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.”
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers