1673337124
The FTSE 100 is set for a weaker start, US markets lower
The FTSE 100 index is up 3.5% so far this year as European bourses benefit from signs of easing inflationary pressures and a recovery in London-listed commodity shares following of the relaxation of Covid restrictions in China.
The front line closed last night at its highest level in more than three years, a position in stark contrast to the disappointing start to the year for Wall Street markets.
The FTSE 100 is up more than 10% since October, while Germany’s Dax index is in bullish territory after rising more than 20%.
Michael Hewson, chief market analyst at CMC Markets, said this morning: “These gains look even more counterintuitive when you consider that they are against a backdrop of a gloomy consensus when it comes to the economy global
“Perhaps it is these concerns that lead investors to believe that this outcome will force central banks to call time on their current rate hike policy and begin cutting before the end of the year.”
Hewson expects the FTSE 100 to open 42 points lower at 7683 as traders react to yesterday’s weaker end for US markets.
1673337044
Terry Smith gets off the hook as markets wobble
Star City fund manager Terry Smith issued a mea culpa today as he admitted his stock-picking skills have been found wanting.
In his 13th annual letter to investors of the £25bn Fundsmith Equity Fund, he noted that the fund is up 299% since it started in November 2010.
But it fell 13.8% in the year to December 2022, a sign of how rocky markets were.
This fall is worse than the 7.8% fall in the MSCI World Index and much worse than the FTSE 100 over the same period.
Smith writes, “While a period of underperformance is never welcome, it is inevitable. We have consistently cautioned that no investment strategy will outperform in every reporting period and in every type of market condition. So, as much as we don’t like it, we can expect some periods of underperformance.”
He added: “Underperforming the MSCI World Index is one problem, posting a fall in value is another. By 2022, unless you restricted your equity investments in the energy sector, you will almost certainly have seen a fall of value”.
Smith is far from the only big city stock picker to find life tough lately.
His rival Nick Train of Lindsell Train has also suffered a prolonged period of underperformance.
Smith’s personal wealth is £300m according to the Sunday Times Rich List.
He is a great investor is the fund and is sometimes called the UK’s Warren Buffett due to similar investment styles and an equally concise manner with words.
1673336918
Card Factory raises profit forecasts as Christmas card remains alive and well during postal strike
High street shoppers kept the Christmas card alive even during a festive season with postal strikes, helping Card Factory become the latest retailer to raise its profit forecasts.
The 1,000-store chain now expects full-year revenue of at least £106m, up from consensus forecasts of £96m, as customers returned to the high street free from the restrictions of the Covid era that affected the previous one. Christmas
Demand for its value-for-money Christmas range was strong for both cards and gifts and the company said it managed inflationary pressure.
The postal strike affected online sales, which fell more than 27% year-on-year. Total sales for the 11 months to December 31 were almost £433m, down from £337m.
1673336749
Microsoft in Talks for $10B Investment in ChatGPT Owner, Reportedly
Microsoft is in talks to commit up to $10bn (£8.2bn) to ChatGPT owner OpenAI as the tech giants race to boost their artificial intelligence capability amid a surge in interest in technology.
The investment would include other investors, news site Semafor reports, and would value OpenAI at $29 billion, with a document issued to investors weeks ago and a target date to close the deal set for late 2022.
Founded in 2015, artificial intelligence research center OpenAI was created by a group of billionaire tech entrepreneurs including Elon Musk and Peter Thiel and received a $1 billion investment from Microsoft in 2019.
1673336152
AO World raises profit guidance amid new strategy
AO World’s turnaround strategy is off to a strong start after the online electricity business today raised guidance for the year to March.
It said the plan announced in November to cut costs and improve margins was gaining traction, meaning earnings would be between £30m and £40m instead of the previous estimate of less than £30m .
In an unscheduled update, AO World said revenue was 17% lower than last year but in line with expectations.
He added: “We remain cautiously optimistic while mindful of continued macroeconomic uncertainty and a tough consumer environment.”
1673336068
Crypto trading app Tap Global among the first public listings in London in 2023
London’s Aquis stock exchange is set to welcome its first new member of 2023 today with the listing of crypto trading app Tap Global.
Following shareholder approval for the reverse takeover by decentralized finance investor Quetzal, the company, which is regulated in Gibraltar, plans to raise £3.1m in capital to value it at 30 million pounds when it goes public.
Founded by 29-year-old former software developer Arsen Torosian and prepaid card business veteran Dave Carr, Tap allows users to trade digital currencies by connecting them to a number of crypto exchanges through its app and offers the your own Mastercard to pay for online purchases. using Bitcoin.
read more here
1673335965
Top sales rise at Games Workshop, but warehouse delays cause profits to fall
Games Workshop’s headline sales rose 11% to more than £200m for the first time in the six months to November 2022, the company said today, but rising costs and delays in the The opening of new warehouses helped profits fall 5% to £84m.
The Warhammer picture maker said total storage costs have risen by between £2.5m and £12.2m over the period amid rising costs of consumables and utilities.
Head Kevin Rountree said: “Storage projects in North America and the UK have progressed, albeit more slowly than expected, largely due to the complexity of tightly integrating new technology with legacy systems from Games Workshop.
“However, we remain confident in our technology and equipment choices.”