
Weekly Newsletters
16 October 2020 | William Buckhurst
That Was The Week That Was
MACRO
- The Bank of England has written to all the major UK banks asking for their thoughts on negative rates
- In the US, first-time claims for unemployment benefits totalled 840,000 last week, higher than expected in another sign that the spike in job growth over the summer has cooled heading into Election Day
- It was announced on Thursday that London and other regions of the UK would be moved to a tier 2 level of restrictions from midnight on Friday
STATISTIC OF THE WEEK
Highlighting the difficulties of not just developing a vaccine but also delivering it, a leading healthcare fund this week showed us how the potential size of the delivery is enormous. Just providing a single dose to 7.8 billion people around the world would fill 8,000 (Boeing) 747 cargo aircraft
COMPANY NEWS
- JP Morgan reported results better than expected, beating on the bottom line, and setting aside much lower CV19 reserves than in its two previous quarters
- LVMH enjoyed good quarterly results highlighting strong growth in its fashion and leather goods division
- Randall & Quilter reported good earnings growth and showed its fast-growing program management business entering profitability for the first time
FUNDS
Temple Bar’s new managers RWC show that the UK market is at its biggest discount to global equities in over 30 years and that value stocks stand at a record discount to growth stocks
SMALL-CAP NEWS
Volex updated the market this week saying trading was ahead of expectations and had improved since the AGM at the end of July. They expect H1 sales to be at least $200m and we look forward to reading the print on 12th November. Another pointer to the trend of consumers upgrading their electrical goods whilst at home. Volex also supplies cables into data centres and electric vehicles and these themes obviously continue to grow meaningfully
THIS WEEK IN HISTORY
1915: The New York Stock Exchange changes the way stocks are quoted. They will now be quoted in terms of dollars per share, instead of percent of par
- 2014: A “flash crash” leads to the most volatile day in US Treasury markets in 50 years. The yield on the US 10-year note fell 34 basis points from 2.2% to as low as 1.86% in a matter of just minutes. The sharp turn lower began at 9:34 am, and yields had recovered by 9:45.
IT ALL ENDS IN TIERS
In perhaps the true tragedy of Coronavirus, Nestle announce that disruption caused by the pandemic means that Quality Street were unable to produce the hotly anticipated new light blue wrapper chocolate caramel brownie. Fans are concerned that this could be the first Christmas where the Quality Street tin looks set to be one flavour short of the full range
MARKET DATA
% returns |
1 Week |
1 Month |
1 Year |
5 Years |
UK Equities (% return GBP) |
-1.84 |
-2.94 |
-16.68 |
9.79 |
World Equities (% return GBP) |
0.24 |
2.28 |
12.51 |
95.82 |
10 Year US Treasury Yield (%) |
0.75 |
0.69 |
1.75 |
2.04 |
GBP / USD (fx rate) |
1.29 |
1.30 |
1.28 |
1.54 |
As at 16th October 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).
Key Points
•
Other Recent Weekly Newsletters
That Was The Week That Was
13 May 2022
That Was The Week That Was
06 May 2022
That Was The Week That Was
29 April 2022
That Was The Week That Was
22 April 2022
That Was The Week That Was
15 April 2022
That Was The Week That Was
08 April 2022
That Was The Week That Was
01 April 2022
That Was The Week That Was
25 March 2022
That Was The Week That Was
18 March 2022
That Was The Week That Was
11 March 2022
That Was The Week That Was
03 March 2022
That Was The Week That Was
25 February 2022
That Was The Week That Was
18 February 2022
That Was The Week That Was
11 February 2022
That Was The week That Was
04 February 2022
That Was The Week That Was
28 January 2022
That Was The Week That Was
21 January 2022
That Was The Week That Was
14 January 2022
That Was The Week That Was
07 January 2022
That Was The Week That Was
17 December 2021
That Was The Week That Was
10 December 2021
That Was The Week That Was
03 December 2021
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