MarketLine Blog

Posts about Uncategorized

Toshiba operational profit downgrade: Japanese company now more dependent on turnaround plan succeeding

MarketLine

The announcement of a five-year turnaround plan towards the end of 2018 was met cheerily by stock markets; even though several profit-making businesses had been sold, expectations were the company would begin to recover after being flushed with funds from the NAND sale. Yet now the company has reported results that are well down on original expectations, casting doubt over how soon the company can return to being a safe bet for investors. The stated ambition is to reach profit margins of at least 10% when the five-year plan concludes… Read more

Angling Direct: Attempt to consolidate fishing industry

MarketLine

Angling Direct is the largest specialist fishing tackle and equipment retailer in the UK. The company had humble beginnings, starting as a single tackle shop in the Norfolk Broads. As of 2018, it sells a comprehensive range of over 21,500 fishing tackle products and associated angling paraphernalia, including its successful own brand, ‘Advanta’, launched in March 2016. In July 2017, the company cast off into the Alternative Investment Market (AIM) on the London Stock Exchange, entering the next stage of growth. The initial public offering raised GBP9m ($11.6m) to fund… Read more

New Zealand: New efforts to curb skyrocketing house prices

MarketLine

New Zealand has the world’s most frenetic property market, with prices in Auckland, New Zealand’s largest city, now outstripping London. In 2017, New Zealand house prices were the most unaffordable in the world and prices in Auckland have risen by 75% over the last four years alone. Home ownership is also low. The share of owner occupied dwellings has fallen from 74% of all private dwellings in 1991 to 63% in 2018. The last five years have also witnessed a rise in homelessness. At the same time, New Zealand has… Read more

Tesco & Carrefour – Strategic partnership protecting wafer thin margins

MarketLine

All the big traditional supermarkets are trying to cut costs and improve profitability, as they adapt to an array of pressures and changes which are reshaping the industry. Grocers in Europe have come under pressure in recent years from the expansion of Lidl and Aldi, the German discounters that offer a narrower range of products bought in huge volumes at deeply discounted prices. Additionally, traditional grocers are under increased pressure from Amazon fearing the potential disruption it could cause in the grocery sector. As efforts by traditional retailers to shore… Read more

Brandless The Procter & Gamble for millennials

MarketLine

Brandless, a startup e-commerce consumer packaged goods company, wants to set a landing point for consumers who seek quality and transparency, and want to avoid brand loyalty and choice overload typical for the majority of grocery stores. By selling its products online in no-frills packaging, Brandless claims to save consumers up to 40% by eliminating hidden costs associated with marketing, branding, and advertising for a national brand. Through the principles of its business model, Brandless is creating a direct relationship with its consumers, which most CPG brands do not actually… Read more

Chinese ban on waste imports: End to off-shoring dirt

MarketLine

Introduction of the ban on imported solid waste, coming to force in China as of January 1, 2018, means the country will be importing a lot less of foreign waste material, and replacing it with recycled material collected in its own domestic market instead. China’s dominance in manufacturing means that for years it has been the world’s largest importer of recyclable materials. The country’s hunger for plastic, the most difficult waste material to dispose of, has spawned a lucrative industry where plastic waste was purchased from the international market and… Read more

Snapchat: Popularity germinates, safety concerns arise

MarketLine

Snapchat, the billion dollar social media company has grown substantially in value terms and very quickly over the past five years. With an increasing amount of new developments, Snap Inc. has somewhat introduced a new development which could revolutionize users’ experience with the smartphone’s interference with regards to day to day activities. Snap Map reveals a user’s location in real time to his/her friends or public in a design friendly interface which could mean friends can track exactly where their friends are at any point of time. With some positive… Read more

Greater Manchester mayoral elections: Manchester shows little interest in the predicted Conservative landslide

MarketLine

  The Greater Manchester Mayoral Election during the local election period of May 2017, was a particularly interesting one. Despite strong Conservative gains nationally, this was not reflected in the Greater Manchester vote. The Labour Party win was a white wash and even areas that traditionally had leanings towards the Conservative party did not show a strong Conservative turnout. What was also seen was that, particularly in the case of the Manchester Central district, deprivation or affluence is a very poor indicator of voting intention as both poor and wealthy… Read more

Namibia: NEEEF is not the solution. New policy would be bad for the economy

MarketLine

NEEEF is not the policy the Namibian economy requires at present. Businesses, however big or small, would be required to be at least 25% owned by people described as ‘disadvantaged persons’ and occupy half of board and management positions. The suggested legislation appears to be an effort towards what amounts to forced redistribution of wealth and has similarities with the land redistribution attempted in Zimbabwe. Ownership is not the only target: spending and investment would be subject to new controls too. Problems regarding implementation are legion. Given approximately 40% of… Read more

Saab: Company is confident about Gripen sales, but 300 units is a tough ask

MarketLine

In a world full of eye watering price tags and ludicrous development times the Saab Gripen fighter jet has been able to carve out a path of its own. For those unable to pay the entry fee for an F-35, F-22 or Eurofighter, there are few other options to maintain a viable air defense system that can compete with dangerous neighbors. For those that can afford it, sometimes it not politically expedient for the west to sell their prize fighter jets to countries they are suspicious of, so they usually… Read more

Australian Work: 457 to be abolished

MarketLine

Australia has always been a country which is protective of its individuals and its environment. With growing concerns of an increased number of individuals from other countries moving to Australia for work and to start a new life, especially in the current political climate in other countries, the Australian government says it is looking out for the Australian nationals by cutting down the list of careers on the 457 visa list. This will be replaced with two shorter visas with limited possibility for the visa holders to apply for permanent… Read more

President Park Impeached: Relations with chaebols could change forever

MarketLine

Legislation designed to curtail the strength of chaebols has traditionally failed to discover parliamentary approval; now amendments to several acts have found new impetus following the impeachment of the president. Whilst voters await the coming election, prospective candidates are seeking to assert their case for a change in how chaebols operate in the South Korean economy. However, despite the rise in support, problems will need to be overcome for lasting change to occur. Previous efforts have fallen flat; this time there is a far greater chance of success. Moon Jae-in,… Read more

Gig Employment: Not a smooth ride

MarketLine

The number of individuals defined as self-employed is growing aided by the latest trend of gig-employment. These self-employed individuals serve to increase competition between those seeking full time employment and those who prefer to work contract to contract. A recent change in the mindset of the gig-employment workers has caused a shift in working patterns with these workers now beginning to seek out full time employee status and the benefits which accompany this. Businesses which previously exploited these gig workers (e.g. Deliveroo and Uber) are now under scrutiny and face… Read more

Once Upon A Time At Christmas… The John Lewis Formula

MarketLine

Advertising has been an increasingly important aspect in modern day business with companies spending millions on advertising campaigns. Every now and then, an advertising campaign can capture the imagination of the people watching which helps to increase the profile of a brand substantially. In the UK, one such example is that of the John Lewis Christmas advertisement. From 2007 onwards, John Lewis has evolved its Christmas adverts into something of a Christmas tradition. Every year, people anticipate the release of the new advert speculating on what it may contain with… Read more

UK Economy – held back by euro area Treaty

MarketLine

The Maastricht Treaty has been slowly asphyxiating any possibility of sustained economic recovery in Britain. It has been partially responsible for the erratic recovery of manufacturing, production and construction industries. The Gross Domestic Product (GDP) of Britain peaked back at pre-crisis level in the second quarter of 2013 driven mainly by the growth of the services industry. This industry is 13 per cent larger in value compared to 2009 (figure below). Production, construction and manufacturing industries are on average 7% smaller than their pre-crisis levels. The majority of UK industries… Read more

Airbnb: The sharing economy company encounters resistance in Berlin

MarketLine

Airbnb is one of the biggest sharing economy success stories of recent years and along with companies such as Uber, Lyft and Task Rabbit, Airbnb has found a new way to use to a widely available resource by applying new smart phone technology. Essentially the program allows apartments, flats, houses and rooms to be advertised for rent, and visitors to a city to have a different experience to what might be provided by a traditional hotel chain. Local knowledge, unusual locations and a homely experience, are some of the reasons… Read more

The dichotomy between H&M’s fast fashion business model and sustainable cotton

MarketLine

H&M is a fashion retailer with over 4,000 stores in 61 markets worldwide. The adoption of the fast fashion business model has been key to the company’s huge expansion since 2000. Fast fashion has a four to six week turnaround, much quicker than traditional collections which were released two to four times per year. As a result, clothing is more on-trend but it also more throwaway. The production of clothing has a huge environmental impact, particularly in the case of cotton. Cotton uses a huge amount of fertilizers and pesticides… Read more