Archived article: Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
The FTSE 100 managed a steady start on Monday despite volatility in Asian stocks and a lacklustre end to last week on Wall Street.
Shares in Japanese consumer-facing stocks came under pressure as China warned its citizens not to visit the country amid simmering tensions between the two sides over Taiwan.
Chinese holidaymakers make a big contribution to tourism in Japan, with shares in airlines, theme park operators and retailers all under the pump thanks to remarks by new Japanese prime minister Sanae Takaichi. She hinted at the possibility of Japan’s military intervening if China attempted an invasion of Taiwan.
The episode has seen the Nikkei 225 slip from its recent record highs, and Japanese investors will likely be hoping that diplomatic efforts to calm the tensions prove successful.
This Wednesday the minutes of the Federal Reserve’s latest meeting on interest rates are likely to be scrutinised. They follow comments from chair Jerome Powell and other Fed officials which suggest a December rate cut, considered a near-certainty until recently by markets, might not happen.
The Fed has effectively been operating with a blindfold thanks to the impact of the government shutdown on the release of inflation and jobs data.
A reading of UK inflation will also be under the microscope as the Budget nears and the Bank of England weighs its own decision on rates ahead of a meeting of the Monetary Policy Committee on 18 December.
WPP
Executives at embattled advertising agency WPP have recently been snapping up shares in the company and it seems they may not be the only ones who see value in the business. There is speculation about a bid from French rival Havas and private equity firms reportedly looking to pick off bits of the business.
After years when it felt like WPP’s shares had been suffering a slow puncture, the tyre has burst in stock market terms for the company in 2025. This led to the departure of CEO Mark Read and investors in the US apparently being rallied by law firms for a class action lawsuit alleging they were misled about the state of the business.
WPP has a lot of moving parts which could be an obstacle to any takeover deal for the group as a whole but, with the shares trading at low levels last seen more than a quarter of a century ago, it is vulnerable to being picked apart.
Housebuilders
Recent noises from the housebuilding sector about the impact of the Budget on the property market have been backed up by the latest figures from Rightmove.
These show it is a buyers’ market with new sellers reducing their asking prices by the largest amount at this time of year since 2012.
Fears about tax changes in the Budget are clearly undermining confidence. Last week’s apparent U-turn on increasing income tax will have increased the chances of Chancellor Rachel Reeves having to find funds elsewhere, including from levies on the property market.
Vinted
Vinted could be dressing itself up for a change of ownership. Reports suggest the second-hand marketplace is exploring options to allow some early investors to sell out. This won’t be an IPO, but merely a change in the shareholder register of what will remain a private company for now.
A mooted €8 billion valuation might come as a surprise, potentially lower than some people might expect. After all, this is a highly disruptive platform and one that’s eaten eBay’s lunch and become the go-to place for buying and selling clothes cheaply. However, that valuation represents eight times expected sales in 2025, which looks reasonable for such a business.
A straight IPO could attract a lot of attention, with some suggestions that it might happen down the line. Vinted might want to first crack the US market to help drive up profits before considering a public listing. Such a move, alongside a strategy to expand its product lines, could help to shape a broader business and that’s important when trying to attract a diverse shareholder base.
THG
THG has struck a blinder of a deal with Mars that could help strengthen its Myprotein brand in a highly competitive market. It is launching Snickers flavoured protein powders, with more Mars brand varieties to follow.
The health and wellness craze has seen protein bars and powders hit the mainstream, grabbing space on supermarket shelves and becoming popular items in shopping baskets.
More people are going to the gym and changing their diets to more protein-heavy ones. Not everyone wants to eat chicken breasts or tuna salad every day, so protein shakes and bars are easy ways to top up the numbers.
A lot of people might gravitate towards well-known brands such as Snickers, thinking that such a flavoured version of a protein shake might be a healthier alternative to the chocolate bar. The more brands that THG can befriend in this way, the bigger the opportunity to flex Myprotein’s muscles.
HICL / TRIG
Combining two unloved investment trusts is not a guaranteed way to make them more appealing. Shares in HICL Infrastructure dived 8% after announcing plans to gobble up renewable energy specialist TRIG.
Both trusts have the same manager – InfraRed – which means some continuity. TRIG shares were trading at a 34% discount to net asset value before the news broke, and TRIG investors should be happy they’re being offered a partial cash exit at a 10% discount to 30 September’s NAV.
However, the big unknown is whether HICL shareholders want exposure to a renewable energy specialist, and the share price reaction would suggest not.
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...
