Shares in Vodafone are down 2.5% this morning, depriving the UK Index of a valuable 5pts, after it confirmed preliminary discussions with international cable network owner Liberty Global about the acquisition/swap of overlapping continental European assets (Germany, Eastern Europe). Shares in CityFibre Infrastructure, however, are faring worse, down closer to 4%. This may stem from…
2 Feb Interactive Investor (Link) “With the test and measurement businesses in question accounting for around 25% of the division’s revenues and 42% of its underlying profits, this begs the question why management is selling two businesses with a higher aggregate 14.7% margin. The sale may well be only “slightly dilutive” for the group’s margin (a…
European stocks are set for their worst week since August. Time to panic, no? A gentle reminder that all good things CAN come to an end….. most definitely! Don’t assume stocks only go up. Global equity markets have enjoyed an epic advance for many months, years even. However, twitchy fingers are eager to click ‘sell’…
After so many questions about why equity markets are finally showing some signs of weakness, I thought I’d build upon what I wrote in today’s Index Focus. One reason for general equity market weakness is a continued 2018 rise in bond yields (especially the US) to hit multi-year highs, offering better relative returns versus what…
Shares in Cobham have reversed gains of nearly 5% this morning to trade almost 2% lower, adding to yesterday’s 4.6% decline, as investors digest the company’s sale of two businesses for $455m/£325m following a portfolio review. Yes the deal is in cash. Yes the company will use the proceeds (along with existing cash) to pay…
Royal Dutch Shell shares are lower today, as a $2bn tax reform charge steals the headlines over surging profits. But despite the dent from the tax charge – itself at the lower end of management’s $2-2.5bn guidance range – profits at the UK 100 ’s largest company more than doubled with Q4 earnings on a…