Shares in UK grocery chain Tesco (LON:TESCO) dropped after the firm posted Q1 underlying sales growth which missed analysts’ expectations. However, the firm reiterated its FY operating profit and free cash flow targets, lending some support to the stock. Hoping for sunshine For the 13 weeks to 30 May, Tesco posted UK LFL sales growth of 1.8%, below the 2.7% Bloomberg consensus. Growth was also below that of the previous quarter, when sales rose 3.1%, although that period included Christmas. The firm pinned the slowdown on an ‘exceptionally strong prior-year period supported by record-breaking weather and competitor disruption’. Food sales…

Some years ago, a landmark study by Professor Hendrick Bessembinder found a small minority of US shares generated the bulk of long term returns above those generated by short-term Treasury bills. That finding has informed large asset managers like Baillie Gifford and has also influenced many private investors. A recent study of the UK market reveals the same story. While shares overall have generated higher long-term real returns than UK Treasury bills, all of the outperformance has come from just a handful of stocks. The study finds that between January 1975 and December 2024, all of the ‘excess wealth’ was…

Investment trust Personal Assets (LON:PNL) has revealed it shifted around 10% of its portfolio into short-dated JGBs (Japanese government bonds) last year. The move, a first for the company, adds exposure to the Yen, which is ‘the cheapest it has been for four decades’ according to the managers. ‘Winning by not losing’ The trust, which aims to protect and grow shareholders’ capital over time, says holding Yen will provide diversification. It should also provide a buffer if the US dollar weakens or stock markets become more risk averse. Elsewhere, the trust reduced its gold position from 14% to 10% in…

Shares in investment and wealth management firm Rathbones (RAT) tumbled to a 12-month low following an FCA review. The group said it would voluntarily halt onboarding of higher-risk clients for a year and warned of a hit to earnings. Hit to earnings The FCA review identified areas of improvement within the group’s UK wealth management business regarding ‘the implementation and embedding of Consumer Duty’. The firm acknowledged the review also identified ‘certain aspects of its compliance, oversight and assurance arrangements’. Rathbones said it would address the review’s recommendations with a slate of changes over a two-year period. For a period…

AIM-listed sustainable building products firm Accsys Technologies (LON:AXS) reported strong FY26 results with growth across the board. The company also confirmed it was on track to meet ts FY27 financial targets. ‘Disciplined execution’ For the year to March, Accsys posted a 12% increase in group revenue to €153 million and a 26% increase in underlying EBITDA to €21.1 million. Including joint ventures, sales rose 24% to €183 million while JVs added €0.1 million of EBITDA. Group sales volumes increased 6% to 60,384 cubic metres while JV volumes jumped 149% to 16,853 cubic metres. Accsys has a 60% shareholding in Accoya…

Shares in AIM-listed semiconductor products firm IQE (LON:IQE) gained 18% after it announced a deal with US partner Tower Semiconductor (NASDAQ:TSEM). The multi-year agreement will see IQE supply specialist wafers for optical connectivity in AI-driven data centre infrastrusture. IQE’s InP (indium phosphide) epiwafers will be used in several of Tower’s advanced silicon photonics platforms as part of its next-generation optical technologies. The firms will collaborate on transceivers and prototype modulators as well as optical circuit switches and other critical applications for data centres. There is no mention of the monetary value of the agreement between IQE and Tower. However, Tower…

According to the latest analysis by FactSet, last quarter S&P 500 companies posted the strongest earnings growth since Q4 2021. Not only that, the number of companies beating forecasts was the highest since Q2 2021. Tech leads the way The average increase in earnings during Q1 2026 was 28.6%, the highest growth rate since the end of 2021. Unsurprisingly, the Information Technology sector showed the highest earnings growth at 55%. Information Technology includes several Mag 7 stocks, such as Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA). The second biggest increase in earnings came from the Communication Services sector, which includes…

Online sports betting and gaming firm Flutter Entertainment (LON:FLTR) has announced it will delist its London shares in early August. The group, which includes iconic brands like Paddy Power, FanDuel and SkyBet, said it would maintain its US listing. The chips are down Flutter said given the costs, regulatory and administrative obligations involved, it was better off quitting the London market. The delisting will become effective 8am London time on Monday 3 August, making Friday 31 July the last trading day. The firm has posted a list of answers to FAQ (frequently asked questions) which can be found on its…

The reporting season is easing as we head into the summer. While the calendar is lighter than peak earnings season, companies reporting will offer useful insight into trends in technology and consumer spending, with Jabil (NYSE:JBL), Tesco (LON:TESCO) and Beauty Tech (LON:TBTG) updates on deck. In the US, Jabil will be in focus given the company is a supplier to big-name brands such as Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA). Alongside Jabil, an update from supermarket operator Kroger (NYSE:KR) should provide insights into US consumer behaviour amid rising prices. In the UK, consumer spending will also be in focus with updates from AO…

Household cleaning products maker McBride (LON:MCB) lowered its FY26 and FY27 outlook due to higher input prices. The firm faces ‘sustained’ cost increases in petrochemical-derived and energy-intensive materials due to the Middle East conflict. 5% to 10% downgrade McBride works on a three-month pricing approach and says it has worked with customers to recover some of the increase in costs. However, the cumulative impact on input costs has exceeded its expectations, meaning a second round of price increases. The firm said at this stage direct cost pressures were ‘unlikely to rise considerably further or experience meaningful near-term decline’. It expects…