Monthly retail sales figures are traditionally volatile, with December’s figures being revised downwards by 2.1 percent. However, figures have been continually weak for the last several weeks, down by 0.4 percent in January to mark the weakest performance since November 2013.
The unexpected fall caused the Pound to plunge dramatically, losing half a cent to trade down 0.54 percent at $1.242 just after the news. Against the euro, the currency is currently down 0.32 percent against the euro and 0.91 percent against the yen.
UK retail sales fall dramatically, GBP plunges
UK retail sales dramatically fell in January, surprising City analysts and causing the Pound to plummet.
Retail sales volumes fell by 0.3 percent month-on-month in January according to the Office for National Statistics, well below expectations of a 0.9 percent increase.
In the three months to January 2017, retail sales saw the first signs of a fall in the underlying trend since December 2013,” ONS statistician Kate Davies said.
“The evidence suggests that increased prices in fuel and food are significant factors in this slowdown.”
Jeremy Corbyn to impose ‘three-line whip’ on Article 50 vote
Jeremy Corbyn has confirmed that he intends to impose a three-line whip on Labour MP’s for the upcoming parliamentary vote on Article 50.
The Labour leader said in an interview with Sky News, that he intends to enforce the strongest form of party discipline to ensure that MP’s both attend and vote in favour of Article 50.
This follows the UK Supreme Court’s landmark decision on Tuesday to dismiss the Government’s Brexit appeal case, prohibiting Brexit negotiations progressing without a formal parliamentary vote.
In the interview, Mr Corbyn stated:
“It will be a clear decision that we want all of our MPs to support the article 50 vote when it comes up next week.”
He later confirmed that a three-line whip would be also put in place. He continued:
“It’s clearly a three-line whip. It is a vote on the article 50 … We will put out a statement today to our members that we want them to vote for article 50.”
Jeremy Corbyn had been criticised by many of his remain supporting colleagues for not having campaigned fiercely enough over the issue during the run-up to the referendum. Officially, the Labour stance had been in favour of “remain”, however, Corbyn’s lack of apparent commitment to the cause ultimately led many to question his leadership and his positioning regarding the EU.
During his time as a Labour MP, he has been more accurately characterised by as a left-wing eurosceptic, than an ardent europhile. The leadership challenge that mounted against Corbyn following the June vote, was largely cited as as a result of Corbyn’s lack of leadership regarding the referendum and his lukewarm campaigning.
However, whilst Corbyn remained clear on the party’s official position with regards to Article 50, the Islington-North MP acknowledged the difficulty for many MPs who face a conflict of interests between the party and their remain constituents. He said:
“I fully understand the pressures and issues that members are under, those who represent leave constituencies and those who represent remain constituencies. Labour is in the almost unique position of having MPs representing constituencies in both directions and very strongly in both directions.”
Many Labour strongholds are London constituencies, which have a large proportion of ‘Remain’ voters.
Positive Fokus launch crowdfunding campaign to accelerate growth
Events hire company Positive Fokus has kicked off a crowdfunding campaign on Crowd2Fund, and are seeking investors to help take their innovative brand forward.
Positive Fokus initially began as a hobby for founders Seain Loughlin and Adam Savant, combining their love of both sound and good quality sound systems. Since 2005, their passion has grown into a fulltime business, encompassing a number of ancillary services including technicians, audio, lighting and staging.
The founders’ combined experience was perfect for starting the business, with Adam working as an audio technician and Seain in event logistics and sales. The name of the business is indicative of the company’s founding ethos; to make a positive contribution to their stakeholders and community at large.
From its humble beginnings, Positive Fokus now puts on events at some of the most renowned venues all over the UK including Glastonbury and Port Elliot festival. The company has also been used by blue chip names including Channel 4, and some of the most exciting brands in the UK such as Secret Cinema.
Positive Fokus is creative and innovative in its approach and with how it engages with clients; a recent event put on for Twitter focussed on live streaming video and encompassed a number of cutting edge interactive features.
The company are now seeking a £60,000 loan on Crowd2Fund.com, with an estimated APR of 10 percent, in order to meet growing demand.
The founders of the business believe that this creativity, alongside their understanding of technology, are core components which will enable them to remain competitive in their marketplace and to continue to grow. The loan will be used to increase awareness through marketing and the procurement of new equipment.
Sean Loughlin said of the choice to crowdfund: “In order to meet growing demand from some of the world’s top brands we need to continue to invest. We plan on using a portion of the funds on new lighting equipment in order for us to provide the best experience for our discerning client base. We will also use a portion of the funds to revamp the website.”
The company chose to seek financing from Crowd2Fund.com over traditional lenders due to the platform allowing their customers and stakeholders a deeper level of engagement with the business.
“Crowdfunding is creative by its nature, and fits with our ethos of making a positive contribution to society. Crowd2Fund seemed like the perfect fit for us due to their transparency, track record and similar values”, Loughlin added.
For more information, visit their campaign page on Crowd2Fund.
Global markets uncertain as Trump enters first 100 days
Speculation has increased as to where new President Donald Trump’s economic policy will take the markets in his first 100 days of office, after his inaugural speech on Friday gave little of his intentions away.
Ahead of the speech the US dollar moved higher, after a volatile month in which global markets struggled to deal with uncertainty over Donald Trump’s economic policy. The currency is down 1.3 percent so far this month as investors hedge their bets as to where Trumponomics will take the dollar.
In response to his inauguration speech, which many hoped would clear up some details, the dollar index fell to its lowest point of the day after Trump said he would ‘put America First’. Many investors took this to mean that it he would be taking a protectionist approach to the economy.
Prior to the speech Trump’s nominee for Treasury secretary Steven Mnuchin told the Senate Finance Committee that the new administration prefers a strong dollar long term.
Following the speech, Michael Hewson, Chief Market Analyst at CMC Markets UK, commented:
“It’s been a disappointing start to the week across the board today as European investors take a risk off position after Friday’s “America First” President Trump inauguration speech on Friday, as European markets decline across the board. The narrow one dimensional focus of the new US President’s comments, as well as his first executive actions in looking to renegotiate NAFTA and pull out of the Trans Pacific Partnership (TPP) has raised concerns that he is placing greater importance on protectionist measures than his pledges to implement tax cuts and infrastructure spending.
“Even though US markets managed to rally into the close on Friday in the wake of new President Trump’s rather protectionist speech, overseas markets haven’t been anywhere near as sanguine, dropping back as currency markets gave their initial verdict sending the US dollar sharply lower.
What should investors expect from Trump’s presidency?
Investors should expect volatility in global financial markets in the first 100 days of Donald Trump’s presidency, said Tom Elliott, International Investment Strategist at independent financial advisor deVere Group.
Mr Elliott warned investors that “Market volatility should be expected over the next 100 days, the period in which new administrations like to lay down their mark for the rest of their term of office.”
Trump entered presidency with the aim of making ‘America Great Again’. However as Obama left the White House with the US economy growing at 3.5 per cent, the fastest rate of growth of any developed economy bar Canada, and unemployment at a modest 4.7 per cent.
“It is unclear in what sense America is not great, at least in terms of the economy”, commented Mr Elliott.
“The type of fiscal stimulus policies that Trump has promised, such as lower taxes and infrastructure spending, can make up for shortfalls in public spending and so stimulate a depressed economy. Yet the US is not suffering from a depressed economy, and inflation may be the result.
“Furthermore, with the U.S government deficit likely to hit its current $20 trillion mark in March, thanks to a continuing large budget deficit (of 3.2 per cent of GDP), the Treasury market may well take fright at the prospect of both oversupply and inflation should Trump try to enact such a policy.
The Federal Reserve has already begun to take Trump’s intentions into account, indicating that it may tighten monetary policy in 2017 faster than originally thought.
“In recent days it has speculated that rate hikes may be accompanied by a shrinking of its balance sheet. This would shrink the money supply, forcing up interest rates.”
What lies ahead for property investors post-Brexit?
Theresa May’s high-profile speech outlining her stance on the Brexit negotiations is likely to have a wide-ranging impact on all sectors, as investors plan for the impact of a ‘hard Brexit’.
The property sector in particular will be looking for suggestions as to what Britain will look like post-Brexit, with investors possibly putting off buying until there is more clarity.
Agate Freimane, Senior Investment Director at online real estate investment platform BrickVest, said of Theresa May’s Brexit plan:
“Theresa May’s announcement on the UK potentially leaving the single market will be well received by opportunistic investors in the UK and European real estate market and it will undoubtedly trigger more buying and lending opportunities.” “Through our online real estate investment platform, we’re seeing strong demand for UK real estate, especially in the form of debt like investment opportunities which offer good risk adjusted returns in a volatile market environment.” “Within real estate, we are likely to see the highest level of volatility from the office sector. Many of the international firms currently headquartered in the UK may put on hold any decisions over their long term office space requirements. If the UK no longer gives these firms access to the European market, they may need to spread their staff across multiple locations to more efficiently access both the UK and the European market.”Theresa May to take Britain out of the single market as Brexit negotiations begin
Prime Minister Theresa May outlined her plan for a Britain outside the European Union in a speech on Tuesday, saying that it would not be part of the single market but would endeavour to work with European States in many policy areas.
The pound sunk to three-month lows in anticipation of the speech, but steadied once the Prime Minister began speaking. Addressing an audience at Lancaster House in London, May made it clear for the first time that she would be negotiating for a ‘Hard Brexit’.
“I want to be clear: What I am proposing cannot mean membership of the single market,” May said, but before continuing to state that she would like to create a new deal with Europe:
“This agreement should allow for the freest possible trade in goods and services between Britain and the EU’s member states. It should give British companies the maximum freedom to trade with and operate within European markets, and let European businesses do the same in Britain.”
At the end of the speech, she warned Europe that it would be worse off than Britain if not trade deal was reached.
Sterling retreated again on Wednesday, and is currently down 0.94 percent against the dollar and 0.61 percent against the euro.
Q Studios – Luxury Student Property – 8-10% Expected Yield
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This is our 17th UK Student Property in an exclusive partnership with the only NHBC-certified Student Property developer – award winners for build quality.
This ensures high standards throughout, while buyers benefit from the enhanced security of unique 10-year structural warranties.
A professional onsite property management team will be responsible for all operational aspects of the development, leaving you to receive a completely effortless income.
Critical accommodation undersupplys
Stoke’s two universities are currently home to 22,700 students, while there are only 4,779 purpose built student units (including university-owned halls of residence).
This means that just 21% of the city’s students can acquire space in their preferred accommodation form.
What’s more, only 7% of students can access purpose built student en-suite or studio accommodation – with only a tiny number of studios available citywide.
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Sky Building Student Property – 8% Rental Yield
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Articles are general information and not a recommendation to act. Please seek independent investment advice before entering into any financial transaction. By entering into any financial transaction that involves securities, derivatives or property puts your capital at risk. The UK Investor Magazine is not regulated by the Financial Conduct Authority and will not accept any liability for any action taken after using this website in any form. By entering your details
By entering your details you agree to be contacted by UK Investor Magazine and the company operating this investment opportunity regarding this opportunity specifically and similar investment opportunities and news.
JD Sports upgrades outlook, leads FTSE350 higher
JD Sports (LON:JD) shares opened at 347p Thursday morning up 6.5 per cent from the previous days close as the self proclaimed “King of Trainers” said profits before tax will be up to 15 per cent more than previous consensus views of £200 million for the financial year ending January 28th.
The group includes not only the namesake sports shops, but also outdoor retail chains such as Scotts and Blacks. Growing demand in recent years for branded sportswear has seen JD Sports overtake discount rival Sports Direct as the country’s biggest sportswear retailer by market value.
With full year results now scheduled to be released on the 11th April, Peter Cowgill, Executive Chairman commented “I am delighted to report that we have maintained our excellent momentum from the first half of the year. Whilst we acknowledge that it would be unreasonable to expect like for like sales growth to be maintained at recent levels for a fifth consecutive year, we are confident that both domestically and internationally, our unique and often exclusive sports fashion premium brand offer provides a solid foundation for future development.”
In morning trade shares reached a high of 357.90, up 9.7 per cent from the previous days close, and up 3.1 per cent from the open this morning. City analysts are indicating further potential upside with Investec reiterating their bullish stance with a price target of 415p a share, and Cantor Fitzgerald and Peel Hunt confirming their upside targets of 380p this morning.