15 May 2019
British Land fails to provide foundations for a share price rally“The trouble with potential value stocks is that you need a catalyst to unlock the value that may be there. Declines in net rental income, average lease length and net asset value per share, as well as an increase in the vacancy rate, are likely to attract far more attention than an increase in the dividend and a drop in net debt,” says Russ Mould...
15 May 2019
CYBG bounces back and TUI’s results could have been a lot worse“Investors will be very relieved that we haven’t got yet another day of share prices all flashing red. The FTSE 100 was flat on Wednesday morning which is a welcome relief to several nasty sessions on the market in the past week," says Russ Mould, Investment Director at AJ Bell.
“One cannot rule out further volatility given the trade war is still...
14 May 2019
Vodafone slashes dividend, Greggs on a roll“Hopes of a resolution to the current trade tensions between the US and China, after President Trump hinted at a settlement in the coming weeks, helped drive a recovery in the FTSE 100 on Tuesday despite a big drop on Wall Street overnight,” says Russ Mould, Investment Director at AJ Bell.
Vodafone“It’s not perfect but the market often does a...
13 May 2019
Four ways to tell whether a dividend may be safeMarks & Spencer has already taken the plunge and announced a plan to cut its dividend and although BT has decided to keep its payment unchanged investors are understandably nervous about some of the yields offered by some of the UK’s biggest firms. With the best cash ISAs offering an interest rate of around 1.5% and the UK 10-year Government bond...
13 May 2019
Metro Bank’s social media problem and Centrica is still struggling ahead of new strategy launch“The FTSE 100 was flat as the new trading week kicked off. Investors had a testing time last week and are likely to be cautious until there is more clarity on the US/China trade talks," says Russ Mould, Investment Director at AJ Bell.
“On Monday, the utility sector was among the risers on the FTSE including gains from Centrica and National Grid...
10 May 2019
Why Chinese shares and miners are rising on trade war update, and International Consolidated Airlines flies higher Trade War Latest“One may not have expected the Chinese market and shares in mining companies to rise off the back of US increasing tariffs on $200bn of Chinese goods, but that’s exactly what has happened," says Russ Mould, Investment Director at AJ Bell.
“There are two possible explanations for the stock market reaction.
“First, investors hate...
9 May 2019
BT sends out the right signals with an unchanged dividend“After the 5% cut to the interim payment, shareholders in BT could have been forgiven for fearing the worst, so they will be pleasantly surprised to see new chief executive Philip Jansen and the board’s decision to make an unchanged full-year dividend of 15.4p,” says Russ Mould, AJ Bell Investment Director.
“That equates to a 7% dividend yield...
9 May 2019
Three is not the magic number for Superdry, and Barratt builds up margins“The FTSE has been hit with a double whammy of trade war tensions and a few big names trading without the rights to their dividend including Centrica and Admiral, ” says Russ Mould, Investment Director at AJ Bell.
“UK shares followed Asia lower after comments from US President Donald Trump about how China ‘broke the deal’ during trade negotiations...
8 May 2019
ITV Studios does its duty even as advertising revenue slides“The BBC continues to bask in the acclaim enjoyed by Line of Duty but the show was actually made by ITV’s World Productions. This may be one reason why non-advertising revenue at ITV is holding up better than advertising sales - after The Bodyguard in 2018 this is actually the second year in a row that ITV has made the BBC’s most critically...
8 May 2019
Direct Line takes a hit and ITV’s blurry picture“After another bad day for stocks in the US, it is interesting to see the UK market remain relatively calm. Investors have been worried about US President Donald Trump causing disruption again with trade tariffs, triggering several negative sessions on stock markets around many parts of the world. On Wednesday the FTSE 100 slipped 0.2% which is...
7 May 2019
The wheels come off Purplebrick's disruptive bandwagon, and Domino's fails to deliver overseas“Trump’s latest trade war tariff threat has not had the negative effect on UK shares as seen in other markets at the start of the week," says Russ Mould, Investment Director at AJ Bell.
“While the UK was enjoying a public holiday on Monday, markets across Asia, Europe and the US posted decline. Come Tuesday and the FTSE 100 only slipped by 0.3% as...
3 May 2019
The numbers that lie at the heart of the strategic struggle at Barclays“While it seems unlikely that Edward Bramson and his Sherborne Investors vehicle will prevail in their campaign to get a board seat and reduce Barclays’ exposure to investment banking, the issues raised are not going to go away any time soon,” says Russ Mould, AJ Bell Investment Director.
“The debate over whether the investment bank adds value to...
3 May 2019
Intu’s pains intensify and HSBC beats expectations“Banks and miners help to drive the FTSE 100 up 0.4% to 7384 on Friday, led by HSBC and Anglo American. Markets in mainland Europe also nudged ahead including a 0.1% gain in the DAX," says Russ Mould, Investment director at AJ Bell.
“Next week’s UK corporate calendar includes updates from ITV, Direct Line, Morrison and Barratt Developments.”
Intu...2 May 2019
Lloyds completes miserable earnings season for banks and Reckitt caught cold by weak flu season“The FTSE 100 traded lower on Thursday morning, taking its cue from a weak showing on Wall Street overnight," says AJ Bell Investment Director Russ Mould.
“The catalyst was commentary from the US Federal Reserve chief Jerome Powell. This suggested that while the Fed was happy to keep rates on hold for now, it would not be taking up President Trump...
1 May 2019
Apple’s second-quarter cash flow reassures but there is still work to be done“ Apple’s shares have surged by 40% from their December lows, to bring the $1 trillion market capitalisation figure back into view, but they are also still some 15% below last autumn’s all-time high and the Californian giant’s second-quarter numbers explain why, because it has yet to truly recapture its profit momentum,” says Russ Mould, AJ Bell...
1 May 2019
Sainsbury comes out swinging after Asda merger knock-back“If they are to avoid further punishment, the only course of action for a boxer who is on the ropes is to come out swinging and that is exactly what Sainsbury’s boss Mike Coupe has done with the grocer’s full-year results,” says Russ Mould, AJ Bell Investment Director.
“An increase in underlying pre-tax profit, a dividend hike and a reduction in...
1 May 2019
Pleasant surprise from Sainsbury's and rebuilding work at Persimmon“The FTSE 100 nudged up on Wednesday thanks to strength in parts of the banking, food retail and life insurance markets. The main markets in Continental Europe were closed for a public holiday. Investors are waiting patiently for the latest monetary policy decision from the US Federal Reserve which is expected to hold interest rates steady,” says...
30 April 2019
Increased profits and loans bode well for Standard Chartered (even if the merits of its buyback plan remain open to debate)"A 5% year-on-year increase in pre-tax profit at Standard Chartered may not sound like much, but $1.2 billion in earnings easily beat analysts’ forecasts. Add in a 3% increase in the loan book compared to the previous quarter and upbeat commentary from chief executive Bill Winters about ‘sentiment in our markets showing signs of improvement’ and...
30 April 2019
Output growth supports the cash flow that bolsters dividends at BPFor the fourth quarter in a row, BP has paid a quarterly dividend of 10.25 cents, up from 10 cents a year ago. That year-on-year increase, supported by increased output and this quarter’s increase in the oil price, means the shares are offering a dividend yield of around 5.6% for 2019, which may appeal to income-seekers.
That only ranks the stock...
30 April 2019
Standard Chartered's first buyback in 20 years, BP beats expectations (again) and Whitbread in a sticky patch“Weak Chinese manufacturing data put pressure on the mining sector and helped undermine hopes of a positive start for the FTSE 100 on Tuesday. “The modest decline in the index also followed weak first quarter numbers from Google-owner Alphabet in the US overnight,” says Russ Mould, Investment Director at AJ Bell.
Standard Chartered“Even in a...
29 April 2019
Change of driver for Auto Trader“The better-than-expected US growth reported at the end of last week sets the scene for a positive start to the new week for UK stocks," says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 is up modestly ahead of a busy week which is also dominated by events across the Atlantic, with Google-owner Alphabet set to report later today, the...
26 April 2019
UK orders slow at Just Eat, RBS hit by Brexit, and WPP waves goodbye to US clients“The FTSE 100 started in subdued mood on Friday ahead of the release of the latest US GDP figures and amid some mixed corporate news on an unusually busy end to the week in terms of company announcements", says AJ Bell Investment Director Russ Mould.
“A retreat in crude oil prices also hit index heavyweights BP and Royal Dutch Shell putting...
25 April 2019
Tesla continues to burn more cash than rubber even as next debt repayment loomsThe immediate pressure may be off, now that Tesla has repaid $1.1 billion in convertible bonds that matured in November and March, but Elon Musk and his colleagues face another $566 million repayment this coming November, even as the company continues to consume cash rather than generate it. The debate over whether the firm needs to raise fresh...
25 April 2019
Pressure will remain on Barclays after first-quarter results even if activist plan is rejectedBarclays’ mixed first-quarter results may not unduly harm chief executive Jes Staley’s efforts to fend off activist investor Edward Bramson, although they may not help much either. All of the £1.8 billion year-on-year improvement in pre-tax profit came from a drop in restructuring, loan impairment and litigation costs as total income fell 2%...
25 April 2019
Sainsbury’s needs a Plan B, bad news from the banks, and Taylor Wimpey highlights housebuilder margin conundrum“The FTSE 100 was off to a ropey start on Thursday as it continued its retreat from year-to-date highs seen earlier in the week.
“The index appeared to be taking its cue from a subdued showing overnight on Wall Street and a mixed session in Asia with the mining sector a material contributor to the weak showing,” says AJ Bell Investment Director...