Market Round Up: Oil be Damned Airlines ✈⛽ – UK Foundations Rocked 🏡

by | 2 Oct, 2018

 

1.  Oil be damned airlines

As the U.S. embargoes start to hit Iranian output, and OPEC refuses to turn the geyser taps on, the price of oil continues to spiral. Brent is over $85 a barrel, while sweet and light West Texas is climbing over the $75 bar. And one sector that is really starting to feel the burn is the airline industry.

It’s the budget airlines that are suffering the most, so far. With very, very tight margins, the price of fuel has a detrimental impact on profitability. Cabins are already squeezed to the gills and there’s no space to add more bums-to-seats to compensate for rising fuel costs. EasyJey and Wizz Air to mention just a couple of budget airlines have both seen their share price dip 12% this past week. But if you though it was just the discount providers suffering, think again. Airlines that have overstretched themselves through expansive networks and hubs are affected simply by scale. Turkish Airlines has taken a dive. So have American, Delta, United, British Airways’ IAG and many more.

So you may want to heed this sector, or take the long term view that people’s desires to travel ever more to never-never lands will continue to grow. The choice is yours.

Related: Market Round Up: FANGs Reclassified 🏁 – Oil Be There ⛽

2. UK Foundations rocked

Sometimes, just sometimes, political blustering does impact business. Take the Conservatives at their party conference in Birmingham this week. On the one hand, the party in government is desperate to make friends with business (especially with Brexit around the corner). On the other hand, a little bit of jingoistic bravado has clobbered the house building sector, overnight!

It all centres around plans to introduce a property tax, or stamp duty, on all non-resident house purchases. This is nothing new to many popular foreign buyer property markets such as the U.S. and France. But in this case, especially in London, where the strength of property values is so reliant on foreign ‘investment’, it has clobbered the likes of Barratt Developments, Taylor Wimpey, Bovis and especially Berkeley Group – which is 70% reliant on the high-end London market.

In the long run, the policy may be ethically just. But in the short, at a time when the UK has a very serious housing shortage, perhaps builders need to be given more carrots and less stick.

 

Related: Market Round Up: The Week Ahead 🙈 – Business Growth for Real? 🔓

All emails include an unsubscribe link. You can opt-out at any time. ​See our privacy policy.

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

Download on the App Store           Download on Google Play

ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

Share This