BRITISH MARKET OUTLOOK

Timaru Herald, Volume CXLII, Issue 20481, 28 July 1936, Page 7

BRITISH MARKET OUTLOOK

REACTION TO SPANISH REVOLUTION COMMODITY MARKETS STEADY United Press Association—By Electric Telegraph—Copyright (Received July 27, 5.5 p.m.) LONDON, July 26. The revolt in Spain, like so many of its predecessors, has had practically no effect in the city. There are few countries in which investors have a smaller direct interest, and the Spanish Government has only a single loan on the Stock Exchange official list. The market’s activity has been almost unfettered and leading industrials are breaking the year’s already high records. Gllt-edgeds are markedly improved owing to the success of recent corporation issues and have derived further encouragement from the Chancellor’s statement that he hoped the worst of taxation had passed. Industries Improve Heavy industries are again hot favourites. Most of them stand substantially higher than last month, and the improvement has spread to shipping, where P. and O. spurted in mid-week. The activity has raised the perennial question, “Can the recovery last?” The “Economist” considers that tbs surface indications are most favourable. Building is well maintained the iron and steel Industry is operating at capacity, and production of new motor vehicles continues at an amazing rate. Consumption of food is increasing, with the exception of butter. Rising Price Levels On the other hand, indications are not lacking that prices are beginning to rise. The Board of Trade index shows wholesale prices 5 per cent higher than last year, wages 2i per cent higher, and still rising. Increases in Imports are causing anxious attention, the ugh the decline in exports is less alarming, as an analysis shows that it is only considerable in the case of eight industries, of which the decline in coal is due to Italy's withdrawal from the market and the decline in raw wool and cotton waste is due to a cessation of the German demand. The reduction of exports in most other industries is due to a concentration on the home market as a result of rearmament. Change May Come Soon Summing up, “The Economist” considers that Britain has lost much of the advantage which the depreciation of sterling gave her in 1931. There are the clearest indications that the present boom has reached maturity, and the prudent will prepare for a change which may come soon. The Butter Market Butter fluctuated slightly, and the trade is expecting a better inquiry with the approach of the bank holiday. There possibly will be a further slight appreciation before the end of the month. Apples and Pears Arrivals of apples are very light. The chief offering is composed of cold stored fruit. Competition for heavy quantities of soft fruits, especially Italian, is affecting prices, and moreover, English apples are making an appearance. Nevertheless, there is a distinctly better tone. No pears are available, but 17,000 boxes are expected next week. ,