Payday lender Wonga has collapsed into administration. Following the collapse on Thursday, the 200,000 customers still owning a combined total of £400 million were told to keep making payments. The Financial Conduct Authority said: “Customers should continue to make any outstanding payments in the normal way. All existing agreements remain in place and will not be affected by the proposed administration.” Wonga has long been a controversial short-term lender, where interest rates rocketed to as high as 5,853 percent before the government capped them at 1,500 percent. A spokesman for the Financial Ombudsman Service said: “We are aware of the recently announced news about Wonga’s administration. Due to the nature of the business, there is no protection offered to consumers under the Financial Services Compensation Scheme (FSCS) in this instance.” “Once the administrators have been appointed, we’ll speak to them urgently to clarify the impact on the cases we have with us and whether we’ll be able to work any new cases brought to us after today. We do not yet know what, if any, funds will be available to settle complaints.” The collapse of Wonga will put almost 500 jobs at risk. The group raised an emergency £10 million from shareholders in August but the surge of compensation claims swung the group into heavy losses. Jonathan Reynolds, the shadow economic secretary, did not express sadness at the company’s administration. “Its business model was exploitative and immoral. Wonga had become a testament to so much that is wrong with our economy – too many people stuck in insecure employment reliant on short-term debt just to keep their heads above water.” “We need urgent action from the government to change this broken model and review the way lending is regulated.” Martin Lewis, the founder of MoneySavingExpert, said: “Normally when firms go bust, the fear is diminished competition. Not here. Wonga’s payday loans were the crack cocaine of debt – unneeded, unwanted, unhelpful, destructive and addictive. Its behaviour was immoral, from using pretend lawyers to threaten the vulnerable, to pumping its ads out on children’s TV.”

Sativa Investments PLC (LON: SATI) has appointed Joseph Colliver FCA as Chief Financial Officer and a Director. Colliver has held past directorships and partnerships in Headlight Vision Limited and Henley Centre Headlight Vision Ltd. With his new appointment at Sativa Investments, he has been granted 3,350,000 share options at 1.5p. Sativa Investments is the UK’s first medicinal cannabis investment vehicle. The company focuses on the production, testing and compliance, research and development, including pharmacology, commercialisation and sales and marketing of Medicinal Cannabis. Sativa Investments also aims to drive the research and development of cannabis products by funding university research grants of medicinal cannabis through its Sativa Foundation. Currently, Sativa Investments has four investments. Canada-based Veritas Pharma Inc., Toronto-based Rapid Dose Therapeutics Inc., UK-based CBD products provider George Botanicals and PhytoVista. Commenting on the company’s new CFO appointment, founder and CEO of Satvia Investments, Geremy Thomas, has said: “With four investments to date and a pipeline of potential investments at varying stages of review, the Company needs an experienced, strategically-thinking full-time finance head.” Medicinal cannabis was legalised in the UK earlier this year. After being advised by the Advisory Council on the Misuse of Drugs, doctors will be permitted to prescribe medicinal cannabis for its therapeutic benefits within months. Products will only be prescribed provided they meet safety standards. Recent studies have shown that cannabis can be useful for the treatment of chronic pain, spasticity, nausea and vomiting in chemotherapy and drug-resistant epilepsy, just to name a few conditions. Forbes have recently recorded that spending on legal cannabis worldwide is expected to hit $57 billion by 2027. North America will be home to the largest group of cannabis buyers, going from $9.2 billion in 2017 to $47.3 billion a decade later. However, the largest growth is predicted to be in the rest-of-world markets. Figures in this area are predicted to rise from $52 million spent in 2017 to $2.5 billion.  

The Competition and Markets Authority has given the all clear to the merger of npower and the retail arm of SSE. Following an investigation, the competition watchdog found that the two firms did not compete closely for customers and few customers switched between the pair. “Our analysis shows that the merger will not impact how SSE and npower set their standard variable tariff [default] prices because they are not close rivals for these customers,” Anne Lambert, chair of the CMA’s inquiry group. The merger of the two groups is expected to be completed in the last quarter of 2018 or the first quarter of 2019. On the results of the CME’s investigation, SSE said: “The planned transaction presents a great opportunity to create a more agile, innovative and efficient company that really delivers for customers and the energy market as a whole.” The Labour party said that the decision by the watchdog was concerning and said the merger could lead to consumers suffering from poor service if the merger led to job cuts. Alan Whitehead, shadow energy minister, said: “Given that both of these companies already struggle to provide good customer service, job losses in customer care as well as other departments must be avoided at all costs.” Theresa May is to introduce a price cap on default tariffs, also known as standard variable tariffs, which will be introduced by the end of the year. This could provide issues for the energy group. George Salmon, an equity analyst at Hargreaves Lansdown, said: “Should the cap be more severe than expected, the new business would face a fresh headwind from day one.” The merger between SSE and npower means the big six has now shrunk to become the big five. Shares in SSE (LON: SSE) are trading at 1.253,50 (1359GMT).  

The gay dating app Grindr has announced plans to go public after approved by parent company Kunlun Group. The Chinese parent company has said that allowing the app to go public will “strengthen” its competitiveness and help business development. In a filing to the Shenzhen stock exchange, Kunlun said: “Grindr’s listing won’t exert a huge influence on the group’s revenues and profits.” “Meanwhile, Grindr can have an individual and direct financing platform which can support its expansion and long-term development.” Grindr has over 27 million users globally and is a popular dating platform for lesbian, gay, bisexual and transgender people. Based in Los Angeles, Kunlun Group bought a 61.5 percent stake in 2016 from the US founders and took full control in January in a $152 million deal. When the app was sold, the founder Joel Simkhai said: “I’m beyond proud of what we’ve built as a team and how Grindr has been able to make a meaningful and lasting contribution to the global community.” “We have achieved our success because of the strength and global reach of our community. I look forward to Grindr and Kunlun’s continued commitment to building tolerance, equality, and respect around the world.” Despite the app being owned by a group based in China, the app is not the most popular gay dating app in the country. The number one position has been taken by the app Blued, which has 40 million users worldwide. The South China Morning Post reported that the timing of the listing will depend on market conditions and regulatory approval. Grindr was the first gay social networking app to launch on the iTunes App Store and is available in 192 countries.  

WH Smith PLC said on Thursday that it expects full-year results to be in line with expectations. The group said its travel business – focusing on mainline railway stations, airports and other travel hubs – continued to “perform strongly” whilst the high street business has come “in line with expectations”. The retailer said: “We opened eight stores in Madrid Terminal 4 in mid-August and have also opened the first of six stores in Rio de Janeiro.” “We now have 286 stores open internationally and we continue to see further opportunities in the international news, books and convenience travel market.” The full results for the year to August 31 will be published on October 11 but in the meantime, WH Smith plan to focus on cost savings and margin improvements for the high street business to increase profits. “We continue to invest in our new store format trials and have developed further our stationery ranges,” the group said in a statement. Neil Wilson of Markets.com said: “As remarked in June, continued underinvestment in the High Street side of the business should not cloud the view that WH Smith is building a strong brand in Travel that has significant room to grow overseas.” “This significantly reduces its exposure to the ailing UK high street – a strategy that increasingly looks like a master-stroke. While high street footfall is coming off, global air travel passenger growth is only heading up, and fast,” he added. Shares in the group (LON: SMWH) are trading up 1.17 percent at 2.076,00 (1312GMT).  

Panasonic has announced plans to migrate its European headquarters from Britain to the Netherlands in late 2018. This is following potential tax concerns related to Brexit. The leading multinational electronics corporation is not the only company set to evacuate London following fears over the prolonged departure from the European Union. CEO of Panasonic Europe, Laurent Abadie, has told Nikkei business daily that the company will move from just outside London to Amsterdam in October. Laurent Abadie has revealed that Panasonic had been debating the move for the past 15 months. Primary concerns include barriers to the flow of people and goods. The electronics giant is followed by other Japanese firms in expressing Brexit fears. MUFG, Nomura Holdings, Daiwa Securities and Sumitomo Mitsui Financial Group have also decided to move their European headquarters out of London. The Japanese ambassador to the UK, Koji Tsuruoka, said earlier this year:

“If there is no profitability of continuing operations in the UK – not Japanese only – no private company can continue operations. So it is as simple as that.”

The Japanese corporations are not alone in their fears. Earlier this year we reported that Airbus may also be forced to relocate. The major UK employer hires 14,000 people directly at 25 different sites across the country including Stevenage and Portsmouth. Instead, Airbus hinted that production may be transferred to North America, China or another European country. In June, Jeremy Hunt branded the relocation of Airbus and other firms as “completely inappropriate threats”. But Airbus and Panasonic are not alone. Earlier this year, the Independent reported that nearly 20 banks have committed to launching European Union hubs in Frankfurt since Brexit. The economy minister for Hesse has expressed confidence that Frankfurt will attract more. 60 firms are yet to decide on additional headquarters in Europe. However, of the 222 large banks, insurers, asset managers and other financial services, over a third are considering, or have confirmed, they are relocating outside the UK to the European Union. Of these banks, JP Morgan have announced up to 1,000 of their bankers working in the City of London are to move to Dublin, Frankfurt and Luxembourg. Though JP Morgan are only relocating 1,000 of their London bankers, some corporations are outright moving their headquarters from the capital. Barclays and Bank of America will move their EU headquarters from London to Dublin. Additionally, Moneygram will move its EU headquarters from London to Brussels. European Medicines Agency will relocate from London to Amsterdam, taking 890 jobs with them, and European Banking Authority from London to Paris. Whilst the foreign secretary, Boris Johnson, was reported to use an expletive when challenged about business concerns over Brexit, more and more corporations are deciding to evacuate the capital.