UK Business Papers Review: 7 August 2017

UK Business Press Review

Today we look at a cliff-edge Brexit, the plight of the retail customer and executive bonuses.

There are a couple of particularly sad stories in the business press today, which directly or indirectly remind us how at the end of the day it is the retail customer who always ends up footing the bill.

For instance, the Financial Times suggests in a story which could have been written any time in the past 50 years, that large investors fear FTSE 100 companies are using clever accounting techniques to trigger high executive bonuses and mask poor performance. Indeed, the only flaw in the article is that many companies do not even bother with the clever techniques. Also in the Financial Times we are told that the operational tax for financial institutions since the Global Financial Crisis. While shareholders may suffer to some extent, it is ultimately the customers of these companies who foot the bill via shameless fees and stealth charges. Mortgage rates of 3% over base and no paying to have money on deposit are just two of the worst aspects.

As a reminder of the sad state of affairs at the bottom of the food chain, the Daily Mail tells us that homeowners are facing a rise in mortgage costs even without a rise in the mortgage rate as the Bank of England said its Term Funding Scheme would end in February.

The Times reports via Wood Mackenzie that the oil industry to welcome cash rich private equity buyers to the North Sea, as more than $5bn in assets have so far been dealt this year.

We have a gold old fashioned project fear in The Guardian supplied by lobby group UK Finance, as it is suggested that a cliff edge Brexit in 2019 could lead to dangers for the whole European financial system.

Also in The Guardian we read how the UK construction industry is facing its weakest growth in 6 years, hurt by a combination of the slowing economy, and rising wages / costs.

The Financial Times observes that bonds in Macy’s and Kohl have risen ahead of US retail earnings, with debt of such stores climbing with the migration of shoppers online.

Zak Mir is Co Founder, technical analyst, author, broadcaster and financial markets commentator.

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