Sales of new cars in the UK fell by nearly 10 percent in July, marking the industry’s fourth month of decline in a row.
New car registrations fell by 9.3 percent last month, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT). The SMMT said the market was increasingly hit by “growing uncertainty” over the plans for Brexit. New regulations on exporting vehicles that may come into force after Britain leaves the EU is likely to have a severe effect on carmakers in the UK. Just under 162,000 vehicles were sold last month. So far this year, 1.56 million cars have been sold, down 2.2 percent from a year earlier. Mike Hawes, SMMT chief executive, said: “The fall in consumer and business confidence is having a knock on effect on demand in the new car market and government must act quickly to provide concrete plans regarding Brexit. “While it’s encouraging to see record achievements for alternatively fuelled vehicles, consumers considering other fuel types will have undoubtedly been affected by the uncertainty surrounding the government’s clean air plans.”DFS shares jump on Sofology takeover deal
Shares in sofa retailer DFS (LON:DFS) jumped at market open on Thursday, after it announced the takeover of smaller rival Sofology.
The deal is initially expected to be worth £25 million, with DFS saying the acquisition would add another “strong distinctive brand” to its business.
The news comes after DFS issued a profit warning last month, causing shares to plunge by 22 percent last month. The company hopes that adding specialist retailer Sofology to the group will allow DFS to compete better in the market, adding another network of 37 stores in the UK and a strong web presence to the group’s portfolio.
Ian Filby, DFS chief executive, said: “While the UK furniture retail market continues to be very challenging, we remain focused on making strategic progress to strengthen our position in living room furniture.”
Shares in DFS are currently up 1.71 percent at 223.50 (1129GMT).
Tesla shares rise as revenue doubles in Q2
Shares in electric carmaker Tesla (NSADAQ:TSLA) rose over 8 percent in after-hours trading, after the company’s revenue almost doubled in the second quarter.
The company reported revenue of almost $2.8 billion, up from $1.3 billion during the same period last year. About $2.3 billion of the revenue during the quarter came from the firm’s automotive unit, the company’s best known business, a 93 percent increase on the same period in 2016.
However, the company’s costs, including for research and development and sales, rose 15 percent over the quarter causing overall losses to rise. Losses increased to $336 million, compared with $293 million last year.
Despite the mixed results, Tesla told shareholders it expects revenue to grow “significantly” in the second half of the year.
The firm have become increasingly well-known for their electric cars, delivering more than 47,000 of its earlier high-end Model S and Model X cars in the first half of 2017.
Shares in Tesla are currently up 1.98 percent at 325.89 (1111GMT).
UK construction sector slows sharply in July
The UK construction industry grew at a far weaker rate than expected in July, according to the latest IHS Markit figures.
The Markit/CIPS construction PMI number fell to 51.9 in July, a significant fall from 54.8 in June. However, anything above 50 signals growth.
Economists polled by Reuters predicted a much smaller dip in the headline number to 54.5.
Tim Moore from IHS Markit commented on the figure:
“July data reveals a growth slowdown in the UK construction sector, mainly driven by lower volumes of commercial development and a loss of momentum for house building.
“Worries about the economic outlook and heightened political uncertainty were key factors contributing to subdued demand.
“Construction firms reported that clients were more reluctant to spend and had opted to take longer in committing to new projects.”
The sector was dragged down by a sharp slowdown in commercial building, but boosted by an acceleration in the civil engineering sector.
Standard Chartered share price falls, despite 82pc increase in profits
Standard Chartered (LON:STAN) shares fell nearly 5 percent in early morning trading, despite reporting an 82 per cent rise in profits in the first half of the year.
Revenues rose 3 per cent at $7.2 billion, with loan impairments halved to $655 million. The group reported an 82 per cent rise in first-half profits to $1.8 billion, despite a 7 percent growth in operating expenses.
The bank saw a 5 per cent growth in its loan book, driven by growth in corporate finance, trade finance and mortgages.
Bill Winters, chief executive, said:
“We have had an encouraging start to 2017, making steady progress against our strategic objectives…we are stronger, leaner and becoming more efficient. We go into the second half of the year confident in our resilience and in our ability to generate better value for our clients and shareholders.”
However, shares fell 5 percent as investors express frustration at how long the bank’s turnaround it taking. Standard Chartered has suffered significantly over the last couple of years, after being hit by US fines in 2012.
Shares in the bank are currently down 4.51 percent at 808.50 (1028GMT).
Financial Management on Retirement: Making Your Pension Last
Calculating Minimum Budget
Calculating Ideal Budget
Allowing for margin of error and inflation
Plotting the course of retirement
How much income can your pension provider without the pot’s value being depleted?
There are all sorts of pension calculators available, provided via Government-run online resources, pension providers and investment-focused websites, that help gives a good approximation of the size of pension pot required to provide the desired retirement income.
They also helpfully tell us how much we have to start squirrelling away in a pension plan every month to achieve the size of final pot that will be required to achieve that income level. That’s often the slightly, to very, shocking part, especially for those who have nonchalantly strolled deep into their thirties or beyond before giving it much thought.
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Eurozone growth hits 0.6 percent in second quarter
The eurozone grew at a rate of 0.6 percent in the second quarter, just ahead of the revised figure for the previous three months.
According to the official figures from Eurostat, released on Tuesday, annual growth in the 19-country bloc stands at 2.1 percent higher than a year ago.
The second quarter growth figure is slightly above that of the first quarter growth, which was revised down from 0.6 percent to 0.5 percent. The figure comes just after those on Monday showed unemployment in the zone was at its lowest since 2009, adding to the increasing pile of evidence showing an improvement in the health of the Eurozone. On Friday, figures showed Spain’s economy, one of the worst-hit by the financial crisis, grew by 0.9 percent in the second quarter.Greggs shares volatile after mixed half year report
Greggs (LON:GRG) shares got off to a volatile start on Tuesday morning, after disclosing mixed results for the six months to July 1st.
Changes to the menu led to a significant increase in sales over the first half, up 7.4 percent to £453 million. Company managed shop like-for-like sales rose 3.4 percent, boosted by breakfast deals and healthier options such as salads and cold pressed juices.
However, net cash inflow from operating activities fell to £34 million from £44.7 million the previous year, and the firm ended the period with a cash balance of £19.9 million.
Pre-tax profit in the six months to 1 July 2017 came to £19.4 million, compared to £25.4 million the same period a year ago, due to exceptional costs of £8.7 billion for its overhaul.
The group have left their previous guidance for the full year unchanged, howevr, with the overall cost expected to arise from the reshaping of the business remaining in line with expectations.
Roger Whiteside, chief executive, commented: “The business has traded in line with our plans during the first half of the year. We have made good progress with our strategic plans and remain confident of future prospects although we remain alert to short-term pressures on consumers’ disposable income. Over the year as a whole we expect to deliver results in line with our previous expectations as well as further progress against our strategic plan.”
Shares in Greggs surged at market open, before sinking back to below their opening price. They are currently trading down 0.09 percent at 1,10075 (1053GMT).
UK manufacturing sector picks up in July – PMI
The UK manufacturing sector expanded at the start of the third quarter, showing a growth in industrial activity for the first time in three months.
According to the latest figures from IHS Markit, the Purchasing Managers’ Index figure for July rose to 5.1, up from 54.2 in June. Any figure above 50 signifies growth.
Whilst the number is a marked improvement on the weak results seen in June, the improvement in the pace of increase was still among the slowest registered over the past year. This was despite a significant boost from the trend in new export business, as foreign demand rose at the second-strongest rate in the series history, beaten only by that recorded in April 2010.
“UK manufacturing started the third quarter on a solid footing. The headline PMI signalled a growth acceleration for the first time in three months during July, as new order intakes were boosted by a near survey-record increase in new export business,” said Rob Dobson, director of IHS Markit.
Real Good Food shares drop 40pc after missing profit forecasts
Shares in cake decoration manufacturer Real Good Food (LON:RGD) dropped over 40 percent on Tuesday, after the has warned profits will not meet forecasts made just a month ago.
The company estimated underlying profits to be between £5 and £5.5 million in June, but said on Tuesday they would be reduced to around £2 million.
The announcement comes just after Real Good Food raised £15 million to fund an expansion drive. However, results for the year to March 2017 will now be affected by two substantial sugar purchase claims discovered by the auditors.
Profits for the current year, to March 2018, has also been revised downwards due to a slower start on expansion work at the Renshaw business and soft trading conditions in the first three months of the year.
Shares in Real Good Food are currently down 38.64 percent at 21.51 (1015GMT).