The FTSE 100 was lower on Wednesday as investors anticipated the latest decision on interest rates from the US Federal Reserve – where a half percentage point rise is widely expected,” says AJ Bell investment director Russ Mould.
Given the quantum of the raise is almost an open secret at this stage, all the attention will focus on any guidance around the pace of future increases and whether the recent surprise dip in US GDP has any impact on the Fed’s thinking.
“When Aston Martin Lagonda listed on the UK stock market the idea was to emulate the likes of supercar manufacturer Ferrari – an ambition which failed miserably as the shares have largely been stuck in reverse,” said AJ Bell’s Russ Mould.
“Major shareholder and executive chairman Lawrence Stroll will hope replacing current CEO Tobias Moers with former Ferrari boss Amedeo Felisa can help bring Aston Martin up to speed.
“The market seemed to take the news positively but Felisa will face a tough task, particularly given the cost and supply chain pressures reflected in the first quarter loss of £47.7 million.
“Another company seeing a change at the top is posh welly seller Joules – where Nick Jones is to depart after a very soggy three years for the shares.
“Joules’ shares dived sharply once again this morning as it warned on profit and Jones’ position had probably been rendered untenable. Not that his successor will be blessed with a strong set of cards to play.
“Household budgets are constrained and while luxury brands serving the very wealthy usually ride out downturns well and cheaper outlets can attract shoppers who are trading down, more premium high street brands look vulnerable.”
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