Business news 29 August 2024
Nvidia, OpenAI, a reset with the EU, take hikes, markets, insolvencies, money laundering & more business news that we thought would interest our members.
James Salmon, Operations Director.
Nvidia
After markets closed, Nvidia released its much anticipated figures and reported Q2 revenues of $30bn and EPS of $0.67 both beating forecasts of $28.8bn and EPS of $0.64. Its quarterly revenue and profit has more than doubled! The problem is, that the report isn’t quite uninhibited good news in the eyes of investors.
The board provided guidance of $32.5bn revenues for Q3 +/- 2% and said it would launch a new $50bn share buyback.
However, markets reacted negatively to supply concerns and CEO Jensen Huang had to address concerns over chip supply specifically of its new Blackwell chips. Therefore the report isnt as bullish as hoped. Importantly though, these are supply issues and not demand issues, and the appetite for the AI enabling chips remains as strong as ever. So, this should not mark the end of the AI boom.
Nvidia slumped more than 8% in post-market trading.
OpenAI
Joining the AI market boom, OpenAI is reportedly getting closer to raising new funding at a valuation of more than $100 billion in an investment round led by Thrive Capital. This would make OpenAI one of the world’s most valuable venture-backed startups.
Reset with EU will not reverse Brexit
Sir Keir Starmer says plans to boost relations with the European Union do not mean reversing Brexit. The Prime Minister said that while he was “absolutely clear” the Government wanted to reset relations with Europe, this “does not mean reversing Brexit or re-entering the single market or the customs union.” Sir Keir, speaking at a joint news conference with German Chancellor Olaf Scholz, said he wanted a closer relationship with Europe and detailed how a new agreement aimed to boost trade, create jobs and deliver economic growth in both countries.
Chancellor refuses to rule out tax hikes
Chancellor Rachel Reeves has refused to rule out increasing inheritance and capital gains taxes. Ms Reeves was pressed on whether tax hikes were on the way after Prime Minister Sir Keir Starmer warned that the upcoming Budget will be “painful” as officials look to plug a £22bn “black hole” in the public finances. Mr Reeves refused to deny or confirm which levies – if any – could be adjusted, saying: “I’m not going to write a Budget two months ahead of delivering it.” She did, however, say: “We’re going to have to make difficult decisions in a range of areas.” Ms Reeves told Sky News: “On spending, on welfare and tax, we’re going to have to make a series of decisions,” but insisted details will be delivered “in the right and proper way” in the Budget. It has been suggested that Ms Reeves may look to lift the rate of capital gains tax so it falls in line with income tax. Analysis from the Institute for Fiscal Studies shows that equalising the two could raise £16.7bn.
Markets
Yesterday, the FTSE 100 closed flat at 8343.85 and the Euro Stoxx 50 closed up 0.29% at 4913.03. London banking shares fell on fears of a Labour tax raid. NatWest and Barclays both declined by circa 3%.
Overnight in the US the S&P 500 dropped 0.60% to 5592.18 and the NASDAQ fell 1.12% to 17556.03.
This morning on currencies, the pound is currently worth $1.318 and €1.189. On Commodities, Oil (Brent) is at $78.5 & Gold is at $2517. On the stock markets, the FTSE 100 is currently up 0.2% at 8361 and the Eurostoxx 50 is up 0.6% at 4943.
Investors panic over potential tax hikes
Investors reacted negatively to news of potential tax increases on UK banks, leading to declines in share prices at lenders including Barclays, NatWest and Lloyds. The concerns were ignited by Prime Minister Sir Keir Starmer saying the upcoming Budget would be “painful” and warning that “those with the broadest shoulders should bear the heavier burden.” While analysts at Citigroup said a levy on banks “strikes us as somewhat less likely, having been the subject of pushback from the Chancellor pre-election,” Dan Coatsworth of AJ Bell, commented: “No one is going to shed any tears if the banks are forced to hand over more of their profits,” as they have “made big money from higher interest rates, profiting when the rest of the country has struggled through a cost of living crisis.”Simon French, chief economist at Panmure Liberum, highlighted the uncertainty surrounding potential tax increases, suggesting that predicting specific sectors for tax hikes is “something of a fool’s errand.”
PM sparks tax raid concern
Amid speculation that the Budget could deliver higher rates of capital gains and inheritance taxes, wealth managers have reported a surge in inquiries from clients concerned about potential sell-offs of shares and properties to mitigate losses. Andy Butcher of wealth manager Raymond James said: “We’ve had lots of inquiries about how to minimise capital gains tax – and whether it’s worth realising gains now and paying capital gains tax ahead of the Budget.” With Sir Keir Starmer reiterating a pledge that there would be no hikes to income tax, VAT or National Insurance, Laura Suter of investment platform AJ Bell said the Prime Minister’s comments “added fuel to rumours around increases to capital gains tax and inheritance tax.”
Middle classes face tax hit
Allister Heath in the Telegraph says that while Labour previously said it had no plans for further tax increases, the Government is now warning of a “painful” Budget. Mr Heath, who says the middle classes may face the brunt of any tax hikes, argues: “Real growth entails a tax system that rewards work, investment and success.”
Money laundering cases climb in H1
There has been an increase in the number of alleged fraud cases heard in Crown Courts in the last six months, according to KPMG analysis, with money laundering being the most common fraud type by value. KPMG’s Fraud Barometer shows that there were 122 fraud cases in the first six months, with this is up from 105 during the first half of 2023. The data shows that there have been 9 cases linked to money laundering, with these worth a combined £128.2m. The total value of fraud cases hit £305m in H1, with this 14% down on the £354.2m seen in the same period last year. While 41 fraud cases totalling £33.2m involved the general public, the 26 cases related to the public sector had a combined value of £193.4m. Roy Waligora, partner and head of UK Investigations at KPMG, said money laundering “continues to be a problem in the UK due to the complexity and sophistication of financial systems that can be exploited for illegal activities.”
UK Banking Complaints Surge 70%
Complaints from bank customers in the UK over financial products soared 70% last quarter from a year earlier, mostly driven by disputes linked to credit cards and car loans, according to the Financial Ombudsman Service. There were almost 75,000 complaints in the last quarter compared to 44,000 in the second quarter of 2023 (as it happens the writer was one of the complainers, but that’s another story).
Grafton
Grafton says the housing market is normalising and consumer confidence improving, despite short-term uncertainties. It affirmed full year expectations and started a share buyback.
Drax
Drax is to pay £25m in penalties after Ofgem found it failed to report accurate data following an investigation into its biomass wood burning which it is claimed comes from timber from rare forest areas in Canada.
Telegram
Is this the end of consequence free social media? Pavel Durov, the Russian founder of the encrypted messaging app, Telegram was arrested in France, accused of failing to cooperate with authorities and over claims that the messaging service failed to properly fight crime on the app, including the spread of child sexual abuse material. Elon Musk says the arrest is an assault on free speech. But how much support will he get? Given Telegram’s complicity in the distribution of child sexual abuse material, drug trafficking, the promulgation of far right falsehoods and money laundering.
Next year the UK’s Online Safety Act comes into force and may lead to similar actions here.
Berkshire Hathaway hits a Trillion
Berkshire Hathaway surpassed $1 trillion in market value, becoming the first US company outside of the tech sector to achieve the milestone. Shares of Warren Buffett’s conglomerate have risen 30% in 2024, outpacing the S&P 500’s 17% gain, thanks to strong insurance results and economic optimism. Berkshire Hathaway joins the small group dominated by technology giants like Alphabet, Meta Platforms and Nvidia.
Latest Insolvencies
Appointment of Liquidators – TRANSFERRY SHIPPING COMPANY LIMITED
Appointment of Liquidators – TIP TIMEOUT LIMITED
Appointment of Liquidators – R S TOOLING LTD
Appointment of Administrator – RNB (GROUP) LIMITED
Appointment of Liquidators – NOZAMA SOLUTIONS LIMITED
Appointment of Liquidators – RED RUM OPERATING COMPANY LIMITED
Appointment of Liquidators – MEPACC LIMITED
Appointment of Liquidators – SJ LUKE GROUNDWORKS LIMITED
Appointment of Liquidators – RP WINDING SERVICES LIMITED
Appointment of Liquidators – BELLNESS LIMITED
Appointment of Liquidators – IP&C SOLUTIONS LIMITED
Appointment of Liquidators – CW RESIDENTIAL LIMITED
Appointment of Liquidators – ADVANCED FINANCIAL PLANNING (N.E.) LIMITED
Appointment of Liquidators – THE BROADWAY (SPV) LIMITED
Appointment of Administrator – BEVERLEY WAY DEVELOPMENTS LTD
Appointment of Liquidators – CBA CONSULTING LTD
Appointment of Liquidators – BARNES AUSTIN CONSULTING LTD
Petitions to wind up (Companies) – BLINDING BI-FOLD DOORS LIMITED
Appointment of Liquidators – DEBORAH SMITH LTD
Appointment of Administrator – JLF MOVING SOLUTIONS LTD.
Appointment of Liquidators – SG LEASING (GEMS) LIMITED
Petitions to wind up (Companies) – ST ALBANS PLUMBING & ELECTRICAL LTD
Petitions to wind up (Companies) – NAVI BUSINESS GROUP LTD
Petitions to wind up (Companies) – RW BEAUTY PURCHASING LIMITED
Appointment of Liquidators – GAVI SOFTWARE SOLUTIONS LIMITED
Appointment of Liquidators – LANDRIS LTD
Appointment of Liquidators – KESWICK LAND LTD
Petitions to wind up (Companies) – CHAMBERLIN PLC
Appointment of Liquidators – INSTAPRINT LIMITED
Petitions to wind up (Companies) – J.O. CONSTRUCTION & DEVELOPMENTS LTD
Appointment of Liquidators – HOPE VALLEY RESIDENTIAL HOLDINGS LIMITED
Petitions to wind up (Companies) – TONY ORPHANOU & ASSOCIATES LTD
Appointment of Liquidators – EVOLVE 2 LTD
Appointment of Liquidators – ELITEBLISS LIMITED
Appointment of Liquidators – BRIDGE FARM KENNELS LIMITED
Petitions to wind up (Companies) – PROVENTURE HOLDINGS (UK) LIMITED
Appointment of Liquidators – DR PS BAXTER LTD
Appointment of Liquidators – FIFIELD WEB CONSULTANCY LTD
Appointment of Liquidators – DALTON HOUSE PROPERTIES LIMITED
Appointment of Liquidators – 4D BUILD LIMITED
Appointment of Liquidators – CAROLINE CECIL ASSOCIATES LIMITED
Why you should become a member of CPA!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have supported our members through all sorts of difficult trading environments. With high interest rates and a struggling economy and elevated insolvencies, our services can help your business navigate these difficult waters.
Unlike other credit management and debt collection companies, we offer a range of services to our members that are all included as part of a fixed annual subscription, tailored to your needs.
Under your annual subscription you will have access to our main services:
- Our Creditcare credit reports provide credit ratings and limits along with a host of detailed information on your potential customers to enable you to trade with confidence and set appropriate credit policies for new customers.
- Our monitoring service will alert you to any significant changes in the status of those customers.
- Our Overdue account recovery service can be used to chase up payment on any invoices to those customers that have not been paid on time. Unlike other debt collection companies, this service directs your customer to pay direct to you and allows you to maintain your goodwill with them, rather than inserting ourselves into your relationship with you customer and insisting they pay CPA instead. Our Overdue account recovery service resolves over 80% of accounts referred to us.
All of the above services and other complimentary services such address verification, are included in your subscription!
And for the small minority of debts not resolved through our Overdue account recovery service, you can refer the debt to our collections department to escalate the late payment collections process.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers and be warned of any potential risks. CPA has been improving business cash flow for over 100 years, by tackling late payers and campaigning against the late payment culture in the UK.
Unlike other credit management companies, we offer our members a fixed annual subscription regardless of how high the value of their debts maybe!
Rather than to borrowing more money to improve your cashflow, CPA suggests that business owners tackle the problem at its source. If late payments are a strain on your cashflow, then talk to CPA about how we can help you reduce those late payments.
Just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Do you have a commercial late payer that is causing you grief? Use CPA’s no-win, no-fee, commercial debt recovery service!
If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA’s collection department for purchase on recourse?
CPA’s collection department will then pursue the debt. We will be liable for any costs incurred and then when we have recovered the debt, we will pay you the net principle debt recovered less our percentage.
Once you have enjoyed that success then you can consider the more cost effective membership which includes our Overdue Account Recovery service and Status/Credit reports as well as a range of other complimentary services.
Just call 020 8846 0000 and ask for Godfrey Nelson or Cris Shirley (business hours) or email debtpurchase@cpa.co.uk today.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
Check our compensation calculator to see how much your business could be owed!
Discover NOW the potential value of late payment compensation hidden in your sales ledger!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.