Brexit, executive pay and electronics

The blue-chip index was treading water in early trading after the rally in global equities cooled somewhat with US markets little changed overnight, while Asian stocks were a whisker lower.

“Insolvency firm Begbies Traynor’s latest research is manna from heaven for the pro-EU campaign,” says AJ Bell Investment Director Russ Mould.

“The firm’s Red Flag research warns that Brexit could spell disaster for struggling exporters despite a boost from a weak pound. The picture is bleak for manufacturers where 21,061 are already in ‘significant’ distress. But there are also alarm bells for the financial services sector which has significant exposure to European markets and investment community. The number of financial services firms in ‘significant’ distress is up nearly a quarter at 5,391.

“BP’s disgruntled shareholders have left management in no doubt over how they feel about giving hefty pay rises to senior executives when the oil giant is reeling from record losses. The vote at the annual general meeting is non-binding and BP has already promised a review of future policy but the group may feel it prudent to rethink the current packages. Results of the vote came after the market closed and BP’s shares edged higher in early trading as crude oil prices continued to edge northwards.

“Electronic products designer and distributor Acal’s shares were up after a bullish end of year update. Trading in the final weeks of its financial year were strong and it expects underlying earnings to be better than forecast. The group has made three acquisitions since November and all are performing well.”

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