Government to intervene in shale gas applications
The government have just announced that shale gas will be made a priority in the UK, telling councils to fast-track planning applications.
Communities Secretary Greg Clark has said that councils must rule on shale gas applications within the 16 week timeframe. If they do not, the government may take over the planning decisions, and may also reconsider some failed applications. Although ministers already had the power to intervene in council decisions on this matter, the Department of Energy and Climate Change has said it is likely to become more frequent.
In a statement, Energy Secretary Amber Rudd said:
“To ensure we get this industry up and running, we can’t have a planning system that sees applications dragged out for months or even years on end. We now need, above all else, a system that delivers timely planning decisions and works effectively for local people and developers.”
Environmentalists say it makes a ‘mockery’ of the government’s promise to give more power to the people.
The announcement could well be a response to Lancashire County Council’s recent rejection of Cuadrilla’s shale gas applications, after it took a year to decide.
The government’s announcement is seen as a response to Lancashire County Council’s recent rejection of Cuadrilla’s shale gas applications after more than a year of deliberations.
A spokesman told BBC News: “It would be very unfair to suggest that we didn’t go as fast as possible. This was the first decision in the UK on fracking so there was a lot of pressure on us to get it right.”
Cryptocurrency fund offers alternative investment
Bitcoin Capital, a cryptocurrency fund managed by Startjoin Tech CEO Max Keiser, showed the potential for bitcoin by raising over $1 million through a crowdfunding campaign on platform BnkToTheFuture.
Bitcoin Capital will invest funds in mining, early-stage startups and cryptocurrencies, with daily dividends paid out in bitcoin. The fund is described as high return and high risk.
Founder Max Keiser, a financial journalist, virtual currency inventor, entrepreneur and investor, and will manage the new fund, along with Simon Dixon, an ex-investment banker, investor, entrepreneur and co-founder of BnkToTheFuture.
Keiser has always been an advocate of cryptocurrencies. He says:
“I have been critical of the traditional financial system for many years. I was the first global news outlet to cover bitcoin when it was trading at $3, recognizing its potential to change the world. Many startups in the bitcoin space credit Keiser Report for getting them started in the business. Bitcoin Capital allows the founders and investors to experiment with new crypto financial business models and currencies to transform global finance.”
Although investing in venture capital usually involves a little patience before seeing a return, Bitcoin Capital is able to pay investors daily dividends by investing a third of all funds raised in bitcoin mining. Bitcoin mining invests in sophisticated hardware that provides security to the bitcoin network in return for newly-created bitcoins.
“We have developed a model for finding startups to invest in which involves them initially crowdfunding through the Crypto CrowdFunding site – StartJOIN, and then Bitcoin Capital may be able to top them up if they successfully raise their funds through an equity offering on BnkToTheFuture.com,” said co-founder Simon Dixon, CEO of BnkToTheFuture.
Cryptocurrencies are becoming increasingly popular, especially with new start-ups and finch companies, and to provide a shelter from volatile currency markets. The fund invests in a portfolio of Bitcoin and other crypto currencies to give investors a diverse portfolio and full exposure to the growth of the ‘Blockchain sector’.
Greka Engineering soars 133%
Unconventional gas sector engineering company Greka Engineering & Technology Ltd. (AIM: GEL) is trading up 133% this morning, after announcing that they have entered into a construction contract with China United Coalbed Methane Corporation, the state-owned Chinese coalbed methane company.
The contract is to modify the power facilities of four valve groups for the purpose of connecting and powering 56 CUCBM wells and follows the successful pilot program to connect one valve group to power 10 of CUCBM’s wells which completed in 2014. Greka Engineering will be responsible for power line construction and support equipment installation.t
The work is to be completed by December and is expected to result in the ongoing supply of power by Greka Engineering to the connected wells.
Randeep S. Grewal, Chairman of Greka Engineering, commented:
“We are pleased to see the development of our relationship with CUCBM. With over 1,500 wells ultimately requiring connections to power grids at the GSS block, this represents an excellent growth opportunity for the Company, which should both expand our engineering footprint and contribute to the Company’s profitability this year and beyond.”
Roche pharmaceuticals in $425 million deal
Swiss pharmaceutical company Roche (VTX:ROG) are trading up 2 percent after announcing plans to acquire US diagnostics firm GeneWEAVE Biosciences in a deal worth $425 million.
The Swiss group’s primary focus is fighting “superbugs”, and the agreement will give Roche access to GeneWEAVE’s “Smarticles” technology.
Roche will pay shareholders of the privately held Californian company $190 million upfront and further $235 million depending on the future success of its products.
Roche discover, develop and provide diagnostic and therapeutic products and services for diseases worldwide. The company is currently trading up 2% at 276 pence per share.
Cineworld posts strong results
Cinema chain Cineworld (LON:CINE) announced strong half yearly results this morning, with UK revenue at £219 million, up 8.4 percent on the year before.
Group revenue climbed 11.3pc to £329.1m and pre-tax profits for the six months to July more than tripled, up from £13.9m to £46.8m.
In a statement, the company said:”The strongest titles released during the period were “Fifty Shades of Grey”, “Fast and Furious 7”, and “Jurassic World”, all of which broke box office records…alongside other titles such as “Avengers: The Age of Ultron” resulted in overall pro forma revenue growth of 11.3%.”
In February last year the cinema chain moved international, acquiring Polish chain Cinema City for £272m in cash with a 24.9pc stake in the combined company.
The company said its interim dividend would rise by a third to 5p a share. Cineworld is currently trading up 2% at 559 pence per share.
Michael Page pays special dividend
Recruitment firm Michael Page (LON:MPI) announced their half yearly results this morning, saying it would pay out a special dividend of £50 million pounds to its shareholders.
The company reported a higher than expected half-year profit of £40.4 million, with strong demand in all regions, pulling the firm into a fourth consecutive quarter of double digit profit growth.
Chief executive Steve Ingham said: “For the fourth successive quarter we delivered double-digit gross profit growth in constant currencies and have continued to see improvement in all our regions.
“Our five high-potential markets of Germany, Greater China, South East Asia, the US and Latin America, despite the challenges in Brazil, are performing at a record level and now represent 30% of group gross profit”
The announcement is the first time the company have paid a dividend like this, preferring to buy back shares.The two dividends will be paid in October.
Michael Page are currently trading up 3.6 percent on the news, at 546 pence per share.
Yuan drops for third day running
China has devalued its currency for a third day running, after the first surprise devaluation on Tuesday.
The central bank stated today that there was no basis for further depreciation in the yuan given strong economic fundamentals. The Chinese markets reacted positively to the news, reversing early losses and rising more than 1 percent. The CSI300 index .CSI300 rose 1.5 percent to 4,075.46, while the Shanghai Composite Index .SSEC gained 1.8 percent to 3,954.56 points.
Should the yuan trade in the lower end of its 2% margin below the midpoint, the central bank may well lower the rate again on Friday.
Q1 disappointing for China’s Alibaba
Chinese e-commerce giant Alibaba (NYSE:BABA) has fallen 6.9% after releasing disappointing Q1 results.
Revenue was $3.2 billion, up 28% on the year before, but lower than analysts’ expectations of $3.39 billion.
In early trading the stock hit its lowest price ever, with Ihares falling 18% since it went public last September.
Alibaba Group’s chief financial officer Maggie Wu said: “We made significant progress monetising our mobile traffic, with our mobile revenue exceeding 50% of our total China commerce retail revenue for the first time.”
Gross merchandise volume also slowed, growing at its slowest pace in three years. However, the company reported revenue growth fuelled by sales from tablets and online.
Alibaba operate China’s largest online sales platform, Taobao Marketplace and several online wholesale marketplaces. The stock is currently trading at 72.25 cents per share.
Crowdfunding diversifies into horseracing
Crowdfunding began as a simple way for entrepreneurs to raise money for projects, but it has since diversified into more niche areas. Unbound is a crowdfunding site for authors, Junction is a site specifically for film finance – so perhaps it should come as no surprise that there is now a crowdfunding platform for horseracing.
Crowdracing is the first crowdfunding site designed to allow the public to fund a racehorse, and become a part owner in the process. Launched in November 2013, it is a unique idea and has the right tools to succeed; its technology partner is Crowdcube, one of the most successful crowdfunding platforms on the market, who have raised over £16 million since their launch.
Founder of the site, Craig McKenna says, “Crowdfunding is growing in popularity as a way for young businesses to raise finance from ‘the crowd’. Now Crowd Racing is taking this model into the wonderful world of horse racing. Owning racehorses will no longer be reserved for the rich and famous; now anyone can genuinely own a share of a Thoroughbred.”
One off costs begin at £90, and owner benefits always include a share of the prize money and share of the proceeds from the sale of your horse. Exit strategy is set out clearly from the beginning, meaning you know exactly when the horse will be sold and your money will be – touch wood – returned to you.
The site offers investors the chance to work with some of the best trainers in the UK, including Nigel Twiston-Davies, Jeremy Gask, Fergal O’Brien, Dan Kubler, Nick Alexander and Keith Dalgleish.
For trainers and syndicate managers, it is a new way to fund the purchase of racehorses and stables expansion by crowdfunding for equity, and having a platform to connect with ordinary people interested in racing.
The site is currently offering the opportunity to invest eith ex-footballer Ian Wright. The trainer is Jeremy Gask, one of an elite group to have trained winners in the UK, Australia and Dubai and best known in the UK for his top sprinter Medicean Man. The pair are looking for co-owners and an investment of £80,000, £26,000 of which has already been raised. The colt is by Dark Angel and the first foal from the winning mare Music Pearl. The opportunity is on offer for another 19 days – for more information, visit CrowdRacing.
Miranda Wadham on 12/08/2015 - @mlwadham
American Apparel issue investor warning
Teen clothing retailer American Apparel (NYSEMKTL:APP) stated on Tuesday that it may not have enough cash to keep the business going beyond 12 months, and warned shareholders and investors that they may not see a return on their money.
The company is in the midst of a law suit with its founder and former Chief Executive Dov Charney over claims of defamation and alleged misuses of funds, and has faced several warnings over the “gratuitously sexual” nature of its adverts.
The American retailer has been posting losses for the last five years, issuing a bankruptcy warning in 2011. Its net loss for the quarter is expected to be at $19 million, compared with $16 million a year earlier.
American Apparel stock has fallen nearly 80% this year, closing up last night at 20 cents per share.