US Federal Reserve announces first rate hike for seven years

Miranda Wadham
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US Federal Reserve announces first rate hike for seven years
The US Federal Reserve have taken the plunge and raised interest rates, after increasing speculation over the last few months that the time was right for Yellen to make the move. Interest rates saw a modest increase, rising 0.25% to a range of 0.25% to 0.5%, citing “considerable improvement” in the US jobs market as the reason for the hike. Yellen reiterated that this was the first move in a “gradual” process to get rates back to normal. Recent employment news from the US has been promising, with unemployment falling to 5 percent, the lowest level in seven years, and growth sitting at a solid 2.1 percent. European markets have reacted well to the news, with the main indexes up between 1 and 2 percent in early trade this morning. The FTSE is currently trading up 1.5 percent at 6152.2 (0910GMT). Speculation as to when the Bank of England will raise rates in the UK will now increase considerably, although governor Mark Carney has reiterated strongly that he will not follow the Federal Reserve’s decision immediately. However, the US rate rise will make it easier for the Bank of England to make the move here. 
17/12/2015

Rolls Royce up after CEO announces management cuts

Miranda Wadham
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0
Rolls Royce up after CEO announces management cuts
British engineering company Rolls Royce (LON:RR) is trading up nearly 3 percent this morning, after CEO Warren East announced a management restructuring designed to set the company back on track. East, who was appointed CEO in July, has cut a layer of senior management that will see the heads of all five divisions of the company report to him directly. The move will aim to save between £150 – 200 million by 2017. In a statement, East said: “The changes we are announcing today are the first important steps in driving operational excellence and returning Rolls-Royce to its long-term trend of profitable growth,” East said in a statement. Rolls Royce have had to confront a difficult period recently, with its share price dropping after a succession of profit warnings. The company has announced thousands of redundancies as tough market conditions force it to streamline. This move will further that aim and “simplify the organisation, drive operational excellence and reduce cost”, the company said. Rolls Royce is currently trading up 2.8 percent at 555.1 pence per share. It has a 52 week range of between 504.50 and 1061.00. 
16/12/2015

Work Group shares fall 40 percent on 2015 results

Miranda Wadham
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0
Work Group shares fall 40 percent on 2015 results
Shares in consultancy form Work Group (LON:WORK) fell by over 40 percent this morning, as a trading update showed disappointing full-year figures. The company disclosed an unaudited operating loss of £648,000, compared to a loss of £132,000 this time last year. Revenue has halved from £7.6 million in December 2014 to £3.4 million in June. Chairman Simon Howard commented: “We have been able to leverage the experience of our UK based strategic and creative teams to help overseas offices both win new business and deliver innovative solutions. This has vindicated the substantial investment we have made in recent years in opening and growing our overseas offices. Our continuing losses necessitated tight working capital management with cash outflow in the period limited to £177,000.” Work Group is a global consulting firm, specialising in the communications and talent management industries. The company has a 52 week range of between 0.0 and 7.6, and is currently trading down 42.48 percent at 3.02 pence per share. 
16/12/2015

Workers pay slows, despite decrease in unemployment

Miranda Wadham
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0
Workers pay slows, despite decrease in unemployment
Workers’ pay in Britain grew at its slowest pace since the beginning of this year in the last quarter, despite a decrease in unemployment. The average earnings of workers rose by 2 percent in the three months to October, 0.1 percent below the expected rate of 2.3 percent. Analysts have pointed to these latest figures to illustrate why the Bank of England has kept interest rates at their current level, despite increasing speculation as to when they will be raised. However the latest figures from the Office for National Statistics, released today, show that the unemployment rate fell to a seven year low in the three months to September. The number of people out of work fell by 110,000 to 1.71 million between August and October, with the British unemployment now stands at 5.2 percent, 0.1 down on the previous figure.. Eurozone growth

Economic updates on the Eurozone also came in on Wednesday, with the latest Purchasing Managers’ Index (PMI) figure showing growth in the eurozone economy slowed slightly in December.

The figure for December came in at 54, slightly down from November’s figure of 54.2. However, any figure above 50 indicates growth. Inflation for the Eurozone also grew in November, to 0.2 percent, down 7.3 percent on the same period last year. 
16/12/2015

Greater Manchester – Is This Only the Beginning?

UK Investor Magazine
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Greater Manchester – Is This Only the Beginning?

Over the past year, Greater Manchester has dominated the headlines in regional, national and even international news. Discussion points have included how its airport has surpassed its own record numbers in terms of passengers, how it forms the centre of Chancellor Osborne’s Northern Powerhouse initiative to rebalance the British economy, how big the benefits for the city are going to be once the high speed railway network HS2 comes to fruition, and most recently, how Chinese President Xi Jinping visited the region on the first ever State visit of a Chinese President – his only destination besides the country’s capital.

It’s true – Greater Manchester has had a highly positive year filled with good news. It is therefore no surprise that an increasing number of businesses, and with it, a large flock of young professionals are relocating to the area.

But what has that done to local rental prices? Many sources have crowned the region, in particular its cities of Manchester and Salford, as the of UK’s buy-to-let hotspot of choice, due to the rapidly growing demand for rental accommodation.

Looking at the local rental market, one will find that a clear trend has emerged: homes next to Metrolink stations are, on average, higher than the ones further away from transportation links. For instance, data from the online portal Zoopla shows that the most affordable area in Greater Manchester is alongside the Rochdale tram line, with an average monthly rental price of £404 for a one-bedroom apartment. Towards the areas where the region has seen major regeneration projects and housing schemes, such as Manchester’s city centre, Ancoats and Salford Quays, the prices are of course a lot higher: the same apartment would cost £690pcm in Salford Quays, £785pcm around Piccadilly Gardens and £734pcm at the New Islington station.

Research has shown that easy access to an extensive transportation network, particularly tram stations, is highly popular with property hunters. It is estimated that if a property is located within approximately a 500m radius of a tram station, people are willing to pay up to 4.6% more for it. With a total of 94 Metrolink stops, Manchester has tram stations aplenty, leading to almost 70% of all homes being at least in a 1,500m radius of a station.

From this data alone it is possible to see how huge the potential of Greater Manchester truly is. Investors, companies and residents alike are realising that this city is on its path to something special – the sheer increase in investment and business activity are testament to that. Regeneration schemes such as the bespoke HS2 project, further enhancements to local infrastructure, ventures in line with the £1bn Devolution Deal to more effectively streamline spending, are sure to give Greater Manchester another major boost.

It is safe to say that as much as the city already presents itself as a fantastic investment opportunity – particularly when it comes to property – investors are set for even better times ahead.

This article was written and produced by Knight Knox

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Sainsbury’s shares rise on positive pre-Christmas sales figures

Miranda Wadham
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0
Sainsbury’s shares rise on positive pre-Christmas sales figures
Shares in Big Four supermarket Sainsbury’s (LON:SBRY) are up 5 percent this morning, as the store reported a sales increase of 1.2 percent in the three months to Christmas. The store’s market share increased by 0.2 percentage points year-on-year to 16.7 percent, according to market researcher Kantar Worldpanel. Fraser McKevitt, head of retail and consumer insight at Kantar said: “Consumers continue to be drawn to the retailer’s ‘Taste the Difference’ range, and with sales of champagne and sparkling wine up by a quarter it seems clear that the grocer is successfully tapping into demand for premium goods.” Britain’s Big Four supermarkets have had a tough time of late, seeing falling sales as budget rivals such as Aldi and Lidl increasingly win over their market share. However, Sainsbury’s has continued to perform the best of the Big Four; Tesco and Asda have both seen sales figures fall around 3.4 percent over the last 12 weeks. Shares in Sainsbury’s are currently up 4.64 percent at 247.90 pence per share. (1024GMT)

Aveva and Schneider deal off the table after six month talks

Miranda Wadham
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0
Aveva and Schneider deal off the table after six month talks
British electrical engineering company Aveva (LON:AVV) has called off its proposed merger with Schneider Electrics (EPA:SU) due to unsurmountable costs and risks. Aveva’s board announced this morning that “following a period of extensive due diligence, the Boards of AVEVA and Schneider Electric have been unable to reach agreement and discussions have been terminated by mutual consent.” Aveva’s chief executive Richard Longdon said the negotiations had taken too long, and had effectively “killed the deal.” The £1.3 billion reverse takeover would have involved Aveva acquiring Schneider’s software arm, in exchange for a majority stake in Aveva. However, after six months of negotiations, the complex deal was found to be too costly. Schneider said in a statement that “The two parties have decided to stop their discussions by mutual consent as no agreement could be reached on the terms of transaction.” Shares in Aveva have taken a big hit on the news, trading down 33.8 percent at 1434 pence per share. Schneider have remained firm, however, up 0.69 percent. (1005GMT) 
15/12/2015

Which Shares Are Providing The Best Alternative To Buy-to-Let?

UK Investor Magazine
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Which Shares Are Providing The Best Alternative To Buy-to-Let?

The Alternative to Buy-to-let

UK property prices have consistently increased over the last six months, driven by chronic under supply and improving demand.

However, the government has shaken up the Buy-to-let market by increasing stamp duty, leaving investors questioning whether a Buy-to-let is the best way to benefit from the UK’s booming house prices.

This report explores how equity investments are an attractive alternative to buying a property and outlines specific stocks which are set to benefit from the favourable UK property market.

Download this report for free now.


Download ‘Which Shares Are Providing The Best Alternative To Buy-to-Let?’ for free now.
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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

Alibaba Group acquire South China Morning Post, leading to independence concerns

Miranda Wadham
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0
Alibaba Group acquire South China Morning Post, leading to independence concerns
Chinese internet giant Alibaba Group have agreed to acquire Hong Kong’s English-language paper the South China Morning Post, in a deal worth $266 million. Like most written publications, the newspaper has been suffering from falling circulation as it tries to adapt to the growing online market, and SCMG Group have said that they hope the sale to Alibaba will “unlock greater value” from the paper. However, there have been concerns over the future of the paper’s editorial independence; The South China Morning Post has a reputation for reporting on issues censored by mainland China, and Alibaba group’s close connections with Beijing have been brought into question. Alibaba’s Executive Vice Chairman Joe Tsai dismissed suggestions Alibaba would compromise the newspaper’s editorial independence, but said the world needed “a plurality of views when it comes to China coverage”, and adding that Alibaba purely aimed to utilise technology expertise to develop the paper. 
14/12/2015
 

Tribal Group fall over 50 percent on slow trade

Miranda Wadham
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0
Tribal Group fall over 50 percent on slow trade
Education software company Tribal Group (LON:TRB) saw shares fall by over 50 percent this morning, after issuing a disappointing trading update. The company said that sales momentum had been slow this year, with several contracts taking longer than expected and therefore being moved into 2016, causing a hit to year-end profit. As shares continue to fall, Tribal announced that the group will remove their listing from the Official List and apply to trade on the AIM market instead. Richard Last, the Group’s Chairman, said in a statement: “Despite considerable effort, a number of larger customer programmes have moved forward more slowly than previously anticipated, resulting in increased delivery costs, and recognition of related revenues will be deferred beyond the current financial year. “We have therefore announced today that the Company proposes to launch a rights issue to raise up to £35 million, the proceeds of which will be primarily used to reduce debt, and for working capital. “Additionally, the Company is proposing to apply for admission to AIM. AIM is a market appropriate for a company of Tribal’s size, and it offers greater flexibility with regard to future transactions.” Tribal provide software and services to the education management market, including student management software and performance improvement solutions to universities, colleges and schools, both in the UK and internationally. The Group are currently trading down 54.94 percent at 24.50 pence per share. (0829GMT) 
14/12/2015
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