Apple warns on sales
Hit by coronavirus
As explored in our news pages this week, Apple (US:APPL) has warned on revenues for the quarter to March as a result of the coronavirus outbreak. The tech giant said that worldwide iPhone supply will be temporarily constrained, because its manufacturing partner sites – which are located outside of Hubei province – have been ramping up more slowly than anticipated since reopening. Demand for products in China has also, somewhat inevitably, been affected – given that all Apple stores and partner stores in the country have been closed. These are gradually reopening. Outside of China, customer demand has been in line with expectations.
Ninety One IPO
Investec spin-off
Ninety One – which is currently known as Investec Asset Management – has confirmed its intention to proceed with an initial public offering (IPO). The group was founded in South Africa in 1991 and had £121bn in assets under management as of last September. Ninety One’s shares will be listed on the main market of the London Stock Exchange, and the main board of the Johannesburg Stock Exchange. The group intends to have a free float of 60-65 per cent of its issued shares immediately following admission.
Wages climb
Highest point since before crisis
UK average weekly wages have bypassed their highest point since before the global financial crisis. According to new labour market data from the Office for National Statistics (ONS), real (adjusted for inflation) regular pay rose by 1.8 per cent between December 2018 and December 2019, to £474 – above the pre-downturn peak of £473 recorded in March 2008. The level of employment over the three months to December increased by 1 per cent to a record high of 32.9m. The level of unemployment reduced by 5.4 per cent to 1.3m.
Amazon CEO’s Earth Fund
$10bn pledged
Amazon’s (US:AMZN) chief executive, Jeff Bezos, is launching the ‘Bezos Earth Fund’, pledging $10bn to help fight climate change, which he called “the biggest threat to our planet” in an Instagram post. Mr Bezos explained that he wanted “to work alongside others both to amplify known ways and to explore new ways of fighting the devastating impact of climate change on this planet we all share”. He said that the bid to “save Earth” will require collective action from companies of all sizes, nation states and individuals.
Jupiter to buy Merian
£370m deal
Fund manager Jupiter Fund Management (JUP) is to acquire rival Merian Global Investors for £390m. The deal adds £22bn in assets under management, and will be funded through the issue of £370m-worth of new Jupiter shares and the issue of £50m of tier-two subordinated debt. Merian shareholders will own about 17 per cent of the enlarged group’s share capital. Jupiter said that the business is complementary and aligned with its high-conviction active approach and investment culture. The firm also said that the deal would diversify its existing business, with the current top five funds falling from almost half of assets under management to one-third.
BRC warns of Brexit shortages
UK consumers could face higher costs
A new report from the British Retail Consortium has warned that UK consumers face higher costs and reduced availability of goods if UK and EU governments do not agree measures to minimise trade friction. These measures include a zero-tariff trade deal and coordination on VAT, customs and excise procedures. The retail trade association has acknowledged that frictionless trade will become a thing of the past, it said higher tariffs and more extensive checks would “harm consumers, retailers and the UK economy”, adding that almost 80 per cent of the food imported by UK retailers comes from the EU.
Amigo cites buyer interest
Formal sale process
Shares in Amigo (AMGO) climbed after the provider of guarantor loans said that it had “received indications of interest from several parties” since the launch of its formal sale process on 27 January. Interested parties have entered into non-disclosure agreements and discussions are ongoing, albeit Amigo reminded investors that there’s no certainty an offer will be made. The board of the group also reserves the right to reject any approach or terminate discussions with any interested party.
Global dividends rose by 3.5 per cent to a new record of $1.43trillion in 2019, according to the latest Global Dividend Index from asset manager Janus Henderson. The underlying growth rate was5.4 per cent. Still, the moredifficult global economic environment meant that 2019 saw the slowest growth rate since 2016. In any case, 2020 is set to deliver the fifth year in a row of record dividends – with Janus Henderson expecting underlying growth of4 per cent to $1.48 trillion.
