Miranda Wadham on 24/11/2015
Crowdfunding: Run An Empire app combines fitness and gaming
As the world’s obsession with health shows no signs of abating, two smart guys have created an app that combines two of the most lucrative sectors: fitness and gaming. A cross between Forge of Empires and Strava, the app hopes to bridge the gap and attract people from both — and the project is now crowdfunding on Crowdcube.
The idea is simple: players compete to own the most territory in their neighbourhood by physically running around it. Creators Ben Barker and Sam Hill have taken the best bits from free-to-play gaming and fitness trackers, and brought them together to make “an addictive play experience for recreational runners and gamers alike.”
They said: “we saw that the fitness app market was largely limited to counting calories and measuring miles. The growing mobile gaming market, on the other hand, suggested far more exciting opportunities to motivate and reward existing and aspiring runners.”
Barker and Hill first met at Goldsmiths university in London, and have since worked together on a number of projects including clients such as Microsoft, The Houses of Parliament, Marks & Spencer and TEDx.
Run An Empire is a ‘free-to-play’ game, meaning anyone can download and get involved. In terms of monetisation, the app will make money from an in-game ‘premium currency’ – a common monetisation method, used by apps such as Candy Crush. Players will be able to use ‘gems’ to buy more running time, cosmetic items and other in-game bonuses, and the idea seems popular – 40% of the 1,825 Kickstarter backers opted to purchase a cosmetic reward (starting at £12) during the introductory campaign. The creators also plan to use sponsorship and advertising to enhance revenue.
What’s more, the market that the app will be entering is a lucrative one; the mobile gaming market alone is worth $30 billion, with similar game Clash of Clans bringing in around $5 million per day. Health apps are also leading the way on smartphones, with 8% of smartphone users – equivalent to 1.58 billion people – having downloaded a health-related app at some point, according to a report from HIMSS Europe. The app’s target market is niche, but large – there are about 50 million recreational runners in Europe as well as 65 million in the US.
Run An Empire are looking for an investment on Crowdcube of £70,000, in exchange for 5.51 percent equity. Within 3 years, the creators project monthly revenue in excess of £1 million and a valuation in excess of £50 million, as well as hoping to be acquired by a fitness brand or games publisher within 3-5 years as other comparable apps have.
For further information, visit Run An Empire’s funding page on Crowdcube.
Yellen defends decision to keep US rates low
Federal Reserve chair Janet Yellen has defended her decision to keep interest rates low, after consumer advocate Ralph Nader published a letter criticising her judgment.
In response, Yellen argued that the low rates helped create millions of jobs by lowering borrowing costs for businesses and consumers.
“We are tired of this melodrama that exploits so many people who used to rely on interest income to pay some of their essential bills. Think about the elderly among us who need to supplement their Social Security checks every month,” Nader wrote in an open letter on his blog.
In her reply, Yellen said “an overly aggressive increase in rates would at most benefit savers only temporarily”, and that “many of these savers undoubtedly would have lost their jobs or pensions (or faced increased burdens from supporting unemployed children and grandchildren),” if she had not acted as she did.
She used the letter to reiterate once again that, when interest rates do begin to rise, the move will be gradual, citing the Japanese economy as an example of what could happen if rates were raise too fast, too soon.
The consensus amongst analysts is that believe that the Federal Reserve will raise rates by a quarter-point at its December meeting, as long as economic data between now and then remains positive. In England, Bank of England chief Mark Carney expects rates to remain where they are until at least early next year.
24/11/2015
Rolls Royce announce further restructuring after fourth profit warning
British aeronautical company Rolls-Royce (LON:RR) are set to announce further restructuring plans, after issuing its fourth profit warning in just over a year.
Recently appointed chief executive Warren East gave further details of his plans to turn around the company, reassuring investors that whilst the company is going through an “unprecedented period of change”, it is “vital to [the company’s] long term success”.
“Major restructuring will simplify the organisation, streamline senior management, reduce fixed costs and add greater pace and accountability to decision making,” the group said in a statement ahead of a presentation to investors.
“This is fundamental to ensuring Rolls-Royce best positions itself to compete for the long-term opportunities before us,” he said.
US-based activist investor ValueAct has recently doubled its stake in the company to 10 percent, making it the biggest investor by share and intensifying pressure on the company to reform its finances.
East has already detailed some of his plans, which will include cost-saving targets of between £150 – £200 million per year.
Shares in Rolls Royce plunged after its latest profit warning this month, which cited decreasing demand for marine engines and declines in its aero-engine business as reasons for its continued poor results.
Avago cleared to buy Broadcom in $37bn deal
Global manufacturer of semiconductors Avago (NASDAQ:AVGO) has been cleared by the European antitrust regulators to carry out a $37 billion takeover of Broadcom (NASDAQ:BRCM) to create the third-largest chip-maker in the world.
Despite some initial concerns, The European Commission allowed the merger after Avago agreed to let other switch chipmakers have continued access to essential intellectual property on reasonable terms.
Margrethe Vestager from the European Competition Commissioner said;
“Thanks to very good cooperation with the companies the Commission has been able to approve this multi-billion dollar takeover within a very short space of time while preserving effective competition in this crucial high technology sector,”
Following the European Commission’s approval of the company’s acquisition, Broadcom stocks are down by 0.06% to $53.50 in pre-market trading.
China & Africa: a relationship of development or exploitation?
With the sixth Forum on China-Africa Cooperation (FOCAC) to be held early next month, the relationship between Chinese and African governments has come under renewed scrutiny to establish whether it is mutually beneficial for both parties, or if China is simply taking advantage of Africa’s raw materials.
It is undeniable that China invests a large amount into the continent; investing approximately $22 billion to date– going towards investments in natural resource extraction, power generation, finance, textiles and infrastructure throughout Africa.
However, despite these large figures, investments have been considered as detrimental to Africa’s overall competitiveness. One such example is the unfulfilled promise of new employment. Whilst jobs have been created, most of the hired workforce have been Chinese and for those jobs filled by Africans, health and safety regulation has been poor.
As well as high levels of foreign direct investment, China is now Africa’s biggest trading partner. The trade volume currently stands at $166 billion, a 700% increase since 1990, but is predicted to reach an estimated $1.7 trillion by 2030.
This trade however, is arguably a much higher benefit to the Chinese economy than to the African economy, through the exploitation of natural resources. This is due to China’s importing of resources such as minerals and metals, whilst African countries primarily import finished products such as rubber and plastics.
Next months China-Africa forum hopes to respond to these popular criticisms of its “mercantilist” approach.
Safiya Bashir on 23/11/2015
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Unexpected growth for Eurozone business activity
The Eurozone’s business activity picked up much faster than predicted, with its fastest pace since mid-2011.
This was unexpected following growth in France’s private sector hitting its lowest level in three months. Chris Williamson, Markits’ chief economist said;
“We think the key reason for the slowing in services growth is due to the attacks. Clearly there’s been a cut in footfall and any sort of feel-good factor amongst consumers in the wake of the horrific events. But history does tell us that these events tend to have a very short-lived impact.”
France’s slow growth was offset by an accelerated growth within Germany’s private sector, setting back worries over the emissions scandal at Volkswagen (VOWG_p.DE).
Bert Colijn at ING, commented on the Eurozone’s growth;
“This upbeat survey about the European economy fell short on one important aspect though: inflation. The survey indicated that despite the strongest output growth and job creation since early 2011, there was still no sign of inflationary pressures.”
Oil prices tumble following strong dollar and oversupply
Oil prices fell on Monday morning following a rise in the US dollar and faltering demand from China.
Analyst at Phillip Futures, Daniel Ang, has said;
“Oil prices and the USD strength have an inverse relationship and if the USD does strengthen more, oil prices should be taking a hit,”
According to data from the U.S. Commodity Futures Trading Commission, big hedge funds have increased their bets that oil will continue to fall.
Since OPEC decided to maintain its production levels, oil prices have halved over the past year
Concerns of oil price have increased since the international sanctions against Tehran are to be lifted in the coming months, with analysts expecting Iran to increase production by up to 500,000 barrels a day.
At 0918 GMT, U.S. West Texas Intermediate (WTI) crude futures fell to $40.64 a barrel from $41.90. Benchmark January Brent futures are down 90 cents at $43.76 a barrel.
Justin Trudeau: Plans and hopes for Canada
A few months ago, the success of Justin Trudeau in the Canadian elections seemed an unlikely future. Criticized for his age, lack of experience and slightly more left-wing approach to politics, he was an unlikely contender.
The Liberals, who won a decisive majority government with 184 seats, started the campaign with a mere 36 seats in the House of Commons and defied all odds to defeat the Conservatives.
So what changes does he hope to introduce to Canada?
Refugee Crisis
Trudeau recently announced promises to resettle 25,000 refugees in Canada before January 1st. Following the Paris attacks, Trudeau has stood by these plans, despite a wane in support from Canadian public.
Trudeau’s new policy differed from the previous Conservative government, which planned on admitting 10,000 refugees over the next three years.
For those with concerns of security, Canadian Prime minister stated;
“It didn’t take the tragedy in Paris for us to suddenly realize that security’s important. We’ve known for a long time, and we continue to be very much committed to keeping Canadians safe while we do the right thing to engage responsibly on this humanitarian crisis.”
How does Trudeau’s stance on the refugee crisis differ from the UK’s government? David Cameron bucked to pressure in early September, announcing an expanded resettlement programme for Britain, hoping to accept 20,000 Syrian refugees over the next five years. He has since however stated that he wants to put more effort into returning migrants to their country of origin.
Climate Change
Trudeau’s predecessor was a well known sceptic but Time Magazine believes that Canada’s new prime minister is ‘good news’ for the fight against climate change.
In a speech given earlier this year, Trudeau said;
“In 2015, pretending that we have to choose between the economy and the environment is as harmful as it is wrong,”
With plans to introduce a carbon pricing scheme to reduce emissions and attending conferences in Paris later this month, Trudeau is hoping to show support and create higher profile for talks around climate change.
Following recent polls, it is clear Canadians believe Trudeau to be the best person for the job. The question now is, for how long will this political honeymoon last?
Safiya Bashir on 23/11/2015
HSBC’s biggest shareholder shows support for bank’s UK exit
Some of HSBC’s biggest shareholders have announced that they would support the bank’s decision to move its headquarters abroad, should it decide to take the plunge.
One of their biggest shareholders, Standard Life Investments, said that HSBC (LON:HSBA) was put at a “competitive disadvantage” by “ever-increasing capital requirements” in London. Standard Life Investments head of equities David Cummings told Radio 4’s Today programme that “logically, we would be supportive of a move if they chose to do that”, stating that a UK exit could amount to “better growth, earnings and dividend prospects unless the regulator changes tack”. The decision to move away from London will be made by the end of the year, as HSBC struggles to contend with “regulatory and structural reforms” introduced since the financial crisis. Some speculate that the bank will choose to move to Hong Kong – HSBC makes around 80 percent of its profit in Asia, where is has major operations.23/11/2015