Lloyds’ new app feature allows customers to see accounts with rivals

Jamie Gordon
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0
Lloyds’ new app feature allows customers to see accounts with rivals
After an update to their online banking app, customers of the UK’s largest current account provider, will be able to use Open Banking as part of the Lloyds Banking Group Plc (LON:LLOY) service. After being introduced by Bank of Scotland in December 2018, open banking functionality has been rolled out across six banks, with customers of Lloyds Bank and Halifax (LON:HALP) now able to view their personal accounts at six rival banks.

A basic run-down as told by Lloyds

Lloyds attempt to put the wary critics to bed by saying that login details for other banks will never be shared, and that customers can add another account at any time using a secure open connection. While the service is currently only open to Lloyds, Halifax and Bank of Scotland customers, those using the updated app can view accounts held with NatWest, RBS (LON:RBS), HSBC (LON:HSBA), Barclays (LON:BARC) , Santander (BME:SAN) and Nationwide (LON:NBS), with more providers set to be added over time.

Stephen Noakes, transformation director at Lloyds Banking Group said, “We’re focusing on taking our industry-leading apps to the next level by offering customers a fuller view of their finances.”

“Bringing open banking technology into our apps is the next step in a series of exciting new features designed to make it easier for customers to manage their money online.”

“We recently launched a suite of features to help online banking customers keep track of spending and help protect against fraud, enhancing the safe, secure and seamless experience our customers are used to every day.”

In addition to the open banking phenomena, the new update fro Llloyds and Halifax customers includes the ability to view a timeline of scheduled payments for bills and direct debits, and a Google Maps functionality for Android users, which allows them to see the exact location of debit card transactions.

The Ts and Cs

Current open banking rules require UK banks to share the current account data of their customers with the idea of letting third party companies save a user money by assisting with budgeting and comparing different deals. Such data includes but is not limited to an individual’s income, debts and spending habits.

Experts weighing in

Leon Muis, the COO of Yolt, said: ‘This is just another reminder that we are on the brink of an Open Banking revolution.

“Consumers are already benefiting from more personalised products and services that simply weren’t possible a year ago and, at Yolt, we are ready and waiting for more accounts to be available, such as savings, to offer the consumer an even stronger solution.”

“Open Banking has the power to completely change the way all of us interact with our money. With Lloyds Banking Group helping to raise the profile of this relatively new regulation, I hope we will start to see more and more consumers seizing power and control of their data and finances.”

Research by PricewaterhouseCoopers (NYSEARCA:PWC) stated that 33 million people would be signed up to open banking by 2022, though in a recent survey of 2,000 people, only one in four people had heard of the concept, and only one in five knew what it actually entailed. Lloyds shares are currently trading up 0.18p or 0.31% at 58.22p per share 06/02/19 16:26 GMT. As far as investor ratings are concerned, the only consensus to be found is between JP Morgan Cazenove and Barclays Capital analysts, both reiterating their ‘Overweight’ stance on Lloyds stock.  

GlaxoSmithKline profits up 36% – warnings for 2019

Jamie Gordon
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2
GlaxoSmithKline profits up 36% – warnings for 2019
British pharmaceutical firm GlaxoSmithKline (LON:GSK) have posted a 36% on-year hike in full-year profits, though the company have warned investors of the potential for turbulent conditions later in 2019. The news follows today’s announcement of a new rare disease treatment by the company’s counterpart AstraZeneca (LON:AZN), strong trade amid the FTSE slump mid-2018 and a £10 billion merger of its healthcare arm with Pfizer (LON:PFE) before the festive period.

GlaxoSmithKline positive results

GSK celebrated a 36% jump in on-year profits, which it pinned on strong sales of its shingles vaccine and respiratory disease treatments. The shingles vaccine’s sales more than doubled to £784 million, while new respiratory product sales bounced 35% to £2.6 billion. GlaxoSmithKline posted a 36% rise in pre-tax profit, underpinned higher sales of its shingles vaccine and respiratory disease treatments, but warned of lower earnings in 2019. Pre-tax profit for the year through December rose to £4.80bn, as sales climbed 2% to £30.82bn, or by 5% on a constant currency basis. “GSK delivered improved operating performance in 2018 with group sales growth, strong commercial execution of new product launches, especially Shingrix, continued cost discipline and better cash generation,” chief executive Emma Walmsley said.

GSK as an investment portfolio potential

For 2019, GlaxoSmithKline predict earnings per share to fall 5-9% in constant currency, on the back of approval of a generic competitor to respiratory disease treatment, Advair, in the US. However, in the most recent results, adjusted EPS grew 7% to 199.4p or 12% on a constant currency basis. The company said this was brought about via an improved operating margin and continued financial efficiencies. The earnings guidance published by GSK also took account of the anticipated impact of their Tesaro acquisition and assumed the joint venture with Pfizer was completed without GlaxoSmithKline declared a full-year dividend of 80p per share, with a forecast for this to remain flat during the course of 2019. GSK shares are currently trading up 16.8p or 1.1% at 1,539.4p per share 06/02/19 15:17 GMT. Deutsche Bank analysts have reiterated their ‘Hold’ stance on GSK stock.

Donald and Kim – summit part two

Jamie Gordon
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0
Donald and Kim – summit part two
In his State of the Union address to Congress, President Donald Trump announced that he would be holding a second meeting with North Korean leader Kim Jong-un. In the 82 minute speech, the President said he would be meeting Kim on the 27th or 28th of February, in either Da Nang or Hanoi, Vietnam.

What was said during the State of the Union?

“As part of a bold new diplomacy, we continue our historic push for peace on the Korean peninsula.” “If I had not been elected president of the United States, we would right now, in my opinion, be in a major war with North Korea,” “Much work remains to be done, but my relationship with Kim Jong-un is a good one. And Chairman Kim and I will meet again on February 27 and 28 in Vietnam.”

Trump’s aim

The President hopes to build upon the relative success of last year’s summit in Singapore, and while North Korea has yet to dismantle its nuclear weaponry programme, Mr Trump stated, “our hostages have come home, nuclear testing has stopped and there has not been a missile launch in more than 15 months”. In the second instalment, the controversial US emissary will be enticed by the prospect of ending a 68-year-long conflict. Trump will inevitably seek out something more than a show of solidarity, something in the form of a written pledge. Dealing with a country known for secrecy and an introverted agenda makes North Korea a dubious dance partner, especially when the US’s chips coming into the game will largely involve dealing Kim Jong-un a more favourable hand – or plainly, lifting trade sanctions. In return for such an arrangement, Trump will no doubt be looking keenly towards his counterpart’s activities in Pyongyang and undoubtedly pushing for Kim to relinquish the Yongbyon nuclear production site.

Trump and Kim from another perspective

South Korea’s Presidnet, Moon Jae-in, has already welcomed the announcement, with spokesperson Kim Eui-kyeom commenting, “The two leaders already took their first step in Singapore toward shaking off their 70-year history of hostilities. Now we hope that they will take a step forward for concrete, substantive progress,” The summit gives the leaders “the opportunity to truly make history in Vietnam. But transforming an adversarial relationship built on tough talk, nuclear threats and the danger of a second Korean war that could kill millions won’t be easy.” said Harry Kazianis, director of North Korea studies at the Center for the National Interest in Washington. “Success can only be assured in finding a formula where both sides each make concessions that are realistic, verifiable and not perceived as a loss to the one granting them.” Following the summit, President Trump has plans to meet with Chinese President Xi Jinping

Mosman Oil and Gas output falls behind expectations

Nicole Jeary
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0
Mosman Oil and Gas output falls behind expectations
Mosman Oil and Gas (LON:MSMN) updated the market on its production output figures for the six months to December-end. The company said net production rose 47% in the period, compared to the first-half of the year. Nevertheless, this proved behind previous expectations, as poor weather affected site access. The company said that Production at its Welch site was restricted due to broken rods, as well as drilling of Stanley-2, which had been delayed as the road ‘needs to be in dry condition for the heavy rig loads’. The firm said that its operations could continue once weather conditions had improved. John W Barr, Chairman, said: “Mosman continues to grow its production and sales consistent with its business plan, despite the challenges of the severe weather delays, oil price falls and operational issues during the period. “Production growth is expected to continue as workovers are completed and new wells drilled. The horizontal wells at Welch are subject to funding, where options are being reviewed, including a farmout. Planning continues for additional wells.” Mosman Oil and Gas is an AIM-listed oil exploration company. The firm is focused on projects in Australia and the United States. Shares in Mosman were down 2% on the back of the announcement. Elsewhere in the Energy sector, United Oil & Gas shares (LON:UOG) were up 2.11% as of 12:58PM (GMT), after the company updated the market on its Colter Well. Similarly, Wentworth Resources (LON:WEN) were up 6.85% as of 12:59AM after the company exceeded its production target.  

German industry touts recession: goods ‘boten’ but sinking demand

Jamie Gordon
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0
German industry touts recession: goods ‘boten’ but sinking demand
In a refreshing turn of events, Britain and Brexit are not the calling card for media woes. Today the bell tolls for the German economy, with market analysts forecasting a recession following a drastic decline in factory orders.

Was zur Hölle

While Germany may be Europe’s largest economy, and often praised for its mixed structure, its manufacturing sector has been its soft underbelly as far as the last financial year is concerned. Brexit is an obvious candidate for blame and while most pundits worry about the affects that leaving the EU will have on British trade, the reciprocity of mutually assured trade destruction is obvious. It is highly unlikely that any trade collapse will take place, but the fear alone has damaged market market confidence in recent months, and this has been bad news for Germany with around one in seven of their cars being sold in the UK. This is not the primary concern however, with news that a collapse in factory orders in December was driven by a nosedive in demand by markets outside of Europe. While it is unwise to speculate – I will do so nonetheless – the Sino–US trade war is yet to be fully resolved and with both parties adopting increasingly protectionist measures, the effect on wider markets has included frigid liquidity and dampened consumer confidence. https://platform.twitter.com/widgets.js

German economy: a nosedive prophesied from Deutsche Bank to Daimler

Today’s data on disappointing unemployment and industrial output figures comes only hours after Deutsche Bank (ETR:DBK) warns that Germany could be heading for another recession. “The start of the German economy into 2019 has been a major disappointment so far.” “The development of several key cyclical indicators is telling us that the German economy is drifting towards recession right now.” https://platform.twitter.com/widgets.js   Vehicle manufacturing firm Daimler (ETR:DAI) then went on to announce that net earnings for 2018 fell over 49% on-year, “For Daimler, 2018 was a year of strong headwinds,” said CEO Dieter Zetsche, presenting his last annual results before handing off to successor Ola Kallenius. He added, “we cannot and will not be satisfied” with lower profit margins.

What is the official position?

Chief Eurozone Economist at Pantheon Macroeconomics, Claus Vistesen, commented on the 1.6% month-on-month decline in factory orders going into December, “Across sectors, weakness in capital and intermediate goods were the primary drivers, especially on the export side to non-eurozone countries. By contrast, new orders for consumer goods rebounded strongly across the board, pointing to a revival in the auto sector towards the end of the year.” “The year-over-year rate was depressed by base effects from a very strong finish to the year in 2017, but the message remains clear: German manufacturing is suffering.” The German Economy Ministry has since weighed in, stating, “The decline in orders in December suggests that the weak phase in industry will continue for now.” “The latest sentiment indicators also point to muted momentum at the start of the year.”

So what are we to think?

With all sincerity it is hard to find anything to be positive about in regard to this news. While innuendos were dropped throughout the course of 2018 that would lead pundits to doubt the steadfast nature of Germany’s economy, any market expert would be telling a lie if they said a German economic decline would not be a worry to other countries. It was forecast last year that a global recession could be on the distant horizon, with currency crises cropping up across developing economies struggling to pay back loans against an inflated US dollar. However, a pincer effect, with a domino of struggling economies both developed and developing, should send alarm bells ringing for policy-makers the world over. Of course, Germany is not the only G8 member facing financial woe, with Italy slumping into another recession after ineffective fiscal and monetary policy from its defiant leadership. With interest rates at near zero percent, the UK especially should fear the ramifications of an international slump. Brexit proceedings have proved quite how incapable our political representatives are at dealing with matters of political significance – so what then, can we expect from a crisis caused by monetary and political forces, when we struggled enough from the last crisis brought on almost exclusively by the greed of financiers?  

Snap Inc q4 figures beat expectations

Nicole Jeary
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1
Snap Inc q4 figures beat expectations
Snap Inc (NYSE:SNAP) q4 figures beat market expectations, causing shares to bounce on Wednesday. The owner of Snapchat said that daily active users were flat in the fourth quarter at 186 million, offering some respite to investors after two quarters of consecutive decline. Analysts had been expecting a fall in users for the final quarter of the year. Chief Executive Evan Spiegel, commented: “We are substantially closer to achieving profitability, as we have maintained a relatively flat cost structure across the past five quarters while growing full-year revenue 43 per cent year-over-year,” Snap Inc has been struggling since its floatation on the New York Stock Exchange in 2017, amid a declining user base, with its share price falling to an all-time low in September. Whilst initially immensely popular, Snapchat users have fallen in recent years amid fierce competition from other social media platforms such as Twitter (NYSE:TWTR) and Facebook-owned (NASDAQ:FB) Instagram. The introduction of the Instagram story feature in particular proved problematic for Snapchat, bearing similarities to its messaging platform. As a result, Snap Inc has failed to successfully differentiate itself from its competitors. Whilst Snap Inc have accordingly attempted to shift their focus away from the App, rebranding as a “camera company”, its other products have not proved as commercially popular. Its first version of Spectacles, a pair of smart glasses that permits video recording, only sold 220,000 pairs. Moreover, various senior officials have departed the firm in recent months. Most recently, the firm’s CFO Tim Stone announced his departure in January, having only joined Snap from Amazon 8 months prior. Human resources chief, Jason Halbert, Vice President of Marketing Steve LaBella and Chief Strategy Officer Imran Khan have all left the company in the last year. Shares in Snap Inc are currently +1.73% as of 12:19PM (GMT), on the back of the announcement.

AstraZeneca treatment for rare disease granted orphan status

Jamie Gordon
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3
AstraZeneca treatment for rare disease granted orphan status
Pharmaceutical giant AstraZeneca (LON:AZN) have announced approval of ‘Orphan Drug Designation’ for their new treatment, for hypereosinophilic syndrome. The news follows last news from the latter portion of 2018 that the pharma juggernaut had developed a series of new cancer treatments, though the company experienced mixed success.

AstraZeneca’s new treatment

The new treatment for hypereosinophilic syndrome has been granted orphan status; this status is granted to medicines intended for the treatment of rare diseases and disorders affecting fewer than 200,000 people in the US, by the Food and Drug Administration. Alongside the US National Institutes of Health, AstraZeneca have carried out a phase 2 clinical trial of a separate treatment for severe asthma, Fasenra, with results expected to be published further into 2019.

Hypereosinophilic Syndrome

According to the US Department of Health and Human Services, Hypereosunophilic syndrome is a rare disease that damages organs in the body. “[It] Refers to a rare group of conditions that are associated with persistent eosinophilia with evidence of organ involvement. Signs and symptoms vary significantly based on which parts of the body are affected. Although any organ system can be involved in HES, the heart, central nervous system, skin, and respiratory tract are the most commonly affected. The condition was originally thought to be “idiopathic” or of unknown cause. However, recent advances in diagnostic testing have allowed a cause to be identified in approximately a quarter of cases. Management varies based on the severity of the condition and whether or not an underlying cause has been identified but generally includes imatinib or corticosteroids as an initial treatment.”

AstraZeneca as a portfolio candidate

The firm’s shares are currently trading down 52p or 0.91% in morning trading, dipping to 5,657p per share 06/02/19 11:06 GMT. Shore Capital analysts have reiterated their ‘Buy’ stance on AstraZeneca stock, while Barclays Capital have reiterated their ‘Overweight’ stance. The company are among other large and reliable British stocks who remain uncertain amid Brexit procedings.  

Shefa Yamim shares climb after technical economic evaluation

Nicole Jeary
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2
Shefa Yamim shares climb after technical economic evaluation
Shefa Yamim shares (LON:SEFA) rose on Wednesday after the company said it had received a technical economic evaluation for Zone 1 of its Kishon Mid-Reach project. According to a company statement, the evaluation revealed that the mine has the potential to process a total of 1.5 million tonnes of gravel over an 11-year mine life. In addition, Shefa Yamim said that the the overburden removed would be around 1.8 million tonnes, with an operating cost budget estimated at $26 (US dollars) per tonne. Avi Taub, Chief Executive of Shefa Yamim, commented on the findings: “We are encouraged by the Technical Economic Evaluation for our Kishon Mid-Reach Zone 1 project which has provided the Company with a solid base case for the development of the Kishon Mid-Reach Zone 1 project. The independent TEE report suggests that the project is at the lower end of the cost curve, placing the costs on a par with comparable diamond producers and at the lower end of the precious stone producers. “For a relatively small amount of investment, the Company will be able to upgrade its new processing plant and machinery, which will double its processing capacity as well as potentially halving the unit operating cost once in steady state operations. I look forward to updating with further developments as we progress towards providing an indicative valuation of the precious stones and trial mining on the Kishon Mid-Reach Zone 1 project.” Shefa Yamim is a multi-commodity gemstone mining exploration company. Its operations are located in Northern Israel. Shares in Shefa Yamim (LON:SEFA) are currently up +6.74% as of 11:21AM (GMT).

Mattioli Woods profits bounce 3.7% with cost cuts

Jamie Gordon
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1
Mattioli Woods profits bounce 3.7% with cost cuts
Wealth management firm Mattioli Woods (LON:MTW) have booked a 3.7% rise in H1 profits on-year, and have attributed this success to cutting costs.

An improved business model

The company recorded below-par revenues but disappointing windfalls were offset by savings in operating costs. The news follows revenue growth in the previous financial year, along with success for the company’s counterparts. Pre-tax profit for the six months through November rose to £5.6 million, with revenue up 2.8% to £29.2 million. Mattioli Woods have stated that its full year profit outlook was in line with expectations. “I am pleased to report another period of sustainable profit growth, achieved against the backdrop of a complex market,” Chief Executive Ian Mattioli said. “As highlighted in our January trading update, revenue growth in the period was slightly lower than expected due to a combination of the group reducing clients’ costs and general market conditions.” “The financial impact of this was more than offset by the realisation of operational efficiencies and other administrative cost savings.” “While there remains uncertainty around Brexit it will continue to impact markets and consumer confidence.” “Our integrated model means we are well-positioned to proactively advise our clients and we anticipate we may see an increased demand for advice once the shape of Brexit becomes clearer.”

Mattioli Woods as a portfolio candidate

The firm have declared an interim dividend of 6.33p per share, an increase of 15.1% on-year. The company’s share price has dipped in morning trading on Wednesday, with shares currently trading down 10p or 1.37% at 720p per share. Shore Capital analysts have reiterated their ‘Buy’ stance on Mattioli Woods stock, after upgrading their investment rating in January.  

Interserve agrees rescue deal with creditors, shares rise

Nicole Jeary
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0
Interserve agrees rescue deal with creditors, shares rise
Interserve announced it has agreed a rescue deal with lenders, sending shares up during Wednesday morning trading. The construction company said that the deal will allow the firm to strengthen its balance sheet. As part of the deleveraging plan, net debt will be reduced to £ 275 million through the issuing of £480 million of new company equity. RMDK will also remain part of Interserve under the deal. with £350 million of existing debt allocated to RMDK. The deal is still subject to shareholder approval. Debbie White, Chief Executive of Interserve, commented: “Agreeing the key commercial terms of the Deleveraging Plan with our lenders, bonding providers and Pension Trustee is a significant step forward in our plans to strengthen the balance sheet. The Board believes that this agreement will secure a strong future for Interserve. This proposal has been achieved following a long period of intensive negotiation and has the support of our financial stakeholders and Government. Its successful implementation is critical to the Interserve Group’s future and all of its stakeholders.” Despite reporting revenue of £3.25 billion in 2017, the company has struggled financially in recent years, leading to a string of profit warnings. As a result, the company underwent restructuring in March of last year. Last year, rival construction company Carillion collapsed, becoming the largest ever trading liquidation in the UK. Carillion’s collapse raised concerns over the financial health of the construction industry, including firms such as Interserve. Shares in Interserve (LON:IRV) are currently +13.20% as of 10:29AM (GMT).
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