The UK’s inflation rate hit its joint highest level in more than five years in August, driven by rising clothing and petrol prices.
UK inflation measured by the Consumer Prices Index rose to 2.9 percent in August, according to statistics from the Office for National Statistics released on Tuesday, up from 2.6 percent in July. Air fares rose between July and August, alongside a jump in clothing and motor fuels prices. Clothing and footwear rose 4.6 percent year-on-year, hitting their highest level since records began, partly because of rising import costs for retailers in the wake of Brexit. The inflation figure are likely to have an impact on the Bank of England’s decision on monetary policy, with the Committee meeting later this week to discuss the interest rate. Capital Economics is predicting a split within the MPC, with economist Paul Hollingsworth saying: “[The] figures are likely to provide further ammunition to the more hawkish members of the MPC at this Thursday’s meeting, and as a result we expect the vote to be split once again.” However, he added: “With mixed signals on the current strength of the economy and the majority of the Committee appearing to be comfortable with a temporary, exchange-rate driven pick-up in headline inflation, we don’t think that the MPC will be panicked into raising interest rates imminently.”Associated British Foods share price sinks 5pc despite strong performance
Shares in Associated British Foods (LON:ABF) fell over 5 percent on Monday, despite its Primark business showing strong results for the full year to September.
The group said it expected to report good growth in adjusted operating profit and earnings per share for the year, with an improvement in the group’s previous expectation for full year underlying operating profit.
It confirmed that performance at Primark was “well ahead of last year”, after the chain enjoyed good trading in the run-up to Easter. Like-for-like sales, excluding new store openings, rose 1 percent over the full year.
Primark’s full-year operating profit margin was forecast to be better than the first half’s 10 percent, ahead of previous guidance. AB Foods expects to end the year with net cash of £650 million, compared to net debt of £315 million pounds the previous year.
Sterling’s weakness had a net £85 million benefit for the group as a whole, with two-thirds of the group’s profits coming from outside the UK.
Despite the strong results, shares in AB Foods are currently trading down 5.21 percent at 3,208.00 (1006GMT).
GBP/USD hits 1-month high as dollar weakness continues
GBP/USD hit 1.3158 on Friday, the highest level since 4th August driven by a continued weakness in the US dollar.
Cable is up over 350 points since 24th August as fears over Trump’s presidential competency is questioned and geopolitical tensions rise.
Hurricane Irma is barreling towards Florida and the potential devastation is driving investors out of the greenback as the chance of a December rate hike falls.
In addition, there are concerns North Korea is planning another missile test over the weekend which will likely lead to further condemnation from the US.
Outlook
Despite the rally, investors are still cautious about the outlook of GBP/USD as the UK navigates Brexit negotiations.
“The pound faces a number of potential stumbling blocks in the weeks ahead,” said Simon Derrick, market analyst at Bank of New York Mellon.
Time to invest in oil?
This investment summary includes:
⇒Key fundamentals of North American oil market
⇒Opportunites for future expansion in the sector
⇒Potential synergies between oil infrastructure and gas supply
⇒How you can make targeted investments in oil
Download Investment Summary Now:
Terms, Risk Warning & Disclaimer:
Although the author and publisher have made every effort to ensure that the information in this publication was correct at press time, the author and publisher do not assume and hereby disclaim any liability to any party for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from negligence, accident, or any other cause. Investments can go up in value as well as down, so you could get less than you invested. This information does not constitute personal advice and you should speak to your financial advisor before committing to any pension product. Information in this document is for reference use only and its accuracy cannot be guaranteed and is subject to change.
UK Investor Magazine 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. Not all companies or products mentioned in this guide are necessarily regulated by the Financial Ombudsman Service and, as such, you may not have access to statutory or regulatory protections such as the Financial Ombudsman Service and the Financial Services Compensation Scheme.
Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.
By submitting your details, you are agreeing with our privacy policy. In addition to this and to facilitate the delivery of your book/guide or report, your details will be passed to the sponsor of this free offer. By requesting a book and agreeing to our privacy policy, you are agreeing to be contacted by the book sponsor. The book is intended for educational and informational purposes only. It should not be construed as giving investment advice and you should not rely on any content within this book in making or refraining from making any investment decisions.
This offer and advert has been issued and approved by Noble Energy Partners, 40 Gracechurch Street, London, EC3V 0BT.
Alternative Investment Forum returns to London with spotlight on agriculture
The Alternative Investment Forum will be returning to London in October for the 9th year in a row, offering investors insight into alternative investment options. This year the forum will focus on the agriculture sector, presenting the opportunities available to investors willing to think outside the box.
The dynamic two day event will be packed with 1:1 meetings and in-depth presentations, with key themes including sustainable and impact investing, the impact of climate change and liquidity risks.
As the post-crisis years continue to drive investors towards a broader range of more innovative ways to invest, both timberland and agriculture are considered to be real assets.
The forum will take place across two events, the Timber Invest Europe Forum and the Global Agro Invest Forum. Both bring together major pension funds, family offices, sovereign wealth funds, endowments, insurance companies and charities to discuss the unique investment opportunities presented by the sectors.
Anne-Marie Mongan, the event’s producer, said:
“The Alternative Investment Forum is a unique platform for investors to discover how timber and agriculture assets can fit into their wider portfolio. The Forum enables both new and seasoned investors in this space to conduct 1:1 meetings with Funds, consultants, forestry management companies and other service providers who can help them meet their investment goals.”
Participants in the 2017 programme include the World Bank, FAO of the United Nations, European Bank for Reconstruction and Development (EBRD) and many more. For more information click here. To register click here and use priority code MK-MP to secure your place.
Average house price up 1.1 percent in August as market picks up
UK house price growth continued to rise last month, as the number of properties on the market shrunk and employment growth provided a boost to the sector.
The average price of a house rose by 1.1 percent to £222,293 in August, according to the latest figures from Halifax, with the market seeing an annual increase of 2.6 percent.
This figure is up from an annual rate of 2.1 percent in the three months to July, which was a four-year low.Russell Galley, the Halifax managing director, said:
“Recent figures for mortgage approvals suggest some buoyancy may be returning, possibly on the back of strong recent employment growth, with the unemployment rate falling to a 42-year low.
Alex Michelin, co-founder of CapitalRise, the property investment firm, commented on the figures:
“Aspiring home-owners shouldn’t see today’s increase in UK house prices as bad news, but view it as an opportunity. The fact that there is still a rise in prices demonstrates the resilience of the property market in the UK, despite all the negative headlines about Brexit.
“While the stock and bond markets appear overvalued and vulnerable to political events and economic uncertainties, property in the UK remains strong and a great place for investors to place their money.
Bovis Homes profit drops 30%
Bovis Homes shares soared on Thursday despite reporting a 30% drop in profit before tax and a 6% drop in completions.
In addition, Bovis reduced growth forecasts for the coming year and acknowledged that there was work to be done to appease angry customers, which will come at a cost.
Greg Fitzgerald, CEO of Bovis Homes commented on the results:
“The first half of 2017 has been a period of stabilisation and strategic reorganisation for Bovis Homes Group. Since joining the business in April 2017 I have visited all our offices and the vast majority of our developments, and have been hugely impressed by the desire of our dedicated staff to address and rectify the challenges faced by the business. As a result I am confident that our new strategy will set the Group on the path to sustainable, profitable growth.”
“The new strategy of disciplined volume growth, allied with a renewed focus on customer satisfaction and build quality, will deliver the homes that are required in the locations where people want to live. The Group’s strong balance sheet and valuable land bank mean we are well set to provide the stable returns to shareholders that their patience and support have deserved.”
Despite the downbeat headline figures, shares pushed higher by over 7% as investors digested the news.
Zoopla owner continues shopping spree, acquires money.co.uk
Zoopla owner ZPG has continued on an acquisition spree as it announces they had conditionally agreed to acquire Dot Zinc Limited, the owner of money.co.uk.
ZPG recently acquired property marketing firm Ravensworth and today’s announcement further highlights ZPG’s aspirations to grow in the digital media sector by acquiring complimentary companies and competitors.
Money.co.uk was established in 2008 and generated £24.7m and £8m EBITDA in the year to 31st October 2016.
Alex Chesterman, CEO of ZPG said of the acquisition:
“We are delighted to announce this transaction. Adding Money, one of the UK’s leading financial services comparison websites, to our existing brand portfolio will further enhance our product capabilities and consumer engagement across both our comparison and property platforms.”
“Broadening our financial services offering has long been a key part of our strategy and I look forward to welcoming Chris and his team to the ZPG family.”
CEO of Money.co.uk, Chris Morling added:
“I am very proud of what we have achieved over the last nine years. We have developed a strong brand and loyal following and are looking forward to the next phase of our growth.”
“ZPG has led the way as an innovative digital consumer champion and we are looking forward to helping even more consumers make better-informed decisions as part of ZPG.”
The St Leger Day adage: true or false?
“Sell in May and go away, don’t come back ‘til St Leger Day”: a well-known old adage indicating that investors should lay off stocks and shares for the summer, long touted as a way to help improve your investment returns.
However, analysis from Fidelity International debunks this stock market maxim and suggests that placing your bets on the adage could have left you out of pocket.
With the famous St Leger Day race taking place on Saturday 16th September this year, Fidelity analysed the returns for the FTSE All Share between 1st May and 1st September over the past three decades. It found that the index produced positive returns over these months in 18 of the past 30 years.
This means that you would have lost out on the majority of occasions had you backed out of the market in May, debunking the St Leger Day adage.
Tom Stevenson, investment director for Personal Investing at Fidelity International, said: “The St Leger Day stock market adage has been doing the rounds amongst investors for decades but perhaps it’s time to retire this old maxim as our analysis shows that it’s a bit of a lame horse. Had you followed the adage over the past 30 years, you would have been worse off 60 per cent of the time.
“While the summer has seen its fair share of geopolitical risks, including rising tension between North Korea and the US, as well as stalling Brexit negotiations, the FTSE All share has still gone on to deliver a positive return between May and September. As such, anyone who followed this stock market adage this summer would have lost out.
“Trying to predict the best time to be in and out of the market is a fool’s errand and getting it wrong can severely dent your long term investment returns. If there is one adage that investors should abide by it is ‘time in the market matters more than timing the market’.”
What stocks are rated ‘buy’ this September?
Request this report now to discover the stocks being tipped as a ‘BUY’ this September
In addition, this report includes:
⇒Top large cap stocks that are currently undervalued by the market
⇒Potential takeover targets that could see predators coming forward
⇒A small cap stock with great earnings potential
Request your free copy now:
Terms, Risk Warning & Disclaimer:
Contracts For Difference may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it poses a risk of loss to your capital. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. Please read our risk warning at the end of our brochure. Tax treatment depends on your individual circumstances and may be subject to change in the future. If in any doubt please seek further independent advice.
This offer has been issued and approved by MB Capital.
- The content relating to the past performance of an investment is not necessarily a guide to its performance in the future. The value of investments or income from them may go down as well as up. As stocks and shares are valued from second to second, their bid and offer value fluctuates sometimes widely. The degree of fluctuation of fund values varies significantly and the value of higher volatility funds may change suddenly. The value of investments may rise or fall due to the volatility of world markets, interest rates and capital values or, for investments held in overseas markets, changes in the rate of exchange in the currency in which the investments are denominated. You may not necessarily get back the amount you invested.
- The levels and bases of, and reliefs from, taxation are subject to change as UK legislation and regulations and the UK tax regime are amended from time to time and any content on this site referring to such legislation, regulations or tax regime should not be relied upon.
- All content provided through this site is only for your personal information and use, and is not intended to address your particular requirements or to be relied upon in making (or refraining from making) any specific investment or other decision. Dianomi Limited’s content shall not constitute any form of advice or recommendation by us.
- Where you are unsure about any specific investment or other decision, you should obtain appropriate expert independent advice.
- Nothing included in this site constitutes an offer or solicitation to sell investments to anyone in any jurisdiction outside the United Kingdom in which such offer, solicitation or distribution would be unlawful.
- For further information on the rights and obligations of both you and us in relation to the use of this site please refer to Dianomi Limited’s General Site Conditions which you agreed to when you accessed and used this site.