Does anybody know roughly how much of the shares are held by UK tax payers and hence may be impacted by such considerations? Where I live there are no capital gains taxes.
Many thanks both!
Thanks Hardup.
A simple and fair assessment. As I have written before, management have not added any extra value to the company since the Government got its money back. They cannot expand market share in retail due a "regulatory cap". Their Private Bank has been mismanaged for a decade (actually forever) and they mismanaged MiFid in the commercial bank while not working to expand their terrible market shares with SME and Mid Market clients. At this stage only cost cutting, good management of the balance sheet and improved interest rate differentials can create better returns. They thoroughly gave up on meritocracy about five years ago so loads of middle management is there for the wrong reason and the culture is very internally focused. Government is probably more in control of the share price than Lloyds itself....
Sain,
Thanks for your commentary!
Do you have any views/comments on how UK REITs may be impacted by the new budget and the Government's overall fiscal strategy?
I agree. Productivity in the UK is now lower than even in France. Western Europe is de-industrialising fast with production moving to China and elsewhere. Perpetually higher taxes and regulation in combination with suicidal energy policies and unlimited illegal unskilled immigration is killing the continent. Now Biden is doing the same to America. Run fast.
Which Trump's legendary tax cuts showed. Low and middle income tax payers received the biggest tax cut and high earners paid more in tax . All leading to real wage increases for low income groups and record employment for blacks, browns, uneducated and women. Minimised illegal immigration. Growth and share prices accelerated. There is no reason the UK (or Europe) cannot do the same. BUT fake narratives and dishonesty in politics and media prevents it.
ESG and DEI are both scams to avoid being held accountable for financial and qualitative performance i.e. building long term share holder value. LBG is a great example of that. "Political commissars" running around playing bankers with spreadsheets about things that do not matter for the bottom line... I was there for 5 years. It was unbearable. They could not care less about the share price or the customers for that matter. Just look at Lloyds Share price and market shares (retail, SME and mid market) the last decade. Flat at best.
Isn t Osborn now advising Hunt? Does that not mean they are going for pensions again?
Energy (net zero regulation limiting supply), lockdowns (less production of good & services) plus government spending via printing/borrowing (more inflationary money supply), war (printing more & buying weapons) and too low interest rates.
All enhanced because EU & North America did the same. Add then China zero covid reducing production of goods.
A toxic incompetent mess created by the present morons in Western Governments and the UN/IMF/WHO.
Here in Switzerland October CPI was 3% and core was 1.8%. Government budget surplus expected for 2022 & 2023.
Low tax, small government, legal immigration, private healthcare, 35 % debt 2 GDP.
There is no reason the rest of the west could not do the same but....
I know both Hann-Ju and Paul well having worked there and they are good people. BUT the issue is really how will the Government tackle inflation to stabilise the ship. They are not transforming energy supply in the short term. They are not cutting taxes. The energy price cap is inflationary... But will they de-regulate business and cut other Government spending?? The problem is that by saying no to energy supply measure and tax cuts they have limited room to fight inflation so interest rates must rise dramatically.
I am in at 313 so it's hurting. Awful timing. I only did half of my allocation rules for this segment due to the emerging market profile so not too bad but clearly did not properly assess the Asia macro risks. These risks are only increasing in my view....
Indeed. It is remarkable how successful cancelations of tax cuts and fracking has been to calm things down.
Both of which would have helped to grow the economy, reduce inflation and ultimately pay down the debt....
Almost like a UN/IMF/WEF magical wand has been waved...
Many thanks for this!
While I hold it for same reason as you I feel it has become a more risky bet given the region, the strong dollar and higher interest rates. I am not bailing, just complaining...
I've got both and HFEL feels seriously risky now given Asia tension, the strong dollar and higher interest rates.
How didn't you know this?
Most Western Governments have lost control and the UK is presently leading the race to the bottom.
Its a very tough time to go bottom fishing right now but I agree RLE may be a very good candidate in this sector.
I had the same thought...
Lloyds has an extremely UK centred strategy designed by Horta. That may have made sense in the clean-up phase. But when the UK faces political and economic crises perceived to be larger than the rest of the West, the SP will be hit more than other more diversified banks. One can only hope the opposite is also true....
As an ex employee I do agree with Mat78 but at the moment there are more existential macro issues driving the SP.