2 August 2019
Rising loan losses raise questions as RBS struggles with 2020 profit goalsNormally you would have thought that investors would be pleased to see a huge jump in pre-tax profits, an increase in the dividend and a meaty 12p-a-share special dividend but shares in Royal Bank of Scotland are still down, despite this tempting trio.
This is because the quality of the earnings increase is poor, with a capital gain on disposal...
2 August 2019
Royal Bank of Scotland’s financial targets out of reach, and Pets at Home is wagging its tail again“What an ugly start to August for global markets. Trump’s latest tariffs on China have put equities into freefall with stock prices marked down sharply,” says Russ Mould, Investment Director at AJ Bell.
“UK shares fell 1.6%, as measured by the FTSE 100 index, and most of Europe’s and Asia’s markets were down by more than 2%. As a guide, a downwards...
1 August 2019
Barclays’ investment bank goes some (small) way to proving its worth“On a stated basis, Barclays’ second-quarter, stated pre-tax profit fell by a fifth to £1.5 billion, which wouldn’t usually be a cause for celebration, but the shares are up all the same,” says Russ Mould, AJ Bell Investment Director.
“This may reflect relief that the profit and loss account did not take another big hit from Payment Protection...
1 August 2019
Royal Dutch Shell misses expectations, and Capita investors breathe sigh of relief“Investors aren’t happy with the size of the Federal Reserve’s interest rate cut and signals that it is not about to start a new monetary easing cycle.
“Markets reacted to the news with widespread declines in share prices. The FTSE 100 also suffered from a strengthening in the dollar, falling 0.3% to 7,564,” says Russ Mould, Investment Director at...
31 July 2019
PPI returns to haunt Lloyds (and bad loans trend looks a little worrying too)“You cannot help but get the feeling that the 29 August Payment Protection Insurance claims deadline cannot come quick enough for the big banks, especially as Lloyds has just taken an extra £550 million provision to try and cover a possible final rash of compensation payments,” says Russ Mould, AJ Bell Investment Director.
“Add that to the gloom...
31 July 2019
Next scores again, and Lloyds counts down the days to PPI claims deadline“Donald Trump has done it again after turning aggressive with regards to the trade war with China. All it took was a few tweets criticising the country for markets to turn sour. Following a sell-off last night in the US, the FTSE 100 slipped 0.2% on Wednesday to 7,630 and Asian markets were also flashing red as investors lowered their hopes for an...
30 July 2019
Centrica dividend cuts begs the question of who will be next (and a checklist to test how safe forecast pay-outs really are)As yet another fat dividend yield that looked too good to be true proves to be just that, with Centrica’s decision to slash its interim payment by more than half, income investors will be starting to wonder which FTSE 100 firm will be next to make the unkindest cut of all.
Vodafone, Marks & Spencer and now Centrica have all cut their dividends and...
30 July 2019
Apple looks to lay foundations for return to profits growth with Q3 results“ Apple’s shares are up by a third this year and the company is within touching distance of the $1 trillion market cap mark again, but its shares are still some 10% below their all-time high and investors will be looking to Tuesday night’s third-quarter figures to bury the bad memories left by January’s profit warning,” says Russ Mould, AJ Bell...
30 July 2019
Reckitt has a health problem, and all change at Centrica“Decent numbers from oil producer BP helped put the stock at the top of the FTSE 100 risers list, and gave support to the blue chip index alongside some help from miners. The FTSE 100 traded 0.2% higher at 7,697,” says Russ Mould, Investment Director at AJ Bell.
“Weak sterling has been fuelling a rally in the FTSE 100 as nearly three quarters of...
29 July 2019
Hammerson yet to nail a catalyst that unlocks value for shareholders“ Hammerson’s shares continue to look very cheap on both a dividend yield and net asset value (NAV) basis, its prime outlet sites are proving their worth and the company continues to shift its tenant mix away from the stricken high-street fashion sector, but investors don’t seem to want to know,” says Russ Mould, AJ Bell Investment Director.
“Even...
29 July 2019
London Stock Exchange finally strikes mega deal and Just Eat’s activist investor is the cat that got the cream“The FTSE 100 jumped past the 7,600 level on Monday as a spate of corporate action put a new lease of life in the market. Separate deals involving Just Eat and London Stock Exchange as well as an increase in private equity activity this year have got investors excited over the prospect of further M&A.
“Investors were also bidding up shares in...
24 July 2019
Fevertree's two sided coin and PZ Cussons' Nigerian soap operaMarkets were in a good mood on Tuesday with gains seen across the UK, Europe and Asia. The FTSE 100 jumped 0.6% to 7,560 with investors flocking to own packaging companies, miners and insurers," says Russ Mould, Investment Director at AJ Bell.
"The pound fell 0.1% versus the euro and down 0.3% against the dollar on worries that Boris Johnson would...
22 July 2019
Oil price spike lifts FTSE, Metro Bank to offload loans, Ascential in transformation mode“Higher oil prices helped to push up the FTSE 100 by 0.2% to 7,522 with major index constituents Royal Dutch Shell and BP both rising on Monday. Brent crude jumped 2.2% to $63.87 per barrel following the weekend’s tensions between Iran and the UK. Other key risers on the UK market included mining and packaging companies. “All eyes will be on UK...
19 July 2019
Fed (still) in focus, SSP serves up solid update, Acacia agrees to Barrick takeover“The market’s obsession with when or if the US Federal Reserve will hit the button on rate cuts continues, with hopes of action at its meeting at the end of this month growing. This puts the FTSE 100 on course for a strong end to the week, up 0.6% to 7,537.82 early on,” says AJ Bell Investment Director Russ Mould.
SSP Group“As we are preparing to...
18 July 2019
Share price screen turns red again at ASOS“ Netflix shareholders won’t enjoy looking at their trading screens this morning and neither will those of ASOS for precisely the same reason – there are few worse investments than a growth stock that disappoints,” says Russ Mould, AJ Bell Investment Director.
“Fast-fashion specialist ASOS trades on a very high valuation – before today’s upset it...
18 July 2019
ASOS risks losing customers and EI Group goes Walkabout“A rally in tobacco stocks isn’t enough to stop the FTSE 100 from going into reverse. The key offenders are utilities, tech and miners which serve to drag the blue chip index down 0.5% to 7,496. “European and Asian markets were also looking fragile amid ongoing concerns about the state of the global economy,” says Russ Mould, Investment Director at...
17 July 2019
What to look for when Netflix issues its Q2 results at 9pm tonight“After starting the year with a furious rally, shares in Netflix are now finding it harder to make further gains and they still trade some 13% below last summer’s all-time high, even as the S&P 500 and NASDAQ reach fresh peaks. The second-quarter results will therefore be a good test, especially as earnings per share estimates have leaked lower,”...
17 July 2019
Pound hurting, activist targets Saga, destocking holds back Premier Foods, and relief for TalkTalk“The pound is under increasing pressure as we draw closer to a decision on the Tory leadership contest and Brexit. It fell a further 0.1% on Wednesday morning to trade at $1.2393. This currency weakness weighed on UK domestic stocks including Sainsbury’s and Marks & Spencer, both among the top fallers on the FTSE 100 index. “The blue chip index...
16 July 2019
Mixed markets, AG Barr soaked by the rain, and Burberry’s new collection is a hit“European markets were mixed on Tuesday with the FTSE 100 rising 0.1% to 7,540, Germany’s DAX index showing a similar advance and Amsterdam’s AEX index slipping 0.2%. “Asian shares also struggled to find direction with Hong Kong’s Hang Seng rising 0.1% and Tokyo’s Nikkei 225 falling 0.7%. UK stocks were led by Burberry, ITV and Pearson,” says Russ...
15 July 2019
House of Fraser leaves Sports Direct looking stumped“Mike Ashley may well be hoping that England’s remarkable victory in the 2019 Cricket World Cup final will translate into more sales of cricket kit in his shops but any feel-good factor on this front is going to be overshadowed by today’s announcement of a delay in the publication of Sports Direct’s annual results,” says Russ Mould, AJ Bell...
15 July 2019
China stimulus hopes lift markets, Sports Direct delays results and there is disappointment for insurers“News that China’s economy is growing at its slowest pace since the 1990s has failed to trouble investors, perhaps as there had already been plenty of signs to suggest the Asian powerhouse is finding life a bit harder,” comments Russ Mould, Investment Director at AJ Bell.
“Interestingly commodity producers are among the FTSE’s top risers...
12 July 2019
Thomas Cook shares slump and Lookers stalls on warning“Continuing suggestions that a US rate cut is on the way helps put the FTSE 100 on course for a positive end to the week. With housebuilders helping to build gains for the index, the main faller was insurance firm Hiscox as it warned of deteriorating markets,” says AJ Bell Investment Director Russ Mould.
Thomas Cook“ Thomas Cook – a one-time...
11 July 2019
Reckitt and Indivior soar on US settlement and shares in housebuilders lifted by property market data“UK and Asian stocks followed the upwards trend seen last night in the US after the Fed signalled an interest rate cut. The FTSE 100 advanced 0.2% to 7,548 and Hong Kong’s Hang Send index jumped 0.8%,” says Russ Mould, Investment Director at AJ Bell.
“Commodities were also in favour with oil rising 0.3% and, somewhat unusually for a market in risk...
10 July 2019
Superdry’s very large kitchen sink and Barratt beats expectations“A small decline in the FTSE 100 may not cause too much fuss among investors as the blue chip index is still trading over the 7,500 mark. Having been in investors’ good books for several recent sessions, utilities are now among the top fallers on the UK market, albeit only experiencing marginal losses,” says Russ Mould, Investment Director at AJ...
9 July 2019
10 lessons to learn from WoodfordNews of Woodford’s fund suspension has dominated lately and while investors in his fund can only wait out the suspension for now, there are some important lessons that can be learnt for future.
Whether it’s assessing your current portfolio or using this checklist next time you’re planning to invest in a new fund, the Woodford situation highlights...
