Ticketmaster plans to close its two controversial resale sites, GetMeIn and Seatwave.
The decision came after mounting criticism that the secondary sites had become a target for “professional sellers”, who would sell tickets at huge markups.
Ticketmaster, which is owned by Live Nation (NYSE:LYV), said the platforms would be replaced with a fan-to-fan exchange, selling tickets at face value or lower.
“We know that fans are tired of seeing others snap up tickets just to resell for a profit on secondary websites, so we have taken action,” commented Andrew Parsons, head of Ticketmaster UK.
From today, there will be no new events listings on Get Me In or Seatwave.
However, the sites will continue to operate until October in the UK and Ireland, and closing later in the year for the rest of its European operations.
Sellers and Fans will still be able to re-sell tickets on rival platforms such as Viagogo and Stubhub, which is owned by Ebay.
Last November, the offices of both companies were raided by the Competition and Markets Authority (CMA), as part of its investigation into suspected breaches of consumer law.
The Society of Ticket Agents and Retailers welcomed the decision by Ticketmaster, commentating that ticket buyers would “have another safe and trusted place to resell their tickets”.
Shares in Live Nation are currently trading +0.12 percent as of 11.23 (GMT).
House prices in England and Wales have fallen for the fifth month in a row, according to new data.
Figures by Your Move showed an average fall of 0.2 percent over the month of July to £302,251. House prices are still 1.6 percent than the same period last year.
Despite the average fall, cities including Leicester recorded fast growth. Regions including the West Midlands recorded growth whilst the South East and East of England grew at a slower rate of 0.5 percent.
The City of London saw the biggest drop and was down 19.4 percent. Hammersmith and Fulham, and Southwark, were both down 11.7 per cent.
The prices in Kensington and Chelsea were down 1.9 percent on an annual basis to £1,765,033 and remain London’s most expensive boroughs. The cheapest borough is Barking and Dagenham, where the average price of a property is 308,547.
The average price of a property in the capital is currently £625,529.
While the Bank of England raised interest rates in August, it is not yet known how it will affect the housing market.
When announcing the rise of the UK interest rate, the bank’s governor Mark Carney said: “Rates can be expected to rise gradually. Policy needs to walk, not run, to stand still.”
“There are a variety of scenarios that can happen with Brexit … but in many of those scenarios interest rates should be at least at these levels and so this decision is consistent with that.”
“In those scenarios where the interest rate should be lower, well then the MPC which meets eight times a year would, I’m confident, take the right decision to adjust interest rates at that time,” he added.
House of Fraser has been bought by Mike Ashley’s Sports Direct (LON:for £90m.
Having earlier announcing its was going into administration the department store was in dire straits after a potential Chinese buyer pulled out.
Had Sports Direct not swooped in, 17,500 jobs were at risk of being lost.
In addition, Mike Ashley was at risk of taking a hit on an existing 11% stake in House of Fraser.
Sports Direct also has a stake in Debenhams and now has a significant exposure to the UK high street.
Sports Direct said in a release:
“The group has acquired all of the UK stores of House of Fraser, the House of Fraser brand and all of the stock in the business.”
Sport Direct has been in a bullish mood recently with House of Fraser adding to a recent acquisition of shares in Iconix Brand Group. Iconix Brand Group is a predominately US facing group with brands such as Lee Cooper, Echo, Rocawear, Zoo York and Umbro.
Sports Direct share fell on Friday morning trade, down 0.7% to 404p.
UKOG plc (LON:UKOG) has found support over the past week after a significant drop.
UKOG plc operates a number of licenses in the south of England, one of these being the famed Gatwick Gusher.
Having hit closing highs of 2.50p in July, the share price has fallen back to support at 50% Fibonacci Retracement of a month long rally which saw the price rise from just under 1p to an intraday high of 2.9p.
Support in the UKOG plc share price was triggered by an update last week on the progress of flow testing in the Weald Basin.
The firm said it had achieved flow of a stable implied equivalent daily rate of 401 and 414 barrels of oil per day.
The comply said further tests are to start in the foreseeable future.
CEO Stephen Sanderson commented on the results:
“HH-1 continues to deliver positive results that exceed the 2016 Portland test outcomes. The excellent short-term high rate test results, combined with pressure build up data, provide further confidence that the next phases of the Portland test can deliver both an optimal sustainable long-term flow rate and deliver the primary objective of confirming the Portland’s commercial viability.
Whilst the potential future near-term cash flow from the Portland is very important to UKOG, we should not lose sight of the significance of the potential prize that lies in the underlying primary Kimmeridge objective, the long-term testing of which will follow directly after the Portland programme.
Following our readmission to AIM as an operating company, a major corporate milestone, we are also delighted that Allen Howard has been appointed as non-executive chairman and Nicholas Mardon Taylor has joined the board as a non-executive director. Nicholas’ depth and breadth of financial experience in both oil and gas and other sectors will be a highly valuable addition to the Company.”
Shares in UKOG changed hands at 1.8p in Friday morning trading.
House of Fraser has announced it will be calling in administrators after recent talks failed to secure a buyer.
The department store is the latest casualty of a shift in consumer trends that has ravaged the UK high street.
House of Fraser had been in talks with a Chinese company to secure the funds required to save the business but these proved fruitless.
Hopes were raised when it was reported Mike Ashley’s Sports Direct would provide an injection of cash but these have also fizzled out despite Sports Direct having an 11% stake in House of Fraser.
The failure to secure solvency puts 17,500 jobs at risk.
CEO Alex Williamson said “We are hopeful that the current negotiations will shortly be concluded. An acquisition of the 169-year-old retail business will see House of Fraser regain stability, certainty and financial strength.”
Ernst & Young have been appointment as administrators and will continue to explore the sale of the store or assets.
UK Retail Sales
The failure of major high street brands isn’t so much a signal of a weakening UK economic picture but more a change in consumer habits.
Broad UK retail sales are robust with a year-on-year rise of 2.9% in June and 4.1% in May.
Companies such as House of Fraser have run in trouble due to the fact much of this spending is now taking place online and the combination of both the failure to adapt to this through seamless online shopping experiences and high overheads demanded by the rental value for large department stores, has taken its toll.
The failure of House of Fraser, BHS, Maplins, Toys R’ Us, and Poundworld and the destruction of the share prices of Mothercare, Next, Card Factory and Marks and Spencer has been a long time coming.
Consumers have been long shifting their purchasing online and these groups were slow to increase their presence losing out of companies such as ASOS, Boohoo and Amazon.
Snap Inc (SNAP:NYSE) have seen their share price dip as figures for the second quarter reveal that their Snapchat app has lost over 3 million daily active users.
The results come after software updates this year, which have changed the format of the app and driven some users away.
While the company were able to defy analysts with revenues of $262 million for Q2 – up $80 million on-year – they were unable to cancel out the six percent share price dip that followed the announcement of lost users.
Chief executive of Mindshare’s Worldwide Central, Nilufar Fowler, said, ”The drop in Snap’s share price will almost certainly be linked to the decline in DAUs – a loss of 3m daily users since Q1. The loss is relatively small, and it’s certainly too early to say that it signals a trend, we’ll have to wait and see whether the decline is repeated in the next quarter’s results.
“It’s unlikely that any single factor could be blamed for the decline in DAUs – more likely is a combination of factors, including the impact of GDPR in Europe, a potential decline in overall social media usage, the negativity around the infamous redesign, and the plateauing growth of overall social media users.
“It’s likely that some of those lost DAUs will be spending more time on Facebook-owned Instagram, which has introduced Instagram Stories and IGTV to compete directly with Snap Stories.”
On the same day, Saudi Arabian Prince Alwaleed bin Talal snapped up a 2.3% stake in the company for $250 million. Following the news, Snapchat’s share price recovered from Wednesday’s dip, however, it fell 6% again in the first hour of trading this morning.
Across the UK, rent prices have risen 1.3% to an average of £937, with Northern Ireland having seen the sharpest increase, up 4.5%.
Such a dramatic trend looks set to continue across the board, with the 1% increase per annum soon expected to look like a fond memory. According to the Royal Institute of Chartered Surveyors’, a lack of supply in new housing will prompt prices to inflate by around 15% over the next five years.
An RICS spokesperson has said, “the shortfall in the supply pipeline is more visible over the medium term”.
The news comes after the UK property market experienced one of its least active spells in recent years, with prices stagnating after a period which demonstrated growth over the course of a few years. The RICS have described recent market conditions as “broadly flat”, with the greatest liquidity being seen in Scotland, Northern England and Northern Ireland.
The organisation then warned that rents are set to rise by almost 2% in the coming year, with the most severe changes taking place in the East Anglia and the South-West of England.
In addition to a shortfall in new housing, the RICS have attributed the forecasted rent price rise to changes in the buy-to-let market. The rental market has narrowed in recent months, with this trend set to continue in the wake of Tory taxation policy, which has caused smaller scale landlords to leave the market.
The RICS have said that the lack of supply is “symptomatic of the shift in the mood music in the buy-to-let market in the wake of tax changes which are still in the process of being implemented”.
While tax relief has been reduced for buy-to-let investors, stamp duty on second homes has increased.
“The impact of recent and ongoing tax changes is clearly having a material impact on the Buy to Let sector as intended. The risk, as we have highlighted previously, is that a reduced pipeline of supply will gradually feed through into higher rents in the absence of either a significant uplift in the Build to Rent programme or government funded social housing.”
“At the present time, there is little evidence that either is likely to make up the shortfall. This augers ill for those many households for whom owner occupation is either out of reach financially or just not a suitable tenure.” Said Simon Rubinsohn, RICS Chief Economist.
Abdul Choudhury, RICS Policy Officer then added, “Ultimately, Government must consider the impact of its policies, and if the wish is to move away from PRS, it must provide a suitable alternative. If they wish to improve PRS, as we have suggested by professionalising through regulation and the PRS code, there is justification to reconsider the approach taken to tax.”
Last week, the Bank of England’s monetary policy committee voted unanimously to raise interest rates from 0.5% to 0.75%, their highest level since 2009. It has been suggested that the rise will help to slow the rate of inflation alongside being a means to reduce unsecured credit, which recently reached over £300 billion. However, it is a positive sign that the overall fundamentals of the economy remain strong.
But what does this mean for you? The rate rise will result in mixed implications for businesses and investors. For investors, this will depend on their individual scenarios: for example, holders of variable rate mortgages will instantly see their monthly payments increase. It’s also plausible that savings accounts will increase their rates, but banks are under no obligation to do so. Within the context of Crowd2Fund returns, a 0.25% increase is negligible in the increased returns offered in comparison to a savings account.
The effect this will have on businesses is that it will cost more to borrow from incumbent financial institutions; in fact, a number of business representative groups have already released public statements saying that they believe the rate rise will put too much pressure on the economy.Impact for InvestorsVariable Rate Mortgage Holders
Variable rate mortgage holders are set to lose out as many well-known providers put up their fees within 24 hours of the rates rise announcement. This will put a squeeze on household finances— mortgage holders may want to consider their investing and savings strategies in order to make up for this shortfall.Banks May Not Pass on the Rate Increase to their Customers
There is no guarantee that the banks will pass on the increased rate to savers. During the last rate rise in November 2017, which was also 0.25%, most banks did not pass on the full increase to savings customers. At present, most of the large banks are still reviewing whether to increase the rate on their current and savings accounts.Switching Funds to Innovate Finance ISAs (IFISAs)
Currently, the best buy easy-access savings account only pays 1.4% APR, with the best performing easy-access cash ISA offering a slightly lower APR of 1.35%. Even if the full rate rise is passed on, these options will generate a return of just 1.65%, which is lower than the current rate of inflation (2.4%).
Savvy investors with money tied up in savings accounts or cash ISAs should use this as an opportunity to consider investing or transferring these funds into an IFISA facility, such as Crowd2Fund, which generates average APRs of 8.7% per annum (before fees and bad debts).BusinessesHigher Borrowing Costs?
There are no two ways about it, this rise will require companies to pay more for borrowing money. Several business trade organisations have already spoken out against the rate rise, PRESS RELEASE Crowd2Fund Response to BOE rate rise expressing concern. The Institute of Directors (IOD) have accused the Bank of England of “jumping the gun,” while the The British Chambers of Commerce criticised the move as “ill-judged against a backdrop of a sluggish economy.”The Cost of Borrowing Criticised
The Federation of Small Businesses (FSB) were concerned prior to the rate rise that interest rates were already too high for SMEs. From their own research they found that “42% of small firms describe new credit as “unaffordable.”” FSB chairman Mike Cherry commented on the increasing importance of access to credit for small businesses by saying, “we need to see a fundamental shift in the UK’s small business culture. Too many firms are reluctant to borrow and realise their full growth potential.”
Yet this may be due to small businesses not being able to access the cheap credit from the banks anyway, due to cautiousness from the banks with enhanced regulations since the collapse of the banks in 2008. Therefore, alternative lending is an invaluable source of capital for small businesses.Opportunity to Seek P2P Loans
The rate rise creates an opportunity for businesses struggling to access debt from traditional banks to consider P2P finance. Alongside simple and more holistic credit decisions than incumbents, this has many other benefits. In somem, as with Crowd2Fund, one can have fast access to finance— with a range of different finance products to choose from— while building a community of brand advocates.For further information visit Crowd2Fund
The FTSE 100 fell on Thursday as stocks going ex-dividend wiped a substantial 39 points from the index.
Stocks that moved a trade without eligibility for upcoming dividends included AstraZeneca (LON:AZN), Rio Tinto (LON:RIO), BP (LON:BP), BT Group (LON:BT) and Royal Dutch Shell (LON:RDSB).
Tui AG (LON:TUI) was the biggest decliner in the FTSE 100 after the travel company announced a 6% increase in revenue but gave a cloudy outlook for the rest of the year. Shares in the group were down over 9% in early trade.
“The London index is being pulled down by oil stocks and travel operator TUI with moves slightly exaggerated as trading floors are quieter than usual because of the summer holidays. Most European indices are also trading in negative territory with the exception of the DAX, which is struggling around the flat line.” said Fiona Cincotta, Senior Analyst at City Index.
Elsewhere, miners built on strength earlier in the week with Glencore and Antofagasta better bid as a rally in commodities and Chinese stock markets cheered investors.
The FTSE 100 has outperformed it’s European peers in the past week as a weaker sterling supports the index.
GBP/USD has come under significant pressure this week as infighting in the Conservative party over its stance on Brexit and controversial comments from Boris Johnson raises questions about their competence to deliver a wholesome Brexit deal for the UK.
Billionaire Elon Musk said he is considering taking his company, Tesla (NASDAQ:TSLA), private.
Mr Musk took to twitter to announce the news. He tweeted:
Am considering taking Tesla private at $420. Funding secured.
https://platform.twitter.com/widgets.js
In addition, Musk said that shareholders would be offered $420 per share, and that investor support had been already secured.
This is a fifth higher than the current price of Tesla, valuing the company at around $70 billion.
Mr Musk said the move marked the “best path forward” for the electric car company.
In particular, Musk emphasised that de-listing would no longer pressure Tesla to make decisions to appease investors in the short-term.
Tesla has recently reported a record $4 billion revenue, which smashed Wall Street estimates of $3.9 billion.
Despite the jump in revenue, the group posted a worse than expected loss per shares of $3.06 (est $2.92).
The group said it had delivered 53,339 in the recent quarter and set a target of 5,000 Model 3 per week.
Chief Executive Musk hit the headlines earlier this month after he was forced to retract comments he made about the Thai rescue.
Tesla was founded back in 2003 by Musk, Martin Eberhard, JB Straubel, Marc Tarpenning and Ian Wright.
The company specialises in the production and engineering of electric vehicles, solar panels and batteries.
Shares in the company are currently trading +10.99 percent as of 10.20AM (GMT).
Support in the UKOG plc share price was triggered by an update last week on the progress of flow testing in the Weald Basin.
The firm said it had achieved flow of a stable implied equivalent daily rate of 401 and 414 barrels of oil per day.
The comply said further tests are to start in the foreseeable future.
CEO Stephen Sanderson commented on the results:
“The London index is being pulled down by oil stocks and travel operator TUI with moves slightly exaggerated as trading floors are quieter than usual because of the summer holidays. Most European indices are also trading in negative territory with the exception of the DAX, which is struggling around the flat line.” said Fiona Cincotta, Senior Analyst at City Index.
Elsewhere, miners built on strength earlier in the week with Glencore and Antofagasta better bid as a rally in commodities and Chinese stock markets cheered investors.
The FTSE 100 has outperformed it’s European peers in the past week as a weaker sterling supports the index.
GBP/USD has come under significant pressure this week as infighting in the Conservative party over its stance on Brexit and controversial comments from Boris Johnson raises questions about their competence to deliver a wholesome Brexit deal for the UK. 