House builder’s profit slumps, losses deepen at Galliford Try and Zara returns to profit

New-build homes at a Redrow housing development in Arborfield near Reading, England. Photo: Adrian Dennis/AFP via Getty Images
New-build homes at a Redrow housing development in Arborfield near Reading, England. Photo: Adrian Dennis/AFP via Getty Images

Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and abroad:

House builder’s profit slumps

House builder Redrow (RDW.L) saw its profits slump by two thirds last year as COVID-19 disrupted construction and sales.

Pre-tax profit at the business fell 66% to £140m ($180.5m) in the 12 months to 28 June 2020, the company said. Revenue dropped 37% to £1.3bn.

Chief executive John Tutte said the pandemic had “a profound impact upon the Group’s performance in the 2020 financial year but we entered the new financial year in a position of strength.”

“We have a record order book and brought forward very high levels of work in progress,” he said. “This was due in part, to increased investment earlier in the year in

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What We Make Of B.O.S. Better Online Solutions’ (NASDAQ:BOSC) Returns On Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we’ll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. If you see this, it typically means it’s a company with a great business model and plenty of profitable reinvestment opportunities. So when we looked at B.O.S. Better Online Solutions (NASDAQ:BOSC) and its trend of ROCE, we really liked what we saw.

Understanding Return On Capital Employed (ROCE)

For those that aren’t sure what ROCE is, it measures the amount of pre-tax profits a company can generate from the capital employed in its business. The formula for this calculation on B.O.S. Better Online Solutions is:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.032 = US$483k ÷ (US$25m – US$9.4m) (Based on

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Nasdaq Likely to Exceed 2019 Returns Amid Pandemic: 5 Picks

More than half of 2020 is already over with no major economic, financial, political or technological breakthrough. The global economic and financial landscape is rotating around a health hazard — coronavorus — and its economic devastations.

The U.S. and the global financial markets are in a downturn facing severe volatility. Despite the gloomy scenario, the Nasdaq Composite Index is up more than 20% year to date, much to the delight of market participants. In comparison, the S&P 500 has just managed to enter positive territory and the Dow is still in the red.    

Impressive Performance by Nasdaq Composite

Nasdaq Composite ended 2019 providing 35.2% return, its best performance in six years. The tech-laden index started 2020 from where it ended last year. Barring a cornavirus-induced short bear market, the index maintained its north bound trajectory.

On Jul 20, Nasdaq Composite ended at 10,767.09, its 28th closing high so far this

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Two in three Americans want to see Trump’s tax returns: Reuters poll

By Chris Kahn

NEW YORK (Reuters) – Two out of three Americans want to see President Donald Trump’s income taxes, and about half believe he has been withholding them for reasons that could hurt him politically, according to a Reuters/Ipsos public opinion poll.

The July 13-14 poll shows many Americans remain concerned about Trump’s finances and potential conflicts of interest with his family business. The survey was conducted after a U.S. Supreme Court ruling over Trump’s financial records last week likely postponed their release to New York City prosecutors until after the Nov. 3 election.

Trump has refused to show the public his personal tax returns for years, bucking a decades-old tradition of financial transparency among presidential contenders. The businessman-turned-politician has routinely questioned the public’s interest in his taxes and said he would not release them because they are under audit.

The poll found 66% of adults agreed that Trump

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Virus Spurs Emerging Market Investors to Seek Returns in ESG

(Bloomberg) — Emerging-market investors may have identified the rare animal that offers a path to sustainable post-pandemic returns. Now they just need to find it.

The worst crisis since World War II is prompting some fund managers to rethink their strategies in a world with $13 trillion of sub-zero yielding debt and an increasing view that a V-shaped recovery is unlikely. Seeking opportunities in ESG, investments in countries and companies that are improving environmental, social and governance standards, are becoming crucial more than ever as investors navigate the pandemic-stoked market volatility.

“This is a crisis unlike anything we’ve seen and we cannot just go back to our old textbooks anymore that say ‘go buy the dip’,” said Thu Ha Chow, a money manager at Loomis Sayles Investment Asia Pte, who has been investing since Enron’s collapse. “The social and governance elements are going to be more important, but they can

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Julien Farel’s $1,000 haircut returns with a 1,200-plus wait list

Following New York City’s phase 2 planned reopening, a number of businesses — from beauty salons to in-store retailers — were able to reopen their doors to their clients.

Famous for his $1,000 dollar hair cuts, Julien Farel, Chairman of the Julien Farel Restore Salon Group, reopened his salon and was met with a 1,200-plus wait list on his opening day. It’s something he characterized as “crazy.”

While the business has been closed to the public, Julien and his team kept busy since the business closed doors on Saturday, March 21st. His team began working on changing the business the next Monday, March 23rd.

“We had work on how are we going to regrow,” Farel told Yahoo Finance’s The Final Round.

Farel said he held weekly calls with his executive team and his staff as they pivoted to focusing on growing their online product sales and presence on social media.

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A Reversion to the Average Yield Could Mean Big Returns

With so many companies pulling guidance due to the Covid-19 pandemic, investors are left without highly important information to use in analyzing the value of a stock, including earnings per share estimates. While analysts can help fill in the gaps, it might be a fool’s errand to rely on these estimates with so much uncertainty.

I often find it helpful to compare the current dividend yield against the stock’s historical average yield in these cases. Using this method allows me to see what a stock would be worth if it reverted to its medium and long-term average yields.

Usually, stocks trading in excess of the average yield have some issue in the business that has caused the share price to decline. Declining fundamentals can be a red flag as an investor, but if the business has some areas that are growing, then the stock can be an attractive investment over

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