News & Insight Weekly Newsletters

18 December 2020 | William Buckhurst

That Was The Week That Was


  • In the UK, London and many surrounding areas were sent into Tier 4 with severe restrictions imposed over Christmas
  • Still no sign of a UK / EU trade deal with fisheries remaining a sticking point
  • Another very strong industrial output figure from China, up 7% in November


This year the world’s non-financial firms have raised an eye-popping $3.6 trillion in capital from public investors, more than any other year. Corporate financiers, fearing an abyss back in March, have never been busier.


  • Pharmaceutical firm Eli Lilly said it will boost its quarterly dividend to 85 cents a share, up 15% from 74 cents. The stock, which has returned about 32% this year, is yielding 2%
  • FedEx results continue to show the very high strength of e-commerce during the pandemic
  • After two quarters of declines during the COVID-19 pandemic, Nike showed sales growth of 7% compared to the same quarter last year


A meeting with a global financials fund highlighted the extent to which central banks have extended monetary stimulus in response to the pandemic. 25% of all US dollars ever “printed” have been in 2020 alone.


As some market commentators (Odey etc.) had expected, there was another bid for Codemasters this time coming from Electronic Arts, another US gaming stalwart.  We expect this trend of large international companies picking off small UK companies with world leading technology to continue next year.

In the same gaming sector Keywords Studios continued with their acquisition strategy paying up to $50m for the US-based game development services company High Voltage


1825:  London bank Pole & Co. collapses following a speculative boom in South American mining companies, causing bank runs and immediately bringing down 40 other commercial banks. In the Panic of 1825, stocks fell 80%, troops were called to control riots, and the Bank of England nearly failed

1903: The age of the airplane is underway as Orville and Wilbur Wright make their first successful flight at Kitty Hawk, North Carolina


As we reach that time of year when stock market experts attempt to predict the future, we will resist that particular temptation.  However, we are reminded by recently published JP Morgan research that over the past 20 years, consensus forecasts have correctly called the direction of US treasury yields only 40% of the time, the S&P500 only 50% of the time and the dollar 67% of the time. For what it’s worth, the 2021 consensus forecasts are bullish on equities, credit, and EM; and bearish on DM bonds and the US dollar....


% returns

1 Week

1 Month

1 Year

5 Years

UK Equities (% return GBP)





World Equities (% return GBP)





10 Year US Treasury Yield (%)





GBP / USD (fx rate)





 As at 18th December 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. 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).

Back to News & Insights