Catch up with the main breaking business stories of the day.
Aberdeen Asset Management today warned that Brexit negotiations and the start of Donald Trump’s term as US president will contribute to “ongoing volatility in global markets in the short term”. The cautious outlook came as the fund manager reported a 28.3 per cent slide in annual profits to £352.7 million as nervy investors continued to pull cash out of the Aberdeen-based group’s funds. Net outflows during the year amounted to £32.8 billion, although assets under management grew 10 per cent to £312.1bn and the final dividend was held steady at 12p a share.
Edinburgh has great potential to build on its status as a location for globally recognised tech firms, but faces obstacles including a lack of both suitable office space and workers, according to the chairman of the Scottish Property Federation. Paul Curran said he would like to see the capital grow considerably to be a really “vibrant and exciting” opportunity that attracts people as it leverages its existing appeal, which includes strong connectivity and quality of life. “Let’s see what we can do as a city,” he told The Scotsman.
The UK’s service sector experienced a drop in optimism in the three months to November, with profitability hit by increasing costs and lethargic business volumes, new data published today has revealed. The CBI, which represents 190,000 businesses across the UK, said its latest quarterly survey of the sector however unveiled some cause for optimism, with the fall less severe than in the prior quarter and hiring intentions remaining robust, for example.
“Infrastructure! Can there be a more electrifying word for investors?” writes Bill Jamieson. “But there are problems here for investors seeking to catch the tide. Any mutual fund or investment trust with the word ‘infrastructure’ in it has already soared skywards, exposing them to that timeless stock market peril: piling in at the top.”