25/04/2017
Saudi Aramco to float 5 percent on the stock market
The Saudi Arabian Oil Co will be opening itself up to privatisation for the first time, according to deputy crown prince Prince Mohammed bin Salman.
The world’s largest energy company, known as Saudi ARAMCO, is worth around $2.5 trillion, and will be turned into a holding company with publicly listed subsidiaries. The move is designed to promote transparency within a company that dwarvfs all other energy firms, with around 5 percent being listed both in Saudi Arabia and another market.
The crown Prince spoke in an interview with the Dubai-based television network Al Arabiya, saying that, “if one percent of Aramco is offered to the market – just one percent- it will be the biggest IPO on earth.”
Saudi ARAMCO has crude reserves of 265 billion barrels, more than 15 percent of global oil deposits, and produces more than 10 million barrels per day.
Crowd2Fund leads the way with launch of Innovative Finance ISA app
Crowd2Fund, one of the UK’s leading peer-to-peer platforms, has launched its Innovative Finance ISA mobile app, allowing consumers and investors to easily and quickly manage their ISA from the comfort of their mobile phone.
The iOS powered app allows savers and investors to build their Innovative Finance ISA portfolio and manage existing investments more conveniently than other platforms. The app allows investors to manage all parts of their Crowd2Fund account; it is also automatically integrated with Crowd2Fund’s global investor Exchange, enabling the crowd to access their capital by selling their investments to others. The mobile app marks a considerable step in bringing crowdfunding technology up to date with people’s day to day lives and evolving consumer needs.
The use of mobile apps in the financial industry is continually on the rise, with research by the British Banking Association showing that consumers used mobile devices to check their current accounts 895 million times in 2015. As the sector grows and becomes more competitive, to remain compelling platforms will have to give their users an improved user experience, greater ease of use and better functionality. Whilst mostpeer-to-peer lenders and equity crowdfunding platforms have kept to access solely via desktop, Crowd2Fund have broken the mold by becoming the first to open access on mobile for its members.
According to Crowd2Fund CEO Chris Hancock, “the financial services sector is undergoing rapid transformational change”.
“Mobile FinTech is an area we expect to grow rapidly during 2016, and Crowd2Fund are proud to be the first platform to take this bold step with the aim to provide customers with a modern and flexible experience suited to their needs,” he added.
The application seamlessly integrates with the platform wallet management system, real time portfolio reporting and ability to make investments with the simple touch of a screen. Further features in the pipeline include Apple Pay, which Crowd2Fund expect will make the investing process even smoother and turn investing and saving into a more frequent activity, with lower investment amounts but much higher volumes. Crowd2Fund’s ambition is to empower its users to manage their P2P investments just as we check emails, bank statements, social media and news apps on an hourly basis; the Innovative Finance ISA app offers an experience which makes investing a fulfilling and pain free experience.
For more information, visit crowd2fund.com
Miranda Wadham on 25/04/2016
Midday flash: markets and currencies down before Fed meeting, GBP up
Markets were cautious on Monday ahead of central bank meetings in both the US and Japan later this week.
Another rate decision is expected by the Federal Reserve on Wednesday, sparking intense interest from investors. The Bank of Japan is widely expected to push the Japanese interest rate further into negative territory, with both expected decisions causing hesitance in the markets.
Both emerging market stocks and currencies have fallen, after a retreat in oil prices. The yuan weakened for a fourth day in Shanghai, while South Korea’s won had its biggest two-day drop since February. Against the euro, the dollar fell to $1.1256, at the weaker end of a 10-cent range it has held for a year. However, the pound has gained strength against the euro for the first time in six weeks, after opinion turns towards staying in the EU at the referendum in June.
25/04/2016
Full Fact: crowdfunding for a fact-checked EU referendum
As the EU referendum on June 23rd ticks ever closer, the claws are coming out on either side of the debate. ‘Facts’, figures and opinions are being thrown left, right and centre from both sides, leaving many voters baffled and apathetic. A nation of confused voters are unlikely to be well-placed to make a decision that will have a profound effect on the lives of future generations – enter Full Fact, the fact-checking charity running a crowdfunding campaign to provide voters with non-partisan facts with which to make an informed decision.
According to Full Fact, 76 percent of people think it’s extremely important that MPs tell the truth – but, perhaps unsurprisingly, only 26 percent of people trust them to do so. So when it comes to making a decision on the referendum, which facts and figures are the nation supposed to listen to?
Full Fact are aiming to raise between £30,000 and £50,000 through a crowdfunding campaign on crowdfunder.co.uk, with total currently at nearly £40,000. All money donated goes towards hiring factcheckers, experts on the EU, people who can communicate complex concepts with simplicity and flair and covering volunteers expenses. Full Fact are working with with legal experts including professors from Cambridge, Durham and Oxford, top QCs, immigration experts from Oxford University’s Migration Observatory and other academics supported by the Economic and Social Research Council. Full Fact are fully funded by contributions and grants – they do not accept government funding.
Full Fact have provided political fact-checking services for many high-profile programmes including LBC Radio:
“The team at Full Fact proved an essential part of our online offering for one of the defining political events of the year. Their live blogging and instant scrutiny of the claims made by Nick Clegg and Nigel Farage provided an invaluable service for our audience and added real gravitas to our online offering,” said Tom Cheal, LBC’s political editor.
For more information on Full Fact’s findings on the EU referendum figures, visit Fullfact.org. To get involved and donate, visit their campaign page here.
25/04/2016
Rich List 2016: winners and losers
According to the official Rich List, compiled by the Sunday Times and released every April, the last year has not been kind to the world’s richest people – many of which saw the biggest drop in their fortunes since the 2008 financial crisis.
This year’s biggest faller was steel magnate Lakshmi Mittal, who has lost around 75 percent of his fortune since 2008 — with his net worth falling from £27.7 billion to £7.12 billion in 2016. The Queen also had a bad year, failing to make the top 300 for the second consecutive year.
Odey Asset Management founder Crispin Odey saw his wealth drop after Odey European fund’s worth fell by over 30 per cent in the last year, and Chelsea owner Roman Abramovich joined the list of losers after seeing his fortune drop to just £870 million.
However, winners include property tycoon brothers David and Simon Reuben, owners of London’s Millbank Tower and the John Lewis flagship store, whose wealth rose £3.4 billion in 2016. The inventor of the hoover and Rich List regular Sir James Dyson saw a 43 percent rise in wealth, making him the first self-made Briton to break the £5 billion barrier – and Denise Coates became Britain’s richest self-made woman, worth more than £3.7 billion after turning her small chain of betting shops into online gambling giant Bet365.
2016 was a great year for women, seeing a record 125 enter the rich list, but a tough year for everyone else; entrants had to have at least £103 million to make it on to the list, up from £100 million last year.
Miranda Wadham on 25/04/2016
Is state market intervention pushing Japan into trouble?
The Bank of Japan has become one of the biggest shareholders in the Japanese stock markets, according to the latest research by Bloomberg.
The Nikkei 225 has fallen 8.4 percent this year, alongside a series of disappointing economic figures, giving many investors cause for concern; in an effort to stimulate Japan’s flagging economy, the Bank of Japan have been investing heavily in the Japanese stock index. Just how heavily, however, may raise eyebrows; the central bank now owns more Japanese blue-chips than BlackRock, the world’s largest money manager, and have become one of the top 10 shareholders in around 90 percent of the Nikkei 225 Stock Average.
Whilst central banks investing in the markets is a key stimulation measure, the BoJ’s growing influence in stocks risks distorting valuations and undermining efforts to improve corporate governance. Later this week, the central bank are expected to accelerate their ETF purchase programme to an annual rate of ¥7 trillion – meaning it could become the biggest shareholder in about 40 of the Nikkei 225’s companies by the end of 2017.
Whilst lawmakers have criticised the move, it has been repeatedly defended by governor Haruhiko Kuroda, meaning it is likely to continue. State intervention in stock markets has worked for several countries, but too much can raise stock valuations to dangerous levels – now is the time for investors to cross their fingers and hope that Japanese stock market isn’t heading for trouble.
25/04/2016
Morning Round-Up: BHS files for administration, Ball-Rexam sell assets, Sony down
British Home Stores goes under
British high street retailer BHS will file for administration today, putting nearly 11,000 jobs at risk.
In a letter to staff, BHS owner Dominic Chappell said: “It is with a deep heart that I have to report, despite a massive effort from the team, we have been unable to secure a funder or a trade sale.”
Chappell, who leads retail consortium Retail Acquisitions, bought the failing chain from Sir Phillip Green for just £1.
Talks for a takeover with Sports Direct collapsed over the weekend, and a buyer will only be found if they are willing to take on BHS’s £571 million pension deficit.
Ball-Rexam to sell assets to Ardagh Group
Drinks can makers Ball Corp and Rexam Plc have agreed to sell assets to Luxembourg-based packaging maker Ardagh Group for about $3.42 billion, in a sale that includes 22 of both companies European manufacturing plants.
US-based Ball are planning a £4.4 billion takeover of Rexam, merging the world’s two largest beverage can makers by volume and triggering competition concerns from the European Commission.
Sony shares down 6 percent after earnings delay
Electronics giant Sony closed down 6 percent on Monday, after a delay in its earnings release due to earthquakes in southwest Japan.
The company, who were due to release earnings this, have postponed to next month after uncertainties in its supply chain.
25/04/2016
Morning Round-Up: Government to nationalise Port Talbot, Microsoft down, Daimler under investigation
Government to part-nationalise Tata Steel plants
The UK government have announced plans to part-nationalise Tata Steel’s Port Talbot plant, according to business secretary Sajid Javid. The new package will amount to hundreds of millions of pounds in state support through loans, grants and a possible equity stake, raising hopes that up to 40,000 jobs could be saved.
The two potential buyers – Liberty House and a management consortium – have reacted positively to the news and say that it makes the prospective deal more attractive.
Microsoft shares down on disappointing figures
Microsoft shares fell over 4 percent in after-hours trading after quarterly profits came in below analysts’ estimates.
Microsoft saw stiff competition in the personal computer market in the last quarter, causing net income to fall to $3.76 billion from $4.99 billion a year earlier.
Revenue also fell to $20.53 billion from $21.73 billion, again below analysts expectations. Daimler opens investigation into emissionsGerman carmaker Daimler has started a probe into its diesel emissions at the request of the US Justice Department, just days after Mitsubishi Motors became the latest car company to get caught up in scandal.
In a statement, the company said that “Daimler is cooperating fully with the authorities” and will “investigate possible indications of irregularities and of course take all necessary action”.
22/04/2016
Barack Obama causes controversy after urging Britain to stay in the EU
US President Barack Obama landed at London Stansted yesterday for a three day visit, with plans to meet with politicians as well as lunching with the Queen on her 90th birthday. However, the most controversial talking point of his visit is his stance on Brexit.
In an article published by the Telegraph yesterday evening, Obama weighed in on the Brexit debate and encouraged Britons to vote to stay within the European Union:
“You should be proud that the EU has helped spread British values and practices – democracy, the rule of law, open markets – across the continent and to its periphery. The European Union doesn’t moderate British influence – it magnifies it. A strong Europe is not a threat to Britain’s global leadership; it enhances Britain’s global leadership.”
Many have criticised Obama for choosing to enter the fray on the subject. Liam Fox, the UK’s former defence secretary, commented:
“While the President will be heard respectfully, many of us will be raising an eyebrow at the fact that he thinks that we should accept a diminution of sovereignty that he would never accept.”
Most world leaders outside of the European Union have chosen to stay out of the debate, marking Obama’s comments as a departure from the norm.
22/04/2016
BrewDog ‘Equity for Punks’ falls short of £26m target
Scottish craft brewer BrewDog has failed to reach their £25 million target in its latest crowdfunding round, which closed on the 20th April.
The brewers are veteran crowdfunders, having launched four “Equity for Punks” crowdfunding rounds since 2009. This time, the company obtained £19 million – £6 million short of their target. On their website, BrewDog remained upbeat about the outcome:
“With more than 42,000 Equity Punks now drafted in to our ranks, we have accrued a global gathering of craft beer crusaders to help us on our explosive mission to make other people as passionate about great beer as we are.”
It is hard to say what effect the shortfall will have on plans for expansion, which includes building a bigger brewery, launching a new canned beer range and opening more UK bars. The company are aiming to expand into America, launching a crowdfunding round for US residents and planning to open a brewery in Ohio.
Whilst applications on Crowdcube may have closed, BrewDog are still accepting paper applications until April 29th. For more information, visit their website.
Miranda Wadham on 21/04/2016