UK - Fund managers are urging investors to shun the telecoms sector until new technology, such as 3G, is established.
But SG Asset Management director Alan Torry warns that this could be some way off and the market will remain in “total disarray” until then.
“Technology companies – epitomised by Marconi in the UK – are being hit because telecoms service companies are not spending.
Not only have new providers stopped spending money, but the traditional firms are no longer spending because much of their competition has fallen away.”
Threadneedle Investments head of equities Michael Taylor said the telecoms market was likely to take a further nose-dive since Vodafone announced it was to continue on the acquisition trail.
“This is a real spanner in the works of the telecoms sector.
It’s not really what the market wanted – it has seen too much underperformance. There is a lot of debt among these companies and 3G technology is still unproved.”
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
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The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.