Weekly Newsletters
10 July 2020 | William Buckhurst
That Was The Week That Was
MACRO
- Rishi Sunak’s summer statement unveiled another £30bn stimulus package and was generally well received
- In the US, coronavirus cases continue to rise in the South and West and state governors are under pressure to make the wearing of masks mandatory
- The European Commission downgraded its economic forecasts for the Eurozone and now expects the region to contract 8.7% this year
STATISTIC OF THE WEEK
Following another big move upwards this week in the new world economy technology stocks, the “big five” - Amazon, Apple, Microsoft, Alphabet and Facebook - now have a cumulative market capitalisation of just under $6.6 trillion
COMPANY NEWS
Warren Buffet’s Berkshire Hathaway made its first acquisition in some time, purchasing natural gas pipeline and storage assets from Dominion Energy paying $4billion whilst assuming an additional $5.7billion in debt
Persimmon showed first half revenues down 32%, forward sales robust, and no impact as yet on pricing
Walmart closed up on the week after reporting it was introducing a competitor to Amazon Prime. The service called Walmart+ will cost $98 per year and include same day delivery of groceries and general merchandise.
FUNDS
We had updates from two European equity funds that owned shares in Wirecard before the alleged fraud was uncovered. Both stated that, despite warning signs, they had been reassured by the CEO owning a significant number of shares in the company and therefore his interests being aligned with shareholders. Another European equity manager, however, is on record as having said “there were more red flags than a communist party rally”
SMALL-CAP NEWS
Boohoo: guilty until proven innocent. One of the darlings of the AIM market in recent years was questioned about the work practices attributed to factories in its supply chain. This resulted in a 50% decline in the share price. A further announcement declaring no evidence of malpractice cancelled out 25% of this fall. A timely reminder of the analysis that is needed in focusing on ESG considerations
THIS WEEK IN HISTORY
1785: The United States formally adopts the term dollar as the name of its currency. The previous currency, the “Continental” was used during the Revolutionary war, but due to high inflation had been rendered nearly worthless.
2004: The 7/7 bombings in London resulting in a tragic loss of life by commuters on the public transport system. The FTSE 100 Index fell by about 200 points during the two hours after the first attack but recovered into the close.
RE-OPENING TIMES
Figures from the UK rail network show passenger numbers still at only 13% of normal levels, with many people still not yet returning to work. While the empty trains run uncharacteristically smoothly with very few passengers, the chief executive of Transport Focus has likened it to a “beautiful model railway”
MARKET DATA
|
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
|
UK Equities (% return GBP) |
-0.99 |
-3.72 |
-17.32 |
8.96 |
|
World Equities (% return GBP) |
-0.02 |
0.59 |
3.65 |
79.73 |
|
10 Year US Treasury Yield (%) |
0.65 |
0.75 |
2.07 |
2.42 |
|
GBP / USD (fx rate) |
1.26 |
1.27 |
1.25 |
1.55 |
As at 10th July 2020. Source: Financial Express
This publication has been produced by Vermeer Investment Management Limited (VIM) trading as Vermeer Partners. It is provided for information purposes only. VIM makes no express or implied warranties and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to any data included in this publication. VIM will not treat unauthorised recipients of this publication as its clients. Prices shown are indicative and VIM is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Without limiting any of the foregoing and to the extent permitted by law, in no event shall VIM, nor any of its officers, directors, partners, or employees, have any liability for (a) any special, punitive, indirect, or consequential damages; or (b) any lost profits, lost revenue, loss of anticipated savings or loss of opportunity or other financial loss, even if notified of the possibility of such damages, arising from any use of this publication or its contents. Other than disclosures relating to VIM, the information contained in this publication has been obtained from sources that VIM believes to be reliable, but VIM does not represent or warrant that it is accurate or complete. VIM is not responsible for, and makes no warranties whatsoever as to, the content of any third-party website referred to herein or accessed via a hyperlink in this publication and such information is not incorporated by reference. The views in this publication are those of the author(s) and are subject to change. VIM has no obligation to update its opinions or the information in this publication. This publication does not constitute personal investment advice or take into account the individual financial circumstances or objectives of the client who receives it. Any securities discussed herein may not be suitable for all investors. VIM recommends that investors independently evaluate each issuer, security or instrument discussed herein and consult any independent advisors they believe necessary. The value of and income from any investment may fluctuate from day to day as a result of changes in relevant economic markets (including changes in market liquidity). The information herein is not intended to predict actual results, which may differ substantially from those reflected. Past performance is not necessarily indicative of future results. This material has been issued and approved for distribution in the UK and European Economic Area by VIM.
©2019 Vermeer Investment Management Limited. All rights reserved. No part of this publication may be reproduced or redistributed in any manner without the prior written permission of VIM. VIM is authorised and regulated by the Financial Conduct Authority (FRN: 710280) and is incorporated in England and Wales (company number: 09081916).
Other Recent Weekly Newsletters
That Was The Week That Was
26 November 2021
That Was The Week That Was
19 November 2021
That Was the Week That Was
12 November 2021
That Was The Week That Was
05 November 2021
That Was The Week That Was
29 October 2021
That Was The Week That Was
22 October 2021
That Was The Week That Was
15 October 2021
That Was The Week That Was
08 October 2021
That Was The Week That Was
01 October 2021
That Was The Week That Was
24 September 2021
That Was The Week That Was
17 September 2021
That Was The Week That Was
10 September 2021
That Was The Week That Was
03 September 2021
That Was The Week That Was
27 August 2021
That Was The Week That Was
20 August 2021
That Was The Week That Was
06 August 2021
That Was The Week That Was
30 July 2021
That Was The Week That Was
23 July 2021
That was The Week That Was
16 July 2021
That Was The Week That Was
09 July 2021
That Was The Week That Was
02 July 2021
That Was The Week That Was
25 June 2021
That Was The Week That Was
18 June 2021
That Was The Week That Was
11 June 2021
That Was The Week That Was
04 June 2021
That Was The Week That Was
28 May 2021
That Was The Week That Was
21 May 2021
That Was The Week That Was
14 May 2021
That Was The Week That Was
07 May 2021
That Was The Week That Was
30 April 2021
That Was The Week That Was
23 April 2021
That Was The Week That Was
16 April 2021
That Was The Week That Was
09 April 2021
That Was The Week That Was
02 April 2021
That Was The Week That Was
26 March 2021
That Was The Week That Was
19 March 2021
That Was The Week That Was
12 March 2021
That Was The Week That Was
05 March 2021
That Was The Week That Was
26 February 2021
That Was The Week That Was
19 February 2021
That Was The Week That Was
12 February 2021
That Was The Week That Was
05 February 2021
That Was The Week That Was
29 January 2021
That Was The Week That Was
22 January 2021
That Was The Week That Was
15 January 2021
That Was The Week That Was
08 January 2021
That Was The Week That Was
18 December 2020
That Was The Week That Was
11 December 2020
That Was The Week That Was
04 December 2020
That Was The Week That Was
27 November 2020
That Was The Week That Was
20 November 2020
That Was The Week That Was
13 November 2020
That Was The Week That Was
06 November 2020
That Was The Week That Was
30 October 2020
That Was The Week That Was
23 October 2020
That Was The Week That Was
16 October 2020
That Was The Week That Was
09 October 2020
That Was The Week That Was
02 October 2020
That Was The Week That Was
25 September 2020
That Was The Week That Was
18 September 2020
That Was The Week That Was
11 September 2020
That Was The Week That Was
04 September 2020
That Was The Week That Was
28 August 2020
That Was The Week That Was
21 August 2020
That Was The Week That Was
14 August 2020
That Was The Week That Was
07 August 2020
That Was The Week That Was
31 July 2020
That Was The Week That Was
24 July 2020
That Was The Week That Was
17 July 2020
That Was The Week That Was
10 July 2020
That Was The Week That Was
03 July 2020
That Was The Week That Was
26 June 2020
That Was The Week That Was
19 June 2020
That Was The Week That Was
12 June 2020
That Was The Week That Was
05 June 2020
That Was The Week That Was
29 May 2020
That Was The Week That Was
22 May 2020
That Was The Week That Was
15 May 2020
That Was The Week That Was
08 May 2020
That Was The Week That Was
01 May 2020