BUSINESS OPTIMISM GROWING

Optimism among finance directors at Britain's biggest companies has shown the biggest improvement in more than a decade, (The Times £, p 39).  The latest survey by Deloitte highlighted that a net 58 per cent were more upbeat about the country's prospects than three months ago. The study of 90 finance leaders was conducted between 2-14 December - before the UK signed the Trade and Co-operation Agreement with the EU. The start of the UK vaccination programme and hopes for a return to economic growth resulted in the boost. The quarterly poll of FTSE 100 and 250 firms showed leaders expected continued restrictions on activity and movement. However, this did not prevent 57 per cent expecting a permanent lifting of restrictions in the third quarter that helped lead to the biggest quarterly increase since the survey started in 2007 (Reuters).

JOB DEMAND GREW IN DECEMBER

Demand for staff picked up in December for the first time in three months due to temporary vacancies, according to a report by the Recruitment and Employment Confederation (REC) and KPMG (BBC News). The rise in temporary work was due to continued uncertainty over the Covid-19 pandemic and Brexit. Temporary vacancies rose by the fastest rate in two years. The increase in temporary roles was also matched by permanent roles in the first boost seen since September. Neil Carberry, chief executive of the REC, pointed out the jobs market picture was varied as London continued to lag.

NEWS IN BRIEF

The Credit Services Association (CSA) claims its members could help recover up to £6 billion for HM Treasury on Covid-19 business support loans (The Telegraph  £, p5).

A government-backed review into the UK's financial technology industry will recommend measures to support fast-growing companies after Brexit, including special visas for skilled workers and changes to the UK's listing rules. Financial Times (Online only).

Central banks must arm up for the next market upheaval, BoE's executive director for markets Andrew Hauser told Reuters yesterday. Last year's Covid-19 ?dash for cash was a ?wake-up call? as to the scale and urgency of this work. He said the BoE and central banks should consider a formal role as ?market makers of last resort?, trading securities at times of financial panic - in return more stringent regulation of financial businesses may be necessary.

The FCA has warned as many as 4000 financial services firms face a greater risk of collapse due to the Covid-19 pandemic. (The Times, £, p46).

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