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Following the launch of a new cash Lifeftime ISA by Nottingham Building Society, AJ Bell looks at whether the Help to Buy ISA or Lifetime ISA is better for different customers.

Following the launch of a new cash Lifetime ISA by Nottingham Building Society, AJ Bell looks at whether the Help to Buy ISA or Lifetime ISA is better for different customers.

“Kingfisher’s Turkish joint-venture Koçtaş is a very, very small part of the DIY giant – it contributed just £3 million in profit last year in combination with a 49%-owned French operation – so investors don’t need to worry too much about that, but slack sales at the core Carrefour brand in France is a bigger concern altogether,” says Russ Mould, AJ Bell’s Investment Director.

“Three founder members of the FTSE 100 in 1984 went broke and it is to be hoped that House of Fraser – a private company since 2006 – does not become a fourth, not least for the sake of the company’s staff and suppliers,” says Russ Mould, investment director at AJ Bell.

“The collapse of the Turkish lira and the threat of contagion across emerging and also developed stock and bond markets look to be catching many investors off guard but this is just an another example of what the economist J.K. Galbraith once termed ‘the extreme brevity of financial memory, because we have been here before,” says Russ Mould, AJ Bell Investment Director.

“The Real Estate Investment Trust (REITs) sector has struggled this year, falling slightly while the FTSE All-Share has eked out a 1% gain, and today’s interim results from Derwent London offer enough to keep both bulls and bears of the British property stocks more than interested,” says Russ Mould, AJ Bell Investment Director.

“A very experienced – and successful – hedge fund manager once told me that he never shorted high-flying, popular stocks until they had at least halved, because that was when confidence would finally begin to crack and shareholders would start to sell on the rallies and not buy on the dips. The latest action in Tesla’s share price reinforces the wisdom of these words,” says Russ Mould, AJ Bell Investment Director.

“Helped by the long-awaited drop in conduct and litigation costs, loan and asset write-downs and restructuring charges, the Big Five FTSE 100 banks racked up a stated pre-tax profit of £9.3 billion in the second quarter of 2018, their best three-month showing since the £10 billion total racked up between January to March 2013,” says Russ Mould AJ Bell Investment Director.

“Management’s decision to recommend a cash offer for the John Laing Infrastructure fund from a consortium of financial buyers could well trigger more bids for the remaining London-quoted investment trusts in the infrastructure area for three reasons,” says Russ Mould, AJ Bell Investment Director.

“Yet another increase in the total cash pile at his Berkshire Hathaway, to $129.6 billion, despite $12 billion in net new investments in traded securities in the second quarter (mainly Apple), suggests that master investor Warren Buffett is still having difficulty in finding value in US – and perhaps global – stocks,” says Russ Mould, AJ Bell Investment Director.

“RBS boss Ross McEwan had identified three major obstacles to the bank’s long-awaited return to the dividend list. He has now satisfied European state-aid regulators regarding the Williams & Glyn subsidiary, settled with the US Federal Housing Agency and in principle reached a $4.9 billion settlement with the US Department of Justice, so all three of those boxes are ticked,” says Russ Mould, AJ Bell Investment Director.

“The substantial jump in Tesla’s shares in after-hours trading in the US could lead you to believe that the car maker is firmly back on track after a torrid few months of production problems, a plunging share price and public relations gaffes from its boss, but a more muted reaction from the company’s traded bonds shows that there is still much work to be done,” says Russ Mould, AJ Bell Investment Director.

“If stock market investors want a guide as to what they need to know about the Bank of England’s second rate hike in ten years, then they should take a look at the UK Government bond – or Gilt – market,” says Russ Mould, investment director at AJ Bell.

“Apple’s third-quarter earnings easily beat analysts’ forecasts, as sales rose 17% and earnings per share soared by 40%, as price increases on its hardware and flourishing services and app store revenues more than compensated for sluggish volume growth in iPhones, iPads and iMacs,” says Russ Mould, AJ Bell Investment Director.

“The first-half results show the way forward for Lloyds and its shareholders. The combined cost of bad loans, PPI compensation and restructuring costs fell by £539 million compared to the first six months of 2017 and pre-tax profit rose by £573 million. It’s that simple,” says Russ Mould, AJ Bell Investment Director.

“Gone are the days when BP was offering a dividend yield of 7% to 8% and that is actually a good thing, because it means investors are no longer demanding such a high return to compensate themselves for the risks associated with holding the shares,” says Russ Mould, AJ Bell Investment Director.

The Treasury Committee has published its report on Household finances: income, saving and debt.

“Roll-up strategies, where a series of acquisitions are used to create growth (or at least the impression of it) tend to work very well – until they don’t, and that is what serial plastic packaging company purchaser RPC now seems to be finding out the hard way,” says Russ Mould, AJ Bell Investment Director.

“Investors in Netflix are suffering a rare reverse today as the shares are tumbling amid disappointment over the company’s subscriber addition number for the second quarter of the year. But nerves over the subs figure relay reflect the company’s lofty valuation and how the company is still a long way from generating the sort of cash flow that would justify its $155 billion market capitalisation,” says Russ Mould, AJ Bell Investment Director.

The Financial Conduct Authority (FCA) has today published the interim findings of its platforms market study.

“Sterling has suffered three crises of confidence since 1945, so a repeat cannot be entirely ruled out owing to the current political upheaval and lack of clarity on Brexit, although previous notable plunges have been the result of economic problems rather than any games of musical chairs at Westminster,” says Russ Mould, AJ Bell investment director.

“It’s not as if much further evidence was needed, but today shows just how tough it is to be a retailer in the current environment of low wage growth, high debts and brittle consumer confidence,” says Russ Mould, AJ Bell investment director.

“Shares in house builder Barratt are trading at their lowest level since January 2017 despite a reassuring full-year trading update, which shows further price increases, better-than-expected profit and a higher-than-forecast net cash pile, all of which support the company’s plans to pay meaty dividends to shareholders,” says Russ Mould, AJ Bell Investment Director.

Graduates have paid off £50 million in student loans that they didn’t owe in just one year

“The company may be Great Portland by name but its first-quarter update was neither good nor bad and as such will do nothing to change the views of those investors who feel that UK real estate stocks now look cheap or those who think that Brexit and the ongoing hollowing out of the High Street means the asset class is a disaster waiting to happen,” says Russ Mould, AJ Bell Investment Director.

The Financial Power of Women report released today by Fidelity International shows that women face a lower retirement income than men.

The Financial Power of Women report released today by Fidelity International shows that women face a lower retirement income than men.

“The latest GfK survey on UK consumer confidence shows a fresh decline to -9 in June and leaves us without a score above zero since January 2016. This may help to explain the woes of many retailers but perhaps executives at (and shareholders in) the house builders need to start paying attention to this data too,” says Russ Mould, AJ Bell Investment Director.

The share bull market in the US has currently run for 3,399 days – just 53 days shy of the longest bull-run since the second world war of 3,452 days which ran between October 1990 and March 2000.

“General Electric announced the merger of its oil and gas operations with Baker Hughes in October 2016, when times were tough for oil services and equipment providers, and closed the transaction in July 2017, right near the sector’s lows. There now has to be a risk that it will undo that deal just as trading conditions start to improve, judging by today’s trading statements from FTSE 250 firms Hunting and Wood Group,” says Russ Mould, AJ Bell Investment Director.

The Lifetime ISA is a valuable new option for people saving for a house deposit or retirement but there are some complications in the rules that are catching investors out.