The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
More than 436,000 businesses were registered in the UK between January and June 2023, an increase of 8% from 2022.
""Britain’s market for small and medium sized stocks is shrinking rapidly, challenging London’s status as a international financial center, according to a UK investment bank.
Peel Hunt said a lack of initial public offerings, along with a flurry of takeovers by overseas and private equity firms, mean there are more companies leaving the UK market than joining it.
The trend is particularly pronounced for the FTSE Small Cap Index, which the bank said had lost 10 per cent of its members and 20 per cent of its market capitalisation this year.
Charles Hall, Peel Hunt’s head of research, wrote in a report: “We are currently in a doom loop, where valuations are low, liquidity is reducing, investors are seeing withdrawals and there is little desire to IPO.
“If this continues, the UK could lose a crucial part of its financial ecosystem.”
While Peel Hunt’s analysis focuses on Britain’s smaller companies, the bluechip FTSE 100 has also been suffering. London lost its status as Europe’s biggest stock market last November, extending an equity slump that stretched back to Britain’s vote to leave the European Union in 2016."
https://www.businesspost.ie/news/shrinking-uk-stock-market-is-in-adoom-loop-investment-bank-peel-hunt-says/
DYOR
Shrinking UK Stock Market Is In a ‘Doom Loop,’ Peel Hunt Says
FTSE Small Cap Index has lost 10% of its members this year. Firms are choosing US listings; M&A also depleting market.
DYOR
Falls more than expected to 2.9%..
Eurozone inflation has fallen more than economists expected after consumer prices rose 2.9 per cent in the year to October, the smallest increase since July 2021.
The reduction in inflation from 4.3 per cent for the year to September reflected falling energy prices and a drop in food inflation, according to Eurostat, the EU statistics arm. Economists polled by Reuters had expected eurozone inflation to be 3.1 per cent in October.
Core inflation, which excludes energy and food and is closely watched by the European Central Bank as a gauge of underlying price pressures, also fell more than expected to 4.2 per cent, down from 4.5 per cent the previous month.
Meanwhile, the eurozone economy shrank slightly in the three months to September, undershooting economists’ expectations after a contraction in Germany and Austria offset growth in Spain and France.
The 0.1 per cent downturn in the economies of the 20 countries that share the euro marked a reversal from upwardly revised growth of 0.2 per cent in the previous quarter. Economists polled by Reuters had forecast zero growth for the third quarter.
read more;
https://www.ft.com/content/03ac15ba-76f7-4e31-b835-f9c6e5e9402e
we are not in the EU so never mind eh...
DYOR
I would argue some banks are holding their own in the usa jp Morgan up 1.7 per cent year to date Lloyds and Barclays down about 14 per cent year to date of course tech stocks like apple Microsoft alphabet have rallied hard this year I just think sentiment is weak for UK stocks and has been since February/March when Lloyds traded above 50p for about 4 weeks until that improves people will just have to console themselves with the high dividends on offer
The Banks already pay extra tax 3% on top of CT = 28%
https://www.gov.uk/government/publications/amendments-to-the-surcharge-on-banking-companies/amendments-to-the-surcharge-on-banking-companies
Bank windfall tax
The banks will just shut up shop if that happens they will make it harder to borrow then see what state the country ends up in
The 2 wars are localised and won't spread elsewhere. Russia is never going to mess with a NATO country. Israel has nukes. Iran won't mess directly with them. China is not yet strong enough to take Taiwan. There won't be a 3rd war (for now).
Two things today are dragging down LLOY to 40p and have been for some time.
1. Banks remain out of fashion on Wall Street (due to low growth and no tech narrative).
2. UK bank windfall tax is an ongoing threat and the calls are getting louder.
Was just watching Jeremy Vine this morning on Ch5. Pretty much every talking head and caller on there was calling for a bank windfall tax and getting very shouty and angry about it. It's surely only a matter of time before the UK banks get walloped (again).
..on track for worst year since 2009.
The number of companies going bust this year is on track to be the highest since the depths of the financial crisis in 2009.
Insolvencies rose 10% from a year ago in the three months to the end of September, the latest official figures for England and Wales show.
There has also been a sharp rise in the number of firms at risk of going bust.
Firms in "critical financial distress" jumped 25% in the last three months, insolvency expert Begbies Traynor says.
They are defined as having county court judgments exceeding £5,000 against them - often a precursor to going under.
Dean Euden, a wine merchant from Cardiff, has already wound up his business. "I thought Covid would be the toughest time but actually the harder times came after," he said.
read more;
https://www.bbc.co.uk/news/business-67261798
DYOR
@ livestock
i would have thought with Business confidence this month reflects a more positive outlook
Lloyds would of had a better reaction to that news
It seems unwise to hold out at this price, in my opinion, especially when you consider the annual price swings ranging from 40p to 45p. For the sake of just a few pennies, you would be better off buying now and selling at either 43p or 45p, depending on the size of your investment.
Three Charts That Explain the UK Housing Market
Sales have collapsed, and it’s all about rising interest rates.
By John Stepek
https://www.bloomberg.com/news/newsletters/2023-10-30/three-charts-that-explain-the-uk-housing-market?leadSource=uverify%20wall
Hann-Ju Ho, Senior Economist Lloyds Bank Commercial Banking, said:
“Business confidence this month reflects a more positive outlook as we head into the important festive period, with trading prospects and economic optimism both at their second highest levels this year. The level also underlines the wider upward trend of steadily rising confidence in 2023. If you look at the year in quarterly time periods, confidence has steadily risen from 20% in the first quarter, 26% in the second and in September an average of 27% in the third.
“However, our data shows that firms are still safeguarding their profit margins in response to the possibility of interest rates remaining high, wage increase pressures, and the prospect of higher energy prices again this winter.
“Therefore, businesses will be keeping a keen eye on the forthcoming Autumn Statement and Bank of England policy announcements as they navigate through a challenging economic period ahead.”
31 October 2023
Business confidence rose to 39% in October, a three-point increase, to reach the second highest level in 2023–surpassed only in August (41%).
The confidence level this month is significantly above the long-term average of 28% and contrasts sharply with the Barometer reading of just 15% in October 2022, in the weeks af ter the mini-budget.
Businesses also reported increased trading prospects for the year ahead alongside greater optimism in the economy.
Firms’ trading prospects were up this month with 54% (up two points) of businesses anticipating stronger activity in the next 12 months, compared with 10% (down one point) expecting weaker outcomes. This resulted in the net balance rising three points to 44% versus 41% in September.
Optimism about the wider economy also increased, with 55% (up four points) of firms reporting greater optimism, while 21% (unchanged) were less upbeat. The net balance therefore rose four points to 34% compared to 30% in September.
https://www.lloydsbankinggroup.com/media/press-releases/2023/lloyds-bank-2023/october-2023-business-barometer.html
The FTSE 100 is expected to edge higher at the open, despite disappointing economic data in China, after US markets made strong gains.
Spread betting companies are calling London’s lead index up by around 6 points
Food prices inflation has fallen to its lowest point in 15 months, strengthening the case for the Bank of England to leave interest rates unchanged when its policymakers meet on Thursday. Next CPI rate release date for October is 15th November.
https://news.sky.com/story/food-inflation-8-8-in-year-to-october-brc-and-nielseniq-say-12996766#
Chid/Brixton,every long established business has to balance the pros and cons.Do you remain the same and hope to keep customers who are loyal to your brand, extremely profitable with large balances who do not even bother with interest rates OR get down in the mud and fight for business.The two are completely different business models.With the first you can always pick number 2 but go with the mud and there is no return.Lloyds has chosen to keep to number 1 as its whole business model is based on loyal suckers.Brixton 45 years S/E you deserve every penny of your pension.
Is still being offered by the market to trade at near 40p per share.
I made a purchase at under 40p last week - I would be more than happy to make more purchases on further weakness in price. I will never look a gift horse in the mouth.
Just when you think we have enough gone wrongs in the police along comes deputy Brixton...
D...
HU, go put some of your grannys records on....
D...
Hardup
You are worthy. God bless a straight geezer. & informative.
DT........don't need a big boat to catch small fry.
HU, You're gonna need a bigger boat...
D....