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Accendo’s Foreign Exchange Forecasts, Monday 26 February 2018

Macro observations This week will be all about speeches. Already on Monday, we’ve seen hawkish commentary from Deputy Bank of England Governor Ramsden and Labour leader Corbyn advocating a soft Brexit lift Sterling higher. However, the best, and most important, are yet to come. On Tuesday, new Federal Reserve Chair Jay Powell will give his…

IAG: Take-off aborted

International Consolidated Airlines shares are firmly grounded this morning, down after the release of full year results. While headline revenues and adjusted EBIT looked encouraging at €22.97bn and €3.1bn respectively (vs. expectations of €22.97bn and €3.05bn), and both passenger numbers and total capacity improved 4.1% and 6.3%, a closer analysis of key performance metrics reveals…

Results season: Look out for the outlook

Another earnings season, another lesson for shareholders that financials (Sales, profits, etc.) are only half the story, in some cases much less, now history, possibly reported months after the given period ended. What really counts is the message from management, about where the business is going and the profits the company is expected to make…

Earnings to hit top gear next week

While you may have thought that this week was packed with company results, the best is yet to come. Next week, more than 60 of the biggest and most popular names on the London Stock Exchange report results in one form or another. But there’s one important sector to the UK economy that looks set…

British American Tobacco: Stick that in your pipe

Shares in British American Tobacco trade 5% lower this morning after FY 2017 results, made complicated by the recent acquisition of Reynolds, disappointed. 2017 FY revenues (£20.3bn reported, £20bn adjusted, £19.3bn adj. at constant currencies) missed consensus of £20.6bn, however, pre-tax income was either a beat at £8.1bn on an adjusted basis or bang inline…

Lloyds Banking: Shareholder returns trump headwinds

Lloyds Banking Group shares are in the green this morning, albeit off their opening highs, as investors appear happy to ignore headwinds and focus on management’s plans to improve key areas of the business (namely tech), or maybe just the promise of greater shareholder returns. Shares have stalled at 69p as the company announces a…

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