3 December 2020
Markets press ahead despite Brexit talks set-back, and Countryside looking to sell housebuilding arm after shareholder pressure“UK equity markets held firm despite new fears that Brexit trade negotiations are stalling again after France, Spain, Italy, Belgium, the Netherlands and Denmark expressed concerns that the European Commission is giving away too many concessions, thereby dampening hopes of an imminent agreement," says Russ Mould, Investment Director at AJ Bell.
“T...
2 December 2020
Why the Santa Rally is more fact than fictionIn his novel Pudd’nhead Wilson the American writer Mark Twain cautioned about October, saying: ‘This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.’ Yet even he might have to admit to December’s festive charms, as it is...
2 December 2020
Market reaction to Pfizer vaccine UK approval and Tesco’s decision to repay relief puts pressure on rivals“Many people will be surprised at the muted reaction from the stock market to the UK becoming the first country in the world to approve the Pfizer covid-19 vaccine for widespread use,” says Russ Mould, Investment Director at AJ Bell. “The FTSE 100 and FTSE 250 indices have both shrugged their shoulders to the news, almost as if they are saying ‘so...
1 December 2020
FTSE 100 bosses still outlast football managers despite management merry-go-round in 2020You would have thought that investors would have wanted managerial stability in 2020 of all years, given the challenges which have been thrown at companies from all angles, but David Lamont’s arrival as the new chief financial officer at miner BHP Group today marked the forty-fourth change in either chief executive or head of finance at FTSE 100...
1 December 2020
Will there be a Santa Rally?“Is the stage set for a Santa Rally? On the one hand growing certainty over the transition to a Biden White House and further news on coronavirus vaccines offer the prospect of ready catalysts as we enter December, on the other we still don’t know if a Brexit deal will be secured,” says AJ Bell Investment Director Russ Mould.
“The UK and EU have...
30 November 2020
FTSE up at the start of another crunch week for Brexit, and challenging situation for new Lloyds CEO“The FTSE 100 made a decent start to the week amid some signs the coronavirus restrictions in the UK are working as infection rates fall.
“It feels like Groundhog Day when it comes to Brexit as we enter yet another ‘crunch week’. However, with just a month until the end of the transition period something definitely has to give – we should soon...
27 November 2020
Markets grind to a halt, ending a lacklustre week for equities“Companies have been waiting eagerly for the moment when the England-wide lockdown comes to an end, yet the shift to a revamped tier system isn’t the great reopening of the economy as far as many leisure companies are concerned,” says AJ Bell Investment Director Russ Mould.
“The market reaction to Wetherspoon’s latest update would suggest...
26 November 2020
Severn Trent sticks to the dividend script“Of the fourteen FTSE 100 companies to release results in the past two weeks and Severn Trent is the tenth to declare an unchanged or an increased dividend (or even restore payments) alongside them, as the news for income-seekers continues to improve (or at least become less bad),” says Russ Mould, AJ Bell Investment Director.
“Of the other four...
26 November 2020
Markets pause for thought while investors shrug off Mitchells & Butlers' concerns“The UK stock market has taken a moment of reflection after all the whirlwind of the past few weeks where equities bounced back hard on vaccine hopes, a strong oil price and some relief with how the US Presidential transition might play out,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 was unmoved at 6,390 on Thursday with gains...
25 November 2020
Run of takeovers suggests UK stock market is still cheapThe confirmation of a bid for AA, an approach to GoCo and a raised offer for Elementis make it 14 takeover deals in just over a month, to suggest that someone, somewhere thinks there are some UK-listed companies going cheap. The average premium offered for the targets is 46% so any investors who owned some of them will be feeling pretty happy with...
25 November 2020
Markets press ahead while Future makes a move on GoCompare owner“Little by little the UK stock market is moving ahead which is exactly what investors need after such turmoil earlier this year. The FTSE 100 advanced another 0.3% to 6,452, meaning the blue-chip index has risen by nearly 16% since late October. It’s still not high enough to match the 7,600 levels seen in January, but investors should still be...
24 November 2020
Homeserve could find itself out in the cold after latest FTSE 100 reshuffleThe latest FTSE 100 reshuffle, the results of which are due to be announced after the close on Wednesday 2 December, could be relatively quiet this time around, with just one demotion and one promotion. Homeserve and Wizz Air are the two firms that look most likely to swap places. It is still possible that we see no changes at all, depending how...
24 November 2020
Good day for markets with energy and travel sectors in demand, while AO profit growth soars on lockdown boost“An upbeat day for the markets has been spurred by Donald Trump accepting the US presidency transition to Joe Biden must begin, thus implying a smoother than expected handover,” says Russ Mould, Investment Director at AJ Bell.
“Also supporting markets was a pick-up in the Brent Crude price by 1.4% to $46.44. Oil acts as an economic bellwether and...
24 November 2020
Five top tips for people accessing their pension during Covid-19New data published by the Association of British Insurers (ABI) reveals details of how savers have been accessing their retirement pots during lockdown*. The number of people accessing their pension flexibly increased 56% between April and September, while the number taking their entire pension as a lump sum rose 94%. This increase likely reflects...
23 November 2020
Only mild reaction from equities to latest Covid-19 vaccine trial result“The results of AstraZeneca and Oxford University’s Covid-19 vaccine trial result failed to trigger a major rally in equities with the 70% efficacy result perhaps disappointing in comparison to the 95% results from Pfizer and Moderna,” says Russ Mould, I nvestment Director at AJ Bell.
“In relative terms one can understand why AstraZeneca’s result...
20 November 2020
Retail sales up ahead of Covid Christmas as FTSE makes modest gains, and Sage hit by falling margins“The FTSE 100 made modest gains early on Friday and was on course to end the week as a whole in positive territory, albeit achieving nothing like the vaccine-fuelled rise seen last week,” says AJ Bell Investment Director Russ Mould.
“Retail sales increased for the sixth consecutive month in October according to official data, with the release...
19 November 2020
Royal Mail enjoys parcels boost, and growth fades at Kingfisher“Despite encouraging news on the latest vaccine candidate to report, the FTSE 100 started Thursday on the back foot, taking its cue from a sell-off in the US overnight,” says AJ Bell Investment Director Russ Mould.
“The report on the AstraZeneca and University of Oxford vaccine was less likely to move the dial as, unlike the other major vaccine...
18 November 2020
Bitcoin: up and up it goes (until it blows…again?)Gold is holding firm around $1,900 an ounce and silver is hanging on to what looks like an upward trend at just shy of $25 an ounce but it is Bitcoin that catches the eye, which is now trading above $18,000, only a fraction below its December 2017 highs. The cryptocurrency is up by more than 150% this year and can point to a 60% gain since August...
18 November 2020
Inflation climbs, slowlyCPI is slowly making a comeback, but it’s still way below the Bank of England’s 2% target. Inflation isn’t just a measure of prices in the here and now, but also one year ago. More substantial gains can therefore be expected as we head into spring, as the baseline for comparison moves into the post-pandemic era.
The current lockdown may create some...
18 November 2020
Halfords doubles profits and British Land faces challenges with offices and shops“The FTSE 100 started Wednesday a bit lower as inflation made a fairly modest return. Expectations a Brexit deal could be forged were lifted again amid signs the rather smelly issue of fishing rights was on its way to being expunged,” says AJ Bell Investment Director Russ Mould.
“This acted as drag on the UK’s flagship index for a second day as...
17 November 2020
Imperial Brands offers a whiff of better times to come“The absence of any further profit warning, a dividend that meets (lowered) expectations and improved cash flow all offer hopes of a better times ahead at Imperial Brands under new CEO Stefan Bomhard and his revamped management team, especially as debt is coming down and the results of a strategic review are due in January,” says Russ Mould, AJ...
17 November 2020
EasyJet waits for demand to pick up, and traditional products drive Imperial Brands’ earnings“Equities were firm on Tuesday as investors paused for breath after yesterday’s excitement from Moderna’s vaccine news. The FTSE 100 was flat at 6,418 and there was also minimal change in the main indices in France and Germany,” says Russ Mould, Investment Director at AJ Bell.
“Asian markets had their first chance to react to Moderna’s covid-19...
17 November 2020
How to protect your cash if the Chancellor swoops on capital gains taxWith Pfizer potentially weeks away from distributing a coronavirus vaccine, it seems increasingly likely that next year the Government will shift from pandemic emergency response mode to asking: ‘How on earth do we pay for all this?’
In this context, yesterday’s OTS report – commissioned by Rishi Sunak - feels very much like the Chancellor rolling...
16 November 2020
Vodafone has more to do before it fully reconnects with investorsVodafone is a long way from building the sort of compelling dividend growth story that gives real long-term impetus to a share price but income-seekers will at least be pleased to see the company stick to its cash-flow forecast for the year and keep its first-half dividend unchanged. The company is forecast by analysts’ to be the seventh-biggest...
16 November 2020
Japanese GDP boost helps markets off to a strong start and Vodafone pleases with half-year results“The markets get the new trading week off to a solid start, which is encouraging given all the excitement generated in the last seven days by news of vaccine breakthroughs,” says AJ Bell Investment Director Russ Mould.
“Solid and steady gains are arguably just what investors need after a very volatile period. The catalyst for the latest move for...