The tech sell-off has continued with pace, exacerbated by US inflation data which increased expectations for US interest rate hikes this month.
Tech investors are getting uncomfortable with the amount of debt being used to fund the AI build-out. There is a growing fear that big names in the tech space are running too fast, and they’re primed to trip up. Reports about Anthropic’s third quarter revenue suggest it isn’t growing as fast as expected, which added to fears that the AI euphoria might be hard to sustain.
Market movements pointed to a sharp reduction in risk appetite. It was telling that US Treasury bond yields fell, suggesting that investors are moving into supposed lower-risk assets.
Copper prices fell 1.6%, triggering a sell-off in base metal producers. Miners like Antofagasta and Anglo American were seen as prime beneficiaries of the AI boom as copper is a crucial raw material for the power build outs. Any idea of an AI bubble, and one that is primed to burst, could fuel fears that copper demand might not live up to lofty expectations. That could take some heat out of the market.
Entain / Rank
The gambling sector is braced for potential bad news at the Budget in a fortnight’s time, given it is a sitting duck for higher taxes. Entain and Rank have used their financial results as an opportunity to effectively give Chancellor John Healey an ultimatum. In essence, if taxes go up again, they will have no choice but to close shops and casinos and cut jobs and investments.
Prime Minister Andy Burnham has previously been critical of the impact of gambling on society. That’s why talk of potentially higher duty on slot machines feels credible.
Figures from the Gambling Commission show the number of UK betting shops has fallen by 37% over the past 10 years.
Part of that trend is down to more people betting online, but it’s also down to weaker high street footfall, extra costs across labour, images, data and energy, higher business rates, and higher taxes. Betting operators are scratching their heads, wondering if it still makes economical sense to keep physical sites operational. If taxes go up again, they’re going to make some difficult decisions.
Dunelm
Dunelm has seen a slowdown in overall quarterly sales growth with like-for-like store sales going into reverse.
A weak property market is unhelpful as Dunelm is often high up the list when people move home and want to spruce up their new dwellings with new cushions, curtains and more.
Dunelm attributes some of the weakness to tough year-on-year comparative figures and blamed exceptionally warm weather in the summer which sat at the start of its first quarter.
The market has given Dunelm the benefit of the doubt, focusing on news of better trading towards the end of Q1 and a small improvement in gross margins. A lot of bad news is also priced into Dunelm’s stock, so the fact life hasn’t gotten dramatically worse for the business is a relief.
Dunelm still has a big mountain to climb to get back on top and the uncertain economic backdrop could make the journey an arduous one.
Travis Perkins
Progress has ground to a halt at Travis Perkins as it feels the pain of subdued construction and new build housing markets.
It’s not an ideal situation for Gavin Slark’s first year as CEO, denying him the opportunity to come up with new strategic thinking to take the business to the next level.
When markets are as tough as they are now, the priority is to keep the tills ringing without resorting to heavy discounting that crimps profits, and to keep a very close eye on costs. It’s lucky that Travis Perkins’ UK Toolstation operations are still ticking along nicely, providing a bright spot in an otherwise gloomy update.
Big Yellow Group
The general direction of Big Yellow’s share price over the past five years has been down, so it is no wonder that investors are losing patience.
News that 4% shareholder Ancora is pushing for a corporate sale is no surprise as Big Yellow doesn’t seem to be doing anything radical to drive a re-rating in its stock.
It is currently selling various industrial estate assets while at the same time acquiring more sites and investing in automation.
One might suggest it is just getting on with the job, but that is clearly not enough for some investors given the shares are languishing in value territory.
The self-storage group’s net asset was £13.70 a share as of 31 March 2026 versus an 842p share price as of 14 October market close.
Ancora believes the company has £12.36 per share intrinsic value, suggesting decent upside from the market value if a buyer were to be found. It is understood that Blackstone sniffed around the business last year but wasn’t offering the right valuation to win over Big Yellow.
Activist investors often do a lot of their negotiations behind closed doors. They typically only go public with demands if the door has been shut in their face or not even opened in the first place. Ancora is now going big with its demands in public, with a dedicated website and an appearance on the public stage at an investment conference. That suggests it is going to bang the drum and try and get support from other shareholders to force Big Yellow to do something.
Dan Coatsworth: Head of Markets
Dan Coatsworth is AJ Bell's Head of Markets. Dan has been with the company since December 2012 and has more than 18 years' experience in the industry, following the markets and all things investing. He...