Posts Tagged ‘Football’

Euro 2012: Fifa vs. Moody’s

posted by nwoods

It’s 2012, another year in which I can gorge upon a feast of world class sport. The Olympics, the Paralympics, the European Championships and god forbid another failed attempt by Andy Murray to win Wimbledon. The UK may be nearing a ratings agency downgrade but it’s not all bad and a glorious summer awaits.

I wonder what it’s like working in the City when a major sporting event is on. With targets to hit, demanding clients, every pound and every move under scrutiny, I bet they never get chance to scream “REF!!!!” across the trading floor.

Euro 2012 kicks off in 2012 but with ECB research showing inattentive trading during national football matches what impact for the Eurozone? (Image:Euro2012media.com)

Interesting then, that according to the latest bit of research from the European Central Bank, that’s exactly what happens. Its White Paper “The pitch rather than the pit – Investor inattention during FIFA world cup matches” looks at trading data during 2010 World Cup matches and draws some interesting conclusions. My favourite excerpts from the three key findings include:

First, we find strong evidence of decreased activity in stock markets during soccer matches at the 2010 World Cup. Trading activity dropped markedly, especially if the national team was one of the competitors. Compared to normal market circumstances, the median number of trades dropped by 45% if the national team was playing, while the volume dropped by around 55%.”

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FPS’ Friday Fiver

Hello All! A little late this week, and we apologise for that, but as it’s now officially the end of summer that means it’s the start of the business season and we’ve all been a little flat out here at H&K Towers. Still, we wouldn’t want to miss out on reporting another busy week in the world of financial and professional services. And what a week it’s been. Thanks to our contributors this week: Ed, Ross, Clare and Rachel.

Turn that frown upside down…At the end of a pretty crazy August, there have been some fairly gut-wrenching figures this week from the Markit/CIPS Purchasing Managers Index (one of our clients). Declines in manufacturing output prompted fresh talk of double-dip recession, construction continued to be weighed down by weak confidence in the housing market, and all eyes are now on the all-important Services PMI which comes out on Monday.

Happy faces are hard to come by in the UK at the moment. But are we talking ourselves down too much?

Worrying indeed, but could it be that the UK economy is going through stage four of what could be termed ‘post financial crisis bereavement’ (PFCB)? According to one description, this involves ‘a feeling of listlessness and tiredness’ and possibly ‘wandering around in a daze.’

Well it certainly does feel like that sometimes but if the theory holds at least this is the final stage before acceptance sets in and the economy ‘regains its energy and goals for the future.’  It may just be the time for a bit of Vince Cable style positive thinking.

Breaking News – Football clubs spend less…The last minute wheeler-dealing of transfer deadline day was interesting for many reasons. But it’s the debate it has started about financial fair play which poses the biggest question for the future of the beautiful game. We’ve commented before on the ownership of football clubs, particularly in the immediate future. The onset of the Financial Fair Play from UEFA, requiring elite clubs to record a maximum debt of £39.5m over a three year period, may also have implications. Read the rest of this entry »

FPS’ Friday Fiver

Hello All! August really isn’t showing any sign of slowing down is it? At the start of the week there was a collective pause for breath, but since Wednesday it’s been a case of deja vu with the world’s markets continuing to do their best impression of the Pepsi Max Big One. The focus of the Friday Fiver this week is understandably on these events, but we also find time for a bit of sporting action too. Thanks to Ed, Ross, Jonathan and new writer Helen this week.

Wither Angela, Woe Nicolas…..Tuesday’s summit between Angela Merkel and Nicolas Sarkozy was their latest attempt to tackle the Eurozone’s woes. However, no matter what they do to try and convince markets otherwise, politicians both sides of the Atlantic are still failing to win over investors’ confidence.

It's not all hugs and smiles in the Eurozone anymore - another tough week for Merkel & Sarkozy

Does democracy have any culpability for this? Well yes, it does. Merkel is finding it increasingly difficult to win domestic support for the continued underwriting of Eurozone debt – Germany’s latest growth figures won’t help her cause here either. She knows that the electorate are less likely to vote for a Chancellor who uses German money to bail out other nations, than one who does not. Despite this, the Eurozone’s survival largely depends on German financial commitment.

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Man Utd’s IPO: A paradox to fans’ ambitions

posted by Edward Jones

Man Utd’s application to list on the Singapore Stock Exchange and make available 30% of the club to Asian investors is a paradox to efforts from fans and parliament alike to see local supporters have a greater say in the direction of their football club.

It is also confirmation of the global reach of those few clubs at the pinnacle of world football and serves as a reminder to the debts they’re carrying, the dizzying sums they spend and despite all this, the sheer force of their brands.

At its heart, the IPO is a symbol for the increasing monetisation of football. The beautiful game has become a beautiful business, or as is more often the case, a burden, on wealthy individuals willing to take the ultimate gamble.

The joke used to be that Man United have more fans in London than they do in Manchester, it now seems they have more fans in the Far-East than they do in the UK. The FT on Wednesday suggested of Man United’s 333m global fan base, 190m come from Asia. That an audience in the Far-East is predicted to have the potential to impose a higher valuation of a football club in Manchester is both testament to the Red Devils’ Asian appeal and the emerging power of the Asian economy, particularly in contrast to Europe.

The Culture, Media and Sport Commons Select Committee’s recent report into football governance called on the FA to look at means of giving properly constituted supporters trusts, or consortia which include supporters trusts, an opportunity to make a successful matching bid for a club that has gone into administration. Admittedly, Man United is not in this position, in spite of its mega debts, but whilst the ambitions of the Government, and I suspect most fans would be to have a greater say in the running of their club, the current crop of football owners have other ideas.

The float in Singapore seems to make business sense for the owners, which is increasingly what football decisions are coming down to. It will no doubt be accompanied by major marketing efforts to tap into United’s growing Asian fan base.

It does seem a shame however that the Red Knights and those on the terraces in the gold and green scarves will not get a more direct opportunity to buy a stake in their club and that this will serve as the model for football ownership in the immediate future.

FPS’ Friday Fiver

posted by Edward Jones

Nearly the weekend. First, here is this week’s Friday Fiver…

Thanks to DC, Daisy, Rachel and Nick for contributions.

Is the economy looking up?…

Economic figures this week were better than predicted, but is this just a pause for breath before the storm?

Here’s a question for you. If GDP growth is so flat (or even in reverse as it was last winter), then how can it be that unemployment fell according to the latest figures? Wednesday’s announcement from the ONS stated that total unemployment was down from 8% to 7.8%. Here’s another question for you as well. If global commodity price rises (particularly food and oil) are showing no sign of slowing down, then how can it be that inflation fell against most predictions according to the latest figures? The ONS’ figures on Tuesday recorded a drop in the Consumer Price Index from 4.4% in February to just 4.0% in March.

So what’s going on? Well, the fall in unemployment was definitely welcome, but it may be shortlived. The reason for this is the continued fear that new jobs created in the private sector may not be able to keep up with the large redundancies likely being made in the public sector as the government trims spending – it’s a bit like pouring water into a bucket at the top, and it flowing out through holes in the bottom; the problem is, we can’t pour water in fast enough.

And on inflation? Well, it turns out that we can thank retailers, and especially supermarkets, for the slight fall in inflation. According to the ONS, the level of discounting by shops is at an all time high as they try to maintain the flow of customers in through their doors (this might explain why my local Co-op has been running a 50% off wine promotion almost non-stop since Christmas). The question is, how long will these promotions continue to entice consumers? Especially when growth in wages continues to lag behind inflation, reducing the amount of disposable income we have to spend on the high street.

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