In this week’s episode, Michael Brown (Senior Market Strategist from Pepperstone) and I look back at this week’s rebound in European markets, as well as assessing the prospect of further central bank rate cuts after another 25bps cut from the ECB. We also look at Trump’s threats to Fed chair Jay Powell, as well as looking at this week’s UK economic data and whether the UK economy is as resilient as the current economic data suggests.
Stocks Discussed
- Sainsbury’s (SBRY) – “Guidance unchanged…relative to Tesco’s, probably undervalued.”
- B&M Value Retail (BME) – “You don’t open 45 new stores unless you’re optimistic.”
- Deliveroo (ROO) – “7% increase in revenue…maybe the consumer isn’t as fragile.”
- JP Morgan (JPM) – “Still expect margins to hold up fairly well.”
- Goldman Sachs (GS) – “Strong performance…but weakness in wealth management.”
- Tesla (TSLA) – “Margins have fallen from 25% to 7.2%.”
- Alphabet (GOOGL) – “Maybe the market is justified in its pessimism.”
- Boeing (BA) – “They seem to just constantly be snatching defeat from the jaws of victory.”
Summary
- The ECB is expected to continue rate cuts despite economic concerns.
- Market reactions to central bank decisions are often performative.
- US economic policies, particularly tariffs, are impacting growth and inflation.
- The UK economy shows surprising resilience in recent GDP data.
- Inflation trends are complicating the Bank of England’s policy decisions.
- Retail sector performance is mixed, with some companies showing strength.
- US banks reported strong trading revenues but face challenges in other areas.
- Tech companies are under scrutiny for their AI investments and market performance.
- Boeing’s reputation has suffered significantly due to safety concerns and management issues.
- The future of Boeing remains uncertain amidst ongoing operational challenges.
Michael Hewson has over 30 years of experience in the financial markets and brings a wealth of expertise and a passion for stock market analysis to the Good Money Guide podcast. As the former Chief Market Analyst at CMC Markets, Michael led a talented team of in-house analysts, providing daily insights, research, and market commentary to both retail and institutional investors and traders, as well as being regulatory featured on the mainstream financial media worldwide like the BBC and Bloomberg.
Michael is renowned for delivering award-winning forecasts and timely, accurate analysis and was nominated twice in the City AM Award category of “Analyst of the Year” in 2019, and 2021, receiving a high commendation in 2019 for the coverage of Uber and Lyft IPOs and predicting that the Fed would cut rates that year.
Michael is committed to empowering traders and investors. With prestigious MSTA and CFTe credentials, he has been honored by CityAM, the Professional Trader Awards, and FXWeek for his contributions to the industry. His extensive media experience, spanning TV, radio, online, and live events, has made him a respected educator, dedicated to helping audiences make confident, informed decisions.
You can contact Michael on michael@goodmoneyguide.com
