The document discusses the economic outlook as of February 1, 2010, highlighting the challenges businesses face due to recession and the importance of teamwork in overcoming these obstacles. It provides key economic data, including inflation rates, employment status, and housing market trends, while emphasizing the need for effective collaboration and nurturing high-performing teams to improve productivity. Additionally, it touches on the potential for positive economic developments and recovery signs in the UK housing market and suggests strategies for businesses to enhance team dynamics.

1. ECONOMIC UPDATE
Economic and
Market Overview
as at February 1st 2010
Are you using
Teamwork to
beat the
recession?
Chatting with the many business leaders harder and harder over longer and
I meet the talk is always of how they longer hours. This is not about effort.
are looking to beat the recession, either My challenge is; are they working
through ‘hunkering down’, finding new “Smart”? awareness of the 5 questions (for
markets or reducing costs. Nobody can themselves and their colleagues) to the
deny the harsh realities that have come The opportunity is to harness the power benefit of the organisation.
with falling demand resulting in of teamwork and the quality of
approaches that seek to minimise the collaboration within an organisation. In The bottom line of this is the basic
impact of recessionary conditions on our studies of high performing human condition of “if we spend time
shareholder returns. Sadly too this has organisations the first common thread together we will build more
been a euphemism for Voluntary is the realisation that high performing understanding.” The more we
Redundancy and operational budget teams are continually nurtured rather understand, the higher is the potential
reductions. But what if you could find than “built”. Nurturing is seen as a of giving each other greater support
a way of actually achieving more with continuous process where the elements and more effective challenge. So are
less resources? of great team work are husbanded. we saying that we should all go to the
pub and all will be fine? Not exactly…I
What strikes me in almost every case Individuals in high performing am suggesting you challenge how you
is the obvious question “are you getting organisations can always answer 5 key
foster and improve the levels of trust
the most out of how your teams work questions:
and how they work together?” The between individuals within teams and
quality of collaboration within a business 1. What is my role? between teams within your organisation.
and between its employees is a rich 2. What am I getting for my efforts? To this end; what is your continuous
source of huge efficiency and 3. What difference does my job make? plan to develop the quality of
productivity benefits and we have 4. How am I doing? collaboration within your organisation?
worked successfully to help 5. How do I fit into the bigger picture?
organisations untap this potential with If you would like Rocket to provide a
staggering results in terms of enhanced What would be the impact on team Collaboration Review to estimate the
productivity, reduced acquisition costs performance if every member of your hidden potential hidden in your
and reduced staff turnover. The starting staff could accurately answer each of organisation, please contact us and we
point is always to business leadership these questions? Simple questions that would be happy to share best practice
and the simple question: when answered knowingly by engaged initiatives and help you beat the
team members can create staggering recession through teamwork, simply
“If your team were working at its results. email me.
maximum potential, what percentage
productivity improvement do you OK, let’s say that your employees pass
think would be achieved?” the top five test .. what is next? Best Wishes
The usual answer is somewhere A recent study by Google recognised
between 20 – 50 percent! that the teams that socialised together
were more productive. They foster more Ian Howell
Let’s be clear, I can never fault the opportunities for employees to interact
commitment and work ethic within the and build understanding of peoples’ Email:
businesses I meet. They are working roles and challenges i.e. they use their ian@rocketperformance.co.uk

2. ECONOMIC UPDATE
Key Economic Data Summary
as at 26/01/10
CPI 2.9% Up 1% from October
RPI 1.4% Up 1.1% from October
Fiat Thanks Scrappage Schemes across
Employment 72.4% Down by 0.1% this quarter
Western Europe (BBC News 26/01/10)
Unemployment 7.8% Down by 0.1% this quarter The Italian firm said global sales of its Fiat,
BoE Base Rate 0.5% As of 05/03/09 (no change this month) Lancia and Alfa Romeo models had risen 5.7
percent to 1.84 million cars. It said the
LIBOR (GBP 3M BBA) 0.6156 25/01/10 scrappage scheme in Germany saw its
Crude Oil $75.18 a barrel Prices falling this month German sales almost double, while UK sales
had risen by 17.7 percent. However, parent
Gold $1096.60 per oz. (25/01/10) Prices falling back from company Fiat Group made an annual net
November high. loss, which it blamed on its taking of a 20
percent stake in Chrysler. Although Fiat Group
did not pay for this share of the US carmaker
National House Price Index January last June, it said "the strategic realignment
2009 (source Lloyds Banking Group as at 07/01/10) with Chrysler" caused significant restructuring
costs and write-downs. This contributed to an
annual loss of 800m euros ($1.1bn; £702m),
Average House Price £169,042 which compares with a profit of 1.7bn euros
Monthly Change +1.0% in 2008.
Annual Change -1.1% House Price Rises to Taper Off This Year
( R e u t e r s 1 9 / 0 1 / 1 0 )
The dramatic slide in house prices has ended
Personal Loan Rates (as of 25/01/10) - Based but economists in a Reuters poll only see them
creeping back up over the next couple of years
upon £5K (unless noted) over 36 months ex insurance with a recent rally tapering off as sellers return
and subject to underwriting to the market. Average house prices are seen
rising 1.6 percent this year and then 2.5 percent
in 2011, according to a poll of over 30 analysts
Lender APR Notes published on Tuesday, in line with forecasts for
Sainsbury's Finance 9.8% Lower rate consumer price inflation. The survey results,
Tesco Personal Finance 8.9% collected Jan 14-19, are roughly similar to the
1.8 and 2.2 percent predicted in the last Reuters
Santander UK 8.9% UK housing market poll in November, and stand
Post Office 9.9% No change in stark contrast to the double-digit growth seen
Nat West/RBS 12.9% No change in the boom years. Forecasts in the survey were
wide, ranging from a 10.5 percent fall and a 12.5
M&S 12.9% Borrowers haveto be a UK resident aged 30 percent rise for this year and between an 8.0
or over or a house owner
percent fall and a 13 percent rise next year.
Halifax 9.9% Loans available to existing Halifax customers Twenty of 29 analysts said house prices had
only. Minimum advance £7000 now stabilised with five saying they would within
HSBC 8.7% Min Advance £7000 a year, three saying it would be one to two years
Lloyds TSB 11.3% Min Advance £7500 before they bottomed and just one saying it
would be more than two years. Three quarters
Barclays Bank 10.9% New higher rate for existing customers only of those surveyed said British house prices were
Clydesdale / Yorkshire Bank 13.9% New higher rate for existing customers only still overvalued. They gave prices a median
AA Personal Loans 8.9% to 15.3% Restrictions apply rating of six on a scale where 10 was extremely
Co-Op Bank 12.9% overvalued and one extremely undervalued.
That is the same finding as the November poll.
Mortgage Costs - Standard Variable Banks Set for Radical Reform –
RocketComment
Rates (SVR) (as of 25/01/10) President Obama has set the scene for a radical
overhaul of the banking sector and Mervyn King,
Please note these rates may be subject to deposits/loan to value levels and underwriting
the governor of the Bank of England backs the
President’s calls. In principle banking could
become ‘boring’ once more. The calls are for
Lender Aug ‘09 Comments banks to become more risk averse; to avoid
SVR high risk, fast growth products, to ensure reserves
Halifax 3.5% closer match lending and for banking services
to be spread over more companies (mega banks
Nationwide BS 2.5% Existing customers only are set to go out of fashion). In the latter case,
the call is for more competition and a spread of
Santander UK 4.24% New Name for Abbey / A&L / 11/01/10 banking risk for countries across the world.
Lloyds TSB/C&G 2.5% Governments do not want to be called upon
again to bail out a bank. The outcome will be
Northern Rock 4.79% more expensive borrowing for all and it is likely
Barclays (Woolwich) 4.48% Calculated on Barclays base rate+1.99%, currently 2.49% to be harder to borrow money. The difficulty in
the short term according to Mervyn King is how
RBS 4.00% to bring in such policies without strangling
HSBC 3.94% recovery – but in the UK isn’t that is what has
already been happening for the last year?

3. House Price News
ECONOMIC UPDATE
UK Emerges from Recession (ONS 26/01/10) • The pace of house price increases
The UK economy has come out of recession, after figures showed slowed at the end of 2009, the Royal
it had grown by a weaker-than-expected 0.1 percent in the last three Institution of Chartered Surveyors
(Rics) has said.
months of 2009. The economy had previously contracted for six • The government's own housing
consecutive quarters - the longest period since quarterly figures survey has found that UK property
prices rose by 1.7 percent in
were first recorded in 1955. There have been recent recovery signs November, leaving them 0.6 percent
- last week, UK unemployment fell for the first time in 18 months. higher than in November 2008.
• UK house prices were 1.1 percent
The UK's had been the last major economy still in recession. higher in December than a year
The positive figures were boosted by positive news on cars sales earlier - the first annual rise since
March 2008, according to the Halifax.
which jumped in December as customers sought to avoid the January • A survey by Rightmove, the property
VAT increase and make the most of the soon to end scrappage website, found that 53 percent in the
UK believe house prices will rise
scheme. The figures are provisional. over the next 12 months, compared
with just 10 percent at the beginning
of last year.
UK retail sales rise 0.3 percent in December (BBC News 22/01/10) • The Government has extended its
campaign to help people struggling
UK retail sales rose by just 0.3 percent between November and December, with their mortgage to 30 new
according to official figures. The rise in sales volumes in the run-up to Christmas repossession hotspots.
was lower than expected, with analysts having predicted a rise of more than 1
percent. Rising prices were blamed for the slow increase, with prices increasing Mortgage lending was ‘surprisingly
strong’ in December after a disappointing
at their fastest rate in nine months. As a result retail sales by value were Year (CML21/01/10 & BBA 26/01/10)
stronger in December, rising by 0.9 percent compared with November. The Council of Mortgage Lenders (CML) said
UK mortgage lending increased by 14 percent
in December compared with November, to
Inflation on the March (Reuters 19/01/10) £13.7bn.
Consumer prices rose at their fastest annual pace in nine months in December According to the British Bankers Association
the number of mortgages approved for house
after 2009 prices faced an unflattering comparison with a year earlier when VAT purchases rose at the end of the year. However
was cut and recession-hit stores launched heavy pre-Christmas discounting. overall in 2009, mortgage approvals were 27
percent lower than the previous year and the
The Office for National Statistics said consumer prices rose 0.6 percent last lowest since British Bankers' Association's
month, taking the annual rate up to 2.9 percent from 1.9 percent in November. records started in 1997. Some 45,897 home
loans were approved for house purchases last
That was the biggest monthly rise in the annual rate since records began and month. The showed the extent of the recent
exceeded analysts' expectations for an increase to 2.6 percent. recovery in the mortgage market as it was
double that of December 2008.
Retail price inflation, which includes more housing costs, rose to 2.4 percent
from 0.3 percent -- its highest since November 2008 and the biggest monthly Property Sales Hit Two Year High
Provisional figures from HM Revenue and
change in the annual rate since July 1979. Analysts had expected a reading Customs (HMRC) show 104,000 deals involving
of 2.1. The Bank of England may need to review interest rates upwards to properties priced above £40,000 were
counter inflationary pressure, but overall appears confident that inflation targets completed in December. It was the first time
since December 2007 that the number has
will be achieved by the year end. risen above the 100,000 level. Transaction
levels had hit their lowest point during the
slump in January 2009. In that month, only
41,000 properties were sold. This was the
smallest number sold in any month since
In Marketing, Public Relations, Training & Development current records began in 1977.
and Corporate Development The rebound in sales and prices as 2009
Our three distinct business disciplines share one common goal - to give our clients a progressed took most analysts by surprise, yet
performance edge many have predicted a relatively static 2010.
After many years in corporate business leadership, we struggled to find the type of results
The HMRC figures revealed that the number
focused, entrepreneurial people who could make the type of positive contributions we of sales in 2009 ended up relatively similar to
were looking for to drive our businesses forward. People who were knowledgeable, the level of the previous year. Some 848,000
energetic, results focused and fun to work with, people we could trust as friends. homes were sold during 2009, the HMRC said,
To create such a support service was our goal and now seven years on we continue to which was a slight fall from the 920,000 sold
grow remaining true to this original vision. Across the UK, Europe and beyond we are the previous year. However, this was in stark
proud to be making a valued contribution to the businesses and above all people with contrast to the housing boom earlier in the
whom we work. From training and development, through public relations and marketing decade. In 2007, there were 1.62 million
and on to major corporate development we are delighted to share our expertise, energy properties sold, which was close to the 1.67
and results focus.
million of 2006. Both the Nationwide and Halifax
We love what we do and our passion comes through in everything we do. house price surveys calculated that prices
"We Bring Focus to Deliver Results" ended 2009 slightly higher than they were at
the start of the year.
The Rocket Performance Group
Rocket Marketing Associates Rocket Training & Development Rocket Corporate Development
Lanark, Scotland Ross-on-Wye Beaconsfield
Email: info@rocketperformance.co.uk www.rocketperformance.co.uk
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recording, or otherwise, without the prior permission of the publisher Rocket Performance Group. This report has been created to provide a summary overview of the market environment
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