|Day's range||7,094.98 - 7,188.59|
|52-week range||6,536.50 - 7,727.50|
I think that FTSE 100 (INDEXFTSE:UKX) shares offer stronger risk/reward ratios than gold and cash in the long run.
I think the FTSE 100 (INDEXFTSE:UKX) could offer a more appealing risk/reward ratio than Bitcoin to boost your retirement income prospects.
It’s a particularly busy week ahead. The markets will need to monitor updates from the G7 summit, chatter on trade, Brexit and the stats.
I think right now could be an opportune time to buy higher-yielding shares in the FTSE 100 (INDEXFTSE:UKX) instead of focusing your capital on other mainstream assets.
FTSE 100 (INDEXFTSE: UKX) shares could produce returns three times higher on average than the best fixed rate Cash ISA, according to Rupert Hargreaves.
I think that FTSE 100 (INDEXFTSE:UKX) stocks could offer lower risks and higher returns than buy-to-let investments.
(Bloomberg) -- Uninvestable. A lose-lose proposition. Avoid for now.While the jury is still out on whether British Prime Minister Boris Johnson will succeed in Brexit negotiations, strategists are pretty much unanimous in their calls to steer clear of U.K. equities. The likes of JPMorgan Chase & Co., UBS Wealth Management and Sanford C. Bernstein have written off U.K. shares from their investment playbooks until there’s more political clarity.For the benchmark FTSE 100 Index, whose cyclical shares are already suffering blows from trade war tensions in August, it could be a “lose-lose” situation, as JPMorgan puts it. If Johnson pulls off a miracle and seals a deal before the end of October, a rally in sterling would weigh on the exporter-heavy gauge. And if Britain exits without a deal, a worst-case scenario for most prognosticators, any positive impact of a weaker pound on the gauge’s exporters might quickly give way to a slump fueled by fears of an economic downturn.Earlier this week, French President Emmanuel Macron gave Johnson little hope he’s prepared to compromise on Brexit and said any changes to the current deal won’t be very significant. “There are simply better things to go and buy,” said Inigo Fraser Jenkins, head of global quantitative strategy at Bernstein. U.K. equities are “uninvestable,” and not cheap enough to make up for political risks that are hard to forecast, he said.Among global investors polled by Bank of America Corp. this month, 29% are underweight the U.K., more than in July. The survey also shows just how confused market players are about the timeline of Brexit’s resolution, with 28% of participants saying Britain is likely to leave the European Union on or before Oct. 31, and 21% expecting the nation to exit in November, December or in the first half of next year.“We believe it is not prudent to base investment decisions on a particular Brexit scenario,” said Willem Sels, a London-based chief market strategist at HSBC Private Bank. “Several potential outcomes exist, and the market’s assessment of the likelihood of these scenarios can continue to shift up and down.”Amid the widespread political uncertainty and shunning of U.K. stocks, BofA strategist Manish Kabra stands out as a lone bull.“The base case is the U.K. leaves with a deal,” he said by email. “We like U.K. stocks, mostly as the yield gap between equity and bonds has reached about 100-year wide levels."Indeed, the declines in the FTSE 100 have lifted its expected dividend yield to 5%, one of the world’s highest. This compares with a 0.6% yield on the generic 10-year U.K. government bond.Fast-money investors seem to be listening to BofA because the largest exchange-traded fund focused on U.K. stocks, the iShares Core FTSE 100 ETF, is poised for its biggest monthly inflow since January. Still, the benchmark index is heading for its worst monthly decline since 2015.The FTSE 100 Index and the more domestic-focused FTSE 250 Index are both down since Johnson won the Tory party’s vote to lead the country in late July, with the prime minister repeatedly urging the country to prepare for a no-deal outcome. The pound had its weakest close in decades earlier this month on concern an economic downturn would follow a chaotic exit from the EU.While the FTSE 100 has benefited from sterling’s weakness for the most part since the 2016 referendum, the inverse relationship could disappear in the case of a disorderly Brexit, with growth concerns outweighing any positive impact from a declining pound, according to JPMorgan’s Mislav Matejka. He has an underweight rating on U.K. stocks.While London & Capital Asset Management is ready to be opportunistic when there is political clarity, its head of equities Roger Jones said, “Investors should be discouraged from investing in the U.K. before a Brexit outcome as this is effectively wild speculation which will be dominated by political process or lack of it.”To contact the reporter on this story: Ksenia Galouchko in London at email@example.comTo contact the editors responsible for this story: Blaise Robinson at firstname.lastname@example.org, Namitha Jagadeesh, Celeste PerriFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Neil Woodford has raised at least 650 million pounds ($796 million) by selling listed assets held in his frozen flagship fund, as he prepares for a potential line of clients yanking their money when the fund reopens.The embattled stock picker shocked the financial world in early June by halting withdrawals from his LF Woodford Equity Income Fund after a run of poor results led to mounting redemption requests. He made the decision to buy time to sell down the fund’s holdings of lightly traded micro-, small- and mid-cap stocks that accounted for 97% its assets at the end of May, according to Morningstar data.Link Fund Solutions Ltd., administrator of Woodford’s flagship, said on Friday that the suspension will remain in place for at least another month, and that lifting it in December is “achievable.” The fund’s status is reviewed every 28 days.The fund has fallen by 11.2% since the suspension, compared with a 1.5% gain on its benchmark index, the FTSE All Share Total Return, according to Link.Stake SalesWoodford raised at least 300 million pounds in June by selling down stakes including those in BCA Marketplace, NewRiver REIT Plc and Oakley Capital Investments. Since then, his sales have included shares in Stobart Group, which focuses on aviation, energy and civil engineering, and Eurocell, a plastics manufacturer. He also reduced his stake in Crystal Amber Fund. Bloomberg’s calculation of the amount raised is based on public filings and market prices.A Woodford spokesman declined to comment on how much the fund has raised.Suspending redemptions is a rare step for any fund, let alone one, like Woodford’s, that allows clients to make regular withdrawals. Since announcing the freeze, he has lost key executives and long-time investors, has been hit by criticism from a top lawmaker and faces an investigation by the U.K. markets regulator. In response to Woodford’s woes, Bank of England Governor Mark Carney has said that funds offering daily liquidity while loading up on illiquid assets are “built on a lie.”Legal LimitIn another potential blow to Woodford, trading in shares of Eddie Stobart Logistics Plc was suspended on Friday pending clarification of the impact of some accounting issues. Woodford’s flagship fund owns about 22% of the company, according to Bloomberg data.Fresh concern has arisen recently about Woodford’s compliance with U.K. rules that limit how much open-ended funds like his can hold in unlisted securities. He breached the legal limit -- 10% of the value of the fund -- twice last year, and addressed this in part by having some securities listed on an exchange in Guernsey, according to the Financial Conduct Authority.Earlier this month, one of his holdings, Sabina Estates, was delisted from The International Stock Exchange, according to a statement on the TISE website. That followed the delisting in July of other stocks held by Woodford’s fund, including IH Holdings International Ltd. Unlisted holdings now account for more than 18% of the fund’s portfolio, according to Citywire.The net asset value of the listed Woodford Patient Capital Trust Plc was reduced on Friday by about 3.4 pence per share when Link lowered the valuation of the trust’s stake in IH Holdings.“We commenced the process of reducing the fund’s exposure to unquoted and less liquid assets in February,” the spokesman for Woodford said when asked about the delistings. “What you will see when the fund reopens is a portfolio with more FTSE 100 and FTSE 250 companies -- 80% of the proceeds from share sales since suspension have been reinvested in FTSE 100 stocks -- but still reflecting the same investment strategy.”(Updates with extension of fund suspension in third paragraph.)To contact the reporters on this story: Suzy Waite in London at email@example.com;Carla Canivete in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Shelley Robinson at email@example.com, Patrick Henry, Nishant KumarFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Looks like ECB chief Mario Draghi will have to deliver it this time with July minutes reassuring a package was coming and expectations running high from research houses at big banks predicting significant easing in September. In July, markets rallied on Draghi's dovish stance but pulled back sharply after his conference, when he said a rate cut was not discussed during that monetary policy meeting.
World stock markets and the dollar rose on Friday as investors looked to a speech by Federal Reserve chair Jerome Powell for clarification on whether the U.S. central bank remains on course to deliver another interest rate cut in next month. Britain's FTSE 100 index was up 0.71%. Powell is due to speak at 1400 GMT at a gathering of central bankers in Jackson Hole, Wyoming.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.In the month since Boris Johnson became the U.K.’s prime minister, the pound has taken a heavy beating from no-deal Brexit rhetoric and that’s had a significant impact on a few areas of the London stock market.Sterling has fallen around 2.2% against the dollar since Johnson walked into 10 Downing Street on July 24. One side effect of that has been to make U.K. assets cheaper to overseas suitors, as seen with Greene King Plc and Entertainment One Plc. It’s also increased the attractiveness of companies making their money outside the U.K., while sapping sentiment toward domestic-focused segments like homebuilders and property stocks.Johnson heads to the G-7 summit and breakfast with President Donald Trump this weekend where Brexit is likely to be a topic of fierce discussion. Here are some of the areas where the impact appears to have been felt most in the first month of Boris.Pubs and Peppa PigOn the face of it, British pubs should suffer from any talk of no deal and the resultant knock to consumer confidence that could entail. That is, unless there are potential suitors for those pub estates lurking in the background.Greene King shares rocketed this week after Hong Kong’s CK Asset agreed to buy it for 2.7 billion pounds ($3.3 billion). The move, likely driven in part by the pound depreciating significantly against the Hong Kong dollar in recent weeks, also boosted Greene King’s pub sector cohorts, including Marston’s Plc and Mitchells & Butlers Plc, as speculation became rife that other deals could follow. Particularly given that the Greene King deal came after EI Group Plc, another pub firm, got a $1.6 billion takeover bid in July.The weak pound also likely sweetened the appeal to U.S. toy firm Hasbro Inc. of making a $4 billion offer for Entertainment One, the TV and film producer behind the hugely successful “Peppa Pig” children’s series.ExportersGiven the inverse correlation of the pound to the FTSE 100 index, the fall in sterling is creating benefits for companies that make most of their money in other currencies. Among the best performers in the last month are the likes of catering giant Compass Group Plc, medical-equipment supplier Smith & Nephew Plc and pest-control firm Rentokil Initial Plc, all of which make most of their money in dollars.Note another example in Victrex Plc, a chemicals firm that makes polymers used in cellphones and cars. Barclays Plc analysts upgraded their rating on the stock this week as a weaker pound will be a “powerful mitigating force” for the company against headwinds in its end markets. A no-deal Brexit, therefore, could prove to be a positive.HomebuildersHousebuilders are one of the most sensitive sectors to Brexit, given the impact the uncertainty has had on house prices and consumer appetite to borrow and spend. Bellwethers like Persimmon Plc and Taylor Wimpey Plc have both underperformed the more domestically focused FTSE 250 index in the month since Johnson started, with the former down 5.8% and the latter 14%.First-half results from the sector were broadly in line with expectations, albeit with the ongoing challenge of higher build costs hitting margins. But no-deal rhetoric and uncertainty about what kind of Brexit will eventually happen isn’t helping. “The installation of Boris Johnson has increased the risk of a hard Brexit in general and that will feed through into a weaker performance for the stocks,” Davy analyst Colin Sheridan said by phone.Beach HolidaysThe weak pound might be a boon for inbound tourism to the U.K., but it’s weighing on travel companies selling holidays to Brits going abroad. Budget beach holiday firm On the Beach Group Plc has had a miserable month after warning last week that full-year profit will miss expectations due to sterling’s decline.Brexit and the falling pound are adding to wider international concerns for the sector, according to Bernstein analyst Richard Clarke. “There are stocks out there that certain investors will not touch while that overhang is continuing,” he said.Shopping MallsThe FTSE 350 REITS Index is down 3.6% since Johnson took charge, about the same as the broader gauge. But Brexit sensitivity is not born equal in property and the companies most impacted, namely shopping mall owners Intu Properties Plc and Hammerson Plc, are suffering.Intu is down 57% since Johnson was installed and Hammerson has slid 18%, both after results that disappointed analysts. The two face the twin headwinds of retailers going out of business as Brexit hits consumer confidence plus the threat of online shopping. The Brexit deadline falling less than two months before Christmas could also put more pressure on already struggling retailers and, ultimately on the direction of rents for mall owners, Bloomberg Intelligence’s Sue Munden said.BanksThe main U.K.-focused banks -- Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc, as well as smaller rivals CYBG Plc and Metro Bank Plc -- have all underperformed the Stoxx 600 Banks Index since Johnson became prime minister, as investors get jittery about the U.K.’s economic prospects.Lloyds and RBS, both key bellwethers for U.K. economic sentiment generally, have seen share prices fall more than downgrades to estimates would translate to, according to Macquarie analyst Robert Sage. That reflects the extra downside risks both face from the U.K.’s Brexit-bleakened outlook and until the overall climate improves, sentiment toward both is unlikely to brighten.\--With assistance from Sam Unsted.To contact the reporters on this story: Simon Foy in London at firstname.lastname@example.org;Ivan Edwards in London at email@example.comTo contact the editors responsible for this story: Beth Mellor at firstname.lastname@example.org, Paul JarvisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
London's main share index handed back its early gains to end lower on Friday after U.S. President Donald Trump's tweeted "order" that U.S. companies shut operations in China, which dragged internationally exposed miners and banks into the red. The FTSE 100 shed 0.5% after enjoying a recovery for most of the day, as a tweet from Trump about U.S.-China trade just minutes before the closing bell sharply raised concerns over international trade.
The transport and logistics firm is reviewing its accounting, suspending trading until it can reveal a likely downgrade to its earnings.
With pensioner poverty rates in the UK booming, you need to take serious steps to protect yourself. Royston Wild explains why the FTSE 100 (INDEXFTSE: UKX) could help you do just that.
The FTSE 100 shed 0.5% after enjoying a recovery for most of the day, as a tweet from Trump about U.S.-China trade just minutes before the closing bell sharply raised concerns over international trade. The FTSE 250 ended 0.2% higher. Oil majors Shell and BP were the worst hit after Trump said U.S. companies should "immediately start looking for an alternative to China", after Beijing officials earlier retaliated by imposing tariffs on $75 billion of U.S. goods.
In a surprise move Beijing imposed additional tariffs on thousands of U.S. products effective Sept. 1, infuriating Trump who hit back asking U.S. companies to start looking for alternatives to their China operations. "Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing ... your companies HOME and making your products in the USA," Trump said as part of a series of tweets.
European shares inched higher early on Friday, with all eyes on a speech by Federal Reserve Chief Jerome Powell for confirmation the the U.S. central bank is still on course to deliver another cut in interest rates next month. The highly-anticipated address at the Jackson Hole symposium is due at 1400 GMT and follows minutes from the Fed's July meeting which have cooled money market expectations of a bigger half-point cut next month. The pan-European STOXX 600 index rose 0.5% at 0710 GMT, rebounding from a fall on Thursday due to by mixed readings of business growth across major economies and as a jump in the pound slammed London stocks.
Spanish banks rise on bullish HSBC note * NMC Health soars 18% after investors backed by Fosun making bid for stake Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: email@example.com CLOSING SNAPSHOT: CHOPPY WATERS IN EUROPE (1558 GMT) News from Germany captured most of the market's attention today in an extremely choppy trading session - from PMI data to Merkel's comment on Brexit and a report the country's central bank is ruling out a need for stimulus measures just now, investors have traded on headlines.