14 February 2020
RBS falls out of love with investment banking as it cuts profit targetsNot even the combination of a name change to NatWest Group, a meaty increase in the dividend and a laudable attempt to do its bit for the move toward a carbon-zero world can conceal how Royal Bank of Scotland’s profit outlook is a cautious one as the bank joins rival Barclays in pushing back when it hopes to meet its long-term profit goals.
RBS had...
14 February 2020
AstraZeneca expects Coronavirus hit, and Royal Bank of Scotland to change its name“Markets were calmer on Friday with only minor movements in Asia and Europe. The UK saw the FTSE 100 slip 0.6% to 7,407, dragged down by weakness in pharmaceutical and healthcare stocks following AstraZeneca’s coronavirus-related warning. Other sectors at risk of seeing earnings disappoint because of coronavirus were also down, namely miners and...
13 February 2020
Beware the (income) trapThe ETF juggernaut continued in 2019, passing through the $6 trillion mark. No active, open-end fund manager appears to be shielded from this growth, with ETF usage becoming widespread in fixed income, ESG and factor investing – alongside the bread and butter of equities – all of which has taken market share from active managers across the board.
H...
13 February 2020
Barclays admits it will not meet 2020 profitability target“Just when closure on the PPI scandal could have bought Barclays some breathing room, the bank will now attract lurid headlines over the relationship between chief executive Jes Staley and disgraced American financier Jeffrey Epstein. But the real shocker in today’s full-year results is Barclays’ admission that it will not meet the 10% return on...
13 February 2020
Barclays’ Epstein shock, and Centrica recovery tripped up by commodity price slump“A negative market reaction to news from some of London’s largest listed companies, together with some very large caps trading without the rights to their dividend, dragged down the FTSE 100 index by 0.8% to 7,473,” says Russ Mould, Investment Director at AJ Bell.
“Centrica’s full results missed expectations at the revenue line and it warned about...
12 February 2020
Revamped Woodford fund to re-open tomorrowThe new ASI Income Focus fund (previously Woodford Income Focus) reopens tomorrow with investors able to place trades from mid-day today. Read the announcement here.
Yesterday, the new managers updated investors on the approach they are taking with the fund and provided details of the new portfolio, so investors now have a decision to make as to...
12 February 2020
FTSE edges above 7,500 on hopes that coronavirus is nearing peak, and Dunelm’s golden period continues“With data from China providing some hope that the coronavirus outbreak may be reaching its peak infection rate, the markets started Wednesday in a positive mood,” says AJ Bell Investment Director Russ Mould.
“The FTSE 100 has clawed its way past the 7,500 mark after gains in the US and Asia overnight.
“However, market confidence could be tested as...
11 February 2020
Bitcoin bears down on the $10,000 mark once moreAt a time when a FTSE 100 member’s shareholder list looks fake and shares in a fake meat company’s shares are sizzling again in the USA it is hardly a surprise that an alternative currency (or a fake one, depending on your viewpoint) seems to be coming back into vogue, as Bitcoin barrels back toward the $10,000 mark. Some may view this as another...
11 February 2020
TUI upbeat but no mention of coronavirus risk, and JD’s acquisition of Footasylum in doubt“Most of Asia, Europe and the UK saw strong gains on Tuesday, including a 1% gain in the FTSE 100 to 7,524 thanks to strength in utility companies, natural resources producers and banks,” says Russ Mould, Investment Director at AJ Bell.
“A 1.1% rise in the Brent Crude oil price to $53.85 per barrel will also have given the markets some support. US...
10 February 2020
FTSE 100 on the back foot as coronavirus more deadly than SARS, and will NMC Health go private?“News that the number of deaths from the coronavirus has exceeded those from the SARS outbreak in 2003 appears to have given investors pause for thought on Monday.
“China is, in theory, returning to work today after an extended New Year holiday aimed at containing the virus, but not all factories are coming back on line yet.
“The pace of this...
7 February 2020
FTSE steps back amid sober mood and Burberry flags coronavirus impact“Investors appear to be worried about China’s coronavirus once again, after a couple of trading sessions where focus on tariff cuts, a potential vaccine and economic stimulus generated more positive sentiment.
“The number of cases has passed 30,000, a doctor who was a prominent whistleblower at the outset of the crisis has died, and ratings agency...
6 February 2020
The funds hit hardest by CoronavirusRyan Hughes, AJ Bell's Head of Active Portfolios, looks at the worst performing funds from Asia, China, Emerging Markets and Global sectors so far this year.
Fund IA Sector Performance from 01/01/20 – 04/02/20 Schroder Global Energy Global -11.52% Guinness Global Energy Global -10.59% Meridian Global Energy Global -6.56% AB Asia Ex Japan Equity...
6 February 2020
Coronavirus vaccine hopes and China tariff cuts lift FTSE, and Royal Mail’s problems get worse“The FTSE 100 was back above 7,500 for the first time in a couple of weeks as news of cuts to Chinese tariffs on US goods helped put investors in a sunnier mood. Overnight Asian markets enjoyed strong gains with Hong Kong’s Hang Seng index rising more than 2.5%.
“While China continues to be stricken by the coronavirus, signs of de-escalation in its...
5 February 2020
Trading update shows Bomhard has much to do at Imperial Brands“In the unlikely event that they didn’t know why Alison Cooper had scrapped her target to grow Imperial Brands’ target for 10% dividend growth a year and then stepped down from the CEO post shortly afterwards, shareholders do now after today’s messy trading update,” says Russ Mould, AJ Bell Investment Director.
“The forecast of a small drop in...
5 February 2020
Domino’s Pizza still has plenty of problems to fix, and bullish outlook from housebuilders Barratt and Redrow“After an impressive session on Wall Street last night where the S&P 500 jumped 1.5% and the Nasdaq was up 2.1%, global markets went off in different directions on Wednesday. Asian shares extended the rally with Hong Kong’s Hang Seng index up 0.4% and Japan’s Nikkei 225 index advancing by 1%,” says Russ Mould, Investment Director at AJ Bell.
UK and...
4 February 2020
BP shares welcome Dudley’s final flourish but new boss has much to doBP boss Bob Dudley steps down as the twelfth-longest serving CEO among the current crop of FTSE 100 bosses and investors appear to be giving him a warm send-off, as a share price rise welcomes the eighth increase in the quarterly dividend since he replaced Tony Hayward in autumn 2010. That hike in the dividend to 10.50cents ($0.1050) a quarter is...
4 February 2020
Dudley’s swansong at BP, and Micro Focus misses expectations“The FTSE 100 made a significant recovery on Tuesday with the resources sector, one of the worst affected by China’s coronavirus outbreak, leading the way. The index jumped 1.5% to 7,437,” says Russ Mould, Investment Director at AJ Bell.
“The weaker pound helped as Boris Johnson outlined a hard-line stance to trade negotiations with the EU. Better...
3 February 2020
UK stocks avoid the big sell-off experienced by Chinese shares“Chinese stocks played catch-up on Monday as its markets reopened after more than a week’s closure. The Shanghai Composite index fell nearly 8% as investors finally had a chance to react to the coronavirus spreading,” says Russ Mould, Investment Director at AJ Bell.
“While the scale of this movement is enormous in terms of daily stock market action...
31 January 2020
Market action on Brexit day and lifeline for Aston Martin Market action on Brexit day“The pound pushed forward on Friday as the UK finally makes its exit from the European Union. A 0.35% rise to $1.3139 puts the currency almost back to where it was at the start of the year but still some way short of the $1.3335 level seen just after the general election result in December,” says Russ Mould, Investment...
30 January 2020
Woodford investors hit with further £10 million in chargesYesterday evening Link contacted investors with further details on today’s distribution from Neil Woodford’s former Equity Income Fund, detailing the charges being incurred as a result of the wind-up process and the fact the fund will move to weekly pricing.
“The new update from Link brings some additional insight in to the winding up process of...
30 January 2020
Unilever’s tea problem, and BT misses expectations“The markets looked miserable as investors weighed up the prospect of the coronavirus hurting various parts of the global economy. Commodity prices continue to be hurt, particularly copper which has seen a large drop. Oil prices have also been weak and fell by 1.8% on Thursday to $58.76 per barrel,” says Russ Mould, Investment Director at AJ Bell....
29 January 2020
Apple hits the sweet spot with iPhone 11 (though you can find a few sour notes if you try hard enough)The contrast with a year ago could hardly be bigger. Apple’s first quarter results for 2018-19 followed on from a January profit warning and showed the first year-on-year drop in earnings per share for ten quarters. The results for the first three months of 2019-20 show the first revenue growth from the iPhone in five quarters, renewed sales and...
29 January 2020
Wizz Air upgrades guidance, and Wickes sales grow ahead of demerger from Travis Perkins“The FTSE 100 climbed back above 7,500 this morning as strong results from consumer electronics giant Apple and focus on the latest decision on US interest rates helped distract from China’s coronavirus,” says AJ Bell Investment Director Russ Mould.
“Still, investors will be watching news from Asia nervously as the number of people infected with...
28 January 2020
Link announces Woodford capital distributionLink has today announced the amount of the first capital distribution investors will receive from the Equity Income fund formerly managed by Neil Woodford. Read the announcement here.
"In some respects, today represents the first day of closure for investors who have suffered from the terrible performance of the Woodford Equity Income fund," says...
28 January 2020
FTSE claws back some ground, AG Barr regains its fizz, and Crest Nicholson outlines recovery plan“The higher opening for the FTSE 100 may have recovered some of the heavy ground lost yesterday but markets are likely to be in a holding pattern until there is greater clarity on how and when the coronavirus can be contained. “The next move by the World Health Organisation, which is yet to declare the outbreak a public health emergency, will be...