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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailJD Wetherspoon Chairman says UK government has been 'dire in understanding what makes business tick'Tim Martin, chair of JD Wetherspoon, talks about the potential impact of a new government for the hospitality sector.
Persons: Tim Martin, JD Wetherspoon
HSBC identified nine "unloved stocks" listed on the London Stock Exchange that it says could be poised to surge due to several factors. The investment bank said U.K. markets have started to outperform other global indexes for the first time this year — since the release of the U.K.'s June inflation data on July 18. While the bank's strategists retain their underweight view on the U.K. market overall, they highlighted that London-listed stocks are "unambiguously cheap" on a valuation basis. The bank said the above stocks are FTSE 350 constituents with bottom-quartile consensus ratings indicating a sell or underweight rating. "By definition these screens are not relevant to everyone and should be viewed as a basis for further investigation," the HSBC strategists added in a note to clients on Aug. 15.
Persons: Edward Stanford, Hargreaves, — CNBC's Michael Bloom Organizations: HSBC, London Stock Exchange, of England, FTSE, SPX, HSBC FX, Pennon Group, Unilever
Hani Redha, global multi-asset portfolio manager at U.S. investment firm PineBridge, said that UK valuations do not look cheap when looking at a multi-year timeframe and the "structural issues facing the UK economy". UK stocks (.FTAS) are already trading at a record discount to their global peers (.MIWD00000PUS), Refinitiv data shows, but investors expect new lows next year. UK discountThe domestic-orientated FTSE 250 mid-cap index (.FTMC) has broken three consecutive quarterly declines after new Prime Minister Rishi Sunak dumped most of his predecessor's market-crushing fiscal plan. Half of all borrowing by UK non-financial companies is in dollars, totalling about 350 billion pounds ($399.5 billion), according to S&P Global. "Bearing in mind in what state the UK economy is right now, I would stay clear of UK small-caps," he said.
Market research released on Tuesday showed that grocery inflation hit another new record of 13.9% in September, deepening the cost-of-living crisis, while BRC-KPMG data showed people were investing in items to help them save cash. Nine out of 10 people surveyed by Barclaycard in Britain from Sept. 23-26 said they were concerned about household energy bills. Over half of those surveyed by Barclaycard said they were planning to cut down on discretionary spending so they can afford their energy bills this winter, with nights out most likely to be canned. Rival JD Wetherspoon's said last week that its sales had been boosted by young people drinking cocktails and spirits. Coffee and sandwich chain Pret A Manger said on Tuesday that it would raise staff pay for a second time this year.
London (CNN Business) Much of Britain will come to a standstill on Monday for the funeral of Queen Elizabeth II . A company spokesperson told CNN Business that its venues would open on Monday "for communities to gather to mourn and reflect together on the life of the Queen." Travelodge, which has 78 budget hotels in London, said its staff were working "around the clock" in preparation for the Queen's funeral. Most major supermarkets — which normally remain open on public holidays for a reduced number of hours — are planning to close for the funeral. Apple AAPL confirmed to CNN Business that it would close all of its 39 stores in the country on Monday.
London (CNN Business) Much of Britain came to a standstill on Monday for the funeral of Queen Elizabeth II . A company spokesperson told CNN Business that its venues would open on Monday "for communities to gather to mourn and reflect together on the life of the Queen." Travelodge, which has 78 budget hotels in London, said its staff were working "around the clock" in preparation for the Queen's funeral. Most major supermarkets — which normally remain open on public holidays for a reduced number of hours — are planning to close for the funeral. Apple AAPL confirmed to CNN Business that it would close all of its 39 stores in the country on Monday.
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