1 July 2019
U-turn for Aston Martin shareholder and Future fights back“The fact that China and the US are restarting trade talks gives some reassurance to investors and triggers a small rally in stocks around the world. However, there are plenty of other negative factors to consider which explains why equity markets aren’t experiencing massive surges,” says Russ Mould, Investment Director at AJ Bell.
“The trade war...
28 June 2019
Merlin set to be gobbled up and Costain issues profit warning“It seems unlikely that we’re going to get much reaction from global stock markets until this weekend’s G20 summit has taken place as investors are looking for updates on trade talks,” says Russ Mould, Investment Director at AJ Bell.
“Instead it is worth taking stock of how markets has performed this year now we’ve reached the halfway point in...
27 June 2019
Kingfisher lines up new boss and Serco returns to growth“This weekend is extremely important for the future direction of global stock markets. The G20 summit will include trade talks between the US and China and investors will be looking for any sign that the two countries can sort out their differences,” says Russ Mould, Investment Director at AJ Bell.
“Investors in Asia are certainly looking...
26 June 2019
Stagecoach off the rails, and never say never again for Bonmarche“Global markets were fairly static on Wednesday as investors took stock of recent geopolitical and economic events.
“On the FTSE 100, natural resources groups Evraz and Royal Dutch Shell saw small gains. Insurers and banks were also in demand. These gains were offset by weakness in the utilities sector,” says Russ Mould, Investment Director at AJ...
25 June 2019
How to play gold if the precious metal’s price really starts to shineThe prospect of looser central bank policy, concerns over global growth and unrest in the Middle East are all giving gold a boost, thanks to its perceived status as a store of value and a haven asset during times of uncertainty. But what is really getting gold-watchers excited is a break-out on the metal’s price chart above the $1,350-to-$1,360 an...
25 June 2019
Carpetright’s recovery still has hurdles to clear, and Gear4Music is out of tune“Geopolitical tensions weighed on the markets on Tuesday after the US imposed new sanctions on Iran. Stocks across the UK, Europe and Asia took a dive, with investors switching their attention once again to gold as a safe-haven asset,” says Russ Mould, Investment Director at AJ Bell.
“The precious metal traded 1% higher at $1,433 per ounce. Gold...
24 June 2019
Investors marking time until key summit, and Philip Green-backed MySale puts itself up for sale“The FTSE 100 was flat in early trading on Monday with the potential catalysts not scheduled until this coming Friday when the G20 summit is held,” says AJ Bell Investment Director Russ Mould.
“All the attention will be on Donald Trump and his Chinese counterpart Xi Jinping and whether they can dial down the mood music on trade which of late has...
21 June 2019
FTSE 100 nears 11% gain this year and Trainline chugs on to the UK stock market“The FTSE 100 is on track to end the week around the 7,450 mark, putting it back up at highs previously seen in April and at nearly an 11% gain year-to-date.
“Financial stocks were in vogue with notable gains from Prudential, Barclays and Royal Bank of Scotland. Oil giant Royal Dutch Shell also gave the blue chip index a lift,” says Russ Mould...
20 June 2019
Dunelm completes hat-trick of good news and investors hang up on Dixons Carphone“Despite a lack of clarity from the US Federal Reserve overnight on potential interest rate cuts the market appeared to be reading between the lines after inflation expectations were downgraded with the FTSE 100 enjoying decent gains to trade 0.3% higher at 7,247.88.
“Today the focus switches to the Bank of England with reports suggesting it might...
19 June 2019
FTSE 100 may need more earnings momentum to make further gains“We are six months into 2019 and the FTSE 100 is up nearly 11%, with the prospect of a dividend yield of some 4.5% on top, returns that pretty much any investor would have taken had you offered them up at the start of the year. The big question now is where do we go from here?” says Russ Mould, AJ Bell Investment Director.
“A lowly valuation – in...
19 June 2019
Berkeley’s bumper cash returns fail to reassure investors over housing market worries“Worries over the housing market and state of the UK economy more generally appear to be trumping the feel-good factor generated by better-than-expected profits and further share buybacks and dividends from high-end house builder Berkeley, even as its full-year results reaffirm three factors that could form an investment case for the stock,” says...
19 June 2019
Saga’s latest setback and Berkeley spreads its wings“The UK market sat on its hands as investors waited for the latest Fed meeting with bated breath. The FTSE 100 dipped 0.2% to 7,429,” says Russ Mould, Investment Director at AJ Bell.
“In stark contrast, Asian shares rallied after US President Donald Trump said on Twitter that he’d had a ‘very good’ call with Chinese President Xi Jinping, raising...
18 June 2019
FTSE treading water ahead of US rate call, and Ashtead is a money-making machine“The FTSE 100 was flat on Tuesday with the US Federal Reserve very much in focus. It feels like the market is setting a lot of store in what emerges from its two-day meeting on interest rates,” says AJ Bell Investment Director Russ Mould.
“If Fed chief Jerome Powell and his colleagues don’t at least hint at a future rate cut, then a negative...
17 June 2019
Airline sector struck by Lufthansa warning, Kier slims down, and Babcock fights off Serco’s advances“The financial sector came to the FTSE 100’s rescue on Monday as investors bid up shares in banks, insurers and investment platform providers. The blue chip index traded 0.1% higher at 7,353, following a similar trend seen across mainland Europe.
“In Asia, Hong Kong’s Hang Seng index advanced 0.5% after the government suspended a controversial...
13 June 2019
Tesco keeps head above water and Majestic Wine nears major turning point“Global markets struggled to find direction on Thursday with European shares rising and Asian shares falling,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 advanced 0.2% to 7,385 thanks to strength among miners and construction stocks.
“Blue chip stocks falling as a result of trading without the rights to their latest dividend...
12 June 2019
Halma shows how it is done with fortieth consecutive dividend increase"It might not be a household name although a record of 40 consecutive increases of more than 5% in Halma’s annual dividend suggests that it should be, especially as this track record means the FTSE 100 firm is a good example of how a company that gets the basics right can reward patient investors," says Russ Mould, AJ Bell Investment Director.
"The...
12 June 2019
Pendragon’s car crash update, outsider to lead Reckitt and Boohoo to benefit from summer rain“It was good while it lasted – sadly the global market rally has run out of steam and stocks are flashing red again. US President Donald Trump continues to play hardball with China over trade talks which has dashed investors’ hopes of an amicable resolution,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 fell 0.4% to 7,371 with...
10 June 2019
Ferguson soaked and Gleeson joins list of housebuilder pay spats“Markets were generally in a good mood on Monday after US President Donald Trump backed off from a tariff war with Mexico,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 extended last Friday’s rally with another 0.5% gain to 7,372 thanks to strength among mining stocks and tobacco manufacturers.
“Markets were also strong across...
7 June 2019
Woodford fund suspension: what you need to knowIt was the investing news that launched a thousand headlines. On Monday, the struggling Woodford Equity Income Fund suspended its trading. How did it happen? What happens now? And as a customer of AJ Bell Youinvest, what should you know that perhaps hasn’t been covered elsewhere?
Why the fund was suspendedThe Woodford Equity Income Fund has been...
7 June 2019
Games Workshop hits on the right formula and Somero’s profit warning out of management control“The FTSE 100 was back above the 7,300 level on Friday as investors flocked to snap up big names with lots of dollar-denominated earnings including British American Tobacco, Evraz, Ashtead and Ferguson,” says Russ Mould, Investment Director at AJ Bell.
“A rebound in oil prices also gave support to the blue chip index, pushing up shares in BP and...
6 June 2019
Auto Trader motors on and Go-Ahead surprises“A 0.4% rise in the FTSE 100 should bring a sigh of relief from investors as markets find a sense of stability following a recent bout of weakness,” says Russ Mould, Investment Director at AJ Bell.
“Heading the blue chip risers was Aviva which issued a strategic update outlining plans to make the business simpler, more competitive and more...
5 June 2019
Card Factory confounds the doubters with solid first-quarter salesRoyal Mail’s dividend cut shows that the former FTSE 100 member is finding life pretty tough in the digital age, as letter volumes keep declining faster than expected, and you could be forgiven that retailers of greetings cards would be in similarly dire straits. But Card Factory’s first-quarter trading update shows sales growth of 2.3% on a like...
5 June 2019
Card Factory still surviving high street blues and Hurricane Energy flies the flag for UK oil and gas“Disappointing Chinese services data failed to knock the FTSE off track, with the blue chip index rising 0.2% to 7,225 in early trading on Wednesday," says Russ Mould, Investment Director at AJ Bell.
“Natural resources companies were understandably weak as commodities demand is highly leveraged to economic data releases from China. For example, Rio...
4 June 2019
Shell’s update fails to ignite markets and losses mount at AO World Royal Dutch Shell“ Royal Dutch Shell’s strategy update including the potential to return $125 billion through dividends and share buybacks between 2021 and 2025 failed to provide the energy required to boost the FTSE 100. As the index’s biggest constituent, Shell’s share price has a major influence on the direction of the UK market. Sadly its 1.4%...
3 June 2019
Markets in bad mood as Trump visits the UK, and Kier crashes on profit warning“Markets remain in a bad mood as Tariff Man arrives on UK soil, with the FTSE 100 extending last week’s losses by falling a further 1.1% to 7,085. “Donald Trump’s state visit includes a business breakfast on Tuesday which leaders from numerous FTSE 100 companies are expected to attend, giving them the opportunity to interact with the US President...
31 May 2019
Wizz Air reports record profit, and Legal & General exits general insurance“President Trump’s decision to open another front in his trade wars, with a plan to slap tariffs on Mexico, put the markets back under pressure with the FTSE 100 sliding back below the 7,200 mark,” says AJ Bell Investment Director Russ Mould.
“Overnight, ride-hailing app Uber posted a $1bn loss – though in a ‘through the looking glass’ like...
30 May 2019
FirstGroup takes a narrower road, Daily Mail’s advertising boost and De La Rue an analogue stock in a digital age“Despite several stocks trading without the right to their dividends and continuing jitters over US and China trade relations the FTSE 100 managed to recover a bit of ground on Wednesday after a sharp sell-off,” says AJ Bell Investment Director Russ Mould.
“Luxury timepiece seller Watches of Switzerland makes its debut on the London market today...
29 May 2019
How investors can choose between the four options they have regarding the M&S rights issueLast week’s underwhelming set of full-year results and the possibility that next week’s reshuffle will relegate the company from the FTSE 100 for the first time ever means that Marks & Spencer will be hoping that its proposed £600 million rights issue goes as smoothly as possible. Investors now have four options available to them as they assess...
29 May 2019
FTSE falls amid renewed trade fears and Stobart takes off“The FTSE 100 started firmly on the back foot on Wednesday, taking its cue from weakness in Asia overnight as China appeared to reheat tensions over trade with the US. Sterling was also under pressure as jockeying in the Conservative leadership battle continued,” says AJ Bell Investment Director Russ Mould.
Stobart“Southend Airport owner Stobart...
24 May 2019
Change in Prime Minister unlikely to ignite stock marketThe FTSE All-Share is up today, as investors weigh up the prospect of a new Prime Minister and hope for greater domestic political stability. However, history suggests it takes more than a new incumbent in 10 Downing Street to really get the stock market going.
Since the inception of the FTSE All-Share in 1964, three Prime Ministers have taken...
24 May 2019
FTSE enjoys recovery and Mothercare’s baby steps to recovery“The markets are in rebound mode after yesterday’s heavy selling", says AJ Bell Investment Director Russ Mould.
"The lack of any further bad news on global trade sees resources stocks rise alongside shares with Asian exposure.
"The FTSE 100 was up 0.6% as sterling remains volatile as rumours swirl of Theresa May’s imminent departure from Number 10...
23 May 2019
Merlin’s less-than-thrilling ride, and Serco makes waves overseas"The markets are not a pretty sight on Thursday with stocks flashing red across the UK, Europe and parts of Asia," says Russ Mould, Investment Director at AJ Bell.
"Investors are spooked by how relations between the US and China seem to be deteriorating, spurred by the US putting Huawei Technologies on a trade blacklist.
"The FTSE 100 fell 0.6% to...
22 May 2019
Royal Mail becomes the next company where the dividend really was “too good to be true”“ Marks & Spencer and SSE at least flagged their dividend cuts well in advance but Vodafone didn’t and neither did Royal Mail, whose relegation from the FTSE 100 last December and profit warning in January has now been followed by a big cut to its shareholder pay-out,” says Russ Mould, AJ Bell Investment Director.
“Royal Mail will increase its...
22 May 2019
SSE’s annual dividend growth streak comes to an end as utility plans major structural overhaul“ Vodafone ended its dividend growth streak with a cut and now SSE has done the same, meaning that just 26 FTSE 100 firms have managed to increase their annual shareholder distribution every year for the last decade, including Burberry, which joined this exclusive club just last week,” says Russ Mould, AJ Bell Investment Director.
“SSE’s annual...
22 May 2019
Tesla’s bonds tell you what the market really thinks of the company’s prospects (and it’s not good)“While Monday’s collapse in the price of Thomas Cook’s bonds was catching most investors’ attention, the traded loans of another voracious cash-consumer were also sliding ever lower – electric car and solar power specialist Tesla,” says Russ Mould, AJ Bell Investment Director.
“The $1.8 billion traded loan that pays an annual coupon of 5.3% - and...
22 May 2019
Marks & Spencer's endless turnaround and a pat on the head for Pets at Home“Taking its cue from a strong showing on Wall Street and a rapid reversal of sterling’s initial gains in response to Theresa May’s ‘bold’ new Brexit plan overnight, the FTSE 100 is 0.25% higher at 7,347.19. Royal Mail becomes the latest UK stock to cut its dividend, but the market responds positively. This news had been expected in the post for...
21 May 2019
WH Smith’s CEO heads for the door and Tesco Bank seeks to exit the UK mortgage market“The financial sector gave a welcome lift to the FTSE 100 on Tuesday with notable gains from Standard Chartered, Lloyds, Prudential and Barclays,” says Russ Mould, Investment Director at AJ Bell.
“The FTSE 100 advanced 0.3% to 7,331 with similar gains seen in the UK mid-cap FTSE 250 which jumped to 19,395".
WH Smith“It is time to say farewell to...
20 May 2019
Oil prices lift FTSE and Ryanair is in a tailspin“Oil prices are rallying once again and are taking commodity producers along for the ride," says Russ Mould, Investment Director at AJ Bell.
“A 1.3% rise in Brent Crude to $73.18 is positive for two London-listed stocks which sit among the largest constituents of the FTSE 100, helping to explain why the blue chip index nudged ahead on Monday.
“...
17 May 2019
EasyJet takes off despite loss, and Just Eat hit by curse of Amazon“Boris Johnson’s pitch for the Tory leadership isn’t going down too well with markets as sterling falls amid fears the news implied increased risk of a no deal Brexit,” says AJ Bell Investment Director Russ Mould.
“This helps insulate the FTSE 100 from larger falls in European markets. The subdued sentiment influenced by a weak showing for Chinese...
16 May 2019
National Grid profit dims and Thomas Cook books £1.5bn loss“As worries over US-China trade bubble away in the background the FTSE 100 was always likely to struggle to make much progress on Thursday and when you factor in a number of index heavyweights trading ex-dividend then it was no surprise to see the index down 0.3% at the open,” says AJ Bell Investment Director Russ Mould.
National Grid“These...
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...