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You can find the current article at its original source at https://www.theguardian.com/business/live/2020/jan/13/flybe-rescue-talks-uk-government-gdp-growth-brexit-business-live
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Pound slides as UK economy shrinks in November – business live | Pound slides as UK economy shrinks in November – business live |
(about 1 hour later) | |
Rolling coverage of the latest economic and financial news, as UK slowdown persists and airline Flybe seeks help | Rolling coverage of the latest economic and financial news, as UK slowdown persists and airline Flybe seeks help |
Environmentalists in Exeter don’t share concerns over Flybe’s future. | |
Instead, the local Green Party point out that airlines are a major contributor to the climate emergency, and that flying between regional airports is unsustainable both financially, and for environmental reasons. | |
A very fair point. But without serious investment in other transport networks, flying will still appeal. | |
For example, today’s flight from Exeter to Belfast was scheduled to take 80 minutes. Driving would take over 10 hours, while train takes around 15 hours. | |
Speculation continues to swirl over Flybe’s future, with the airline still looking for government support to prop up its finances. | |
Flybe continues to operate services as usual -- with flights still taking off on time despite the risk of blustery conditions in parts of the UK today. | |
But there is still concern that the regional airline may not get the support it needs. | |
Aviation consultant John Strickland fears that Westminster politicians may not bail out the Exeter-based firm. | |
He told the Press Association: | |
In other news, Britain posted a record trade surplus in November -- although the underlying picture isn’t quite as impressive. | In other news, Britain posted a record trade surplus in November -- although the underlying picture isn’t quite as impressive. |
The ONS reports that the UK racked up a monthly surplus of £4.0 billion, mainly driven by a £3.0 billion increase in exports of unspecified goods. | The ONS reports that the UK racked up a monthly surplus of £4.0 billion, mainly driven by a £3.0 billion increase in exports of unspecified goods. |
Unspecified goods includes ‘non-monetary gold’ (where swings in London’s bullion market can distort the trade figures). | Unspecified goods includes ‘non-monetary gold’ (where swings in London’s bullion market can distort the trade figures). |
But strip out unspecified goods, and November 2019 still saw a monthly trade surplus of £0.7 billion. That’s largely due to a £1.6bn drop in machinery imports, and a £1.3bn drop in transport equipment, during the month. | But strip out unspecified goods, and November 2019 still saw a monthly trade surplus of £0.7 billion. That’s largely due to a £1.6bn drop in machinery imports, and a £1.3bn drop in transport equipment, during the month. |
This may partly be due to companies stockpiling goods in October in case of a disorderly Brexit. | This may partly be due to companies stockpiling goods in October in case of a disorderly Brexit. |
The ONS also reports that Britain racked up a larger trade deficit with the EU, underlying the importance of a post-Brexit trade deal. It says: | The ONS also reports that Britain racked up a larger trade deficit with the EU, underlying the importance of a post-Brexit trade deal. It says: |
The UK’s trade in goods deficit widened £0.7 billion to £29.9 billion in the three months to November 2019, as imports grew faster than exports, while the trade in services surplus widened £1.7 billion to £28.8 billion. | The UK’s trade in goods deficit widened £0.7 billion to £29.9 billion in the three months to November 2019, as imports grew faster than exports, while the trade in services surplus widened £1.7 billion to £28.8 billion. |
The trade in goods deficit with EU countries widened £1.8 billion to £23.9 billion in the three months to November 2019, while with non-EU countries it narrowed £0.6 billion to £3.8 billion. | The trade in goods deficit with EU countries widened £1.8 billion to £23.9 billion in the three months to November 2019, while with non-EU countries it narrowed £0.6 billion to £3.8 billion. |
Today’s weak growth report piles pressure on the Bank of England to consider cutting interest rate soon, says my colleague Richard Partington: | Today’s weak growth report piles pressure on the Bank of England to consider cutting interest rate soon, says my colleague Richard Partington: |
There are some signs that the UK economy may be picking up speed. | There are some signs that the UK economy may be picking up speed. |
Savills, the estate agents, told the City this morning that business has picked up since the December general election. | Savills, the estate agents, told the City this morning that business has picked up since the December general election. |
Saville now expects profits to hit the upper end of its guidance, thanks to a pick-up in property transactions. | Saville now expects profits to hit the upper end of its guidance, thanks to a pick-up in property transactions. |
But it also warned shareholders that uncertainty over Britain’s future relationship with the EU could weigh on the economy in 2020: | But it also warned shareholders that uncertainty over Britain’s future relationship with the EU could weigh on the economy in 2020: |
Today’s growth report contains several charts showing how the UK economy fared in November, and over the last quarter. | Today’s growth report contains several charts showing how the UK economy fared in November, and over the last quarter. |
This one shows how the economy barely grew in September-November, with annual growth sliding to its weakest since 2012. | This one shows how the economy barely grew in September-November, with annual growth sliding to its weakest since 2012. |
This table highlights how services and manufacturing both contracted in November alone: | This table highlights how services and manufacturing both contracted in November alone: |
These charts show how services sector growth weakened steadily in recent months..... | These charts show how services sector growth weakened steadily in recent months..... |
...while industrial production has contracted for months. | ...while industrial production has contracted for months. |
The Chancellor of the Exchequer, Sajid Javid, is promising measures to spur the economy in his budget, in two months time. | The Chancellor of the Exchequer, Sajid Javid, is promising measures to spur the economy in his budget, in two months time. |
He also appears to blame Brexit deadlock for the growth slowdown, saying: | He also appears to blame Brexit deadlock for the growth slowdown, saying: |
TUC General Secretary Frances O’Grady has called on the government to take steps to boost growth: | TUC General Secretary Frances O’Grady has called on the government to take steps to boost growth: |
John Hawksworth, chief economist at PwC, says the UK economy is stuck “in the doldrums”, having only grown by 0.1% in the last quarter. | John Hawksworth, chief economist at PwC, says the UK economy is stuck “in the doldrums”, having only grown by 0.1% in the last quarter. |
John McDonnell MP, Labour’s Shadow Chancellor, says Britain’s weak growth is due to the UK government’s failure to invest in public services. | John McDonnell MP, Labour’s Shadow Chancellor, says Britain’s weak growth is due to the UK government’s failure to invest in public services. |
The pound has sunk to its lowest level since 27 December, and has fallen for eight of the first nine trading days this year. | The pound has sunk to its lowest level since 27 December, and has fallen for eight of the first nine trading days this year. |