Trading Cannabis Indices with Jasper Lawler, Head of Research at London Capital Group
Jasper Lawler explains London Capital Group’s new Cannabis Index that tracks a broad basket of the world’s largest cannabis companies.
Japser was speaking at the Cannabis Investor Forum 2019 held in the City of London.
You can find out more about the Cannabis Investor Forum here.
Touchstone report third consecutive quarterly loss
Touchstone Exploration Inc (LON: TXP) have seen their shares plummet across Thursday trading as the exploration firm gave shareholders a gloomy update.
Touchstone Exploration reported on Thursday that it had swung to a loss for the third consecutive quarter in financial 2019.
The news will critically alarm shareholders, as 2019 has produced a poor string of results for the Canadian headquartered exploration firm. The main operations of Touchstone reside within Trinidad & Tobago.
Shares of Touchstone Exploration plummeted 12.24% to 10p per share. 14/11/19 14:45BST.
For the three months to the end of September, Touchstone Exploration achieved average crude oil production of 1,729 barrels per day, down 2% from 1,758 barrels in the same period a year ago.
On a positive note, nine month average production was up 12% to 1,871 barrels per day but might not be enough to satisfy shareholders within a disastrous financial 2019.
Touchstone Exploration’s net loss for the quarter was CAD1.1 million, ($793,816), swinging from a profit of CAD199,000 a year before, as petroleum sales dipped by 9% to CAD9.0 million from CAD9.9 million.
The loss will worry shareholders, but many big oil and gas exploration firms have seen slumps which may act as consolidation for shareholders.
Shell (LON: RDSB) reported a sink in profits in their most recent update, whilst Total SA (LON: TTA) saw profits fall 15% in their third quarter update.
Both the big titans alluded to sinking oil prices and market volatility as drivers of slow business, but the extend to which Touchstone swung to a loss will be alarming.
The company has completed the primary target in the Coho-1 exploration well on the Ortoire block, onshore Trinidad, and is rigged up to start production testing, which is set to be completed next week.
Certainly, the poor performance of Touchstone cannot be just attributed to low oil prices. As this is the third consecutive quarter that losses have been reported then Touchstone do face an internal challenge to keep afloat a seemingly sinking ship.National Grid beat interim profit expectations
National Grid plc (LON: NG) have beaten interim profit expectations as highlighted in their most recent trading update published on Thursday.
Shares of National Grid spiked 1.09% to 901p across Thursday trading. 14/11/19 14:21BST.
Underlying profit before tax at the London-listed grid operator dipped 4% to £785 million for the six months ended Sept. 30, but was above the £748 million that analysts had expected.
UK revenue jumped 5% to £2.40 billion, with a strong performance from the UK electricity transmission segment driving operating profit up by 9% to £829 million. The power company said that for the period ended Sept. 30, pretax profit was £404 million compared with £522 million for the first half of fiscal 2019.The fact that National Grid have managed to post such impressive results will please shareholders. National Grid have faced a lot of scrutiny after widespread outages in Britain led to an investigation currently undergoing.
The FTSE100 (INDEXFTSE: UKX) listed firm received tough media scrutiny due to inclement weather conditions in August that left more than million customers without power, these customers included hospitals and airports.
National Grid outlined environmental policies by saying that they wanted to reach a net zero target for their own emissions by 2050.
“This objective will be supported by work in other areas, such as offering further energy efficiency programmes for our U.S. customers, proposals for renewable natural gas and hydrogen blending programmes,” Chief Executive Officer John Pettigrew said.
Whilst competitors such as Dominon Energy (NYSE: D) and Exelon Corporation (NASDAQ: EXC) reporting strong quarterly updates, the results will come as a relief for National Grid shareholders.
The board declared an interim dividend of 16.57 pence a share, compared with 16.08 pence the year before. National Grid said it expects asset growth of around 7% in the near tenrm with annual capital investment of almost £5 billion. National Grid did report a decline in US revenues however, although the company remained confident of continued outperformance from its UK business.Google’s partnership with Ascension raises privacy concerns
Google (NASDAQ: GOOGL) announced that it started a partnership with the healthcare giant Ascension.
Ascension
Ascension is the second largest healthcare provider in the United States.
Google gets access to the healthcare information of millions of people through its partnership with Ascension.
Furthermore, Ascension allows Google to access its data including patient names, patient ages, doctor diagnoses, hospitalisation records and lab results.
Moreover, Google receives the complete health history of Ascension customers.
Healthcare & Technology
Google’s decision to partner with a healthcare provider reflects a new trend.
More and more technology companies expand their reach to the healthcare industry.
Accessing healthcare data allows technology companies to manipulate data in order to increase profits by targeting customers.
Privacy Concerns
Google’s partnership with Ascension raises concerns regarding data privacy.
Most patients consider information regarding their health private.
Consequently, users indicate that they fear for their privacy.
Increasing fear of data privacy impact consumer behavior. Users raised concerns that they might stop using certain Google product and services.
Alphabet officially announced the partnership between Google and Ascension on Monday.
As a result, Ascension is now Google’s biggest customer in healthcare.
Artificial Intelligence & Machine Learning
Technology giants increasingly invest in developing artificial intelligence and machine learning systems that maximize efficiency and profit.
Companies such as Apple (NASDAQ: AAPL), Snapchat (NYSE: SNAP) and Twitter (NYSE: TWTR).
Following the trend, Google is highly invested in the development of artificial intelligence technology.
Subsequently, Google is constantly looking for new ways to improve its artificial intelligence and machine learning systems.
For instance, Google’s partnership with Ascension creates new opportunities for artificial intelligence and machine learning.
Ascension hopes to explore whether artificial intelligence and machine learning can improve the effectiveness of medical systems as well as customer service.
Fitbit
Google has been increasing its involvement in the healthcare sector. Earlier this month, Google bought Fitbit (NYSE: FIT).
Fitbit is a fitness tracker that evaluates the health and wellbeing of its users.
Google has the opportunity to use data it accesses through Ascension to improve its Fitbit technology.
On the other hand, users of Fitbit raised concerns regarding Apple’s partnership with Ascension.
Through its partnership with Ascension, Google can access healthcare data of Fitbit users without their permission.
Google’s decision to partner with Ascension is a part of Google’s general strategy to get more involved in the healthcare sector.
BHP announce new senior appointments
BHP Group Plc (LON: BHP) have announced two new senior appointments in an update on Thursday.
Shares of BHP modestly rallied 0.06% to 1,677p after the announcement. 14/11/19 14:05BST.
BHP announced that Mike Henry, the current president of Australian operations would be appointed as new chief executive.Additionally, Carolyn Hewson departed as a non executive, who retired as a director on November 7th.
Henry replaces incumbent Andrew Mackenzie who will step down as a member of the firm’s executive team on December 31, before retiring on June 30, 2020.
Henry has been a member of BHP’s executive leadership team since 2011, and was appointed President of Operations Minerals Australia.
He said: “I am honoured and privileged to be appointed as CEO and to have the opportunity to lead the talented and hard-working people who make BHP a great company. For more than 130 years, through the ingenuity and commitment of its people, BHP has delivered shareholder value while successfully adapting its portfolio, operations and products. Today we are even safer, more predictable and more focused.
“We must operate safely, with discipline and reduce our impact on the environment. With the right people and the right culture we will deliver value and strong returns for shareholders and for all of society.”
Henry has worked with BHP since 2003, and BHP added “has 30 years’ experience in the global mining and petroleum industry, spanning operational, commercial, safety, technology and marketing roles”.
The appointment of Henry shows a change of both strategy and direction for the FTSE100 (INDEXFTSE: UKX) listed firm.
In a time where competitors are gaining ground in the industry, the change in personnel could allow BHP to boost revenues and profits in a mixed financial 2019. Rivals such as Serabi Gold (LON:SRB) have posted strong production figures in their third quarter update, whilst Goldplat shares jumped as they posted strong profit gains.Nike end selling partnership with Amazon
Nike Inc (NYSE: NKE) have announced that they will not sell directly to Amazon (NASDAQ: AMZN) in an attempt to sell directly to consumers as the company confirmed to CNBC.
The decision by Nike to make this change ends an experimental pilot which was launched in 2017.
The initial terms of the deal allowed Nike to sell a limited range of products to Amazon in exchange for tighter regulations on selling counterfeits on Amazon. This deal also included Nike’s athletic footwear, apparel and other merchandise.
Analysts have said “I think Nike is putting more emphasis on its own online business, as evidenced by the news that its new CEO of a former CEO at eBay,” said Morningstar analyst David Swartz. “Also, Nike was probably unhappy that Amazon hasn’t gotten rid of the third-party sellers and fakes.
Nike products will be available to purchase items on the company website, or through independent stores which Nike sell directly too.
Company officials said that the pilot partnership between Amazon and Nike was no longer part of Nike’s wider sales strategy.
“We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally,” Nike confirmed.
Ending this partnership will allow Nike to take stronger control of their brand, and bring sovereignty back.
Nike said: “As part of Nike’s focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail.
“We will continue to invest in strong, distinctive partnerships for Nike with other retailers and platforms to seamlessly serve our consumers globally.
“We will continue to partner with Amazon Web Services to power a suite of services on Nike.com and within Nike’s ecosystem of apps.”
Amazon have declined to comment on the story, but it is clear that Nike are looking to take the reign back to promote organic growth.
Amazon have looked to expand into many different sectors and are currently involved in an investigation over the potential takeover of Deliveroo. However, Nike have seen more benefit in closing this partnership and this may allow Nike to have control over their own operations and seek expansion with other companies.Viacom exceed market and analyst expectations
Viacom, Inc. Class B (NASDAQ: VIAB) have exceeded market expectations returning strong trading figures in their most recent update.
MTV Owner Viacom, is currently inn the process of formalizing a deal to merge with former partner CBS Corp (NYSE: CBS). The planned merger between CBS Corp and Viacom, is set to be formalized and completed by early December.
Shares of Viacom slipped 2.24% during Thursday trading to $22.05. 14/11/19 13:33BST.
The company also reported a 6% rise in domestic advertising revenue on a constant currency basis. However, revenue from its filmed entertainment division, which includes Paramount Pictures, fell 14%.
Viacom had experienced external success as well, which has contributed to increasing revenues.
Viacom have told shareholders that they have produced content for Apple (NASDAQ: AAPL), Hulu who are owned by Walt Disney (NYSE: DIS) and HBO Max who AT&T (NYSE: T) own.
Shareholders will be further pleased, as it was reported earlier this week that Viacom reported a multi-year deal with Netflix (NASDAQ: NFLX) to produce animated TV shows.
Net earnings from continuing operations for Viacom fell to $303 million (£236.8 million), or 75 cents per share. In the fourth quarter ended Sept. 30 from $386 million, or 96 cents per share, a year earlier.
Total revenue fell to $3.43 billion from $3.49 billion, but was above the average estimate of $3.41 billion, according to IBES data from Refinitiv.
Excluding items, the company earned 79 cents per share, above the average analyst estimate of 75 cents per share.
The new partnerships that Viacom have agreed with rivals such as Disney and Netflix will thoroughly excite shareholders, which could be part of a response to stimulate Netflix subscribers after a period of slow trading. With a well established base, Viacom seem to have scored a good deal to expand into other sectors of broadcasting television and entertainment, which could boost long term returns. “Our strong performance in the fourth quarter capped off a pivotal year for Viacom and reflects the successful execution of our strategic priorities to evolve the company for the future,” CEO Bob Bakish said. “As we look to the future of a combined ViacomCBS, we’re thrilled with the momentum we have to create one of the world’s preeminent content companies.”Asda blame political uncertainties for quarterly slump
Asda have seen a slump in sales, highlighted in their quarterly trading update, which has been caused by political uncertainties and tough market conditions.
Walmart (NYSE: WMT) own Asda currently, and Asda join a list of British supermarkets who have seen a decline in recent trading performance.
Shares of Walmart are trading at $120, spiking 1.56%. 14/11/19 13:14BST.
The British Supermarket industry has been hit by a few shocks over the years, and recovery for the Big Four looks tough in a cut throat market.
Firms such as Marks and Spencer (LON: MKS) and Sainsbury’s (LON: SBRY) have seen falling sales and profits in their respective quarterly update.
Tesco (LON: TSCO) have also been hit hard, but have responded with non price competition in releasing their new ClubCard Plus only a few weeks back.
The Big Four have been hit by increasing competition from overseas rivals such as Lidl and Aldi, who offer similar quality products at substantially cheaper prices.
Asda reiterated political uncertainties as a hinderance to strong business performance, saying that Britain’s speculative relationship with the European Union has negatively affected spending patterns.
Sainsbury’s attempted to takeover Asda earlier this year in April, in a £7.3 billion deal. However, this deal was blocked as it did not win the approval of regulators and competition authorities.
Asda said its gross profit rate fell, reflecting price markdowns in clothing following a slow summer season versus last year.
The fall in gross profit rate, plus increased operating expenses, meant operating income was also lower.
“This quarter has afforded consumers little respite from political or economic uncertainty and this has shown in their spending,” said Chief Executive Roger Burnley.
As the general election approaches us quickly, many firms including the British Supermarkets will be hoping that Brexit negotiations speed up to allow fluid business trading. Three years on after the June 2016 Referendum, many businesses are in the same position now as they were three years ago where so many uncertainties cloud Britain’s status with the EU.Beximco Pharmaceuticals posts financial progress
Generic pharmaceuticals and ingredients company Beximco Pharmaceuticals (LON: BXP) booked improvements across its fundamentals during their first quarter.
While the Company’s current assets dropped by around half a billion taka to 12.75 billion during the first quarter, their financial results reflected impressive progress in year-on-year comparisons.
Company revenues bounced by over 900 million on-year to 6.3 billion taka. This led Beximco’s surge in profits, which were up from 2.53 billion to 2.94 billion taka pn-year, despite the Company’s operating expenses expanding by 200 million during the same period comparison.
Beximco shareholders enjoyed similar progress, with the Group’s earnings per share rising from 1.86Tk to 2.13Tk.
Elsewhere in pharmaceutical and chemical news, IMCD N.V. (AMS: IMCD), Amryt Pharma Holdings Ltd (LON: AMYT), Curetis NC (AMS: CURE) and Integumen PLC (LON: SKIN) also boasted financial progress.
Beximco comments
Mr. Nazmul Hassan MP, Company Managing Director, responded to today’s update,
“Building on the impressive financial and operational performance we delivered last year, we enter the first quarter of the current financial year with strong year-on-year growth, supported by our continued focus on expanding our product portfolio and strengthening our international presence. In line with this growth strategy, we launched our fifth product in the US during the quarter. We look forward to continuing to build on this momentum and deliver value for our shareholders in the year ahead.”
Investor notes
The Company’s shares rallied 1.21% or 0.50p to 41.00p per share 14/11/19. The Group’s p/e ratio is 8.20, their dividend yield stands at 4.31% and their market cap is £166.28 million.HSBC and Emirates set to cut jobs in UAE
HSBC Holdings (LON: HSBA) and Emirates NBD have cut their workforce in UAE operations in an attempt to streamline costs.
Both these firms have hit recently news headlines after reporting slumps in profits and poor trading periods highlighted in company updates.
HSBC have said that they will lay off 40 bankers in the UAE, whilst Emirates will cut 100 jobs as the two firms attempt to reduce costs.
The job cuts come at no surprise considering the state of the UAE economy, which is suffering from slow growth. Dubai has been hit particularly hard, and slow growth has been fueled by a property slump.
HSBC announced a decline in quarterly profits and an operational change in their operations globally, and it seems that overseas operations have been the first target.
HSBC currently employ 3,000 staff in the UAE and host 10,000 employees in the Middle East.
HSBC, like other competitors such as Lloyd’s (LON: LLOY) and Deutsche Bank (ETR: DBK) have seen a recent business crisis amid cut throat market conditions.
The FTSE100 (INDEXFTSE: UKX) listed bank may look to increase redundancies in overseas operations as further management changes are put in place.
The cuts at Dubai’s largest lender Emirates NBD (came in areas such as consumer sales and liabilities, one of the sources said, while a second source played down the significance, citing the bank’s 12,000 workforce.
“The cuts are part of cost cutting and rationalising to drive efficiencies in a challenging market,” the second source familiar with the matter said about Emirates NBD.
Rating agency Fitch warned in September a weakening property market in the UAE is likely to put more pressure on the asset quality of the banking sector, according to Reuters. The changes will come as no surprise to shareholders at HSBC, as the market conditions become increasingly tough. It will only be seen in the future as to whether UK jobs will face the same cut as UAE jobs have experienced.