Morning Round-Up: Scottish Power fined £18m, BP profits hit by oil, FTSE up

Miranda Wadham
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Morning Round-Up: Scottish Power fined £18m, BP profits hit by oil, FTSE up

Scottish Power fined further £18m

Energy firm Scottish Power have been ordered to pay an £18 million fine by regulator Ofgem.

A new computer system implemented several years ago led to 1 million complaints between June 2013 and December 2015. Ofgem said that the firm handled the situation inadequately, treating customers unfairly and poor complaint resolution.

The latest fine will send Scottish Power’s compensation total up to £48 million in total, after several separate fines for the same issue last year. The £18 million will go to vulnerable customers and charity.

Ofgem chief executive Dermot Nolan said “The £18m payment sends a strong message to all energy companies about the importance of treating consumers well at all times, including while new systems are put in place.” Low oil prices impact BP profits

Rock bottom oil prices have impacted heavily on oil giant BP (LON:BP), who sunk to a $485 million loss for the three months to March.

The loss is compared to a $2.1 billion profit for the same period last year, but an improvement on the $2.2 billion loss for the three months to December. Low oil prices had an effect, as did the $917 million charge for the 2010 Gulf of Mexico spill. The results were better than expected however, pushing share prices up 3.83 percent to 374.20 (1019GMT). FTSE rises on earnings reports The FTSE opened higher this morning after results from British companies such as Whitbread pushed the market up. Whitbread, owner of both the Costa Coffee and Premier Inn hotel chains, reported a rise in profits and saw share price rise 3.3 percent. The FTSE is currently up 0.42 percent at 6287.68 (1025GMT). 
26/04/2016
 
 

Standard Chartered shares jump as bank shows signs of progress

Miranda Wadham
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Standard Chartered shares jump as bank shows signs of progress
Troubled bank Standard Chartered saw shares jump nearly 8 percent this morning, after results released today showed chief executive Bill Winters may be beginning to turn the business around. Profits in the first three months of this year fell 59 percent on a year ago, with a pretax profit of $589 million – after reporting its first loss in 26 years in 2015. CEO Bill Winters remained positive, however: “Although trading conditions in the first quarter remained challenging, we continue to make good progress on our strategic objectives. “The management team is in place, we are taking action to improve recent income trends, managing costs tightly, progressing on key investments, making early progress on the exit of the liquidation portfolio, and maintaining strong levels of capital and liquidity.” It warned that group performance would remain “subdued” for the full year as the company continues to implement its turnaround plan.

Buy Rating: London Listed Miner Shaking Off Commodity Downturn

UK Investor Magazine
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Buy Rating: London Listed Miner Shaking Off Commodity Downturn

Buy Note: London mining company reducing debt and cutting costs

For those seeking a mining company with a solid financial position to benefit from an upturn in commodities, this may be the answer.

The culmination of the company’s efforts on the capital and cost savings fronts was well received in the cash flow statement. The company reported an increase in net cash flow from its operations for the half of 82% on the first half 2015 result, to US$465 million.

Key Considerations:

  • Weak dollar to act as a tailwind

  • Implemented significant cost reductions

  • Strong balance sheet

  • Net debt down considerably

Download this report now for free for a limited time.

Copyright Fat Prophets® is a registered trade mark/trading name of Mint Financial (UK) Limited, which is authorised and regulated by the Financial Conduct Authority, Number 220591, registered in England and Wales, Number 04255908, with a registered office at 100 Fenchurch Street, London, EC3M 5JD. (www.fatprophets.co.uk)
DISCLAIMER The views and opinions expressed herein are for information purposes only. They are subject to change without notice, and do not take into account the specific investment objectives, financial situation or individual needs of any particular person. They should not be viewed as recommendations, independent research, or advice of any kind. The views accurately reflect the personal views of the author. They are not personal recommendations and should not be regarded as solicitations or offers to buy or sell any of the securities or instruments mentioned. The views are based on public information that we considers reliable but does not represent that the information contained herein is accurate or complete. With investment comes risk. The price and value of investments mentioned and income arising from them may fluctuate. Past performance is not an indicator of future results, and future returns are not guaranteed. We acknowledge an individual’s tax situation is unique and tax legislation may be subject to change in the future

Saudi Aramco to float 5 percent on the stock market

Miranda Wadham
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Saudi Aramco to float 5 percent on the stock market
The Saudi Arabian Oil Co will be opening itself up to privatisation for the first time, according to deputy crown prince Prince Mohammed bin Salman. The world’s largest energy company, known as Saudi ARAMCO, is worth around $2.5 trillion, and will be turned into a holding company with publicly listed subsidiaries. The move is designed to promote transparency within a company that dwarvfs all other energy firms, with around 5 percent being listed both in Saudi Arabia and another market. The crown Prince spoke in an interview with the Dubai-based television network Al Arabiya, saying that, “if one percent of Aramco is offered to the market – just one percent- it will be the biggest IPO on earth.” Saudi ARAMCO has crude reserves of 265 billion barrels, more than 15 percent of global oil deposits, and produces more than 10 million barrels per day. 
25/04/2017

Crowd2Fund leads the way with launch of Innovative Finance ISA app

Miranda Wadham
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Crowd2Fund leads the way with launch of Innovative Finance ISA app
Crowd2Fund, one of the UK’s leading peer-to-peer platforms, has launched its Innovative Finance ISA mobile app, allowing consumers and investors to easily and quickly manage their ISA from the comfort of their mobile phone. The iOS powered app allows savers and investors to build their Innovative Finance ISA portfolio and manage existing investments more conveniently than other platforms. The app allows investors to manage all parts of their Crowd2Fund account; it is also automatically integrated with Crowd2Fund’s global investor Exchange, enabling the crowd to access their capital by selling their investments to others. The mobile app marks a considerable step in bringing crowdfunding technology up to date with people’s day to day lives and evolving consumer needs.
The use of mobile apps in the financial industry is continually on the rise, with research by the British Banking Association showing that consumers used mobile devices to check their current accounts 895 million times in 2015. As the sector grows and becomes more competitive, to remain compelling platforms will have to give their users an improved user experience, greater ease of use and better functionality. Whilst mostpeer-to-peer lenders and equity crowdfunding platforms have kept to access solely via desktop, Crowd2Fund have broken the mold by becoming the first to open access on mobile for its members.
According to Crowd2Fund CEO Chris Hancock, “the financial services sector is undergoing rapid transformational change”.
“Mobile FinTech is an area we expect to grow rapidly during 2016, and Crowd2Fund are proud to be the first platform to take this bold step with the aim to provide customers with a modern and flexible experience suited to their needs,” he added.
The application seamlessly integrates with the platform wallet management system, real time portfolio reporting and ability to make investments with the simple touch of a screen. Further features in the pipeline include Apple Pay, which Crowd2Fund expect will make the investing process even smoother and turn investing and saving into a more frequent activity, with lower investment amounts but much higher volumes. Crowd2Fund’s ambition is to empower its users to manage their P2P investments just as we check emails, bank statements, social media and news apps on an hourly basis; the Innovative Finance ISA app offers an experience which makes investing a fulfilling and pain free experience.
For more information, visit crowd2fund.com


Miranda Wadham on 25/04/2016








                












Midday flash: markets and currencies down before Fed meeting, GBP up                    







Miranda Wadham

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Midday flash: markets and currencies down before Fed meeting, GBP up





Markets were cautious on Monday ahead of central bank meetings in both the US and Japan later this week.
Another rate decision is expected by the Federal Reserve on Wednesday, sparking intense interest from investors. The Bank of Japan is widely expected to push the Japanese interest rate further into negative territory, with both expected decisions causing hesitance in the markets.
Both emerging market stocks and currencies have fallen, after a retreat in oil prices. The yuan weakened for a fourth day in Shanghai, while South Korea’s won had its biggest two-day drop since February. Against the euro, the dollar fell to $1.1256, at the weaker end of a 10-cent range it has held for a year. However, the pound has gained strength against the euro for the first time in six weeks, after opinion turns towards staying in the EU at the referendum in June.

25/04/2016
                












Full Fact: crowdfunding for a fact-checked EU referendum                    







Safiya Bashir

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Full Fact: crowdfunding for a fact-checked EU referendum





As the EU referendum on June 23rd ticks ever closer, the claws are coming out on either side of the debate. ‘Facts’, figures and opinions are being thrown left, right and centre from both sides, leaving many voters baffled and apathetic. A nation of confused voters are unlikely to be well-placed to make a decision that will have a profound effect on the lives of future generations – enter Full Fact, the fact-checking charity running a crowdfunding campaign to provide voters with non-partisan facts with which to make an informed decision.
According to Full Fact, 76 percent of people think it’s extremely important that MPs tell the truth – but, perhaps unsurprisingly, only 26 percent of people trust them to do so. So when it comes to making a decision on the referendum, which facts and figures are the nation supposed to listen to?
Full Fact are aiming to raise between £30,000 and £50,000 through a crowdfunding campaign on crowdfunder.co.uk, with total currently at nearly £40,000. All money donated goes towards hiring factcheckers, experts on the EU, people who can communicate complex concepts with simplicity and flair and covering volunteers expenses. Full Fact are working with with legal experts including professors from Cambridge, Durham and Oxford, top QCs, immigration experts from Oxford University’s Migration Observatory and other academics supported by the Economic and Social Research Council. Full Fact are fully funded by contributions and grants – they do not accept government funding.
Full Fact have provided political fact-checking services for many high-profile programmes including LBC Radio:
“The team at Full Fact proved an essential part of our online offering for one of the defining political events of the year. Their live blogging and instant scrutiny of the claims made by Nick Clegg and Nigel Farage provided an invaluable service for our audience and added real gravitas to our online offering,” said Tom Cheal, LBC’s political editor.
For more information on Full Fact’s findings on the EU referendum figures, visit Fullfact.org. To get involved and donate, visit their campaign page here.

25/04/2016
                












Rich List 2016: winners and losers                    







Safiya Bashir

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Rich List 2016: winners and losers





According to the official Rich List, compiled by the Sunday Times and released every April, the last year has not been kind to the world’s richest people – many of which saw the biggest drop in their fortunes since the 2008 financial crisis.
This year’s biggest faller was steel magnate Lakshmi Mittal, who has lost around 75 percent of his fortune since 2008 — with his net worth falling from £27.7 billion to £7.12 billion in 2016. The Queen also had a bad year, failing to make the top 300 for the second consecutive year.
Odey Asset Management founder Crispin Odey saw his wealth drop after Odey European fund’s worth fell by over 30 per cent in the last year, and Chelsea owner Roman Abramovich joined the list of losers after seeing his fortune drop to just £870 million.
However, winners include property tycoon brothers David and Simon Reuben, owners of London’s Millbank Tower and the John Lewis flagship store, whose wealth rose £3.4 billion in 2016. The inventor of the hoover and Rich List regular Sir James Dyson saw a 43 percent rise in wealth, making him the first self-made Briton to break the £5 billion barrier – and Denise Coates became Britain’s richest self-made woman, worth more than £3.7 billion after turning her small chain of betting shops into online gambling giant Bet365.
2016 was a great year for women, seeing a record 125 enter the rich list, but a tough year for everyone else; entrants had to have at least £103 million to make it on to the list, up from £100 million last year.

Miranda Wadham on 25/04/2016
                












Is state market intervention pushing Japan into trouble?                    







Safiya Bashir

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Is state market intervention pushing Japan into trouble?





The Bank of Japan has become one of the biggest shareholders in the Japanese stock markets, according to the latest research by Bloomberg.
The Nikkei 225 has fallen 8.4 percent this year, alongside a series of disappointing economic figures, giving many investors cause for concern; in an effort to stimulate Japan’s flagging economy, the Bank of Japan have been investing heavily in the Japanese stock index. Just how heavily, however, may raise eyebrows; the central bank now owns more Japanese blue-chips than BlackRock, the world’s largest money manager, and have become one of the top 10 shareholders in around 90 percent of the Nikkei 225 Stock Average.
Whilst central banks investing in the markets is a key stimulation measure, the BoJ’s growing influence in stocks risks distorting valuations and undermining efforts to improve corporate governance. Later this week, the central bank are expected to accelerate their ETF purchase programme to an annual rate of ¥7 trillion – meaning it could become the biggest shareholder in about 40 of the Nikkei 225’s companies by the end of 2017.
Whilst lawmakers have criticised the move, it has been repeatedly defended by governor Haruhiko Kuroda, meaning it is likely to continue. State intervention in stock markets has worked for several countries, but too much can raise stock valuations to dangerous levels – now is the time for investors to cross their fingers and hope that Japanese stock market isn’t heading for trouble.

25/04/2016
                












Morning Round-Up: BHS files for administration, Ball-Rexam sell assets, Sony down                    







Safiya Bashir

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Morning Round-Up: BHS files for administration, Ball-Rexam sell assets, Sony down






British Home Stores goes under


British high street retailer BHS will file for administration today, putting nearly 11,000 jobs at risk.


In a letter to staff, BHS owner Dominic Chappell said: “It is with a deep heart that I have to report, despite a massive effort from the team, we have been unable to secure a funder or a trade sale.”


Chappell, who leads retail consortium Retail Acquisitions, bought the failing chain from Sir Phillip Green for just £1.


Talks for a takeover with Sports Direct collapsed over the weekend, and a buyer will only be found if they are willing to take on BHS’s £571 million pension deficit.


Ball-Rexam to sell assets to Ardagh Group


Drinks can makers Ball Corp and Rexam Plc have agreed to sell assets to Luxembourg-based packaging maker Ardagh Group for about $3.42 billion, in a sale that includes 22 of both companies European manufacturing plants.


US-based Ball are planning a £4.4 billion takeover of Rexam, merging the world’s two largest beverage can makers by volume and triggering competition concerns from the European Commission.


Sony shares down 6 percent after earnings delay 


Electronics giant Sony closed down 6 percent on Monday, after a delay in its earnings release due to earthquakes in southwest Japan.


The company, who were due to release earnings this, have postponed to next month after uncertainties in its supply chain.


25/04/2016
                






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