Boris Johnson has backed away from his initial stance on Huawei to bow to pressure from the US and his own backbenchers.
Likely to be even more cost and delay to 5G rollout for BT and other mobile network suppliers.
Article in ISP Review on likely impact;
Leaving aside the inevitable ramifications of becoming less open to inward investment from China. Any dramatic change of course now seems likely to produce a hostile response from the industry, which will have already revised their plans to adopt the Government’s earlier balanced approach (BT alone is set to take a £500m hit from that). But completely removing Huawei’s kit from UK networks by 2023 also seems like an unworkable ask.
Firstly, part of the reason for the Government’s decision in January was likely to be because completely banning Huawei could make the rollout of new “gigabit-capable” 5G, and possibly also fixed broadband ISP networks, both much slower and more expensive to achieve. This in turn would have impacted Boris’s recent £5bn pledge to ensure that every UK home can access 1Gbps speed broadband networks by the end of 2025.
The notion of reducing Huawei’s involvement to “zero” by 2023 is also unrealistic for other reasons, not least because it would mean ripping out masses of existing 4G, and some newer 5G, mobile kit, as well as replacing tens of thousands of Huawei based broadband street cabinets (FTTC / VDSL2) and ripping their “full fibre” (FTTP) Optical Network Terminals (ONT) off the walls in UK homes etc.
Achieving that kind of mass infrastructure cull by 2023 would be a massive task and could well cost billions across all of the various network operators (i.e. who pays and is it right to expect operators to foot such a colossal bill, despite being given the all clear for years beforehand?). All of this would also divert engineers and resources from deploying new services, possibly for several years, which will dramatically slow the 5G and FTTP roll-out.
Anyone else here use Yahoo Finance.
I have set up a Portfolio on Yahoo Finance using my BTInternet email to login.
However with the changes made today by BT on Email I can't seem to sign in.
Anyone else in the same boat? Even better anyone any idea how I can get back my portfolio?
I'm not sure there is any advantage in asking HL to transfer cash out of your 212 account. Whether you do it or HL do it it will take a few days to transfer.
You can ask HL to transfer the shares without selling them. There's probably an online form or you may be able to contact their helpdesk. That way you won't lose out on any gains made in the few days it will take to transfer the cash.
From the LEX column in today's FT
"All this bad news leaves shareholders stranded by the side of the road. Suspension of both the dividend and profit guidance by such a conservative group reinforces the feeling that BT is at best a cheaply valued dead end for investors."
I almost decided to buy more since the price is ridiculously low for a company making a profit of £2.4 billion a year then I remembered the many times I've done this in the past and been immediately shocked to find its gone lower.
You may not have been able to see this paragraph;
'That blow to members, while helping to reduce the liabilities of the scheme, will be outweighed by a reduction in the value of the billions of pounds of index-linked gilts and other assets linked to RPI that the scheme holds on the other side of its balance sheet.'
I don't know why they picked on BT though they are probably one of the few who for some reason are using RPI for the most recent employees (Section C) so they actually have a counter-balancing gain in not having to continue increasing pensions at RPI rates.
Interesting article in the Telegraph about the (mis?) use of ventilators in treatment of ARDS - its one of the few not on premium so I think readable without subscription;
The implication here is that they are treating patients as if they are suffering from ARDS but Covid 19 is not presenting in that fashion and the use of aggressive ventilation is not the best treatment.
“The initial message was treat as if you were treating for acute respiratory distress syndrome (ARDS) with a high PEEP,” said Daniels. “But now we are becoming braver. We are tolerating much lower blood oxygen levels and using lower pressures. We are learning as we go along”.
Could this have an impact on the trials of Traumakine in that its not the right drug for treating COVID 19? This doesn't change the value of FARON overall but it might mean that the people who've invested here because of its association as a treatment for the virus may drop this like a stone if it has no impact for patients with that problem.
BT has announced that its Chief Execuive Philip Jansen has contracted coronavirus.
Here’s a statement from the company:
“Philip Jansen, Chief Executive, BT Group has late this afternoon tested positive for COVID-19 and as a result has followed the Public Health England protocols to self-isolate.
BT is now working closely with Public Health England to undertake a full deep clean of relevant parts of its Group headquarters and will ensure those employees who have had contact with Philip are appropriately advised.
Philip Jansen said: “Having felt slightly unwell I decided as a precaution to be tested. As soon as the test results were known I isolated myself at home.”
“I’ve met several industry partners this week so felt it was the responsible thing to do to alert them to this fact as soon as I could.”
“Given my symptoms seem relatively mild, I will continue to lead BT but work with my team remotely over the coming week. There will be no disruption to the business.”
This is my biggest concern. Can you imagine the cost if Huawei is banned completely - which isn't entirely out of the question with parliament and the US making concerted offers to overturn the governments decision.
More recently this;
(Update) Investors in London’s expensive listed renewable energy funds are at a risk of a 43% share price fall and a 33% drop in asset values due to the slide in long-term power forecasts, JPMorgan Cazenove has warned.
Strong investor demand for their reliable dividends and environmentally friendliness has pushed shares in London’s six wind and solar power investment companies to an average 16% premium above their underlying net asset values (NAV).
But UK investment companies analyst Christopher Brown said the double-digit premiums of companies in the £9bn renewables sector were unsustainable in face of mounting evidence that growth in carbon-free energy would slash the cost of electricity in the next 20-30 years.
Its not just Bluefield lots of energy renewables shares are being hit.
A quick google found this;
Oh Boy - I was hoping against hope that Labour would win to defeat the stupidity of Brexit but now they've blown the bloody doors off!
Of course if you're going to privatise anything privatising Openreach makes perfect sense if you want to rollout Fibre broadband across the UK. But leaves us shareholders in dire quandary.
I doubt that it's a priority right now, Im perfectly happy with my 30 Mbps on FTTC but I don't doubt that shares will collapse tomorrow just like utilities like water and electric have been in the doldrums for ages.
Best chance is to sell at best price you can tomorrow and rebuy when market comes to its senses. Either that or hang on and weather the storm. Ha ha - I've no effing idea.
Of course Labour have no chance of winning a majority or even ruling a minority government but the threat is there and the SP will drop like a stone.
I agree with IWEB. Pretty cheap - (£5 per transaction if frequent trader). Only problem is extra charges for stop losses etc and only allows you a few minutes of use without closing down and as evonybob says not much use for research but other free sites available.
Google seems to do this fairly regularly. I noted earlier this year a 10% + drop in the Sp compared with other sources which disappeared the next day.
That said Google unlike most reflect after hour prices. Could the USD delisting affect this? Probably not but nice to dream.
Telegraph is reporting that BT preparing for sellof of BT Espana.
I can't see full article (behind paywall) but the first few paras give the gist;
'BT has begun work on a sale of its Spanish business as the break-up and restructuring of its international arm Global Services accelerates and its shares slump on fears for broadband dominance on home turf.
The telecoms giant has begun exploratory talks with potential buyers of BT España, according to City sources, in parallel to the ongoing sale of BT Ireland.
Discussions are at an early stage, with any deal more likely to appeal to buyout firms and infrastructure investors than Spain’s big telecoms players Orange, Vodafone, MásMóvil and Telefónica, City sources said.'
I'm by no means a financial expert and we're probably talking about different terms and you're probably right in the correct financial meaning of the terms used but essentially I think you're arguing the difference between gross and net. If the profit is only increasing as a result of cost cutting then revenue is not necessarly increasing is it?
I tried to find something in the annual report but couldn't but did find this in an overall positive statement from Credit Suisse;
'Last month, BT reported a 2% drop in adjusted underlying earnings (EBITDA) to £7.39bn and a 1% decrease in adjusted revenue to £23.46bn for the year to March 31, as growth in the consumer business was offset by regulated price reductions in Openreach and declines in the enterprise businesses.
For the 2020 financial year, BT expects adjusted EBITDA will fall to £7.2bn-£7.3bn as adjusted revenue falls by another 2%.'
For John Lewis apparently.
Interesting I wonder who would be in the running to take over. Could be a positive for BT.