18 August 2022
Inflation takes a record-breaking bite out of wagesAnother month, another chance for inflation to nibble away at the nation’s pay-packets. Whilst wages are rising, they’re no match for red hot prices and in real terms people’s regular pay fell by 3% in the three months between April and June.
Once again people working in the private sector fared far better than those employed by the public sector...
18 August 2022
FTSE dragged down as several stocks go ex-dividend, Made.com faces emergency fundraise, and AO shares jump“After yesterday’s UK inflation figure shock, it’s no wonder investors weren’t feeling too hungry for equities on Thursday. European markets didn’t want to get out of bed, with minimal movements across the main indices,” says Danni Hewson, Financial Analyst at AJ Bell.
“The FTSE 100 was dragged down by some big names trading without the rights to...
17 August 2022
FTSE flat on inflation reading, Persimmon suffers labour shortages and Boohoo buys stake in Revolution Beauty“The FTSE 100 was flat on Wednesday as UK inflation came in higher than expected,” says AJ Bell financial analyst Danni Hewson.
“Unlike the US, where there is evidence surging prices have started to peak, inflationary pressures look pretty entrenched in the UK with further increases in energy prices still to come.
“The inflation reading will only...
16 August 2022
BHP posts bumper profit, Ted Baker and Darktrace takeover news, Watches of Switzerland customers keep spending and FTSE higher despite signs of economic turmoil“The FTSE 100 enjoyed steady gains despite continuing signs of economic turmoil in the UK,” says AJ Bell Financial Analyst Danni Hewson.
“In a sign of the weaker backdrop, the number of job vacancies fell for the first time in two years, although it is not a clear picture, with serious issues filling roles in certain sectors.
“This makes life...
15 August 2022
FTSE higher, Rightmove flags fall in house prices, weak Chinese data hits miners and Joules hires new boss“Signs that some of the inflationary pressures in the economy may be easing continue to drive gains for stocks, with the FTSE 100 higher on Monday,” says AJ Bell Financial Analyst, Danni Hewson.
“While in global terms surging prices may be starting to ease, spiralling energy costs in the UK mean it could take longer to get over the peak of...
12 August 2022
Billions wiped off the value of GSK, Haleon & Sanofi, Flutter shares jump as customers keep betting and markets enjoy that Friday feeling“Many people consider healthcare companies to be saviours of the world, with their products helping to ease the pain of countless individuals. What’s often forgotten is when something goes wrong with one of their products, the fallout can be catastrophic,” says Danni Hewson, Financial Analyst at AJ Bell.
“Fears of a multi-billion-dollar lawsuit...
11 August 2022
UK stocks lag Europe & US, Disney subscriber numbers surpass Netflix, Entain expands again and Haleon continues to fall“The pleasant surprise on inflation figures across the pond gave US stocks a welcome lift and this positive sentiment extended to Europe on Thursday, except the UK,” says Danni Hewson, Financial Analyst at AJ Bell.
“The FTSE 100 was flat at the market open, with dollar weakness weighing on the large number of UK stocks which earn revenue in that...
10 August 2022
Tesla shareholders left in a spin, Deliveroo beats estimates, TUI remains resolute and Admiral sees profits drop“ Tesla shareholders may well be seething at Elon Musk’s latest share sale, no doubt arguing they didn’t sign up to such erratic behaviour. To be fair, they have every right to be furious,” says Danni Hewson, Financial Analyst at AJ Bell.
“Musk may argue it is better to have the readies at hand in case he needs to cough up for Twitter.
“If he...
9 August 2022
FTSE 100 flat as Abrdn and IWG see shares fall, while markets anticipate drop in US inflation figure“It was a muted session for European equities on Tuesday morning, with the FTSE 100 flat and the Dax slipping 0.4%,” says Danni Hewson, Financial Analyst at AJ Bell.
“Oil holding firm around $96 per barrel helped to lift shares in Shell and BP, while HSBC and AstraZeneca stock was also in demand. Alas, these gains were offset by a setback at asset...
8 August 2022
FTSE summer rally continues, Next eyes Joules stake, and BHP's offer for OZ Minerals marks return to big acquisitions“The summer is supposed to be a quiet time for markets as many people are sitting on the beach, rather than glued to a screen trading stocks and shares. So far, this summer is proving to be a decent session, and one that will provide a nice surprise when people get back to their desks after a bit of sun, sand and sea,” says Danni Hewson, AJ Bell...
5 August 2022
FTSE 100 lower, house price pressure looms, WPP down despite solid numbers, and Pets at Home enjoys resilient demand“After yesterday’s shocking assessment of the UK economy from the Bank of England, the FTSE 100 was down modestly this morning,” says AJ Bell Investment Director Russ Mould.
“Actually the resulting weakness in the pound is not a bad thing for the index as it flatters the relative value of its dominant overseas earnings.
“That is balanced out this...
4 August 2022
BP's bumper profits and a buyback bonanza for the FTSE 100The debate over the rights and wrongs of BP’s bumper profits will run and run but, from the narrow perspective of investment, the oil major’s latest share buyback means FTSE 100 members are on track to return record amounts of cash to their shareholders in 2022.
A forecast aggregate dividend pay-out of £85 billion almost matches 2018’s peak of £85...
4 August 2022
A strong Q2 for US earnings but what does the future hold?“The US economy may technically be in recession, after two straight quarterly drops in GDP, but corporate America seems to be coping well enough,” says AJ Bell Investment Director Russ Mould.
“According to research from S&P Global, 278 members of the S&P 500 index have already reported earnings. Of those, 209 have beaten earnings forecasts and...
4 August 2022
FTSE 100 dips ahead of rates decision, Next enjoys summer weather boost, and Rolls-Royce sputters“The FTSE 100 dipped ahead of a Bank of England meeting where it is expected to introduce a 50 basis point hike in rates,” says AJ Bell Investment Director Russ Mould.
“Attention is likely to be focused on the surrounding commentary and any signals it provides about inflation expectations and the trajectory of interest rates for the remainder of...
3 August 2022
HSBC ends reporting season for Big Five FTSE 100 banks in styleThe combination of rising interest rates - and therefore improving net interest margins – alongside cost control and low expectations means that HSBC’s second-quarter results are pleasing investors and adding a final polish on reporting season from the Big Five FTSE 100 banks.
Profits and cash returns have either met or beaten forecasts, and only...
3 August 2022
Taiwan trip tension rattles markets and Taylor Wimpey's first half results impress“Investors already have more than enough on their plate. Now they find themselves having to make room for one more worry, as tensions build between the US and China,” says AJ Bell Investment Director Russ Mould.
“After several trade spats during the Trump administration, things had largely calmed down under his successor. But Nancy Pelosi’s visit...
2 August 2022
Greggs delivers the goods, BP records bumper profits and FTSE in 'consolidation mode'“The FTSE 100 was in consolidation mode on Tuesday morning, trading broadly flat but avoiding the falls seen in Asia overnight,” says AJ Bell Investment Director Russ Mould.
“As if the market needed something new to worry about, there is now renewed concern about relations between the USA and China as Nancy Pelosi is primed for a visit to Taiwan....
1 August 2022
Strong results help FTSE move higher, HSBC resists break up call & pledges quarterly dividend and publisher Pearson profits“The FTSE 100 started the week higher following some relatively positive corporate updates, notably from index heavyweight HSBC,” says AJ Bell Investment Director Russ Mould.
“Education publishing specialist Pearson was among the winners on Monday as it stuck with full year guidance and reported a significant increase in profit following stronger...
29 July 2022
BA owner makes first profit since pandemic, and Apple and Amazon beat expectations“The FTSE 100 continued to grind upwards on Friday morning, putting it on course to end a pivotal week in positive territory,” says AJ Bell investment director Russ Mould.
“With many of the big US names reporting this week and the Federal Reserve delivering its latest decision on rates this always felt like a make or break week and fragile markets...
28 July 2022
Unilever's brand power helps it push through hefty price rises to consumersCompanies with strong brands are often seen by investors as a good hedge against inflation, because those brands command customer loyalty and sticky customers are more likely to pay up for the products and names they cherish.
Unilever’s first-half results go a long way to supporting that theory, because profits are up despite input cost increases...
28 July 2022
Barclays suffers from US debacle, Shell sees profits soar and Fed commentary does markets a favour“On a super Thursday for corporate results the FTSE 100 made solid progress in early trading as the US Federal Reserve helped give global markets a boost overnight,” says AJ Bell Investment Director Russ Mould.
“It wasn’t so much what the Fed did, since a 75 basis point increase in rates was widely expected, as what it said in noting that some...
27 July 2022
Walmart issues profit warning as it suffers from inflation, excess stock and pressure on consumer spendingWhen one of the world’s largest retailers dishes out a profit warning, investors really need to pay attention and Monday’s trading alert from Walmart offers evidence of three trends to ponder.
And all three may prove just to be just as important on this side of the Atlantic, so anyone with shares in leading UK-based and UK-listed retailers has some...
27 July 2022
Lloyds lifts dividend and profit guidance as it beats expectations“An increase in the first-half dividend, improved profit guidance for the year and very modest loan losses and litigation costs are all giving shares in Lloyds a boost, especially as a much gloomier outlook was already priced in,” says AJ Bell Investment Director Russ Mould.
“The shares trade at a one-fifth discount to the 54.2p tangible book...
27 July 2022
FTSE nudges higher ahead of Fed decision, Lloyds & Reckitt smash expectations, and Microsoft & Apple not as bad as some feared“The FTSE 100 was higher on Wednesday morning, buoyed by some positive corporate results and news from the US overnight as Microsoft and Alphabet reported numbers which were not as bad as some may have feared,” says AJ Bell Investment Director Russ Mould.
“US stocks had fallen ahead of the tech giants’ earnings thanks to Walmart’s profit warning...
26 July 2022
FTSE up as US big hitters poised to report today, Unilever feels the Nelson Peltz effect, and Easyjet hit by travel chaos“The FTSE 100 made some modest progress on Tuesday morning as earnings reports on both sides of the Atlantic turn from a trickle to a flood,” says AJ Bell Investment Director Russ Mould.
“Some really big hitters report in the US later today, including Coca-Cola, McDonalds as well as Microsoft and Alphabet.
“These could really define an earnings...