The recent budget in the UK has had a significant impact on consumer and business confidence, raising concerns about potential stagnation in the economy. Meanwhile, the UK public finances have been thrust into the spotlight, following the recent budget that increased tax burdens on businesses and elevated employment costs. In contrast, some sectors are showing resilience, as seen in the successful opening of two new pub sites and three franchise locations. On the international front, Germany's manufacturing sector continues to struggle, while Netflix's shares thrive despite formidable competition from Disney, Apple, and Amazon.
In November, UK government borrowing significantly decreased from £18.2 billion to £11.2 billion due to timely self-assessment paper filings. This decline comes at a time when unemployment in the UK remained stable at 4.3% in October. However, concerns over economic stability persist as the latest German GDP figures indicate a contraction for the second consecutive year, highlighting a prolonged depression in its manufacturing sector.
The UK oil industry has seen positive development with the integration of the Wintershall Dea business, projecting revenues of $3.1 billion for the nine months ending in September. Harbour Energy shares have experienced a notable rally since the beginning of the year, despite a modest decline projected for 2024. Nevertheless, these shares remain considerably below their 2022 peaks following the imposition of the oil and gas windfall tax, which severely impacted profits.
"the most beautiful word in the entire dictionary of words is the word, tariff" – Donald Trump
Elsewhere, Netflix continues to demonstrate its market prowess by maintaining and expanding its market share through strategic expansion and hedging against FX risk. This success starkly contrasts with Germany's economic contraction and manufacturing struggles. The Bank of Japan has also made headlines by breaking from its long-standing conventions and raising interest rates for the first time in recent years.
Harbour Energy's Talbot operation commenced at the end of last year, providing a boost to its performance metrics. The Bank of England is scheduled to meet on February 6th, with speculations abounding about potential further rate cuts. This move could have significant implications for the UK's economy as it grapples with the challenges posed by recent fiscal policies.