Blog Category: News

Global automobile manufacturers plan to spend more than half a trillion dollars on vehicles and batteries by 2030 according to the Global EV Outlook report. Zero carbon and ultra low emission zones in major cities have increased the previous estimate over the past three years by almost 100%. Electric vehicle sales doubled in 2021 spurred on by rising fuel prices, improved infrastructure and emissions charges from governments. Electric vehicle sales are up 75% in the first quarter of 2022 on 2021.

Britain has signed a new free trade deal with Mexico which came into force on 1 June 2022. The old deal was 20 years old and migrated over from the old EU agreement. It is currently the UK’s 44th largest trading partner and while UK exports are £44 billion imports are only £4 billion. Mexico is the world’s 16th largest economy with a population of 150 million by 2035. Demand for imports is expected to grow by 35%.

The UK attracted the second highest numbers of projects in Europe at 993 and Germany fell further behind. London was the most attractive city for FDI projects attracting 40% of total FDI into the UK including mergers and acquisitions, building new facilities and the purchase of an interest in a company by an overseas entity. London is the 4th city globally and 1st outside America to attract highest VC investment at $25.5bn with fintech leading the way. London gave birth to 20 unicorns (startups valued >£1bn).

The UK has completed stage 1 of negotiations to join the £8.4 trillion Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The partnership currently consists of 11 countries Australia, Canada, Japan, Mexico, New Zealand, Singapore, Brunei Darussalam, Chile, Malaysia, Peru, and Vietnam. The UK will be the first new addition since the organisation was launched in 2018. It represents one of the largest and most dynamic free trade areas and constitutes 13% of global GDP. In 2020 member countries imported 8.6% of UK goods and services and the source of 6.8% of imports.

A new OECD report says global FDI at $1.82trn in 2021 was 88% up on 2021 and 37% up on pre-pandemic 2020 levels. The report states the main factor as foreign owned companies not redistributing profits back to parent companies rather reinvesting in the local subsidiary. In addition, cross-border M&A was up 50% in developed countries and 25% in developing countries. The top FDI destinations were America followed by China, Canada and Brazil. America was also the greatest source of outflows. FDI inflows grew by 96% in OECD G20 economies.

More than 18,500 tech startups incorporated London in 2021, a 94% increase on 2020. In addition, the number of new tech companies in UK increased 62% in the same year at more than 38,000. Nick Jordan, Trade Horizons CEO, said “London and the UK are increasingly attractive to overseas tech companies because of our innovation culture, ease of doing business and generous support schemes to encourage accelerated, sustainable growth for new companies. The Government’s various support schemes for new technologies in crypto and sustainability areas is making the UK a very hot place right now for tech startups and scaleups.”

he big news this week of course is that Prime Minister Boris Johnson has announced £1bn new commercial deals on landmark India visit. Along with commercial agreements, the partnership ‘hails in a new era for trade investment and technology.’ The PM landed in Gujarat this week with a remit to boost collaboration with India, one of the world’s largest and fastest growing economies. More than 11,000 new jobs are expected to be created in the £1bn export and investment deals including a new electric bus R&D scheme in Chennai (which we wrote about recently as a thriving R&D hub), UK car plants, tech & consultancy company inward UK investment, pharma machinery deals and space collaboration.

The UK signs historic trade deals and Europe and America pledge commitment to Indo-Pacific Region.