Category Archives: Business

5 bites from the latest news

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Good afternoon! Here we are on this raining day with your daily quick update from London: five bites from the latest news specially selected for you and your needs.

  • MONEY : The British Retail Consortium (BRC) has decided to once again raise food prices. The shop prices rose by 3.2 per cent: the highest rate since it started the index two years ago and up from 2.5 per cent in June. Food prices were 9.5 per cent higher compared with July last year, against 7 per cent in June, says the Timesonline.co.uk. And we, the lucky customers that we are, have to pay the price increase of energy and transport costs for the supermarket!
  • OLYMPICS : What is the biggest problem in Beijing: the pollution or the protesters?! Athletes and visitors don’t seem to care about either. Any difficulty in conveying the latest results to the rest of the world has been lessened by a team of 4,000 IT professionals who will be working to communicate competition results to participants, spectators and the media alike within 0.3 seconds. 21,600 journalists are waiting to share their news with four billion TV viewers in their homes.
  • TRANSPORT : Passengers prefer cheap airlines over British Airways. The traditional summer travel boom never took off this year as British Airways aircrafts are flying with a quarter of their seats unfilled. The timesonlin.co.uk reports British Airways carried 94,000 fewer passengers than in July last year as higher fares and the worsening economic environment led to weaker demand. In the meantime Ryanair and Easyjet fill up their flights with offers and smart prices, selling millions of cheap tickets.
  • CULTURE : Whilst we are waiting for the famous Fringe Festival in Edinburgh, we can enjoy watching stand up comedy and unique performances in Camden Town, where the Camden Fringe Festival is on from 28th of July to 24th of August. During the 4 weeks we will have 316 performances (of 100 different shows) across 3 venues, a collection of experimental new theatre, comedy, musicals, poetry, improvisation and story-telling.

Something that you should know about the Stock Exchange

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“Think big, think positive, never show any sign of weakness. Always go for the throat. Buy low, sell high. Fear? That’s the other guy’s problem. Nothing you have ever experienced will prepare you for the absolute carnage you are about to witness. Super Bowl, World Series – they don’t know what pressure is. In this building, it’s either kill or be killed. You make no friends in the pits and you take no prisoners. One minute you’re up half a million in soybeans and the next, boom, your kids don’t go to college and they’ve repossessed your Bentley. Are you with me?”

Spoken by Dan Ackroyd in the 1983 film Trading Places as the two main protagonists are about to enter the stock exchange, but how close is this to the real thing? Common preconception is that it resembles a cattle auction on steroids as traders with dangerously high blood pressure throw absurd contorted hand signals across the room that appear to be complete nonsense but when in actual fact they are making or breaking people’s pension fund. Well, that may be slightly over-egged but you get the point.

Indeed, the first task of the morning for many businessmen in the City of London is to check the latest developments in the FTSE 100. But what is behind these numbers? How does the Stock Exchange work? We certainly could not presume to explain the complexity of the stock market in our little blog, but we can give you a tidbit of info on the system used for trading: The name of this particular method of communication between traders was called open outcry and it was a precise language to buy and sell orders in the pit (the trading floor). This system is still used in the London Metal Exchange; other than in the New York Mercantile Exchange, in the Chicago Mercantile Exchange, the Chicago Board of Trade, the Chicago Board Options Exchange and in the Minneapolis Grain Exchange.

However, In the Computer Age – the Fast Century, everything claims a faster, cheaper, more efficient way to achieve the best result by using a new generation trading system. It was in June 2007 when the London Stock Exchange’s new trading system went live: a new technology platform with a higher speed of trading and a better system capacity: market participants are now able to manage trades in around 10 milliseconds, knowing company prices within 2 milliseconds. New market strategies had to be rebuilt on this new system and nothing has been the same again.

So it seems that the ‘absolute carnage’ of the trading floor is now the stuff of (movie) history. The carnage rather has moved to a trader’s comfortable chair in an office of a large glass-clad tower block in Canary Wharf somewhere. That’s 21st century trading for you…

British Gas: the biggest one-off increase in energy bills

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Businesses and homes, beware: The biggest gas increase ever has hit us! The Telegraph.co.uk heads with the article, “British Gas hits customers with biggest one-off increase in energy bills ever recorded”. Families are paying £400 more a year for their energy than they were at the start of the year. The price increases, people tremble and the British Gas owners become richer everyday. The Times Online reveals that “British Gas owner makes almost £1bn profit”. BBC News speaks about “Anger over £1bn Centrica profits” and the Guardian.co.uk says: “British Gas provokes fury with biggest ever price rise”.

It’s a neverending history that splits the society: we need to use energy and we must save it. In the last years our society has to become more respectful of the world’s resources and the recent price increase of all the kinds of energy has helped the new saving policy. But even if the environmental activism is taking advantage, common people are scared. The Earth claims respect, but on one side billions of pounds profit earned by energy companies on the other millions worries about the escalation of the prices. Business Made Simple has addressed the problem and invited you to get involved and say what you think about the crisis. British Gas has promised it will not increase its bills again before the end of the year, but most energy experts were expecting a further round of price increases this winter. Can customers look on the bright side of this unbelievable increase?! What do you think?

Markets stormy and Exchange swinging from London to the world

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Welcome back to London Presence. In our daily press review, we want to talk again about the turbulant time for the Economy around the World. Bloomberg, our favourite reference, has underlined again today that the European confidence has dropped most since September 11 Attacks. In his analysis, the editor Fergal O’Brien explains how “Europeans’ confidence in the outlook for the economy dropped the most since the September 11 terrorist attacks…”.

Last week the German Finance Ministry spoke about the long way to a recovery in Europe’s biggest economy, the euro rose to $1.5916, whilst the dollar and the pound slumped against the euro. Then, after the announcement by the Treasury Secretary Henry Paulson concerning the possibility of raising interest rates, the dollar has started to rise against the yen once more. In the meantime the pound has stabilised against the dollar, but analysts have warned the pound is to weaken by the fear of a UK recession.

It’s a volatile period in which markets are stormy and exchanges are swinging in every direction. The bull and bear of the market seem to have replaced the inconsistency in London weather as we seem to have found a sunny patch for a change.

A lot of experts suggest just one solution: spreadbets. “Spreadbetting is a way in which risks can be reduced and overall returns enhanced”, say senior sales traders. But what is a spreadbet?

Keep in touch and we will soon explain what it means and how it works.

Latest News to start the new week

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Good morning! We are back to make you more of a Londoner. So here is a quick update on all the latest business news:

  • Here comes summer, and with it the spectacle of swathes of public sector workers taking to the streets. Soaring inflation is cutting real-terms pay, say the unions, but employers claim they can’t afford any more. From PublicFinance.co.uk
  • Disgraced Tory MP Derek Conway given year to repay money Derek Conway, the MP who paid his son £50,000 as a researcher while he was away at university, has been given a year to repay a quarter of the money, it has been reported. From the Telegraph.co.uk
  • European Stocks, U.S. Futures Fall; Banks, Airlines Lead Drop. European stocks and U.S. index futures fell as concern deepened credit losses and the economic slowdown will hurt earnings. Most Asian shares advanced. From Bloomberg.com
  • Ryanair profits plunge 85%. Shares in airlines slumped today as budget carrier Ryanair reported an 85% fall in first-quarter net profit and warned it could plunge into the red for the full year. Ryanair shares tumbled 15% to €2.74 (217p), dragging down low-cost rival EasyJet, which fell 10% to 301.75p. From Guardian.co.uk
  • MPs seek windfall tax on energy profits. There is a “compelling rationale” for a windfall tax on the profits of energy companies, MPs argue in a report on Monday. They also claim businesses and households are paying excessive fuel bills because of failures in the British energy market. From FT.com
  • House Prices ‘Will Soar by 25%’. House prices fell for the 10th month in a row during July – but there are claims the property market will bounce back stronger than ever. House prices fell for the 10th month in a row during July – but there are claims the property market will bounce back stronger than ever. Homes in England and Wales lost a further 1.2% of their value during the past four weeks, new figures show. From Sky News

Having a London Presence is cheap and easy, and with Londonpresence.com it is much more than a simple presence.

The importance of having a Face on Facebook

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Hi there! Today in London it’s raining heavily but don’t worry the sun will be back at the beginning of the afternoon. Tens of millions of people are now walking on the streets of London; how many of them have you ever known? How many of them are still in your network?

In an ever growing world the real challenge is keeping in touch with your contacts. Everyday you meet new people: friends, colleagues, partners; and maintaining old contacts is not an easy task. But it could be useful.

Where are your University schoolmates? What are your ex-colleagues doing?

Many online communities were born in the last few years, and Facebook is of course the most famous and used. Facebook has deeply changed the way we build our networks. If you still don’t have a profile, you can create one in less than 5 minutes and when you’re done, feel free to become a ‘fan’ of The Made Simple Group by joining our Group Profile!

Your profile will can be searched by anyone, so you may be contacted by people that you don’t remember. Almost everyone in London and the UK has a Facebook Profile. And they all join as many groups as they wish, because groups are formed common interests. Joining the right group will allow people close to you to be able to keep in touch and exchange information.

Why London?!

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Why have a business operating out of London? That’s easy; because London is once again at the top of the list of best cities for business in Europe, according to the European Cities Monitor (ECM).

The head of the office responsible for this survey had these words to say: “From year to year London is consolidating its position as part of an elite group of global cities, together with New York and Tokyo. With the Olympic Games on the horizon in 2012, providing there is no major global economic turndown, London’s future seems to be only in one direction: up.”

Still not convinced? Okay. How about some stats… Over 20% of Europe’s top 500 companies are in London and 25% of the world’s largest financial companies have their main offices in London. $504 billion is turned over here every single day in the largest foreign exchange market in the world. So- doing business here in London… you’re in good company (pun intended!)

London is brave, it provides new contacts and partnerships everyday, it is an open minded society where everybody can work and find their way. London hosts events, conferences and exhibitions that can provide an appropriate venue for every occasion. London is smart! And it is your best chance of success. Set your sights high and optimise the potential of your business by basing your company here in London.

Property prices continue to fall

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Another dark day for the Stock Exchange throughout Europe. But the headlines are once again concerned with dropping house prices: “home sales fell to their lowest level in 30 years last month as the seizure in the mortgage market continued to drag house prices down”, says The Times online. London trembles. This represents a drop by approximately 60 percent over the past year, at a rate of 1.7 percent for June alone this year, according to a recent survey conducted by Knight Frank. So is this good news or bad news for your business you may ask… Well, this trend has obviously affected the letting costs for office space and as a result, the City of London currently has a 6.7 percent vacancy rate. However it may surprise you to know that there has been a 14 percent rise in lettings in the West End. With our LondonPresence W1 office, such matters are our concern – not yours (unless of course property is your business!).

But what can we do? If you’re looking to purchase in London should you wait? Thinking about selling?- How difficult is it really? It’s a tough time for all of us, especially for those of us in London. The stagnant market is symptomatic of a broader lack of confidence in the economy and of course it’s not just the property market that is being affected by the current crisis. “Asian stocks stage widespread decline,” marks The Financial Times. Inflation climbs to 3.8% from June, reports the BBC website. Bankers and traders work warily and such trepidation is now typical of every sector. Consumer spending is also showing signs of slowing down; sales in shops for June were down 0.4 percent compared with the same period in 2007. Everyday the Bank of England is trying to balance the growing evidence of an economic slowdown against the problem of rising inflation. Recently it has held interest rates at 5%, an expected position to try to save our economy from the risk of recession. Even drinks sales in pubs across London have declined!

There’s no doubt it’s a frighteningly worrying time and it’s a tough time to be managing a business that’s for sure! By having a virtual office in the current property climate, you’re relieving at least some of the pressure from this potentially imminent recession- and trust us, every little helps!

Five reasons to read this Blog

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1. 100% London

This blog is about London. And this space is designed to inform and update, educate and amuse you on everything concerning London life. We could be considered the capital of Europe, the city where anything can happen, where everybody would like to live and to work; reading this blog you will feel as if you’re in London everyday!

2. Hugely informative

Here you will find a melting pot of news focussing on business, lifestyle and events; all you need to know for you and your business. Discover everything about culture, arts, music, fashion, theatre, sport and finance- all you need to know to be a real Londoner.

3. Simple and digestable

It’s clear and easy to read, perfect for those who require quick information about business, new products, latest offers and much more. Every post is smart and snappy because you can’t waste your time and the opportunity to find what you really need. An easy style to provide you with news that you really need to know.

4. Friendly

Whether you love to frequent blogs or you have never used one before, you will love this essential daily update for its personable and accessible style, the variety of the topics and the quantity of embedded links.

5. Built around you

This blog is built on your needs. It’s not created for a general magazine reader, we want you to consider it as a London based help centre for you and your virtual office. This blog is the completion of a full office support package, designed to facilitate the starting, running and growing of your business; the bow on your office package; a London present to unwrap daily and satisfy your curiosities. Watch this space!