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Can the UK's banks weather the coronavirus storm?
Thursday 23 Apr 2020Since the start of the year, the banks have been one of the worst performing sectors in the FTSE 350 index, losing over 40% along with oil services and travel and leisure. It’s been a similar story in Europe and the US, which suggests that investors across the globe are concerned about banks’...
Promising signs as Next gets back to business
Thursday 16 Apr 2020The ‘very limited’ re-opening of clothing and homewares retailer Next’s ( NXT ) online operations (14 Apr) shows businesses’ emergence from the coronavirus-enforced shutdown is likely to be a gradual process. Next’s phased reintroduction of its online operations shows that the recovery will happen...
£2bn raised by London-listed companies in race for cash
Thursday 16 Apr 2020Approximately £2bn has now been raised by 63 London-listed companies since the start of March as businesses race to strengthen their finances during the coronavirus crisis. Of these, 34 companies have each raised £5m or more, nearly all at a discount to the market price before the fundraising was...
What will the coronavirus crisis mean for the defence sector?
Thursday 16 Apr 2020On 19 March NATO secretary general Jens Stollenberg made a plea for allies to maintain defence spending despite the significant economic costs associated with the coronavirus crisis. The simple fact he was even making this statement reflects a genuine fear that expenditure in this area will be cut...
£1.6bn fundraising frenzy: companies tap markets to ensure their survival
Thursday 09 Apr 2020Against a backcloth of unprecedented dividend and buyback suspensions and director pay cuts, an increasing number of companies are raising money as the global lockdown squeezes finances. Since the start of March, companies spanning an array of sectors have tapped markets for more than £1.6bn of...
UK industrials ‘unlikely’ to breach debt covenants
Thursday 09 Apr 2020Banking covenants across the hard hit engineering and industrials sectors are unlikely to be breached, according to analysis by investment bank Berenberg, even for the most levered businesses. ‘We believe these companies are very well placed,’ it says, referring to the likes of FTSE 100 firm Halma...
Trading platforms see surge in demand amid market volatility
Thursday 09 Apr 2020Market volatility is rarely good news for investors but it has been a significant positive for trading platforms as the latest updates from Plus500 ( PLUS ) and CMC Markets ( CMCX ) demonstrate. Big swings in markets create more opportunities to make short-term profit even if this comes with...
Market’s attention turns to exit strategy
Thursday 09 Apr 2020As we write the FTSE 100 has reclaimed the 5,700 mantle as it continues to bounce back from the damage wrought by the coronavirus crisis. The key factor behind the rally appears to be some evidence that countries in Europe are beginning to ‘flatten the curve’ of infections and deaths. Often the...
UK Treasury reported to be considering strategic companies bailout
Thursday 09 Apr 2020Having already committed to £330bn of funding, equivalent to 2.3% of GDP, to help businesses get through the current coronavirus lockdown, the UK Treasury may be making contingency plans to inject vital funds in companies most threatened by the crisis, according to The Telegraph. The focus would be...
Times are hard for value fund managers
Thursday 09 Apr 2020Fund manager Mark Barnett has been removed from investment trust Perpetual Income and Growth ( PLI ) . His strategy, picking under-priced stocks seemingly trading at less than their intrinsic value, has been out of favour for years, and the board at PLI cited prolonged underperformance in their...