Price of Bitcoin hits all-time high
The world’s best known cryptocurrency Bitcoin smashed its previous record on Thursday, soaring above $5,000 for the first time.
Bitcoin traded at $5,186 in morning trade, over five times its price of $966 at the start of the year. The price of Bitcoin is known for being volatile, sinking to below $3000 in September after the Chinese authorities cracked down on cryptocurrency exchanges.
“Speculators are bullish on bitcoin’s value with the anticipation of China’s reintegration with global crypto markets,” Aurelien Menant, CEO of cryptocurrency exchange Gatecoin, told CNBC by email.
Bitcoin allows quasi-anonymous trade across borders by bypassing banks and traditional currencies. There have, however, been concerns about its use for money laundering and crime, leading JP Morgan CEO Jamie Dimon to publicly condemn the currency as a “fraud”.
Federal Reserve concerned as inflation remains slow
The US Federal Reserve is growing increasingly concerned about the low rate of inflation, warning that lagging rates may be due to longer term factors rather than short term as initially thought.
The Fed urged patience on Wednesday, with several members saying the decision to raise rates further would depend on incoming economic data. They confirmed that “all agreed that they would closely monitor and assess incoming data before making any further adjustment to the federal funds rate”.
Inflation remains some way off the Fed’s 2 percent target rate, with the Fed’s preferred gauge showing a gain of only about 1.4 percent. However, members remained confident that the target would be hit in the near future.
“Many participants continued to believe that the cyclical pressures associated with a tightening labor market or an economy operating above its potential were likely to show through to higher inflation over the medium term,” the minutes said.
“In addition, many judged that at least part of the softening in inflation this year was the result of idiosyncratic or one-time factors, and, thus, their effects were likely to fade over time.”
The Fed also drew attention to other factors affecting the US’s economic growth, including the recent hurricanes hitting the country. These may well affect growth in the short term, but they are not expected to have a significant long-term effect.
Renold share price drops 10pc as profit expecatation falls
Shares in engineering solution company Renold (LON:RNO) dropped 10 percent on Thursday, after the group confirmed that adjusted operating profit for the full year would be towards the lower end of expectations.
The company, who are a leading international supplier of industrial chains and related power transmission products, issued a trading update for the six months to 30th September 2017. Whilst it Torque Transmission division performed in-line with expectations, profitability in its Chain division was affected by machine break-downs at their Einbeck facility and sustained increases in raw material costs.
Renold’s Board confirmed that, due to this unexpected slowdown, it expects adjusted operating profit for the year to 31 March 2018 to be “slightly below the lower end of the current range of analyst forecasts.”
It added that it expects performance in the chain division to improve in the second half, with the machine issues resolved and price increases feeding into revenue.
Group revenue in the period grew by 8.0 percent and, and by 2.7 percent on an underlying basis. Order intake in the period grew by 9.9 percent on an underlying basis.
Shares in Renold are currently trading down 10.45 percent at 46.12 (1039GMT).
Telford Homes shares fall despite benefiting from London housing “crisis”
Telford Homes (LON:TEF) shares sunk on Wednesday, after it warned that pre-tax profits for the six months to September 30 are likely to be lower than last year.
Whilst pre-tax profits stumbled over the last six months, the housebuilder attributed the fall to “development timings which are all on track”. The company confirmed that for the full-year it remained on track, with analysts expecting full-year profits of more than £40 million.
Telford said it had seen “limited” impact from the market uncertainty which has hit the sector in the wake of the European referendum, adding that it has benefited strongly from the “chronic” housing shortage in London.
“There remains an ongoing and acute need for more homes to be built across London which is recognised by all political parties and the Mayor. This is particularly true for non-prime locations where homes can be developed at more affordable prices and rents. The imbalance between this need and the supply of new homes continues to underpin the Board’s long term belief in growing Telford Homes and increasing the Group’s development capacity”, the company said in a statement.
Jon Di-Stefano, Chief Executive of Telford Homes, continued:
“I expect more build to rent transactions as institutional demand continues to grow alongside continuing open market sales at our well located developments. Our ultimate belief in what we do is underpinned by a chronic lack of supply and we expect to deliver more of the homes that London needs in the coming years.”
Shares in Telford Homes are currently trading down 2.08 percent at 399.75 (1319GMT).
Catalonia chaos “wake-up call” for investors, despite Spanish markets strong performance
The chaos in Catalonia is a wake-up call for global investors, warns the boss of one of the world’s largest independent financial services organisations.
The warning from Nigel Green, founder and CEO of deVere Group, follows the president of the Catalan government, Carles Puigdemont’s, highly anticipated speech in which he said Catalans had “won their right to become an independent country” from Spain following the disputed referendum on 1 October. The Premier added that he will first seek to open a dialogue with Madrid.
Up until now the chaos in Catalonia had been largely dismissed by global investors as a regional issue, however Green said on Wednesday: “The aftermath of geopolitical events of this magnitude have the potential to influence capital markets which, of course, drive investor returns.
“In the short term there will be ongoing and increasing uncertainty which is likely to create turbulence in the domestic and regional financial markets. In the longer term, if Catalonia splits, Spain’s economy – Europe’s fourth largest – could lose 20 per cent of its revenue. Plus the process could adversely affect investment into both Spain and Catalonia.”
Spanish stock markets rose on Wednesday despite the tensions in the Northern region, outperforming the rest of the European markets after Catalonia’s leader failed to declare formal independence from Spain.
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The Bitcoin Report
Should you invest in Bitcoin and crypocurrencies?
Unless you’ve been living under a rock, you’ll have likely heard about 2017’s most divisive topic. Cryptocurrencies. Talks of returns in the double or even triple digits have set traders’ tongues wagging, resulting in a significant increase of products available
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Contents:
What is Bitcoin and what it can be used for?
How you can trade Bitcoin?
Whether it is a feasible investment
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We operate on an execution only basis and this should not be taken as advice. If in doubt, please seek independent financial advice. Accendo Markets Ltd. 1 Alie Street, London, E1 8DE. Registered in England and Wales No. 6417051. Authorised and regulated by the Financial Conduct Authority No. 475285. This report has been issued and approved by Accendo Markets.
This guide is for information purposes only and UK Investor Magazine shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date. Investment Superstore does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this guide, or losses or damage you may incur doing so. There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Almost 2,000 jobs to be cut at BAE Systems
UK-based aerospace company BAE Systems (LON:BA) is set to cut almost 2,000 jobs at its UK locations, across all sectors including military and intelligence.
Up to 1,400 jobs are to be cut at the military aerospace business over the next three years, with the aerospace bases at Warton and Samlesbury in Lancashire to take the brunt of the losses. A further 375 jobs will be lost in maritime services and 150 at its cyber-intelligence business.
The job losses are the first stage of CEO Charles Woodburn’s cost-cutting plan, after an order gap for the Typhoon caused the company to slow down production. The cuts are due to be implemented by 1st January 2018, through voluntary redundancies where possible.
Overall the company, who make the Eurofighter Typhoon jet and Britain’s nuclear submarines, employs 83,100 people worldwide, including 34,600 in the UK.
The decision will come as a blow to the industry in the wake of Brexit, as the British government aims to promote the UK manufacturing industry as “strong and stable” as negotiations with the EU begin.
BAE Systems (LON:BA) share are currently trading down 0.49 percent on the news, after recovering from a significant plunge at market open.
Sterling has worst week in a year as May crumbles
Sterling has been pummelled this week as a disastrous speech by Prime Minister May raised fears of further disruption in UK politics.
The weak performance by Theresa May at the conservative conference has further cemented in the view that she is unfit to lead the UK.
It was revealed on Friday Conservative MP Grant Shapps was rounding up signatures from conservative MP who wish her to leave.
Early on Friday, it was reported Schapps had 30 signatures of the 48 required to trigger a leadership vote.
Theresa May brushed off the news, however, saying she had the full support of her cabinet.
The leadership debate – or even a general election – would come just as the UK enters critical stages of Brexit negotiations.
Dollar Strength
The weakness in Sterling has been enhanced by a stronger dollar helped higher by expectations of a rate hike this year and a technical rebound after a month of steady declines.
The first reduction in US job failed to halt the dollar’s rally on Friday as investors look through the figures to a potential rebound in the labour market following storms across Texas and Florida.
On Friday afternoon, GBP/USD traded below 1.3030, the lowest since early September and down over 600 points from recent highs.
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Shares in Merlin Entertainments rise on reports of Seaworld acquisition
Shares in Legoland operator Merlin Entertainments (LON:MERL) rose over 2 percent on Thursday, after reports that it may be interested in buying parts of Seaworld.
According to a person familiar with the matter, Merlin has approached Seaworld with an offer for several parts of the business. However, it is thought that Seaworld is looking to sell its entire business in one deal.
The news was first reported by Bloomberg on Wednesday, but there has been no official comment so far from either party.
“We do not comment on speculation or rumours”, SeaWorld said in reaction to the news.
Merlin Entertainment has suffered a challenging couple of years, after a crash at its Alton Towers resort led to two young girls needing to undergo leg amputations. Its rumoured plans to buy parts of Seaworld will push the company, who also own Madame Tussauds and several other theme parks in the UK, further into international territory. In 2017, it opened a Legoland theme park in Japan as well as one in both Melbourne and Philadelphia.
Terrorist attacks in the UK have also negatively impacted on the group’s performance, with the group saying in August that both profits and revenues had fallen at its city centre “Midway” venues in the wake of attacks in both Manchester and and London Bridge.
Shares in Merlin Entertainments are currently trading up 2.48 percent at 459.50 (1137GMT).