UK Finance, representing the banking sector, has urged the next government to penalize startups that receive state aid and then list on foreign stock exchanges instead of in London. The organization suggested that subsidies and tax breaks should be clawed back from companies that do not commit to staying in the UK after receiving government help. Concerns have been raised about London’s declining stock market relative to other exchanges, particularly in the US.
In other news, global markets have extended a recent rally, buoyed by weak US data and expectations of interest rate cuts by the Federal Reserve. The pound remained steady as voters in the UK headed to the polls, with market participants awaiting the results.
Despite global optimism, the Eurozone’s construction sector continued to struggle, with activity contracting at a faster rate in June. German companies saw the biggest slump in construction output, while French and Italian sectors also reported declines. Experts warned that the outlook for the Eurozone construction sector remains bleak, with weak demand and cooling inflation requiring intervention from the European Central Bank.
In contrast, the UK’s construction sector saw continued growth in June, despite a slowdown in housebuilding. Commercial activity was the main driver of expansion, with the pace of job creation picking up. However, new orders rose at a slower rate, possibly influenced by election uncertainty. ShareElectric vehicles also saw strong sales growth in June, contributing to the UK’s new car market hitting a milestone of half a million vehicles sold in the first half of the year. Fleet sector uptake was the main driver of growth, while demand from private buyers fell. Electric vehicle sales rose robustly, with plug-in hybrids and hybrid electric vehicles outpacing battery electric vehicles.
Source
Photo credit www.theguardian.com