Nakama shares (LON:NAK) rallied on Tuesday morning after the company reported a profit in its latest half-year results. The company, which specialises in recruitment, reported a net fee income of £2.7 million, the same figure posted back in 2017. Permanent placement revenue also remained flat at £1.7 million. Meanwhile, contractor revenue dipped slightly to £6.3 million, compared to £6.5 million reported in 2017. Nevertheless, margins were improved following a cut in headcount of 23% to 57. Consequently, pre-tax profits came in at £186,000, an improvement from last year’s loss of £437,000. Andrea Williams, CEO of Nakama Group, commented: “As the first phase of our turnaround plan starts to bear fruit, we are very pleased with the results of the first half of this financial year. As we have committed to focusing our efforts on core markets, we have had to implement changes across most of our business units, early results are promising.” “Whilst the NFI has not seen any significant changes from the same period last year we have created a more focused and lean operation and are pleased to show a return to profitability in H1 2018. Having posted a loss before tax of GBP437,000 in H1 2017, I am pleased with the improvement seen this year to date.” “Overall headcount has decreased and whilst we expect this to reduce further in the short term, as we move into the next phases of our turn-around plan, we expect to see headcount increase as we progress through H2 and into the next financial year.” “This is a positive start to our turn-around plan and I would like to thank all my colleagues for their hard work and commitment to the business. I would also like to thank our candidates and clients for their continued support across our key markets and to our supportive shareholders.” Nakama is listed on the London Stock Exchange. The recruitment firm has offices both in London and Asia. Shares in the company are currently trading +25.02% (1121GMT).

Scapa Group announced its Interim Results for the six months ended 30 September 2018 on Tuesday. The group is a global bonding products and adhesive manufacturer and supplier. Following the announcement, shares in the group dropped by over 7.5% this morning. Pre-tax profit for the six-month period dropped to £9.7 million as revenue dropped 3.4% to £140.7 million. Additionally, trading profit increased 2.4% to £17.1 million and trading profit margins continued to improve to 12.2%, up from the 11.5% figure in 2017. Adjusted earnings per share remained constant at 8.3p, unchanged from 2017. Moreover, basic earnings per share dropped to 4.3p from 7.5p in 2017. The results also reveal a net debt of £5.2 million, excluding the £31.4 million paid for the acquisition of the Systagenix manufacturing facility.

Scapa provides its tape solutions to a variety of different sectors.

These include healthcare, electronics, consumer, industrial, energy and automotive. Commenting on the results, chief executive Heejae Chae said: “The first half has delivered a solid trading performance and continued good progress in the transformation of Scapa from an industrial tape company to a group with two businesses that are global and market leaders. The Industrial business is one of the leading global tape companies with strong profit margins and cash flow. The Healthcare business is now a world-leading strategic turn-key partner to major global healthcare companies.” “The acquisition, by way of a technology transfer, of the R&D and manufacturing assets of Systagenix and the exclusive five-year development and supply agreement for Systagenix advanced wound care products to Acelity is a milestone in Scapa’s development, completing our Healthcare journey from a roll stock supplier to a fully integrated healthcare company with extensive technologies and capabilities in the markets we serve. We have now completed three technology transfers in the last twelve months with an aggregate annualised revenue exceeding £40m. We believe that further opportunities to partner with our healthcare customers exist as the medical device sector undergoes disruption.” Whilst the macro environment remains challenging, we anticipate the profit for the year will be in line with expectations, excluding the impact of the Systagenix healthcare transaction. This transformative transaction is expected to be modestly earnings dilutive in the current year and materially accretive from FY20 onwards.” In addition to Scapa, Bonmarche and easyJet also made stock exchange announcements outlining their half-year and final results respectively. At 10:54 GMT, shares in Scapa Group plc (LON:SCPA) dropped by 7.63%.

Bonmarche has revealed on Tuesday that its first-half profits nearly halved in the 26-week period to 29 September 2018. During the period, underlying profit before tax fell to £2.3 million from £4.2 million. Additionally, revenue was recorded flat at £97.9 million. Combined like-for-like sales declined by 1%. Moreover, online sales increased by 28.9% and store only like-for-like sales dropped by 4%. Online sales grew to account for 12% of total sales. The results also reveal an interim dividend of 2.5p per share, which remains unchanged from a year earlier.

Bonmarche’s results blame the wider market climate to explain the challenges it experienced during the period.

Despite stores experiencing challenges, almost all of them remain profitable. The company is not the only high street name to see its profits hurt by gloomy trading. In September, John Lewis plc reported a 99% decrease in its profits in the six months to 28 July, coming in at a mere £1.2 million. Additionally, redundancies at the department store were up by 289% compared to the previous 12 months. Commenting on the results, Chief Executive of Bonmarche Helen Connolly, said: “Whilst store trading has been impacted by the general weaker consumer sentiment and footfall seen across the market, we have continued to improve our proposition, particularly our digital capabilities and with a broader, modernised product offer, which is reflected in our strong online performance. We remain focussed on exploiting the opportunity afforded by the increasing demand for online shopping, and are encouraged by customers’ responses to new ranges such as denim, leisurewear and resortwear.” “Providing that sales during the key Black Friday through to Christmas trading period meet expectations, the Board maintains the guidance published in September, being that the underlying PBT for the Group for FY19 will be £5.5m.” “Despite the challenging market, the health and fundamentals of the business remain strong and the Board remains confident in the strategy and in Bonmarché’s long-term prospects. Accordingly, the Board has declared an interim dividend of 2.5p per ordinary share, in line with last year’s interim dividend. The Board’s intention at this time is that the total dividend in respect of FY19 will be maintained at 7.75 pence per share, in line with FY18.” At 10:01 GMT today, shares in Bonmarche Holdings plc (LON:BON) were trading at +0.74%.

Since September, we have seen Rome play what can only be described as a calculated chess game with Brussels. The moves being made by both sides are unprecedented, and the conflict over Italy’s budget remains unresolved. Whilst Brussels have turned their attention to the Brexit-induced chaos veiling the UK, conflict with Rome remains on hold. The markets also remain governed by Brexit with the GBP crashing against the EUR and struggling to hold above 1.2800 against the USD.

What happened?

Italy’s coalition government, formed earlier in June, unites the anti-establishment Five Star Movement and the hard-right League. The coalition government made an overnight agreement to set forth a budget deficit next year equalling 2.4% of Italian GDP. This figure was well above the country’s Finance Minister’s recommendation of 1.6%. After some attempts to compromise, Italy submitted its final budget with only slight revisions of the original draft rejected by the EU. Until now, the Italian government has refused to give into demands from Brussels to lower its excessive spending targets and optimistic growth estimates.

Why did this agitate the markets?

The budget disrupted the financial markets for several reasons. Firstly, the Italian economy is the third largest in the Eurozone following Germany and France. Despite its size, its debt stands at 131% of national output, making government debt second to Greece. Next, its banking system is facing deep fragility after two decades of stagnated economic growth. The yield on 10-year government bonds rose above 3% and the Milan stock exchange suffered. Indeed, the FTSE MIB was at its weakest level in 18 months. Moreover, the flat quarterly reading in the third quarter was the weakest figure since the fourth quarter of 2014.

Why did Italy’s budget prompt EU backlash?

Rome’s deficit plans simply breach rules on government borrowing. The 2.4% figure may be below the EU’s deficit limit of 3%, but it remains far too high for a country whose debt is as big as Italy’s. Under the current budget plan the structural deficit would rise which goes against EU regulations.

“The enemies of Europe are those sealed in the bunker of Brussels,” said vice prime minister Matteo Salvini.

What happens next?

On Wednesday, the European Commission is expected to announce that Italy’s budget breaches EU fiscal rules in a report. This is expected to take place when it issues its opinions on draft budgets in the Eurozone. The Austrian Finance Minister, Hartwig Loeger, has demanded a “clear response from the commission this week”. The Austrian Finance Minister isn’t the only one to express concern. Dutch Finance Minister, Wopke Hoekstra, shared his concerns: “We all are worried about the existing situation,” “This is a matter that not only involves Italy but involves all of us because in the end we are a high-trust society and it’s imperative that the commission does what’s in the interest of all the different European countries.” Italian Finance Minister, Giovanni Tria, has tried to diffuse the tension saying: “We are talking about deviations that are not so huge, so I saw we need to bring the discussion back to reality.” “The discussion goes on. Obviously, the plan of the government doesn’t change, but there’s the intention to carry on the discussion”. On this remark, the yield on Italian benchmark 10-year bonds increased to 3.56%, the highest in over three weeks. Could Italy’s government be a bigger threat to the Eurozone than Brexit? At 10:40 GET, the FTSE MIB (INDEXBIT:FTSEMIB) was trading at -0.68%.

EasyJet announced its final results on Tuesday morning for the year ending 30 September 2018. Revealing a 43% increase in proposed dividend, the low-cost airline has had a successful year. Annual profit grew in-line with expectations. Indeed, reported profit before tax increased to £445 million, up from the £385 million figure in 2017. This was supported by a record number of passengers flying with the airline.

The results show that 88.5 million passengers flew with easyJet this year.

This is up by 10.2% from 2017, with a record load factor of 92.9%. From January the airline had been experiencing strong revenue and passenger growth, with shares rising 5%. Moreover, the results also reported a proposed dividend of 58.6p. In 2017 the proposed dividened was at 40.9p. Additionally, with the chaos flyers have experienced with easyJet’s rivals, Ryanair, it is no wonder passenger intake grew in this period. Likewise, in September, EasyJet expected strong profits from the Ryanair strikes.

Headline cost per seat excluding fuel was up by 5.3% to £43.43.

This is as a result of the airline’s expansion into Tegel, higher levels of disruption and crew cost inflation. Commenting on the results, easyJet Chief Executive, Johan Lundgren said: ” easyJet has delivered a great performance during the year, growing headline profit before tax by 41 per cent, once again flying a record number of passengers at our highest ever annual load factor. The integration of new operations at Tegel has also progressed well and our brand consideration in Berlin has grown strongly. Our financial success and increasing customer loyalty demonstrate the resilience of our operations, the underlying strength of our business and our unrivalled customer experience. “Our strategy continues to ensure we are well positioned for the future. We have made considerable progress on our new initiatives in holidays, business and loyalty, which will enable us to grow profitably. While disruption continues to be a major challenge for the industry, we are investing in resilience to help to mitigate the impact on our customers. “Forward bookings are solid, with 50% of seats sold in the first half, in line with the prior year. We are confident in our positioning for the future and are focused on driving future returns, positive free cash flow over the longer term and maximising our headline profit per seat as we continue to deliver value for our customers and shareholders.” At 08:45 GMT, shares in easyJet plc (LON:EZJ) were trading at -2.98%.

The whistleblower who was involved in the money-laundering scandal at Danske Bank has claimed he was offered money to keep silent. Howard Wilkinson revealed at a Danish parliamentary hearing on Monday that Danske Bank and another European lender that he is refusing to identify, attempted to silence him. “We are now here at the back-end of 2018 talking about dirty money from 2007 to 2015, there is no chance in the world… that any of that money is ever going to be tracked down and that any criminals lose a single cent,” he told MPs on Monday, speaking for the first time since the scandal emerged. It emerged earlier this year that thousands of suspicious customers were responsible for €200 billion (£180 billion) of transactions over the past nine years. This is thought to be the largest money-laundering scandal in history. Nienke Palstra, at campaign group Global Witness, said: “Europe has a major money-laundering problem.” “Until we see senior executives held fully accountable for criminal wrongdoing and serious fines for the banks involved, this kind of scandal will continue for decades to come.” Since the scandal emerged, there are enquiries underway in Denmark, Estonia, the UK and the US. Former chief executive, Thomas Borgen, has since resigned. In his resignation statement, Borgen said that the report concluded he had “lived up” to his legal obligations. Jesper Nielsen is Danske Bank’s interim chief executive and has encouraged anyone that might have any information about the scandal to come forward to the authorities. Shares in the lender (CPH: DANSKE) are trading -0.99% at 135.45 (1601GMT).

Grant Thornton has appointed a new chief executive after the former boss Sacha Romanovitch was ousted. The UK audit firm has announced Dave Dunckley as the group’s new chief executive. Romanovitch, who was the first female to run a big City accountancy firm, left Grant Thornton in October after an anonymous memo criticized her leadership skills and accused her of a “socialist agenda”. At the time of the memo’s release, Romanovitch told the Guardian: “A small cadre of partners will find it hard we are making decisions that will depress profits in the short term but will help profits in the long term.” “If profits get unhinged from purpose it might not hurt you now, but it will come back and bite you on the bum,” she added. On her departure, the CEO who capped her own salary, said: “It has been a privilege and an honour to lead this firm. I am proud of what we have achieved in the market, with our people and with our clients, breaking the mould in so many ways.” “We have attracted so many talented people and great clients to our firm due to our purpose and what we stand for.” Romanovitch will be replaced by Dunckley, who has been with Grant Thornton since 1998 and has been a partner since 2007. A spokesperson from the UK’s fifth-largest audit firm has said that the 200 partners employed at the group are “overwhelmingly in favour” of his appointment. “Our brand is the strongest it has ever been, and we will use this to continue to speak out on big themes that impact our industry and society, driving profitable commercial growth whilst ensuring that we continue to have a strong social conscience,” said Dunckley. Grant Thornton carries out the audits for Patisserie Valerie, which almost collapsed last month.  

New figures from Rightmove have shown UK house prices to fall by over £5,000 in the past month. According to the website’s survey, prices have fallen in November at the fastest rate since 2012. Asking prices have fallen at an average of 1.7%, with the fastest falls occurring in London in the south of the country. The typical asking price fell in London by £10,793 and by £8,647 in the south-east. Miles Shipside from Rightmove said: “Seven years ago price rises started rippling out from the capital into the commuter belt in the South East. That ripple effect has now been reversed, with some of the London market price readjustment reverberating out into the commuter belt.” “Higher-end, former hotspot towns are now among the biggest annual fallers with Rickmansworth (-7.1%), Esher (-6.4%) and Gerrards Cross (-6.0%) now cold spots following price rises of nearly 40% over the seven preceding years.” According to Rightmove, sellers are lowering house prices in the run-up to Christmas in order to lessen the pre-Christmas “buyer humbug” effect. Ahead of Christmas, house prices are likely to remain subdued. However, Shipside remains positive for growth. “With the supply of new-build houses remaining tight, a low interest-rate environment combined with near record employment, and average wage increases now rising faster than both CPI inflation and average property prices, the underlying fundamentals for a stable property market remain sound,” he said. Sarah Coles from Hargreaves Lansdown said that potential remained from quick buyers. “The property market hates uncertainty, so regardless of what happens next in Brexit terms, buyers may lose some of their enthusiasm, sellers may be reluctant to put their homes on the market, and we could see continued sluggishness in the market,” she said. “It’s a buyers’ market, so you should be able to get the kind of discount that shields you from the risk of further drops in the market.”