Panthera Consultancy Weekly Newsletter
Welcome to Your Panthera Consultancy Weekly Newsletter!
In this week’s newsletter, we bring you important updates: the UK economy shows surprising growth, average rents hit record highs, and retailers under fire for unethical discounts and rewards. Additionally, we cover the latest news in banking, retail, automotive, and other big stories of the week. Stay informed and stay ahead of your business needs with Panthera Consultancy.
By staying on top of these stories, you’re staying on top of your business. Whether it’s changes in interest rates or shifts in the job market, all these factors can impact your business. If you know others who could benefit from this newsletter, share it with them and tell them to email ‘join’ to info@pantheraconsultancy.com.
Lastly, are you looking to grow your business? Don’t wait for growth to come to you, bring it to you! Panthera Consultancy supports businesses every day with their growth plans, whether it’s buying new assets, obtaining finance for new staff, or taking on new projects. Whatever your plans are, we are specialists in Asset Finance and Business Loans. We don’t just know the products; we have access to the best lenders. Get in touch today to find out what could be available to you!
Email: info@pantheraconsultancy.com
Phone: 0208 132 6872
Now onto the updates:
ECONOMY
UK Economy Surprises with Strong Growth: The UK economy has been growing at a much faster rate than expected, surprising economists. In the first quarter, the economy grew by 0.7%, making it the fastest-growing economy in the G7. Economists predict that this strong growth could continue in the second quarter. With inflation under control, the Bank of England is likely to cut interest rates, further supporting economic growth. Money markets now suggest there’s more than a 50% chance the BoE will cut rates next week, and a 92% chance it will happen by September.
REAL ESTATE
Average Rents Hit Record High: The average rent being asked outside London has reached a new record of £1,314 per month, according to Rightmove. Rental prices in London have also surged to an unprecedented high of £2,661. Availability of rental properties is gradually recovering, but remains lower than pre-pandemic levels. The financial strain on renters is significant, with many using credit to afford their rent and struggling to keep up with bills and credit commitments.
Hopes for Rebound in Diminished BTL Sector: The number of buy-to-let (BTL) mortgage deals granted in the UK has dropped by half, falling from 25,280 to 12,422. Despite an increase in rents, rising costs have put a squeeze on landlords’ profits. However, optimism remains that the buy-to-let sector will recover sooner than expected, as long as there are no further negative shocks.
BANKING
Lloyds Expects Drop in Defaults as Economy Improves: Lloyds has set aside just £44m for bad debts and defaults in the second quarter, down 89% from the previous year. The bank expects the UK economy to grow 0.8% in 2024, double the previous forecast. Positive economic developments and real wage growth have contributed to the bank’s resilience.
Four UK Banks Provided Incorrect Information to Public: Lloyds, TSB, AIB, and HSBC have failed to comply with banking rules, according to the Competition and Markets Authority (CMA). The banks provided incorrect information to customers about their products and services, leading to formal enforcement measures to ensure compliance and refunds to customers.
RETAIL
Retailers Under Fire for Unethical Discounts and Rewards: Retailers have come under fire for using unethical discounts and rewards to encourage consumers to spend using Buy Now Pay Later (BNPL) and other credit options. These practices can lead to vulnerable individuals accumulating more debt. The Financial Conduct Authority (FCA) has expressed concerns about the risks posed by BNPL, but the Treasury has taken no action.
AUTOMOTIVE
Car Production Down 7.6%: UK car production fell by 7.6% in the first six months of the year as car makers overhauled production lines to make electrified models. While there was an increase in production for the UK market, there was a significant decline in production for overseas buyers.
AVIATION
Virgin Atlantic Passengers to Pay Green Levies: Virgin Atlantic will try to offset the cost of using sustainable aviation fuel (SAF) by charging passengers a green levy on every flight. The move comes as the EU and the UK introduce mandatory SAF quotas.
OTHER
Cash Payments Decline as Consumers Embrace Digital Transactions: The total number of cash payments in the UK has decreased as more consumers opt for digital transactions using cards and phone apps. Despite this decline, cash remains the second most frequently used payment method.
Global IT Outage Reveals Dangers of Cashless Society: Friday’s global IT outage illustrates the need to maintain cash payments, as businesses and customers were left unable to trade when millions of Microsoft systems failed. Campaigners argue for laws requiring all businesses to accept cash to ensure resilience in the face of technological failures.
CLOSING THOUGHTS
As always, we thank you for being an avid reader of the Panthera Consultancy Newsletter and for trusting us to provide you with these essential financial updates. Beyond updates, we are here to support your business in obtaining finance and helping both businesses and individuals convert currencies cost-effectively.
If you’re looking to elevate your business to the next level or want to uncover where banks might be overcharging you on foreign exchange transactions, get in touch today. Let us help you revolutionise your financial future.
Until next week, Stay Informed & Stay Ahead.
With my kindest regards,
Benjamin Vis
Managing Director – Head of Business Lending
Panthera Consultancy
Unmatched in the Financial Kingdom