SoftBank reveal $4.4bn buyback

Safiya Bashir
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SoftBank reveal $4.4bn buyback
Shares in the Japanese Telecoms conglomerate SoftBank Group soared by 16% on Tuesday following the announcement of the biggest ever buyback, purchasing 500 billion yen ($4.4 billion) worth of its own shares. This buyback is an attempt to boost investor confidence, a move which has been welcomed. Analyst at SMBC Friend Research Center Ltd, Naoki Yokota, has said, “SoftBank shares have become so cheap now. For the company to say it’s buying back at this time will have an ‘announcement effect’,” SoftBank have said that it would fund this buyback through a combination of the proceeds of asset sales and cash-in-hand. Shares closed on Monday up 5.7%

FTSE up as oil prices rebound

Safiya Bashir
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FTSE up as oil prices rebound
In early trading, the FTSE 100 rose 27 points to 5,851 with BP rising the most with a 4.1% rise. Since the start of 2016, FTSE has been characterized by constant volatility over banking stocks, commodity prices and global growth, causing the FTSE 100 to have not yet managed to string together three straight days of gains. Whilst OPEC has so far resisted to reduce production in the saturated market, there have recently been fresh hopes of production cut, which have boosted oil companies. US light crude is up to $30.94 whilst Brent crude is up 5.5% to $35.22.

‘Reshoring’: why manufacturers are moving back home

Safiya Bashir
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0
‘Reshoring’: why manufacturers are moving back home
Since the late 1970s, manufacturing production was commonly offshored from developed nations to countries including China and India. At the time, these cost-saving decisions proved controversial and tough on the UK work force, with Burberry moving 300 jobs to China from their Rotherham factory despite their ‘Made in Britain’ ethos. This movement was seen all over the UK due to it’s immense economic benefits. Moving work to low-cost countries has created many jobs and raised the standard of living, whilst companies have found higher profits and consumers are able to enjoy goods at much lower prices. This move was not beneficial to all however, with huge losses of jobs in developed countries leading to 86% of American’s polling that they believed offshoring jobs were the main cause for their country’s economic problems. However in recent years, we have seen a significant reverse in offshoring with a return of manufacturing jobs to the West. This ‘reshoring’ of jobs back to the countries of origin appear to be due to rising wages and costs in countries such as China, where wages have been increasing 10-20% a year for the past decade. This was felt by Coventry-based automotive component supplier, with chairman David Keene commenting; “We went there because it was going to be cheap, but cheap has turned into ever-increasing prices because wages and other costs are rising rapidly… The automotive companies are getting faster and faster in their cycle of delivering products. There is also a lot of personalisation going on. If you have got a supply chain that takes months to bring stuff in, you can’t be flexible.” With shipping costs doubling over the past 18 months and a steady increase in wages, it is no surprise that there has been an 11% increase of manufacturers moving back to the UK. These impacts have been felt by large UK retailer John Lewis, who now aims to increase the sales of UK made jobs by 15% in the next two years. Whilst countries like Vietnam, Indonesia and The Philippines still offer low wages, they lack China’s efficiency, scale and supply chains hence the rush to return back home.   
Safiya Bashir on 16/02/2016
   

FTSE 250 Property Stock Focused on Residential Property

UK Investor Magazine
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FTSE 250 Property Stock Focused on Residential Property

Find out why this property stock is an interesting investment in the UK private renting market.

Could this company be the perfect stock to add to your portfolio on the recent stock market dip?

Many property companies listed in the UK focus on either commercial real estate and the yielded rental income or on residential house builders who sell the properties once completed.

This report presents this company’s business model of holding onto residential properties and achieving significant yields and digs down into their fundamentals:

  • Strong Growth Areas

  • Cost Cutting Exercises

  • Rental Growth Rates

  • Tax Considerations

  • Residential Property Market Dynamics

 

Download this report now for free for a limited time.

A copy will be emailed to you immediately.

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

Cameron’s final push for a deal to keep Britain in the EU

Safiya Bashir
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Cameron’s final push for a deal to keep Britain in the EU
The prime minster is back in Brussels, hoping to gain support for his EU reform demands ahead of a two day summit of EU leaders, beginning on Thursday. The EU Council President said on Monday that he believed the future of the EU is at risk of major change;
“This is a critical moment. It is high time we started listening to each other’s arguments more than to our own. It is natural in negotiations that positions harden, as we get closer to crunch time but the risk of break-up is real because this process is indeed very fragile. Handle with care. What is broken cannot be mended.” Cameron and the president of the European council, Martin Schulz, are in talks this morning hoping to shape the UK’s deals before European leaders meet to discuss later this week. The prime minister has promised a referendum by the end of 2017.  
 

Oil surges on hopes of Saudi-Russian meeting

Miranda Wadham
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Oil surges on hopes of Saudi-Russian meeting
Oil prices surged 6 percent this morning on hopes of a meeting between OPEC oil ministers, which may end the global supply glut that has had an unprecedented effect on commodities. Venezuela’s Oil Minister Eulogio Del Pino has in recent weeks been visiting major oil producers to gather support for a meeting to freeze production levels, enabling demand to catch up with supply in the market. Oil prices have jumped in recent weeks as rumours of a positive outcome have emerged. Today it was announced that Saudi Arabian oil minister Ali al-Naimi is in talks with Russia’s Alexander Novakin Doha, according to a Qatar Energy Ministry adviser. The closed-door meeting started in Doha, the results of which will be released to the press on Monday. Brent crude was up $1.87 at $35.26 a barrel by 0824 GMT, extending its 11-percent rally from the past two days. U.S. crude was up $1.49 at $30.93. 
16/02/2016

Anglo American to sell iron unit after unprecedented yearly loss

Miranda Wadham
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Anglo American to sell iron unit after unprecedented yearly loss

Mining giant Anglo American has been hit by falling commodity prices, seeing a pre-tax loss of $5.5 billion for 2015.

This was double the amount reported in 2014, alongside a 55 percent drop in underlying core profit. Anglo American had been expected by analysts to post annual earnings before interest and tax of $1.5 billion.

In a statement, CEO Mark Cutifani acknowledged the effect the economy has had on commodity prices recently, saying that they have presented “significant challenges” to the group. In order to keep its head above water, the company have announced plans to sell its iron ore unit, Kumba Iron Ore, of which it owns 70 percent. “The company has initiated a review to consider options to exit from KIO at the appropriate time, including a potential spin-out,” the company said in statement. Anglo American (LON:AAL) are currently trading down 0.03 percent at 392.30, after a rocky morning (0952GMT). 
16/02/2016

All Leisure Group to consider delisting after fall in passengers

Miranda Wadham
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All Leisure Group to consider delisting after fall in passengers
Shares in travel company All Leisure Group have dropped nearly 50 percent this morning, after final year results were impacted by a decline in passenger numbers and the temporary loss of two cruise ships. The Group made an overall Profit after Taxation of £0.5m, compared to a loss of £7.5m in the prior year. However, revenue was lower due to dry-dock periods for the Voyager and Minerva vessels, as well as a 6 percent decline in passengers due to the impact of geo-political unrest in the Middle East. Commenting on the results, Chairman Roger Allard said: “The board is actively considering delisting from the AIM market. It is mindful of the on-going costs of remaining as a publicly quoted company and the limited current and potential benefits available to the company. A further announcement will be made in due course.” All Leisure Group (LON:ALLG) are currently trading down 43.18 percent at 3.125 (0948GMT). 
15/02/2016

London to remain as HSBC’s headquarters

Miranda Wadham
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London to remain as HSBC’s headquarters
HSBC Holdings have announced their decision to keep its headquarters in the UK, after a ten-month review in which it considered a move to Hong Kong. HSBC investigated the move in order to avoid the cost of remaining in the UK, where a tax imposed post-recession cost the bank $1.1 billion in 2014. Hong Kong is the group’s main revenue-generator, and would avoid the UK government’s stricter regulations. “We had no negotiation with the government,” HSBC Chairman Douglas Flint told BBC radio on Monday. “The government was very well aware of our view, indeed the view of many other people who commented on it, but there certainly was no pressure put on, or no negotiation”. The bank has now confirmed that it will remain in the UK, adding that London “offered the best outcome for our customers and shareholders”. This will be seen as a vote of confidence for the UK during a turbulent time in the run-up to an EU referendum. “We had no negotiation with the government,” HSBC Chairman Douglas Flint told BBC radio on Monday. “The government was very well aware of our view, indeed the view of many other people who commented on it (the bank levy), but there certainly was no pressure put on, or no negotiation”. 
15/02/2016

Doubt falls on Abenomics as Japan’s economy shrinks 0.4 percent

Miranda Wadham
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0
Doubt falls on Abenomics as Japan’s economy shrinks 0.4 percent

Japan’s economy shrunk further in the last quarter of 2015, becoming the latest figure to call Prime Minister Abe’s economic policy into question.

Between October and December of last year the economy shrank by 0.4 percent compared with the previous quarter, below expectations of 0.3 percent. A slew of recent economic figures have pointed to a decline in Japanese economy, including weaker domestic demand and slower investment in housing. Furthermore, in the last two weeks the Japanese government lowered their interest rates into negative territory, and saw Japanese stocks enter a bear market after tumbling over 8 percent in two days. Prime Minister Abe has been pursuing an economic policy known as ‘Abenomics’ since coming into power, using the ‘three arrows’ of expanding monetary supply, increasing government spending and implementing government reforms in order to combat Japan’s slowing economy. However, the latest sets of figures are further evidence that this plan may be failing to hit the mark. In Parliament on Monday, Abe made a statement seeking to reassure his country: “As we have agreed at G7 and G20, sudden currency moves are undesirable. I want the finance minister to closely monitor the situation and respond with appropriate measures as needed,” he told parliament on Monday. 
15/02/2016
 
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