Majestic Wine shares soar despite profit loss

Miranda Wadham
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Majestic Wine shares soar despite profit loss
Majestic Wine reported mixed results on Thursday, sliding into a loss for the six months to September 26th but seeing shares rise over 6 percent after the announcement. The wine sellers reported a pre-tax loss of £4.4 million, a significant fall from the £4.3 million profit made in the first half of 2016. However, sales rose 13.2 percent to £205.6 million and the company reiterated their goal to hit £500 million annual sales by the end of the 2019 financial year. Majestic Retail sales rose 5.7 percent like for like for the 6th consecutive quarter, with their Naked Wines brand seeing a 26.7 percent sales increase. Majestic Wine also confirmed that their transformation plan to deliver ‘future sustained growth in shareholder value’ remained on track. Rowan Gormley, Group Chief Executive, commented: “Our plan is working. We said that we would deliver sustainable growth, not by opening more stores, but by investing in better customer service and better customer retention. Both of these are working – sales are up over 10 percent and the projects driving that sales growth, like nationwide next day delivery, are on time and on budget. “Now that we have built a solid platform for future growth, future cost growth will be much lower. We are reiterating our commitment to hitting our goal of delivering £500m sales by 2019, and we believe that will translate into healthy profit growth now that the step change in investment is complete. We are reinstating the dividend as a signal of our continued confidence in the plan.” Majestic Wine (LON:WINE) shares are currently trading up 6.05 percent at 319.50 pence per share (0931GMT). 
17/11/2016

Royal Mail profits sink 5 percent, shares follow

Miranda Wadham
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Royal Mail profits sink 5 percent, shares follow
Royal Mail (LON:RMG) shares fell on Thursday after the postal service posted a 5 percent fall in first-half profit and announced an extensive cost-avoidance plan. Despite a stronger performance in Europe, fierce competition from Deutsche Post, UK Mail and Amazon’s new delivery service affected profits in the first half of the year. The company announced plans to avoid £600 million in costs by March 2018, a significant rise from its previous £500 million target. Operating profit fell £320 million in the six months to September 25th, but the results were aided by a 1 percent revenue increase to £4.58 billion. “The key drivers for the UK letters and parcels markets remain unchanged. Letter volumes, particularly advertising letter volumes, are linked to movements in GDP and we are monitoring developments in the UK economy closely,” Royal Mail said in a statement. Shares are currently down 4.95 percent to 474.20 pence per share (0910GMT). 
17/11/2016

Google to commit £1 billion investment in UK

Nicole Jeary
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Google to commit £1 billion investment in UK

Google have announced plans to open a new headquarters in London, which is set to create around 3,000 jobs by the year 2020.

The headquarters will be a re-development of the current space occupied by Google in Kings Cross, London. Currently, Google employs around 4,000 people across the UK; however with this latest investment, that figure could rise to 7,000.

Chief executive Sundar Pichai remained optimistic about the opportunities for business in the UK, despite the potential impact of Brexit. However, Mr Pichai did emphasise the importance of open borders and freedom of movement for the growth of the technology industry.

“The UK has been a tremendous market for us,” Mr Pichai told a correspondent at the BBC.

“We see big opportunities here. This is a big commitment from us – we have some of the best talent in the world in the UK and to be able to build great products from here sets us up well for the long term.”

Mr Pichai spoke of the prospects in investing further into the U.K, in spite of the ongoing Brexit-related setbacks for the economy:

“The innovation we see here, the talent we have available here and how on the cutting edge of technology we are able to be here makes it an incredible place for us to invest,” he said.

“We do value how open and connected it is and we can bring in talent from anywhere in the world and we value those attributes and we are optimistic that those will stay true over time.

“So we did [make the investment decision] taking into consideration [the referendum], but we are very optimistic.”

Mr Pichai also warned that the full effects of the referendum may not yet have been realised. However, he remained positive about the status of the capital as a source of world-class talent and innovation for the technology sector.

“When I look at London [I see] a place in which we are able to attract great talent, find great talent in the UK, thanks to a great educational system here, but it has also been a place where people are willing to come from anywhere in the world.”

Whilst the company neglected to give specifics over the size of the investment, speculation from experts puts the re-development in the region of £1 billion. It is set to encompass 650,000 sq-ft and has been designed by Thomas Heatherwick – the designer behind the Olympic cauldron.

Morning Round-Up: Germany economy slows, EasyJet down, Cineworld strong

Miranda Wadham
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Morning Round-Up: Germany economy slows, EasyJet down, Cineworld strong

German economy slows in third quarter

German economic growth halved in the third quarter, falling to 0.2 percent as weaker exports took their toll.

The 0.2 percent growth seen between July and September was a steep drop on the 0.7 percent and 0.4 percent seen in the first and second quarter respectively, and was slower than analysts had expected.

Germany’s Federal Statistics Office said in a statement:

“The development of foreign trade had a downward effect on growth.

“Exports were slightly down while imports were slightly up compared with the second quarter of 2016. “Positive impulses on the quarter came mainly from domestic demand,” the statistics body added. “Both household and state spending managed to increase further.”

EasyJet profits hit by “challenges”

EasyJet saw pre-tax profits fall 27.9 percent in the year to September, after issuing a profit warning last month. Profits fell to £495 million, despite a 6.6 percent rise in passenger numbers. Revenues fell 0.4 percent to £4.67 billion. The company cited weak sterling, terror attacks and air traffic control strikes as the reasons for the “challenging environment”. The group also confirmed the set-up of a continental-based airline to counteract the UK’s exit from the EU.

Cineworld up on big box office films

Big box office hits helped Cineworld see a 14.6 percent rise in revenue for the 45 weeks to November 10th, with the group “confident” of delivering in line with expectations for the full year. “The Secret Life of Pets”, “Finding Dory”, and “The BFG”, as well as the December release of “Fantastic Beasts and Where to Find Them” have boosted profits. Box office revenue rose by 8.5 percent for the period, whilst total revenue across the UK and Ireland markets rose 8.4 percent. 
15/11/2016

Amazon UK launches Spotify Rival

Nicole Jeary
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Amazon UK launches Spotify Rival
Amazon is set to launch a music streaming service that will host around 40 million songs, rivalling competitors such as Spotify and Apply Music. The service which is called ‘Amazon Music Unlimited’ will be available to customers for the price of £9.99 a month, and will give subscribers access to an extensive library of music. The service is to be cheaper for existing Amazon Prime customers, with a price of £7.99 on a monthly basis and in addition, an annual payment plan is available for £79 annually, with an equivalent monthly fee of £6.58. The company CEO Jeff Bezos said: “Amazon Music Unlimited brings real value to the millions of people in the UK who are already Prime members, with a choice of subscribing for only £7.99 a month or £79 per year. “And if you want a sense of the future of voice-controlled music, go ahead and ask Alexa for a free Amazon Music Unlimited trial and play around on your Echo. If you don’t know the name of a song but know a few lyrics, if you want to hear songs from a specific decade, or even if you’re looking for music to match your mood, just ask.” In addition, owners of the Amazon Echo device can also receive a cheaper subscription to the new service for £3.99 on a monthly basis. The Echo speaker system was designed as a virtual digital assistant and wireless speaker. The device has the capability to facilitate voice interaction, initiating music playback as well as creating to-do lists, setting alarms and streaming podcasts or audiobooks among many other features. The service has been envisaged as a competitor for the streaming services provided by Spotify and Apple Music in the UK. However, the electronics website are attempted to give further incentives to customers with various supplementary offers and through introducing its own functioning hardware system.  

Morning Round-Up: Euro zone production down, Japan up, American Apparel bankrupt

Miranda Wadham
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Morning Round-Up: Euro zone production down, Japan up, American Apparel bankrupt

Euro zone production down in September

Euro zone industrial production fell in September, with a drop in durable goods output responsible for the fall. The figures, released by the European Union statistics office on Monday, shows production decreased by 0.8 percent in September. The number remains 1.2 percent higher year-on-year, and is above the 1 percent fall forecast by analysts. The number was in line with the Euro zone’s recent pattern of results, whereby industrial output increases one month but falls again the next.

Japanese economy shows strength, pushes shares up

Japan’s GDP expanded by an annualized 2.2 percent in the three months to September, beating anaylysts’ expectations and pushing the Nikkei 225 up. Analysts had expected a 0.9 percent rise, according to the Wall Street Journal. The figure was the third straight quarter of expansion for Japan, after three long years of investor concern over country’s economic performance. The Nikkei 225 closed up 1.71 percent at 17,672. European markets took their cue from strong Asian trading on Monday, with the FTSE 100 up 0.98 percent in mid-morning trading. Shares in housebuilder Taylor Wimpey boosted the index, rising 3.2 percent, with miners such as Randgold Resources tempering performance.

American Apparel files for bankruptcy again

Controversial US retailer American Apparel has filed for bankruptcy for the second time in just over a year, as years of heavy losses and scandal continue to affect performance.

The company have said they will continue to trade whilst negotiating a potential sale of assets to Canada’s Gildan Activewear, who have offered $66 million for the brand and its stock.    

“Artificial Intelligence will destroy jobs”, says poll

Nicole Jeary
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“Artificial Intelligence will destroy jobs”, says poll
Governments are not sufficiently prepared for the impact of artificial intelligence upon jobs, according to a Venture poll survey directed at investors Artificial Intelligence According to the research by Venture, an event that taking place at the Web Summit and has thousands of top technology investors in attendance, over half of those polled (53 percent) agreed it is “inevitable that Artificial Intelligence will destroy millions of jobs”. In addition, 93 percent of investors polled considered governments were not sufficiently prepared for the impact that artificial intelligence may have on jobs. On Brexit

Attitudes towards the UK’s decision to leave the UK were also recorded, with 82 percent agreeing that the event was damaging to the future of European economies. Similarly, around 77 percent of investors considered British startups to also be negatively impacted by Brexit and dependent upon future negotiations with Europe.

Technology

The poll also examined what various investors considered to be the biggest challenge for the tech industry. According to its findings, investors cited labour laws and regulation as key obstacles for growth. In addition, 39 percent of participants labelled tech giant Apple as the “least innovative” potentially due to its latest lacklustre Macbook and iPhone 7 releases.

The Presidential Election

Concerning the US election, the poll found that an overwhelming 94 percent of investors would have voted for Hillary Clinton, and a slightly smaller 89 percent majority had anticipated a win for the former Secretary of State. Mr Donald Trump shocked the world with a stunning electoral victory on Tuesday, despite the fact that Mrs Clinton won the popular vote by over 200,000.

Venture is a ‘Web Summit’s premier conference for VCs’ and the event was inaugurated by the Portuguese Prime Minister on Thursday. The one-day event, saw more than 500 attendees from a variety of different business sectors.

7 Deadly Sins of Trading Contracts For Difference

UK Investor Magazine
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7 Deadly Sins of Trading Contracts For Difference

We are presenting the biggest short-term trading mistakes made by investors and pairing them up with the 7 Deadly Sins.

The aim of this report is to enhance your understanding of the most common mistakes investors make when trading short-term strategies.
Reading this report may or may not instantly increase your investing profitability but it will put you on the path to a more efficient strategy.
Psychology is a big aspect of trading and many mistakes can be directly linked to emotions associated with the 7 Deadly Sins:
  • Envy
  • Wrath
  • Greed
  • Gluttony
  • Sloth
  • Pride
  • Lust
A solid understanding of the sins and their associated trading mistakes may be highly beneficial in perfecting your investing strategy.
This article is available for free for a limited time only.

Download ‘7 Deadly Sins of Trading Contracts For Difference’ for free now.
A copy will be emailed to you immediately.

By submitting my details I consent for information to be sent to me via the above contact details by Charles Hanover Investments Ltd. Contact may be made by email, post or telephone call. Any information provided is not an offer to enter into any transaction and Charles Hanover Investments Ltd will accept no responsibility for any loss incurred by acting on this information. By ticking the box below I confirm I have read and agree to the Research Terms,Terms of Business and have read and understood the Disclaimer, Privacy and Order Execution Policy.

Disclaimer: This report is for your information only. The information included is general in nature and is not in any form a recommendation to enter into any transaction nor does it constitute an offer. Depending on specific objectives and financial position the research may be unsuitable for certain investors. Charles Hanover Investments or Equitrade Markets will not accept any responsibility for any losses, including, without limitation, any consequential loss, which may be incurred by acting upon the contents of this report. Although the upmost care is taken to ensure the accuracy of this report information contained may not be entirely complete and accurate and Charles Hanover Investments or Equitrade Markets will not be held liable for any inaccuracies.

Risk Warning: Trading Contracts for Differences (CFDs), Futures and spread betting carries a high level of risk to your capital, and is not suitable for all investors. Only speculate with money you can afford to lose. Trading or placing any bets can result in consumers incurring liabilities in excess of their initial stake. Please ensure you fully understand the risks, and seek independent advice if necessary. Charles Hanover Investments is a trading name of Equitrade Markets Ltd, a company authorised and regulated by the Financial Conduct Authority for the conduct of investment business in Shares, Spread Betting, CFDs, Futures, Options and Rolling Spot Foreign Exchange.

Sainsbury’s report 9% fall in profits

Nicole Jeary
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0
Sainsbury’s report 9% fall in profits

Sainsbury’s reported a 9 percent fall in profits for the first-half of the year, sending shares down in mid-morning trading.

Profits fell to £277 million, with alongside a 1 percent fall in like-for-like sales in the 28 weeks leading to the end of September.

However, total group revenue rose by 1.8 percent to £12.6 billion over the same period, facilitated by strong online growth. Sainsbury’s also announced the opening of 16 new smaller convenience locations.

Sainsbury’s cited “price pressures” as a key driver of the downturn in profit, despite an overall strong market. As a result of the Brexit-related weakness in the pound, retailers across the UK anticipate a rise in costs.

In spite of disappointing numbers, chief executive Mike Coupe remained positive about the company’s prospects. He assured that the supermarket had been seeing “good progress” in regards to their UK retail strategy.

In a statement, Coupe commented:

“We have invested in the quality of our products while reducing prices on everyday items, delivering volume growth and outperforming the market in customer service and availability.”

Supermarkets have already begun raising the prices of certain products in response to sterling weakness, including Unilever items and Walkers crisps. According to research conducted by The Guardian and MySupermarket, Sainsbury’s have hiked prices for Unilever products by the biggest percentage so far.

Earlier in the year, Sainsbury’s acquired Argos-owned Home Retail Group in a bid to expand its non-food related produce in its stores. Mr Coupe continued:

“By Christmas we will open 30 Argos digital stores and create a further 30 Argos digital collection points in our supermarkets.”

Sainsbury’s has announced its intention to incorporate 250 Argos concessions in its supermarket branches across the next three years.
Shares in the supermarket dropped by over 5 percent in early morning trading, currently down 3.64 percent at 246.20 (1322GMT).

Market upset remains minor as Republicans win across the board in US elections

Katy Fleiner
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Market upset remains minor as Republicans win across the board in US elections
The Republican party has successfully secured a majority in the US Senate, the US House and saw their candidate Donald Trump being voted in as President Elect in the 2016 US Election. While European Stock markets fell in pre-trading hours, as Trumps likely victory slowly became clear, the new President Elect’s speech this morning installed new confidence, leading to an easing of the initial upset.
Donald Trump wins US Election
Donald Trump has officially secured a majority of votes in the 2016 US Presidential Election. Having won the swing state Florida, as well as the usual Democrats strong-hold Pennsylvania, Trump went ahead of Clinton in the early morning hours and became the next US President Elect with a total of 58,844,024 votes. The Republican Party also celebrated a victory in the US Senate as well as the US House, securing a majority of seats in both top US political institutions.
European Stock Market upset remains minor
European Stock Markets dropped initially during the early morning hours. FTSE100 futures fell as much as 4.5% in pre-market trading. However, Trump’s rather modest and ‘reasonable’ victory speech proved reassuring to investors. European Stock markets recovered a great part of their losses in the first hour after market open and have since only fallen modestly. The FTSE 100 is currently loosing 0.7% on the day. The CAC 40 index is down 1.68%. Germany’s DAX has lost 1.56% since market open.
Gold is the real winner
Gold and other precious metals rallied in the early morning hours as investors fled to save haven assets. Since then gold and silver prices have retracted only modestly. The gold price currently stands at US$ 1,302.50 per ounce, up 2.2%.
Market volatility remains short lived
While the early morning hours saw some upset in the stock and commodity markets, first evidence shows that market volatility due to Trump’s victory may only be short lived. His next moves, coming speeches and developments will still be watched closely.
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