Pound’s turbulence could drive pensions overseas

Nicole Jeary
-
0
Pound’s turbulence could drive pensions overseas

The weakening of the pound has led to a “significant surge” in individuals seeking advice on how to re-locate their pensions out of the UK, according to the boss of one of the world’s largest independent financial advisory firms.

The trend has grown in the four months since the UK voted to leave the EU. During this period, the pound sterling has plunged in value 14.5 percent against the euro and 18 percent against the US dollar.

The CEO of deVere, Mr Green, stated:

“The pound has experienced major volatility since the Brexit vote was announced. This turbulence is likely to continue as there are still no definitive answers to the important questions about Britain’s future relationship with Europe or the rest of the world.

“The plummeting value of sterling has an important negative impact for the millions of Britons overseas who live off a fixed income from Britain, such as a UK pension. The cost of living becomes more expensive and a proportion of their disposable income is eroded away.

“For instance, there are a reported 1.3 million Brits living in the U.S., about a quarter of these are retirees. The majority of these 312,000 people will have taken an 18 per cent hit to their UK pension incomes since the referendum.”

He added: “Brexit is biting those abroad with a British pension. Therefore, they are, sensibly, considering their options about how to Brexit-proof their retirement incomes.

“We’ve experienced a 21 per cent hike in global enquiries about moving British pensions out of the UK since the Leave campaign was victorious. The enquiries are from those already living outside the UK and from people currently in the UK planning to retire abroad.

“This considerable surge potentially represents hundreds of millions of pounds of retirement funds leaving the UK as people seek to safeguard their retirement funds by transferring them into a secure, regulated, English-speaking jurisdiction outside Britain.

“An established way to help mitigate these problems of currency fluctuations, which can seriously erode retirement income, is to transfer your UK pension into a Qualifying Recognised Overseas Pension Scheme, or QROPS.

“One of the main benefits of a QROPS is that you can choose which currency you wish to receive payments in. This eliminates the risk of exchange rate fluctuations, which makes the individual’s financial situation more predictable, consistent and secure.”

Mr Green concluded : “Given the ongoing and growing Brexit fallout, we expect the trend for people seeking advice on overseas pensions transfers to gain momentum over the next couple of years and beyond.”

UK mortgage approvals rise in September

Miranda Wadham
-
0
UK mortgage approvals rise in September
British mortgage approvals defied a negative post-Brexit environment in September, rising to their highest level since June. Mortgage approvals for house purchases rose to 62,932 in September from 60,984 in August, according to Bank of England data released on Monday. The figures easily beat the 60,150 forecast by analysts and will alleviate concern that the housing market has entered a prolonged period of negativity in the wake of the European referendum result. Mortgage approvals hit a 19-month low in August, and are still 15 percent down on this time last year.

Markets cautious ahead of US election

Asian markets had a shaky start to the week on Monday on the back of the latest hit to the Clinton election campaign. News that the FBI has reopened the case surrounding Hillary Clinton’s private email server just over a week before the election sent investors into a spin, pushing Asian markets down. The Shanghai Composite and the Nikkei 225 closed down 0.12 percent, with the Hang Seng down 0.09 percent. The FTSE 100 followed suit, currently trading down 0.31 percent at 6974.94. 
31/10/2016
 

Apple raise prices by 20% in the UK

Nicole Jeary
-
1
Apple raise prices by 20% in the UK

Apple have announced a price increase of 20 percent for computer products in the UK, in response to the effect of Brexit on the British Pound.

The 13-inch Macbook Air, which is the company’s cheapest laptop now costs retails at £949, up from £849. In addition, their Mac Pro desktop computer now costs £2,999, up from the previous price of £2,499.

In a statement, Apple said: “Apple suggests product prices internationally on the basis of several factors, including currency exchange rates, local import laws, business practices, taxes, and the cost of doing business. These factors vary from region to region and over time, such that international prices are not always comparable to US suggested retail prices.”

“International prices are not always comparable to US suggested retail prices.”

However analysts have predicted further price increase could be on the horizon, as many companies attempt to adjust to the changing UK economic environment. Apple’s Wednesday reporting reflected this, revealing disappointing revenue sales in general, as the company saw profits fall for the first time in 10 years.

“Apple has to recalibrate prices after significant currency fluctuations, and since the EU referendum, UK prices are out of sync with the dollar,” said Patrick O’Brien, analyst at the Verdict Retail consultancy.

“Apple has taken the hit up until now. While price increases won’t look good to the consumer, it’s difficult to blame Apple.

“Once you strip out UK sales tax (VAT) and the currency conversion, the new UK prices could still be viewed as fair.”

This coincides with similar measures undertaken by other technology firm competitors such as Microsoft. Earlier this week, Microsoft announced an increase of up to 22 percent for business customers of its cloud products, to reflect the weakening value of the sterling against the euro.

Apple’s price announcement follows Thursday’s unveiling of the new Macbook Pro device, which features a new programmable “Touch Bar” to replace function keys.

US economy grows at fastest rate in two years, increasing Fed speculation

Miranda Wadham
-
0
US economy grows at fastest rate in two years, increasing Fed speculation
The US economy grew at its strongest rate since 2014 in the three months to September, increasing speculation that the Federal Reserve will raise interest rates before the end of the year. The world’s largest economy grew at an annual rate of 2.9 percent in the third quarter, the Commerce Department said on Friday. This is above analysts’ expectations of 2.5 percent, and far higher than the 1.4 percent growth seen in the previous quarter. Consumer spending was the main driver of the economy over the last three months, increasing at a rate of 2.1 percent. This was, however, a slowdown from the 4.3 percent rate seen in the second quarter. The stronger-than-expected figures are likely to increase speculation that the Federal Reserve will raise interest rates before the end of the year. Janet Yellen indicated at the Fed’s last major meeting that, dependant on upcoming figures, December may be the time to make a move. Investment in mining, exploration, shafts and wells fell by 31.5 percent, with investment in residential construction also taking a hit for the second quarter in a row. Exports increased at their fastest rate since the fourth quarter of 2013, growing by 10 percent.

RBS disclose £469m loss, investors stay positive

Miranda Wadham
-
0
RBS disclose £469m loss, investors stay positive
Royal Bank of Scotland disclosed a £469 million loss for the third quarter, after restructuring costs and “legacy issues” overshadowed progress. The bank made a £2.5 billion loss for the first nine months of the year, failing to show concrete recovery after its £45.5 billion government bailout in the wake of the financial crisis. Its £469 million loss was more than double expected by analysts and compares to a sizeable profit made in the same quarter last year. RBS also confirmed that it would miss the deadline to sell its Williams & Glynn bank, set by the European Commission for the end of 2017. It was ordered to sell the banking business to prevent RBS having too dominant a position in the market, and has already missed the first deadline of November 2013 without receiving a penalty from the European body. Earlier this week Clydesdale Bank confirmed it had made an offer for Williams & Glynn, after a deal with Santander fell through. Investors reacted positively to the news, with shares up 5 percent in early trading. RBS chief executive Ross McEwan commented: “We’ve said that 2015 and 2016 would be noisy as we work through legacy issues and transform this bank for customers. “These results reflect that noise. Our core business results were good with a £1.3bn adjusted operating profit, our best quarter since 2014. “The core business has now delivered on average over £1bn in adjusted operating profit for the last seven quarters.” RBS is still 73 percent owned by the government following its emergency bailout in 2008. 
28/10/2016

BT face £145 million cost after “accounting errors” in Italian division

Nicole Jeary
-
0
BT face £145 million cost after “accounting errors” in Italian division
BT have taken a £145 million hit following the uncovering of “accounting areas” in their Italian division. The company have found instances of “inappropriate management behaviour” following an internal investigation into BT Italia division. The irregularities were found following the appointment of external advisers to assist with assessing the extent of the issue. BT noted that their inquiry uncovered “certain historical accounting errors” and that it had “ressessed certain areas of management judgment” as a result. Whilst the company stated that the activity had not impacted upon its reported earnings, the stipulated charge of £145 million was deemed “our current best estimate of the financial impact based on our internal investigation. The writedown relates to balances that have built up over a number of years.” The telecoms company also added that Brexit and its destablising effect upon the pound may impact financial progress. However, the company board emphasised that the impact is unlikely to br substantial in the long-term. “While the future nature of Britain’s trading relationship with the EU and globally is currently uncertain, the board does not expect the result of the referendum to have a significant impact on our outlook … We continue to monitor the longer term impact of the UK’s decision to exit the EU.” BT Sport noted that average audience figures rose by 1 percent, excluding its freeview channels and digital channels and in spite of the competition encountered from the Rio Olympics coverage. “We are benefiting from our new Saturday early evening slot for Premier League matches, with better viewing figures,” BT said. According to the latest reported figures, total revenues for the group increased by 35 percent to £6 billion in the three months to the end of September. In addition, pre-tax profits remained unaffected exhibiting a rise of 5 percent in the quarter to £671 million. However, these figures notably do not take into account the company’s recent £12.5 billion acquisition of the mobile network EE, which was completed in January.

Debenhams report a 10% drop in profits

Nicole Jeary
-
0
Debenhams report a 10% drop in profits

Debenhams (LON:DEB) reported a 10 percent drop in profits on Thursday, as the department store saw a decrease in clothing sales.

The UK’s second largest retailer reported a 7 percent slide in pre-tax profits to £105.8 million in the three months to September. However, underlying profit margins rose by 0.5 percent to £118.2 million.

Additionally, the company’s pension scheme encountered some difficulties and slipped into a deficit of £4.1 million on September 3rd, compared with the end of August surplus of £26.2 million. The group attributed these difficulties to a decrease in bond yields, which was partly mitigated by a growth in their pension asset numbers. As a consequence, the group announced plans to reduce debt by £260 million by the following year.

“Our diversified business model together with good cash generation and reducing debt means that Debenhams is in good shape to withstand a market background that remains uncertain,” said company chairman Sir Ian Cheshire.

“Our strategy to re-balance the business towards non-clothing has supported our performance, with strong progress in beauty, gifting and food,” he continued.

The retailer maintained that its current strategy, which involves shifting away from clothing, had proved successful and had paid dividends. The company reported strong growth in beauty, gift and food department revenues and noted a 9.3 percent increase in its online sales, with particular growth from mobile revenue.

Debenhams have just recently appointed a new chief executive, Sergio Bucher, who was formerly vice-president of Amazon. He has been tasked with updating the company’s online operations as well as attempting to reconfigure the retailer for overseas markets.

Additionally, the group have announced that they will issue a final dividend of 2.4p per share, with the full-year dividend up by 0.7 percent to 3.4p per share. Shares in Debenhams rose by 2.4 percent to 55p in early trading.

Weak iPhone demand continues to hit Apple

Miranda Wadham
-
2
Weak iPhone demand continues to hit Apple

Apple has reported a fall in annual revenue for the first time in over 10 years on Wednesday, after another quarter of weak demand for iPhone handsets.

The group sold 45.51 million iPhones in the three months to 24 September, beating analyst estimates but falling for the third quarter in a row. Quarterly revenue fell to $46.9 billion in the three months to September, down from $51.5 billion in the same quarter last year. In Greater China, traditionally one of the group’s strongest markets, revenue also fell 30 percent after a 33 percent fall the quarter before. This compares to the same period last year, where revenue from Greater China doubled. In a statement, Apple CEO Tim Cook said:

“Our strong September quarter results cap a very successful fiscal 2016 for Apple.

“We’re thrilled with the customer response to iPhone 7, iPhone 7 Plus and Apple Watch Series 2, as well as the incredible momentum of our Services business, where revenue grew 24 percent to set another all-time record.”

“We are pleased to have generated $16.1 billion in operating cash flow, a new record for the September quarter,” said Luca Maestri, Apple’s CFO. “We also returned $9.3 billion to investors through dividends and share repurchases during the quarter and have now completed over $186 billion of our capital return program.”

Alongside the statement, the company forecasted a higher-than-expected holiday season revenue of between $76 billion and $78 billion. Apple (NASDAQ:AAPL) shares were fell over 3 percent in pre-market trade. 
26/10/2016

Nintendo sales fall despite strength of Pokemon Go

Miranda Wadham
-
1
Nintendo sales fall despite strength of Pokemon Go
Nintendo shares fell on Wednesday after the company announced a fall in both sales and operating profit for the full year. Operating profit came in under analysts’ expectations at 30 billion yen, combined with a 33 percent fall in sales for the six months to September. The company disclosed an operating loss of 5.95 billion yen over the six month period, a signifiant fall from the 8.98 billion disclosed for the same period last year. However, net profit was aided by the sale of Nintendo’s controlling stake in US baseball team the Seattle Mariners, as well as licensing fees for Pokemon Go. Last month Nintendo announced the release of its first game designed for a mobile platform, Super Mario Run, developed with Mario’s creator Shigeru Miyamoto. The company may be hoping that this will counteract the falling sales of video game hardware, which saw over a 50 percent decrease in demand in the first half of 2017. Shares in Nintendo have fallen 8 percent this month, but have risen 46 percent since the start of the year.
Nintendo Co (TYO:7974) is currently trading down 0.67 percent 24,520.00 (1319GMT). 
26/10/2016

Brexit unlikely to affect 2017 mergers and acquisitions, says new survey

Miranda Wadham
-
0
Brexit unlikely to affect 2017 mergers and acquisitions, says new survey

Post-Brexit challenges are unlikely to affect business mergers and acquisitions, according to the latest research from KBS Corporate.

The study revealed that 94 percent of Private Equity and Venture Capital Houses were confident about the long-term future of the M&A market, and the wider economy in general. 97 percent of the survey respondents planned to use their funds at the same rate for the rest of this year and going into 2017, showing an undeniable optimism about the UK economy going forward.

KBS Corporate’s director, Simon Daniels, commented:

“Our research also found that respondents were of the opinion that a fundamentally profitable business is an attractive acquisition no matter the circumstances, indicating that 2017 may well be in line with record levels experienced in 2015.

“Acquisitions of ‘UK centric’ businesses, whose operations are unaffected by the European Union, are also likely to continue at the current pace going into 2017.

“Meanwhile, UK exporting businesses are becoming increasingly more attractive following the recent depreciation of the value of the pound against other major currencies. The effect of this is cheaper UK imports for foreign businesses and consumers, which has accelerated demand.”

KBS Corporate see investors becoming more active in 2017, widening the pool of potential suitors to negotiate with and ultimately creating a more productive environment for businesses hoping to sell.

According to Daniels, now is also the most tax-efficient time in recent history to sell.

“Entrepreneurs’ tax relief, which grants business owners a preferential capital gains tax rate of just 10 percent on business gains of up to £10 million, has been extended to include long-term investors, whilst capital gains tax has been slashed by 8 percent for all business owners,” he added.

1...1,6811,6821,683...1,834Page 1,682 of 1,834