There maybe trouble ahead...
Taking Stock on Friday 17th November 2023
Taking Stock: Is a look at today's top business news & investment views plus we cover the winners, losers, the most read company news & the most followed. Today this includes:
There maybe trouble ahead...
UK Retail Sales figures were released today and they came in, way worse than forecasts.
They hit lowest level since 2021 lockdowns.
The ONS also revised down its reading of retail sales in September to a drop of 1.1% after initially estimating a decline of 0.9%.
Given the fine margin by which Britain avoided an economic contraction during the third quarter, today's figures showed a risk that GDP could yet be revised lower to a negative reading.
Compared with last year, retail sales were 2.7% lower - a worse outcome than any of the economists polled by Reuters had forecast.
Retail sales volumes have fallen back to 2018 levels.
Retail Sales Year on Year to October.
ACTUAL: -2.7%
FORECAST: -1.5%
PREVIOUS: -1.3%
Investors think these factors will force the Bank of England to lower interest rates next year.
This is being reflected in bond yields...
So the worse the economy gets, the more likely the BoE will reduce interest rates sooner.
The market will try to price this in but certain sectors will still be hit.
I can't see the new year bringing people out to spend, so you can expect some dismall trading updates from consumer decretionary companies for months to come but there are parts of the market that will do well.
So suggestions please, which sectors do you think you should avoid? I.E. the ones that will be hit by consumers slowing down spending?
And which sectors do you think you should seek out? I.E. the ones that will benefit from the market looking ahead toward the interest rate declines?
Companies mentioned on Taking Stock today, include:
15:35 Card Factory #CARD
16:10 BP Marsh #BPM
17:57 Anpario #ANP
17:55 Light Science Technologies Holdings #LST
18:00 Ocean Harvest Technology #OHT
18:05 Eden Research #EDEN
18:15 Plant Health Care #PHC
18:28 Intelligent Ultrasound #IUG
20:00 Metals One #MET1
20:24 AMTE Power #AMTE
23:00 & 31:05 Silver Bullet Data Services #SBDS
23:20 Chill Brands #CHLL
24:20 Valereum #VLRM
31:43 & 34:52 AFC Energy #AFC
33:55 Team17 #TM17
37:40 Jersey Oil & Gas #JOG
39:05 Gresham Technologies #GHT
39:45 Real Good Food #RGD
42:20 Destiny Pharma #DEST
43:05 Mitchells & Butlers #MAB
47:24 Oxford Biodynamics #OBD
48:30 LungLife AI #LLAI
49:25 & 51:40 Premier Miton #PMI
TOP BUSINESS STORIES
‘Great British Isa’ investors could get extra £5,000 tax allowance
Jeremy Hunt considers incentive to boost investment in UK-listed companies
Savers would be handed an extra £5,000 Isa allowance if they put money into a “Great British Isa” under plans to boost the economy.
Jeremy Hunt is actively considering proposals to introduce an additional £5,000 allowance for savers who want to invest in UK-listed companies, The Telegraph understands.
Sources familiar with Mr Hunt’s thinking also said he is considering introducing a new stocks Isa that can only be invested in UK companies’ shares.
Proposals for a new UK-only Isa would incentivise tax-free investment in businesses listed on the London Stock Exchange, providing a much-needed capital boost to the main UK stock market, supporters of the proposals have said.
It follows a letter to The Times calling for such reforms, signed by City figures including former pensions minister Baroness Altmann and the bosses of high-profile investment groups such as Panmure Gordon and Shore Capital.
The letter comes a week before the Chancellor’s Autumn Statement, in which Mr Hunt is expected to maintain current high levels of taxation despite widespread calls to ease the nation’s burden.
Premier Miton chief executive Mike O’Shea first floated the idea of a UK-only stocks Isa in The Telegraph in September.
Around £67bn is currently invested in 11.8 million Isas across the country. According to HM Revenue and Customs, the value of funds held in stocks and shares Isas increased 14pc during 2021-22.
Jeremy Hunt to pledge millions to woo electric car firms
The chancellor is to announce hundreds of millions of pounds more in funding for companies wanting to manufacture batteries for electric vehicles.
In a signal aimed at attracting EV manufacturers, including the likes of Tesla and Chinese firms, Jeremy Hunt will pledge more subsidies and grants.
The existing Automotive Transformation Fund has helped to lure Nissan and Tata to the UK.
But industry sources say much of the £1.2bn pot has been committed.
The announcement will be part of a wider package aimed at stimulating growth in advanced manufacturing.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.