07/10/13 Market Movements
Markets closed down, 16.6 points at 6,437.28 today.
|Aviva (BBL)||Moved further within 5% of TSP||Current price = 422.80p, TSP = 425p|
Aviva has released its interim results in August which showed notable achievements however there are still some concerns over underperformance and weaknesses in certain business areas, for example the fall in value of their new European business due to regulation and fierce competition. This has caused concerns over liquidity and had an effect on the March dividend payment being cut. The group have more recently appointed a new UK general insurance head however, we feel that the shares are still a bit of a recovery play at this stage. Based on this, we propose to maintain our TSP as it reaches £4.25 and prefer other competitors in the sector such as Standard Life.
We will therefore be watching, selling and coming up with an alternative stock in due course.
Many global leaders have already expressed their concern over the U.S. debt ceiling disagreements in an attempt to avoid the debt crisis. Today has been China’s turn and Zhu Guangyao, the Chinese finance minister has spoken out and urged the U.S. to take steps to resolve the issue and avoid any harm that would be caused to the global economy.