Bezant Resources announces new mining study, shares rise

Nicole Jeary
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Bezant Resources announces new mining study, shares rise
Bezant Resources shares (LON:BZT) rose on Wednesday after the mining company announced a new study. The firm announced it had commissioned a mining study by Mining Plus to evaluate its mining options in high grade areas at its Mankayan copper-gold project. Laurence Read, Chief Executive of Bezant Resources, commented on the study: “As CEO, I am pleased that we shall be progressing the Mankayan copper gold project following the results of extensive in-house geological and engineering work over the course of the last year. “Our understanding of Mankayan has grown significantly and the potential for exploiting high grade resource areas needs to be independently examined. While the current, 20 Mtpa economic scenario for Mankayan is highly robust and comparable to a series of successful, currently operating, third party projects we believe that there may well be a viable alternate mining system that can be implemented within the Lift 1 area of the existing model. “Mankayan is a significant potential source of long-term copper gold-supply and the results of the new Mining Study may allow Bezant to pursue new avenues for the project if production scenarios, with reduced upfront capital expenditure, can be determined. “Mining Plus is a major, internationally recognised mining services provider who have successfully worked with a host of mining companies to deliver projects into first production and I look forward to working with them.” Bezant Resources was founded back in 1994. The company is listed on the junior AIM-market of the London Stock Exchange. Its assets include the Mankayan project as well as the Eureka Project, both located in the Philippines. Shares rose on the back of the announcement. Shares in Bezant Resources are currently +9.52% as of 11:08 (GMT), as investors react to the news.

De la Rue feels loss of British passport deal as profits fall 36%

Safiya Bashir
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De la Rue feels loss of British passport deal as profits fall 36%
Adjusted profits at De La Rue fell 36% in the six months to 29 September compared to the same period a year earlier. In the first results since losing the contract to make British passports, the company said it has had to strategically review its operations. Revenues increased by 5% to £257.6 million. The group’s contract for British passports, which it has had since 2008 and is worth £400 million, will end in 2019. Replacing the company will be the Franco-Dutch group Gemalto. Martin Sutherland, the group’s chief executive, said: “Over the last six months we have conducted a thorough review of our strategy and market positions. In the light of the UK passport decision, we have concluded that we will refocus our identity business on the supply of higher margin security features and components.” “We maintain a strong order book and pipeline which provides good visibility for the second half of this year and into next year. With good revenue coverage from the group’s 12-month order book of £365 million and based on the orders planned for production and shipment in the second half, we are confident that we will meet our expectations for the full year.” The decision to end De La Rue’s contract was a controversial one. The group employs 600 people at the printing plant in Gateshead. “We have a very skilled, proud workforce in Gateshead and I am going to have to face those workers, look at them in the whites of the eyes and try to explain to them why the British government thinks it’s a sensible decision to buy French passports not British passports,” said Sutherland when the decision was announced earlier this year. “I would like to invite Theresa May or Amber Rudd to come to my factory and explain to my dedicated workforce why they think this is a sensible decision to offshore the manufacture of a British icon,” he added. Shares in De La Rue are trading +5.74% (1058GMT).    

Hammond: All Brexit scenarios will leave UK worse off

Safiya Bashir
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Hammond: All Brexit scenarios will leave UK worse off
Philip Hammond has said that whilst all possible Brexit scenarios will leave the UK worse off economically, the prime minister’s deal is the best option. The Chancellor told BBC Radio 4’s Today programme on Wednesday that after analysing the effects of the proposed Brexit deal, the UK economy will be “slightly smaller”. “If you look at this purely from an economic point of view, yes there will be a cost to leaving the European Union because there will be impediments to our trade,” he said. The deal that will be put to the vote in December will “absolutely minimise those costs.” “The economy will be slightly smaller in the prime minister’s preferred version,” he added. The vote will take place in Parliament on 11 December, where many MPs have said they plan on rejecting the deal. Hammond said that if Theresa May’s deal is voted down, the UK will be in “uncharted political territory”. “We will then have to sit down as a cabinet and a government and decide where to go on the basis of the vote, what we’ve seen in the vote and who has voted in which way because clearly we live in a democracy, parliament is sovereign,” he said. “If parliament makes a decision to reject the prime minister’s proposal, we will have to consider very carefully how to proceed.” “All of the other options have disadvantages and we have to look not only at the economy but also the need to heal a fractured nation. We will not be successful if we remain fundamentally divided and fractured on this issue.” Until the vote, the prime minister will travel to different areas within the UK to persuade MPs and the general public to vote for the deal. She will say during her visit to Glasgow: “We will be free to strike our own trade deals around the world, providing even greater opportunity to Scottish exporters.”

N4 Pharma shares rally after research update

Nicole Jeary
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N4 Pharma shares rally after research update
N4 Pharma shares (LON:N4P) rallied on Wednesday after the firm updated investors on its research findings. The pharmaceutical company said that it had conducted further research regarding its Nuvec delivery system. Adding to previous findings, the company said that upon further analysis of its pDNA OVA results, this revealed demonstrated the immune response observed was “sufficient to have produced strong levels of antibodies specific for OVA.” Last month, N4 Pharma confirmed that findings from its Nuvec product research had revealed a ‘clear adjuvent effect’ to deliver an immune response to mRNA and pDNA OVA antigens. Nigel Theobald, CEO of N4 Pharma commented: “These results are once again another positive step forward for our Nuvec(R) delivery platform. The data now shows Nuvec(R) is capable of producing specific and relevant strong levels of antibodies required for the development of vaccines and cancer treatments. “We will continue to provide updates as we add to our already encouraging data package to aid our commercial collaboaration discussions. The production of a robust data package using the test antigen Ovalbumin provides compelling evidence of the potential for Nuvec(R) to be an effective delivery system for a potential partner’s specific DNA or RNA antigen. ” N4 Pharma is a specialist pharmaceutical firm that develops delivery systems for vaccines and cancer treatment. Shares in the company are currently +28.95% as of 10:23AM (GMT).

Telford Homes reveals 31% jump in revenue

Safiya Bashir
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Telford Homes reveals 31% jump in revenue
Telford Homes has revealed a jump in profit for the first half of the year. The housebuilder reported first-half profits to increase to £10.1 million, an increase of 16%. Total revenue grew by 31% to £129.6 million. Despite the positive results for the first half of the year, Telford Homes said that as a company it has “work to do” in order to meet the full-year targets amid Brexit uncertainty. The group is on track to meet full-year profits of £40 million. “Telford Homes made pleasing progress during the first half of the financial year, despite an increasingly uncertain economic and political backdrop. Our strategic shift towards purpose-built rental homes sold to institutional investors continues to be beneficial to our risk profile and growth potential whilst also being well timed in terms of the changing requirements of our typical customers in London,” said Jon Di-Stefano, the chief executive. “We are committed to our strategy which is built upon a fundamental undersupply of homes in non-prime locations in London and our belief that short-term market sentiment does not alter the long-term structural imbalance between housing supply and housing need. These factors, coupled with our excellent reputation as a trusted build to rent partner and the associated change in our business model, give us the confidence to look forward to more success in future years,” he added. Telford Homes has been shifting to the build to rent over the past three years and has already built 1,750 homes to rent in this period. A survey by the Royal Institution of Chartered Surveyors (RICS) has suggested that Brexit is taking a toll on the property market. Amid Brexit uncertainty, sales are taking longer to complete, house prices are falling and the number of buyers is decreasing. Simon Rubinsohn, the chief economist at RICS, said: “There are a number of themes running through the comments of respondents this month, but uncertainty relating to Brexit negotiations is at the very top of the list followed by references to the confidential remarks made by the Bank of England governor to the cabinet.” “All of this is, not surprisingly, taking its toll on the sales market,” he added. Shares in the group (LON: TEF) are trading +2.17% (1007GMT).  

Intertek set to maintain full-year performance

Dina Caruso
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Intertek set to maintain full-year performance
Intertek Group released a trading statement on Tuesday. The quality assurance provider has said it is set to maintain full-year performance and deliver all 2018 targets. The group has announced that revenue saw a sluggish growth in the 10 months through October. This is as a result of weaknesses in the trade and resources division. Group revenue was recorded at £2,315.7 million, which is up 4.8% at constant rates and 0.5% at actual rates.

Intertek also announced that its Alchemy acquisition was integrating well.

CEO of Intertek, André Lacroix, commented on the results: “Intertek is going from strength to strength, making consistent progress on strategy and performance. We are on track to deliver our 2018 targets of good organic revenue growth at constant rates with moderate group margin progression and strong cash conversion.” “We are benefiting from higher demand from our customers for Intertek global Total Quality Assurance solutions in our Products, Trade and Resources sectors. In the last four months, we have seen broad-based revenue growth acceleration with 4.5% organic revenue growth at constant rates with continuing robust performance in our Products sector and performance improvement in Trade and Resources. The recent acquisitions in high margin and high growth areas performed well.” “The $250 billion global quality assurance industry has attractive structural growth prospects driven by an increased focus of corporations on risk management, global trade flows, global demand for energy, expanding regulations, more complex sourcing and distribution operations, technological innovations, government investments in large infrastructure projects, and increased consumer demand for higher quality and more sustainable products.” “We are uniquely positioned to seize these exciting growth opportunities thanks to our Total Quality Assurance differentiated value proposition. We provide our clients with a superior customer service based on the depth and breadth of our technical expertise, our global network of over 1,000 state-of-the-art facilities in over 100 countries, our industry-leading Assurance, Testing, Inspection and Certification solutions, and our customer-centric culture fuelled by our passionate colleagues around the world.” Tuesday’s other stock market news includes Thomas Cook shares plunging 30% on a profit warning. Additionally, shares in the UK’s leading bakery retailer Greggs jumped after the company announced a positive outlook. Elsewhere, Pets at Home revealed its first-half results, including an 81% decrease in profits. At 16:35 GMT today, shares in Intertek Group plc (LON:ITRK) were trading at +2.28%.

Apple shares slump as Trump suggests further tariffs

Safiya Bashir
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Apple shares slump as Trump suggests further tariffs
Apple shares fell by 1.5% on Tuesday after Donald Trump threatened to impose tariffs affecting iPhones made in China. The US President said today that he may introduce a 10% tariff on iPhones and laptops made in China, which US consumers would be able to stand “very easily”. Shares in the tech giant, which have already fallen 20% this month, dipped on opening. Jose Castaneda, a spokesperson for the Information Technology Industry Council, said that if tariffs are added to Apple products it will affect consumers. “Despite the pain Americans have felt in communities across the United States as a result of tariffs, the president has signalled he wants to continue this short-sighted trade war.” “Imposing a new round of tariffs would cause a shock that will reverberate across America and the globe. It would further threaten global supply chains, leading to higher prices for the electronic devices people rely on every day and even the loss of American jobs.” “It is deeply disappointing the president wants to undermine his opportunity to create meaningful progress before the discussions even begin. ITI urges him to give negotiations a chance and work toward an agreement that resolves this growing trade dispute,” he added. Shares in Apple have fallen over the past few months since the group was the world’s first company to surpass the $1 trillion dollar mark. Microsoft (NASDAQ: MSFT), which was worth $817.3 billion on Monday’s close, was expected to overtake Apple on Tuesday’s opening. Shares in the group (NASDAQ: AAPL) are currently trading -0.49% at 173,76 (1656GMT).  

Pound falls on Trump’s Brexit comments

Safiya Bashir
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1
Pound falls on Trump’s Brexit comments
Following comments by Donald Trump suggesting that the Brexit deal might affect trade with the US, the pound fell to a low of 1.274 against the dollar. The US President said on Tuesday the withdrawal agreement “sounds like a great deal for the EU” and may, therefore, mean that the UK and US might not carry out any trade deals. “Right now if you look at the deal, [the UK] may not be able to trade with us. And that wouldn’t be a good thing. I don’t think they meant that” he said outside the White House. The government has insisted that the UK will be able to carry out deals with countries around the world. Connor Campbell from SpreadEx said: “The pound remained shaken by Trump’s suggestion that Theresa May’s Brexit deal was so favourable to the EU that it might prevent the UK from being able to trade with the US. Against the dollar it dropped half a percent, leaving cable lurking around $1.275, while against the euro it was down 0.4%, sitting just under €1.126.” Theresa May is taking part in a two-week bid in order to persuade MPs and the British public that her Brexit deal is the right way forward. Earlier this week, the director of the Confederation of Business Industry (CBI) has that businesses in Northern Ireland will not be able to cope with a no-deal Brexit and were, therefore, backing the current agreement. Angela McGowan said that leaving the EU without a deal is not an option and “no country in the world will want to invest in Northern Ireland if it is thrown out of Europe.” Many have warned to vote against the deal, with the DUP’s Arlene Foster accusing the prime minister of “giving up” on getting a better deal. MPs will vote on the deal in December.  

John Lewis reports record sales over Black Friday

Safiya Bashir
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John Lewis reports record sales over Black Friday
John Lewis has reported a record week of sales thanks to Black Friday deals. In the week to 27 November, sales increased by 7.7% compared to the year previously. Sales in the fashion and beauty department saw the biggest increase at 13.1%, with the deals pulling customers in. Electrical and homeware sales were up by 6%. John hailed it as the “biggest sales week in our history” “While it is encouraging to see headline retail sales growth strengthen in November after a weak outturn in October, the quarterly survey continues to paint a gloomy picture of the sector. Business sentiment remains poor, investment intentions are flat, and headcount continues to decline,” said Anna Leach, the CBI head of economic intelligence. Sales in Waitrose were not as promising as the department store. Sales of non-food items fell by 6.9%, whilst food sales were down by 1.6%. However, in the run-up to Christmas shoppers did splurge on mince pies and mulled wine, sales were up 43% and 17% respectively.    

Brexit Scenarios: What happens next in Westminster and the markets?

Nicole Jeary
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Brexit Scenarios: What happens next in Westminster and the markets?

After months of back and forth between Brussels and Downing Street, a withdrawal agreement has finally been negotiated paving the way for a number of Brexit scenarios.

Just this week, EU leaders approved the proposed deal, after concluding that it proved “best and only deal possible”.

However, for Theresa May, the uphill battle continues, as in the coming days, she seeks to convince MPs to back her Brexit deal.

As well as traditional opposition from Labour, the SNP and DUP to count a few, May also has to win over her own party, with the Conservatives proving more divided on the issue of Brexit than ever before.

What is Theresa May’s deal?

The 585-page withdrawal agreement document centres around three key issues.

1) Citizens’ rights

The deal protects the rights of over 3 million EU nationals residing in the UK, as well as the more than 1 million UK citizens living in EU countries.
Theresa May wanted to limit the protection to those citizens that had arrived prior to 29 March 2019, however, the final deal will include the transition period, which may last until as long as 2022.

2) The UK’s bill

The deal also deals with settling the amount that the UK needs to pay the EU as part of withdrawal. The UK’s exit bill is set to be around £39bn to cover its contributions to the European Union until 2020.

3) Irish border

The most contentious issue however, has proved the question of the Irish border. Under the proposed agreement, the so-called ‘backstop’ will be enforced should no customs arrangement be reached between Brussels and Downing St by the end of the transition period. The backstop will mean that the whole of the UK remains in the customs union, with Northern Ireland remaining within the single market.

Here are some of the possible Brexit scenarios that may emerge in the coming weeks:

Parliament approves the deal

On the 11th of December, Parliament is set to vote on the deal proposed by Theresa May.

Should the deal be approved, it will be enforced as it is – an outcome the PM will certainly be pushing for in the next few weeks.

Alternatively, MPs may approve the deal alongside suggesting some additional amendments, which would mean another round of re-negotiations.

Conversely, If MP’s vote to outright reject the deal, a range of potential scenarios could arise, meaning uncertainty surrounding Brexit is only set to worsen.

If parliament were to pass May’s deal the likely scenario would be a rally in the pound and a mildy negative decline in the FTSE 100. The deals avoids much of the widely feared hard Brexit the market has reactive negatively over the past 18 months.

A strong negative correlation between the pound and the FTSE 100 is likely to see London’s leading index underperform as the pound embarks on a relief rally.

Re-negotiations

If MPs reject the deal or recommend certain amendments, the PM may have to head back to Brussels to re-negotiate.

This option however, seems unlikely given that EU leaders have already accepted the deal.

An attempt by May to return to Brussels to thrash out a new deal will not be taken well by the market. Donald Tusk has said it was the current deal or no deal meaning May is likely to be unsuccessful leading to the sharp decline in the pound and a wider risk off move in markets.

Vote of no confidence

Should May fail to convince MPs, this may trigger a vote of no confidence.

Thus far, Jacob Rees-Mogg has already encouraged Tory MPs to send letters to trigger a leadership challenge. At least 25 MPs have submitted letters, including former London Mayor candidate Zac Goldsmith.

If the vote of no confidence proves successful, this will trigger a leadership contest within the party, but this may not necessarily lead to a general election.

However, if May survives the vote, a leadership challenge cannot be mounted against her for another year.

Whilst it may prove difficult to survive such a challenge, anything is possible. Jeremy Corbyn famously stayed on as Labour leader despite having lost a vote of no confidence back in 2016.

A Vote of no-confidence opens the door to an array of market reactions, all of which likely to be negative for sterling apart from a quick decision for doubtful second referendum. The initial reaction to a no-confidence will ignite fears of No-Deal and potentially a general election.

General Election

In a brave move, Theresa May could opt to call a general election herself, in a bid to secure backing from the general public to push through her deal.

Given her markedly lacklustre performance during the 2017 election, campaigning is not necessarily her forte, proving an equally unlikely option.

Alternatively, Labour could also force a general election. According to the Fixed-term Parliaments Act, following a successful no confidence motion, the opposition would also be granted two weeks to form an alternative government. Accordingly, Labour could opt to form a grand coalition with SNP, Green and Lib Dem MPs. If however, they prove unable to do so, a general election could be triggered.

A second referendum

Alternatively, The Prime Minister could turn directly to the people, through the means of a second referendum.

The second referendum may be simply vote on the specificities of the deal, or it could, controversially, also include an option for remain.

Nevertheless, both Theresa May and Jeremy Corbyn have repeatedly dismissed talks of a second vote.

A second referendum is likely to prolong or reduce any negative impact to the UK leading to strength in sterling in the short term.

A no-deal Exit

If the Parliament votes down the deal, the UK could also come crashing out of the EU without a deal.

If this happens, there would no longer be a transition period. Businesses would have to act immediately to address the changes that would arise as a result of withdrawing from the EU. This uncertainty would be particularly damaging for the UK economy.

The Bank of England Governor, Mark Carney, has repeatedly warned on this outcome, suggesting it could be as damaging as the 2008 financial crisis.

A no-deal exit would cause the most uncertainty and lead severe volatility in sterling, the FTSE 100 and UK government bond market.

In a no-deal scenario one would expect the pound to retest some of the lowest levels since the vote to leave the EU.

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