13 November 2019
Taylor Wimpey looks to reassure that its dividend is as safe as houses“ Taylor Wimpey is currently the third highest-yielding stock in the FTSE 100 so income-seekers will take encouragement from the reassuring trading statement,” says Russ Mould, AJ Bell Investment Director.
“Although the company notes that profit margins will dip in 2019, it also says that volumes will compensate and ensure that profit forecasts...
13 November 2019
British Land suffers valuation slump and Taylor Wimpey sees reduction in cost pressures“Donald Trump’s speech on Tuesday failed to give investors the information they wanted on trade policy and so we’ve got another down-day for UK and European equities,” says Russ Mould, Investment Director at AJ Bell.
“Investors had hoped they would get some clarity on the potential rollback of tariffs. Disappointment on this front, together with...
12 November 2019
B&M messes up in Germany and ITV continues recovery story“Investors are eagerly awaiting a speech from US President Donald Trump on Tuesday that will feature the country’s trade policy. Tariffs have been major influence on the equity markets in 2019 and investors will look for every clue from Trump as to how the trade war with China could play out.
“Ahead of that event, the FTSE 100 nudged up 0.2% to 7...
11 November 2019
Greggs back in fashion and Sirius Minerals soars on new development plan“As we approach mid-November, the FTSE 100 is on track to record the best annual performance since 2016 despite a backdrop of economic concerns, trade wars and Brexit,” says Russ Mould, Investment Director at AJ Bell.
“The 9.4% year-to-date gain should please investors as historically equities have delivered an average 6% to 7% gain each year over...
8 November 2019
Games Workshop's magic formula and Standard Chartered caves in on remuneration dispute“Mixed messages regarding the US/China trade war have left investors frustrated, leading to a down day for the markets on Friday. The FTSE 100 dropped 0.3% and European markets fell by a similar amount,” says Russ Mould, Investment Director at AJ Bell.
“Having enjoyed a bounce yesterday on reports that the US and China were going to strike a deal...
7 November 2019
Aston Martin fights back, and The Works warns again“It’s the news many investors have been hoping for – China and the US have reportedly agreed to remove some existing tariffs,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 jumped 0.4% to 7,424 follows the reports, with miners and packaging companies among the top performers.
“One might have expected the market to spike on this...
6 November 2019
Clothing continues to struggle for Marks and Spencer, and Intu hit by CVAs“The FTSE 100 seems stuck in a holding pattern amid radio silence on the next move in the US-China trade negotiations. Having moved higher amid some optimism on this front early in the week, investors now seem to be awaiting solid news one way or another.
“It may hinge on whether the US is prepared to dial back some of the tariffs on Chinese goods...
5 November 2019
Uber posts an ugly set of third-quarter results“You would have thought that WeWork’s spectacular fall from grace would act as a warning to companies about going for growth at any costs and then trying to tart up the results by focusing on self-serving, self-adjusted earnings metrics. However, Uber doesn’t appear to be getting the message, judging by its third-quarter numbers,” says Russ Mould...
5 November 2019
Associated British Foods boosted by resilient Primark margins and Imperial Brands is out of puff“There were few fireworks on Bonfire Night as the FTSE 100 consolidated its position after yesterday’s big gains, trading broadly flat. This followed a strong showing in the US and Asia overnight on signs the frosty relationship between the US and China over trade may be thawing. Mining stocks helped support the index for a second day,” says AJ...
4 November 2019
Mothercare’s missed opportunity and mixed messages from airlines“Investors were upbeat at the start of the new trading week following optimistic comments from US commerce secretary Wilbur Ross about a US/China trade war resolution,” says Russ Mould, Investment Director at AJ Bell.
“Mining stocks Glencore and Antofagasta, Asia-focused life insurer Prudential and several UK banking providers led the FTSE 100 0.4%...
1 November 2019
FTSE comes back to life and Lookers halves profit guidance“It might be a day late for zombies but after suffering its worst day in the best part of a month on Thursday the FTSE 100 came back to life on Friday, boosted by better than feared Chinese manufacturing figures overnight,” says AJ Bell Investment Director Russ Mould.
“Investors will be hoping this is a sign of things to come in November after the...
1 November 2019
Vanguard cuts its fees – what it means for youIn the latest salvo in the passive investing charges war, Vanguard has cut fees across its range of ETF and index funds. It follows the example of Vanguard’s main rival, BlackRock, who slashed charges on many of its products in August – as both firms compete for market share in the passive investing space.
What cuts have Vanguard made?Vanguard...
31 October 2019
BT avoids another first-half dividend horror show on Hallowe’en“A cut to its first-half dividend a year ago was a sign that BT was in trouble and the shares have largely given investors nightmares ever since. Today’s announcement from CEO Philip Jansen, who took over from Gavin Patterson in February, that the interim payment is unchanged at 4.62p and that the telco intends to match last year’s total...
31 October 2019
Lloyds and Royal Dutch Shell miss expectations, and Crest Nicholson issues another profit warning“A third interest rate cut this year from the Federal Reserve served to give the US markets a boost last night but that’s failed to extend to the UK and the rest of Europe. Only Asia shares were in jubilant mood on Thursday,” says Russ Mould, Investment Director at AJ Bell.
“A year ago, the Fed was shrinking its balance sheet to unwind...
30 October 2019
Next’s growth rate slows and De La Rue issues another profit warning“Pressing the button for a general election has had no impact on the UK stock market, perhaps because it was widely expected to happen. The pound was unmoved on Wednesday morning and the FTSE 100 and FTSE 250 indices only changed by a matter of points,” says Russ Mould, Investment Director at AJ Bell.
“Financial and healthcare stocks were in demand...
29 October 2019
BP’s mixed results, and new property market data puts spotlight on estate agents and housebuilders“The delay to Brexit weighed on banking shares and in turn dragged the FTSE 100 down by 0.5% to 7,297. The pound also took a step back, dipping 0.1% against the US dollar to $1.2847. Not helping matters were mixed results from BP and new data showing the housing market is still stuck in the mud,” says Russ Mould, Investment Director at AJ Bell.
BP...28 October 2019
FTSE 100 versus FTSE 250, and HSBC shares sink on disappointing update“It is fair to say that 2019 is proving to be a fairly frustrating year for investors in large cap UK equities,” says AJ Bell Investment Director Russ Mould.
“While some decent gains were made from the FTSE 100 at the start of the year, the blue chip index has spent most of 2019 in a fairly narrow trading range of approximately 7,100 to 7,500.
“Yes...
25 October 2019
Barclays sees PPI surge, and WPP returns to growth“The UK appears to be in limbo as it awaits an EU decision on whether to grant an extension to the 31 October Brexit deadline and the FTSE 100 is also struggling for direction this morning.
“There was mixed trading in Asia overnight as investors weighed the latest moves in the long-running trade dispute between the US and China,” says AJ Bell...
24 October 2019
RBS takes PPI hit, and AstraZeneca cancer drug investment paying off“Strong US earnings overnight helped boost markets across Europe on Thursday morning and the FTSE 100 was no exception.
“A strong third quarter update from index heavyweight AstraZeneca also supported a healthy advance for the index,” says AJ Bell Investment Director Russ Mould.
Royal Bank of Scotland“Nobody loves life admin so it is probably no...
23 October 2019
Ethical investing: The rationale behind it and its potential pitfallsWith Greta Thunberg and Extinction Rebellion knocking Brexit off the front pages, it is clear that environmental and social issues are extremely topical at the moment. Matt Brennan, Head of Passive Portfolios discusses the rationale behind ESG (environmental, social and governance) investing and its potential pitfalls.
BP or not BP – that is the...
23 October 2019
Metro Bank founder leaves, and Ashley takes shot at Goals“Sterling and UK-focused stocks, including banks like Royal Bank of Scotland, took a step back on Wednesday morning as Westminster yet again failed to deliver clarity on Brexit.
“The second reading of the Withdrawal Agreement Bill may have been passed but MPs put a spanner in the works by failing to agree to Boris Johnson’s timetable. It now looks...
22 October 2019
The UK Equity Income funds exposed to low dividend cover stocksDividend cover is expected to fall to its lowest level in a decade* this year, meaning investors will understandably be jittery about what lies underneath their income funds’ portfolios. Ideally you’d want income stocks to have a dividend cover ratio at 2 times or above, meaning annual earnings are twice the level of dividends. This provides a...
22 October 2019
Reckitt reset under new CEO, and Whitbread sees first half profit fall“Ahead of yet another day which is being billed as pivotal in the Brexit saga, sterling is trading higher, helping to keep the FTSE 100, dominated as it is by overseas earnings, in check,” says AJ Bell Investment Director Russ Mould.
“Whether MPs will actually provide some clarity on the UK’s exit from the EU by approving the withdrawal agreement...
21 October 2019
Woodford alternatives: The best performing UK equity income funds over 10 yearsThe only positive that investors are likely to take from the Woodford situation is that there is an end in sight and those in the Equity Income fund will get their first return of capital in January, after the first tranche of assets have been sold off. They will then receive any remaining money as and when the fund’s assets are sold. Those who...
21 October 2019
Property funds build Brexit cash buffer as outflows soarProperty funds have seen consistent outflows over the past year, as UK retail investors have withdrawn more than £4bn of money from the leading UK direct property funds. Worries about the Brexit impact on property values have made investors nervous, as well as concerns about liquidity in the funds.
The level of outflows from some of the property...
