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Troajan

Jeremy Hunt will have to pull one mighty big rabbit out of his hat in the forthcoming Spring budget if the UK economy is to swerve a recession this year.

NatWest will undoubtedly set the tone for the banking sector on friday when they unveil earnings from their latest full year financial reporting, anything less than a very strong set of stellar earnings will see the share price slump, taking the rest of the banking sector with it.

Another feeble attempt by Government to interfere into the free market.

Take note Jeremy Hunt, Margaret Thatcher once said " you can't buck the market " and she was right !

Woe betide for the share price, if full year financial results fall short of market expectations !

Tesco Bank maybe a blessing in disguise , Lloyds needs less-exposure to the UK Economy not more, Lloyds must focus on internal organic growth and new alternative revenue growth streams if they want to maintain and drive profits forward in future years.

If market sounding is favourable among institutional investors for consolidation of Lloyds share capital then " So Be It "

A fire - sale of the bank by a cash strapped desperate chancellor to help fund pre -election tax cuts, at today's current share price level the sale of NatWest will result in a real term loss of £18Bn for UK taxpayers when taking into account a 10% discount which would be needed to encourage demand for the shares.

Norway has hugely profited from of Russia's invasion of Ukraine ( oil & gas prices ). Now step up to the plate and pay your overdue agreed NATO defence -spending target of 2% of GDP on time.

Chips /cookoo

Ongoing Brexit infighting debate pales into insignificance compared to the world order around us which is changing rapidly before our very eyes, we are about to enter a confluence of political and economic conditions western society have never encountered before.

Who knows, what future direction Brexit and Democracy will take, it will be soon in the hands of the younger generations and voters, tomorrow it will be their World, not ours anymore !

UK inflation and price threat still to sticky, interest rate cut unlikely, certainly not before spring at the earliest.

Deep frustration among shareholders, a bumper share buyback programme announcement is the only short - term catalyst option available to put a floor under Lloyds flagging share price.

Once again, share buybacks will take precedence over dividend growth, payout levels will remain below their pre-pandemic highs.

Evergrande Group, It's been a ticking time - bomb for far to long now, interesting how things will eventually play out for foreign banks, bondholders and creditors of Evergrande debt in mainland China.

Gunsup / Cookoo

A reverse stock split ( share consolidation ) of the shares is still very much on the table for consideration at a future date, cosmetic exercise maybe and will not stop the share price from drifting down further, on the positive side the shares will escape their penny stock stock status and will become more attractive to UK institutional and overseas investors and may also lead to the BOD to have a rethink on their shelved quarterly dividend payout plans to shareholders.

To keep on reversing the hideous legacy of share dilution caused by the 2008 financial crash and subsequent Government bail out of the bank.

Put simply, Lloyds have to many shares sloshing around the market and not enough buyers for the stock.

The Chancellor does not give two hoots about low UK banking sector share prices....... Theme of the meeting, more lending to business and households rather than increased dividend payouts and buybacks to shareholders !

Currently UK equities are out of favour particulary banking sector shares, top priority of a Fund Manager is to ensure investors assets are protected, global economic events, political meddling in UK london market and the forthcoming General Election will certainly be at their forefront of their minds when making well informed important asset allocation decisions on broad based fund allocation of UK equities.

Introduction of Artificial Intelligence into the banking sector, " you ain't seen nothing yet " a real gamer changer to come !

Analysts cutting earnings forecasts for UK banks 7 -12% for 2024 on top of fierce mortgage competition and lending hitting bottom - line operating margins further won't help the current poor share price performance.