So Where Is the Next House Price Bubble Brewing?

Canada and New Zealand are the most vulnerable to a house price correction given both the price-income ratio and the price-rent ratio are well above their long-run averages, according to Bloomberg Economics. Policy makers may already be acting given Canada’s government has introduced a tax on foreign buyers, while overseas purchases have been banned in New Zealand. Still, the next challenge will be whether global house prices rise as central banks get ready to lower interest rates, with the Federal Reserve set to cut rates for the first time in more than a decade on Wednesday.

Aggreko Plc H1 Underlying Profit Rises – Quick Facts

Aggreko plc (AGK.L) said the Group has had a good start to the year. First-half profit before tax was up 9% on an underlying basis, while underlying Group revenue was down 4% from prior year. The Group said full year earnings outlook is in line with market expectations and it remains on track to deliver mid-teens ROCE in 2020.

For the first-half, pretax profit was 60 million pounds compared to 59 million pounds, last year. On an underlying basis, profit before tax was up 9%, for the period. Earnings per share was 15.33 pence compared to 15.85 pence. Earnings per share was up 4% on an underlying basis.

First-half revenue was 768 million pounds compared to 857 million pounds, prior year. On an underlying basis, Group revenue was down 4%, for the period.

The Group proposed to maintain the interim dividend at 9.38 pence per share.

Lufthansa posts drop in second-quarter earnings on rising fuel costs and price wars

• The company said in a statement that adjusted earnings before interest and tax (EBIT) fell to 754 million euros($839.73 million), compared to 1 billion euros a year earlier.
• Fuel costs were 255 million euros higher than in the previous year, it said.

German airline Lufthansa on Tuesday posted a decline in second-quarter earnings, hurt by price competition on short-haul routes in Germany and Austria as well as rising fuel costs.

The company said in a statement that adjusted earnings before interest and tax (EBIT) fell to 754 million euros ($839.73 million), compared to 1 billion euros a year earlier.

Fuel costs were 255 million euros higher than in the previous year, it said.

Lufthansa said it expected the European market to remain challenging until at least the end of this year.

The company maintained its guidance for 2019, having in June cut its full-year profit forecast due to lower prices and higher fuel costs compounding the effect of losses at its budget subsidiary Eurowings.

CCD confirms Siddhartha is missing, shares tank

Cafe chain Coffee Day Enterprises on Tuesday confirmed that its chairman and managing director V G Siddhartha has been missing since Monday evening.

“V G Siddhartha, chairman and managing director of Coffee Day Enterprises Limited is not reachable since yesterday evening. We are taking the help of concerned authorities,” Coffee Day Enterprises said in a regulatory filing.

“Company is professionally managed and led by competent leadership team, which will ensure continuity of business,” the filing added.

Shares of Coffee Day Enterprises tanked 20 per cent and hit the lower circuit limit as well as 52-week low of Rs 154.05 apiece on BSE after news surfaced that its founder has gone missing.

Siddhartha, the son-in-law of former Karnataka chief minister S M Krishna, was headed for Sakaleshpur but on the way he had asked his driver to go towards Mangaluru, according to the police.

On reaching a bridge over the Netravati river in the Kotepura area in Dakshina Kannada district, he got down from the car and told his driver that he was going for a walk.

“He (Siddhartha) asked the driver to wait till his arrival. When he did not return even after two hours, the driver approached the police and lodged a missing complaint,” deputy commissioner of Dakshina Kannada district Senthil Sasikant Senthil told PTI.

BP Q2 RC Profit Edges Down, Sales Weak On Lower Oil Prices – Quick Facts

BP plc (BP.L,BP_UN.TO,BP) reported Tuesday that its second-quarter replacement cost profit or RC profit edged down to $1.775 billion from last year’s $1.789 billion.

RC profit per ordinary share was 8.72 cents, down from 8.96 cents last year. RC profit per ADS was $0.52, compared to $0.54 a year ago.

Underlying RC profit was $2.81 billion, nearly same as last year’s $2.82 billion. The latest results largely reflected continued good operating performance, offset by lower oil prices.

In the second quarter, profit attributable to BP shareholders fell to $1.82 billion from prior year’s $2.80 billion.

Sales and other operating revenues declined to $72.68 billion from last year’s $75.44 billion.

Reported oil and gas production for the quarter averaged 3.8 million barrels a day of oil equivalent, 4% higher than a year earlier.

Further, BP announced a quarterly dividend of 10.25 cents per ordinary share or $0.615 per ADS, which is expected to be paid on September 20.

The corresponding amount in sterling will be announced on September 10.

Looking ahead in the Upstream, the company expects third-quarter 2019 reported production to be lower sequentially, reflecting continued seasonal turnaround and maintenance activities.

Reckitt Benckiser H1 Pre-tax Profit Rises; Lowers FY19 Revenue Outlook

UK consumer goods giant Reckitt Benckiser plc (RBGLY,RB.L) reported Tuesday that its first-half profit before income tax increased to 1.26 billion pounds from a restated 1.11 billion pounds last year.

However, attributable net income fell to 112 million pounds or 15.8 pence from 860 million pounds or 121.2 pence per share in the year-ago period.

Net income from continuing operations rose to 991 million pounds or 137.9 pence from 879 million pounds or 122.2 pence per share in the year-ago period.

Adjusted net income from continuing operations for the half year was 1.03 billion pounds or 145.4 pence per share.

Net revenue for the first half rose 2 percent to 6.24 billion pounds from 6.14 billion pounds last year. On a constant currency basis, net revenue rose 1 percent. Like-for-like revenue growth was 1 percent.

Further, the company’s board declared an interim dividend of 73.0 pence per share, an increase of 4 percent from the prior year.

Looking ahead to the full year 2019, Reckitt Benckiser revised its like-for-like or LFL net revenue target to a range of 2 to 3 percent, from the prior range of 3 percent to 4 percent to reflect the slow start to the year and improving trends for the second half.

The company said there is no change to its full-year adjusted operating margin expectations.