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“News of a trade agreement between the US and Japan is fostering optimism among investors that further deals might be reached before punishing tariffs come into force,” says AJ Bell Investment Director Russ Mould.
“The news helped drive the FTSE 100 to a new record high and saw gains in other markets across mainland Europe – with focus likely to now turn to the prospects of an agreement being forged between the Trump administration and EU.
“The beleaguered Japanese car industry revved up on the news and, with talks ongoing to extend the cut-off on China’s tariffs, it appears next month’s deadline could become more of a speed bump than a cliff edge for the market.
“Companies with tariff exposure were among the big gainers in early knockings in London, with GSK, AstraZeneca and Diageo all higher.
“Media group Informa was the top riser on the FTSE 100 as its latest update offered evidence that the recovery in demand for in-person and hybrid events in the post-pandemic world is continuing. Ticking a trio of boxes, the company boosted the dividend, added to its share buyback and boosted full-year guidance.”
Wetherspoon
“Wetherspoon has turned in a ‘steady as she goes’ performance which is disappointing given it should have basked in the sun.
“Hot weather is the biggest catalyst to get people into the beer garden and many Wetherspoon pubs have large outdoor spaces.
“If one of the UK’s best summers, weather-wise, in years couldn’t drive Wetherspoon to upgrade its profit forecast then just imagine what Wetherspoon would have reported in a grey sky environment. It suggests that trading in more ‘normal’ weather won’t be a breeze.
“Admittedly, chair Tim Martin says sales volumes are now above pre-pandemic levels, which is encouraging. Wetherspoon does a great job of selling a wide range of products at attractive prices, and this value proposition clearly chimes with the public.
“It seems to be coping with cost pressures and it has now opened eight franchised pubs this year, which is an interesting development when you consider that Wetherspoon has spent the past decade closing pubs.
“Wetherspoon’s estate peaked at 955 pubs in December 2015 and by the end of January 2025 the number had fallen to 796 sites. Many of the new franchised pubs are located in holiday parks which means there will be some seasonality with sales. However, it shows that Wetherspoon is open to new ideas for how to leverage its brand strength.”
Fresnillo
“Fresnillo has made investors a lot of money this year thanks to soaring precious metal prices. Unfortunately, investors have now had a wake-up call that the day job still matters for the mining group.
“It has reported a big drop in second quarter silver production year-on-year, partially down to geological issues where the rock being mined contained lower grades of metal.
“Mining is high risk and often unpredictable, and anyone invested in this area needs to be aware of what could go wrong as well as what could go right.”
Russ Mould: Investment Director
Russ Mould is AJ Bell's Investment Director. He has a Master's degree in Modern History from the University of Oxford and more than 30 years' experience of the capital markets.
He started out at Scottish...
