Watch the latest manager update video featuring Thomas Moore, Manager of Aberdeen Equity Income Trust.
Google’s cloud business expected to power earnings growth
Google is expected to reveal continued strength in its cloud business as AI adoption accelerates when it reports its Q4 numbers on Wednesday.
With Google’s AI-powered chatbot now sitting at the top of everyone’s internet browser, analysts see a path ahead for its search business, which is expected to see revenue increase 13%.
Google Cloud, which is projected to generate $16.25 billion in revenue with impressive 35.9% growth, is demonstrating the company’s success in the enterprise cloud computing market as businesses scramble to implement AI solutions.
Beyond business-unit performance, Google Gemini is quietly becoming a favoured foundation model for developers, and it will be interesting to see what the firm has to say about its plans for AI services.
“Google is expected to deliver a solid fourth-quarter print, with Search and Cloud both showing clear momentum,” said Lale Akoner, global market analyst at eToro.
“Search growth is benefiting from stabilising competitive pressures in AI-driven discovery, with paid clicks accelerating and volume offsetting some moderation in pricing. Cloud remains the structural growth engine, supported by a large and expanding backlog and strong demand for AI infrastructure, pointing to continued acceleration into 2026.
“However, while estimates have moved higher, they are now broadly aligned with consensus. That matters because Google shares have already re-rated meaningfully over recent months, leaving less room for upside from a “beat-and-raise” quarter alone. Margins should continue to improve, but at a slower pace than earlier in the year as investment intensity remains elevated.”
Akoner continued to explain that expectations are rising among investors, and results alone will not be enough to send shares higher.
“For the stock to outperform from here, investors will likely need to see sustained earnings revisions across the market, not just a reassuring quarter.”
FTSE 100 surges higher as GSK breaks 2,000p
The FTSE 100 stormed to fresh records again on Wednesday as London’s leading index brushed off concerns about threats to the UK’s leading AI adopters.
After closing lower yesterday amid heavy selling in names such as Pearson, RELX, and LSEG, the UK’s leading equity index burst higher to trade above 10,400 for the first time.
The FTSE 100 was 1.2% higher at 10,446 at the time of writing.
UK investors didn’t dwell on the potential impact of Anthropic’s new legal AI toolkit on the business models of AI service providers such as RELX and Pearson, and shifted focus to M&A and strong corporate updates.
“The dust settled on Wednesday after a dramatic session for tech-related stocks amid new AI disruption,” said Dan Coatsworth, head of markets at AJ Bell.
“A lot of the focus since the AI theme emerged has been on the winners and while there has been attention on potential losers from the proliferation of artificial intelligence, this part of the story has mainly stayed in the background.
“That changed on Tuesday when a raft of data and software businesses endured double-digit share price losses on the launch of a new suite of tools from AI outfit Anthropic for the legal sector.”
Although RELX, Pearson, and the London Stock Exchange Group fell again on Wednesday, there was enough strength elsewhere to push the FTSE 100 higher.
GSK shares soared above 2,000p for the first time since 2001 as investors cheered a doubling of operating profit amid strong sales growth.
“A Q4 sales and profit beat was driven by broad-based double-digit growth across higher-value specialty franchises. Oncology continues to stand out, while Respiratory, Immunology and HIV all delivered excellent gains, reinforcing confidence that GSK’s growth is by no means reliant on a single pillar,” said Mark Crouch, market analyst for eToro.
“Management now guides to 3–5% revenue growth in 2026, following a strong 7% advance in 2025. While that implies moderation, it also signals a more disciplined and sustainable trajectory. Shares have broken above levels not seen in over two decades, pointing to a genuine shift in investor sentiment after years of mediocrity.”
The insurance sector was well bid after Beazley announced the board had agreed to a takeover by Zurich Insurance. Beazley was the FTSE 100’s top riser, jumping over 8% on the news, providing a boost to the sector, with Hiscox rising 4%.
“It was clear from previous statements that Zurich was determined to own Beazley. Having done the M&A dance for some time and tried its luck with various proposals, Zurich has finally offered the right number to win over the target’s board,” Dan Coatsworth said.
“There is always the right price for everything, and Zurich appears to have found it.”
The combination of acquisitions and strong organic growth culminated in a positive trading update for DCC, which sent shares 8% higher.
After dominating headlines over the past week, mining companies had a less dramatic session, with Fresnillo creeping up 1% and Antofagasta losing 1%.
Majedie Investments Quarterly Review: Liquid Endowment Strategy Delivering Inflation-Beating Returns
Disclaimer:
This publication is intended to be of general interest only and does not constitute legal, regulatory, tax, accounting, investment or other advice nor is it an offer to buy or sell shares in the Company (or any other investments mentioned herein).
Nothing in this publication should be construed as a personal recommendation to invest in the Company (or any other investment mentioned herein) and no assessment has been made as to the suitability of such investments for any investor. In deciding to invest prospective investors may not rely on the information in this document. Such information is subject to change and does not constitute all the necessary information to adequately evaluate the consequences of investing in the Company.
The shares in the Company are listed on the London Stock Exchange, and their price is affected by supply and demand and is therefore not necessarily the same as the value of the underlying assets. Changes in currency rates of exchange may have an adverse effect on the value of the Company’s shares (and any income derived from them). Any change in the tax status of the Company could affect the value of the Company’s shares or its ability to provide returns to its investors. Levels and bases of taxation are subject to change and will depend on your personal circumstances.
Past performance is not a reliable indicator of future returns. Any return estimates or indications of past performance cited in this document are for informational purposes only and can in no way be construed as a guarantee of future performance. No representation or warranty is given as to the performance of the Company’s shares and there is no guarantee that the Company will achieve its investment objective.
Overview
Majedie Investments (MAJE), managed by Marylebone Partners, pursues a liquid endowment-style investment strategy designed to deliver an annualised return of at least 4 per cent above UK consumer price inflation over rolling five-year periods.
The approach is long-term and fundamentally driven. Like the leading US university endowments, it seeks to emulate, the strategy avoids market timing and instead emphasises patient capital allocation, drawing on a combination of actively managed equities and a select range of complementary asset classes. Unlike many endowment portfolios, however, Majedie avoids illiquid assets such as private equity, venture capital and real estate. All holdings are marked to market, preserving liquidity and transparency.
The portfolio is organised across three segments: specialist external managers (spanning equity and absolute-return strategies), direct investments, and special investments. The latter provides exposure to differentiated opportunities that are unlikely to feature in conventional portfolios.
Since Marylebone Partners assumed responsibility for the trust at the end of January 2023, Majedie has comfortably exceeded its CPI + 4 per cent objective. Over the three calendar years to 31 December 2025, the trust generated an NAV total return of 44 per cent and a share price total return of 58 per cent, compared with cumulative UK CPI inflation of 11 per cent. The trust employs no gearing. Dividends remain a core component of total return, with quarterly distributions targeted at 0.75 per cent of quarter-end NAV, equivalent to an annualised yield of 3 per cent.
Quarterly investment performance
During the first quarter of Majedie’s financial year (October to December 2025), the Company’s NAV rose by +4.3 per cent1, with positive returns recorded in each month despite unsettled market conditions. While investors remained focused on the trajectory of monetary policy, geopolitical developments and the sustainability of valuations in artificial intelligence-related equities, Majedie’s performance was driven primarily by stock- and strategy-specific factors.
The ten largest contributors to performance comprised a broad mix: three equity-focused external managers, one absolute-return manager, four direct investments and two special investments. This breadth of contribution reflects a highly differentiated portfolio and underlines its appeal as an absolute-return proposition, particularly on a risk-adjusted basis.
One of the more striking features of recent performance has been the even distribution of returns across strategies, regions, sectors and style factors. Outcomes driven by diverse and idiosyncratic sources tend to be more resilient than those reliant on a single theme or favourable market timing. In that respect, the quarter’s results are encouraging not only in absolute terms, but also for what they suggest about the portfolio’s ability to navigate a range of market environments.
Performance by strategy
External Managers
External managers largely avoided the weaker segments of the market. Among equity-oriented strategies, Paradigm BioCapital Fund (US biotechnology) made the strongest contribution, benefiting from renewed interest in the sector amid increased M&A activity, regulatory approvals and expectations of lower interest rates. The Helikon Long/Short Fund (European special situations) also performed well, supported in particular by positions in gold mining equities.
Additional gains came from the Contrarian Emerging Markets Fund, focused on emerging market credit, and from a new allocation to the Fearnley Energy Alpha Fund, a low net exposure long/short strategy based in Oslo.
Direct Investments
The largest positive contribution from direct holdings came from Global X Copper Miners ETF. While atypical relative to Majedie’s usual preference for individual equities, the position was established to capture what we regarded as compelling value across the copper mining sector, while avoiding company-specific risk. Other contributors included Computacenter and IMI. Allfunds Group, a recent addition to the portfolio, announced it was in strategic discussions with Deutsche Börse. The principal detractor over the period was Stabilus, a European automotive supplier.
Special Investments
Performance within the special investments portfolio was mixed. Orizon, a Brazilian waste management company, delivered a strong return following improved earnings and a bolt-on acquisition. The co-investment in Oxford Biomedica also performed well, with the company entering discussions regarding a potential cash offer from EQT. VF Corporation continued its recovery, while CVS Health sustained the gains achieved earlier in the year. Not all positions met expectations over the quarter, though we remain constructive on the long-term return potential of the programme.
Market Environment
Market conditions over the quarter were unsettled. October saw a sharp, if short-lived, rise in volatility, with the VIX index briefly exceeding 25 as investors reassessed interest rate expectations amid concerns over US fiscal deficits, a potential government shutdown and heavy bond issuance.
In November, attention shifted to growing divergence among global central banks. The US Federal Reserve remained cautious on the timing of rate cuts, the Bank of Japan signalled further tightening, and the European Central Bank adopted a less accommodative tone. This lack of synchronisation unsettled equity and bond markets and contributed to increased currency volatility, notably a weaker US dollar.
By December, volatility had subsided. Economic data and corporate earnings generally surprised to the upside, reviving hopes of eventual rate cuts and supporting a year-end rally. Markets embraced a renewed ‘Goldilocks’ narrative, with the VIX ending the year close to its lows.
Credit spreads finished the quarter broadly unchanged. Precious metals reached new highs as real yields eased and geopolitical tensions persisted. Industrial metals, including copper, benefited from a softer dollar and tightening supply conditions, while energy prices declined.
Source: CBOE, Bloomberg.
Portfolio Outlook
Our objective remains unchanged: to compound shareholders’ capital at an attractive rate above inflation, while minimising the risk of permanent capital loss. Achieving this requires more than simple participation in rising markets. The liquid endowment approach depends on accessing differentiated sources of return and insisting on a margin of safety when deploying capital.
The post-pandemic investment landscape is characterised by structurally higher interest rates and greater dispersion both across and within asset classes. Such conditions are less forgiving of error but more rewarding of selectivity.
We believe our focus on highly idiosyncratic opportunities positions Majedie well to continue delivering inflation-beating returns, even if broad equity markets struggle to replicate the exceptional gains of recent years. By contrast, market performance has become increasingly dependent on a small group of very large technology companies and their ability to generate adequate returns from unprecedented investment in artificial intelligence.
While we do not doubt the transformative potential of AI, we see little justification, given our mandate, for concentrating risk in a single theme where expectations are elevated and outcomes unusually uncertain. In our view, the opportunity set beyond the AI-related mega-cap stocks is broader and often less risky, supported by lower valuations and greater earnings visibility.
Source: Bloomberg.
Accordingly, the portfolio has gravitated towards mid-cap companies—particularly outside the United States—and towards situations where identifiable catalysts reduce reliance on subjective market sentiment. In this environment, discipline and selectivity are paramount. That means concentrating capital in our highest-conviction ideas, grounded in company-specific fundamentals. The past year has shown that it is possible to generate attractive absolute returns without compromising investment principles or assuming undue risk.
Business Development
On 12 November we received regulatory approval for Marylebone Partners to become part of Brown Advisory. The team has since relocated to Brown Advisory’s Hanover Square offices and integration is progressing. There will be no change to Majedie’s mandate, investment decision-making autonomy or the relationships with its shareholders.
We believe the benefits of the partnership will become increasingly evident over time.
In a further demonstration of alignment, the management fee on Majedie was reduced by 10 basis points (up to a market capitalisation of £150 million). With the debenture now repaid and additional advantages from the Brown Advisory relationship emerging, we believe the trust is well positioned. We have recently increased our own personal investment.
Important Information:
This document has been prepared by Marylebone Partners LLP (“Marylebone”) in its capacity as alternative investment fund manager of Majedie Investments PLC (“the Company”). The document has been approved and issued by Marylebone as a financial promotion for distribution in the United Kingdom. Marylebone Partners LLP is part of Brown Advisory and is authorised and regulated by the Financial Conduct Authority (Firm Reference Number: 596118). Marylebone is registered in England and Wales (Company Number: OC381480) and has its registered office at: 1 Giltspur Street, Farringdon, London EC1A 9DD. The Company is registered in England and Wales (Company Number: 109305) and has its registered office at: Dashwood House, Old Broad Street, London, EC2M 1QS, United Kingdom.
This document is intended to be of general interest only and does not constitute legal, regulatory, tax, accounting, investment, or other advice nor is it an offer to buy or sell shares in the Company (or any other investment mentioned herein). Nothing in this document should be construed as a personal recommendation to invest in the Company (or any other investment mentioned herein) and no assessment has been made as to the suitability of such investments for any investor. In making a decision to invest prospective investors may not rely on the information in this document. Such information is subject to change and does not constitute all the information necessary to adequately evaluate the consequences of investing in the Company. Investors should not subscribe for any shares in the Company on the basis of the information in this document. Investors should refer to the information contained within the Company’s Key Information Document (KID) and the latest Annual or Half-Yearly Financial Reports before making any decision to invest. Investors should also seek independent professional advice before making any decision to invest in the Company.
Capital at risk. The value of shares in the Company (and any income derived from them) can go down as well as up and you may not get back the amount that you have invested. The shares in the Company are listed on the London Stock Exchange and their price is affected by supply and demand and is therefore not necessarily the same as the value of the underlying assets. Changes in currency rates of exchange may have an adverse effect on the value of the Company’s shares (and any income derived from them). Any change in the tax status of the Company could affect the value of the Company’s shares or its ability to provide returns to its investors. Levels and bases of taxation are subject to change and will depend on your personal circumstances. The Company can borrow money to make investments (known as ‘gearing’), which can enhance returns in a rising market but will magnify losses if the value of the Company’s investments falls. You should consult your own professional advisers on the tax implications of making an investment in, holding or disposing of any of the Company’s shares, and on the receipt of dividends.
Past performance is not a reliable indicator of future returns. Any return estimates or indications of past performance cited in this document are for information purposes only and can in no way be construed as a guarantee of future performance. No representation or warranty is given as to the performance of the Company’s shares and there is no guarantee that the Company will achieve its investment objective.
For more information on the Company, and the risks associated with an investment in the Company’s shares, please refer to the Company’s Key Information Document (KID) and the latest Annual or Half-Yearly Financial Reports, copies of which are available at: https://www.majedieinvestments.com/.
This document is not intended for distribution in whole or in part in or into the United States, the European Economic Area, Australia, Canada, Japan, the Republic of South Africa or any other jurisdiction where the distribution of this document could be unlawful. The distribution of this document in other jurisdictions may be restricted by law and the persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws or the laws of any such jurisdiction.
Marylebone has taken all reasonable care to ensure that the information contained in this document is accurate at the time of publication, however it does not make any guarantee as to the accuracy of the information provided. Marylebone has no obligation to provide further information, to update the information or correct any inaccuracies identified. While many of the thoughts expressed in this document are presented in a factual manner, the discussion reflects only Marylebone’s beliefs and opinions about the financial markets in which it invests portfolio assets following its investment strategies, and these beliefs and opinions are subject to change at any time. Where information provided in this document contains “forward-looking” information including estimates, projections and subjective judgment and analysis, no representation is made as to the accuracy of such estimates or projections or that such projections will be realised. Comparison to an index, where shown, is for information only and should not be interpreted to mean that there is a correlation between the portfolio and the index.
To the fullest extent permitted by law, neither Marylebone nor the Company shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Should you undertake any investment or activity based on information contained in this document, you do so entirely at your own risk.
AIM movers: Positive drill results from Zambia for Tertiary Minerals and YouGov trading in line
Tertiary Minerals (LON: TYM) revealed results for four holes drilled during the phase 3 programme at Target A1 at the Mushima North project in Zambia. They indicate further high-grade silver and copper mineralisation with significant potential for it to be extended. The share price jumped 27.8% to 0.115p.
Advanced coating provider Hardide (LON: HDD) shares continue their upward trajectory following yesterday’s order from a North American energy company worth $1m. This should be delivered in the second half. Cavendish upgraded its earnings forecast by one-quarter to 1.9p/share on a £1m increase in forecast revenues to £9m. The share price is a further 13.3% higher at 23.5p.
Corero Network Security (LON: CNS) chief executive Carl Herberger bought 138,000 shares at 13.26p/share. He owns 1.84 million shares. The share price rose 5.16% to 13.25p.
Yesterday afternoon, Tap Global Group (LON: TAP) said that the High Court of Justice Business and Property Courts of England and Wales has dismissed all claims against chief executive Arsen Torosian and Tap N Go. Tap Global was dismissed from the proceedings in 2024. The share price improved 3.33% to 1.55p.
FALLERS
Tiger Alpha (LON: TIR) has deregistered its KDN-1 subnet investment within the Bittensor network. There was an initial investment of 200 TAO at a cost of $86,000 and following deregistration 900 TAO were issued at a value of $161,875. The share price dipped 10.5% to 0.425p.
Alien Metals (LON: UFO) joint venture partner West Coast Silver has announced assay results from the Elizabeth Hill silver project in the Pilbara region of Western Australia. Silver was intersected in multiple drill holes and there were some exceptionally high grades and broad zones of mineralisation. There are indications of opportunities to the north west of any previous drilling. The exploration continues and West Coast Silver has increasing confidence in the potential for the project. The share price fell 9.52% to 0.19p.
Berenberg has cut its share price target for Next 15 Group (LON: NFG) from 580p to 510p, but it retains the buy recommendation. The share price slipped 10.8% to 291.75p.
Marketing services provider YouGov (LON: YOU) traded in line with expectations in the first half. Revenues grew in low single digits despite a slight decline in YouGov Shopper. The data products division was flat, and the research division grew. There is positive momentum going into the second half, but management is cautious. Operating profit will depend on cost control. The interim results will be published on 24 March. The share price declined 6.9% to 205.75p.
Gold producer and explorer Ariana Resources (LON: AAU) has settled outstanding loan balances due under the facility agreement with RiverFort Global Opportunities PCC, which issued a conversion notice. The outstanding balance of $782,575 was converted into 40.4 million shares and these are likely to be admitted to trading on 5 February. RiverFort is not likely to be a long-term shareholder so these shares could be sold in the near-term. The share price slid 6.25% to 1.95p.
GSK shares gain on upbeat final results
GSK reached its highest level since 2021 on Wednesday after the pharma group announced upbeat 2025 results and an encouraging pipeline of new treatments.
GSK reported total sales of £32.7 billion for 2025, up 7% at constant exchange rates, driven by robust growth across its Specialty Medicines portfolio.
The pharmaceutical giant’s Specialty Medicines division posted sales of £13.5 billion, rising 17%. Oncology led the way with 43% growth, whilst HIV sales climbed 11% to £7.7 billion. The company’s Respiratory, Immunology & Inflammation franchise grew 18% to £3.8 billion.
Vaccine sales reached £9.2 billion, up 2%. Shingrix, GSK’s shingles vaccine, advanced 8% to £3.6 billion. Meningitis vaccines rose 12% to £1.6 billion.
Investors were clearly pleased to see operating profit double amid rising sales as shares headed towards the 2,000p level.
“GSK enters 2026 with a renewed sense of purpose and, for the first time in years, looks ready to step out from the long shadow of AstraZeneca. Under new CEO Luke Miels, momentum has accelerated as pipeline execution sharpens and operational delivery improves,” explained Mark Crouch, market analyst for eToro.
“A Q4 sales and profit beat was driven by broad-based double-digit growth across higher-value specialty franchises. Oncology continues to stand out, while Respiratory, Immunology and HIV all delivered excellent gains, reinforcing confidence that GSK’s growth is by no means reliant on a single pillar.
“Management now guides to 3–5% revenue growth in 2026, following a strong 7% advance in 2025. While that implies moderation, it also signals a more disciplined and sustainable trajectory. Shares have broken above levels not seen in over two decades, pointing to a genuine shift in investor sentiment after years of mediocrity.”
GSK shares were 2.3% higher at the time of writing.
AIM movers: Hardide wins another contract sparking upgrade and joint venture for Xtract Resources
Advanced coating provider Hardide (LON: HDD) continues to win new business and this has sparked an upgrade in the forecast for 2025-26. The latest order is from a North American energy company, and it is worth $1m. This should be delivered in the second half. Cavendish has upgraded its earnings forecast by one-quarter to 1.9p/share on a £1m increase in forecast revenues to £9m. That shows the operational gearing of the business. The share price jumped 31.25% to 21p.
Xtract Resources (LON: XTR) has agreed a joint venture with Oval Mining and Cooperlemon Consultancy to develop the Silverking copper mining operations. This project is within three months of production commencing. The share price gained 31.3% to 1.05p.
Chesterfield Special Cylinders (LON: CSC) says the defence order book continues to strengthen following a new contract for specialised pressure vessels for French navy submarine. Management believes it could gain a major contract for hydrogen storage systems during this year. This year will be second half weighted and full year revenues are expected to be significantly higher. Revenues are forecast to be 18% ahead at £19.5m and the company should move close to breakeven. The share price improved 13.7% to 54p.
Energy efficiency services provider Earnz (LON: EARN) released a positive statement concerning the recent Government announcement of its Warmer Homes Plan. This covers solar panel, heat pump and batteries installations. Earnz says that there is increasing order activity from the social housing sector, which is seeking to access the £15bn of potential spending to make housing more energy efficient. The share price is 11.7% higher at 5.75p.
Cyber security services and software provider Shearwater Group (LON: SWG) has secured a three-year contract renewal worth £9m. This is an expansion of the previous contract and relates to email security and inside threat management. This helps to underpin the expectation of a pre-tax profit of £1.1m in the year to June 2026. The share price increased 8.51% to 51p. The shares are trading on eleven times forecast earnings and net cash of £7m is forecast for the end of June 2026.
FALLERS
Trellus Health (LON: TRLS), which has developed a digital platform to manage chronic health conditions, says it has enough funding for most of the first quarter of 2026, having reduced cash burn to $400,000/month, and it is in talks for additional funding. Revenues were $545,000 in 2025. Last year, the agreement with Pfizer to license patient support educational content for inclusion in Pfizer’s IBD digital application was renewed and it could be expanded this year. Trellus Health has begun launching the programme to support recruitment and enrolment optimisation for an ongoing mid-stage immunology and inflammation clinical trial sponsored by Takeda. The share price declined 29% to 0.675p.
Oil and gas producer Jadestone Energy (LON: JSE) averaged 19,829 boe/day, which was at the lower end of the guidance range. Production at Akatara was ahead of plan. Production costs fell from $282.8m to $243m. Revenues edged up from $395m to $408.1m after a 13% reduction in the realised oil price. Net debt was $89m at the end of 2025. The lower oil price outlook will spark a non-cash impairment of assets in the 2025 accounts. The share price fell 7.48% to 23.5p.
Content creation and advertising services provider LBG Media (LON: LGB) increased revenues 10% to £92.2m in the year to September 2025. Pre-tax profit improved from a pro forma £20.3m to £20.8m. Zeus has upgraded its 2025-26 forecast revenues by 6% to £108m, while pre-tax profit is maintained at £21.7m because of the change in the mix of revenues. The share price slid 5.49% to 86p.
PACSCo (LON; PACS), formerly Agriterra, shares returned from suspension down 4.22% to 0.431p. This followed publication of full year and subsequent interim results. The main business has been sold, and the company is a shell.
FTSE 100 gives up early gains as RELX sinks
The FTSE 100 touched a fresh intraday record high on Tuesday as gold and silver prices stabilised, but the gains evaporated as the session progressed, with RELX sinking 10%.
London’s leading index benefited from a rebound in diversified miners on Tuesday, as investors took a broad-brush approach to piling back into the sector.
The FTSE 100 touched fresh intraday highs of 10,373 before easing back. Gold was 4% higher at 4,920 at the time of writing.
However, mounting losses elsewhere eventually pushed the index lower, with sharp declines for RELX, Experian, and Pearson as a new AI tool potentially curbing demand for their services.
RELX was the FTSE 100 top faller after AI firm Anthropic revealed a new AI tool that threatens legal software providers.
Precious metals
Unsurprisingly, Endeavour Mining was top of the leaderboard again with a 5% rally while Fresnillo added 3% as gold and silver price firmed up.
“The sharp sell-off in gold over the past few days has encouraged investors to buy on the dip, scooping up the precious metal in their droves and making it sparkle again,” explained Russ Mould, investment director at AJ Bell.
“Gold has delivered such strong rewards to investors over the past year that many people will have treated the recent sell-off as a New Year’s sale, a chance to grab more metal at a discounted price. Gold bugs have doubled down rather than run for the hills.”
Anglo American and Antofagasta were 3% higher.
European stocks also received a boost to sentiment from a strong session in Asia after India struck a trade deal with the US.
“With the sharp cut in US tariffs from 50% to 18% in the US-India deal, and with this coming shortly after India sealed a landmark Free Trade Agreement with the European Union, the timing alone could reset investor sentiment and growth expectations significantly after a weak 2025,” explained James Thom, Senior Investment Director of Asian Equities at Aberdeen Investments.
Improving sentiment helped lift cyclical sectors, with banks among the risers. Lloyds added 1.3% while NatWest gained 1.2%.
But for all the positivty the threat of an AI tool to London’s AI adopters cast a shadow over trade on Tuesday.
Five tips for using your ISA allowance by Charles Stanley
With the deadline to use your ISA allowance fast approaching, Charles Stanley has provided some helpful tips to make the most of the tax wrapper.
Touching on subjects including asset allocation and which service to use, Rob Morgan, Chief Investment Analyst at Charles Stanley, part of Raymond James Wealth Management, breaks down five tips for utilising your allowance:
1. Leave your ISA in cash for now if you can’t decide
This tax year (2025/26), you can add up to £20,000 to one ISA or split the money between several of the various types; the most used being Cash ISAs and Stocks & Shares ISAs. Whichever type of ISA you invest in you pay no income or capital gains tax (CGT) on the returns – no matter how much they are.
If you’re unsure where to invest, you can always secure this year’s allowance with cash now and decide later. Generally, there is no charge for holding cash in an ISA. However, take care not to wait in cash too long. Interest on cash in a Stocks & Shares ISA is unlikely to significantly outpace increases in the cost of living, and for the longer term you stand to be better rewarded by investing.
2. Consider managed investments
Choose a multi asset fund that offers a diversified portfolio in one easy-to-buy investment, designed to meet a broad risk profile. This way, your funds are actively managed by a dedicated portfolio management team, which means you do not need to monitor and change individual funds, shares or other assets in your portfolio – it’s done for you.
Some multi-asset funds invest in other funds as well as other assets across a variety of areas. Not having all your eggs in one basket means you are not reliant on specific investments or areas performing well and you benefit from day-to-day portfolio management.
3. Get some ideas to make your own decisions
Investors who wish to select investments themselves can choose from the exceptionally broad range available: thousands of funds, UK and overseas shares, gilts, bonds, investment trusts and ETFs.
With so many possible investments selecting individual ones can be a daunting prospect. To help narrow down the field, look through your provider’s preferred lists, which should highlight what is considered to be good-quality options within their respective areas for new investment.
4. Diversify
If you invest too much in one area you are reliant on its fortunes. Diversification allows you to secure strong long-term returns but without excessive risk and reliance on one or a few areas. It’s the process of dividing your investments between different investments, as well as different asset classes, such as shares, bonds, property, cash and others.
Investors often use funds to provide wide-ranging exposure to a market or asset class. For funds investing in shares, a single active fund typically offers 50 to 80 holdings – ideal for the investor without the time or inclination to select their own. By holding several funds specialising in different areas, you can build a very diversified portfolio quickly and simply.
5. Consider accounts for your family
With inflation taking bites out of spending power and more tax rises ahead, it is more important than ever to ensure your finances are as tax efficient as possible.
If you are married or in a civil partnership, it’s possible to organise your affairs efficiently so that tax-free allowances are maximised. By using two ISA limits a couple can shelter up to £40,000 each year from tax. Transfers between spouses and civil partners are tax free so you can shuffle any money earmarked for investing between you and make the most of the ISA allowances.
You can also consider Junior ISAs for children or grandchildren to help them build tax efficient savings or investments of their own.