InterContinental Hotels Group, have said today that political unrest in Hong Kong has led to lower revenues, and that revenues have dropped by one third in operating hotels. InterContinental Hotels Group (LON: IHG) who also own subsidiaries Holiday Inn and Crown Plaza have suffered dips in stock price after the news broke out. Hong Kong has been in a battle of political sovereignty with China, and this has impacted many firms ability to conduct business. Firms such as Starbucks (NASDAQ: SBUX) have had shop fronts destroyed and windows broken as part of protests. The FTSE100 listed company alluded to revenue per room available slipped by 0.8% in its third quarter review. Revenue in Chinese operations also dropped 6.1% due to a 36% fall in Hong Kong business. Pro Democracy protests have escalated issues from both governments, where neither is willing to give any concessions. This has led to violent protests and many restrictions on business. The city’s chief executive Carrie Lam to declare this week Hong Kong to be in “technical recession” China is the second largest market for InterContinental and due to these tensions business has significantly slowed down. However, directors at InterContinental Hotels have also seen slower business in the mature US market. Chief executive Keith Barr said: “Despite the weaker revpar environment, and the challenges some of our markets are currently experiencing, we remain confident in our financial outcome for the rest of the year.” Despite these problems, InterContinental have increased the number of hotel rooms, alongside competitors such as Whitbread, owners of Holiday Inn. (LON: WTB). The company’s hotel estate has grown 4.7% year on year holding a total number of 865,000 rooms across 5,700 hotels. Most of this growth has spawned from the newly acquired mainstream suites brand Atwell Suites, and the growing Six Senses resort brand. Whilst there have been changes in travel to TUI (LON: TUI) and Thomas Cook (LON : TCG). Currently shares of InterContinental Exchange Inc are trading at $94.28 per share, seeing a 0.73% increase. 18/11/2019 14:07BST

Wincanton Plc (LON: WIN) have is looking to pursue a possible merger with Eddie Stobart (LON: STOB). If this deal goes through, this could create the UK’s biggest provider of logistics and could give market dominance to Wincanton. Whilst a formal offer is yet to reach the table, Wincanton are preparing moves from Eddie Stobart to begin negotiations. Wincanton said it is “undertaking a diligence exercise on Eddie Stobart and its assets” to assess the benefits and costs of a merger deal. Wincanton holds more than 200 warehouses across the UK and Ireland also possesses 3,600 vehicles. Earlier this year, Wincanton reported a 6.3% rise in pretax profit to £49.3 million, despite sales slipping 2.6% to £1.14 billion. The announcement early on Friday gave Wincanton until 17:00 on 15th November to formalize an initial bid. No proposal has been made by Wincanton to Eddie Stobart as to the terms of any potential offer, and there can be no certainty that any offer will be made to Eddie Stobart shareholders,” Eddie Stobart said. Eddie Stobart, the Cumbrian based logistical firm has a reputation in British industry for their stand out green and red lorries (as pictured). Eddie Stobart were faced with a tough 2019, only a few months ago accusations of a accountancy scandal surfaced British media. This forced the UK firm to slash its profit figures booked last year leading to the Chief Executive resigning. Wincanton are the third firm which have approached Eddie Stobart over a potential merger in the last month. Earlier this week, discussions with private equity firm Dbay were ongoing. However, these talks seem to have fallen through giving Wincanton the opportunity to seize initiative for this deal. The deal comes less than a week after Andrew Tinkler, former boss of Stobart Group said he was no long interested in the business. Other competitors have also felt the heat in this industry such as Fedex (NYSE: FDX) and United Parcel Services (NYSE: UPS) The current shares of Wincanton Plc are trading at 2,389p seeing a 2.1% rise after this approach was made.

Savile Row has joined the list of UK tailors who are finding economic conditions tough because of new tariffs set by the US government. The historic tailoring firm who headline the world renowned London Street, have stated that every suit they sell faces a 25% additional tariff. James Sleater, founder and director of Savile Row’s newest tailor, Cad & the Dandy said “I don’t think anybody on the street was aware of [the tariff]. Conversations about Airbus and [US President Donald] Trump and Savile Row are not normally three words that go hand in hand,” Retailers have had very little time to prepare for this new tariff as the tariff almost doubles export tax on suits from 13% to 25%. A spokesman for Airbus commented “The only way to avoid the negative effects of the tariffs is for the US and EU to find a negotiated settlement. We are working with all our customers to try to mitigate the impact by all possible means.” On 2 October, the World Trade Organisation (WTO) gave the US permission to impose taxes on $7.5bn (£5.8bn) of goods it imports from the EU. This forms the next chapter in the ongoing saga between Washington and Brussels over illegal subsidies given to Airbus (EPA: AIR) and Boeing (NYSE: BA). Tariffs have also been slapped on other British exports such as scotch whiskey, cashmere knitwear and wool suits. International Trade Secretary Liz Truss says: “Resorting to tit-for-tat tariffs is not in any country’s best interests and we are in regular contact with the Trump administration, urging them to refrain from resorting to such measures. As well as causing temporary disruption to UK businesses, it would also hit American consumers in the pocket.” Savile Row’s seniority have expressed their concerns about potential US business. Kathryn Sargent, Savile Row’s first female master tailor worries that US customers may not know about the tariffs imposed and that clients may enquire about reflected price rises. Sargant added “It is a conversation that I’ll be having with my clients when I’m over there, to sense what their reaction is and to see if it puts them off placing future orders,” Mr Dixon says that Richard James, one of the few Savile Row tailors with a store in the US adds “But we think there will be a price rise, we will have to pass some of this on to our customers. Nevertheless, an increase is an increase and we pride ourselves on people getting value for money, especially for a Savile Row suit.” Dixon concluded “The amount of man-hours that go into it, the incredible fabrics used and a suit that can last 20 years or 30 years and then to have a big part of that being paid in tax. I don’t know how people are going to feel about that”  

The London Stock Exchange’s (LON: LSE) share price has risen this morning after impressive third quarter income results were published. After a rocky period for the London Stock Exchange, shareholders will be pleased to see the stock price rise. Only a couple weeks ago, there was scare that a Hong Kong billionaire had submitted a £32 billion bid for the London Stock Exchange. After the bid was rejected, the LSE have gained strong momentum in revenue figures. The strong revenue figures will allow the completion to purchase data provider Refinitiv in a proposed $27 billion deal. The results published also identify a 19% rise in income from clearing house LCH. The figures also reaffirm London’s position in being a central authority in clearing euro financial transactions ahead of Britains negotiations with the EU. Since the Brexit vote in 2016, the London Stock Exchange topped the New York exchange in becoming the largest centre for trading interest swaps. The report showed a 12% increase in total income from current operations, which equated to £587 million in the three months prior to October. This was significantly higher than the £565 million figure, predicted by analysts. Russ Mould, investment director at AJ Bell said “Today’s update from the London Stock Exchange underlines just why it was receiving such amorous glances from its Hong Kong counterpart and potentially why it rejected a £32 billion bid as being inadequate” David Schwimmer, Chief Executive took over the LSE last August told analysts that he hoped a temporary exchange system could be agreed on. This would allow EU customers to continue using the LSE for clearing swaps after Brexit, extending this agreement to beyond March 2020. Schwimmer added “There is a recognition among all the stakeholders in the marketplace about the systemic importance of access to this market … nothing is going to be clarified around that until after Oct. 31,” Britain’s Parliament are set to vote on the new deal proposed by PM Johnson, and the outcome of this will heavily influence future decisions and relations made by the LSE. Currently, shares of the London Stock Exchange are trading at 7,122p per share seeing an increment of 1.11%.    

The GDP of China has fallen, reaching a near low for the first time in thirty years. China have been engaged in a trade war and this has affected Chinese manufacturing, Chinese exports and business. GDP (Gross Domestic Product) has risen 6% year on year, marking a loss from the 6.2% second quarter growth. During the ongoing trade war with the United States, it seems that Chinese businesses and investors are monitoring tariffs and sanctions carefully. This has put pressure on Chinese manufacturing due to lower export revenues and also the trade war continues to spark speculation about a future recession. Asian stocks have crashed since the data was published, reversing gains made on optimism that the EU and UK would reach a Brexit agreement. The data also highlighted weaker demand for Chinese goods, both domestically and internationally. Nie Wen, a Shanghai-based economist at Hwabao Trust said “Given exports are unlikely to stage a comeback and a possible slowdown in the property sector, the downward pressure on China’s economy is likely to continue, with fourth-quarter economic growth expected to slip to 5.9%. Authorities will loosen policies, but in a more restrained way” The third quarter GDP was the slowest rate of growth since Q1 of 1992, and also took place on the governments full year target growth rate of 6-6.5%. Even if the US and China manage to strike a trade deal, the long term sanctions placed by Donald Trump do not give a healthy outlook for Chinese business. The IMF continues to warn the global economy about the implications of the US-China war. They warn international economies that 2019 will be the slowest year of growth since the 08/09 financial crash. Beijing have utilized other tools in order to stimulate growth, such as fiscal inputs and monetary easing. However, the main obstacle is yet to be resolved. Zhang Yi, chief economist at Beijing-based Zhonghai Shengrong Capital Management commented “As infrastructure investment is unlikely to rebound strongly, preventing a big slide in property investment will be key for authorities when they try to stabilize next year’s economic growth,” Washington and Beijing have to make a trade agreement soon to end this feud, amid tensions with Brexit the global economy does not need another strain. If nothing does come out of either party, then the implications for global GDP could see a potential recession.  

News emerged yesterday that a Brexit deal has been struck, and the GBP/USD is trading around 1.29 as we wait for the verdict. MPs will sit in the House of Commons on Saturday to vote on the deal that has been agreed between the UK and the European Union. The exchange rate was sent into a frenzy on Thursday following the events connected to the nation’s departure from the European Union. Reactions have emerged on how the Brexit deal will impact the UK property market. “The news of a Brexit deal will bring relief to the many European renters currently residing across the UK,” said the Co-founder of the roomshare platform Ideal Flatmate, Tom Gatzen. “For many, the political purgatory caused by a protracted Brexit process has thrown doubt over their status to live and work in the UK and this has had a direct impact on their ability to rent, how long they can rent for and their commitment to enter into a lengthy tenancy agreement,” the Co-founder of Ideal Flatmate continued. “Although the devil will very much be in the detail of [the] deal, a light at the end of a very long, dark tunnel should go some way in stabilising this segment of the UK rental sector and we can now get back to living in happy, harmonious households.” Founder and CEO of Springbok Properties, Shepherd Ncube was relieved that a deal had been reached. Shepherd Ncube said: “Hallelujah. Against the odds and in the face of doubters, a Brexit deal has now been done and the UK property market can emerge from its dormant state brought about by months of political uncertainty.” “We don’t yet know the detail, of course, however regardless, the property sector will surely begin to breathe again on the basis of some level certainty being restored and this uplift in market activity should see the cogs of positive price growth and transactions start to climb once again.” The Director of London lettings and estate agent, Benham and Reeves, Marc von Grundherr, also commented: “The political paralysis that the economy and in particular the housing market has endured these last few months has been torturous for would-be home sellers, buyers, estate agents, conveyancers and mortgage lenders alike.” “London has certainly taken the brunt of this and while there are no doubt many details left to iron out, we can start to look forward and finally, beyond Brexit. This will bring about a notable change in the fortunes of weary London home sellers and the capital will now regain its title as the cornerstone of the UK property market,” Marc von Grundherr said. “Foreign investment has remained strong despite the current landscape, but this revival in domestic appetite will fill the tank and see the market shift through the gears, if not immediately, certainly as we see in a new year.” Will Boris Johnson’s deal make it through Parliament?

Marriott International Inc (NASDAQ: MAR) are set to agree the purchase of Elegant Hotels Group PLC (LON: EHG) which has caused the share price of Elegant to soar through the roof. Marriott International are set to payout 110p per share in cash for Elegant, giving the Marriott Group huge pathways into the Caribbean market. The agreed deal of 110p per share saw a 57% premium to its price at the close of Thursday trading. THIS values the AIM listed company at £100.8 million, based on Elegant’s enterprise value of US$199 million and net debt of $68.9 million. Arne Sorenson U.S. hotelier’s chief executive officer said ““There is a strong and growing consumer demand for premium and luxury properties in the all-inclusive category” Elegant Hotels , a firm based in St Lucia went public in 2015 and shareholders have seen a surge in their holdings since the move was proposed. This drives Marriott’s intentions to tap into international markets, particularly in the Caribbean market after the acquisition of Starwood Hotels & Resorts. The Caribbean retailer said it had faced tough tests due to fluctuations in the sterling, which had hit its share price, reducing the opportunities to pursue growth strategies leading to a change in direction from seniors. This comes as a response from competitors such as Whitbread (LON: WTB) combatting low profits. Elegant’s non-executive chairman Simon Sherwood. “The board of Elegant Hotels is confident in the group’s long term prospects but believes that this offer represents compelling value for our shareholders and a great opportunity for our employees to be part of one of the world’s leading hotel companies,” Currently shares in Elegant Hotels are trading at 109.4p per share, seeing a 56.29% surge during the early hours of Friday trading. 18/11/2019 10:34BST. The decision by Elegant will allow massive expansion opportunities, and will allow Marriott to stampede their dominance in the Caribbean market.  

Renault (EPA:RNO) has revised its guidance for the 2019 financial year as a result of a “less favourable” economic environment. Shares in the French multinational automobile manufacturer plunged on Friday morning, trading over 12% lower. Renault said it now expects its group revenue to decline between 3% to 4%, “due to an economic environment less favourable than expected and in a regulatory context requiring ever-increasing costs”. Meanwhile, group operating margin is expected to be around 5%, the automobile maker said. Renault added that its revenue for the third quarter amounted to €11.3 billion, down by 1.6% from the €11.5 billion figure recorded in the third quarter of 2018. The car manufacturer continued to add that “the Automotive operating free cash flow should be positive in H2 while not guaranteed for the full year”. Moreover, Renault said that is management will review the “Drive the Future” mid-term plan targets introduced in 2017. According to the Wall Street Journal, Arndt Ellinghorst, an auto analyst with brokerage Evercore ISI, commented on Renault’s announcement, saying that the guidance cut “paints a rough outlook on what might come in 2020 when markets will more likely be tougher and CO2 rules will add significant incremental costs to the system.” Renault, which has manufactured cars since 1898, sold close to 3.9 million vehicles in 134 countries in 2018. Elsewhere, it was reported earlier this year in August that British car manufacturing output dropped 10.6% in July, according to new data from the Society of Motor Manufacturers and Traders (SMMT). Additionally, earlier in October, data revealed that the UK new car market declined in the first nine months of the year as Brexit uncertainty weighs on consumer confidence. Boris Johnson now faces the task of persuading MPs to support his Brexit deal on Friday. Shares in the French multinational automobile manufacturer Renault SA (EPA:RNO) were down on Friday morning, trading at -12.44% as of 11:13 BST.