Brexit uncertainty is "starting to bite" for UK firms - surveys

Staff reporter(wp/reuters):
Britain’s businesses are suffering from Brexit-related uncertainty as exports slow, recruitment difficulties mount and investment plans are scaled back, two surveys showed on Monday.

The British Chambers of Commerce said its survey of 5,600 companies, the largest of its kind in Britain, showed services firms were having the most trouble finding staff since the survey began in 1989, and growth in factory exports was the slowest since late 2016.

“These figures reinforce what we are hearing from businesses up and down the country — the uncertainty over Brexit, and the lack of bold moves to boost business at home, are starting to bite,” BCC director general Adam Marshall said.

Last week Prime Minister Theresa May told her Conservative Party to back her plan to leave the European Union as Britain entered “the toughest part of the negotiations”.

Diplomatic sources told Reuters on Friday the EU’s Brexit negotiators see a divorce deal as “very close”.

Britain’s economy has lagged behind the growth rate of many other rich countries for much of the period since the 2016 Brexit vote.

The BCC’s quarterly survey showed that the percentage of services businesses looking to recruit more staff over the next three months fell to 47 percent from 60 percent, the lowest since the first quarter of 1993. Seventy-two percent of firms reported recruitment difficulties, the highest on record.

For manufacturers, growth in both export sales and new export orders was the slowest since the end of 2016.

“Weaker sterling is no longer providing a boon to many of our exporters, while consumer spending is failing to boost the domestic market,” Marshall said.

Separately on Monday, accountancy firm Deloitte said its survey of chief financial officers pointed to slower business spending and hiring after Brexit.

Only 13 percent of CFOs were more optimistic about the prospects for their company than they were three months ago, down from 24 percent in July, Deloitte said.

Seventy-nine percent said they expected the long-term business environment to be worse as a result of leaving the EU, the highest share since the 2016 Brexit vote.

David Sproul, chief executive of Deloitte North West Europe, said confidence could recover if Britain secured a Brexit deal.

“A deal with a sensible transition period would remove the uncertainty and should deliver a real boost to business spirits,” he said.

Economists polled by Reuters expect official data due on Wednesday to show solid economic growth of 0.6 percent for the three months to August, though the year-on-year performance is predicted to be less impressive at 1.5 percent.

Much of the growth in the economy this year has been driven by stronger-than-expected spending by consumers, despite a continued squeeze on their spending power by inflation running higher than wage growth.

Last month the BCC predicted growth for 2018 would slow to 1.1 percent, its weakest since the end of the 2008-09 recession.

Human body parts among tonnes of NHS clinical waste stockpiled by disposal firm

Health reporter(wp/es):

A criminal investigation has been launched after tonnes of waste from NHS hospitals, including body parts, was allowed to pile up by a disposal company.

Healthcare Environment Services Ltd has been found to be in breach of its permits at five sites in England which deal with clinical waste and a criminal investigation has been launched, the Environment Agency said.

The Health Service Journal (HSJ) reported that amputated limbs and pharmaceutical waste were among the matter which had been allowed to mount up.

The Department of Health and Social Care (DHSC) said there is "absolutely no risk" to public health.

It is believed the waste was stored securely, but was not being processed and disposed of within the correct regulatory timeframes.

Healthcare Environment Services said the UK had experienced "reduced incineration capacity" over the last year, which it had repeatedly highlighted to authorities.

An Environment Agency spokeswoman said: "The Environment Agency has found Health Environmental Services to be in breach of its environmental permits at five sites which deal with clinical waste.

"We are taking enforcement action against the operator, which includes clearance of the excess waste, and have launched a criminal investigation.

"We are supporting the Government and the NHS to ensure there is no disruption to public services and for alternative plans to be put in place for hospitals affected to dispose of their waste safely."

A Government spokesman said: "We are monitoring the situation closely and have made sure that public services - including NHS Trusts - have contingency plans in place. There is absolutely no risk to the health of patients or the wider public.

"Our priority is to prevent disruption to the NHS and other vital public services and work is under way to ensure organisations can continue to dispose of their waste safely and efficiently."

A spokesman for Healthcare Environmental Services said: "Healthcare Environmental has highlighted the reduction in the UK's high-temperature incineration capacity for the last few years.

"This is down to the ageing infrastructure, prolonged breakdowns and the reliance on zero waste to landfill policies, taking up the limited high-temperature incineration capacity in the market.

"Over the last year, this reduced incineration capacity has been evident across all of the industry and has affected all companies."

It added that it had "consistently highlighted" the issue to environmental regulators, and there has been no disruption to services to customers.

Unilever U-turn over plan to move HQ piles pressure on bosses

Pic:Consumer goods firm Unilever has abandoned plans to move its legal headquarters from London to Rotterdam ( PA )
Business correspondent(wp/es):

The future of Unilever’s board was in doubt on Friday after a shareholder rebellion forced the consumer goods giant into a “humiliating” climbdown from plans to move its HQ to the Netherlands.

The decision to abandon shifting its legal head office to Rotterdam and switching from two classes of shares to one comes six months after it unveiled the plans and just weeks before investors in Unilever’s Dutch and UK entities were due to vote on them.

The Marmite and Dove soapmaker, led by chairman Marijn Dekkers and chief executive Paul Polman who is eyeing retirement, is understood to have seen the extent of opposition and realised its plans could be rejected.

“This is somewhat humiliating — at least humbling — for Polman, and may accelerate his retirement,” said Investec analyst Eddy Hargreaves.

Shareholders have been coming out almost daily over the past few weeks to oppose the ideas, concerned that exiting the FTSE 100 will mean the stock is less likely to be included in UK managers’ portfolios.

Attacks on Unilever are a long way from the City praise heaped on the consumer goods company after it last year fought off a £115 billion takeover from US foods behemoth Kraft Heinz.

It had wanted to move to the Netherlands, where Dutch laws typically favour the defender in takeover attempts, to simplify its corporate structure.

Unilever has previously said it “engaged extensively” with shareholders and “we believe the vast majority are fully supportive of the board’s proposals”. The board today said it will consider its “next steps”.

Corporate brokers UBS and Deutsche Bank, tasked with keeping Unilever up to speed on shareholder thinking, advised Unilever on the relocation plan. Both declined to comment.

Shareholders with around 11% of the UK-listed shares had opposed the plan, and many investors welcomed today’s U-turn.

Iain Richards from Columbia Threadneedle said: “Better approaches are possible and the problems for shareholders were foreseeable.” Aviva Investors’ Mirza Baig said it was “in the best interests” of its UK shareholders and UK plc. M&G Investment said it proved shareholder engagement paid off.  

The controversy could trigger a widespread review, said Rachel Reeves, chair of the Business, Energy and Industrial Strategy committee. “Whatever the arguments made for incorporating into the Netherlands, there was a real suspicion that, in the wake of the hostile bid from Kraft Heinz, part of the motive for the move was that UK rules too easily allow takeovers,” she said. 

“As a committee, we will want to consider looking at the Government’s White Paper on foreign takeovers to see whether the new regime should include additional safeguards.”

UBS analysts said: “We believe the market’s focus will now shift to the next steps, corporate governance improvements under the current structure and the operational performance.”

Theresa May urges Labour voters to 'look afresh' at the Conservatives

Pic:Theresa May penned the piece urging people to consider a switch ( AP )
Political reporter(wp/es):

Theresa May has penned a detailed message urging Laboursupporters to switch their allegiance to the Conservatives instead.

The Prime Minister, in a detailed piece written for the Observer, outlined her desire for “the Conservatives to be a party for the whole country”.

She also took her opportunity for a fresh swipe at opposition leader Jeremy Corbyn.

Mrs May claimed his leadership had left some lifelong Labour backers “appalled”.

Outlining her desires for people to switch allegiance, Mrs May wrote: “I want voters who may previously have thought of themselves as Labour supporters to look at my government afresh.

“They will find a decent, moderate and patriotic programme that is worthy of their support.”

Following this, she largely promoted what she sees as the key recent achievements and the goals of the Conservative party.

She outlined her desires for a “best Brexit deal for Britain”, investment in the NHS, improved standards in schools and building a strong economy.

Harking to Labour’s commonly used “for the many, not the few” slogan, she ended her piece: “The British people are not bound by ideology and there has never been a time when party labels have counted for less. This presents an opportunity Conservatives must seize – to be a party not for the few, not even for the many, but for everyone in our country who works hard and plays by the rules.”

Mrs May’s vision, which was slightly more than 1,000 long and also posted on her official Facebook page, has met derision in some quarters.

Labour Party chairman Ian Lavery said: "With the Government about to impose some of their most brutal cuts yet on working people, Theresa May's claim that austerity is over is a con.

"The Tories have spent their entire time in power running down our schools, local services and NHS, while gifting huge tax breaks to big business.

"The Prime Minister is clearly spooked, so is resorting to desperate pleas in an attempt revive her failing administration. The British public won't be fooled."

While John McDonnell, the shadow chancellor, said he was “not worried at all” that people would switch form Labour to Conservative.

Speaking on Sky News’ Ridge on Sunday he said “They’re falling apart. So it is no wonder she’s desperately looking for support fairly cynically from anywhere. No I’m not worried at all.”

Some Conservative supporters also seemed confused by the Prime Ministers words. 

One person, responding to Mrs May on social media, asked: “What about those voters who previously thought themselves as Conservatives? Where do you suggest we go?"

Police hunt after three men assaulted in homophobic attack in Wood Green,North London

Crime reporter(wp/es):

Police are hunting for two suspects after three men were assaulted in a homophobic attack in north London.

Scotland Yard said the three victims were attacked by two men in Wood Green in the early hours of the morning.

Officers were called to the scene near the junction between Station Road and High Road, N22​ at around 4.30am on Thursday, October, 4.

"Three men aged in their 20s had been assaulted by two suspects,

" a Met Police spokesman said.

"One of the men required hospital treatment, but he was subsequently discharged."

Detectives have releasing images showing two men they wish to trace in connection with the incident. One of the men is seen in both images, the second man is only seen from the back in one of the images.

There have been no arrests and enquiries continue, the Met said.

A spokesman added: "There was a verbal interaction between the victims and the suspects prior to the attack, which is why we are treating this as a homophobic incident."

The men were then subject to a physical assault, officers said, but no weapons were involved.

Anyone with information is asked to call detectives in the Haringey Community Safety Unit via 101 quoting CAD 969/Oct04. To remain anonymous, call Crimestoppers on 0800 555 111