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“There was a definite summer holiday lull feel to Monday morning trading as the FTSE 100 slipped back a little following overnight losses in Asia,” says AJ Bell Investment Director Russ Mould.
“In macro-economic terms, all the big action comes mid-week as the Federal Reserve serves up its latest decision on interest rates and, a day later, we get the first estimate of US GDP for the second quarter.”
Vodafone
“Vodafone’s latest trading update lacked the hoped-for major acquisition which could have really moved the dial.
“Instead the company saw service revenue from its largest market, Germany, slip back as regulatory changes resulted in losses in its TV and broadband business.
“This was balanced out by price rises in the UK and the return of roaming charges as Britons jet off on holiday but no longer take their mobile data package with them.
“Vodafone’s share price continues to have all the vitality of a beached whale, having struggled to make any meaningful progress for more than a decade. Current chief executive Nick Read has had a four-year crack at it but has obviously been constrained by the pandemic and a lot of economic uncertainty. Can he do something bold enough to make the market sit up and take notice, or is Vodafone doomed to a stagnant existence?”
Ryanair
“Shrinking violet Ryanair boss Michael O’Leary was his typical reticent self when discussing the cause of problems in the aviation sector, pointing the finger at ‘unprecedented air traffic control and airport handling delays’.
“Ryanair’s results did reveal a healthy enough profit for the three months to the end of June amid significant pent-up demand. But the industry really needs these problems ironed out as soon as possible if it is to avoid hard-pressed households being put off the idea of flying on holiday by the stress and hassle of being unsure if they’ll get away, and the prospect of lengthy airport queues.”
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