has-4G-Catch
Monday, May 30, 2011
Oil may gain this week on Asian demand: Survey
US crude futures last week rose as high as USD 101.90 a barrel, taking the weekly gain to 0.5%, after leaders of the Group of Eight said the global economy is strengthening, and as the dollar dropped to a one-week low against the euro.
US data will again be the main driver this week. Oil market focus will be pinned squarely on Wednesday's ISM manufacturing activity and May employment report on Friday. Economists expect both readings to show a slowdown, with higher input prices, supply chain disruption from Japan's tsunami disaster and slowing China demand putting the brakes in manufacturing activity.
Though China's demand remains a big open question - with many talking about the risk of a hard-landing there - many still expect overall Asian demand to remain robust, offsetting the torpor from the developed world.
"Even with the poor economic indicators coming out of the US, China, and the strengthening US dollar; oil was still hovering around USD 100," said Andre Julian, Chief Financial Officer at OpVest - Option Investments, Inc. "We still see Asian demand strengthening into the summer, and with Japan rebuilding demand should only increase."
Julian also offered a historical perspective, noting crude oil prices had risen in June in eight out of the 10 past years and in the two years that it didn`t, the drop was less than 10%. "Although we could see a sell-off into the USD 95 range, it is inevitable that this price point will be a key level of support and a buying opportunity," he added.
Tom Weber, Managing Director at PFGBest in Los Angeles, also referred to support at USD 95. If the market breaks below that level, prices may drop back to USD 88, he said.
"This doesn`t make me an oil bear, but we `gotta trade the chart`, Weber said. "Poor economic data, medium to heavy grade crude glut, and general trader disgust with lack of political will to fix debt problems has really cast a nasty dark cloud over most of the markets," he added.
The extended Memorial Day weekend may crimp volumes across the US markets, including oil but more importantly it marks the start of the summer driving season.
"I am not looking for any breakout, up or down," said Linda Rafield, Senior Oil Analyst at Platts. "The holiday-shortened week will keep liquidity low and the markets range bound. The real indicator is the crude options market on NYMEX-traders are betting on the market continuing to trade on either side of USD 100 and they are usually the lead indicator."
Rafield added: "I do think the downside is vulnerable-demand in the US looks dicey. But the second quarter is generally the lowest demand period of the year."
And as we head into US summer driving season, just how strong will it be especially when you consider the back-breaking price of gasoline at the pump? One indicator - US light-vehicle this Wednesday - should give us some clarity but initial forecasts don't look bright. US auto sales in May on an annualized rate are expected to total 12.2 million, down from the 13.1 million in April.
Labels: Oil-may-gain-this-week-on-Asian-demand:-Survey
Tuesday, May 24, 2011
From Russia with love - 200 new jobs
The contract will help GT, based at Whitehouse Business Park, achieve its ambitious growth programme and increase its workforce from 300 to 500 in the next three years.
The contract will see the firm producing up to 100,000 systems a year.
Group chairman Geoff Turnbull said: “This prestigious contract with Russia’s leading manufacturer will further cement GT Group’s rapid growth and its reputation as one of the principal suppliers of engine brakes and exhaust gas control systems for the heavy duty diesel engine markets.”
“It will also help the group achieve its plan to create an additional 200 jobs during the next three years. These will cover a range of disciplines focusing on research, design, manufacture and highly skilled engineers.”
The new engines will meet the latest Euro 4 and Euro 5 emissions standards and be produced at GAZ’s new world-class manufacturing facility, due to open in September on the outskirts of in Yaroslavl, in central Western Russia.
Geoff is confident GT Group’s substantial growth over the last year is set to continue.
“Our primary business objective is to meet the demands of vehicle manufacturers through the quality of our products and our extensive research and development capabilities,” he said.
“We continually strive to improve the efficiency and performance of our products to ensure they deliver the solutions required by the latest and future generation of engines.”
Labels: From-Russia-with-ove-200-new-jobs
Tuesday, May 17, 2011
Southern Europe weighs on Vodafone results
The company noted “strong performance in key revenue growth areas,” with data increasing by 26.4 percent, emerging markets up 11.8 percent, fixed sales growing by 5.2 percent, and Europe Enterprise up 0.5 percent. The company also noted there had been a “successful drive to increase smartphone penetration in Europe,” which climbed to 18.7 percent from 11.6 percent year-on-year. Data now represents 12 percent of Group service revenue. It also said that 48 percent of its European smartphone customers now take some form of data plan – although this indicates there is still potential for growth, as more than half still do not.
Vodafone said its core European business exhibited “two different trends:” the more stable northern European economies of Germany, the UK and the Netherlands delivered service revenue growth of 2.7 percent, while the rest of Europe was down 2.9 percent, as a result of the ongoing macroeconomic issues. European data revenue growth continued to be strong, but was offset by continued voice price declines and cuts to mobile termination rates. It said that organic service revenue growth in emerging markets was 11.8 percent, driven by growth in India (16.2 percent), South Africa (5 percent) and Turkey (28.9 percent). The company’s share of profits at Verizon Wireless increased by 8.5 percent to £4.6 billion. It noted increased costs in this business, due to the launch of Apple’s iPhone.
Looking forward, Vodafone expects its adjusted operating profit for 2012 to be in the £11 billion–£11.8 billion range, compared with £11.82 billion in the period to March 2011, reflecting the loss of a £0.5 billion share of the profits from SFR. In addition to continued challenges in southern Europe, the company also noted that it expects further regulated cuts to termination rates to have a negative impact. Vittorio Colao (pictured), Group Chief Executive of Vodafone, said that “continuing network investment is an important differentiator for Vodafone, improving the customer experience and giving us leadership in smartphone penetration and in customer take-up of data plans. We enter the new financial year well positioned to deliver further value to our shareholders.”
Labels: Southern-Europe-weighs-on-Vodafone-results
Monday, May 09, 2011
Edinburgh traders count the cost of trams fiasco
“I LOST £500,000,” says Sam Withall.
“It was like being in a cage with the roads fenced off and my customers couldn’t get parked to get to me.”
Clothing designer Ms Withall of Sam Brown Clothing in the west end is just one person who rues the day the trams project ever came to Edinburgh.
She says the tram works forced her out of business altogether, until she set up a scaled-down business elsewhere.
Altogether, traders say the project has cost them hundreds of millions of pounds and now, ironically, many of the worst-hit shops may never see a single customer brought to their door by the service.
The pot of cash for the project has almost run dry, and the country’s First Minister has publicly doubted it will be completed.The latest forecast is that the line will end at Haymarket, well short of the original target, if more money cannot be found.
It will mean many firms which have suffered most will not see any direct benefit.
Problems started after Edinburgh City Council’s project leaders Tie began closing streets to prepare gas and water pipes and electricity cables, and lay tracks.
Tie and the council have now been locked in a legal dispute with contractors for two years, almost stopping progress.
A report due at the end of this month will suggest how to progress, but no timetable for resuming work has been finalised. There is an estimated £100 mil-lion funding gap and if they do go ahead, the trams are not expected before 2014.
Traders say the network of Georgian streets in the city’s west end were almost unnavigable at the height of the work. It is thought £100m was lost in that area alone.
Michael Apter, of Paper Tiger in Stafford Street and chairman of the West End Association, said: “It will certainly have cost Edinburgh’s businesses hundreds of millions of pounds.
“Many businesses that have folded are small and we may never know exactly how much it has cost the city – not least in reputation.”
Footfall for Shandwick Place, a key spot, dipped at some points in 2009 by 48% compared to 2008, equating to tens of thousands fewer potential customers. On-street parking dropped by 10%.
Mr Apter said: “It’s not just retail, it is hospitality and leisure that are also losing out if people are not coming into the city. If you put all of these factors together they all point towards a significant loss of business to the city.
“We need a full public inquiry into the trams.”
Ms Withall has now reopened in William Street. She said: “I could have survived either the trams or the economic downturn, but not both.”
Alan Rudland of Arkay Imaging, who helped set up the Leith Business Association so traders could collectively tackle tram chiefs, had to lay off staff.
He said: “There have been difficult financial times but looking carefully at it most people believed it was the tram works that have done the most damage.”
After Alex Salmond said he believed the trams would “come to nothing” amid new funding fears, Gordon Burgess, former Leith Business Association chairman, said firms there never wanted the trams but there was a “carry on regardless” attitude from project managers.
The owner of the Bed Shop said: “I have seen recessions before, but I lost 50% of my business and I know it was down to the trams. ”
Alan Myerthall, whose family have owned the Pipe Shop in Leith Walk for 50 years, said: “It has already cost us our business. The trams not coming to Leith is the best thing that could happen.”
Originally costed at £375m and due to run from Leith to Edinburgh Airport, the trams will now cost £545m and more if the line is to make it beyond Haymarket.
Any hopes of the Scottish Government giving more cash to the project appear to have been dashed by the SNP election triumph.
A spokesman for Tie said: “There have been many different and localised support measures put in place in recognition of the disruption that businesses and retailers have suffered during construction … with hindsight, our communication at that time could have been much better.”
He added: “All parties concerned in the mediation process are intent on finding a resolution which will provide absolute clarity on when the project can be delivered.”
Labels: Edinburgh-traders-count-the-cost-of-trams-fiasco
