High street retailers are braced for their worst Christmas in more than a decade as they struggle with high taxes, economic fears and frenzied discounting only weeks into the season. The bosses of major chains have shared their concerns with The Mail on Sunday as Government efforts to ease the burden of tax on retailers appear to have foundered. Vital legislation designed to cut property tax for retailers in struggling high streets failed to make it though Parliament before it was closed down last week. Research by The Mail on Sunday has revealed that business rates have remained rigidly high despite rents falling as landlords cut lease demands for struggling shops. More than 12,000 high street stores are now paying more in business rates than in rent compared with around 500 in 2017, according to business rates consultants Altus.
City bosses have drawn up a plan to woo Chinese giants after Brexit and transform London into the ‘prime international location’ for Beijing firms to list their shares, The Mail on Sunday can reveal. Policymakers at the City of London Corporation – the body representing the interests of banks, insurers and other organisations in the Square Mile – believe there is an ‘urgent need’ to enhance relations with China and attract new financial services investment after the UK leaves the European Union. Documents seen by this newspaper say London is well placed to take advantage of the trade war with the United States, which has seen President Donald Trump threaten a crackdown on Chinese firms listing on its markets.
British Airways will use posts on Instagram and other social media platforms to help it pick new flight destinations. Millennials in particular are likely to choose where to go on holiday based on photos they’ve seen on social media and will consider how ‘Instagrammable’ a place or hotel is before booking. Willie Walsh, chief executive of BA’s parent firm International Consolidated Airlines Group SA (CDI) (IAG), said this had not affected decisions on flight routes before but would be taken into account in future.
BP (BP.) has warned that Hurricane Barry’s trail of destruction in the Gulf of Mexico hit production and increased its tax rate. The oil giant’s shares slipped 1.7%, or 8.45p, to 493.55p after it revealed 100,000 barrels were lost per day to the storm in July. The chaos forced the company to shut its rigs for two weeks, a trading update said yesterday. And because the storm affected a low-tax region, it meant BP had to produce more oil in regions with higher tax rates, increasing its overall bill.
Fund manager Terry Smith has been left red-faced after the brokerage firm he used to head was slapped with a £15.4million fine. Tullett Prebon, now a part of TP ICAP (TCAP), was found by the Financial Conduct Authority (FCA) to have ineffective controls around broker conduct in its rates division between 2008 and 2010. This, combined with a culture of lavish entertainment, allowed improper trading to take place. At one point, a Tullett Prebon broker claimed more than £15,000 from the company to pay for a luxury holiday to the US with his friend, a trader at a client bank. Tullett Prebon ended up paying for the ten-day trip to Las Vegas and California, during which time the broker racked up bills from dinners in expensive bars and restaurants, and hired two top-end sports cars as amusement.
The owner of airline Jet2 has lifted its profit expectations for the year after a rise in demand for flights and packaged holidays since the collapse of Thomas Cook last month. Dart Group (DTG) share price jumped following the trading update. However, the company said it remained ‘very cautious’ as the travel industry continues to face ongoing problems, including rising costs and waning consumer confidence in the face of a weaker pound and Brexit uncertainty. A weaker pound means higher costs for companies based in the UK, and also undermines the purchasing power of UK holidaymakers heading abroad.
MIDAS SHARE TIPS: Scotgold Resources (DI) (SGZ) – the Highland stock that really could be a gold mine. Midas verdict: Gold is trading at about $1,500 (£1,225) a troy ounce and economists expect it to move higher in the coming months as investors seek a safe haven. Scotgold should benefit from this trend. The company has struggled in the past, but it is close to production, with financing in place and an experienced team at the helm. For locals and lovers of the Highlands alike, there is also the appeal of supporting a successful Scottish gold mine. At 54p the shares are a buy.
MIDAS SHARE TIPS UPDATE: Ramsdens Holdings (RFX) shares rise as pawn shops that sell jewels sparkle thanks to strong gold prices. Midas verdict: The retail sector has been filled with profit warnings, shop closures and other tales of woe. Ramsdens seems to be holding its own. Its high street customers are loyal and it has a small but fast-growing online business selling jewellery and foreign currency. Ramsdens’ product range and ambition may continue to shield the business from some of the problems affecting the high street. But, with economic conditions weakening, shareholders have a right to feel cautious. Having enjoyed a 17% increase in the share price since last year, they may choose to sell half their stock and bank some gains. They can then keep the rest and hope that Kenyon continues to deliver.
