That’s not our sandwich filling of choice!
Banking, the Internet, can’t live with them; can’t live without! Consider this: when was the last time you seriously used cash? Can you name a day when you didn’t use the Internet in the last 6 months? There are a number of things that are important to businesses up and down the country. There are none more important it appears than Banking, the Internet and in our book, a decent sandwich.
Banking, the Internet and working 24/7 underpins most of what we do in business these days.
Therefore it was with some dismay that I read the papers and saw both subjects were under discussion today. Actually at Tunji Adebayo & Co. we’ve stuck to our guns, post referendum saying ‘Careless talk costs business’. ‘Careless speculation’ also has the same damaging impact. However, it is time to discuss just what is going on after the EU referendum. We specifically want to focus on banking, the Internet & the referendum.
There is some doom and gloom in the City
As we near the end of July 2016, it seems there does appear to have been some pretty significant impact in the property sector. It’s the same for the financial sector too. Headlines this morning, for example showed UK mortgage approvals were down and so was business lending. Now you might say that basing such a statement on June’s business is a bit premature. However, it is obvious that many businesses were obviously pressing the pause button until the results of the referendum were known.
Mortgage Approvals down
According to the British Bankers Association mortgage approvals fell to the fewest mortgage approvals since March 2015. However, what does emerge is that gross mortgage borrowing was 4% higher than a year previously, coming in at £12.12bn
That’s the fewest mortgage approvals since March 2015.
Although, don’t forget, more money was loaned than a year ago. But should we be consulting the tealeaves on this one? BBA Chief economist Rebecca Harding says no. She suggests that we are looking at past data that illuminates past thinking. Yes, business confidence was shaky before the referendum but we still cannot see what the outcome will be as we progress through the new European order. However, what is obvious is that sterling is having a very bumpy ride and has fallen to the bottom of the class in terms of major foreign exchanges performance.
Is this doubt and gloom casting a shadow over the City?
Well, interestingly the highest City rent per sq ft was achieved very recently, so someone is still feeling confident. But others feel a little differently. Man Group for example have posted a drop in funds of 3%. Their CEO Manny Roman suggested it will be the risk appetite (and we might suggest the nerve) of clients that will possibly impact flows. Even BP are warning that conditions in these tough economic climate will be challenging.
Are Natwest and RBS serious?
Therefore it remains to be seen whether Natwest and RBS are scare-mongering over the fact there is a possibility of small businesses being charged negative interest rates. Certainly the Chairman of the Federation of Small Business, Mike Cherry is very obviously concerned. The implications for many businesses and especially smaller ones would be significant. For more information on these financial, banking and the Internet stories click here
Then there’s the Internet…..
The other thing that impacts on businesses large and small in the commercial property sector and beyond are Internet speeds. London is shocking. There are times when it’s almost impossible to do anything than read email. Skype calls are bad, especially late afternoon, depending on provider. London ranks very low compared to Japan and other cities globally. So we think it’s about time Ofcom suggested Openreach needs to be split away from BT to prevent failure of investment in the one thing that every business needs. If they do end up being run as a more independent arm of BT perhaps they can start investing and creating an Internet infrastructure of which we can be proud.
Meanwhile if you need help sourcing a commercial property in London we’re here to assist. Contact us right now (broadband permitting of course!) If you can recommend a great sandwich shop close to our offices in Welbeck St we’d be grateful too! You can follow us on Twitter @taproperty and we’ll return the compliment.Tags: banking, London financial market, Ofcom decision