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In This Week’s Newsletter
- Is Rolls-Royce Stock a Buy?
- Novo Nordisk Under Pressure, But Can Shares Recover?
- What Andy Burnham Means for Your ISA
- Should You Buy Government Bonds Ahead of the Budget?
- The 7 Best S&P 500 ETFs
- European Investors Shrug Off US Tech Wobble
- Shein Chooses Hong Kong for Listing
Yields on UK long-term government bonds are up since the start of the year—and are now the highest among G7 countries—as bond markets price in political and inflation risks. While political risk may have faded recently, investors still don’t know what fiscal policies the new government has planned. Ahead of Chancellor John Healey’s inaugural Autumn Budget on Oct. 28, Christian Mayes talks to fund managers about what they’re watching.
The Autumn Budget will also be closely followed by the United Kingdom’s 20 million or so ISA savers and investors. Next year, allowances are set to be cut for cash savings, but the new chancellor could reverse this policy. A potential cap on ISA savings is also under discussion, not least because the growing number of ISA “millionaires” could be an easy target for a government looking for tax revenue. Ollie Smith rounds up the potential changes.
This week, we published two videos on companies with different trajectories in 2026. Shares in UK aerospace firm Rolls-Royce have just hit record highs, while weight loss drugmaker Novo Nordisk is off around 10%. The Danish pharma company has set expectations “appropriately low,” says Morningstar’s Karen Andersen, and second-half trading may be even tougher than the first half.
We recently looked at the shrinking UK stock market, where more companies are being bought out amid an ongoing shortage of IPOs. One stock that was supposed to end the drought was Chinese retailer Shein, which has now chosen Hong Kong as a listing venue instead of London. The company was once touted as having a USD 100 billion valuation, writes PitchBook’s Kristie Neo, but it is now likely to float with a USD 35 billion market cap.
Lastly, the latest European ETF flows report is out, and it shows investors embracing more US tech stock exposure, even amid wobbles in the artificial intelligence narrative. On that subject, we’ve screened for the best-rated S&P 500 ETFs.
James Gard, Editor, Morningstar UK
