BRIGHT OUTLOOK IN BRITAIN

Timaru Herald, Volume CXXXVII, Issue 19525, 26 June 1933, Page 7

BRIGHT OUTLOOK IN BRITAIN

BIG IMPROVEMENT IN TRADE

FAVOURABLE CHANGE IN MEAT MARKET United Press Association— By Electric Telegraph—Copyright (Received June 25, 6.30 p.m.) LONDON, June 24. The stock markets have shown no decided tendency this week, but prices are fairly well maintained in all sections, despite a noticeable falling off in the volume of dealings. The course of developments in the United States is being closely followed, though with some bewilderment. Consequently there is a general disposition to wait and see. Gilt edgeds, though inactive, remain steady, assisted by sterling’s strength, in terms of the dollar. Dominion stocks are well maintained, with an upward tendency in several groups. Stocks Appreciate. Stock Exchange securities shown in Bankers magazines, list 365 representative stocks for the month ended June 17, and these show a total appreciation of £100,000,000. The general impression of this upward move, especially in home industrials, is that the speculative initiative may come from Wall Street, where it is based on the commodity increases, due to inflation. There are also signs of a genuine stirring in trade activity, with the result that stocks, any way, affected all advances. Improvement in Trade. The monthly trade review, ‘‘The Economist,” is again hopeful. Reports both at Home and abroad, show that the general improvement in trade which began at the end of March, has continued. The general position is much better than at the end of v,’inter. In Great Britain there is considerable improvement in employment, with the exception of further deterioration in coal mining. The improvement which is widespread, has embraced buildings, public works, contracting, many sections of the iron and steel trades, engineering, shipbuilding, textiles, clothing, boot and shoe trades, distributive industries, dock and harbour services. Other indicators confirm that the improvement in wholesale prices continues. The cost of living remains unchanged. Reports from retail trades at the end of May are very encouraging, and point to a marked improvement since a year ago. Building and Banking. In London and the South of England, the total new building plans, passed by the local authorities in May are 40 per cent, over May of 1932. The most encouraging sign is that the long continued decline in bank advances, has been reversed, and May recorded an improvement of £11,000,000 over the previous month. This is not a seasonal momement, but there *s good ground for believing it arises from a greater need of funds by certain industries. Industrial Outlook Brighter. British industrial reports are mostly very encouraging. The export coal trade is better, and steel production is increasing, especially semi-flnished steel. There is a general revival in the engineering and the export trade in electrical apparatus is improving, particularly with China and South Africa, where important works are in hand. The home demand for motor vehicles is good, and the British industry is rapidly capturing many leading Empire markets. The cotton industry reports better business from several markets, with hopes of benefit from a new Indian Customs duties upon non-British goods. Butter Market Uncertain. The hopes expressed a fortnight ago of an improvement in butter, has not yet materialised, and prices have given way about 2/- per cwt. Consumption remains good, but the arrivals are still large, and the cold-stored stocks remain well over a million cases. Glut in Apples. The apple trade is very disappointing and prices for most varieties are poor. Only hard sorts like Stunners and Rokewoods are being sought after. The position is not surprising, when it is considered that the aggregate arrivals at United Kingdom ports from Australia and New Zealand are already nearly 4,200,000 cases, of which over 1,200,000 arrived in the last three weeks. Conditions are aggravated by large supplies of strawberries, which, after the copious rain, matured rapidly, and have been flooding the markets and selling as low as 6d per lb. Cherries are also plentiful and are selling at the same price. Similar conditions prevail in Germany, where the markets are also affected by considerable supplies transshipped from England, which mostly arrived in poor condition. Cheerful Outlook For Meat. Despite a further rise in values at Smithfield, retail prices have not noticeably advanced, consequently the more cheerful outlook has still further improved; for instance, Victorian Downs lambs reached 7d, Victorian prime light weights 6ld. The consumption of mutton and lamb remains high, particularly the latter, of which almost half a million carcases were cleared in the United Kingdom in one week recently,, which was probably unprecedented. NO CURRENCY CRISIS. ALL DANGER PASSED IN BRITAIN. (Received June 25, 7.25 p.m.) LONDON, June 24. “All danger of a financial currency collapse in Britain has disappeared,” i said Mr Stanley Baldwin, at Carmun-

nock, Glasgow. He predicted there would be no general election for another two or three years. Britain would remove the Russian embargo when the Vickers engineers were safely home, and the Soviet removed their counter-measures.