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...
24 April 2019
Boohoo and Primark show retail isn't dead and AB Dynamics motors on“Having last night hit a six-month high, the FTSE 100 took a small step back on Wednesday, falling 0.3% to 7,501. Key detractors were mining, oil and insurance companies.
“Asian shares were also weak amid chatter that investors had started to worry about the Chinese government slowing the pace of monetary and fiscal support following a stronger...
23 April 2019
Three numbers that will help to make or break the Big Five banks’ first-quarter profitsThe FTSE 100 is up by just 1% over the past 12 months but that still beats what the Big Five banks have achieved, with Lloyds the best of them, down 1%, and Barclays the worst, with a 23% drop. That raises the stakes for the first-quarter reporting season, which begins with Barclays on Thursday 25th, especially after the results served up by the US...
18 April 2019
Satisfactory start for new Unilever CEO and Moneysupermarket compares very well“The UK market struggled to find direction ahead of the Easter weekend with the FTSE 100 flat at 7,470. Consumer goods giant Unilever and tobacco manufacturer Imperial Brands did their best to lift the blue chip index but they battled weakness in household goods specialist Reckitt Benckiser and miner Glencore.
“The next wave of the corporate...
17 April 2019
Bunzl's growth fears and Pendragon hit by margin pressure“One would have thought that better than expected economic growth in China would give the FTSE 100 a lift given the presence of many commodity producers in the index who sell to that country.
“However, the FTSE slipped 0.2% to 7,457 because investors got the jitters over BHP following Rio Tinto in cutting its guidance for iron ore production...
16 April 2019
JD Sports’ winning formula and Galliford Try issues profit warning“The FTSE 100 should today close at a record high for 2019 if it can sustain the momentum seen in early trading on Tuesday. Propping up the index are various blue chip companies which have large US dollar earnings including InterContinental Hotels, Ashtead and Antofagasta as the US dollar has increased by 0.2% against the pound,” says Russ Mould...
15 April 2019
Best and worst performing retail stocks, and IWG strikes Japanese deal High street spending figures: British Retail Consortium“An improvement in high street footfall during March is a bit misleading as the figures are skewed by the comparative period last year being very weak," says Russ Mould, Investment Director at AJ Bell.
“The big takeaway from the BRC figures is the fact that higher footfall hasn’t translated...
12 April 2019
CMA hit for Rentokil and Games Workshop back on (table) top“Though there has been some volatility along the way, for the most part the FTSE 100 has been running to stand still this week, with the index flat on Friday morning and on course to close the week a smidge lower.
“Trading platform Plus500 was a notable faller in London, down more than 40% at one stage as its first quarter revenue collapsed,” says...
11 April 2019
WH Smith is a travel junkie and Ted Baker looks to move on“The FTSE 100 fell back as several stocks traded ex-dividend and after sterling largely shrugged off the Brexit extension agreed by the EU overnight.
“A new Halloween deadline likely seen as can kicking rather than really providing space for a coherent Brexit strategy to emerge.
“Airline shares traded higher on relief that at least a no-deal exit...
10 April 2019
ASOS’s profit disappears and Tesco boss delivers the goods“The FTSE 100 took a breather on Wednesday as investors await the next updates from the European Central Bank and the US Federal Reserve.
“ Vodafone was among the key risers on the UK blue chip index, with Reckitt Benckiser heading the fallers.
“Asian shares were down following new trade tensions, albeit concentrated on the US and the EU, and the...
9 April 2019
Back to the day job for Mike Ashley at Sports Direct“Perhaps it is no wonder the markets are struggling for direction when investors have so many things to think about," says Russ Mould, Investment Director at AJ Bell
“Whether it is Brexit – where Theresa May is heading to Paris and Berlin to try and secure an orderly exit from the EU – or trade wars, with tensions between the US and EU beginning...
8 April 2019
Debenhams deadline looms for Ashley“Investors were in a cautious mood at the start of the new trading week with declines in some of the key stock markets around the world.
“In the UK, the FTSE 100 slipped 0.1% to 7,437 with gains from miners and insurers failing to offset weakness from housebuilders and pharmaceutical companies. Japan’s Nikkei index fell 0.2% as investors took...
5 April 2019
Trade talks update fails to excite, and Motorpoint is in the slow lane“An update on trade talks between the US and China failed to have any major influence on global stock markets.
“A deal is expected within the next four to six weeks, although investors remain cautious as reflected by very few markets rallying on the news.
“Only Shanghai’s SSE Composite Index made notable gains, up 0.9%. Other parts of Asia saw a...
4 April 2019
Saga admits failure and Homeserve is an export champion“The FTSE 100 takes a knock on Thursday, falling 0.6% to 7,377 amid a mixture of big names being weak such as Royal Dutch Shell and BP, and several large caps trading without the rights to their dividend including Lloyds Banking and Direct Line,” says Russ Mould, Investment Director at AJ Bell.
Saga“It should have been an easy ride for Saga, so...
3 April 2019
Stagecoach moves up a gear and AA continues to invest despite growing debts“Sterling made a small comeback on Wednesday morning, up 0.4% against the US dollar and gaining 0.3% against the euro, as the Brexit chaos rumbles on. That was good news for a host of UK-focused stocks including Royal Bank of Scotland, Taylor Wimpey and Sainsbury’s.
“Oil prices were also in fashion, nudging very close to $70 a barrel. However the...
2 April 2019
Bonmarché and YouGov“The latest Brexit setback has put another dent into sterling with the currency falling 0.5% against the dollar. This currency movement is positive for the FTSE 100 when you translate the large number of overseas earnings back into sterling. As such, it isn’t a surprise to see the blue chip index rise by 0.2% on Tuesday, helped by strength among...
1 April 2019
easyJet“Perhaps all the warnings about a slowdown in the global economy were premature. While it is a mistake to read too much into one or two pieces of economic data, the surprise news overnight that China’s manufacturing sector returned to growth in March certainly provides food for thought. "For one thing, it suggests the Chinese authorities’ efforts...
29 March 2019
AstraZeneca and TUI“Shanghai’s SSE Composite index jumped 3.2% on hopes that the US and China were making progress with trade talks. This optimism also gave a boost to the London-listed natural resources sector with mining shares topping the list of FTSE 100 risers. “Continued strength with oil prices also gave support to the FTSE with BP and Royal Dutch Shell up on...
28 March 2019
Dignity hit by CMA review and Johnson Matthey goes electric“Continued disagreement around Brexit isn’t doing any favours for sterling with the UK currency slipping 0.2% against the US dollar and down marginally against the euro on Thursday.
“But fortunately for investors, both the FTSE 100 and FTSE 250 managed to push ahead with tobacco, pharmaceutical and mining stocks in favour,” says Russ Mould...
27 March 2019
Sports Direct considers Debenhams bid and Bellway's building momentum“UK markets pushed forward on Wednesday with miners leading the FTSE 100 higher. Fresnillo, Evraz and Rio Tinto were the top sector performers.
“European Central Bank President Mario Draghi said the ECB was ready to further delay a planned interest rate hike if conditions in the eurozone deteriorated. European stock markets were largely unmoved on...
27 March 2019
Ferguson raises fears of US slowdown“Shares in plumbers’ merchant Ferguson are losing steam today after the company’s warning of a slowdown in second-half sales growth, which itself raises questions about the economic health of its largest target market – the USA,” says Russ Mould, AJ Bell Investment Director.
“Ferguson racked up organic sales growth of 6.5% for the first half, a...
26 March 2019
Fevertree Drinks spreads its wings and Ocado inks another international deal“UK investors sat on their hands on Tuesday with the FTSE 100 flat at 7,176. Asian stocks were livelier with Japan’s Nikkei 225 index jumping 2.15%, bouncing back from sharp falls at the start of the week.
“On the commodities front, Brent Crude oil and gold both nudged up 0.6% in value while natural gas prices slipped by 0.4%,” says Russ Mould...
25 March 2019
All change at the top for ConvaTec“The markets have got a real dose of the collywobbles. The weak PMI data in both Europe and the US last week contributed to fears of a global slowdown with bond markets also sounding the red alert," says AJ Bell Investment Director Russ Mould.
“History suggests an inverted yield curve happens in the run-up to a recession. Inversion means when the...
22 March 2019
Smiths Group and Pharmaceutical Stocks“Having enjoyed a strong finish on Thursday amid a big slide in sterling, the FTSE 100 is modestly lower on Friday as news that the immediate cliff edge for Brexit is being postponed drives a recovery rally in the currency.
“Regular observers of the equity markets may long for the day when they don’t also have to be on top of currencies but, with a...
21 March 2019
Renishaw profit warning puts global economy back under the microscope“With only 5% of its sales going to firms based in the UK and a wide-spread of client industries Renishaw has a good insight into what is going on globally and it is always worth listening whenever this high-quality company speaks. Today’s profit warning and forecast of lower annual profits will therefore be a worry for investors, especially as...
21 March 2019
Next and Renishaw“Investors gave a mixed reaction to news that the US Federal Reserve does not expect to raise interest rates for the rest of 2019. Parts of the US market traded lower with particular weakness among banking stocks which will lose out from no interest rate growth. “Asia and Europe struggled to find direction with most markets flashing small amounts...
20 March 2019
Kingfisher in a fix as DIY expert looks for a new boss“ Kingfisher’s failure to increase its dividend for a tenth year in a row – and join an elite club of just 26 current FTSE 100 members to have such a record – is the subtlest indication that its turnaround plan is not delivering. The decision to change not just its head of IT and also its chief executive is more of a giveaway, as is a change in how...
20 March 2019
Kingfisher and IQE“The FTSE 100 dips ahead of the US Federal Reserve’s latest policy decision and chatter that top US trade officials will head to China next week for new trade talks. The blue chip index is also weighed down by various big mining companies whose shares have been hit by a fall in iron ore prices. Vale has cleared a hurdle to restart production at one...
20 March 2019
FTSE 100 is off to a good start in 2019 as analysts forecast new peak for UK plc profits“The FTSE 100 is currently doing a good job of confounding the Cassandras, naysayers and pessimists with a capital gain of nearly 8% in 2019 to date, despite the ongoing uncertainty over global tariff and trade policies, Brexit and gathering concerns over the globe’s economic growth prospects, says Russ Mould, AJ Bell Investment Director.
“The...
19 March 2019
ASOS and Kier“Markets around the world were fairly steady on Tuesday as investors await updates later this week from the US Federal Reserve and, to a lesser extent, the Bank of England. A handful of retail and mining stocks helped to give the FTSE 100 a small lift, rising 0.1% to 7,308,” says Russ Mould, Investment Director at AJ Bell.
ASOS“Life remains tough...
18 March 2019
Worldpay and JD Sports“It’s a big week for the markets with policy decisions from both the US Federal Reserve and the Bank of England. We’re also likely to get some update on Brexit, meaning there are various significant factors hanging over the heads of investors.
“Markets remain calm despite this backdrop with both the FTSE 100 and FTSE 250 indices rising on Monday...
15 March 2019
Restaurant Group and JD Wetherspoon“The idea that Brexit could potentially be delayed has stirred up investor interest in UK stocks, as illustrated by the FTSE 250 rising 0.2% following the vote by MPs last night to ask the EU to push back the UK’s exit beyond the current 29 March departure date. The FTSE 100 was also in positive territory, rising 0.4% to 7,213.
“Housebuilders...
14 March 2019
Cineworld and Savills“The fact MPs voted to take no deal off the table may not have legal force, but the pound is certainly taking it as making that outcome less likely, consolidating overnight gains this morning.
“Having struggled for direction early on, the FTSE 100 traded slightly higher as investors digested the news,” says Russ Mould, Investment Director at AJ...
13 March 2019
Brexit-proofed funds for ISAsTuesday's defeat of Theresa May’s Brexit deal confirms investors continue to face a period of uncertainty as they approach the important tax year end deadline.
The latest fund sales data from the Investment Association showed that £506 million was withdrawn from funds held in ISAs during January, the ninth month of outflows in a row. Whilst it is...
13 March 2019
Standard Life Aberdeen and Morrisons“UK markets have shrugged off the latest Brexit setback with only a small dip in the domestic-focused FTSE 250 index. Sterling moved 0.5% higher against the euro and the US dollar. Investors remain relatively calm as they await the next vote in parliament.
“The flagship FTSE 100 slipped 0.1% with strength among oil producers and insurers offset by...
12 March 2019
Domino’s Pizza“The pound appears to be reflecting hopes that a (somewhat) revised offer from the EU at the 11th hour can smooth the passage of Theresa May’s Brexit deal through the House of Commons.
“The strong pound is putting pressure on the FTSE 100 as the relative value of overseas earnings takes a knock.
“The late-night drama in Strasbourg felt a bit...