News & Insight • Weekly Newsletters

22 January 2021 | William Buckhurst

That Was The Week That Was

MACRO

• The UK PMI fell to 40.6 in January, the lowest reading in eight months and well below the 45.5 level expected
• In the US, new President Biden hit the ground running with a slew of executive orders, including a proposal to re-join the Paris climate accord
• China GDP numbers for the fourth quarter came in at 6.5% making it one of the few countries to have seen economic growth in 2020

STATISTIC OF THE WEEK

Amid growing demand for investing in Chinese equity funds, numbers this week showed that foreign direct investment into China increased 6.2% year-on-year to a record high of CNY 999.98 billion or USD 144.37 billion in 2020. Foreign investment in the services industry was up 13.9% at CNY 776.8 billion during that period, while that in the high-tech service sector surged 28.5%.

COMPANY NEWS

• Siemens enjoyed very good quarterly results driven by growth in its digital industries business
• Netflix shares rose on the back of solid subscription numbers and an announcement that they are on the cusp of finally becoming cashflow positive
• Experian showed its resilience as organic revenue grew 7% over the last quarter and said that it expects to deliver a strong performance for the year ahead

MARKET POLITICS

Pete Buttigieg, Joe Biden’s new transportation secretary, hinted there could be new regulations or legislation governing self-driving cars to boost development, which would transform the industry.

SMALL-CAP NEWS

There was a great contract win in the Far East from Strix. Predominantly a company that makes kettle elements (and controls), they have diversified their business to be experts in the purification of water – highlighted by the contract with Chia Tai Group (livestock) for their HaloPure technology. It is well set for the anticipated policy change in China which will require regulated water for use in all livestock farms, hospitals and clinics.

THIS WEEK IN HISTORY

1980: the silver price reaches its all-time inflation-adjusted high

1984: Steve Jobs unveils the first Apple Mac computer. The original Macintosh sold for $2,495 (more than $6,000 in today’s dollars). Apple shipped 70,000 Macs over the following five months

RE-OPENING TIMES

Non-European users of WhatsApp learnt that as of February 8^th they will no longer be able to opt-out of their data being shared with Facebook, prompting users to flock to rival messenger groups such as Telegram and Signal. It was reported that 8.8m users worldwide signed up to Signal last week

MARKET DATA

% returns	1 Week	1 Month	1 Year	5 Years
UK Equities (% return GBP)	-0.68	3.84	-10.37	34.78
World Equities (% return GBP)	0.85	1.66	12.23	112.40
10 Year US Treasury Yield (%)	1.09	0.93	1.77	2.07
GBP / USD (fx rate)	1.37	1.34	1.31	1.42

 As at 22^nd January 2021. 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.

 

---

Key Points

•