UK financial services companies have relocated almost £800 billion in assets to Europe since the Brexit referendum, a report by EY has found. The study examined 222 of the biggest financial services firms with respect to their Brexit contingency plans. However, the study determined the £800 billion figure solely from public announcements of asset transfers. Consequently, EY warned that more relocations may have yet to be announced, thus the figure could prove significantly higher. “As things stand, and per regulatory expectations, financial services firms have no choice but to continue preparing on the basis of a ‘no deal’ scenario,” commented Omar Ali, UK financial services leader at EY. In November, 36% of tracked companies confirmed intentions to shift some operations to Europe, as a result of Brexit negotiations. This figure includes 55% of universal banks, investment banks and broker firms, as well as 44% of wealth and asset managers, and 42% of insurance companies. Mr Ali also noted that the financial services sector has planned ahead with regards to Brexit. He said: “The City is further ahead in implementing its Brexit contingency plans than many other sectors . . . The closer we get to March 29 without a deal, the more assets will be transferred and headcount hired locally or relocated.” Nevertheless, other industries and businesses across the UK remain concerned regarding continued uncertainty relating to Brexit negotiations. EY’s findings come ahead of the scheduled parliamentary vote on Theresa May’s Brexit deal in January. With a lack of consensus among MPs regarding how best to proceed, fears of the UK crashing out of the EU with ‘no-deal’ are mounting. Despite these concerns, former foreign secretary Boris Johnson took to his column in the Daily Telegraph to proclaim that in fact a ‘no deal’ option proves closet to what the people voted for. Johnson noted that a no deal withdrawal was “gaining in popularity” among the public, dismissing warnings as “downright apocalyptic”.

Aldi reported a record week of sales during the week before Christmas. The discount supermarket said that sales were up by 10% compared to the same period the year previous. Sales were boosted by “Specially Selected” and “Exquisite” lines offered by the supermarket. Aldi, which has 800 stores in the UK, has a supermarket share of 7.6% and hopes to have 1,200 stores opened by the end of 2025. “Our Christmas range was the largest and most innovative yet and caught the imagination of our customers, who visited our stores in record numbers,” said Giles Hurley, the supermarket’s Aldi UK chief executive. “Although we saw strong growth across all key categories, the standout performance was in our Specially Selected brand where shoppers treated themselves to premium products for a fraction of the price they would have paid elsewhere for similar quality products.” “A key factor behind our record performance was the collective commitment, energy and enthusiasm of all our colleagues, and I want to thank them for all their hard work at this exceptionally busy time.” The rest of this week will have trading updates from Tesco (LON: TSCO), Sainsbury’s (LON: SBRY), Morrisons, Marks & Spencer (LON: MKS) and Waitrose. High competition from Aldi and Lidl has forced supermarkets including Morrisons (LON: MRW) to cut prices. Morrisons said on Monday it will cut the price of more than 900 products. “We’re listening to customers who are telling us that their budgets will be stretched in January, so we are cutting every penny we can on the essentials that will help them feed their families,” said Andy Atkinson, its marketing director.

Average UK household debt has reached a record amount of £15,400 according to a new report, as austerity and slow wage growth weigh upon families. The data, compiled by the trade union body (TUC), revealed that household debt owed to banks and credit card firms had risen sharply in 2018. According to the TUC, the total owed by households across the UK jumped to a combined £428 billion in the third quarter of the year. Overall, each household owed £886 more than it did 12 months prior. Whilst student loans are factored in, the TUC said the debt figures are not inclusive of any outstanding mortgage debts. The TUC general secretary, Frances O’Grady, said: “Household debt is at crisis level. Years of austerity and wage stagnation has pushed millions of families deep into the red. The government is skating on thin ice by relying on household debt to drive growth. A strong economy needs people spending wages, not credit cards and loans.” Alongside amassing greater household debts, recent figures have also revealed stagnating house price growth in recent months, as Brexit uncertainties continue to bite. Last week, it was revealed that house prices dropped by 0.7% since November, marking the biggest decline since July 2012, according to the latest data from Nationwide. The average house price in Britain last month came in at £212, 281. This compares to £211,156 recorded in December 2017. The 0.5% annual rate of growth is the slowest since February 2013.

Jadestone Energy (LON:JSE) has announced the completion of works required to resume production from the Montara oil field. This restart follows an extensive maintenance and inspection shut down. Shares in the company have increased by a slight 3.24% following the announcement of completion. The decision to halt production at the Montara oil field was made in November. Jadestone Energy closed the asset in order to correct an extensive backlog of inspection and maintenance routines.

At the beginning of December, Jadestone Energy reported its progress which was being delivered on target.

Work has now been completed and the facilities are going through the final stages of pressure testing to ensure a safe restart of production. The facility should be able to operate without any major maintenance shutdown until 2020 at the very least. Paul Blakeley, President and CEO of the company, commented on the announcement: “I’m pleased that the shutdown of the Montara assets has been safely concluded, which now completes all overdue inspection and maintenance items which we identified during the initial weeks after closing the transaction with PTTEP. During the shutdown, Montara personnel logged more than 9,000 hours of work, all executed without a single safety incident. This is a testament to the calibre of expertise on the asset and the leadership we have now seconded into the Montara organisation, and a key early step toward embedding the Jadestone operating philosophy and safety culture on the asset. “In addition to resolving the regulatory non-compliance notices, which in our view now safeguards the integrity and reliability of the Montara assets, we have worked closely with NOPSEMA, the offshore regulator, to satisfy their concerns as laid out in Direction Notice 0732, and are waiting for their final support to a full restart of production.” At 14:53 GMT today, shares in Jadestone Energy Inc (LON:JSE) were trading at +3.24%. Elsewhere in the property market, UK house prices are growing at the slowest annual pace in six years. Indeed, latest property price statistics show that the UK house market has taken a pre-Brexit hit.

House prices dropped by 0.7% since November, making it the biggest monthly decline since July 2012. According to data from Nationwide, British house prices have taken a pre-Brexit hit. Compared to the same period a year earlier, prices rose by a mere 0.5%, compared with a 1.9% rise in November. Figures are well below the expectations of Reuters economists.

The annual 0.5% rise of UK house prices is the slowest increase in almost six years.

Nationwide has said it is expecting prices to rise at a “low single-digit pace” this year. Robert Gardner, Chief Economist at Nationwide, told Sky News: “It is likely that the recent slowdown is attributable to the impact of the uncertain economic outlook on buyer sentiment, given that it occurred against a backdrop of solid employment growth, stronger wage growth and continued low borrowing cost “The economic outlook is unusually uncertain. However, if the economy continues to grow at a modest pace, with the unemployment rate and borrowing costs remaining close to current levels, we would expect UK house prices to rise at a low single-digit pace in 2019.” Since the June 2016 Brexit vote, house prices have weakened. Jonathan Samuels, Chief Executive of Octane Capital, said “Brexit has smashed property market sentiment to smithereens.” “Borrowing rates may be low and the jobs market strong but a deep undercurrent of uncertainty is causing the vast majority of people to sit on their hands,” he continued. “What growth there is, is in the north, which hasn’t experienced the overexuberant price inflation of the capital and other areas of the south.” The average house price in Britain last month came in at £212, 281. This compares to £211,156 in December 2017. The 0.5% annual rate of growth is the slowest since February 2013. Prior to the 2016 Brexit vote, house prices were rising by roughly 5% annually, based on Nationwide’s index. Housing prices have considerably weakened since the UK decided to leave the European Union.

Co-op announced plans to open an additional 100 food stores in the new year on Thursday, as it looks to grow its convenience locations. The supermarket said it will also refurb 200 stores, creating some 1,500 new jobs. ”The right location and range tailored to fulfil the shopping needs of a community is a cornerstone of our approach, and there has been an evolution in how we choose new locations and innovate our offer,” The Co-op’s portfolio director Stuart Hookins commented. “This year will be the fourth consecutive year of opening around 100 new stores, and investing in a core convenience estate which has seen over four years of consecutive like for like sales growth.” Back in September, the grocery retailer reported a 10% growth in sales to £5 billion in its interim results. Co-op also reported that an increase on pre-tax profits to £26 million, up from £14 million in 2017. Nevertheless, UK supermarkets have been struggling as of late, with well-loved names like Marks & Spencer (LON:MKS) and Waitrose announcing the closure of hundreds of stores. Back in March, Marks and Spencer announced further 100 store closures, in a bid to restructure its business in the face of an increasingly turbulent trading environment for many high-street retailers. The Co-op brand was founded back in 1850. As of currently, the retailer has over 4,050 shop locations across the U.K. Currently, Co-Op is the fifth largest food retailer in the UK. It is behind the nation’s largest supermarket Tesco (LON:TSCO), followed by Sainsbury’s (LON:SBRY), the second biggest. In recent years, British supermarkets have felt the pressure from the competition of cheaper retailers such as Lidl and Aldi, which have both progressively obtained a larger market share.

Aston Martin has started the year by searching for a new audit firm. Just three months after floating on the London Stock Exchange, the luxury carmaker is looking to replace KPMG in the next few months. KMPG, who has been carrying out audits for the group since 2007, has declined the opportunity to re-pitch for the work. Since Aston Martin’s £4 billion float on the stock market, shares have fallen by around 30%. Jasper Lawler, an analyst at London Capital Group, said on the group’s debut: “The first public listing of a British carmaker in decades has the kind of ‘dinner party’ appeal that few IPOs share. We think the iconic status of this century-old British motoring brand, coupled with its relative insulation against Brexit or trade tensions, make this listing a compelling proposition.” Aston Martin expects full-year sales for this year to rise to between 6,200 and 6,400 cars. As part of its expansion, new projects will include building an electric flying car and luxury homes.