Uber set to trial electric bike rental service in the capital
Uber (NYSE:UBER) is set to launch the electric bike service JUMP in London.
The taxi app will be trialling the scheme in the capital, offering bikes available to rent through its app. 350 red JUMP electronic bikes will take to Islington as part of the trial, which will expand across more London boroughs across the next few months.
Uber has said that the JUMP bikes are pedal-assist electric bikes with an integrated GPS and lock which allows riders to find locate a bike close by and rent it out.
Riders must simply launch their app and select a bike located nearby to unlock it. They will then receive a PIN to unlock the JUMP bike, with prices depending on the city. The bike will then unlock and can be taken for a ride.
London is not the first city to experience the service – countries across the world such as the US and Canada, in addition to European cities such as Berlin and Paris, have the bikes already available to them.
According to the Guardian, Local Councillor Claudia Webbe said the “shared electric bikes are accessible to many people of different ages and fitness levels and can help encourage even more people to switch to cycling, which is healthier and more environmentally friendly.”
Elsewhere for Uber, it recently launched its initial public offering on the New York Stock Exchange under “UBER”.
Its drivers across the UK were set to strike against pay and working conditions just days before its IPO was unveiled, in addition to drivers in New York, San Francisco, Chicago, Los Angeles, San Diego, Philadelphia and Washington DC in the US.
From its work place culture, in which certain sexual harassment and discriminatory practices have occurred, to the treatment of its drivers, Uber’s past involves several controversies.
At 19:59 GMT-4 Thursday, shares in Uber Technologies Inc (NYSE:UBER) were trading at -1.89%.
Nairobi: Is it still Africa’s ‘Silicon Savannah’?
The Kenyan capital of Nairobi is a chaotic metropolis, with over 3 million people residing in the city, there’s plenty going on at all junctures.
We take a deep look at some of Kenya’s key industries, including the city’s once burgeoning tech sector, alongside some of the latest political developments affecting Kenya.
Economy
The Kenyan economy is largely driven by its Agriculture, with 80% of its population employed by the farming sector.
Whilst Nairobi is one of East Africa’s largest urban cities, it is also home to some of the nation’s prime agricultural lands. As such, various crops such as maize, beans, and fruit are all grown in the region, and exported all over the globe.
Kenya also happens to be the largest tea exporter in the world.
Goods such as clothing, textiles, building materials, beverages and cigarettes are also all manufactured in Nairobi.
Foreign companies such as Coca-Cola, General Motors and IBM all have factories in the Kenyan capital.
The city also has a budding financial centre, home to the Nairobi Securities Exchange, which is also of Africa’s largest.
It is Africa’s 4th largest in terms of trading volumes, and 5th largest in terms of Market Capitalization as a percentage of GDP.
As of 2018 estimates, Kenya had a GDP of $85.980 billion making it the 69th largest economy in the world. Per capita GDP was estimated at $1,790.
However, tourism continues to drive economic growth in the region. Surrounding safari parks mean Nairobi is a top tourist destination, attracting travellers from all corners of the world.
Silicon Savannah
Nairobi is often referred to as the Silicon Savannah, in reference to the over 200 tech-start-ups residing in the city.
Some of that initial buzz may have fizzled out in recent years however, with tech hubs increasingly spreading outside the confines of the city.
Still, innovative companies such as ihub, which opened its doors in the city back in 2010, have made Nairobi their home.
Its nickname is no doubt a nod to the over 200 start-ups hosted in the capital.
As it happens, Nairobi was the only African city to appear on their shortlist of 21 broadband hubs throughout the world for 2015.
In fact, Kenya enjoys one of the fastest mobile Internet speeds across globe, beating the United States and Sweden.
Moreover, according to a Disrupt Africa report, shows tech start-ups across Africa raised over $129 million in 2016, a 17% increase on the previous year, with Kenya attracting the second highest investment after South Africa.
Yet Nairobi, like all cities, has room for improvement – ranking 186 on Mercer’s Quality of Living City Rankings 2017. The ranking flagged traffic, crime levels, poor public transport and housing as some of its key concerns.
Safaris and Scenery
Nairobi is often referred to as ‘The Green City in The Sun’, due to its greenery and warm, balmy temperatures.
It is also called the ‘Safari Capital of the World’, with safari tours bringing in rafts of tourists and visitors.
Africa’s Media Hub
Nairobi is also home to many multi-national news corporations’ regional headquarters including the BBC, CNN, Agence France-Presse, Reuters and Deutsche Welle.
Most recently, the BBC announced it had launched its largest bureau outside of the UK in Nairobi.
Almost half of the 600 BBC journalists working across Africa are to be based in the new facility in Nairobi.
Kenya’s Politics
The Economist Intelligence Unit rated Kenya as a “hybrid regime” back in 2016.
A hybrid regime is considered to be a partial democracy, where elections take place but there are also elements of political repression and corruption.
Currently, the Kenyan President is currently Uhuru Kenyatta, who is leader of the National Alliance party.
He also happens to be the son of Jomo Kenyatta, the nation’s first President.
Kenyatta was re-elected for a second term back in August of 2017, with an alleged 54% of the popular vote.
However, the result was challenged in the Supreme Court. The court ruled that another election must take place within 60 days of the ruling.
Kenyatta was re-elected in the second election, with 98.26% of the vote, on a turnout of 38.84%.
Crime in the capital
Unfortunately, Nairobi’s reputation in terms of crime continues to drag down its potential.
In particular, crime tends to increase during the time of an election – with political unrest proving a key driver of civic violence.
Moreover, the Kenyan capital is also at high risk of terror attacks, with extremist group Al Shaabab launching violent terror attacks on shopping centres, embassies and tourist hotspots.
Mothercare posts £66.6 million annual loss, completes store closure plan
Mothercare (LON:MTC) posted a £66.6 million pre-tax annual loss for 2018, but insists the completion of its UK store closure programme leaves the business on a “sounder financial footing”.
Founded in 1961, it has been publicly listed on the London Stock Exchange since 1971.
The British childcare retailer said on Friday that it had successfully completed its UK store closure programme ahead of schedule. It has reduced its UK estate from 134 stores last year to 79.
Last July, Mothercare was forced to compose a survival plan as its traditional high street position faces challenge by online competitors, forcing it to close a third of its stores in the UK.
In a trading update released in April, the company said that the rate in which its like-for-like sales were declining has improved when compared to the prior two quarters.
Its international business has shown sides of “moderate” recovery. International retail sales were down 0.3% in constant currency and Mothercare said that its core markets in Russia, China and Indonesia had experienced growth.
The retailer said that the next stage of its strategic transformation plan is to develop Mothercare as a global brand. It will simultaneously, however, remain primarily focused with its online proposition in the UK.
“We have achieved a huge amount this year, refinancing, restructuring and reorganising Mothercare to ensure a sustainable future for the business. The majority of that work is now done, including the completion of our store closure programme, leaving us with 79 stores which are well positioned to support our UK customer base,” Mark Newton-Jones, CEO of Mothercare, commented on the results.
“We have also sold Early Learning Centre and our Head Office, and the proceeds have been used to greatly reduce our debt. Combined with a new approach to sourcing product and our organisational restructuring, we have a much reduced cost base,” the CEO continued.
“Whilst this major restructuring activity has resulted in significant headline losses for the year, the business is now on a sounder financial footing.”
At 08:09 BST Friday, shares in Mothercare plc (LON:MTC) were up 21.96%.
Oil under pressure as US stocks sink
- The FTSE 100 closed not far off its day’s lows yesterday, having been under pressure from the open following rising concerns over US-China trade tensions along with increasing evidence that Prime Minister Theresa May is now on borrowed time.
- Oil price came under severe pressure yesterday.
- US stocks ended deeply in the red again yesterday, albeit recouping some of their losses in the final hour of trading.
- Asia is set to close shortly, mixed with mostly just modest moves having after seeing Japan stage a half-hearted rally from its opening lows.
- Today’s UK financial updates include finals from: Mothercare, Urban Logistics, Tiger Resources and Westminster Group, with General Meetings due for Bodycote, Bezant Resources, Fevertree Drinks, Informa, Luceco, Pagegroup, Spectris and the Yew Grove REIT.
SVS Securities morning call and market round-up 23rd May
- Sterling weakens further as Theresa May’s ‘bold offer’ falters, Commons Leader, Andrea Leadson, resigns and Cabinet allies desert the PM amid demands she quits.
- US major averages soften, giving back some of yesterday’s gains with techs again in focus.
- Asia markets are falling quite sharply this morning on concerns that the trade dispute may be entering an extended stand-off.
- Today’s UK financial updates include finals from: Helical, Hummingbird Resources, Mediclinic International, PayPoint, Renewi, TalkTalk Telecom, Tate & Lyle, QinetiQ, United Utilities and Young & Co’s Brewery, interims from AJ Bell, Hollywood Bowl, Mitchells & Butlers and Premier Asset Management, quarterlies from Atalaya Mining and Sabre Insurance Group, with General Meetings due for Acacia Mining, Alliance Pharma, Avast, Aviva, Bakkavor, Coats Group, EnQuest, Essentra, Gocompare.Com, Hastings, Henry Boot, Highland Gold, Ibstock, Inchcape, Intertek, Legal & General, Nucleus Financial, Polypipe, S&U, StatPro Group, SOCO International, Strix and XLMedia.
Game of Thrones finale and the next chapter for HBO
So, the biggest show in television history has just concluded and there was no avoiding it. Much to the chagrin of HBO big wigs, Netflix breezed past the Game of Thrones platform to claim the number one spot as the best outlet for original content, but that will not be the greatest concern as far as sentiments are concerned.
Love it or loathe it, Game of Thrones is a piece of history. The show brought together an international following and consistently grabbed the media’s attention. As Tyrion Lannister would tell us with his astute observation in the final episode, stories are one of the most compelling forces in the world, and society can be successfully brought together by sharing the best and most enveloping tales.
Game of Thrones Controversy
Note: No spoilers, but skip past this section to avoid more GoT ranting. At the very least, GoT was successful in its ability to act as an escape from reality, while playing on some very real tropes surrounding the frightful and recurring frailties of human nature. Within the show, these manifest themselves in our feverish struggle for dominance and our attempts to materialise and secure our own machinations for the world around us and the world at large. Not to emulate the ham-fisted efforts of writers Benioff and Weiss, I will quit my vague ramblings and talk controversy. As many will already be aware, willingly or otherwise, the eighth season of Game of Thrones received – at best – mixed reviews. A petition to have the final series of the epic saga remade was started by ‘Dylan D’ and two weeks later, the petition has been signed by little short of 1.5 million disgruntled fans. This backlash has triggered a response from many of the actors who spent over a decade struggling to disseminate the rest of their careers from their involvement in the unforgettable show with its forgettable final season. First, we have the measured response of Hollywood actor Sophie Turner, who, no longer pining for the validation of the North in GoT, will play the role of angsty mutant in the next instalment of X-Men. Turner told the New York Times, “So many people worked so, so hard on it, and for people to just rubbish it because it’s not what they want to see is just disrespectful.” A less controlled reply was given by Kit Harrington – famous for his role as GoT tactical mastermind Jon Snow (sort of). Harrington told Esquire, “I think no matter what anyone thinks about this season — and I don’t mean to sound mean about critics here — but whatever critic spends half an hour writing about this season and makes their judgement on it, in my head they can go f**k themselves. “Because I know how much work was put into this.” “Because they cared about it so much. Because they cared about the characters. Because they cared about the story. Because they cared about not letting people down.“Now if people feel let down by it, I don’t give a f**k. That’s how I feel.”So that’s us told. Of course, the show should be credited for the great piece of television it is. The expectations put on it, the lore, its trending status and the simple fact that its cast and creators were ready to finish, all fed into how it ended. It shouldn’t be slammed, and we should appreciate the relationship we were allowed to build with the characters and to some extent, by proxy, everyone involved. If you want it to emulate the quality, style or story set out by its original author George RR Martin, the final season will leave you dissatisfied. But in response to that point I’d posit two suggestions. (I stole this first one from somewhere, I can’t remember the source sadly) As a compromise, picture George RR Martin’s rendition as the story as documented and exquisitely transcribed by maesters, and the show as the sketchier, more personalised performance by word-of-mouth at a bar or around a camp fire. Failing that; if you want a good story, read the books. As stated by the author himself when asked about the comparison of the show to his books, “I am working in a very different medium than David and Dan (Benioff and Weiss, co-creators and showrunners), never forget. They had six hours for this final season.”
Is HBO on the ropes?
Not really. Sure, Game of Thrones wrapping up is a loss, and they could have milked that franchise for a few more years, but it is hardly a time of strife for the network. First, we should consider that there are other shows on HBO currently claiming the spotlight, with my personal top pick being Chernobyl. Three episodes in and the show has stunned viewers with its insights, grit and its largely British cast, who are giving some of the most notable performances of their careers. The show treads the fine and delicate line between history and drama, and to-date the sensitivity with which it has managed to achieve this balance is a credit to the versatility of a network, which to-date, has been known for dragons and ill-conceived gestures towards social politics. Caroline Framke of Variety, wrote on Chernobyl, “Sometimes, their explanatory scenes can get a bit more technical than the show can quite sustain, but for the most part, their collective curiosity and growing astonishment carries them through. Together, the formidable trio of Harris, Skarsgard, and Watson give the series its bleeding heart, untangling their characters’ respective inner conflicts and ultimate determination to tell the truth in the face of extraordinary opposition from their own country with expert ease.” However, the current shows aren’t the only reason not to pity HBO. You know that bit where I said they, “could’ve milked that franchise for a few more years”? Well, ta-da. Valar Morghulis (All Men Must Die) That may be the case, but the temptation of a cash cow never will. The old guard are gone but a fresh, new batch of actors have already begun filming a GoT prequel. The actor playing the prolific dragon queen Daenerys, Emilia Clarke, pleaded to the creators to “just let it lie”, in regard to the existing show which is barely cold in the ground. If the Star Wars, Lord of the Rings or Harry Potter franchises are anything to go by, the best stories will not be allowed to end. Corporate bodies will thrash storylines with a cane of inter-generational, profiteering megalomania until there is no love left. Or maybe that’s just pessimism, none of those franchises have as yet failed, and maybe the art of modern stories is that they never end.Cursory note on HBO stock
HBO is owned by giants AT&T (NYSE:T) and WarnerMedia (NYSE:TWX) and as such cannot be tracked as a stock in its own right. The merging of Time Warner and AT&T was a contentious issue which spanned the course of 2018, and sparked an Anti-Trust Case against what many viewed as the formation of a monopoly which would not be in the interests of consumers or market competition.Intermediate Capital shares rally with AUM rise
British specialist asset management firm Intermediate Capital Group plc (LON:ICP) saw its share price rally during Wednesday trading following the company’s announcement that its assets under management had risen by 29%.
International Capital performance
Thankful not to have as difficult an outlook as their asset management counterparts Babcock (LON:BAB), ICG booked an impressive growth in assets under management, which the company attributes to an influx of net fund flows amid strong demand across a broad range of its investment strategies. During the year ending 31 March, AUM grew 29% to €37.1 billion. Inflows were €10 billion and fee earning assets under management from third parties were up 41% at €29.6 billion. Pre-tax profits spiked 65% on-year to £278.3 million for the full year,and fund management company profits jumped 51% to £143.8 million. Fund management company earnings were up to 49p from 44.9p a share the year before, though this was offset by a drastic fall in Investment company earnings from 43.9p to 14.4p on-year. Overall, earnings per share were down to 63.4p, from 88.8p a year earlier.Intermediate Capital comments
“This has been an excellent year for ICG. Our disciplined investment processes and consistent investment performance have generated strong demand across a broad range of our investment strategies. Our local teams continue to originate attractive investment opportunities, while locking in returns by realising existing assets where appropriate,” said Benoit Durteste, CEO. “While our most successful strategies continue to attract higher asset flows, we are putting in place the foundations for future growth, incubating new strategies and building out our pool of talent, and remaining alert for the opportunities any market dislocation may present.”Portfolio considerations
The company’s final dividend climbed 67% to 35p a share, which lead total ordinary dividends for the full year up 50% to 45p per share. Following their investor update, the company’s share price rallied 93p or 7.77% during trading on Wednesday, with shares trading at 1,290p as of 22/05/19 14:58 GMT. Shore Capital analysts have reiterated their ‘Hold’ stance on Intermediate Capital stock, while Numis (LON:NUM) reiterated their ‘Buy’ stance.British Steel collapses, 5,000 jobs at risk
British Steel entered liquidation on Wednesday, after failing to secure a loan from the government.
The collapse places 5,000 jobs at risk, alongside a further 20,000 in the supply chain.
Earlier this month the government granted British Steel a £120 million to cover an EU carbon bill.
The company had been after additional funds to avoid calling in administrators.
However, the government Business Secretary Greg Clark MP concluded that it had to turn down the request as it would not be lawful.
He released the following statement earlier today on the matter:
“The government has worked tirelessly with British Steel, its owner Greybull Capital, and lenders to explore all potential options to secure a solution for British Steel.
We have shown our willingness to act, having already provided the company with a £120 million bridging facility to enable it to meet its emissions trading compliance costs.
The government can only act within the law, which requires any financial support to a steel company to be on a commercial basis. I have been advised that it would be unlawful to provide a guarantee or loan on the terms of any proposals that the company or any other party has made.
This will be a deeply worrying time for the thousands of dedicated British Steel workers, those in the supply chain and local communities. In the days and weeks ahead, I will be working with the Official Receiver and a British Steel support group of management, trade unions, companies in the supply chain and local communities, to pursue remorselessly every possible step to secure the future of the valuable operations in sites at Scunthorpe, Skinningrove and on Teesside.”
Despite commencing the wind down process, British Steel will continue to operate as normal, as it looks to locate a potential buyer.
EY has been tasked as the administrators to oversee the procedure.
According to reports, employees wages have been paid, and the government is set to cover the remainder of the costs.
Nevertheless, there is continued worry over the future of the thousands of jobs that may be lost.
MTI Wireless Edge 16% sales growth leads profit
Israel-based communications and frequency specialists MTI Wireless Edge Limited (LON:MWE) have posted an on-year increase in Q1 profits led by an increase in sales.