Royal Mail is a ‘declining business’ due to email – Cable

Investoo — Wed, 22 May 2013 18:50:43 +0000

Business Secretary Vince Cable has claimed that the Royal Mail is a ‘declining business’ due to the competitive threat posed by email.

Speaking to the Today programme, Cable said:

“These are good results and lot of that is down to the contribution made by the work force as well as good management.

“The big competitive threat to the Royal Mail is email. It’s a declining business, and in order for Royal Mail to survive they are going to have to invest heavily in the profitable bits of the business, which are basically parcels.”

FTSE 100 secures second highest ever close

Investoo — Wed, 22 May 2013 18:47:45 +0000

The FTSE 100 secured its second-highest ever close on Wednesday after it increased by 36.4 points to close at 6840.03 – equating to a gain of 0.5%.

The index is closing in on the all-time high of 6930.2 sat at the height of the ‘dotcom boom’

Vodafone revenues fall for first time in eight years

Investoo — Tue, 21 May 2013 17:53:32 +0000

Vodafone’s revenues fell for the first time in eight years following a reduction in European-based revenues due to the difficult trading conditions.

The network operator had to cut prices in Europe in order to retain customers, which contributed to an overall 4.4% fall in revenues to £44.4bn.

Despite the news, Vodafone’s share price remained relatively unchanged on Tuesday at 197.75p.

News Source: BBC

Royal Mail IPO awaits as it reveals £440m profit

Investoo — Tue, 21 May 2013 17:49:22 +0000

Royal Mail revealed profits of £440m for 2012, more than double the profits recorded in 2011, increasing talk that a Royal Mail IPO will happen this year.

The state-owned delivery service benefited from the growing trend of online shopping and a brand revamp.

News Source: SkyNews

Marks & Spencer and Capita shares drive FTSE 100 to new highs

Investoo — Tue, 21 May 2013 17:44:14 +0000

Strong performance from Marks and Spencer shares and Capita shares helped the FTSE 100 to add another 48 points and close at 6803.9 on Tuesday.

Today’s close of the FTSE 100, marked its fourth highest closing average in history.

Marks & Spencer shares rise by 6% despite a fall in annual profits.

Capita shares were also among the top FTSE 100 risers following news of a £1.2bn contract win with 02.

One third of savers do not know what ISA stands for

Investoo — Mon, 20 May 2013 17:30:21 +0000

Research from Nationwide Building Society has found that 66% of ISA savers feel the cash ISA limit should be brought into line with the Stocks and Shares ISA limit.

The respective research also threw out a number of interesting statistics such as 30% find ISA rules confusing and 32% do not know what ISA stands for:

“66% of ISA savers think, that if they could be increased, cash ISA limits should be brought into line with higher stocks and shares ISA limits for all savers, according to research by Nationwide Building Society, which also reveals that many people find the tax-free savings accounts complicated or confusing.

The findings show a majority of people may support Nationwide’s call to double the cash ISA limit from £5760 to £11,520, making it the same as the stocks and shares ISA limit. The Society says that not only will higher cash ISA limits benefit savers such as first-time-buyers and pensioners, it will also make the whole ISA system simpler.

This is borne out by YouGov research carried out online on behalf of Nationwide. The research found:

30% find ISA rules confusing

31% find the differences between cash and stocks and shares ISAs confusing – more so than any other aspect

23% say the different rules which apply to different types of ISAs put them off saving into any ISA

In particular, 21% find the annual limits confusing, 24% are confused by the way limits change every tax year, whilst 22% are confused by the timings for when they could invest in an ISA

In fact, 32% don’t know what ‘ISA’ stands for

Nationwide believes that bringing parity to the ISA limits will make them more accessible and less confusing, thereby helping to encourage a more positive savings culture in the UK. The research showed that people were particularly confused when it came to comparing stocks and shares ISAs with cash ISAs, so it is no wonder most people would prefer saving in cash over stocks and shares for an ISA (61% choose cash).

Nationwide’s research also revealed:

81% don’t know how much you could save into an stocks and shares ISA compared to a cash ISA

26% say it is unfair that you can save more in a stocks and shares ISA than you can in a cash ISA

22% of people say they would be more likely to save into an ISA if the limits were equalised

Richard Marriot, Nationwide’s head of savings, said: “ISAs are clearly popular and an extremely useful way of saving tax-free, but it seems a significant proportion of people are confused by the current rules. This could mean individuals are less likely to use them to save. Making the limits the same for both cash and stocks and shares ISAs would help to simplify them, giving savers more confidence about opening and getting the most out of their ISA. Calling for parity on ISA limits and the ability to transfer from a stocks and shares ISA to a cash ISA is just one of the ways in which we are working to meet our target of empowering 1 million people to start saving by 2017″.

Ocado shares ‘consistently underestimated’ by the city

Investoo — Mon, 20 May 2013 17:25:23 +0000

Ocado shares are ‘consistently underestimated’ by the city consensus according to Fidelity portfolio manager Tom Ewing.

Ewing’s Fidelity UK Growth Fund has a 4% position in Ocado and noted:

“The deal with Morrisons announced is incredibly positive for Ocado. Beyond the transformational financial implications it demonstrates that Morrisons agree with our view that online will be the primary driver of future growth in grocery retail in the UK and around the world.

Ocado, by continually focusing on the long term rather than the next quarter, has developed world leading technology in this area and stands to be a key beneficiary of consumers’ relentless pursuit of value, convenience and range.

Ocado’s potential has been consistently underestimated by the city consensus. This deal could mark the beginning of a significant shift in the market’s perception of the company and a recognition of the extraordinary economic value in its intellectual property.”

easyJet and RBS help FTSE 100 fly higher

Investoo — Mon, 20 May 2013 17:13:56 +0000

easyJet shares and RBS shares were the best performing FTSE 100 shares on Monday, with gains of 4% and 4.5% respectively.

At the close of business, London’s premier FTSE 100 index finished 32.57 points higher to close at 6,755.63.

The FTSE 100′s closing average on Monday was it’s highest closest level since late 2000.

Yahoo acquires Tumblr for $1.1bn

Investoo — Sun, 19 May 2013 17:53:48 +0000

Yahoo has acquired online blogging platform Tumblr for a fee belived to be in the region of $1.1bn, in an all-cash deal.

According to website All Things D, the Yahoo board has approved the acquisition.

It will be announced offiically on Monday morning the respective website indicates.

Formula One IPO on track for next 12 months

Investoo — Sun, 19 May 2013 11:27:05 +0000

The Formula One (F1) IPO is still on track to be realised during the next 12 months according to reports. The Formula One IPO is due to occur on the Singapore stock exchange, and had previously been planned for June last year.

The IPO could value the company at nearly £8bn.

News Source: Guardian