Weekly Newsletters

27 November 2020 | William Buckhurst

That Was The Week That Was

MACRO

  • UK Chancellor Rishi Sunak’s spending review forecasts UK government borrowing to be the highest ever in peacetime and he warned the country of a sharp economic contraction
  • Markets responded very well to Joe Biden’s choice of Janet Yellen as his Treasury Secretary when he takes office
  • Expectations of further asset purchases by the European Central Bank continued to stoke a relentless rally in eurozone debt as Portugal’s 10-year bonds fell into negative yield territory

STATISTIC OF THE WEEK

Despite all the doom and gloom surrounding the UK economy, some more upbeat statistics: the OBR’s main forecast suggest that this recession will be no worse than three  of the last four; and the time it will take for the economy to recover will be shorter than after the 2008 financial crisis

COMPANY NEWS

  • Compass, as expected, showed much lower profitability for the year ending 30 Sept with operating margins falling from around 7% to 2.5%
  • Shares in AstraZeneca finished lower on the week after it stated that it was likely to conduct additional global trials on its COVID-19 vaccine
  • Salesforce revealed a takeover approach for Slack increasing its effort to compete with Microsoft Teams direct messaging product

FUNDS

A new trust targeting energy infrastructure assets on a global basis point to a McKinsey report estimating that renewable power generation will require $4.2tn of private capital investment by 2040. 850 million people around the world still do not have access to electricity

SMALL-CAP NEWS

Kistos, the latest energy company to be set up by Andrew Austin, listed this week. Rockrose, which was the previous iteration, made initial investors 48x their money focusing on the oil and gas sector in the North Sea. In a nod to the changing energy landscape, Kistos will be solely focusing on gas assets as well as infrastructure and trying to lengthen the assets’ life until decommission.  This will be a cash shell until the first deal is announced which is expected to be Q1 2021

THIS WEEK IN HISTORY

1990: Margaret Thatcher’s resignation saw her leaving Downing Street in tears after a transformational premiership lasting 11 years  

2001: Enron stock falls 75% as Dynegy withdraws its offer to merge with the company. Enron declared bankruptcy just a few days later

 LOCKDOWN II

A sign of the times as eagle-eyed cricket fans will have spotted that the new sponsors of the current Australia ODI series are Dettol. With traditional drinks, hospitality or financial services sponsorship brands still reeling from the Covid-19 crisis, it is the cleaning supplies and disinfectant business owned by Reckitt Benckiser that is currently hogging the sponsor boards

MARKET DATA

% returns

1 Week

1 Month

1 Year

5 Years

UK Equities (% return GBP)

0.27

11.74

-12.99

18.66

World Equities (% return GBP)

2.00

7.10

11.37

95.04

10 Year US Treasury Yield (%)

0.84

0.79

1.77

2.22

GBP / USD (fx rate)

1.33

1.30

1.29

1.50

 As at 27th November 2020. Source: Financial Express

Download the PDF here

 

 

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.

Other Recent Weekly Newsletters
That Was The Week That Was

30 September 2022

That Was The Week That Was

23 September 2022

That Was The Week That Was

16 September 2022

That Was The Week That Was

09 September 2022

That Was The Week That Was

02 September 2022

That Was The Week That Was

26 August 2022

That Was The Week That Was

19 August 2022

That Was The Week That Was

05 August 2022

That Was The Week That Was

29 July 2022

That Was The Week That Was

22 July 2022

That Was The Week That Was

15 July 2022

That Was The Week That Was

08 July 2022

That Was The Week That Was

01 July 2022

That Was The Week That Was

24 June 2022

That Was The Week That Was

17 June 2022

That Was The Week That Was

10 June 2022

That Was The Week That Was

03 June 2022

That Was The Week That Was

27 May 2022

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

Back to News & Insights

Terms & Conditions

The information and services described on this website are not intended to be used by, or to be available to, persons accessing the website from outside the United Kingdom.

The value of investments and the income derived from them may go down as well as up and you may not receive back all the money which you invest.

The investments and investment services described or recommended on this website may not be suitable for all people.

Any information relating to past performance of an investment or investment service is not a reliable indicator of future performance.

No tax advice is provided and clients will need to seek advice from their independent tax advisor.

Fluctuations in the rate of exchange may have an adverse effect on the value, price or income of non-sterling denominated investments.

Vermeer Investment Management Limited, its associates, employees and/or clients may own or have a position in securities referred to on this website or may have provided advice or investment services in relation to any such security.

The Website is for information purposes only. Information contained on it is not intended to be an offer to buy or sell securities and this website should not be regarded as an offer or solicitation to conduct investment business as defined in section 21 of the UK Financial Services and Markets Act 2000 (FSMA).

Nothing on this website is intended to exclude or restrict any duty or liability which Vermeer Investment Management Limited may have under the FSMA (or any subsequent amending or replacement legislation) or the rules and regulations for the conduct of business made thereunder.

For the purposes of FSMA this website has been approved by Vermeer Investment Management Limited, which is authorized & regulated by the Financial Conduct Authority.

Please read our Privacy Policy. By clicking ‘accept’ you agree to be bound by the terms of this notice.

Accept