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In This Week’s Newsletter:
- How to Invest in Wayve, the UK AI Firm Behind London’s Robotaxis
- BP Shares Are Up 30% in 2026. Are They Still a Buy?
- It’s No Wonder Berkshire Hathaway Piled Into Alphabet Stock This Year
- Where to Buy Bonds for Income as Yields Rise Everywhere
- Imperial Brands: Shares Undervalued Amid Market Concerns on Combustible
- The Best Asia ex-Japan Equity Funds to Buy
- Why Bond Markets Are Pricing In Too Many Interest Rate Rises
- Why Is the Bitcoin Price Soaring Again?
Driverless taxis have arrived in the UK. Wayve, the £6.79 billion supplier of AI software for robotaxis, has launched its service in London in partnership with Uber. Tokyo is next up. An IPO is not yet on the cards, but in this week’s top story, Christian Mayes takes readers inside the two key UK investment trusts with exposure to the private-held company.
At age 96, Warren Buffett boasts one of the longest-running corporate careers in US history and has stepped back from his role as chairman of investment vehicle Berkshire Hathaway BRK.B. But one of his final stock picks was Alphabet GOOGL. In this analyst note, Morningstar senior equity analyst Malik Ahmed Khan explains why it may be yet another example of his shrewdness as a stock picker.
In Europe, government bond yields are at multi-year highs, with the yield on the 10-year German bund—considered a eurozone benchmark—at its highest level since 2009. This echoes the situation in the UK, where the 10-year gilt yield is close to its 2007 high. While some stock fund managers are taking a more defensive stance in response to rising rates, the rise in bond yields is looking attractive for income investors. Sara Silano explains more here.
That rise in bond yields is being driven by stubbornly high inflation and expectations of repeated central bank interest rate increases from the European Central Bank and the Federal Reserve. The Bank of England hasn’t raised rates this cycle, but derivatives markets have priced in four increases in the coming months. However, Alex Ralph, senior fixed income manager at Nedgroup Investments, makes the contrarian case that there are too many interest rate increases priced in. You can watch her conversation with Christian Mayes here. For another contrarian view, check out this interview with BlackRock bond boss Rick Rieder, who believes inflation is peaking.
The jump in oil prices responsible for much of the current concern about inflation has been good news for energy stocks. One such stock is BP BP., whose shares up 30% this year. Can those gains continue? Ollie Smith takes a look in our Stock of the Week video.
In the background, the third quarter is in its final days and it was a good one for UK stock investors. The Morningstar UK Index rose around 3% in the third quarter, which built on a weak 1.3% gain in the second quarter. Stay tuned in coming days for a review of third quarter markets and fourth quarter outlooks.
Ollie Smith is Senior Editor at Morningstar UK
