Morning Round-Up: Treasury report on Brexit, Asian shares slip, Business secretary at world steel summit

Miranda Wadham
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Morning Round-Up: Treasury report on Brexit, Asian shares slip, Business secretary at world steel summit
Brexit will “leave UK poorer”, says Treasury

The Treasury is due to release a 200-page report today with the conclusion that a Brexit would be dismal for Britain’s future.

It warn that Britain’s national income could be 6 percent smaller by 2030 if the UK leaves the European Union, with the size of the cut in GDP being the equivalent of about £4,300 a year for every household.

In an article for the Times on Monday the chancellor wrote: “The conclusion is clear for Britain’s economy and for families – leaving the EU would be the most extraordinary self-inflicted wound.” Asian shares slip on OPEC deal failure Asian shares were down across the board on Monday, with Tokyo’s Nikkei leading the way down 3.40 percent. All Asian markets closed in the red, with Shanghai Composite down 1.44 percent and 0.73 percent. The poor sentiment spread to European markets upon open this morning, with the FTSE currently down 0.54 percent, the CAC40 down 0.49 percent and the DAX down 0.27 percent (0921GMT). Business secretary attends world steel summit in Brussels In the wake of the sale of Tata Steel’s UK plants, business secretary Sajid Javid will hold talks in Brussels with 27 nations to “seek solutions to the overcapacity crisis”. The sale of Tata Steel’s plants, which were reportedly losing over £1 million per day, may result in the loss of thousands of jobs and has led to the government being urged to partly privatise Britain’s waning steel industry. The talks will seek to work out how governments can “facilitate market-driven industry restructuring” and aims to “agree on steps to reduce competition-distorting policies”. 
18/04/2016

Oil prices sink after OPEC talks collapse under Saudi-Iran tensions

Miranda Wadham
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Oil prices sink after OPEC talks collapse under Saudi-Iran tensions
Oil prices sunk on Monday after a major meeting in Qatar designed to freeze output failed. After months of hope for the outcome of the meeting, the disappointing failure will call OPEC’s credibility into question, as well as further flooding the market with unwanted oil. The meeting, which included most OPEC countries – with the exception of Iran – as well as some non-OPEC countries, fell to pieces after Saudi Arabia refused to sign a price freeze without the participation of rival Iran. According to reports, Saudi Arabia said an oil freeze agreement must be signed by all 13 OPEC members – including Iran, who was never signed up to attend the meeting. The turnaround move by Saudi suggests that rivalry between the two countries in the Middle East appears to be more important to Riyadh than the freezing of oil output. Iran have said that they will continue to increase output, following the lifting of sanctions against it: “As we’re not going to sign anything, and as we’re not part of the decision to freeze output, we ultimately decided it was not necessary to send a representative,” the Iranian government said. Qatari Energy Minister Mohammed Saleh al-Sada stated that consultation will continue between the countries until the June OPEC meeting: “All participating countries will consult among themselves and with others,” he said. Oil prices tanked on the news of the failure, with Brent Crude falling around 7 percent, before recovering to $41.23 a barrel. US Crude also saw a similar fall and recovery, now standing at $38.46 (0851GMT).

Could Haughton Honey be a sweet deal for investors?

Miranda Wadham
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Could Haughton Honey be a sweet deal for investors?

For investors looking for a sweet deal, Haughton Honey might be the place to start; the premium honey brand has launched an £80,000 crowdfunding campaign to attract investment, boost growth and take the business to the next level.

Since launching in 2014, Cheshire-based Haughton Honey has steadily expanded and has been snapped up and stocked by the likes of Booths and The Protein Works. With the UK honey market worth £119.5 million per year, this fast-paced business is clearly expanding into a receptive market.

Since starting the business two years ago the company now has more than 70 regional sales outlets in the UK, and sales of jams, spreads and honey grew 5.9 percent in the year up to October 2015. As Haughton Honey’s founder Crispin Reeves says, “forget spreading the love – loving the spread is more accurate at the moment.”

Speaking about his decision to attract investment through crowdfunding platform Crowdcube, Reeves said:

“During 2015 we packed and sold over 8,000kg of English honey and anticipate requiring more than double that amount during 2016. Now is the time to seek additional investment to support the growth of Haughton Honey so that we can take on more bee farmers, increase our honey production to satisfy our growing month-on-month demand, and hopefully achieve a listing with a second premium multiple retailer.”

Haughton Honey bottles raw honey straight from the hive, which is cold extracted and never pasteurised – so it retains all of the natural enzymes and proteins that make English honey so special. The product is 100% natural and pure, and features traces of dandelion, chestnut, blackberry, clover and other wildflowers.

A series of rewards are on offer for those who invest in Haughton Honey, including discounts, honey, bee farming experiences, and hotel, restaurant and cookery school vouchers. For more information, visit their crowdfunding page here. 

Miranda Wadham on 15/04/2016

Morning Round-Up: Chinese economy slows, VW lose market share, IKEA sees operational change

Miranda Wadham
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Morning Round-Up: Chinese economy slows, VW lose market share, IKEA sees operational change
Chinese economy slows, but future looks brighter Growth in the Chinese economy slowed to 6.7 percent over the first quarter of the year, its slowest rate since 2009. However, other figures from the Chinese government suggest stimulating measures may be beginning to have an effect. New debt seems to be prompting a recovery in factory activity, investment and household spending after Chinese banks extended 1.37 trillion yuan in net new yuan loans in March, nearly double the previous month’s lending. Investment in industrial assets and infrastructure jumped 10.7 percent on the same period last year, with household spending also increasing. Volkswagen sales hit by scandal It seems that Volkswagen have failed to counter the negative image produced by its emissions scandal, seeing demand for its branded motors fall by 1.6 percent in March. Despite European car sales rising by 5.7% over the last month, Volkswagen’s brands, including mass-market Skoda and up-market Audi, accounted for 23.4 percent of new registrations in the three months ended March versus 24.4 percent. However, the German company did see some growth, with European sales for the entire group rising by 2.3 percent. Volkswagen (ETR:VOW) shares have fallen a further 1.75 percent on the news, to 126.05 (1001GMT). Major changes set to split up IKEA Major changes are due to be made to the structure of Swedish furniture company IKEA, splitting up the company in order to manage its increasing growth. IKEA are set to transfer ownership of some operating parts of the company to the smaller firm who owns the IKEA brand. Inter IKEA will now take control of design, manufacturing and logistics, massively increasing its role and fundamentally changing the way IKEA is organised. Some critics say this will hinder the traditionally smooth operation of the furniture company, who have been running in this way for the past 30 years and become a household name in the process. 
15/04/2016

BP’s annual meeting hit by shareholder revolt

Miranda Wadham
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BP’s annual meeting hit by shareholder revolt

BP’s annual general meeting is taking place in London today, with the main topic of conversation being the proposed 20 percent pay rise for chief executive Bob Dudley.

Shareholders are concerned over the decision to give its CEO such a big rise during a difficult time for the company, which has been plagued by job cuts and falling profits.

Aberdeen Asset Management and Royal London Asset Management are amongst shareholders considering voting against the move, which will take Mr Dudley’s salary package to £14 million. Carl-Henric Svanberg, BP’s chairman, spoke at the AGM today to reassure shareholders that their voices were being heard: “They are seeking change in the way we should approach this in the future… But let me be clear. We hear you. We will sit down with our largest shareholders to make sure we understand their concerns and return to seek your support for a renewed policy.” 14/04/2016

BREAKING: MPC hold rates at 0.5% for another month

Miranda Wadham
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BREAKING: MPC hold rates at 0.5% for another month
The Bank of England voted unanimously to maintain rates at their record low of 0.5 percent at their monthly meeting on Wednesday. The EU referendum weighed heavily on the minds of Monetary Policy Committee members, with the minutes saying: “EU referendum may cause softening in first half UK growth, MPC will react more cautiously to data before EU vote”. The minutes also mentioned the implication of Brexit on longer-term monetary policy, saying that it “may prompt an extended period of uncertainty and may have a significant impact on pound and asset prices, pushing down demand in the short term”. It is clear from today’s minutes that a rate rise is extremely unlikely before the EU referendum on the 23rd June. In terms of inflation, twelve-month CPI increased to 0.5 percent in March but remains well below the 2 percent inflation target, largely due to flagging energy and food prices. Globally, the MPC acknowledged that the risks from China have lessened somewhat, but that GDP figures from the US remain disappointing. The UK economy has picked up a little, helped by a moderate rise in oil prices and strengthening of the pound.

Spreadex named Best Spread Betting Provider for 2016 at the City of London Wealth Management Awards

UK Investor Magazine
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Spreadex named Best Spread Betting Provider for 2016 at the City of London Wealth Management Awards
Spreadex has been named as Best Spread Betting Provider at the 2016 City of London Wealth Management Awards. The firm was presented with the award by BBC newsreader Sophie Raworth at the ceremony at The Guildhall, London. The accolade follows Spreadex being four times named as Best Spread Betting Firm for Customer Service in the Investment Trends awards. Spreadex Marketing Communications Manager Andy MacKenzie said: “We have improved our trading platform with a number of developments in recent years and we are delighted to receive this recognition. “Over the years we have built up a strong reputation for our personal service, account management, credit and margin offering, and specialist AIM stock provision so it’s very reassuring that traders have been voting for us as their number one provider.” Spreadex was formed in 1999 and now employs more than 120 people, offering both financial spread betting and sports spread betting from one account. About Spreadex: Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management. About the awards: The purpose of the City of London Wealth Management Awards is to recognise and promote quality of service from Wealth Management companies and individuals. Winners are determined by a public online vote which took place over a two week period in March 2016. The poll was reviewed by an independent panel of judges. You can find out more about Spreadex here. Editor’s note: In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved. In relation to fixed odds, Spreadex Ltd is licensed and regulated by the Gambling Commission under licence number 000-008835-R-104580-004.

Morning Round-Up: Burberry sales slow, Unilever competing, Singapore ease monetary policy

Miranda Wadham
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Morning Round-Up: Burberry sales slow, Unilever competing, Singapore ease monetary policy
Burberry feel impact of Europe terror attacks Burberry (LON:BRBY) have become the latest company to have sales impacted by terror attacks in Europe, reporting a revenue fall of 1 percent for the second half of the year. The group cited a drop in tourist spending in Europe and weaker demand in Hong Kong as reasons for the disappointing figures. Chief Executive Officer said that the externam business climate was “challenging”, and confirmed that it may impact profit this year. Adjusted profit before tax is likely to be broadly in line with analysts’ expectations, which range from 401 million to 443 million pounds, but the full-year forecast may be lowered. Burberry shares have fallen over 6 percent on the news, currently trading at 1,264 (0811GMT). Unilever surviving in tougher market Ango-Dutch consumer goods maker Unilever (LON:ULVR) reported sales growth in line with expectations for the first quarter, despite competing in a tougher market. Underlying sales increased 4.7 percent, just above the 4.6 percent estimated by analysts, with volume rising by 2.6 percent. “What we’ve got is a very, very mixed pricing environment around the world, it’s very important to focus in these times on volume and not price,” Chief Financial Officer Graeme Pitkethly told Bloomberg. However, turnover fell 2 percent to 12.5 billion euros as a result of weak currencies globally. Shares have fallen 0.77 percent on the news, trading at 3,237 (0817GMT). Singapore reverts to 2008-style monetary policy The Singapore dollar has fallen, dragging down other Asian currencies, after the country’s central bank unexpectedly reverted to 2008-style monetary policy in order to prompt growth. The Monetary Authority of Singapore moved to a neutral policy of zero percent appreciation in the exchange rate, causing the Singapore dollar fell 0.9 percent to 1.3633 per U.S. dollar. The move comes just days after the IMF warned of a period of prolonged slow growth globally, and after Singapore’s services industry, which makes up about two-thirds of the economy, contracted an annualized 3.8 percent in the first quarter from the previous three months   
14/04/2016

OPEC cuts demand forecast, but supply increases

Miranda Wadham
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OPEC cuts demand forecast, but supply increases
The Organization of the Petroleum Exporting Countries (OPEC) how lowered its forecast for demand worldwide, citing a slowdown in Latin America and milder winter temperatures. OPEC dropped its demand forecast by 50,000 barrels a day, despite an increase in output – OPEC pumped 32.25 million bpd in March, the group said citing secondary sources, up about 15,000 bpd from February. Their monthly report suggests a 790,000-bpd excess supply in 2016 if output continues at the current rate, up by 30,000 on last month’s report. OPEC added that the oil market is likely to get a boost form the summer “driving season”, but warned: “However, unlike in the previous year, OECD gasoil demand may not have sufficient strength to offset the continued slowdown in non-OECD consumption,” it added. The price of oil and excess demand are due to be discussed at a summit held in Qatar in the coming weeks, which if an agreement is reached, may bring stability to prices. 
13/04/2016

Morning Round-Up: Mossack Fonseca raided, Asian shares up on China data, 16 weeks to sell Tata plants

Miranda Wadham
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0
Morning Round-Up: Mossack Fonseca raided, Asian shares up on China data, 16 weeks to sell Tata plants

Mossack Fonseca raided by police after Panama Papers scandal

Mossack Fonseca, the law firm in the Panama at the centre of Panama Papers scandal, has had its offices raided by police .

Police and officials from an organised crime unit carried out the operation “without incident or interference”, in order to “obtain documentation linked to the information published in news articles that establish the use of the firm in illicit activities”.

Mossack Fonseca have claimed that they have been the victim of a data hack, and that the papers released on how wealthy people have used offshore firms to avoid paying tax have been misconstrued by the media.

Asian shares up on China data

Better-than-expected trade data from China has caused Asian shares to jump to near 2016 highs.

China reported an 11.5 percent rise in exports in March compared to a year earlier, well above market forecasts and offering hope of stability from the world’s second largest economy.

The Shanghai Composite is up 1.42 percent, with the Nikkei up 2.24 percent and the Hang Seng up 2.87 percent.

16 weeks to find a buyer for Tata Steel plants

Shadow business secretary has warned that there are just 16 weeks to save Tata Steel’s UK plants, with Tata wishing to exit the UK within four months. Ms Eagle said Labour had learned that the company are hoping to find a buyer within eight weeks, with another eight weeks for due diligence. However, business secretary Sajid Javid has claimed he has persuaded Tata to keep the bidding open until a buyer is found. 
13/04/2016
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