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Accendo’s Foreign Exchange Forecasts, Monday 27 November 2017

Macro observations As if 2017 hadn’t already faced enough election battles, Ireland is shaping up to be the next European country to face a run-off between party leaders. An ongoing scandal engulfing the Deputy Prime Minister, or Tánaiste, threatens the prospect of the opposition calling for fresh elections. As the Northern Irish border becomes the focal…

Accendo Press Quotes – Week Ending 24 November

24 Nov The Scotsman (Link) Mike van Dulken, head of research at Accendo Markets, said: “Even if Q4 was hurt by disappointing weather, and things have picked up since (sales +2.3 per pent), investors are clearly focusing on cost issues affecting the whole industry. 23 Nov CityWire (Link) ‘Even if the fourth quarter was hurt by disappointing…

UK Index defensives hit for six

Stocks with supposed ‘defensive’ qualities (e.g. Utilities, Telecoms, Health, Tobacco, Consumer staples) should be less sensitive – if at all – to the economic cycle, acting as portfolio buoyancy aids to limit damage when risk appetite sours and your more sensitive, higher beta stocks (e.g. Miners, Financials, Property, Oil) turn south. But that doesn’t mean…

Currencies key to unlock all-time high

Next week holds a big day for one man in America. Jay Powell, a current Fed Governor, will go through a gruelling job interview that could see him become the next Chair of the Federal Reserve. But why would this affect someone who trades the UK 100 ? It all comes down to the US…

Mitchells & Butler – Bruise cruise

Shares in Mitchells & Butler are down 10.2% this morning, dragging peer Greene King 4.8% underwater. This after it reported an 18% decline in full year pre-tax profits (adj. op profit -3.2%) as inflationary pressures hit margins to offset 1.8% growth in like-for-like sales (total revenues +4.5%). Even if Q4 was hurt by disappointing weather,…

Thomas Cook: Let’s go…lower

Thomas Cook shares plunged up to 15% this morning, to their lowest since end-July, despite a healthy 15% jump in FY revenues. This is due to underlying profits unfortunately growing at a slower pace (Gross margin and underlying EBIT up just 9%), explained by a Spanish price war (major contributor to airline Monarch’s demise) resulting…

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