magazine archive
magazine archive
Editor's View
Are the good times over for markets this year?
Thursday 29 Aug 2019Just how bad are the markets at the moment? While there are many negative headlines around weak economic growth, recession fears and volatile stock markets, equity performance figures have been far from disastrous. The FTSE All-Share is up 7.1% so far this year – in line with historical annual...
What could put markets in a sunnier mood?
Thursday 22 Aug 2019The prospect of financial stimulus in Germany and China has lifted the market mood a touch but there is still plenty of doom and gloom around about the prospects for equities. This is not unwarranted given the long list of risk factors being weighed at present. However, an interesting way to look...
When corporate debt becomes a problem
Thursday 15 Aug 2019The latest edition of the Link UK Debt Monitor shows corporate debt in the UK is at its highest level on record having expanded for an eighth consecutive year. To quote the report: ‘Net debt has now risen by three quarters since the low point reached in 2010/11, when companies were still adjusting...
How much does management matter?
Thursday 08 Aug 2019On 5 August HSBC ( HSBA ) chief executive John Flint became the 14th of his number in the FTSE 100 so far in 2019 to announce a departure, either immediately or at some point in the future. In some cases these exits are being driven by the executive involved, perhaps for personal reasons or because...
Takeovers aren’t always welcome
Thursday 01 Aug 2019Takeovers and mergers are dominating the headlines as companies make acquisitions to accelerate growth, foreign companies take advantage of a weak pound to buy UK businesses, and private equity firms put some of their spare cash to use. While this M&A frenzy has recently triggered some hefty...
Is appetite waning for property bonds?
Thursday 25 Jul 2019Property bonds can offer a high yield and tend to be secured against physical property assets, yet sentiment is weak towards most parts of the real estate market in the UK. The money put up by investors for property bonds is used to build properties with investors either getting their return when...
Thomas Cook investors in a spin as they brace for debt-for-equity pain
Thursday 18 Jul 2019Debt-for-equity swaps are rarely good news for shareholders despite potentially keeping the lights on in a business. That matters for anyone owning stock in holiday seller Thomas Cook ( TCG ) as they are now facing this situation and therefore need to understand what debt-for-equity really means...
Inheritance tax review questions AIM IHT perk
Thursday 11 Jul 2019Many people invest in certain types of AIM stocks for their inheritance tax (IHT) benefits, however an adviser to the UK Government has questioned whether the tax perk is still necessary. Withdrawing the IHT benefit could prompt many investors, including a large number of wealth managers, to sell...
Will the market’s good mood last?
Thursday 04 Jul 2019US President Donald Trump’s apparently constructive meeting with his Chinese counterpart Xi Jinping is setting a positive tone for the second half of 2019. As we write the FTSE 100 is back above 7,500 and in the US the S&P 500 hit a new record high and moved close to the 3,000 level. But just...
Don’t hitch a ride with newly-listed Trainline
Thursday 27 Jun 2019Train and bus ticket seller Trainline ( TRN ) is the latest ‘app’ or ‘platform’ business to see its shares soar upon making its stock market debut. Investors appear to be treating Trainline as if it is the latest in a long line of modern, disruptive companies. This could be a mistake. It isn’t a...