Seraphim Space IT set for lift off

Andrew Hore
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Seraphim Space IT set for lift off

Seraphim Space Investment Trust is providing investors with an opportunity to invest in advanced space technology and the growing companies that are developing that technology. There is an intermediaries offer so small investors have a chance to take part in the £150m fundraising.
As well as the fundraising at 100p a share, Seraphim Space is issuing up to 30 million shares to acquire an existing portfolio of space-related investments. The current valuation of the portfolio is £26.1m, but four of the investee companies are in the middle of funding rounds and the final price depends on the valua...

Media Tech SPAC launches PrimaryBid offer

Andrew Hore
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Media Tech SPAC launches PrimaryBid offer

Media Tech SPAC is raising cash via Primary Bid ahead of a standard listing later this summer. The investment company is seeking to acquire media and technology companies. The company wants to raise up to £6m at 10p a share.
Riverfort Global Capital, which is likely to seek to launch other SPACs, and Barry Downes of Sure Valley Ventures are behind the venture. The focus is technology businesses in Europe that have a strong management team and innovative, scalable technology.
Areas of interest include digital technology, cyber security, social media, content distribution, virtual reality, gamin...

EasyJet share price: time is ticking on summer 2021 as CEO calls for easing of restrictions

Liam Roche
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EasyJet share price: time is ticking on summer 2021 as CEO calls for easing of restrictions

EsyJet Share Price

As reported yesterday, the EasyJet share price (LON:EZJ) took a hit, as Angela Merkel suggested that the EU should categorise the UK as a “country of concern”, in addition to implementing restrictions to those travelling from the UK.

With the EasyJet share price down another 2.26% on Tuesday, it has lost 11.98% over the past five days. Heading into July, and with the rising spectre of the Delta variant, investors will be concerned about the future prospects of the low-budget airline.

Balance Sheet

The good news for investors is that EasyJet’s finances are relatively strong. The airline should not have to undergo any drastic measures in the near future.

This is because the company has £2.9bn in cash and unused debt, while over the past year, EasyJet has also carried out a significant restructuring and cost reduction process.

The cash could allow the EasyJet share price to bounce back as the airline recovers when restrictions are eventually lifted, and will keep it operational in the meantime, even in the event of the worst case scenario.

Air Travel

So, what is the worst case scenario? It could take years for EasyJet to reach pre-pandemic levels of flights. And the airline could miss out on a whole summer of travel. But it remains difficult to know if this will happen.

What is known is that the emergence of the highly infectious Delta variant led the UK government to delay England’s reopening phase by a month, now July 19.

The airline industry, including Johan Lundgren, chief executive of EasyJet, has called on Boris Johnson to relax restrictions, especially for vaccinated people, but it appears to be to no avail.

It has been estimated that up to 195,000 travel jobs have gone or are at risk of being lost due to the pandemic.

Lundgren usurprisingly believes “that much of European travel could be opening up in a safe way”.

While the recent fall in the EasyJet share price could attract investors, there could also be further to go. In the meantime, investors and travellers alike may have to show a little more patience.

Ethos Invest launches world’s largest sharia-compliant fund

Liam Roche
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Ethos Invest launches world’s largest sharia-compliant fund

The fund is a milestone in promoting Sharia-compliant and ethical investments in the Western world

Ethos Invest, based in the UK, has launched its Financial Services & Technologies Fund, which will seek to raise £1bn in funds for private equity investments in sharia-compliant and ethical SMEs.

The fund will be the first of its kind and will invest in disruptive financial services companies.

While most of its capital will be deployed in the UK, there will be additional investments across Europe, Asia and North America.

“The uniqueness of the Fund is that it bridges the gap for private equity funds between the UK and other Islamic countries such as Saudi Arabia,” said Abdullah Medallah at Abdullah Medallah & Co. LLP who acted as a Legal Counsel.

The fast-growing Sharia-compliant investment industry is available across 80 countries but remains in relative nascence in Western markets.

This fund is a milestone in promoting Sharia-compliant and ethical investments in the Western world.

Shariah-compliant funds are investment funds that follow by the rules of Shariah law and the principles of the Islamic religion more generally.

“The fund brings together a team of experienced investment professionals, the Al Inma Investment Company, BMO Global Asset Management’s private equity team and Vistra, who serve as the Fund’s administrator,” Ethos Invest said in a statement.

Dr Quintan Wiktorowicz, partner at Ethos Invest, expressed delight at the launch of the fund:

“The Ethos team is excited to launch this Fund which represents a real milestone for Islamic and ethical finance in the UK and around the world. SMEs with strong ethical credentials are vital as we look towards a brighter future for the global economy and ensuring that these companies have access to capital is key. The Fund will ensure that this is taking place, especially in the Financial Services and wider technology spaces, and we look forward to partnering with many exciting businesses.”

US dollar strengthens ahead of this week’s US non-farm payroll report

Liam Roche
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0
US dollar strengthens ahead of this week’s US non-farm payroll report

‘A number significantly above the 700,000 mark could really get the dollar freight train running’

The US dollar is up by 0.38% on Tuesday against the pound as investors await this week’s non-farm payroll report. At the time of writing, the dollar is valued at £0.723076.

“Dollar strength continues to weigh on the euro and sterling, giving a modest boost to indices this side of the pond, while in the US despite some weakness in the futures markets remain in strong form,” said Chris Beauchamp, chief market analyst at IG.

“Money continues to flow into the US dollar, as the greenback continues its recovery from the lows of last week. The rosier US outlook is driving a renewed appreciation of US assets, even if the Fed has managed to muddy the waters on policy thanks to the recent FOMC meeting and the speeches following it.”

According to economists polled by Reuters, the US Labor Department will report a gain of 690,000 jobs for June, which would be up from 559,000 in May. Unemployment is expect to fall by 0.1% to 5.7%.

“This rise in the greenback is taking its toll on commodity prices, with gold under renewed pressure while oil becomes increasingly nervous ahead of this week’s OPEC get-together,” Beauchamp added.

Since the Federal Reserve’s policy meeting earlier in June, the dollar has been moving up, as the Fed said that the first interest rate rise could come in 2023.

“The potential for an upside surprise (in the U.S. jobs data) that pulls monetary tapering and tightening expectations forward is looming ever bigger for investors,” Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto, told CNBC.

“A number significantly above the 700,000 mark could really get the dollar freight train running, and no one wants to be tied to the tracks if that happens.”

Consumer credit figures suggest a return to normal

Liam Roche
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Consumer credit figures suggest a return to normal

Many households have built up a pot of savings throughout the pandemic

Consumers borrowed more than they paid off for the first time since August 2020, according to May figures released by the Bank of England.

Personal loans, overdrafts and credit cards, often referred to as net consumer borrowing, amounted to £280 during May.

It represents a shift in a prior trend as more people were paying off more than the amount they borrowed using consumer credit.

The amount of money allocated by households into deposits fell to £7bn in May, down from an average of £16.5bn during the six month period to April 2021.

Net mortgage borrowing meanwhile recovered to £6.6bn in May and appears to be stabilising.

Weeks of volatility came before, the Bank of England said, as households anticipated the conclusion of the stamp duty holiday.

Laith Khalaf, financial analyst at AJ Bell, believes that old habits die hard when it comes to consumer spending, “unless there is a lockdown in force”.

“Borrowing is on the rise, and savings are falling back, as the lifting of social restrictions has prompted consumers to reach for their wallets. The data is from last month, and so straddles a significant lockdown easing date. Since 17th May, hospitality and leisure businesses have been in fuller swing, so we can expect spending trends to have accelerated since then,” Khalaf said.

Many households have built up a pot of savings throughout the pandemic.

“Unfortunately those savings are earning next to nothing in the bank, and now inflation is on the rise, they’re actually losing their buying power more quickly. Indeed, the Bank of England now expects inflation to rise above 3% later this year, and that may yet prove to be a conservative estimate,” Khalaf said.

“For money that’s going to be spent in the short term, cash is still the only option, though a high street current account is likely to be offering a particularly dismal rate of interest so it’s worth shopping around for a bit more. For money that‘s not going to be used for the long term, five to ten years or more, the stock market might offer better protection from inflation for those who can tolerate the ups and downs.”

Supply@ME pens agreement with Italian Banking Group to start monetisation programme

Liam Roche
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0
Supply@ME pens agreement with Italian Banking Group to start monetisation programme

Supply@ME will acquire 10% of a fintech bank owned by the unnamed Italian banking group

Supply@ME (LON:SYME), the fintech platform which provides the ‘Inventory Monetisation’ service to manufacturing and trading companies, confirmed on Tuesday that it has reached an agreement with an Italian banking group.

The agreement has two specific conditions. Firstly, a commercial agreement to manage both the origination of new client companies and a multi-annual inventory funding plan. And second, the execution of a first inventory monetisation transaction involving a portfolio of Italian client companies.

Upon completion of the above arrangements, Supply@ME will acquire 10% of a fintech bank owned by the Italian banking group. This will allow Supply@ME to avoid the need for regulatory approval and will have the option to acquire an additional 10% of the fintech bank within the next two years.

The name of the fintech bank, which was valued at €34m – €50.6m, cannot be disclosed “due to the strategic nature of the transaction”, the company revealed today.

Alessandro Zamboni, SYME CEO, made further comment on the agreement:

“I am delighted to announce this agreement as a cornerstone of our inventory funding strategy. We can now begin to structure the monetisation of the first group of Italian client companies. This is a key initiative for Supply@ME and we expect that it will serve as the basis for an ongoing and scalable inventory funding programme for Client companies, starting in Italy. We believe that this will also provide further confidence to investors who have been awaiting the news of our first monetisation,” said Zamboni.

“We expect the agreement will create additional value for the Company, given the opportunity to invest directly in a Fintech Bank whose portfolio will grow as Supply@ME completes further rounds of monetisation. This transaction reinforces the positioning of SYME as an innovative fintech business, via non-credit transactions, aimed at assisting with the working capital needs of SMEs and large corporates.”

The Supply@ME share price is up by 6.69% on Tuesday to 0.38p.

UK house prices rise at fastest rate in 17 years on stamp duty frenzy

Liam Roche
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UK house prices rise at fastest rate in 17 years on stamp duty frenzy

Yearly rate of house price growth now at 13.4%

UK house prices are rising at the fastest yearly rate since 2004, according to figures released by Nationwide.

Month-on-month, the average price of a UK home increased in June, up by 0.7% compared to May. This means that the yearly rate of growth is now at 13.4%, the highest rate of annual growth in nearly 17 years.

Nationwide chief economist Robert Gardner said prices were closing in on a record high relative to average incomes, which he said makes it more difficult for first-time buyers.

“Another month, another rise in house prices. Not a surprise as many home buyers rush to complete before the end of the stamp duty holiday,” said Danni Hewson, AJ Bell financial analyst commenting on Nationwide’s House Price Index.

“There are many factors at play here. Cheap interest rates and the availability of low deposit deals have undoubtedly fuelled price hikes despite the country being slap bang in the middle of a pandemic which has impacted people’s economic health.”

“But that pandemic has also spurred the market on, changing our preferences. What was top of people’s wish list two years ago is a distant memory with the potential to spin out working from home indefinitely, or at least on a part time basis, expanding the geographical map for many and adding home office to the list of demands,” Hewson said.

Hewson does not feel the shift is likely to revert back and expects the market to remain “toasty” over the coming months. “The X factor will be unemployment. How many people will still be in a job once the furlough scheme ends? How many mortgage holidays will result in quick sales? There’s no getting away from the fact that the next few months will be difficult for many people once support is withdrawn,” Hewson said.

Last summer, Rishi Sunak cut the stamp duty tax on property purchases to reverse a slowdown in property sales at the beginning of the pandemic. In March, Sunak extended the tax cut to the end of June.

FTSE 100 off to a better start on Tuesday with homebuilders among the top risers

Liam Roche
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0
FTSE 100 off to a better start on Tuesday with homebuilders among the top risers

Following Monday’s disappointing turn, UK stocks have picked up on Tuesday with the FTSE 100 rising 0.5% to 7,106.

“Investors bid up shares in tobacco sellers, banks and telecoms, while there was mixed appetite for miners with Rio Tinto and Glencore among the biggest contributors to the index in points terms, while Anglo American was the biggest detractor,” said Russ Mould, investment director at AJ Bell.

Housebuilders were also in demand after new figures from Nationwide revealed that UK house prices grew at their fastest annual pace for more than 17 years in June, up 13.4%.

“Taylor Wimpey, Persimmon and Barratt Developments were among the top risers as investors hoped the frantic activity in the UK property market would benefit their earnings,” said Mould.

“The key issue is whether we’re at the peak of the activity as buyers rush to take advantage of the stamp duty holiday which starts to taper from the start of July.”

“However, with so many properties being snapped up fast, there could be many potential buyers waiting in the wings for the market to calm down a bit – suggesting that we may not see a massive crash once the stamp duty holiday comes to an end on 30 September.”

FTSE 100 Top Movers

Barclays (2.13%), Persimmon (1.62%) and Legal and General (1.61%) headed up the FTSE 100 during the morning session on Tuesday.

At the other end of the UK index, United Utilities Group (-1.8%), Polymetal International (-1.72%) and Anglo American (-1.52%) have lost the most ground so far today.

Facebook’s stock value goes past $1trn as antitrust lawsuit dismissed by US judge

Liam Roche
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0
Facebook’s stock value goes past $1trn as antitrust lawsuit dismissed by US judge

Facebook joins Microsoft, Amazon and Apple in being valued over $1trn

Facebook won a battle versus an American regulator yesterday causing the tech company’s stock value to surge past $1trn.

The ruling by the US judge will be welcomed news for tech giants as the Federal Trade Commission (FTC), along with a group of state attorney generals, launched the antitrust lawsuit in an effort to wrestle power from major tech firms.

However, the antitrust lawsuit that was aimed at compelling Facebook to sell Instagram and WhatsApp was dismissed by the judge.

The ruling both failed to limit the power of Facebook and preceded the company’s share price reaching a record high.

Shares in Facebook saw out the day up by over 4%, at $355.64, bringing the total value of the company to $1trn.

The judge ruled that the FTC did not give enough evidence to demonstrate that the social network was a monopoly. Having said that, the regulator is able to file another complaint as the case was not dismissed.

Facebook walks in the footsteps of fellow FAANG stocks, Amazon, Microsoft and Apple, all of which are valued above $1trn.

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