The Telegraph: House prices surged to a record high, new industry figures show a day after the Bank of England cut interest rates and signalled more are on the way. The typical property rose in value by 0.7pc in January to an average of £299,138, according to the Halifax house price index. The Bank of England cut interest rates on Thursday from 4.75pc to 4.5pc and traders ramped up bets on further reductions to borrowing costs after two policymakers voted for a steeper half a percentage point drop.
Comment: After being asleep at the wheel in not raising rates after the pandemic, the BoE has been asleep in reducing rates. This is all the more disastrous given the growth destroying Budget, something which even our (real) economist friends in Threadneedle Street seem to have worked out. Interest rates in the EU are 2.75%, which gives us an idea of where they should be here, and where they might have been without Brexit.
Agronomics (ANIC), a listed company in the field of clean food, is pleased to announce that its portfolio company, Good Dog Food Limited (t/a “Meatly”) is the first company in the world to supply for sale cultivated meat for pet food, as well as the first company to sell cultivated meat in Europe. Produced in collaboration with plant-based dog food brand THE PACK, a limited-release of “Chick Bites” will be on sale at Pets at Home Brentford, London from Friday 7th February 2025. The 50g pouches are on sale for £3.49, with approximately 750 units available to purchase.
Comment: One presumes that the pitching our canine friends with cultivated meat is an easier play than humans, well, most humans. It will be interesting to see whether £3.49 is cheap enough for Fido.
Karelian Diamond Resources (KDR) is pleased to announce a licencing and operating update including that the Company is extending its diamond exploration programme in the Kuhmo region of Eastern Finland. The Company has received notification from the Finnish Safety and Chemicals Agency (“TUKES”) of the granting of a new reservation, Kuumu 1, at Lentiira in northern Kuhmo, 30 kilometres to the north of the Company’s green diamond discovery (announced by Karelian on 31 January 2017). The reservation provides a one-year privilege to apply for an exploration permit in the area.
Comment: With shares of KDR heading south in recent months at a rate of knots, it will perhaps need more than the type of news announced today to turn the tide.
Franchise Brands (FRAN), an international multi-brand franchise business, will be hosting a Capital Markets Day for institutional investors on 20 February 2025, where it will provide an update on 2024 strategic developments and introduce “One Franchise Brands”, a group-wide strategic initiative launched in 2024 to focus on integrating the Group into one business to enhance sales, increase operational efficiency and reduce debt. The event will be hosted by Stephen Hemsley, Executive Chairman and Peter Molloy, CEO and will include presentations from the Group’s leadership team.
Comment: Until the peak for the shares a couple of years ago, the company could afford to have a rather smug / head above the clouds type of attitude. However, in the wake of the recent profits warning, and the shares at the low end of the range, work will have to be done to get the buyers in.
Belluscura (BELL), a UK medical device company focused on developing oxygen enrichment technology spanning broad industries and therapies, announced that, further to the Company’s announcement on 6 February 2025, the Company has conditionally raised gross proceeds of approximately £4.0 million through a placing with certain existing and new institutional and other investors at the Issue Price of 2 pence.
Comment: A potential winner in the pandemic, we have been waiting rather a long time for BELL to get over the line, especially for those who believe in the massive addressable market. One would presume that the latest placing at just 2p is a last chance for the company to prove itself regarding its current strategy.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
