Weekly Newsletters

29 January 2021 | William Buckhurst

That Was The Week That Was

MACRO

  • The UK unemployment numbers come in at just over 5% but continue to be dampened by the furlough schemes while the redundancy rate has picked up materially
  • A global semiconductor shortage has hit global carmakers and could also disrupt orders for memory chips used in smartphones
  • In the US, the new Biden administration said that it would put Trump’s 2020 trade deal with China “under review”

COMPANY NEWS

  • Microsoft announced revenues up 17%, continuing to show how it invests to stay ahead while distributing excess cash to shareholders
  • LVMH reported quarterly revenue down only 3% as sales from its fashion brands offset areas such as Champagne that have slowed during the pandemic
  • Diageo showed its resilience in the face of continued lockdowns and closures of hospitality venues with net organic sales up 1% over the second half of 2002
  • Apple and Facebook both reported very strong results
  • Linde said they would increase their dividend by 10% and put in place a new $5bn share buyback
  • ITM Power shares fell as they announced revenue hadn’t kept up with the rise in the market cap. However, their electrolyser technology does mean they will be at the forefront of decarbonisation for years to come

FUNDS UPDATE

An interesting take from CG Asset Management on the meteoric rise in Bitcoin. Whatever we may think about the crypto-currency’s merits (and for what its worth CG are highly dubious) it stacks up incredibly poorly from an ESG perspective.  Not only is its energy usage and therefore carbon footprint enormous, but also its primary use outside of speculation, is for settling illegal transactions including drug trafficking, money laundering and extortion. Institutions moving towards Bitcoin in their asset allocations will need to square this with their increasing focus on how they invest responsibly

SMALL-CAP NEWS

Novacyt, which was one of the first companies to bring clinically approved Covid-19 tests to market, has seen a transformational 2020 performance, with revenues up over twenty times. Who knows how long testing will be needed, but talk about making hay when the sun shines

THIS WEEK IN HISTORY

2001: The NYSE moves to reporting prices on a decimal system. The exchange, founded 200 years previously, had been based on the fractional system used by 17th century Spanish investors who traded gold doubloons, split in half, quarter or even one-eighth pieces so traders could count them on their fingers—while skipping their thumbs

2003: AOL Time Warner announces an annual loss of $98.7 billion, the largest loss ever reported by a company. The loss was a result of write downs from AOL and Time Warner’s ill-fated 2000 merger

LOCKDOWN LOWDOWN

Extraordinary events as US hedge funds face an assault from an army of retail investors, many of whom are stuck at home flush with stimulus cheques from the government. A popular “short” GameStop finished the week 400% higher resulting in US fund Melvin Capital requiring a $2.75bn cash injection

MARKET DATA

% returns

1 Week

1 Month

1 Year

5 Years

UK Equities (% return GBP)

-4.28

-2.87

-13.23

24.65

World Equities (% return GBP)

-3.82

-2.43

7.90

93.97

10 Year US Treasury Yield (%)

1.07

0.94

1.60

1.94

GBP / USD (fx rate)

1.37

1.35

1.30

1.42

 

As at 29th 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 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

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