Oil Demand Falls for the First Time in 2 years

Oil demand dropped for the first time since 2009. This is the result of a mild winter, high crude prices and reduced productivity following the Global recession & European Crisis. Oil prices peaked at $113 per barrel in April 2011 and remained at high levels throughout the year.  Prices hit an all time high in 2008 at $145 per barrel following the Iraq war and surging demand from China and India.

Tesco Profit Warning Announced

January saw Tesco issue it’s first profit warning in 20 years. The news was followed immediately by a 16% drop in the company’s share price, underlining the dip in investor confidence. 

Tesco reported lower than expected sales in December and its poor trading performance was further hampered by excessive discounting in the run up to Christmas.  It was only last year that Tesco was regarded as the UK’s most successful supermarket. The company’s fortunes have declined due to a combination of the recession and the growth of cheap competition in the form of Aldi, Lidl and Costco. Tesco has also failed in its attempts to expand into overseas markets with the Fresh & Easy brand being particularly unsuccessful in the US. Nevertheless, we feel that Tesco’s attempts to break into mortgages are very exciting and will be interested to see how they develop in 2012. The company could well be undervalued. Watch this space.

Self Assessment Returns Due 31 January 2012

The online Tax Returns (or Self Assessment) for Individuals for the fiscal year 2010/2011 are due by midnight on 31 Janaury 2012. Any tax due is payable on this date. We recommend that individuals required to submit their self assessment for 2011 should leave sufficient time to complete the form due to the large number of users expected to log on at the last minute. This is especially important for individuals completing their self assessment online for the first time as you will need to register and apply for your username and password before the submission can be made. The HMRC have indicated that they will enforce tougher penalties for late filings this year.