26 October 2020
Buffettology pulls investment trust IPO The Buffett name and the excellent performance record of Sanford DeLand simply hasn’t put enough bums on seats to get its UK smaller companies launch off the ground. Sentiment towards the UK market is at a low ebb and a resurgence of virus cases has further undermined confidence.Smaller companies tend to beat their big blue chip rivals over the...
26 October 2020
Second wave and stimulus gloom haunt markets, Hut’s first trading update is a hit“A week out from the US Presidential election and any hopes of a stimulus package being agreed ahead of the vote look increasingly forlorn,” says AJ Bell Investment Director Russ Mould.
“Investors are likely to be kept busy this week with several of the biggest companies in the US set to serve up their third quarter earnings – these could help...
23 October 2020
Centamin runs into more trouble on the yellow brick roadYou would have thought that sitting on a gold mine would be a path to instant riches, especially when the precious metal’s price is trading near its all-time high, so shareholders can be forgiven for being frustrated by the latest profit warning from Centamin. Production difficulties at the Sukari mine in Egypt – and management’s completely...
23 October 2020
Barclays beats expectations and InterContinental Hotels is on the road to recoveryFor most of 2020, energy and banking stocks have been the last ones to be picked by investors for their sports team, being the sectors least expected to perform well on the pitch. So it was therefore quite a surprise to see investors in a particularly generous mood on Friday with these sectors driving the FTSE 100 higher, up 0.8% to 5,834.
“Better...
22 October 2020
UK sustainable fund returns show performance doesn’t have to cost the earthGood Money Week kicks off on Saturday 24 October, in the midst of a bumper year for ethical fund sales and a snowballing spotlight on investing sustainably. But does investing according to your principles mean accepting a lower financial return?
To address this question AJ Bell has analysed funds with a 10 year performance record in the IA UK All...
22 October 2020
How to tell if the global economy is steaming ahead (or not)“Investors continue to look for signs as to whether the global economy is recovering or not and one encouraging indicator is the relatively strong performance of transport stocks,” says Russ Mould, AJ Bell Investment Director. “America’s Dow Jones Transportation index can point to increases of 8% this year and 12% over the last 12 months as it...
22 October 2020
New warning over pensions crisis facing 3.5 million self-employedAutomatic enrolment has started the process of getting employed workers saving something for retirement. However, the reforms do not cover almost 5 million self-employed workers, the majority of whom are not saving in a pension at all and risk facing severe financial difficulties in later life, new research suggests.*
Self-employed retirement...
22 October 2020
Unilever shines and Moneysupermarket update compares poorly“The chances of a stimulus plan being approved in the US ahead of the Presidential election looks increasingly slim and this is putting pressure on equity markets.
“A fall in the US was matched in Asia, which was also hit by a downgrade from the International Monetary Fund, and Europe has also opened in the red,” says AJ Bell Investment Director...
21 October 2020
Segro is in a sweet spot, and William Hill takeover not a done deal“Renewed confidence in a US stimulus deal helped lift stocks on Wall Street and in Asia overnight but the good feeling didn’t extend into today for the FTSE 100,” says AJ Bell Investment Director Russ Mould.
“A surge in the pound as the EU’s chief Brexit negotiator Michel Barnier commented that a deal with the UK could be in reach helped put the...
20 October 2020
Gamesys winning run continues with latest strong trading updateIt may not be a household name but Gamesys is one of the ten best performing stocks in the FTSE 350 index in the year to date and the leader amongst betting and gaming service providers and its upbeat third-quarter trading update helps to show why`. Sales rose 31% year-on-year on a like-for-like basis in the third quarter, after advances of 27% in...
20 October 2020
Reckitt is a true lockdown winner and Bellway revives dividends“European markets followed last night’s poor show on Wall Street with a bad session for equities on Tuesday,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 fell 0.3% to 5,866 while Germany’s DAX was down 0.6%. Investors increasingly seem to accept that today’s deadline for a pre-election US stimulus package will pass without an...
19 October 2020
FTSE makes muted start as vaccine hopes lose some of their restorative effect“It seems vaccine hopes aren’t having quite the same restorative effect on the markets as they did earlier this year.
“Investors, rightly, are not getting carried away at every little development on what effectively is the world’s fastest route out of the pandemic despite Pfizer’s candidate rolling off the production line and reported hopes that...
16 October 2020
Markets rebound as investors turn to defensive stocks, while Wetherspoon hit by tougher lockdown restrictions“After yesterday’s market bloodbath, it’s a relief to see stocks back in positive territory. The FTSE 100 jumped 1.3% to 5,907, albeit the index’s performance remains a huge disappointment with a 22% loss year-to-date,” says Russ Mould, Investment Director at AJ Bell.
“A lot of people will have put their money into funds tracking the UK’s biggest...
15 October 2020
Bad day for markets, while AO continues to soar“Investors were greeted with a sea of red as global equity markets slumped on Thursday. It is becoming more apparent that the pandemic could still be raging well into 2021 and so economic prospects have become even more clouded,” says Russ Mould, Investment Director at AJ Bell.
“There were also negative comments from US Treasury Secretary Steven...
14 October 2020
FTSE 100 banks look to avoid living down to low expectations with Q3 resultsJP Morgan Chase and Citigroup got the third-quarter reporting season for the US banks off to a good start, as both easily exceeded consensus forecasts, thanks in the main to a big drop in provisions for bad losses on their loan books. Shareholders in the Big Five FTSE 100 banks will be hoping for similar good news after a terrible year so far for...
14 October 2020
Weaker sterling lifts the FTSE and Barratt Developments is riding the property market rallyThe UK market pushed ahead on Wednesday while Europe and most of Asia went in retreat, following losses on Wall Street last night,” says Russ Mould, Investment Director at AJ Bell.
“Powering the FTSE 100, up 0.3% to 5,987, was strength among pharma, consumer goods and mining companies, with GlaxoSmithKline the biggest contributor in terms of index...
14 October 2020
How to invest in a greener future like BoJoThere are broadly three ways in which people can push for a greener future without gluing themselves to the floor outside Downing Street - through who they vote for, what they consume and where they invest.
There is now a good range of sustainable funds available to UK investors and while still relatively small, the amount of money invested in...
13 October 2020
How much good news is baked into Apple’s share price ahead of the latest product launch?Apple’s shares are rolling higher again as investors get excited about the latest round of product launches, including a hotly-anticipated 5G phone, but the stock’s history suggests that the markets have a classic habit of buying on the rumour and then selling (or at least pausing for breath) after the fact.
In the six months before the firm’s...
13 October 2020
Unemployment hits three year highUnemployment isn’t high by historical standards, but the picture is clearly deteriorating. We’re beginning to see what the economic wound looks like as the bandage of furlough is gradually removed.
August was the month where employers started to pay towards the cost of furloughed employers - only employer National Insurance payments and pension...
13 October 2020
US tech rally fails to stir UK market, while Boohoo is back in the doghouse“Tech stocks are back on everyone’s Christmas list following a sharp rally on Wall Street last night. The Nasdaq index jumped nearly 3% with considerable excitement about Apple, sending its share price up 6% ahead of a product launch event on Tuesday,” says Russ Mould, Investment Director at AJ Bell.
“Tech stocks saw a lacklustre September, leading...
12 October 2020
FTSE 100 dividends are forecast to fall £18 billion in 2020After further dividend cuts and reductions in analysts’ estimates, FTSE 100 dividend payments are forecast to fall 24%, or £18 billion, in 2020 after an 11% drop in 2019, leaving the total at its lowest level since 2012. That means the FTSE 100 is currently expected to yield 3.5% for 2020, increasing to 4.2% in 2021.
Dividend forecasts for the year...
12 October 2020
UK market awaits EU trade talks and new lockdown measures, while IAG brings in new boss for British Airways“It’s a big week for the UK as trade talks with the EU enter a crucial stage. Sterling nudged up 0.1% against the euro to €1.1044 but was flat against the US dollar, implying that the market is still uncertain as to the likely outcome of the negotiations.
“A 1% decline in Brent Crude oil to $42.40 per barrel weighed on the FTSE 100 with shares in...
9 October 2020
British Land update improves sentiment towards commercial property sector“It was a decent end to the week for global equities with most markets delivering modest gains. The FTSE 100 moved ahead 0.4% to 6,002, while Germany’s DAX index was up 0.3% and India’s BSE Sensex rising 0.7%. Pre-market indicative prices suggested US markets would open 0.4% higher on Friday. Shanghai’s CSI 300 index jumped by 2% following an...
8 October 2020
Shareholders breathe sigh of relief as Imperial Brands sticks to forecasts“After a torrid 12 months, featuring two profit warnings, a change in chief executive, a dividend cut and a 25% slump in the share price, shareholders could have been forgiven for approaching Imperial Brands ’ trading update with a degree of trepidation, so they will be delighted by the absence of any new, nasty surprises,” says Russ Mould, AJ Bell...
8 October 2020
First Child Trust Funds come of age – what are the options for those turning 18?From September 2020, anyone celebrating their 18th birthday could get a bonus birthday present as the first tranche of child trust funds mature. Child Trust Funds were available to children born between 1 September 2002 and 2 January 2011, so the first ones mature this year, and it’s estimated that around 800,000 of the accounts will mature each...
